MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Judiciary A

By: Representatives Hood, Hale

House Bill 1220

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; TO BRING FORWARD SECTIONS 83-5-801 THROUGH 83-5-825, MISSISSIPPI CODE OF 1972, WHICH ARE THE INSURANCE DATA SECURITY LAWS, FOR THE PURPOSE OF POSSIBLE AMENDMENTS; 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 as defined 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

(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, covered entity or third-party agent 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.

(13) Nothing in this section shall be construed to modify an insurance licensee's obligations under the Insurance Data Security Law, Section 83-5-801 et seq.

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;

(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(e).

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. Section 83-5-801, Mississippi Code of 1972, is brought forward as follows:

83-5-801. This article shall be known and may be cited as the "Insurance Data Security Law."

SECTION 4. Section 83-5-803, Mississippi Code of 1972, is brought forward as follows:

83-5-803. (1) Notwithstanding any other provision of law, this article establishes the exclusive state standards applicable to licensees for data security, the investigation of a cybersecurity event as defined in Section 83-5-805, and notification to the Commissioner of Insurance.

(2) This article may not be construed to create or imply a private cause of action for violation of its provisions nor may it be construed to curtail a private cause of action which would otherwise exist in the absence of this article.

SECTION 5. Section 83-5-805, Mississippi Code of 1972, is brought forward as follows:

83-5-805. As used in this article, the following terms shall have the following meanings:

(a) "Authorized individual" means an individual known to and screened by the licensee and determined to be necessary and appropriate to have access to the nonpublic information held by the licensee and its information systems.

(b) "Commissioner" means the Commissioner of Insurance.

(c) "Consumer" means an individual, including, but not limited to, applicants, policyholders, insureds, beneficiaries, claimants and certificate holders, who is a resident of this state and whose nonpublic information is in a licensee's possession, custody or control.

(d) "Cybersecurity event" means an event resulting in unauthorized access to, disruption or misuse of, an information system or nonpublic information stored on such information system. The term "cybersecurity event" does not include the unauthorized acquisition of encrypted nonpublic information if the encryption, process or key is not also acquired, released or used without authorization. "Cybersecurity event" does not include an event with regard to which the licensee has determined that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed.

(e) "Department" means the Mississippi Insurance Department.

(f) "Encrypted" means the transformation of data into a form which results in a low probability of assigning meaning without the use of a protective process or key.

(g) "Information security program" means the administrative, technical and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of or otherwise handle nonpublic information.

(h) "Information system" means a discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination or disposition of electronic nonpublic information, as well as any specialized system such as industrial/process controls systems, telephone switching and private branch exchange systems, and environmental control systems.

(i) "Licensee" means any person licensed, authorized to operate, or registered, or required to be licensed, authorized or registered pursuant to the insurance laws of this state, but shall not include a purchasing group or a risk-retention group chartered and licensed in a state other than this state or a person who is acting as an assuming insurer that is domiciled in another state or jurisdiction.

(j) "Multi-factor authentication" means authentication through verification of at least two (2) of the following types of authentication factors:

(i) Knowledge factors, such as a password;

(ii) Possession factors, such as a token or text message on a mobile phone; or

(iii) Inherence factors, such as a biometric characteristic.

(k) "Nonpublic information" means electronic information that is not publicly available information and is:

(i) Any information concerning a consumer which because of name, number, personal mark or other identifier can be used to identify such consumer, in combination with any one or more of the following data elements:

1. Social security number;

2. Driver's license number or nondriver identification card number;

3. Financial account number, credit or debit card number;

4. Any security code, access code or password that would permit access to a consumer's financial account; or

5. Biometric records;

(ii) Any information or data, except age or gender, in any form or medium created by or derived from a health care provider or a consumer, that can be used to identify a particular consumer, and that relates to:

1. The past, present or future physical, mental or behavioral health or condition of any consumer or a member of the consumer's family;

2. The provision of health care to any consumer; or

3. Payment for the provision of health care to any consumer.

(l) "Person" means any individual or any nongovernmental entity, including, but not limited to, any nongovernmental partnership, corporation, branch, agency or association.

(m) "Publicly available information" means any information that a licensee has a reasonable basis to believe is lawfully made available to the general public from: federal, state or local government records; widely distributed media; or disclosures to the general public that are required to be made by federal, state or local law. For the purposes of this definition, a licensee has a reasonable basis to believe that information is lawfully made available to the general public if the licensee has taken steps to determine:

(i) That the information is of the type that is available to the general public; and

(ii) Whether a consumer can direct that the information not be made available to the general public and, if so, that such consumer has not done so.

