ARIZ. SENATE CONSIDERING LAW TO PROTECT CONSUMERS’ INFORMATION

Members of the Arizona Senate are considering a bill designed to safeguard the personal information of Arizona residents. SB 1338, authored by Sen. John Huppenthal, R-HD 20, requires businesses to notify their customers if data containing clients’ personal information is materially compromised.

“This bill gives small and large businesses the flexibility to comply with the law and help their customers without creating new onerous and expensive notification requirements,” said Janine Gibford, assistant vice president for the western region of the American Insurance Industry. “Businesses that don’t properly notify their customers will face fines up to $10,000 levied by the Arizona attorney general.”

AIA is supporting the bill. “We need modern solutions to fight modern crimes,” Gibford said. “This consumer protection bill will require businesses to alert customers if their personal information is accessed during a security breach. Businesses will be required to notify their customers via e-mail, letter or phone call so consumers can take the necessary steps to protect themselves.”

SB 1338 is currently awaiting a vote by the full Arizona Senate. If the bill is approved, Arizona will join 20 other states that have enacted security breach notification laws.