The California State Assembly overwhelmingly approved a bill Monday that will impose what could be the toughest financial privacy standards in the nation, barring companies from sharing all sorts of personal data from individuals' phone numbers to their bank balances.
The bill, authored by State Sen. Jackie Speier (D-San Francisco), requires insurance companies, banks and other businesses to get customer permission before sharing or selling personal data such as bank balances or credit card activity.
A spokesman for California's Senate leader, John Burton (D-San Francisco), said the bill will likely come up for approval in the Senate for approval on Tuesday, where it is widely expected to pass. If it does, it will go to Gov. Gray Davis, who has already said he'll sign it.
Approval of the bill is a major victory for Speier and privacy advocates, who have worked hard to pass legislation restricting the way large companies share personal data. These efforts have previously been defeated by a strong and organized corporate opposition.
Three bills similar to the one the Assembly passed on Monday have been defeated in recent years. However, a number of banks and other corporate interests decided to drop their opposition this year, as support gained momentum for a ballot initiative imposing even stricter consumer protections.
The bill passed the Assembly on Monday by a 76-1 vote.
"This is the beginning, I believe, of an era when we face the technology world which has access to our information, and say to those who would sell it freely that we will not allow that to happen," said Sen. Hannah-Beth Jackson (D-Santa Barbara). "We will fight every step of the way to retain our privacy and our dignity in our financial matters and in our personal lives."
Speier said that if the new privacy bill becomes law in California, the nation's most populous state, she hopes to see similar rules enacted on a federal level.
