Congress: First steps on data security bill

The House Financial Services Committee just concluded a mark-up of H.R. 6743, a bill designed to create a uniform national standard for breach notification limited to financial services providers. While data security standards are required under the Gramm-Leach-Bliley Act (GLBA), the author, Rep. Blaine Luetkemeyer (R-MO) contended that the multitude of state breach notification laws […]

The House Financial Services Committee just concluded a mark-up of H.R. 6743, a bill designed to create a uniform national standard for breach notification limited to financial services providers. While data security standards are required under the Gramm-Leach-Bliley Act (GLBA), the author, Rep. Blaine Luetkemeyer (R-MO) contended that the multitude of state breach notification laws have created a confusing practice for financial institutions. He stated his purpose is to extend notification requirements to non-depositories such as Equifax.

During the debate, both the author and Ranking Democrat (Rep. Maxine Waters) contended that this legislation is far from a comprehensive solution to resolve the plague of data breaches – however because of jurisdictional issues, the committee could not include retailers. Rep. Waters attempted to offer an amendment shifting the nature of the preemption language from a national “ceiling” to a “floor” which would allow states to offer stronger notification standards if they opted. The amendment failed on a party line vote. The bill passed on party lines.

Credit unions continue to seek amendments for a comprehensive solution to address data breaches, and will pursue options as H.R. 6743 advances to the House Floor.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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