DALLAS, May 11 /PRNewswire/ -- The Texas House of Representatives voted 139 to 0 in favor of a data security breach bill, (House Bill 3222), which has been strongly supported by the Texas Credit Union League from the start.
The bill, authored by Representative Gary Elkins (R-Houston), Vice-Chair of the Texas Business & Industry Committee, will help protect Texans from identity theft. Designed to compel merchants to properly protect consumer financial information, HB 3222 will also allow credit unions to recover costs when data is not appropriately protected.
The bill received strong support from Business & Industry Committee Chair Representative Helen Giddings (D-De Soto), herself a victim of identity theft.
"This is a substantial step forward for protecting our seven million Texas credit union members from identity theft," said Dick Ensweiler, President and CEO of the Texas Credit Union League. "Consumers need to be assured that when they swipe their debit or credit card at a register, their entire financial identity does not go with it."
If the bill is adopted, the Payment Card Industry Data Security Standard (PCI-DSS) will be codified into Texas state law for all payment card related transactions. The bill provides a safe harbor for merchants who are in compliance with PCI-DSS when they are breached. Merchants who are not in compliance with PCI-DSS and who are breached by hackers, potentially will be liable for costs to financial institutions, such as costs for reissuing credit and debit cards and associated fraud.
This is a significant step forward from existing state law. Currently, when a data breach occurs, regardless of who is responsible, financial institutions, such as credit unions, are responsible for notifying their cardholders, reissuing new cards, and covering all costs associated with the fraud losses.
"This issue is very hot with our credit unions; they want something done to protect our members," added Ensweiler. "Our credit union surveys show 12% of Texas credit union debit cards and 6% of all credit cards have been cancelled in the last two years, leaving credit unions to bear the costs, even though they were powerless to protect against a breach by a third party."
Over the next several weeks, the bill is slated for consideration within the Texas state Senate. Although the legislative calendar ends on May 28th, the Texas Credit Union League hopes the strong bi-partisan support will help the bill make it through the process.
About Texas Credit Union League
The Texas Credit Union League is the official trade association for credit unions within the State of Texas. The League represents, on a state and federal level, nearly 600 credit unions state-wide, which are owned by over 7 million members (about one-third of the state's population). Organized in 1934, the Texas Credit Union League protects credit unions and promotes their growth, strength and unity. It accomplishes the mission through advocacy services, regulatory and compliance advice, training and event activities, marketing and public relations actions, and by delivering innovative, high value and profitable business solutions to the members.
Credit unions are not-for-profit, member-owned, volunteer-directed cooperatives that promote the financial and economic well being of all people, including those of modest means. The National Credit Union Share Insurance Fund federally insures credit unions.
Texas Credit Union League
