BILL NUMBER: ACR 125	CHAPTERED
	BILL TEXT

	RESOLUTION CHAPTER  167
	FILED WITH SECRETARY OF STATE  SEPTEMBER 16, 2002
	ADOPTED IN ASSEMBLY  AUGUST 22, 2002
	ADOPTED IN SENATE  AUGUST 21, 2002
	AMENDED IN SENATE  AUGUST 12, 2002
	AMENDED IN ASSEMBLY  MAY 13, 2002
	AMENDED IN ASSEMBLY  FEBRUARY 26, 2002

INTRODUCED BY   Assembly Member Papan

                        JANUARY 7, 2002

   Assembly Concurrent Resolution No. 125--Relative to the protection
of personal information.


	LEGISLATIVE COUNSEL'S DIGEST


   ACR 125, Papan.  Relative to the protection of personal
information.
   This measure would request and authorize the California Law
Revision Commission to study, report on, and prepare recommended
legislation concerning the protection of personal information
relating to or arising out of financial transactions if funding is
provided in the 2002-03 Budget Act.  The measure would direct that
the recommended legislation address specified objectives.




   WHEREAS, The Financial Services Modernization Act, commonly known
as the Gramm-Leach-Bliley Act, became law in 1999, and reformed the
laws that define and regulate the structure of the financial services
industry; and
   WHEREAS, The Gramm-Leach-Bliley Act greatly liberalized the ways
that financial institutions were permitted to share nonpublic
personal information, and has, in turn, highlighted the extent to
which various entities buy, sell, and use nonpublic personal
information; and
   WHEREAS, The Gramm-Leach-Bliley Act does not provide a
comprehensive framework by which citizens may control access to their
nonpublic personal information, but instead explicitly permits the
states to enact laws that provide for greater protection of the
privacy of nonpublic personal information; and
   WHEREAS, The citizens of California have indicated their great
concern with this issue, and have made clear their overwhelming
desire to have control over the disclosure of their nonpublic
personal information; now, therefore, be it
   Resolved by the Assembly of the State of California, the Senate
thereof concurring, That the Legislature authorizes and requests that
the California Law Revision Commission study, report on, and prepare
recommended legislation by January 1, 2005, if funding is provided
in the 2002-03 Budget Act specifically for this purpose, concerning
the protection of personal information relating to, or arising out
of, financial transactions, and that this legislation shall
accomplish the following objectives:
   (a) Provide consumers with notice and the opportunity to protect
and control the dissemination of their personal information by, and
between, companies and their affiliates and non-affiliated third
parties;
   (b) Authorize and direct affected regulators to prepare
regulations that will recognize the inviolability and confidentiality
of a consumer's personal information and the legitimate needs of
entities that lawfully use the information to engage in commerce at
the behest of consumers or for their benefit;
   (c) Assure that regulated entities will be treated in a manner so
that, regardless of size, an individual business, holding company, or
affiliate will not enjoy any greater advantage or suffer any burden
that is greater than any other regulated entity;
   (d) Be compatible with, and withstand any preemption by, the
Gramm-Leach-Bliley Act or the federal Fair Credit Reporting Act;
   (e) Provide for civil remedies and administrative and civil
penalties for a violation of the recommended legislation, including,
but not limited to, attorney's fees, costs, actual and compensatory
damages, and exemplary damages, including, but not limited to, relief
as provided pursuant to Article 3 (commencing with Section 3294) of
Chapter 1 of Title 2 of Part 1 of Division 4 of the Civil Code, and
as provided in unfair business practices actions brought under
Article 1 (commencing with Section 17000) of Chapter 4 of Part 2 of
Division 7 of the Business and Professions Code; and be it further
   Resolved, That it is not the intent of the Legislature that
enactment of this measure restrict the introduction, passage, or
operation of legislation relating to the financial service industry
or related privacy issues; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the California Law Revision Commission and to the
author for appropriate distribution.