OLR Bill Analysis

SB 873

AN ACT CONCERNING STATE CHARTERED BANKS.

SUMMARY:

By law, anyone possessing personal information about another person must safeguard it and the computer files and documents that contain it. “Personal information” is information that can be associated with an individual through an identifier like a Social Security number. The law gives each state agency the authority to enforce this provision against its licensees, registrants, or certificate holders. This bill also gives agencies the authority to enforce the law against holders of charters subject to its supervision, thereby clarifying that the Department of Banking can enforce the provision against banks.

PA 08-167 exempts state agencies and political subdivisions from the duty to safeguard personal information. The bill extends this exemption to financial institutions that have adopted safeguards that comply with the federal Gramm-Leach-Bliley Act.

EFFECTIVE DATE: October 1, 2009

BACKGROUND

Gramm-Leach-Bliley Act

The federal Gramm-Leach-Bliley Act of 1999 applies to financial institutions and how they handle nonpublic personal information. It requires federal regulators to establish comprehensive standards for ensuring the security and confidentiality of consumers' personal financial information.

COMMITTEE ACTION

Banks Committee

Joint Favorable