January 20, 2009
President’s Update on Data Privacy Regulations
Dear Chamber Member:
I am writing to update you on a first-in-the-nation data privacy regulation that will impact all Massachusetts employers regardless of size or industry. The regulation [201 CMR 17.00] under consideration by the Office of Consumer Affairs and Business Regulation (OCABR) has a May 2009 general compliance date and currently calls for a sweeping new set of requirements for employers - including data encryption and inventory, third-party vendor certification, and a series of other requirements that will demand
material changes in business practices along with substantial, ongoing financial and resource investments by Massachusetts companies. Last Friday, the Chamber testified at a public hearing advocating for key revisions in the regulation and the need to implement it in a way that does not unnecessarily burden employers or harm competitiveness during these challenging economic times (click here to view testimony).
The Chamber has worked closely with the administration and OCABR, the Attorney General's office, the legislature, and many of you in recent months in an effort to delay the implementation of the regulation and to work toward key revisions that will better enable our members to comply with these new requirements. While we were successful in securing delays in the effective dates of this regulation, there remain several requirements within the regulation that we believe merit further discussion and consideration
prior to their implementation.
The Chamber believes data privacy can be enhanced in Massachusetts without significantly impacting jobs, investment, or the overall economic competitiveness of the state. As such, we will continue to provide a strong voice for the employer community in the days ahead as we work with government and industry stakeholders toward implementing a data privacy regulation that furthers our commonly shared goals of protecting personal information and growing the economy.
COMMENTS & QUESTIONS - If you wish to submit comments on this regulation, they may be emailed to David A. Murray, General Counsel, OCABR, at David.Murray@state.ma.us up to the close of business tomorrow, January 21st. Also, if you have any questions or would like to discuss this issue further, please contact Tim Sweeney, director of public policy at (617) 557-7357 or tsweeney@bostonchamber.com. Thank you for your time and for your continued support of the Chamber.
Paul Guzzi
President & CEO