WASHINGTON A controversial privacy bill passed the California State Assemblys Judiciary Committee by a 7-3 vote Tuesday night, leaving the Appropriations Committee as the only barrier to debate on the legislation by the full chamber.
The bill would let businesses such as banks and insurers share a customers personal data with third parties only if they get specific permission to do so from the customer. It is widely opposed by the financial services industry because it goes much further than federal law in protecting privacy. The Gramm-Leach-Bliley Act of 1999 requires that companies allow consumers to opt out of information-sharing arrangements, which lets companies proceed with data transfers unless customers request otherwise.
The legislation is expected to go before the Assembly Appropriations Committee as early as next week.