(n) "Risk assessment" means the risk assessment that each licensee is required to conduct under Section 83-5-807(3).

(o) "State" means the State of Mississippi.

(p) "Third-party service provider" means a person, not otherwise defined as a licensee, who contracts with a licensee to maintain, process, store or otherwise is permitted access to nonpublic information through its provision of services to the licensee.

SECTION 6. Section 83-5-807, Mississippi Code of 1972, is brought forward as follows:

83-5-807. (1) Commensurate with the size and complexity of the licensee, the nature and scope of the licensee's activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by the licensee or in the licensee's possession, custody or control, each licensee shall develop, implement, and maintain a comprehensive written information security program based on the licensee's risk assessment and that contains administrative, technical and physical safeguards for the protection of nonpublic information and the licensee's information system.

(2) A licensee's information security program shall be designed to:

(a) Protect the security and confidentiality of nonpublic information and the security of the information system;

(b) Protect against any threats or hazards to the security or integrity of nonpublic information and the information system;

(c) Protect against unauthorized access to or use of nonpublic information, and minimize the likelihood of harm to any consumer; and

(d) Define and periodically reevaluate a schedule for retention of nonpublic information and a mechanism for its destruction when no longer needed.

(3) The licensee shall:

(a) Designate one or more employees, an affiliate, or an outside vendor designated to act on behalf of the licensee who is responsible for the information security program;

(b) Identify reasonably foreseeable internal or external threats that could result in unauthorized access, transmission, disclosure, misuse, alteration or destruction of nonpublic information, including the security of information systems and nonpublic information that are accessible to, or held by, third-party service providers;

(c) Assess the likelihood and potential damage of these threats, taking into consideration the sensitivity of the nonpublic information;

(d) Assess the sufficiency of policies, procedures, information systems and other safeguards in place to manage these threats, including consideration of threats in each relevant area of the licensee's operations, including:

(i) Employee training and management;

(ii) Information systems, including network and software design, as well as information classification, governance, processing, storage, transmission and disposal; and

(iii) Detecting, preventing and responding to attacks, intrusions or other systems failures; and

(e) Implement information safeguards to manage the threats identified in its ongoing assessment, and no less than annually, assess the effectiveness of the safeguards' key controls, systems and procedures.

(4) Based on its risk assessment, the licensee shall:

(a) Design its information security program to mitigate the identified risks, commensurate with the size and complexity of the licensee, the nature and scope of the licensee's activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by the licensee or in the licensee's possession, custody or control.

(b) Determine which security measures listed below are appropriate and implement such security measures.

(i) Place access controls on information systems, including controls to authenticate and permit access only to authorized individuals to protect against the unauthorized acquisition of nonpublic information;

(ii) Identify and manage the data, personnel, devices, systems and facilities that enable the organization to achieve business purposes in accordance with their relative importance to business objectives and the organization's risk strategy;

(iii) Restrict physical access to nonpublic information, only to authorized individuals;

(iv) Protect by encryption or other appropriate means, all nonpublic information while being transmitted over an external network and all nonpublic information stored on a laptop computer or other portable computing or storage device or media;

(v) Adopt secure development practices for in-house developed applications utilized by the licensee;

(vi) Modify the information system in accordance with the licensee's information security program;

(vii) Utilize effective controls, which may include multi-factor authentication procedures for employees accessing nonpublic information;

(viii) Regularly test and monitor systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems;

(ix) Include audit trails within the information security program designed to detect and respond to cybersecurity events and designed to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee;

(x) Implement measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards, such as fire and water damage or other catastrophes or technological failures; and

(xi) Develop, implement, and maintain procedures for the secure disposal of nonpublic information in any format.

(d) Stay informed regarding emerging threats or vulnerabilities and utilize reasonable security measures when sharing information relative to the character of the sharing and the type of information shared.

(e) Provide its personnel with cybersecurity awareness training that is updated as necessary to reflect risks identified by the licensee in the risk assessment.

