Web Privacy Bill Goes To California Gov.

Web Privacy Bill Goes To California Gov.

By Jim Connolly, NU Life-Health Senior Editor

NU Online News Service, Sept. 6, 4:06 p.m. EST?A Web privacy measure has been passed by the California legislature and sent to Gov. Gray Davis for his signature.

The legislature, which ended its session Aug. 31, also killed a major privacy bill opposed by insurers.

Left for dead was the controversial Senate Bill 773, a financial privacy bill sponsored by State Sen. Jackie Speier, D-San Mateo and Assemblyman Joe Nation, D-San Rafael. The measure expired in the final hours of the session.

The bill's definition of an affiliate, and the opt-out provision that it would require, concerned insurers. For companies considered non-affiliates, an opt-in would have been required.

In the final hours of the session, the Senate refused to agree to changes made in the Assembly, and the Assembly voted the bill down 36 to 34. Forty-one votes were needed to pass the bill.

Assembly Bill 2297, addressing privacy policies on Web sites, was passed by a 47 to 28 vote. It requires privacy policies to be posted and requires that notification be given if there is a breach of security on a Web site and confidential consumer information is accessed.

Sen. Speier's measure, which failed, was opposed by both life and property-casualty groups including the American Council of Life Insurers, Washington, and the Alliance of American Insurers, Downers Grove, Ill.

It had support from consumer groups and credit unions represented by the California Credit Union League, Rancho Cucamonga. CCUL supported an opt-out provision for third parties that would make it easier for small financial institutions to market products.

Opt-outs require a consumer to say that they do not want information shared. Opt-ins require a company to get a consumer's consent before information can be shared.