California Split: Committee kills financial opt-in bills in favor of an opt out
Financial direct marketers have won two and lost one in the California legislature. But even the loss can be seen as a victory in that it will result in the state having an opt-out model instead of an opt in.
The Financial Information Privacy Act of 2000, sponsored by Sen. Jackie Speier (D-CA), failed to gain the five votes required to advance from the Senate Finance, Investment and International Trade committee to the Judiciary committee.
The bill, which was defeated by a committee vote of 4-2, would have required that financial institutions obtain permission from customers before sharing their personal data with third parties and affiliates.
But the committee did pass, by a 5-0 margin, a revised version of the Financial Privacy Act sponsored by Sen. Tim Leslie (R-CA). At press time, it was scheduled for a hearing by the Judiciary committee.
That bill would allow banks to use data if they gave consumers a chance to opt out.
Meanwhile, the California Assembly Banking and Finance committee failed to move the Consumer Financial Privacy Act sponsored by Judiciary committee chair Sheila Kuehl. The act would have made opt-in permission from bank customers a necessary prerequisite to any data sharing.
