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North Dakotans vote to take back privacy.


In June, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N).  voters became the first in the nation to decide whether financial institutions should be allowed to sell customer information without the customer's written permission--and they answered with a resounding re·sound  
v. re·sound·ed, re·sound·ing, re·sounds

v.intr.
1. To be filled with sound; reverberate: The schoolyard resounded with the laughter of children.

2.
 "No" vote.

In North Dakota's statewide referendum, nearly 75 percent of the votes were to repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law.

The revocation of the law can either be done through an express repeal
 a July 2001 state law (Senate Bill 2191) that made it easier for financial institutions to sell their private data to outside companies without getting written permission from consumers. As a result of the vote, North Dakota now will require financial institutions to get written permission from consumers prior to selling their data.

The issue arose because as part of a general overhaul of banking laws in 1999, Congress allowed financial institutions to share data without obtaining consumer permission. However, that law left room for individual states to impose stricter rules. Lawmakers in a few states, including Vermont, Alaska, Connecticut, and Illinois, have retained strict opt-in rules, enabling consumers to choose whether or not they wanted their information shared or sold.

Under the basic federal privacy protections in place in most states, financial institutions send out descriptions of their privacy policies annually and give customers an opportunity to opt-out of having their information shared. The onus is then on consumers to watch their mail, fill out a form for each financial institution, and return the forms stating that they don't want their bank to sell their private data.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 The New York Times, the New York Times, The

Morning daily newspaper, long the U.S. newspaper of record. From its establishment in 1851 it has aimed to avoid sensationalism and to appeal to cultured, intellectual readers.
 American Civil Liberties Union American Civil Liberties Union (ACLU), nonpartisan organization devoted to the preservation and extension of the basic rights set forth in the U.S. Constitution.  (ACLU ACLU: see American Civil Liberties Union. ) contributed $25,000 to help North Dakota campaign for stricter privacy rules. Privacy advocates say the North Dakota decision was important: The defeat of the North Dakota law could spur lawmakers in other states to approve stronger privacy rules.

Evan Hendricks, editor of the Privacy Times newsletter, said the "no" decision was "huge."

"It's the first time Americans have had a chance to vote (on the issue)," he said. "I think it's going to lead to petition drives in other states."
COPYRIGHT 2002 Association of Records Managers & Administrators (ARMA)
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:from financial institutions
Publication:Information Management Journal
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2002
Words:330
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