Requires certain persons and business entities to maintain comprehensive information security program.

A4093

ASSEMBLY, No. 4093

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

SYNOPSIS

���� Requires certain persons and business entities to
maintain comprehensive information security program.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning comprehensive information security programs
and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Breach of security� means the
unauthorized acquisition or unauthorized use of unencrypted data or encrypted
electronic data and the confidential process or key that is capable of
compromising the security, confidentiality, or integrity of personal information
maintained by a person or agency, that creates a substantial risk of identity
theft or fraud against a resident of the State.� A good faith but unauthorized
acquisition of personal information by a person or agency, or employee or agent
thereof, for the lawful purposes of the person or agency, is not a breach of
security unless the personal information is used in an unauthorized manner or
subject to further unauthorized disclosure.

���� �Electronic� means relating to
technology or having electrical, digital, magnetic, wireless, optical,
electromagnetic or similar capabilities.

���� �Encrypted� means the
transformation of data into a form in which meaning cannot be assigned without
the use of a confidential process or key.

���� �Owns or licenses� means receives,
stores, maintains, processes, or otherwise has access to personal information
in connection with the provision of goods or services or in connection with
employment.

���� �Person� means a natural
person, corporation, association, partnership or other legal entity, other than
an agency, department, board, commission, bureau, division or authority of the
State or any political subdivision thereof.

���� �Personal information� means a
New Jersey resident's first name and last name or first initial and last name
in combination with any one or more of the following data elements that relate
to a resident: (1) Social Security number; (2) driver's license number or
state-issued identification card number; or (3) financial account number, or
credit or debit card number, with or without any required security code, access
code, personal identification number or password, that would permit access to a
resident�s financial account; provided, however, that �personal information�
shall not include information that is lawfully obtained from publicly available
information, or from federal, state or local government records lawfully made
available to the general public.

���� �Record� means any material
upon which written, drawn, spoken, visual, or electromagnetic information or
images are recorded or preserved, regardless of physical form or
characteristics.

���� �Service provider� means any
person that receives, stores, maintains, processes, or otherwise is permitted
access to personal information through its provision of services directly to a
person that is subject to this act.

���� 2.��� a.� Every person that
owns or licenses personal information about a resident of the State shall
develop, implement, and maintain a comprehensive information security program
that is written in one or more readily accessible parts and contains
administrative, technical, and physical safeguards that are appropriate to:

���� (1)�� the size, scope and type
of business of the person obligated to safeguard the personal information under
the comprehensive information security program;

���� (2)�� the amount of resources
available to that person;

���� (3)�� the amount of stored
data; and

���� (4)�� the need for security
and confidentiality of both consumer and employee information.

���� The safeguards contained in
the program shall be consistent with the safeguards for protection of personal
information and information of a similar character set forth in any State or
federal regulations by which the person who owns or licenses the information
may be regulated.

���� b.��� Every comprehensive
information security program shall include, but shall not be limited to:

���� (1)�� designating one or more
employees to maintain the comprehensive information security program;

���� (2)�� identifying and
assessing reasonably foreseeable internal and external risks to the security,
confidentiality, and integrity of any electronic, paper or other records
containing personal information, and evaluating and improving, where necessary,
the effectiveness of the current safeguards for limiting the risks, including
but not limited to:

���� (a)�� ongoing employee
training, including ongoing training for temporary and contract employees;

���� (b)�� employee compliance with
policies and procedures; and

���� (c)�� means for detecting and
preventing security system failures;

���� (3)�� developing security
policies for employees relating to the storage, access and transportation of
records containing personal information outside of business premises;

���� (4)�� imposing disciplinary
measures for violations of the comprehensive information security program
rules;

���� (5)�� preventing terminated
employees from accessing records containing personal information;

���� (6)�� oversight of service
providers by:

���� (a)�� taking reasonable steps
to select and retain third-party service providers that are capable of
maintaining appropriate security measures to protect personal information consistent
with this act and any applicable federal regulations; and

