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NAFCU-sought GLBA exemption expanded in ULC's draft data privacy law
NAFCU Senior Regulatory Counsel Elizabeth LaBerge Thursday attended the Uniform Law Commission's (ULC) livestream meeting – held in place of its 2020 Annual Conference – where the ULC's Collection and Use of Personally Identifiable Data Act was read by its drafting committee. The draft act includes a NAFCU-sought expansion of the exemption for financial institutions covered by the Gramm-Leach-Bliley Act (GLBA) – which would reduce the compliance burden on credit unions if the draft act is adopted in their state.
This reading of the draft act is the first of two readings necessary before the ULC adopts a model act for state to consider. This draft of the Collection and Use of Personally Identifiable Data Act was first revealed in August during a drafting committee meeting.
As states consider their own data security and privacy standards, a uniform law will serve as an important model to promote consistency across state law as opposed to a patchwork of state privacy laws. NAFCU has continuously advocated for a national privacy and data security standard so credit unions are not subject to multiple privacy frameworks; for more information, the association developed a whitepaper that outlines a set of six key data privacy principles.
Previously, the association urged the California attorney general to exempt credit unions from the state's privacy law – which took effect Jan. 1 – as the industry already complies with the GLBA.
NAFCU will continue to monitor the drafting committee’s efforts and provide feedback on the drafted laws, both in writing and at meetings, to reflect credit unions' needs on this issue.