State Financial Regulators Seek to Retain State Enforcement Role in Data Security Legislation

WASHINGTON, D.C. (August 16, 2006)  – Groups representing state financial services regulators today announced their strong support of preserving the role of states in enforcement of the law in any federal data security legislation that might be enacted.

The Conference of State Bank Supervisors (CSBS) joined with the National Association of State Credit Union Supervisors (NASCUS) and the North American Securities Administrators Association (NASAA) in sending letters to House leadership voicing their support of enforcement provisions in the original House Energy and Commerce Committee’s Data Accountability and Trust Act (H.R. 4127).

“We strongly believe that any bill dealing with data security breaches should preserve the state enforcement of the law as it does in the original version of the Energy and Commerce’s bill, H.R. 4127,” the jointly-signed letter said.

If Congress should decide to preempt state law, the groups suggest the bill contain “high standards ensuring a strong national security breach notification and a security freeze law such that consumers are not deprived of the protections that state laws provide.”

“In addition to being at the forefront of developing standards and triggers for disclosure of data security breaches, the states have also had a long history of partnering with the federal government in enforcement of federal standards relating to protecting personal information,” the three organizations stated in letters to the Speaker of the House Dennis Hastert (R-Ill.), House Minority Whip Steny Hoyer (D-Md.), House Majority Leader John Boehner (R-Ohio), and House Minority Leader Nancy Pelosi (D-Cal.).

Click here to download a copy of the correspondence.

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2006 Headlines, Newsroom