Senate Approves Corbett Bill Protecting Consumers From Online Account Breaches

May 16, 2013

SB 46 Protects Public, Minimizes Potential Fraud

SACRAMENTO – Senate Majority Leader Ellen M. Corbett (D-East Bay) announces that the California State Senate passed SB 46 earlier today.  This bill strengthens computer account protections for the public by requiring the state and any person or companies operating in California who maintain computerized data about their clients or customers to notify them when a discovery of a security breach is detected.

Existing law currently requires the groups noted above to notify their clients or customers when they reasonably believe that an unauthorized person has acquired personal information that includes unencrypted social security numbers, driver’s license numbers, medical information, health insurance information and specific financial account information, such as credit card numbers with security codes.  Unfortunately, current law does not require similar customer notification when passwords, usernames or security questions / answers are changed.

“SB 46 builds on existing requirements for prompt consumer notification whenever someone unauthorized obtains specific online account information,” Senator Corbett said. “Cybercriminals are becoming increasingly savvy, particularly now that more individuals are using laptops, smartphones and even tablets to conduct personal business and shop online.  It is critical that consumers are informed whenever their information is accessed or stolen to minimize potential theft and damages.  I am certainly pleased that California Attorney General Kamala Harris, the Consumer Federation of California and the Privacy Rights Clearinghouse have all expressed strong support for SB 46 as it now moves to the Assembly.”

SB 46 is supported by the Consumer Federation of California, Office of the Attorney General and Privacy Rights Clearinghouse.