Bill Text: MS HB1380 | 2025 | Regular Session | Introduced
Bill Title: Cybersecurity; governmental and certain commercial entities substantially complying with standards not liable for incidents relating to.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-20 - Referred To Judiciary A;Technology [HB1380 Detail]
Download: Mississippi-2025-HB1380-Introduced.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Judiciary A; Technology
By: Representative Hood
House Bill 1380
AN ACT TO PROVIDE THAT STATE AND LOCAL GOVERNMENTAL ENTITIES AND CERTAIN COVERED COMMERCIAL ENTITIES ARE NOT LIABLE IN CONNECTION WITH A CYBERSECURITY INCIDENT IF THE ENTITY INVOLVED HAS ADOPTED CERTAIN CYBERSECURITY STANDARDS; TO DEFINE CERTAIN TERMS; TO REQUIRE CYBERSECURITY STANDARDS TO ALIGN WITH NATIONALLY-RECOGNIZED STANDARDS AND THE REQUIREMENTS OF SPECIFIED FEDERAL LAWS; TO CREATE A REBUTTABLE PRESUMPTION AGAINST LIABILITY IN CONNECTION WITH A CYBERSECURITY INCIDENT FOR COMMERCIAL ENTITIES THAT HAVE ADOPTED A CYBERSECURITY PROGRAM THAT SUBSTANTIALLY ALIGNS WITH CERTAIN SPECIFIED CYBERSECURITY STANDARDS IN COMPLIANCE WITH THIS ACT; TO BRING FORWARD SECTION 25-53-201, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section, the following words and phrases have the meanings ascribed in this subsection unless the context clearly requires otherwise:
(a) "Covered entity" means a sole proprietorship,
partnership, company, corporation, trust, estate, cooperative, association or financial institution organized, chartered or holding a license authorizing operation under the laws of this state, another state, another country or other commercial entity.
(b) "Third-party agent" means an entity that has
been contracted to maintain, store or process personal information on behalf of a covered entity.
(2) (a) The state, a county, municipality, county hospital or other political subdivision of the state is not liable in connection with a cybersecurity incident if the entity adopts cybersecurity standards that:
(i) Safeguard its data, information technology and information technology resources to ensure availability, confidentiality and integrity; and
(ii) Are consistent with generally accepted best practices for cybersecurity, including the National Institute of Standards and Technology Cybersecurity Framework.
(b) This statement of immunity may not be construed to waive any immunity granted to the state, a county, municipality or other political subdivision of the state under Title 11, Chapter 46, Mississippi Code of 1972.
(3) There is a rebuttable presumption that a covered entity or third-party agent that acquires, maintains, stores or uses personal information is not liable in connection with a cybersecurity incident if the covered entity or third-party agent, in good faith, substantially complies with reasonable measures to protect and secure data in electronic form containing personal information and has:
(a) Adopted a cybersecurity program that substantially aligns with the current version of any standards, guidelines or regulations that implement any of the following:
(i) The National Institute of Standards and Technology (NIST) Framework for Improving Critical Infrastructure Cybersecurity and the implementing regulations or publications; (ii) NIST special publication 800-171 or its most current update, revision or replacement;
(iii) NIST special publications 800-53 and 800-53A or their most current update, revision or replacement; (iv) The Federal Risk and Authorization Management Program security assessment framework;
(v) The Center for Internet Security (CIS) Critical Security Controls; or
(vi) The International Organization for Standardization/International Electrotechnical Commission 27000- series (ISO/IEC 27000) family of standards; or
(b) If regulated by the state or federal government, or both, or if otherwise subject to the requirements of any of the following laws and regulations, substantially aligned its cybersecurity program to the current version of the following, as applicable:
(i) The Health Insurance Portability and Accountability Act of 1996 security requirements in 45 CFR part 160 and part 164 subparts A and C;
(ii) Title V of the Gramm-Leach-Bliley Act of 1999, Public Law 57 No. 106-102, as amended, and the implementing regulations;
(iii) The Federal Information Security Modernization Act of 2014, Public Law No. 113-283; or
(iv) The Health Information Technology for Economic and Clinical Health Act requirements in 45 CFR parts 160 and 164.
(4) A covered entity's or third-party agent's alignment with a framework or standard under paragraph (a) or (b) of subsection (3) of this section may be demonstrated by providing documentation or other evidence of an assessment, conducted internally or by a third-party, reflecting that the covered entity's or third-party agent's cybersecurity program substantially is aligned with the relevant framework or standard or with the applicable state or federal law or regulation.