(5) If the licensee has a board of directors, the board or an appropriate committee of the board shall, at a minimum:

(a) Require the licensee's executive management or its delegates to develop, implement and maintain the licensee's information security program;

(b) Require the licensee's executive management or its delegates to report in writing at least annually, the following information:

(i) The overall status of the information security program and the licensee's compliance with this article; and

(ii) Material matters related to the information security program, addressing issues such as risk assessment, risk management and control decisions, third-party service provider arrangements, results of testing, cybersecurity events or violations and management's responses thereto, and recommendations for changes in the information security program;

(c) If executive management delegates any of its responsibilities under this section, it shall oversee the development, implementation and maintenance of the licensee's information security program prepared by the delegate(s) and shall receive a report from the delegate(s) complying with the requirements of the report to the board of directors above.

(6) (a) A licensee shall exercise due diligence in selecting its third-party service provider; and

(b) A licensee shall require a third-party service provider to implement appropriate administrative, technical and physical measures to protect and secure the information systems and nonpublic information that are accessible to, or held by, the third-party service provider.

(7) The licensee shall monitor, evaluate and adjust, as appropriate, the information security program consistent with any relevant changes in technology, the sensitivity of its nonpublic information, internal or external threats to information, and the licensee's own changing business arrangements, such as mergers and acquisitions, alliances and joint ventures, outsourcing arrangements and changes to information systems.

(8) (a) As part of its information security program, each licensee shall establish a written incident response plan designed to promptly respond to, and recover from, any cybersecurity event that compromises the confidentiality, integrity or availability of nonpublic information in its possession, the licensee's information systems, or the continuing functionality of any aspect of the licensee's business or operations.

(b) Such incident response plan shall address the following areas:

(i) The internal process for responding to a cybersecurity event;

(ii) The goals of the incident response plan;

(iii) The definition of clear roles, responsibilities and levels of decision-making authority;

(iv) External and internal communications and information sharing;

(v) Identification of requirements for the remediation of any identified weaknesses in information systems and associated controls;

(vi) Documentation and reporting regarding cybersecurity events and related incident response activities; and

(vii) The evaluation and revision as necessary of the incident response plan following a cybersecurity event.

(9) Annually, each insurer domiciled in this state shall submit to the commissioner a written statement by February 15, certifying that the insurer is in compliance with the requirements set forth in this section. Each insurer shall maintain for examination by the department all records, schedules and data supporting this certificate for a period of five (5) years. To the extent an insurer has identified areas, systems or processes that require material improvement, updating or redesign, the insurer shall document the identification and the remedial efforts planned and underway to address such areas, systems or processes. Such documentation must be available for inspection by the commissioner.

SECTION 7. Section 83-5-809, Mississippi Code of 1972, is brought forward as follows:

83-5-809. (1) If the licensee learns that a cybersecurity event has or may have occurred, then the licensee, or an outside vendor and/or service provider designated to act on behalf of the licensee, shall conduct a prompt investigation.

(2) During the investigation, the licensee, or an outside vendor and/or service provider designated to act on behalf of the licensee, shall, at a minimum, determine as much of the following information as possible:

(a) Determine whether a cybersecurity event has occurred;

(b) Assess the nature and scope of the cybersecurity event;

(d) Perform or oversee reasonable measures to restore the security of the information systems compromised in the cybersecurity event in order to prevent further unauthorized acquisition, release or use of nonpublic information in the licensee's possession, custody or control.

(3) If the licensee learns that a cybersecurity event has or may have occurred in a system maintained by a third-party service provider, the licensee will complete the steps listed in subsection (2) of this section or confirm and document that the third-party service provider has completed those steps.

(4) The licensee shall maintain records concerning all cybersecurity events for a period of at least five (5) years from the date of the cybersecurity event and shall produce those records upon demand of the commissioner.

SECTION 8. Section 83-5-811, Mississippi Code of 1972, is brought forward as follows:

83-5-811. (1) Each licensee shall notify the commissioner as promptly as possible but in no event later than three (3) business days from a determination that a cybersecurity event involving nonpublic information that is in the possession of a licensee has occurred when either of the following criteria has been met:

(a) This state is the licensee's state of domicile, in the case of an insurer, or this state is the licensee's home state, in the case of a producer, as those terms are defined in Section 83-17-53, and the cybersecurity event has a reasonable likelihood of materially harming a consumer residing in this state or reasonable likelihood of materially harming any material part of the normal operation(s) of the licensee; or

(b) The licensee reasonably believes that the nonpublic information involved is of two hundred fifty (250) or more consumers residing in this state and that is either of the following:

(i) A cybersecurity event impacting the licensee of which notice is required to be provided to any government body, self-regulatory agency or any other supervisory body pursuant to any state or federal law; or

(ii) A cybersecurity event that has a reasonable likelihood of materially harming:

1. Any consumer residing in this state; or

2. Any material part of the normal operation(s) of the licensee.

(2) The licensee shall provide as much of the following information as possible. The licensee shall provide the information in electronic form as directed by the commissioner. The licensee shall have a continuing obligation to update and supplement initial and subsequent notifications to the commissioner regarding material changes to previously provided information relating to the cybersecurity event.

