Calif. Data Protection Bill Moves Forward

The California Senate has passed a bill to protect consumer data.

The bill, AB 779, goes back to the California State Assembly for ratification. The Assembly approved Assemblyman David Jones' bill in June by a 55-2 vote. The Senate approved the Consumer Data Protection Act, with 30 votes in favor and six against.

The bill would provide notice to consumers, telling them which retailers lost their credit or debit card information, and when the information was lost. It would require retailers responsible for data breaches to assume all costs of consumer notification and card replacement. It also would require retailers to follow key provisions of the payment card industry data security standards to ensure proper retention and protection of credit and debit card information. "Passage of this legislation is a great example of credit union teamwork and demonstrates the strength of our comprehensive advocacy efforts," California Credit Union League President and CEO Bill Cheney said in a statement. "It is extremely gratifying to credit unions that the state Senate has approved the bill by such an overwhelming margin."

The California Retailers Association opposes the bill. The group took out a political ad in the Sacramento Bee, with support from the California Bankers Association. It claimed that credit unions are exempt from the data security provisions.

The CCUL said they already meet those requirements under existing laws.

The full text of the bill is available online through the California Legislature's Web site.