ALBANY, N.Y. (11/18/14)--The Credit Union Association of New York (CUANY) on Friday monitored a public hearing facilitated by the New York Assembly Committee on Consumer Affairs and Protection.
The committee called the hearing in an effort to address data breaches and data security concerns, and association staff monitored the hearing to ensure that credit union interests were represented (The Point Nov. 17).
Consumer Affairs and Protection Committee Chairman Jeffrey Dinowitz (D-Bronx) has proposed legislation mandating that businesses in New York develop policies and procedures to deter data breaches.
"The session doesn't really start in earnest again until January, so this hearing really served notice that the state legislature is going to be taking a hard look at come 2015, which was something we had anticipated," Mike Lanotte, CUANY general counsel/senior vice president of association services, told News Now.
"The thing to keep in mind is there is not a Senate companion bill at this time, so this is really the first round as far as putting legislation out there for discussion purposes and working toward refinements in the language," Lanotte said, adding, "The sponsor is clearly working toward the goal of deterring data breaches through higher security standards."
Members of the committee noted that the size and scale of the breaches at major retailers have left consumers vulnerable to identity theft and fraud, and skeptical as to whether retailers are capable of protecting their personal data. Committee members were hoping to further understand how the breaches occur and what could be done to protect consumers from a legislative perspective.
"The committee's concern, which is one we share, is that in order to protect New York residents, merchants have to do more to protect the data and to prevent the breaches from occurring," Lanotte said.
The association will continue to assess the impact that any data breach legislation will have on the state's credit unions.