SACRAMENTO, Calif. – Legislators and Gov. Gray Davis’ office continued to spar last week over provisions of a heavily lobbied privacy bill with both sides claiming their proposal would best protect consumers. With the Legislature scheduled to adjourn for the year on Sept. 14, it was unclear whether the bill would make it out of committee for a vote. At press time, the measure was scheduled to be discussed Sept. 6 by the Assembly Appropriations Committee, where it had been on hold. The California Credit Union League has come out in support of the proposal being advanced by Gov. Gray Davis, saying it was a “much more workable and sensible document overall.” Opponents of the governor’s plan say it gives too many concessions to businesses and significantly waters down SB 773 proposed by State Sen. Jackie Speier. The league’s major concern is how the legislation treats non-affiliated third parties and whether consumers have to “opt-in” or “opt-out” to having their personal information shared. Davis’ bill on third-party marketing offers an opt-out approach while the Speier’s bill requires consumers to opt-in, requiring financial institutions and other businesses to get a consumer’s permission before sharing their information with other businesses. “If we don’t get a level playing field on the third-party marketing, it’s going to be a huge disadvantage to the smaller institutions,” said the league’s Bob Arnould.

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