Text: HF00284 Text: HF00286 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 546A.1 DISCLOSURE OF NONPUBLIC
1 2 PERSONAL INFORMATION TO NONAFFILIATED THIRD PARTIES – OPT-IN
1 3 REQUIRED.
1 4 1. For purposes of this section:
1 5 a. "Affiliate" means any company that controls, is
1 6 controlled by, or is under common control with another
1 7 company, as defined in 15 U.S.C. } 6809.
1 8 b. "Consumer" means customer or other person obtaining or
1 9 utilizing any service of a financial institution.
1 10 c. "Financial institution" means any person that engages
1 11 in financial activities as defined in 15 U.S.C. } 6809.
1 12 d. "Nonaffiliated third party" means any entity that is
1 13 not an affiliate of or is related by common ownership or
1 14 control, as defined in 15 U.S.C. } 6809.
1 15 e. "Nonpublic personal information" means personally
1 16 identifiable financial information as defined in 15 U.S.C. }
1 17 6809.
1 18 2. A financial institution shall not disclose the
1 19 nonpublic personal information of an Iowa resident to a
1 20 nonaffiliated third party unless such financial institution
1 21 does both of the following on an annual basis:
1 22 a. The financial institution clearly and conspicuously
1 23 discloses to the consumer in writing what nonpublic personal
1 24 information the financial institution desires or intends to
1 25 disclose to a nonaffiliated third party.
1 26 b. The financial institution obtains a written consent
1 27 from the consumer to the disclosure of the information, signed
1 28 and dated in the consumer's handwriting.
1 29 3. The consumer may revoke the consent by written request,
1 30 signed and dated in the consumer's handwriting, at any time.
1 31 The revocation shall be given effect immediately upon receipt
1 32 by the financial institution.
1 33 4. The chief administrative office of each division of the
1 34 department of commerce may adopt rules pursuant to chapter 17A
1 35 as necessary to implement and administer this section.
2 1 EXPLANATION
2 2 This bill provides that financial institutions, which under
2 3 the federal definition include insurance companies, shall be
2 4 required to obtain signed and dated written annual consent
2 5 from consumers before they are allowed to share a customer's
2 6 personally identifiable information with nonaffiliated third
2 7 parties. This bill specifically provides a more protective
2 8 "opt-in" standard for consumers relative to personal
2 9 information, as compared to the "opt-out" standard enacted as
2 10 part of the federal Gramm-Leach-Bliley Act (also known as the
2 11 Financial Services Modernization Act of 1999, and Pub. L. No.
2 12 106-102), which requires consumers to notify financial
2 13 institutions if they do not wish to have their information
2 14 shared with nonaffiliated third parties. The Gramm-Leach-
2 15 Bliley Act contains a provision that provides that state
2 16 statutes that give greater protection to consumers than the
2 17 provisions of Gramm-Leach-Bliley Act will not be considered to
2 18 be inconsistent with the federal Act.
2 19 This bill also provides that the consumer may revoke the
2 20 consent by written request, signed and dated in the consumer's
2 21 handwriting, at any time. The revocation shall be given
2 22 effect immediately upon receipt by the financial institution.
2 23 The divisions of the department of commerce are given the
2 24 authority to adopt rules pursuant to Code chapter 17A as
2 25 necessary to implement and administer the new Code section.
2 26 LSB 1859YH 79
2 27 jj/cf/24
Text: HF00284 Text: HF00286 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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