Small Business, Big Exposure: California’s New Cyber Law Hits More Than You Think

Think you're too small to worry? Think again.

On July 24, 2025, California approved new cybersecurity rules that don’t just apply to Big Tech—they apply to any business processing a significant volume of personal or sensitive information, regardless of revenue.  And, as we all know, once California passes regulations, you can expect similar federal and state regulations to follow.

If your business processes personal info for more than 250,000 people—or sensitive info for 50,000—you’re on the hook for annual, independent cybersecurity audits.

That includes:

  • Dental offices with 15,000 patients over 3 years
  • Payroll firms processing social security numbers
  • SaaS providers handling employee HR data

If you touch high-risk data, California now expects you to prove you’re securing it every. single. year.

Source: Law360, Aug. 22, 2025

What the Regulation Requires:

The new CCPA rules demand:

  • Annual cybersecurity audits for “significant risk” data processors
  • Independent assessment by a qualified auditor (internal or external)
  • Certification submitted to the state
  • Explicit review of:
    • Penetration testing
    • Password and access control
    • Incident response
    • Encryption, education, and data retention

This isn’t guidance. It’s a regulatory requirement with a ticking timeline.

Why Galactic Has You Covered

Galactic’s third-party penetration test process was built for exactly this.

Our approach is:

  • Compliant with the CPPA’s audit categories
  • Repeatable, evidence-based, and regulator-ready
  • Designed to reduce legal liability and insurance denials

We handle the testing. We gather the evidence. You get defensible documentation.

Don’t Wait for the CPPA to Call

If you’re managing data that falls into these thresholds, you’re already inside the regulatory blast zone.

  1. Audit triggers start in 2027
  2. Reports due by April 1 each year after
  3. CPPA can demand audit proof at any time with just 30 days' notice

Galactic gives you a turnkey solution so you can move now—not when it’s too late.

Bottom Line:

You don’t need to be a $50M company to be a target, California just made that clear.  By the time the California triggers begin in 2027, we fully expect a number of states (if not federal!) regulations imposing similar requirements.

Galactic is the fastest path to audit readiness—so you can stay compliant, protect your business, and keep your clients.

→ Ready for a test that protects you? Let’s talk.