HB 2690 Summary

• Adds cybersecurity insurance coverage to Arizona's state insurance program by allowing the Department of Administration to obtain insurance or self-insure against actual or suspected data breaches, security system breaches, and security incidents for select state agencies, boards, and commissions.

• Establishes a new "cyber risk insurance fund" in the Department of Administration to pay for cybersecurity-related insurance purchases, self-insured losses, and administrative costs.

• Defines "breach," "security system breach," and "security incident" by cross-reference to section 18-551 for purposes of determining coverage eligibility.

• Allows the director of the Department of Administration to impose deductibles on state departments, agencies, boards, and commissions for cyber-related claims, subject to joint legislative budget committee review of any deductible changes.

• Requires the Department of Administration to include cyber risk insurance fund replenishment in its annual budget request to the legislature and makes monies in the cyber risk insurance fund continuously appropriated for fund purposes.