ABA and 49 state bankers associations today urged the Uniform Law Commission to reject a draft of model state-level legislation on consumer data privacy that does not provide sufficient exemptions for banks, which are already subject to stringent federal data security standards and includes the potential for banks to be subject to lawsuits.
The associations wrote that state privacy legislation has and should continue to recognize existing federal frameworks crafted by Congress and the strong privacy and data security standards already in place for the financial sector under the [Gramm-Leach-Bliley Act] and other financial privacy laws.
The final draft contains several problematic provisions the associations said—adding that “we regretfully cannot support the act in its current form should it be introduced in the states and urge its disapproval by the commission.”
If passed, the proposed legislation would be eligible for introduction in the states with the backing of the ULC.
