The Conference of State Bank Supervisors (CSBS) expressed its opposition to two different bills making their way through Congress.
One of the bills is the Consumer Information Notification Requirement Act (H.R. 6743), which would prevent state regulators from enforcing state data breach notification laws. In a letter to the leadership of the House Financial Service, CSBS President and CEO John Ryan said the bill would abandon the regulatory balance established by the Gramm-Leach-Bliley law. Ryan said it “establishes a floor for data breach and data security laws and expressly reserves the right of states to enact more stringent data breach and privacy laws for the protection of their citizens.”
CSBS leaders also took issue with the Federal Reserve Reform Act of 2018 (H.R. 6741), which would require state-chartered banks to pay a new fee for supervisory examinations conducted by the Federal Reserve. Ryan, in a separate letter to the House Financial Services Committee, called it a “tax on state-chartered banks…that will hit the smallest community banks the hardest.” He added that these banks would “would pay more for the same level of supervision.”
The House Financial Services Committee is currently considering both of these pieces of legislation.
CSBS is an association of state regulators from all 50 states, along with American Samoa, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands.