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Beshear signs data protection bill into law

by Joe Arnold

WHAS11.com

Posted on April 10, 2014 at 3:59 PM

Updated Thursday, Apr 10 at 10:45 PM

LOUISVILLE, Ky. (WHAS11) -- A bill aimed at protecting the personal data of both Kentucky consumers and students  was signed into law Thursday by Governor Steve Beshear (D-Ky).

Sponsored by Rep. Steve Riggs (D-Louisville) with an amendment sponsored by Sen. Mike Wilson (R-Bowling Green), the bipartisan legislation (House Bill 232) requires businesses to notify consumers if a data breach reveals personally identifiable information. 

Riggs is an insurance broker.  He says insurance companies were charging Kentuckians more for cyber-security policies in the absence of any state laws requiring such notification after incidents such as the Target and Neiman Marcus data breaches.

The General Assembly also agreed to additional language from Republican Senate Bill 89, which protects student information from use by software vendors.

Websites such as Facebook and Google generate revenue by selling user information to advertisers. The legislation prevents those companies from harvesting students' private information, such as test results or practice assignments, for the purpose of marketing products to school systems.

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