Friday, May 05, 2006

Arizona Enacts Security Breach Law

Arizona has enacted a security breach notficiation law.

The governor has signed Senate Bill 1338, which requires that:

"When a person that conducts business in this state and that owns or licenses unencrypted computerized data that includes personal information becomes aware of an incident of unauthorized acquisition and access to unencrypted or unredacted computerized data that includes an individual's personal information, the person shall conduct a reasonable investigation to promptly determine if there has been a breach of the security system."

If the investigation results in a determination that there has been a breach in the security system, the person shall notify the individuals affected. The notice shall be made in the most expedient manner possible and without unreasonable delay..."

This law is worded a little differently from other recently enacted security breach laws.

"Security Breach" means "an unauthorized acquisition of and access to unencrypted or unredacted computerized data that materially compromises the security or confidentiality of personal information... and that causes or is reasonably likely to cause substantial economic loss to an individual."


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