SB 1386

What is SB 1386

On September 26th, 2002, the Secretary of State of California chaptered Senate Bill 1386, to amend existing Civil Code, to state that - any business or agency that uses a computer to store confidential personal information about a California resident, must immediately notify that individual, upon discovering any breach to the computer system on which this information is stored. Failure to notify the individual(s) could subject the business/agency to civil damages and lawsuits. The statute becomes effective July 01, 2003.

While lawsuits, by themselves, can be sufficiently damaging to a company's bottom-line and reputation, not dealing with the risks associated with SB 1386 could trigger violations of the Sarbanes-Oxley Act, which now have serious consequences for violators - as much as a lifetime sentence in jail! (See BusinessWeek April 7, 2003 issue for story, and the Federal Sentencing Guidelines for details).

SB 1386 Resources:

Original California State Document of SB1386

PolyCommerce can help you manage compliance to the SB 1386 law.