California to Close Loophole in ID Theft Law

A new report suggests California legislators are backing a bill designed to beef up the state's existing laws about when to disclose security breaches that involve consumer data. Will the new bill close the loophole in the existing law?

In an article on the Register website, writer John Leyden says the California Assembly's judiciary committee voted 6 to 3 last week on the bill. The bill would require firms to tell consumers if either paper records or back-up tapes that contain personal information are either compromised or lost, Leyden says.

Leyden says these types of information security breaches are already covered by state laws on ID theft that came into effect in January 2003. Leyden says "the new bill is essentially designed to close a loophole in existing laws."

"Right now, companies have to tell you when a thief hacks into their computer system and gets access to your personal account information or Social Security number, but they don't have to say word one when paper records or a back-up tape containing the exact same personal information are lost, stolen or inadvertently handed to a perfect stranger," Democratic state Sen. Debra Bowen told Reuters.

Leyden says California's Senate has already approved the bill, and it will now pass it on to the Assembly Business and Professions Committee. He also says California has the "toughest security breach disclosure laws" in the country.

To read the full article, click here: http://www.theregister.co.uk/2005/06/22/california_id_theft_law_update/