(5) The scale and scope of substantial alignment with a standard, law or regulation under paragraph (a) or (b) of subsection (3) of this section by a covered entity or third-party agent, as applicable, is appropriate if it is based on all of the following factors:
(a) The size and complexity of the covered entity or third-party agent;
(b) The nature and scope of the activities of the covered entity or third-party agent; and
(c) The sensitivity of the information to be protected.
(6) A commercial entity or third-party agent covered by subsection (3) of this section which substantially complies with a combination of industry-recognized cybersecurity frameworks or standards to gain the presumption against liability under subsection (3) must adopt, upon the revision of two (2) or more of the frameworks or standards with which the entity complies, the revised frameworks or standards within one (1) year after the latest publication date or latest compliance or effective date stated in the revisions and, if applicable, comply with the Payment Card Industry Data Security Standard (PCI DSS).
(7) In an action in connection with a cybersecurity incident, if the defendant is an entity covered by subsection (2) of this section, the plaintiff has the initial burden of demonstrating by clear and convincing evidence that the entity was not in substantial compliance with this section.
(8) In an action in connection with a cybersecurity incident, if the defendant is an entity under subsection (3) of this section, the defendant has the burden of proof to establish a prima facie case of compliance with industry-recognized cybersecurity frameworks or standards to gain the presumption against liability created under this section. If a defendant meets its initial burden, the burden of proof then shifts to the plaintiff to overcome this presumption against liability by proving by clear and convincing evidence that the defendant failed to substantially comply with applicable industry-recognized cybersecurity frameworks or standards.
(9) This act does not establish a private cause of action, including a class action, if a covered entity or third-party agent fails to comply with this act.
(10) Failure of a county, municipality, county hospital, other political subdivision of the state or covered entity to substantially implement a cybersecurity program that is in compliance with this section is not evidence of negligence and does not constitute negligence per se.
(11) A choice of law provision in an agreement that designates this state as the governing law applies to this act, if applicable, to the fullest extent possible in a civil action brought against a person regardless of whether the civil action is brought in this state or another state.
(12) This section is applicable to any suit filed on or after January 1, 2026.
SECTION 2. Section 25-53-201, Mississippi Code of 1972, is brought forward as follows:
25-53-201. (1) There is hereby established the Enterprise Security Program which shall provide for the coordinated oversight of the cybersecurity efforts across all state agencies, including cybersecurity systems, services and the development of policies, standards and guidelines.
(2) The Mississippi Department of Information Technology Services (MDITS), in conjunction with all state agencies, shall provide centralized management and coordination of state policies for the security of data and information technology resources, which such information shall be compiled by MDITS and distributed to each participating state agency. MDITS shall:
(a) Serve as sole authority, within the constraints of this statute, for defining the specific enterprise cybersecurity systems and services to which this statute is applicable;
(b) Acquire and operate enterprise technology solutions to provide services to state agencies when it is determined that such operation will improve the cybersecurity posture in the function of any agency, institution or function of state government as a whole;
(c) Provide oversight of enterprise security policies for state data and information technology (IT) resources including, the following:
(i) Establishing and maintaining the security standards and policies for all state data and IT resources state agencies shall implement to the extent that they apply; and
(ii) Including the defined enterprise security requirements as minimum requirements in the specifications for solicitation of state contracts for procuring data and information technology systems and services;
(d) Adhere to all policies, standards and guidelines in the management of technology infrastructure supporting the state data centers, telecommunications networks and backup facilities;
(e) Coordinate and promote efficiency and security with all applicable laws and regulations in the acquisition, operation and maintenance of state data, cybersecurity systems and services used by agencies of the state;
(f) Manage, plan and coordinate all enterprise cybersecurity systems under the jurisdiction of the state;
(g) Develop, in conjunction with agencies of the state, coordinated enterprise cybersecurity systems and services for all state agencies;
(h) Provide ongoing analysis of enterprise cybersecurity systems and services costs, facilities and systems within state government;
(i) Develop policies, procedures and long-range plans for the use of enterprise cybersecurity systems and services;
(j) Form an advisory council of information security officers from each state agency to plan, develop and implement cybersecurity initiatives;
(k) Coordinate the activities of the advisory council to provide education and awareness, identify cybersecurity-related issues, set future direction for cybersecurity plans and policy, and provide a forum for interagency communications regarding cybersecurity;
(l) Charge respective user agencies on a reimbursement basis for their proportionate cost of the installation, maintenance and operation of the cybersecurity systems and services; and
(m) Require cooperative utilization of cybersecurity systems and services by aggregating users.
