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TO: BOARD OF SUPERVISORS Contra
FROM: Silvano B. Marchesi, County Counsel
By: Kelly M. Flanagan, Deputy County Counsel ' Cost
DATE: January 20, 2004 r� �' CountySUBJECT: Rescission of Ordinance Regulating Disclosure of
ConfidentialConsumer Information by Financial Institutions
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION: INTRODUCE Ordinance 2004-01, repealing Chapter 518-4 of Title 5 of the
County Ordinance Cade, WAIVE reading, and FIX January 27, 2004 as the date for adoption.
BACKGROUND: In 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. Subsequently, Bank of America and Wells Fargo,
along with several of their respective affiliated companies, commenced litigation against Contra
Costa County (as well as San Mateo County and Daly City), seeking to have the local financial
privacy ordinances invalidated. In August 2003, the federal district court upheld the local
ordinances in part and invalidated them in part. Thereafter, SB 1, which regulates financial privacy
on a state-wide basis, was passed by the California Legislature and signed into law by the
Governor, and is now codified in the California Financial Code. SB 1, as codified, becomes
effective on July 1, 2004, and expressly preempts local ordinances. Given the success in achieving
state-wide privacy protection, and the preemption of local ordinances contained therein, it makes
sense to rescind the local ordinance.
FISCAL IMPACT: None.
CONTINUED ON ATTACHMENT: IVES SIGNATURE:
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, RECOMMENDATION OF COUNTYADMINISTRATOR
! RECOMMENDATION OF BOARD COMMITTEEw-__�____�
✓APPROVE OTHER
SIGNATURE(S):
_-- . �_��_–__._—___ __, __.� _-. -- -ACTION OF
BOARD ON ; It APPROVE AS RECOMMENDED i ��–OTHER –+ ___–_–_w__–_–_
VOTE OF SUPERVISORS I HERESYCERTIFY THAT THIS IS A TRUE
AND CORRECT COPYOF AN ACTION TAKEN
_&NANIMOUS(ABSENT # ' ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
f
ATTESTED &Lf Gs V
CONTACT:Kelly Flanagan(835-1849) JOHN SWEET CLERK O THE B04RD OF
cc: County Administrator SUPERVISORS AND COUNTYADMINISTRATOR
BY_ ^ ! DEPUTY
HAS of ATInancial Privacy Raclaeion Stuff Report v+pd
ORDINANCE NO. 2004-01
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 1. Chapter 518-4, consisting of Sections 518-4.202 through 518-4.614, of Title 5 of the
Contra Costa County Ordinance Code, is hereby rescinded in its entirety.
SECTION 11. EFFECTIVE DATE. This ordinance shall be effective 30 daysafter 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 ON by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: JOHN SWEETEN, Clerk of the
Board of Supervisors and County Board Chair
Administrator
By [SEAL]
Deputy
HHB ofATinancial Privacy Ord 2004-0l.wpd
ORDINANCE NO. 2004-01
1