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Bill > S711


NC S711

NC S711
ROD Removal/Gov. Security Breach Notice Costs


summary

Introduced
03/25/2025
In Committee
04/30/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

AN ACT TO PROVIDE A REMOVAL PROCESS FOR REGISTERS OF DEEDS AND TO REQUIRE THIRD-PARTY ENTITIES THAT CAUSE SECURITY BREACHES TO PAY FOR OR REIMBURSE NORTH CAROLINA GOVERNMENTS FOR COSTS ASSOCIATED WITH BREACH NOTIFICATIONS UNDER THE IDENTITY THEFT PROTECTION ACT.

AI Summary

This bill introduces two main provisions aimed at improving government accountability and protecting public entities from financial burdens related to data breaches. First, the bill establishes a comprehensive procedure for removing a Register of Deeds from office, detailing specific grounds for removal such as willful neglect of duties, misconduct, corruption, extortion, felony conviction, or intoxication. The removal process involves filing a petition with the superior court, which can be initiated by five qualified county electors or by a county/district attorney, and provides for potential suspension of the official pending a hearing. The bill also mandates that if the accused is found innocent, they can be reimbursed for reasonable defense expenses. Second, the bill requires third-party vendors or contractors who cause a security breach involving a North Carolina governmental entity to pay for or reimburse the full cost of legally required breach notifications and associated legal fees, either through cyber liability insurance or the vendor's own funds. This provision is designed to shift the financial responsibility for data breaches from government entities to the responsible third parties. The bill becomes effective immediately upon becoming law, with the security breach provisions applying to acts and omissions occurring on or after that date.

Committee Categories

Justice

Sponsors (3)

Last Action

Rules and Operations of the Senate Hearing (09:00:00 5/1/2025 1027/1128 LB) (on 05/01/2025)

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