CCUL reverses position, supports revised privacy measure

SACRAMENTO, Calif. – Privacy legislation which has been debated in the California legislature for nearly two years received a major push forward after the California Credit Union League reversed its position and came out in support of a heavily amended measure allowing members to “opt-out” of sharing personal and financial information. A news conference was held here Aug. 19 to garner support for SB 773 authored by Democratic state Sen. Jackie Speier and now co-authored by Democratic Assemblyman Joe Nation. Among those speaking in favor of the proposed California Financial Information Privacy Act was Frank Michael, chief executive officer of Allied Credit Union in Stockton, Calif. “I’m extremely pleased that Assemblyman Nation has agreed to become a joint author of this legislation and equally excited that the Credit Union League, representing over 9 million Californians, are supporting the bill,” Speier told the news conference. “Today is a big day for consumer privacy in California.” Behind-the-scenes negotiations on the bill resulted in the league’s Government Relations Committee voting to support the new version, said to contain some 83 amendments. As now proposed, the bill would allow credit unions to share personal and financial information about members with their affiliates, and with non-affiliated third-party companies with whom they have contracts, unless members opted out. The bill would also require credit unions to obtain permission – an “opt-in” provision – from members before their information could be shared with any third-party company with which the credit union did not have a contract. Opponents of the measure include Citigroup and Wells Fargo. Speier said close to $10 million has been spent by various groups in lobbying efforts against the measure. The bill faces tough scrutiny in the Assembly Banking and Finance Committee. It then must go to the full Assembly. If approved there, it would go to Gov. Gray Davis where it would face an uncertain fate. The amended bill comes with less than two weeks left in the legislative session. The Legislature is scheduled to adjourn Aug. 31. [email protected]