House Republicans release pair of bills to preempt state privacy laws

House Republicans release pair of bills to preempt state privacy laws 

A group of House Republicans introduced a pair of bills Wednesday aimed at creating a national standard on data privacy and overriding existing state regulations on consumers’ and financial data.

The bills include the SECURE Data Act, involving technology companies’ handling of data, and the GUARD Financial Data Act, which deals with data protection within financial institutions. The legislation follows years of efforts on Capitol Hill to set a national standard on how technology and financial companies handle data. 

In the absence of federal regulation, dozens of state bills have sought to fill the gaps, but the technology industry argues this creates a challenging patchwork of rules to operate across the country.

The bills have the backing of GOP leaders from the House Energy and Commerce Committee, and the House Committee on Financial Services. 

The committees said the legislation takes definitions and requirements from state laws and keeps a role for state enforcers. 

“By enacting national standards, the bills promote competition by lowering barriers to entry for new firms and increase consumer choice by making it easier for all firms to make offerings of products and services to Americans in all 50 states,” the committees said. 

Along with a national standard, the legislation would require tech firms and financial institutions to limit the collection of consumer data to only what is necessary and give consumers the right to access a copy of the data these institutions have. 

The legislation also gives consumers the right to request their data be deleted from these organizations, and requires the institutions get an opt-in from consumers when dealing with sensitive data. 

In a joint statement, House Energy and Commerce Chair Brett Guthrie (R-Ky.) and Rep. John Joyce (R-Pa.), the leader of Energy and Commerce’s data privacy working group and lead on the SECURE Data Act, said the legislation establishes “clear, enforceable protections so that Americans remain in charge of their own data and companies are held accountable for its safe keeping.” 

Financial Services Chair French Hill (R-Ark.), joined by the co-leaders of the GUARD Financial Data Act — Reps. Bill Huizenga (R-Mich.), Bryan Steil (R-Wis.) — said the bill hopes to “modernize” the Gramm-Leach-Biley Act, a 1999 bill that mandates financial institutions explain their data-sharing practices to customers. 

“It was written in a technology-neutral fashion that has adapted well to the changes in technology and types of consumer data that have developed since 1999,” the lawmakers wrote in a statement Wednesday. “But, in that time, the volume and complexity of data have increased such that providing consumers greater control over their financial data has become imperative.”

Efforts to pass a comprehensive data privacy bill have failed for years, causing the U.S. to remain behind on protections amid a push from other global regulators. The House and Senate Commerce committees tried to pass a bipartisan data privacy bill in 2024 but received pushback from House Republican leadership at the time.

Lawmakers have largely disagreed over the preemption of state laws, which Republicans pushed for.

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