(3) Each state agency's executive director or agency head shall:
(a) Be solely responsible for the security of all data and IT resources under its purview, irrespective of the location of the data or resources. Locations include data residing:
(i) At agency sites;
(ii) On agency real property and tangible and intangible assets;
(iii) On infrastructure in the State Data Centers;
(iv) At a third-party location;
(v) In transit between locations;
(b) Ensure that an agency-wide security program is in place;
(c) Designate an information security officer to administer the agency's security program;
(d) Ensure the agency adheres to the requirements established by the Enterprise Security Program, to the extent that they apply;
(e) Participate in all Enterprise Security Program initiatives and services in lieu of deploying duplicate services specific to the agency;
(f) Develop, implement and maintain written agency policies and procedures to ensure the security of data and IT resources. The agency policies and procedures are confidential information and exempt from public inspection, except that the information must be available to the Office of the State Auditor in performing auditing duties;
(g) Implement policies and standards to ensure that all of the agency's data and IT resources are maintained in compliance with state and federal laws and regulations, to the extent that they apply;
(h) Implement appropriate cost-effective safeguards to reduce, eliminate or recover from identified threats to data and IT resources;
(i) Ensure that internal assessments of the security program are conducted. The results of the internal assessments are confidential and exempt from public inspection, except that the information must be available to the Office of the State Auditor in performing auditing duties;
(j) Include all appropriate cybersecurity requirements in the specifications for the agency's solicitation of state contracts for procuring data and information technology systems and services;
(k) Include a general description of the security program and future plans for ensuring security of data in the agency long-range information technology plan;
(l) Participate in annual information security training designed specifically for the executive director or agency head to ensure that such individual has an understanding of:
(i) The information and information systems that support the operations and assets of the agency;
(ii) The potential impact of common types of cyber-attacks and data breaches on the agency's operations and assets;
(iii) How cyber-attacks and data breaches on the agency's operations and assets could impact the operations and assets of other state agencies on the Enterprise State Network;
(iv) How cyber-attacks and data breaches occur;
(v) Steps to be undertaken by the executive director or agency head and agency employees to protect their information and information systems; and
(vi) The annual reporting requirements required of the executive director or agency head.
(4) The Mississippi Department of Information Technology Services shall evaluate the Enterprise Security Program. Such evaluation shall include the following factors:
(a) Whether the Enterprise Security Program incorporates nationwide best practices;
(b) Whether opportunities exist to centralize and coordinate oversight of cybersecurity efforts across all state agencies;
(c) A review of the minimum enterprise security requirements that must be incorporated in solicitations for state contracts for procuring data and information technology systems and services; and
(d) Whether opportunities exist to expand the Enterprise Security Program, including providing oversight of cybersecurity efforts of those governing authorities as defined in Section 25-53-3(f).
In performing such evaluation, the Mississippi Department of Information Technology Services may retain experts. This evaluation shall be completed by November 1, 2023. All records in connection with this evaluation shall be exempt from the Mississippi Public Records Act of 1983, pursuant to Section 25-61-11.2(f) and (k).
(5) For the purpose of this subsection, the following words shall have the meanings ascribed herein, unless the context clearly indicates otherwise:
(a) "Cyberattack" shall mean any attempt to gain illegal access, including any data breach, to a computer, computer system or computer network for purposes of causing damage, disruption or harm.
(b) "Ransomware" shall mean a computer contaminant or lock placed or introduced without authorization into a computer, computer system or computer network that restricts access by an authorized person to the computer, computer system, computer network or any data therein under circumstances in which the person responsible for the placement or introduction of the ransomware demands payment of money or other consideration to remove the computer contaminant, restore access to the computer, computer system, computer network or data, or otherwise remediate the impact of the computer contaminant or lock.
(c) From and after July 1, 2023, all state agencies shall notify the Mississippi Department of Information Technology Services of any cyberattack or demand for payment as a result of ransomware no later than the close of the next business day following the discovery of such cyberattack or demand. The Mississippi Department of Information Technology Services shall develop a reporting format to be utilized by state agencies to provide such notification. The Mississippi Department of Information Technology Services shall periodically analyze all such reports and attempt to identify any patterns or weaknesses in the state's cybersecurity efforts. Such reports shall be exempt from the Mississippi Public Records Act of 1983, pursuant to Section 25-61-11.2(j).
SECTION 3. This act shall take effect and be in force from and after January 1, 2026.
