WASHINGTON–The House Financial Services Committee has voted 46-9 in favor of HR 2205, the Data Security Act of 2015.
Sponsored by Rep. Randy Neugenbauer (R-TX) and Rep. John Carney (D-DE), the bill requires individuals, corporations, or other non-government entities that access, maintain, communicate, or handle sensitive financial account information or nonpublic personal information to implement an information security program and to notify consumers, federal law enforcement, appropriate administrative agencies, payment card networks, and consumer reporting agencies of certain data breaches of unencrypted sensitive information likely to cause identity theft or fraudulent transactions on consumer financial accounts.
The legislation has the backing of both credit union trade groups in part due to its requirements around third-party service providers and notification procedures in the event of a breach.
““NAFCU and its members thank Chairman Jeb Hensarling, the committee and the bills’ sponsors for their leadership and commitment to advancing these important measures,” said NAFCU President and CEO Dan Berger.
“The CUNA-backed Data Security Act will prevent breaches by providing a higher standard for all who accept payments, better notification procedures and a federal law that will replace the cumbersome patchwork of state laws,” said CUNA CEO Jim Nussle in a statement. “We thank the members of the Committee who voted in favor of protecting the American consumer, and urge House leadership to quickly bring the legislation to the House floor. Until retailers adhere to the same standards that financial institutions are beholden to, millions of consumers will remain at risk.”