May 28 — A bill (A.B. 1710) to update the California data breach notification law to require retailers and other businesses to notify consumers of a breach at the same time they notify data owners passed the Assembly May 27.
A.B. 1710 by Assemblymen Roger Dickinson (D) and Bob Wieckowski (D) passed 43-25, with Democrats in favor and Republicans opposed. It now moves to the Senate for consideration.
Dickinson said before the floor vote that he expects to amend the bill as it moves through the Senate to address opposition from business groups. The California Retailers Association, California Bankers Association and the Internet Association are opposed to the bill.
“We have addressed the main concerns, but we also know there are some remaining that we continue to work on,” Dickinson said. “I believe that they are eminently solvable.”
The bill would provide a safe harbor from breach notification requirements if personal information is encrypted, according to Dickinson. But the type of encryption is a sticking point that could be the topic of amendments in the Senate, industry groups told the committee in early May when the Assembly Banking & Finance Committee approved the measure.
The current breach notification law says consumer notification isn't required if the data were encrypted. Under the bill, the safe harbor would apply if the data were encrypted “in conformance with the Advanced Encryption Standard of the National Institute of Standards and Technology, Federal Information Processing Standards Publication 197, as amended from time to time.”
A.B. 1710 also would require entities that maintain personal information—in addition to those that own or license it—to send consumer data breach notifications, and it would add a prohibition on the sale of Social Security numbers to current law.
The bill has support from Privacy Rights Clearinghouse, the American Civil Liberties Union and the Consumer Federation of California.
A.B. 1710 was amended May 5 to remove sections that would have held businesses liable for breach notification and card replacement costs and limited the retention of consumer and payment-related data.
Dickinson and Wieckowski accepted the amendments at the committee hearing, one month after introducing the broad language of the bill.
To contact the reporter on this story: Laura Mahoney in Sacramento, Calif., at email@example.com
To contact the editor responsible for this story: Katie W. Johnson at firstname.lastname@example.org
Full text of A.B. 1710, as amended in the Assembly, is available at http://op.bna.com/pl.nsf/r?Open=kjon-9kjrbx.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)