9TH CIRCUIT REVERSES AND REMANDS CALIFORNIA SB1 CASE

On June 20, 2005, the U.S. Court of Appeals for the Ninth Circuit issued an opinion in American Bankers Association v. Lockyer based on the appeal filed July 1, 2004 by the American Bankers Association, the Financial Services Roundtable and the Consumer Bankers Association of the decision of the U.S. District Court for the Eastern District of California. The district court held that the California Financial Information Privacy Act, Cal. Fin. Code §§ 4050 et seq. (commonly known as “SB1”) is not preempted by the federal Fair Credit Reporting Act (“FCRA”). The Ninth Circuit held that the FCRA preempts at least some part of SB1’s affiliate-sharing provisions and, recognizing that there is a possibility that some part of the SB1 provisions may survive preemption, the three-judge panel remanded the case to the district court for further proceedings.

􀂗 Elizabeth Anstaett