House of Representatives

HB 2477

mortgage lending; loan originators; education

Sponsors: May

dpa S/E	Committee on Banking and Insurance
x	Caucus and COW	This bill as introduced contains Appropriation and PROP 108 clauses.
	As Passed the House

HB 2477 establishes education criteria for loan originators and continuing education criteria for mortgage bankers and mortgage brokers. HB 2477 creates a continuing education review committee and prescribes the rules and regulations of the committee.

HB 2477 contains a proposed strike-everything amendment on consumer information privacy. The proposed strike-everything amendment does not contain appropriation and Prop. 108 clauses.

Provisions

· Defines affiliate, consumer or customer, consumer-requested purpose, information custodian, marketing, personal information and sensitive information.

· Permits an information custodian to require from a consumer information reasonably necessary for the business relationship.

· Requires that the information custodian inform the consumer as to which information is optional.

· Requires that the information custodian have a consumer privacy policy that discloses the policies and practices of the information custodian regarding the use of consumer information.

· Requires that the consumer privacy policy provide a reasonable process for consumers to access their personal and sensitive information and/or correct inaccurate information.

· Requires that the information custodian disclose its consumer privacy policy to each customer within 60 days after the effective date of this chapter and within 30 days to each prospective customer.

· Requires that the information custodian disclose its consumer privacy policy at the time a new customer enters into a business relationship with the information custodian.

· Authorizes the information custodian to transfer information for a purpose other than a consumer-requested purpose if the custodian has informed the consumer that he/she may choose not to receive marketing information or have his/her personal information shared.

· Upon request of the consumer not to receive marketing information, the custodian is required to stop marketing to the consumer within 60 days. A person may not bring an action against an information custodian for violation of this section unless the person sends written notice to the custodian informing him/her of the violation and the custodian repeats the same violation.

· Upon request of the consumer to not share personal information, the custodian is required to stop transferring the consumer’s personal information within 30 days.

· Establishes exceptions to the personal information and sensitive information disclosure requirements.

· Prohibits an information custodian from disclosing sensitive information to a third party unless the consumer receives written notification that the information will be disclosed and the consumer affirmatively consents.

· Prohibits any third party that obtains personal or sensitive information from an information custodian from transferring the information for any reason other than the original purpose for which the information was shared.

· Prior to transferring personal or sensitive information, the information custodian is required to enter into a written agreement with the third party. The written agreement shall require that the information be kept confidential and the information be used for the original purpose for which the information has been shared.

· An aggrieved person may file a civil action in superior court and receive up to $500 or actual damages, whichever is greater. Upon demonstration that the violation was willful, the court may award treble damages.

· Authorizes the Attorney General to investigate and take appropriate action for any act that is in violation of this Article.

· Contains a legislative intent clause.

The strike-everything amendment was adopted in the Banking and Insurance Committee with no additional provisions.

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44th Legislature Analyst Initials _______

Second Regular Session February 11, 2000

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