An important new Act that will effect your business!

Effective October 1, 2008, Connecticut will have a new law that requires business entities and individuals who obtain “personal information” about another person to safeguard and properly dispose of it. This new statute, Connecticut Public Act 08-167 entitled “An Act Concerning the Confidentiality of Social Security Numbers” will require action on the part of most businesses and many individuals. The Act specifically requires business entities and individuals to protect personal information, which is defined as any information that associates a particular individual with a unique identifier such as: a Social Security number, a driver’s license number, a state identification card number, an account number, a credit or debit card number, a passport number, an alien registration number, or a health insurance identification number. Personal information does not include information that is lawfully available to the general public from government records or widely distributed media.
This Act gives spesific attention to Social Security numbers. It requires any person who collects Social Security numbers “in the course of business” to establish and publicly display a “privacy protection policy.” The Act does not provide a sample privacy protection policy nor is there guidance other than that the policy must: (1) protect the confidentiality of Social Security numbers, (2) prohibit unlawful disclosure of Social Security numbers, and (3) limit access to Social Security numbers.
If this Act is not followed it could provide civil penalties of $500 for each violation, up to a maximum of $500,000 for any single event. These penalties only apply in the case of intentional violations, the Act may put one in the position of having to prove that an action was unintentional.
The Act impacts all businesses that collect Social Security numbers and other personal information. The fact that all businesses that have employees must collect Social Security numbers in order to deduct FICA and other employment taxes means that all businesses must develop and follow the requirements of the new Act. The Department of Consumer Protection will be primarily responsible for enforcing the Act although certain State agencies that issue licenses, registrations or certificates will be responsible for their own enforcement.