Gearing Up For July 1, 2003 - Senate Bill 1386 - How Does It Affect You?. "On July 1, 2003, Senate Bill 1386 becomes Civil Code 1798.82. In a nutshell, the law states that any person or company doing business in the state of California is responsible for notifying California residents of security breaches to their non-encrypted information. It is important to note that the actual breach does not need to occur in the state of California for the law to apply."
See my previous post on this legislation and its ramifications here.