PRIVACY FAILS

The California Assembly Banking and Finance Committee rejected Assembly Bill 1707 on April 24, marking the second time in a month that the state has rejected privacy legislation. Two similar bills, SB 1337 and SB 1372, did not make it past the California Senate Banking, Finance, Investment and International Trade Committee on April 12. The National Association of Independent Insurers (NAII) testified against all three bills, calling the legislation “premature” and at conflict with the existing Federal Fair Credit Reporting Act. The NAII also stated that provisions requiring financial institutions to obtain consumer consent before disclosing personal information or “opt-in” would increase business costs and ultimately lead to increased costs for consumers. The bills could be up for consideration again shortly, due to a motion for reconsideration granted by the committee.