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House adopts third substitute for SB 69 to require consumer notification after data breaches; later recalls it for a minor correction
Summary
Lawmakers substituted and amended Senate Bill 69 to require businesses to notify consumers when certain combinations of personal data are compromised and to clarify destruction procedures; the House adopted the third substitute but later voted to recall S.B. 69 from the Senate to correct a minor drafting issue.
Representative Clark moved to replace the second substitute of S.B. 69 with a third substitute aimed at fixing unintended consequences from earlier amendments and standardizing breach notification procedures across businesses. Clark said the third substitute treats all databases the same regardless of business size, prescribes how companies should notify individuals (mail, email if primary, telephone, or general newspaper circulation), and clarified that financial institutions remain governed by federal law.
Two clarifying amendments from industry representatives (including language about primary methods of communication and a wording change from "identity fraud or theft" to "identity theft or fraud") were adopted on the floor. Clark emphasized the bill does not create a new private cause of action and asked for the body's support.
The House adopted the third substitute and announced unanimous passage as amended. Later in the day Representative Clark moved to recall S.B. 69 from the Senate to make a minor correction; the House approved the recall motion and the bill was returned to the House for amendment.
