Cal. CU league announces support for data security bill

May 14, 2015

SACRAMENTO, Calif. (5/14/15)--The California Credit Union League announced its support this week for Assembly Bill 83, a measure to require businesses to ratchet up data security standards to protect consumer personal information using “reasonable security procedures and practices.”

The bill was authored by Assemblyman Mike Gatto (D-Glendale).

Clearly defining a set of security standards, the league said, would create a much higher compliance threshold for retailers and other businesses in California compared with current state law, which offers no definition (CU Weekly May 12).

“This legislation is the first step in addressing the need for tougher data security standards for retailers, and is one of the three fundamental elements of data security the leagues have advocated for in the state Legislature,” said Rodney Wilson, league senior legislative advocate (CU Weekly).

The bill, which does not apply to financial institutions, was recently approved in the state Assembly by an overwhelming majority, and awaits its first committee hearing in the Senate.

Data protection and cybersecurity are top advocacy issues on both the state and federal levels for CUNA, state credit union leagues and credit unions, and they continue to stress that merchants must be held to the same standards as financial institutions in protecting consumer data.

CUNA backs U.S. House Bill H.R. 2205, introduced by Reps. Randy Neugebauer (R-Texas) and John Carney (D-Del.). It would establish a process for companies of all sizes to follow in order to secure consumer data.

CUNA also strongly supports S. 961, introduced by Sens. Tom Carper (D-Del.) and Roy Blunt (R-Mo.), which would set standards for entities that handle consumers' personal financial information, while outlining procedures that must be followed in the event of a data breach.

CUNA has launched a grassroots Action Alert urging support of both bills.