Arizona Legislature Considers Strengthening Data Breach Notification Law

John G. Kerkorian, David M. Stauss, Gregory P. Szewczyk, and Kimberly A. Warshawsky of Ballard Spahr write:

The Arizona State Legislature is considering proposed legislation that, if enacted, would significantly change the requirements for how Arizona entities respond to data breaches.

Under Arizona’s existing breach notification law, entities that conduct business in the state and own or license computerized data that includes personal information (PI) are required to notify individuals if the entity is the victim of a security breach that compromises the security or confidentiality of the PI and that causes or is likely to cause substantial economic loss to an individual. The proposed legislation would remove the “substantial economic loss” requirement, thereby lowering the threshold for when notice is required.

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