CU-Backed Data Security Bill Heads to Gov. Schwarzenegger’s Desk

SACRAMENTO, Calif. – The California State Assembly on Monday unanimously ratified amendments made to legislation designed to hold retailers responsible for protecting consumer information. The bill began in the California Assembly, which approved it June 5 by an overwhelming, 55-2 vote. On Sept. 6, it cleared the California State Senate by a 30-6 vote. The Senate made some technical amendments to the legislation, which brought it back to the Assembly for yesterday’s vote. The bill next moves to Gov. Arnold Schwarzenegger’s desk, where he will have 30 days to approve or veto it. Bill Cheney, the California CU League’s president and CEO, said in a statement: “The passage of AB 779 by an overwhelming majority of both houses makes a very strong statement for protection of consumer data. We are encouraged this positive momentum will carry forward as the Governor considers this landmark legislation.” The bill is supported by the California Credit Union League and is opposed by the California Bankers Association and other groups. The CCUL said the legislation addresses three deficiencies the credit union movement sees in California’s existing data breach notification law.