WASHINGTON The California Assemblys banking committee is expected to vote late today on a bill that would require financial companies to get customer permission before sharing confidential information with affiliates or third parties.
The bill, sponsored by state Sen. Jackie Speier, D-San Francisco, passed the state Senate on June 4.
This opt-in bill would go well beyond federal privacy protections, which put the onus on customers to opt out of information sharing and they only have that option when data are shared with third parties.
A similar bill was defeated by one vote last month in the Assembly committee, but industry representatives are worried that it might pass this time. A vote on the bill was delayed last week to allow the legislations sponsors to reach a compromise with some of its opponents.
James L. Pitts, executive director of the Financial Services Coordinating Councils privacy project, said he thought the bills chances of passing in committee are better than 50-50. Mr. Pitts and other industry representatives said they worry that if an opt-in bill passes in California, it could set a precedent for other states, or even for additional federal legislation.
