WASHINGTON—In conjunction with its markup of the American Data Privacy and Protection Act, NAFCU has joined with several other organizations in writing to the House Energy and Commerce Subcommittee on Consumer Protection and Commerce expressing concerns over several provisions of the legislation, including that the bill is being “rushed.”
Separately, the House Energy and Commerce subcommittee has passed the Securing and Enabling Commerce Using Remote and Electronic Notarization Act (H.R. 3692) with a unanimous 22-0 vote. CUNA expressed support.
On ADPAA, the subcommittee passed ADPAA by voice vote and it is now headed to the full committee for a vote.
House Energy and Commerce Committee Chairman Frank Pallone (D-NJ), Ranking Member Cathy McMorris Rodgers (R-WA) and Senate Commerce, Science, and Transportation Committee Ranking Member Roger Wicker (R-MS) introduced the bipartisan data privacy legislation earlier this month in an effort to reignite the conversation around the need for comprehensive federal data privacy and security standards, according to NAFCU.
Specific Concerns
In the letter, the groups expressed support for comprehensive federal data privacy standards, but said they have specific concerns around existing data and privacy standards for financial institutions under the Gramm-Leach Bliley Act (GLBA).
In particular, the groups said they are worried over the “overly rushed pace that this legislation is proceeding through the Committee process,” saying it did not allow for “adequate input from stakeholders.”
Citing the carefully structured privacy and data standards under the GLBA, the groups noted that this existing framework creates an “effective and successful balance between strong consumer protections and ensuring that consumer financial transactions take place in a safe and secure environment.”
‘Unambiguous Language’ Needed
However, the legislation in consideration excludes “unambiguous language for financial institutions to understand their exemption from the requirements of the bill,” and is disruptive to the data privacy system already set in place.
“The ADPPA should be amended to broaden the provision to exempt all GLBA regulated institutions to avoid such disruption,” wrote the groups, which also questioned the feasibility of uniform enforcement from state-to-state.
Varying enforcement by private rights of action would only lead to “different interpretations in the law,” the letter suggests.
In addition, the groups, which include the American Bankers Association and the Consumers Bankers Association, further argued that any federal privacy and data standards preempt existing state laws to “avoid inconsistent and duplicative requirements that could potentially disrupt financial transactions and the financial system.”
Undermining the Preemption
While the ADPPA would preempt many state laws, it would also provide many exceptions that undermine the preemption, the organizations told Congress.
“The ADPPA should be amended to create a clear and direct preemption of all state privacy and data protection provisions to prevent the continued patchwork of requirements imposed on companies,” the letter reads.
During the markup, lawmakers also passed the Securing and Enabling Commerce Using Remote and Electronic Notarization (SECURE) Act, in a 22-0 vote, which will provide businesses and consumers the ability to execute critical documents using two-way audiovisual communication.
HR 3692 Moves Forward
Separately, the House Energy and Commerce subcommittee has passed the Securing and Enabling Commerce Using Remote and Electronic Notarization Act (H.R. 3692) with a unanimous 22-0 vote.
The bill would authorize the use of remote online notarization and create national standards and protections for its use.
“We thank the subcommittee for advancing this bipartisan, common-sense legislation,” said CUNA President/CEO Jim Nussle. “This is sound public policy that will help consumers execute and validate transactions through its national standards and consumer protections.”
H.R. 3962 was introduced by Reps. Madeleine Dean (D-PA) and Kelly Armstrong (R-ND) and has more than 90 co-sponsors from both parties, CUNA noted.
The subcommittee also passed the American Data Protection and Privacy Act (H.R. 8152).
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