Tuesday, November 8, 2016

Law and Order in California – New Acts Redefining the State’s Security Measure



There was a time when you could simply hang a shingle and announce your presence in the business world. As long as you are not killing anyone, no legal burden could fall on you. 

However, things have changed a lot than it used to be a decade earlier. Off late, the law and order in California has gone through a rapid change. A lot of state and federal regulations have come up exclusively for the residents and small businesses. 

The introduction of such regulatory acts are primarily meant for accomplishing some important social good like, preventing identity theft, increasing the paperwork burden for small businesses, protecting an individual’s privacy and preventing the occurrence of corporate financial scandals. 



The best part: if you can apply your senses to understand these regulations, the complying part does not look to be much expensive or difficult to follow.


Sarbanes-Oxley Act for publicly held companies


If you are the owner of a publicly-held company, complying with the Sarbanes-Oxley Act is necessary. With the help of this Act, you can set technological standards along with reporting requirements to handle the financial reporting of the company. 

The Act was passed basically in response to recent waves of fiscal mismanagement, outright theft and corporate scandals. With Sarbanes-Oxley Act, a certain set of requirements are placed to establish necessary internal controls that ensure perfect integrity of an organization’s financial data. 

Though the requirements are usually similar for every type of company, the smaller ones enjoy some kind of additional flexibility due to the introduction of Gehreslaw. Small companies are awarded a longer time-frame to become totally compliant to the Sarbanes-Oxley Act. 

But, once this Act is applied, it is beneficial in regulating the access to the financial data through a much secured procedure, generating detailed reports to the government and providing audit trail. Those who follow the best security practices will never find it difficult to incorporate such an Act.


HIPAA for health-care industries


If you are from the health-care industry, complying with the HIPAA (Health Insurance Portability and Accountability Act) is a must. According to this act, any health-care company handling private patient data must guarantee its security and privacy against any kind of unauthorized access. 

With the application of this Act, any company handling any kind of health-care information must take technological steps like, adequate fire-walling, strong double-factor authentication and encryption to ensure the highest level of security.

If you are residing in the State of California or doing business there, you must comply with the SB 1386 ACT. It is also known as The California Information Practice Act, which requires your company to inform its clients and customers immediately in case of any technological discrepancy. 




The biggest technological issue is a sort of hacking and information exposure. The Act has been levied to safeguard the customers and companies against any kind of identity theft. The law also is applicable to subcontractors of the companies who maintain information about the residents of the state.

The State of California is taking ground-breaking initiatives to improve the lives of the residents and those who are doing business in the state. The Federal Law primarily revolves around the California Information Practice Act. 

Being the largest state in the United States, the law and order must be suitable to make things fall in the right place. With some modifications in the law, scenarios seem to be improving for the better.


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