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Panel considers bill to bar insurance contract language from blocking legally required cybersecurity breach notices

3406771 ยท May 20, 2025

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Summary

House Bill 5331 would render unenforceable any contract clause that prevents a state agency or local government from making statutorily required breach notifications; the committee returned the bill to its filed form and left it pending after a brief presentation.

Senators reviewed House Bill 5331, a measure to ensure that insurance contract clauses do not prevent governmental entities from complying with legally required notifications after a cybersecurity breach. The bill's sponsor, Senator King, told the committee that some local governments reported policy language in cyber insurance contracts that prevents them from fulfilling notification obligations required under current law.

53 31 (committee substitute returned to filed version) would nullify any contract language that prohibits agencies and local governments from providing legally required notices about breaches. The bill clarifies that an insurance policy cannot override state law on notification obligations.

The committee substitute returned the text to the filed version because a house floor amendment addressed an unrelated topic already enacted. After sponsor remarks the panel opened and closed public testimony with no additional witnesses and left HB 5331 pending.