Only one U.S. state without a data breach notification law, that is.
South Dakota as become the 49th state to enact a data breach notification law, which take effect on July 1. The South Dakota law follows the pattern of the most recent notification laws, including an expansive definition of "Personal Information".
The law defines personal information as a person's first name/first initial and last name in combination with any one or more of the following:
- Social Security Number;
- Driver's license number or other unique identification number created or collected by a government body;
- Account, credit or debit card number, in combination with any required security code, access code, password, routing number, PIN, or any additional information that would permit access to a person's financial account;
- Health information;
- Identification number assigned to a person by the person's employer in combination with any required security code, access code, password, or biometric data generated from measurements or analysis of human body characteristics for authentication purposes.
There is an additional definition of "protected information" that includes (a) a username or email address in combination with a password, security question answer, or other information that permits access to an online account; and (b) account number or credit/debit card number, in combination with any required security code, access code, or password that permits access to a person's financial account. The definition of "protected information" "does not include a person's name.
Again, South Dakota includes an encryption "safe harbor," but does require notification if the encryption key is compromised. Notice to the South Dakota Attorney General is required in any breach that exceeds 250 South Dakota residents.
Notification is required within 60 days of the discovery of the breach. A violation of the notification law is considered a deceptive act under South Dakota consumer protection laws, and the Attorney General has noted that this violation has the effect of creating a private right of action. The AG is also authorized to enforce the law and may impose a fine of up to $10,000 per day, per violation.
Alabama remains the sole U.S. state without a breach notification law, but the Alabama Data Breach Notification Act of 2018 passed the Alabama House unanimously and is now in the state Senate.
A update to the Mintz Matrix will be forthcoming this week with further details on this new South Dakota law, as well as some amendments to existing laws. Watch this space.
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