segphault writes "A new data breach disclosure bill proposed by Senator Sensenbrenner (the same politician that sponsored the infamous Real ID Act) requires companies to inform federal law enforcement agencies if a database containing information on more than 10,000 citizens is infiltrated by hackers. The punishments for failing to disclose information about data breaches to federal law enforcement agents under this new bill include jail time and massive fines. Although this bill requires disclosure to the government, it does not require companies to inform the victims of data theft. Furthermore, it allows federal law enforcement agencies to prevent companies from voluntarily disclosing information about breaches to the public, even if the companies are required to do so by state laws. This law could potentially allow companies to circumvent and undermine state laws designed to protect consumers from identity theft."