(a) Date of the cybersecurity event;

(b) Description of how the information was exposed, lost, stolen or breached, including the specific roles and responsibilities of third-party service providers, if any;

(d) Whether any lost, stolen, or breached information has been recovered and if so, how this was done;

(e) The identity of the source of the cybersecurity event;

(f) Whether the licensee has filed a police report or has notified any regulatory, government or law enforcement agencies and, if so, when such notification was provided;

(g) Description of the specific types of information acquired without authorization. Specific types of information means particular data elements including, for example, types of medical information, types of financial information or types of information allowing identification of the consumer;

(h) The period during which the information system was compromised by the cybersecurity event;

(i) The number of total consumers in this state affected by the cybersecurity event. The licensee shall provide the best estimate in the initial report to the commissioner and update this estimate with each subsequent report to the commissioner pursuant to this section;

(j) The results of any internal review identifying a lapse in either automated controls or internal procedures, or confirming that all automated controls or internal procedures were followed;

(k) Description of efforts being undertaken to remediate the situation which permitted the cybersecurity event to occur;

(l) A copy of the licensee's privacy policy and a statement outlining the steps the licensee will take to investigate and notify consumers affected by the cybersecurity event; and

(m) Name of a contact person who is both familiar with the cybersecurity event and authorized to act for the licensee.

(3) Licensee shall comply with Section 75-24-29, as applicable, and provide a copy of the notice sent to consumers under that statute to the commissioner, when a licensee is required to notify the commissioner under subsection (1) of this section.

(4) (a) In the case of a cybersecurity event in a system maintained by a third-party service provider, of which the licensee has become aware, the licensee shall treat such event as it would under subsection (1) of this section unless the third-party service provider provides the notice required under subsection (1) of this section to the commissioner.

(b) The computation of licensee's deadlines shall begin on the day after the third-party service provider notifies the licensee of the cybersecurity event or the licensee otherwise has actual knowledge of the cybersecurity event, whichever is sooner.

(c) Nothing in this article shall prevent or abrogate an agreement between a licensee and another licensee, a third-party service provider or any other party to fulfill any of the investigation requirements imposed under Section 83-5-809 of this article or notice requirements imposed under this section.

(5) (a) (i) In the case of a cybersecurity event involving nonpublic information that is used by the licensee who is acting as an assuming insurer or in the possession, custody or control of a licensee who is acting as an assuming insurer and that does not have a direct contractual relationship with the affected consumers, the assuming insurer shall notify its affected ceding insurers and the commissioner of its state of domicile within three (3) business days of making the determination that a cybersecurity event has occurred.

(ii) The ceding insurers that have a direct contractual relationship with affected consumers shall fulfill the consumer notification requirements imposed under Section 75-24-29 and any other notification requirements relating to a cybersecurity event imposed under this section.

(b) (i) In the case of a cybersecurity event involving nonpublic information that is in the possession, custody or control of a third-party service provider of a licensee who is an assuming insurer, the assuming insurer shall notify its affected ceding insurers and the commissioner of its state of domicile within three (3) business days of receiving notice from its third-party service provider that a cybersecurity event has occurred.

(c) Any licensee acting as assuming insurer shall have no other notice obligations relating to a cybersecurity event or other data breach under this section or any other law of this state.

(6) In the case of a cybersecurity event involving nonpublic information that is in the possession, custody or control of a licensee who is an insurer or its third-party service provider for which a consumer accessed the insurer's services through an independent insurance producer, and for which consumer notice is required under Section 75-24-29, the insurer shall notify the producers of record of all affected consumers of the cybersecurity event no later than the time at which notice is provided to the affected consumers. The insurer is excused from this obligation for any producers who are not authorized by law or contract to sell, solicit or negotiate on behalf of the insurer, and in those instances in which the insurer does not have the current producer of record information for any individual consumer.

SECTION 9. Section 83-5-813, Mississippi Code of 1972, is brought forward as follows:

83-5-813. (1) The commissioner shall have power to examine and investigate into the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of this article. This power is in addition to the powers which the commissioner has under Section 83-5-201 et seq. Any such investigation or examination shall be conducted pursuant to Section 83-5-201 et seq.

