September 08, 2003
Washington, DC – In an effort to ensure that California’s recently-enacted consumer privacy act is not preempted by federal law, Congresswoman Barbara Lee (D-CA) today announced that she has submitted an amendment to HR 2622 that would guarantee the implementation of California’s tough consumer protection standards. If made in order by the Republican-controlled Rules Committee, the amendment will be debated on the House floor tomorrow; at the center of that debate will be the question of the prerogative of state and federal financial privacy laws.
The California bill, SB 1, was signed by Governor Gray Davis on August 27, the culmination of four years of lobbying by State Senator Jackie Speiers to protect consumers from having their personal information shared between affiliates of a financial institution. One newspaper last year estimated that the banking industry spent $20 million in 2002 to defeat the bill.
In spite of enormous public support, the California law stands to be preempted. Lee’s amendment would not only permit the implementation of SB 1, but it would use California’s strong consumer protections as a benchmark by which other states could enact their own laws. According to Lee’s amendment, laws of other states that are similar to SB1 would be exempt from the federal preemption.
Lee said, “It is important not only that we preserve and protect California’s tough financial privacy provisions, but that we offer the opportunity for other states to enact similar consumer protections that Californians will now enjoy. My amendment will do both.”
###
Congresswoman Barbara Lee to Introduce Financial Privacy Amendment to So-Called Fair and Accurate Credit Transactions Act
Lee-Sherman Amendment Would Enable California’s Financial Information Privacy Act to be Implemented
Washington, DC – In an effort to ensure that California’s recently-enacted consumer privacy act is not preempted by federal law, Congresswoman Barbara Lee (D-CA) today announced that she has submitted an amendment to HR 2622 that would guarantee the implementation of California’s tough consumer protection standards. If made in order by the Republican-controlled Rules Committee, the amendment will be debated on the House floor tomorrow; at the center of that debate will be the question of the prerogative of state and federal financial privacy laws.
The California bill, SB 1, was signed by Governor Gray Davis on August 27, the culmination of four years of lobbying by State Senator Jackie Speiers to protect consumers from having their personal information shared between affiliates of a financial institution. One newspaper last year estimated that the banking industry spent $20 million in 2002 to defeat the bill.
In spite of enormous public support, the California law stands to be preempted. Lee’s amendment would not only permit the implementation of SB 1, but it would use California’s strong consumer protections as a benchmark by which other states could enact their own laws. According to Lee’s amendment, laws of other states that are similar to SB1 would be exempt from the federal preemption.
Lee said, “It is important not only that we preserve and protect California’s tough financial privacy provisions, but that we offer the opportunity for other states to enact similar consumer protections that Californians will now enjoy. My amendment will do both.”
###