���� (b)�� requiring third-party
service providers by contract to implement and maintain appropriate security measures
for personal information;

���� (7)�� reasonable restrictions
upon physical access to records containing personal information, and storage of
records and data in locked facilities, storage areas or containers;

���� (8)�� regular monitoring to
ensure that the comprehensive information security program is operating in a
manner reasonably calculated to prevent unauthorized access to or unauthorized
use of personal information, and upgrading information safeguards as necessary
to limit risks;

���� (9)�� reviewing the scope of
the security measures at least annually or whenever there is a material change
in business practices that may reasonably implicate the security or integrity
of records containing personal information; and

���� (10)� documenting responsive
actions taken in connection with any incident involving a breach of security,
and mandatory post-incident review of events and actions taken, if any, to make
changes in business practices relating to protection of personal information.

���� 3.��� Every person that owns
or licenses personal information about a resident of this State and electronically
stores or transmits the information shall include in its comprehensive
information security program the establishment and maintenance of a security
system covering its computers, including any wireless system, that, at a
minimum, and to the extent technically feasible, shall have the following
elements:

���� a.���� secure user
authentication protocols including:

���� (1)�� control of user IDs and
other identifiers;

���� (2)�� a reasonably secure
method of assigning and selecting passwords, or use of unique identifier
technologies, such as biometrics or token devices;

���� (3)�� control of data security
passwords to ensure that passwords are kept in a location or format that does
not compromise the security of the data they protect;

���� (4)�� restricting access to
active users and active user accounts only; and

���� (5)�� blocking access to user
identification after multiple unsuccessful attempts to gain access or the
limitation placed on access for the particular system;

���� b.��� secure access control
measures that:

���� (1)�� restrict access to
records and files containing personal information to those who need that
information to perform their job duties; and

���� (2)�� assign unique
identifications and passwords, which are not vendor supplied default passwords,
to each person with computer access, that are reasonably designed to maintain
the integrity of the security of the access controls;

���� c.���� encryption of all
transmitted records and files containing personal information that will travel
across public networks, and encryption of all data containing personal
information to be transmitted wirelessly;

���� d.��� reasonable monitoring of
systems for unauthorized use of or access to personal information;

���� e.���� encryption of all
personal information stored on laptops or other portable devices;

���� f.���� with respect to files
containing personal information on a system that is connected to the Internet,
reasonably up-to-date firewall protection and operating system security
patches, which are reasonably designed to maintain the integrity of the
personal information;

���� g.��� reasonably up-to-date
versions of system security agent software which shall include malware
protection and reasonably up-to-date patches and virus definitions, or a
version of that software that can still be supported with up-to-date patches
and virus definitions, and is set to receive the most current security updates
on a regular basis; and

���� h.��� education and training
of employees on the proper use of the computer security system and the
importance of personal information security.

���� 4.��� It shall be an unlawful
practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to willfully,
knowingly or recklessly violate the provisions of this act.

���� 5.��� This act shall take
effect on the 120th day next following enactment.

STATEMENT

���� This bill requires any person,
corporation, association, partnership or other legal entity that owns or
licenses personal information about a resident of this State to develop,
implement, and maintain a comprehensive information security program that is
written in one or more readily accessible parts and contains administrative,
technical, and physical safeguards that are necessary to protect the personal
information.

���� The bill provides that it
would be an unlawful practice under the consumer fraud act, P.L.1960, c.39
(C.56:8-1 et seq.), to willfully, knowingly or recklessly violate the
provisions of the bill. �An unlawful practice is punishable by a monetary
penalty of not more than $10,000 for a first offense and not more than $20,000
for any subsequent offense. �Additionally, a violation can result in cease

and desist orders issued by the
Attorney General, the assessment of punitive damages, and the awarding of
treble damages and costs to those injured as a result of the violation.��