HomeMy WebLinkAboutMINUTES - 02112003 - C36 TO: BOARD OF SUPERVISORS Contra
FROM: Silvano B. Marches!, County Counsel
By: Kelly M. Flanagan, Deputy County Counsel ';
Costa
DATE: February 11, 2003 County
SUBJECT: Ordinance Regulating Disclosure of f�
g g
Confidential Consumer Information by Financial Institutions
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION: INTRODUCE ordinance amending Chapter 518-4 of the County Ordinance
Code, regulating disclosure of confidential consumer information by financial institutions, to clarify
the manner and frequency with which consumer notices must be sent and to correct typographical
errors, WAIVE reading, and FIX February 25, 2003 as the date for adoption.
BACKGROUND: On September 24, 2002, the Board of Supervisors unanimously adopted
Ordinance No. 2002-30, adding Chapter 518-4 to the County Ordinance Code, regulating disclosure
of confidential consumer information by financial institutions. On November 5, 2002, the Board of
Supervisors unanimously adopted Ordinance No. 2002-44, which amended the effective date of
Ordinance No. 2002-30 to September 1, 2003. San Mateo County and Daly City similarly amended
theirordinances. Staff has recently learned that San Mateo County and Daly City also amended
their'ordinances to clarify the manner in which notices could be sent to consumers and the
frequency with which such notices must be sent. Those amendments served to remove an
argument that the banks have been using in the ongoing, and now consolidated, litigation against
Contra Costa County, San Mateo County and Daly City in connection with the banks` claim that the
Ordinances are pre-empted by federal statutes. Staff has also recently discovered some minor
typographical errors in several sections of Chapter 518-4. Adopting this ordinance, and amending
Chapter 518-4 will serve to place Contra Costa County in line with the other defendants in the
ongoing litigation and will correct the typographical errors that have recently been discovered.
CONTINUED ON ATTACHMENT: S SIGNATURE:
_...__._..__.._........._...... --------------------------_--------------._..........--------------------
#,"RECOMMENDATION OF COUNTYADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
,-'APPROVE OTHER
SIGNATURE(S):
..___.____-----_.__ „�!'' � _w_..�.._..___..__..._._._...__...__.__... OF
BOARD ON ° 1 t APPROVE AS RECOMMENDED OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFYTHAT THIS IS A TRUE
AND CORRECT COPYOF AN ACTION TAKEN
�* UNANIMOUS(ABSENT —-) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
A`rES: NOES: SHOWN,
ABSENT: ABSTAIN:
ATTESTED i ` fit
CONTACT:Kelly Flanagan(335-1849) JOHN SWEETEN,Ct RK OF THE BOARD OF
co: County Administrator SUPERVISORS AND OUNTYADMINISTRATOR
r,�f_
BY y I i ,`-"�—,-DEPUTY
HAD of ATimnclpl P`iwcy AMoridment SUN Report.wpd
ORDINANCE NO. 2003-03
PROTECTING CONSUMER FINANCIAL INFORMATION
The Contra Costa County Board of Supervisors ordains as follows (omitting the parenthetical
footnotes from the official text of the enacted or amended provisions of the County Ordinance
Code):
SECTION I. This ordinance amends Section 518-4.604(b)of the County Ordinance Code to
clarify the manner in which notices may be sent to consumers and to correct a typographical
error. This ordinance also adds Section 518-4.604(d)to the County Ordinance Code to clarify
the frequency with which notices must be sent to consumers. This ordinance also amends
Section 518-4.602(b), Section 518-4.604(a), Section 518-4.606(a)and Section 518-4.606(b)to
correct typographical errors.
SECTION II. Section 518-4.604(b)of the County Ordinance Code is amended to read:
"(b) A financial institution shall provide written or electronic notices and
consent acknowledgments required by this ordinance to consumers as separate documents
that are easily identifiable and distinguishable from other documents that otherwise may
be provided to a consumer. A notice provided to a member of a household pursuant to
section 518-602 shall be considered notice to all members of that household unless that
household contains another individual who also has a separate account with the financial
institution. Such notices may be sent to the consumer with other notices required under
the federal Gramm-Leach-Bliley Act," (Orris. 2003-03, §2; 2002-44, §2; 2002-30, §2.)
SECTION III. Subsection(d) is added to Section 518-604 of the County Ordinance Code,to
read:
"(d) The notice required by this section should be issued to the consumer as
frequently as is required by the federal Gramm.-Leach-Bliley Act, 15 U.S.C. Section
6803(a). Unless revoked by the consumer, consent received from a consumer shall, as
described in the notice,be deemed valid until such time as another notice is required to be
sent to the consumer."
SECTION IV. Section 518-4.602(b) of the County Ordinance Code is amended to read:
"(b) Nothing in this chapter shall prohibit a financial institution from marketing
its own products and services or the products and services of others to the financial
institution's own customers,provided no confidential consumer information is disclosed
except as permitted by section 518-4.606." (Ords. 2003-03, §2; 2002-44, §2; 2002-30,
§2.)
SECTION V. Section 518-4.604(a)of the County Ordinance Code is amended to read:
"(a) Nothing in this chapter shall require a financial institution to provide a
written notice to a consumer pursuant to section 518-4.602 if the financial institution does
not disclose confidential consumer information to any nonaffiliated third-party or to any
ORDINANCE NO. 2003-03
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affiliate, except as provided in section 518-4.606." (Ords. 2003-03, §2; 2002-44, §2;
2002-30, §2.)
SECTION VI. Section 518-4.606(a) of the County Ordinance Code is amended to read:
"(a) Section 518-4.602 shall not apply to information that is not personally
identifiable to a particular person." (Orris. 2003-03, §2; 2002-44, §2; 2002-30, §2.)
SECTION VII. Section 518-4.606(b)of the County Ordinance Code is amended to read:
"(b) Section 518-4.602 shall not prohibit the release of confidential consumer
information under the following circumstances:" (Orris. 2003-03, §2;2002-44, §2; 2002-
30, §2.)
SECTION MI. EFFECTIVE DATE. This ordinance shall be effective 30 days after passage,
and within 15 days of passage shall be published once with the names of the supervisors voting
for and against it in the Contra Costa Times, a newspaper published in this County.
PASSED OIT by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: JOHN SWEETEN, Clerk of the
Board of Supervisors and County Board Chair
Administrator
By
Deputy IS Ll
HAB ofATinancial Privacy Ord Amendment No 2,wpd
ORDINANCE NO. 2003-03
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