SACRAMENTO, Calif. -
The author of the bill, Assemblymember Dave Jones (D-Sacramento), was joined by California CU League's Bob Arnould for the unveiling of the revised bill.
The CCUL is supporting the data security bill, which is opposed by the California Bankers Association and other groups. The league said AB 779 "addresses three deficiencies" CUs see in California's existing data breach notification law. First, the CCUL said the new law would result in better securitization of financial data retained by retailers. Second, consumers would receive more information on data breaches. Third, financial institutions can receive reimbursement for the cost of notifying consumers if the breach was not the fault of the institution.
Currently, CUs not only incur a financial charge for notifying members of a data breach, they also take the member relations hit even if they are not at fault.
"AB 779 is vital to improving the law," Arnould said. "It unquestionably will lead to fewer data breaches out in the vast consumer marketplace, preventing millions of dollars in fraud and saving millions of consumers from the trap of identity theft."
Keri Bailey, a lobbyist for the CCUL, told Credit Union Journal the League approached Jones, who is chairman of the California Assembly Judiciary Committee, in January to request he carry the legislation.
The bill was approved by Jones' committee on April 17 by an 8-2 vote.
Bailey said the CCUL anticipates the bill will be heard on the California Assembly floor some time in the first two weeks of June.
