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Committee approves cleanup of 2023 cyber-response board law to let affected governments choose vendors
Summary
Lawmakers advanced HB 1666, a cleanup measure for the cyber response board created in 2023. Sponsors said the bill clarifies voting membership, removes language that could be read as waiving immunity, and lets an attacked entity pick its own vendor to respond to cyber incidents.
Senator Kim Hammer, joined by Chris Velines of the Association of Arkansas Counties, presented HB 1666 as a cleanup to legislation enacted in 2023 that created a cyber response board for counties, cities and K-12 entities. Velines said the board is modeled on the existing Fidelity Bond Board and operates as a pooled fund to help pay and coordinate response to cyberattacks affecting local governments and schools.
Velines told the committee the cleanup corrects drafting errors discovered after implementation. Among changes, the bill moves a legislative-audit vote back to the Arkansas Insurance Department as originally intended, strikes language that could be construed as waiving immunity, and clarifies that the entity under attack may use its familiar technology vendor rather than a preselected vendor.
Committee members asked how the pool operates and whether it contains a claims schedule. Velines said the program functions like a captive insurance pool: members contribute to a fund that may be used to reimburse entities for response costs. He said the board has already handled three or four incidents and anticipates it may take several years to build reserves sufficient to reduce premiums. The Arkansas Insurance Department participated in drafting and supports the bill, Velines said.
There were no public opponents in the hearing. A motion to adopt a sponsor amendment and to pass as amended was moved and seconded; the committee approved HB 1666 on a voice vote.
