This bill proposes the establishment of a new chapter in the North Dakota Century Code dedicated to financial institution data security programs, while also amending existing regulations concerning the Department of Financial Institutions and financial corporations. Key amendments include provisions that empower the commissioner or board to issue permanent suspension orders against current or former officers, directors, or employees of financial institutions convicted of dishonesty or breach of trust. The bill also modifies the process for cease and desist orders, allowing for emergency orders to be issued without a prior hearing when immediate action is necessary to protect the institution's assets or the interests of depositors and shareholders.

Additionally, the bill introduces several definitions and requirements aimed at enhancing information security protocols for financial corporations. It mandates the development and maintenance of a comprehensive information security program that includes administrative, technical, and physical safeguards tailored to the corporation's size and the sensitivity of customer information. Specific elements required in the program include the designation of a qualified individual to oversee it, conducting risk assessments, and implementing safeguards. The bill also emphasizes the importance of monitoring authorized user activities, conducting regular penetration testing, and having a written incident response plan. Overall, these amendments aim to strengthen the regulatory framework governing financial institutions and enhance the protection of customer information from unauthorized access and potential breaches.

Statutes affected:
INTRODUCED: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
Adopted by the House Industry, Business and Labor Committee: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
FIRST ENGROSSMENT: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
PREFILED: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18