Schwarzenegger Says 'Hasta la Vista' to State Bill on Data Breach Costs
Computerworld -
In a decision that likely was a big relief to retailers nationwide, California Gov. Arnold Schwarzenegger vetoed a bill that would have made merchants in his state liable for the costs incurred by financial institutions as a result of retail data breaches.
In a statement explaining his Oct. 13 veto, Schwarzenegger said that the measure attempts to legislate in an area where the marketplace has already assigned responsibilities and liabilities that provide for the protection of consumers.
Approving the bill might have put California law in conflict with private-sector data security standards, Schwarzenegger added.

Arnold Schwarzenegger
The California Credit Union League, the bills chief proponent, expressed disappointment at the veto but vowed to try to get the measure passed in the states next legislative session.
The California bills demise means that Minnesota remains the only state to have passed a data breach cost-reimbursement law.
Retail industry groups have complained that such measures would unfairly penalize merchants that already pay for fraud-related costs via the so-called interchange fees that credit card companies assess on each transaction.
Read more about security in Computerworld's Security Knowledge Center.
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