Who Is Covered?

“Information holder” means any person or business entity that conducts business in this state. Ky. Rev. Stat. § 365.732(1)(b).

What Information Is Protected?

“Personally identifiable information” means an individual’s first name or first initial and last name in combination with any one or more of the following data elements, when the name or data element is not redacted:

1. Social security number;
2. Driver’s license number; or
3. Account number or credit or debit card number, in combination with any required security code, access code, or password to permit access to an individual’s financial account.. Ky. Rev. Stat. § 365.732(1)(c).

What Is A “Breach”?

“Breach of the security of the system” means unauthorized acquisition of unencrypted and unredacted computerized data that compromises the security, confidentiality, or integrity of personally identifiable information maintained by the information holder as part of a database regarding multiple individuals that actually causes, or leads the information holder to reasonably believe has caused or will cause, identity theft or fraud against any resident of the Commonwealth of Kentucky. Good-faith acquisition of personally identifiable information by an employee or agent of the information holder for the purposes of the information holder is not a breach of the security of the system if the personally identifiable information is not used or subject to further unauthorized disclosure. Ky. Rev. Stat. § 365.732(1)(a).

What Triggers Notification?

Discovery or notification of the breach in the security of the data involving the unencrypted personal information of any resident of Kentucky that is reasonably believed to have been acquired by an unauthorized person. Ky. Rev. Stat. § 365.732(2).

How Is Notice Provided To Individuals?

Timing: Disclosure must be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement, or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system. Ky. Rev. Stat. § 365.732(2).

Delivery: Notice may be made by:

1. Written notice;
2. Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. sec. 7001; or
3. Substitute notice, if the information holder demonstrates that the cost of providing notice would exceed $250,000, or that the affected class of subject persons to be notified exceeds 500,000, or the information holder does not have sufficient contact information. Ky. Rev. Stat. § 365.732(5).

Content: None specified.

Is Notice To The Government Required?

No.

Is Notice To Credit Reporting Agencies Required?

Yes. If a person discovers circumstances requiring notification pursuant to this section of more than 1,000 persons at one time, the person shall also notify, without unreasonable delay, all consumer reporting agencies and credit bureaus that compile and maintain files on consumers on a nationwide basis of the timing, distribution, and content of the notices. Ky. Rev. Stat. § 365.732(7).

Are There Security Measure Standards?

No, although Ky. Rev. Stat. § 365.725, not part of the breach notification law, requires that when a business disposes of, other than by storage, any customer’s records that are not required to be retained, the business shall take reasonable steps to destroy, or arrange for the destruction of, that portion of the records containing personally identifiable information by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or indecipherable through any means.

A violation of the record disposal law may result in an injunction and a civil action by any injured customer. Ky. Rev. Stat. § 365.730.

What Are The Possible Consequences Of A Violation?

N/A.

Are There Any Exemptions/Exclusions?

An information holder that maintains its own notification procedures as part of an information security policy for the treatment of personally identifiable information, and is otherwise consistent with the timing requirements of this section, shall be deemed to be in compliance with the notification requirements of this section, if it notifies subject persons in accordance with its policies in the event of a breach of security of the system. KRS § 365.732(7).

Also, the provisions of [the breach notification law] and the requirements for nonaffiliated third parties in KRS Chapter 61 shall not apply to any person who is subject to the provisions of Title V of the Gramm-Leach-Bliley Act or the federal Health Insurance Portability and Accountability Act or any agency of the Commonwealth of Kentucky or any of its local governments or political subdivisions. KRS § 365.732(8).