Category: Corporate & Business law
Do business in Texas? New rules for data breach!
July 16, 2019 | Carole Clark IsaksonCalifornia enacted the most comprehensive data privacy laws in the US – it goes into effect on January 1, 2020 (see The California Consumer Privacy Act recent blog post). In the meantime, other states are following suit. If you do business with individuals or companies outside Minnesota, make sure you are keeping up to speed with these new laws! Texas has amended the laws that apply to data breaches, this change applies on January 1, 2020. What is a data breach? Well, it can be slightly different from state to state, which is part of the challenge. In Texas, the law concerns sensitive personal information, which is defined as 1) an individual’s first name or first initial and last name in combination with SSN, driver’s license number or other specific account numbers that could permit access to an account and 2) which information is not encrypted. Disclosure of this information to someone that is not authorized to have it is a security breach, it’s that simple. And what happens then? Give notice to the affected persons within 60 days of discovery, and take other steps required by law (and good business practices). Texas has joined a growing group of states (roughly 30) that require that in the event of a data breach the…
Read MoreThe California Consumer Privacy Act – Be Prepared
July 8, 2019 | Carole Clark IsaksonDOES IT APPLY TO YOU? Do you do business in California, or otherwise collect personal information from California residents? (Hint, if you operate a website, this likely applies to you). Note that the CCPA does not apply to non-profits. It has been a year since California passed the most comprehensive data privacy laws in the U.S., and those laws go into effect in January of 2020. Is your business ready for this??? Many have been waiting for amendments to pass, but as this hasn’t happened yet (and may not for many months) the time has come to make sure your business is in compliance. Even if it applies to you, the CCPA has some important exceptions, designed to keep small businesses exempt from what can be pretty significant compliance requirements. CCPA only applies to businesses that fall into one of these three categories: 1. Buys, sells or shares personal information of 50,000 consumers [or devices]; or 2. Has gross revenue in excess of $25 million; or 3. Derives 50{a0c01d20c42349884e67ff80c137866b0a9fe47aaae8f8a86a605a369ae487c3} of its annual revenue from sharing personal information Under the law a California “consumer” has the right to: (1) request access and details about the personal information that has been collected about him or her over the last year; (2) request that this data…
Read MoreIRS Expands Self-Correction of Plan Qualification Errors
May 14, 2019 | Barna, Guzy & Steffen, Ltd.In 2018, the IRS modified its program for correction of plan qualification failures to significantly increase the fees for getting approval of corrections under the Voluntary Compliance Program (“VCP”). Since that occurred, the IRS has issued expanded permissible self-correction methods under Revenue Procedure 2019-19. This new Procedure provides many new ways in which a plan sponsor may act independently to fix errors to retain the plan’s tax qualification, without IRS filings, user fees, or other involvement. The new procedure permits plans to self-correct failures in two categories that previously required VCP filings: problems with participant loans and plan amendments. 1. In regards to loan failures, the new procedure permits self-correction of loan failures if the failure relates to • A default on loan payments (if the five-year maximum repayment period has not expired); • Allowing participants to have multiple loans even though not permitted under the plan or loan procedure; • Providing a loan when the plan does not permit (which was allowed under the old procedure, and continues under the new); or • The failure to obtain spousal consent (assuming that the spouse is now willing to provide that consent—if not, VCP is required to repair this failure). A loan failure correction of the above can either result in participant avoiding being…
Read More