Data Security Bill Moves Forward in California

SACRAMENTO, Calif. – Data security legislation continued to progress across the nation’s state legislatures, which have decided not to wait for Congress to enact a national standard. The California Assembly’s Judiciary Committee endorsed a credit union-supported bill that would require parties involved in a data breach to immediately notify their customers and for the parties responsible for the breach to pay costs associated with containing the damage, such as card reissuance. Similar bills are making their way through as many as half a dozen other legislatures with the help of the credit union lobby. The credit union lobby is also working with Congress on similar legislation to help pay for the uninsured costs of reporting and protecting against data leaks. The California bill now moves to another Assembly committee, Business and Professions for an April 24 hearing.