WASHINGTON - The House Financial Services Committee approved a data security bill Tuesday that would require all companies that handle sensitive financial data to have similar security protections and notification requirements as financial institutions.
The bill, sponsored by Reps. Randy Neugebauer, R-Tex., and John Carney, D-Dela., is designed to ensure that all entities that handle sensitive financial data have a robust process in place to protect consumer data. It was approved by a 46-9 vote.
Credit unions and banks alike lined up to laud the legislation that was introduced by Reps. Randy Neugebauer, R-Texas, and John Carney, D-Del..
"The House Financial Services Committee voted today to protect consumers by strengthening our country's data security laws," said CUNA CEO Jim Nussle, noting that the Data Security Act is designed to prevent breaches by holding all firms that handle payments to high standards. "Until retailers adhere to the same standards that financial institutions are beholden to, millions of consumers will remain at risk."
A similar data security bill is pending in the Senate.
The House committee also approved the National Credit Union Administration Budget Transparency Act. Introduced by Reps. Mick Mulvaney, R-S.C., and Kyrsten Sinema, D-Ariz., the bill would require NCUA to publish a draft of its budget in the Federal Register and hold a public hearing to garner comments
"NAFCU and its members thank Chairman Jeb Hensarling, the committee and the bills' sponsors for their leadership and commitment to advancing these important measures," said Berger. "We look forward to continuing our work with Congress to keep these two vital pieces of legislation on track to final passage."
The House Financial Services Committee also approved a bill that would direct the Federal Housing Administration to relax restrictions on its condominium loan program.
Sponsored by Rep. Blaine Luetkemeyer, R-Mo., the bill would streamline FHA's certification requirements for condo projects, allow more commercial space in FHA-approved condo buildings and relax owner-occupancy requirements.
Supporters of the condo bill claim it would open up homeownership opportunities for first-time buyers and urban families. The bill would also provide the Rural Housing Service with direct endorsement authority for the first time. Currently, RHS officials must approve each loan package. The committee approved the legislation by a 44-10 vote
