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Arizona Passes Shred Law

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Section 1, Title 44 of the Arizona Revised Statues was recently amended to create a new requirement for all businesses in the state to destroy personal information before it is discarded.

The penalties for violating the new destruction requirement are $500 for the first occurrence, $1,000 for the second occurrence and $5,000 for the third occurrence.

Unfortunately, the new law exempts any organization that is covered by HIPAA, GLB or FRCA, the latter of which contains FACTA. This is unfortunate for two reasons; 1) it shows a basic lack of understanding regarding the requirements of those regulations, and 2) Since every business and individual in the country is covered by the FCRA, it is arguable that every business is exempt from the new regulation. The good news is that the vast majority of businesses will not be aware of such subtleties and should, therefore, take the new law seriously.