Mandatory Info Security Breach Notice Fails in Committee

By CMTA Staff

Capitol Update, July 1, 2005 Share this on FacebookTweet thisEmail this to a friend

SB 852 (Debra Bowen, D-Marina Del Rey) would have mandated that businesses send out a breach notice if they had any reason to believe that an unauthorized person had acquired any paper-based "personal information" on an individual.

The chief reason CMTA opposed the bill was that there was no flexibility for a business to investigate the risk to an individual for identity theft to determine if a notice was warranted to protect the consumer’s sensitive information. Instead, this bill would have required that companies send huge volumes of notices to "any resident of California whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person."

SB 852 had a policy hearing on June 28th in the Assembly Business & Professions Committee where the bill was met with significant opposition by various segments of the business community. At first the bill struggled to even get a motion from any member of the committee for a vote, but a "courtesy" motion was finally given.  The bill received only one affirmative vote in a committee of ten members (seven of whom are democrats) and, as a result, failed passage.  The bill, again as a matter of courtesy, was granted reconsideration.  The odds are that it will not come up for hearing again.
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