California CUs Urged to Take Action on SB 1121

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Today, the California State Assembly Privacy and Consumer Protection Committee will hear Senate Bill 1121, authored by Sen. Bill Dodd (D-Napa).

This means credit unions are one step closer to receiving a clarified Gramm-Leach-Bliley Act (GLBA) exemption from the new California privacy law that was approved in June 2018. If the bill is approved by the Assembly Privacy Committee today, it will then need approval from the Assembly Appropriations Committee, the Assembly Floor, Senate Judiciary Committee and the Senate Floor all by this coming Friday (Aug. 31).

There is still a long way to go to receive approval on this bill, and credit unions in California are fighting for votes! The California Credit Union League has also issued a call to action through Connect For The Cause in support of SB 1121—and we need your support. Click here to contact your state legislators today! Your voice leads to credit union success.

SB 1121 is the clean-up bill to Assembly Bill 375, which created the California Consumer Privacy Act of 2018. AB 375 was the result of a deal to remove the privacy initiative from the November ballot and was signed into law by Governor Jerry Brown on June 28. During the rushed process of approving this bill, the League expressed concerns with AB 375 and the potential issues the new law creates for credit unions and the availability of affordable financial products for their members. AB 375 included a GLBA exemption, but it is effectively meaningless given the way it is written and needs to be clarified.

During the process of approving AB 375, there was an agreement that a clean-up bill would be run in August 2018. SB 1121 is now that clean-up bill and includes an amendment to clarify the GLBA exemption.

This amendment is important because credit unions already have to comply with strict privacy protections under GLBA and the California Financial Information Privacy Act (CFIPA). New, duplicative and problematic requirements as introduced under AB 375 will result in higher administrative costs for credit unions, leading to higher loan rates, reduced services and products, consumer inconvenience, and longer wait times for loan processing.

For the entire text of SB 1121, please click here.

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