Act 40-2024: Avoid Penalties and Secure your Government Contracts

•2 min read

Learn how Act 40-2024 impacts Puerto Rican contractors. Avoid penalties, ensure compliance, and secure your government contracts.

Introduction

In Puerto Rico, the transition to a new administration signals a critical time for contractors. By law, government contracts are reset, requiring businesses to reassess compliance with updated regulations. Chief among these is the Cybersecurity Act of Puerto Rico (Act 40-2024), a landmark law that establishes strict standards to protect data and secure government systems.

For contractors, this is not just an obligation—it’s an opportunity to strengthen their position as reliable government vendors by ensuring full compliance and reducing risks of penalties or disqualification.

What Act 40-2024 Requires

Act 40-2024 imposes clear obligations on contractors to ensure the security of government data and systems. As detailed in our previous publication on Act 40-2024 [insert link], key requirements include:

  1. Mandatory Cybersecurity Standards: Implement robust measures such as encryption, data classification, and multi-factor authentication.

  2. Incident Reporting: Report any cybersecurity breaches or incidents to the Office for Cyber Incident Evaluation within 48 hours.

  3. Penalties for Non-Compliance: Failure to comply can result in daily fines, penalties up to $5,000, and disqualification from future government contracts.

For a comprehensive breakdown of Act 40-2024 and its implications, be sure to review our in-depth coverage here.

How Contractors Can Stay Compliant

To ensure compliance with Act 40-2024 and secure government contracts under the new administration, contractors should:

  • Evaluate Current Cybersecurity Practices: Conduct a full assessment of systems and protocols to confirm alignment with Act 40-2024’s standards.

  • Implement Staff Training: Provide annual cybersecurity training to all employees as required by law.

  • Update Documentation: Ensure certifications, policies, and contractual agreements meet the latest regulatory requirements.

Take Action Today

With government contracts being reset, now is the time to act. Ensuring compliance with Act 40-2024 will protect your business from penalties and position you as a trusted government vendor.

  • Schedule a Consultation with MZLS: For legal compliance guidance, reach out to MZLS today by clicking here.

Don’t wait—proactively address your compliance needs to secure your contracts and strengthen your government partnerships.