Amendments to California’s security breach notification bill head to governor: key action points for businesses

By Jim Halpert, Aravind Swaminathan and Michelle J Anderson

In what has become almost an annual ritual, California is poised to tweak its security breach notice law. Last year, in language DLA Piper lawyers helped to draft on behalf of the State Privacy & Security Coalition, the legislature required notification of breaches of credentials for online accounts. This year’s tweaks, which DLA Piper lawyers again helped to draft, are narrower.

Under the bill (A.B. 1710), if an organisation experiencing a breach offers identity theft mitigation services, the proposed law would require that the organisation offer at least 12 months of such assistance at no cost to the individual. The bill passed the Senate on 25 August 2014; it is very likely to be signed by governor Jerry Brown in the next month and is set to take effect on 1 January 2015. 

The bill also (i) extends data security requirements to businesses that ‘maintain’ personal information (the current law only imposes that requirement for organisations that ‘own’ or ‘license’ personal information); and (ii) generally, subject to exceptions, prohibits the sale, advertisement for sale or offer to sell an individual’s social security number…

Click on the link below to read the rest of the DLA Piper briefing.

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