(2) Whenever the commissioner has reason to believe that a licensee has been or is engaged in conduct in this state which violates this article, the commissioner may take action that is necessary or appropriate to enforce the provisions of this article.

SECTION 10. Section 83-5-815, Mississippi Code of 1972, is brought forward as follows:

83-5-815. (1) Any documents, materials or other information in the control or possession of the department that are furnished by a licensee or an employee or agent thereof acting on behalf of a licensee pursuant to Section 83-5-807(9), Section 83-5-811(2)(b), (c), (d), (e), (h), (j) and (k), or that are obtained by the commissioner in an investigation or examination pursuant to Section 83-5-813 shall be confidential by law and privileged, shall not be subject to the Mississippi Public Records Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's duties. The commissioner shall not otherwise make the documents, materials or other information public without the prior written consent of the licensee.

(2) Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials or information subject to subsection (1) of this section.

(3) In order to assist in the performance of the commissioner's duties under this article, the commissioner:

(a) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (1) of this section, with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and with state, federal and international law enforcement authorities, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material or other information;

(b) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information;

(c) May share documents, materials or other information subject to subsection (1) of this section with a third-party consultant or vendor provided the consultant agrees in writing to maintain the confidentiality and privileged status of the document, material or other information; and

(d) May enter into agreements governing sharing and use of information consistent with this subsection (3).

(4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (3) of this section.

(5) Nothing in this article shall prohibit the commissioner from releasing final, adjudicated actions that are open to public inspection pursuant to the Mississippi Public Records Act, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries.

(6) Documents, materials or other information in the possession or control of the National Association of Insurance Commissioners or a third-party consultant or vendor pursuant to this article shall be confidential by law and privileged, shall not be subject to the Mississippi Public Records Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.

SECTION 11. Section 83-5-817, Mississippi Code of 1972, is brought forward as follows:

83-5-817. (1) The following exceptions shall apply to this article:

(a) A licensee meeting any of the following criteria is exempt from Sections 83-5-807, 83-5-809(3) and 83-5-811(4)(a) and (b):

(i) Fewer than fifty (50) employees, excluding any independent contractors;

(ii) Less than Five Million Dollars ($5,000,000.00) in gross annual revenue;

(iii) Less than Ten Million Dollars ($10,000,000.00) in year-end total assets; or

(iv) Insurance producers and adjusters.

(b) A licensee subject to Public Law 104–191, 110 Stat. 1936, enacted August 21, 1996, (Health Insurance Portability and Accountability Act) that has established and maintains an information security program pursuant to such statutes, rules, regulations, procedures or guidelines established thereunder, will be considered to meet the requirements of Section 83-5-807, provided that the licensee is compliant with, and submits a written statement certifying its compliance with, the same.

(c) An employee, agent, representative or designee of a licensee, who is also a licensee, is exempt from Section 83-5-807 and need not develop its own information security program to the extent that the employee, agent, representative or designee is covered by the information security program of the other licensee.

(d) A licensee affiliated with a depository institution that maintains an information security program in compliance with the Interagency Guidelines Establishing Standards for Safeguarding Customer Information as set forth pursuant to Sections 501 and 505 of the Gramm-Leach-Bliley Act (15 USC 6801 and 6805) shall be considered to meet the requirements of Section 83-5-807, provided that the licensee produces, upon request, documentation satisfactory to the commissioner that independently validates the affiliated depository institution's adoption of an information security program that satisfies the Interagency Guidelines.

(2) In the event that a licensee ceases to qualify for an exception, such licensee shall have one hundred eighty (180) days to comply with this article.

SECTION 12. Section 83-5-819, Mississippi Code of 1972, is brought forward as follows:

83-5-819. In the case of a violation of this article, a licensee may be penalized in accordance with Section 83-5-85.

SECTION 13. Section 83-5-821, Mississippi Code of 1972, is brought forward as follows:

83-5-821. The commissioner may issue such regulations as shall be necessary to carry out the provisions of this article.

SECTION 14. Section 83-5-823, Mississippi Code of 1972, is brought forward as follows:

83-5-823. If any provisions of this article or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the article and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION 15. Section 83-5-825, Mississippi Code of 1972, is brought forward as follows:

83-5-825. Licensees shall have one (1) year from July 1, 2019, to implement Section 83-5-807 and two (2) years from July 1, 2019, to implement Section 83-5-807(6).

SECTION 16. This act shall take effect and be in force from and after July 1, 2026.