DALLAS - The near-unanimous opinion of those interviewed: action on the state level is helpful in building momentum towards national data security legislation, but much more work must be done before Congress shakes off inertia. But as consumers seemingly cannot open a newspaper or watch TV news without viewing a report on a data breach once a week is putting pressure on Congress to act, California CUL's Melissa Ameluxen said. Another assist: when lawmakers themselves are affected by a breach, as was the case with at least two California legislators, she said. Texas CUL's Buddy Gill agreed: "If there is another huge breach, or several more breaches that will put a match to the fuel and lawmakers will say 'enough is enough' and do something about it."
The CU Association of Oregon's Leavitt said the goal of passing legislation in the states not only is to aid CUs and consumers in that state, it is to put pressure on Congress. "There needs to be more of a national approach to combating identity theft," she said. "Some of the provisions in our bill set the standards for state-level data security legislation. And that's the nature of how laws work-states start passing laws and eventually, Congress acts."
The Washington CU League's Stacey Augustine likewise said: "National data security legislation is something Congress needs to look at. The states are a breeding ground for issues like this. Some of the big banks have already pushed back on this legislation because of their concern over having to comply with different data breach reimbursement laws in different states, and that is understandable. But unless states venture into this area, Congress won't pick it up. If enough states show interest, Congress will get involved."
Gill asserted, "There is no question California pushing data security legislation a second time helps the overall argument," adding, "When states are moving in concert it helps get Congress' attention. This is still a top issue for us. At the most recent legislative session we testified and we expect legislation will be introduced at the next session."(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
