Compliance Alert

Schwarzenegger Signs Bill

California Gov. Arnold Schwarzenegger has signed AB 424 into law. The bill, which passed the California Senate and Assembly in February, enables businesses that have been victimized by ID theft to file a police report and to pursue those who have stolen money from them.

Aseemblyman Ron Calderon (D. – Montebello) sponsored the bill, which was first introduced in February of 2005.

The bill amends the state’s penal code concerning identity theft to include "a firm, association, organization, partnership, business trust, company, corporation, limited liability company or public entity."

The bill expands "personal identifying information" to include taxpayer identification numbers and other identifiers that relate to businesses in addition to personal information that is specific to individuals.

Under the new law, organizations that have learned or suspect that their personal information has been used unlawfully "may initiate a law enforcement investigation by contacting the local law enforcement agency that has jurisdiction over his or her actual residence or place of business, which shall take a police report of the matter, provide the complainant with a copy of that report and begin an investigation of the facts."

Additionally, apart from available criminal remedies, businesses who have been victimized by ID theft can now bring a civil action for damages against the offending party.

The law went into effect immediately upon signing.