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Arkansas Data Breach Law
Arkansas, aka The Natural State, has some Cybersecurity & Data Security Regulation that businesses operating there need to be mindful of.
- Arkansas Code § 23-61-113: This statute governs the disclosure of nonpublic personal information by insurance licensees.
- Arkansas Code § 4-110-105: Requires entities that experience a breach of personal information to notify affected residents.
Notification Requirements:
Timely notification to affected individuals (as quickly as possible and without unreasonable delay).
Notification to the Arkansas Insurance Commissioner.
Penalties: Violations can result in fines and other disciplinary actions.
Arkansas Code 4-110-101: Personal Information Protection Act
- Enacted in 2005, Arkansas’s data breach notification legislation requires entities – regardless of their location – that acquire, own, or license computerized personal information relating to Arkansas residents to notify affected individuals of unauthorized acquisitions of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by the entity.
- Notification must be made in the most expedient time and manner possible without unreasonable delay.
- Notification is not required if an investigation determines that there is no reasonable likelihood of harm to affected individuals.
- Breached third parties must notify the relevant data owners or licensees immediately following discovery of the unauthorized acquisition.
- Substitute notice is permitted in specific circumstances and notification may be delayed for law enforcement purposes.
- Entities that maintain their own notification procedures are deemed to comply with the notification requirements of this law, if the procedures are consistent with statute and are followed in the event of a breach.
Specifics
Arkansas’ Personal Information Protection Act requires any business or leaser who acquires, owns, or licenses Arkansas unencrypted protected information (plus medical data) to notify their customers of a data breach by written or electronic means. Businesses in Arkansas do not have to notify customers if the cost is more than $250,000 or the breach involves more than 500,000 residents.
| Name of Law / Statute | Personal Information Protection Act |
| Definition of Protected Information | Combination of (1) name or other identifying info, PLUS (2) one or more of these “data” elements: SSN; driver’s license number; or account number, credit card number, debit card number if accompanied by PIN, password, or access codes PLUS medical data |
| Who Is Subject to Law? | Business or individual who acquires, owns, or licenses Arkansas PI |
| Notification of Consumers? | Yes, unless determination of no harm by business |
| By what means? | Written or electronic |
| Substitute Notice Threshold? | If cost of notice >$250,000 or involves >500k residents |
| Notification of authorities / regulators required? | No |
| By what means? | N/A |
| Regulatory Fines | N/A |
| Credit monitoring requirement? | No |
| Private lawsuits allowed? | No |
| Private damages cap? | N/A |
| Regulatory actions allowed? | No |
| HIPAA Compliance exemption? | No |
| Other (e.g., timeframe) | Law does not apply if PI was encrypted |
| Link to complete law | http://privacylaw.proskauer.com/uploads/file/Arkansas%204-110-%20101%20to%20108.pdf |
Read the full text of Arkansas’s data breach law for more information.
Arkansas State Cybersecurity & Data Security Regulation may evolve to include additional requirements in the near future.
