| Sec. 2. Data security and security breach study; report. The Department of |
| Professional and Financial Regulation, in conjunction with the |
| Attorney General, other financial regulatory agencies, business |
| representatives, other interested parties that store electronic |
| consumer data and consumer representatives, shall conduct a study |
| regarding data security and security breach requirements. The |
| study must include, but is not limited to, current electronic |
| data security plans used by businesses; the value, practicality |
| and costs of imposing additional requirements, including |
| notification requirements, on businesses; California law |
| governing security breach and notification requirements; and the |
| right to private cause of action for a person injured by a |
| violation of security breach notification law. The Department of |
| Professional and Financial Regulation shall report its findings, |
| including any proposed legislation, to the Joint Standing |
| Committee on Insurance and Financial Services, by February 1, |
| 2006. Following receipt and review of the report required under |
| this section and the report required under section 3, the Joint |
| Standing Committee on Insurance and Financial Services may report |
| out a bill related to the reports to the Second Regular Session |
| of the 122nd Legislature. |