What is Colorado Cybersecurity Regulation (HB 18-1128)?
On January 19, 2018, the General Assembly of the State of Colorado introduced House Bill 18-1128, Concerning Strengthening Protections for Consumer Data Privacy. The regulation was signed into law on May 29, 2018 and goes into effect on September 1, 2018.
The new regulation contains four primary sections:
- Disposal of Personal Identifying Information
- Protection of Personal Identifying Information
- Notification of Security Breach
- Security Breaches and Personal Information
The first three sections focus on how a "covered entity" can protect personal identifying information (PII). A "covered entity" is defined as a "person" (e.g., an individual, corporation, business trust, etc.) who maintains, owns, or licenses PII in the course of their business, vocation, or occupation.
Section Four shifts some wording around, but repeats the first three sections, replacing the term "covered entities" with "governmental entities."
Does Colorado HB 18-1128 apply to Banks and Credit Unions?
Yes. While the regulation defines PII a couple different ways, both definitions include things a financial institution would "maintain, own, or license" in the course of normal business (e.g., social security numbers, credit cards, debit cards, account numbers, etc.). If you are a financial institution in the State of Colorado, Colorado HB 18-1128 applies to you.
Are Financial Institutions in Compliance with Colorado HB 18-1128?
Let's break this down by section.
- Section One: Yes.
Financial institutions are already subject to GLBA, so the organization should already have a policy in place that defines the secure disposal of paper and electronic documents containing PII.
- Section Two: Yes.
Again, since financial institutions are already subject to GLBA, the organization should already have reasonable security procedures and practices in place to protect PII from unauthorized access, use, modification, disclosure, or destruction.
- Section Three: Partially.
Per GLBA, each financial institution should have an incident response policy, program, and/or plan that outlines what the organization should do in the event of a security breach. However, Section Three additionally includes new requirements, specific to the State of Colorado, about classification and notification of a security breach.
For example, Section 3(2)(e) states that if the security breach affected more than 500 Colorado residents, the covered entity must notify the Colorado Attorney General as soon as possible, but no later than 30 days after determining a security breach occurred. This requirement is new and it is specific to Colorado organizations, so it does not likely exist in your current incident response policy, program, and/or plan.
How to Prepare for September 1st
To prepare for the September 1st effective date, it would be beneficial for each financial institution to compare their existing incident response policy with the new requirements in Section Three and make updates, as needed.
We have developed a downloadable PDF called, "Understanding & Preparing for the Colorado Cybersecurity Regulation (HB 18-1128)." This document provides a side-by-side comparison of the regulatory language with our opinion to help you simplify and interpret the regulatory wording. This document will help you understand the regulation, as you prepare your institution for the September 1st deadline.
For Tandem Customers: The resource also provides information about how the requirements of HB 18-1128 are already addressed in Tandem, including recommendations about how you can incorporate the Colorado-specific requirements into your existing information security program.
What is Tandem?
Tandem is an online information security and compliance software designed to increase security and help financial institutions stay in compliance with GLBA and FFIEC guidance. Tandem is now being utilized by financial institutions across the country and helps by saving both time and money without sacrificing information security, cybersecurity, or compliance.