Credit Union Priorities on the Move in State Legislative Lame Duck Session
The lame duck session is in full swing at the state Capitol and MCUL’s legislative priorities have gained early traction. Data breach legislation (HB 6405-6406), e-notary legislation (SB 664) and electronic lien termination (ELT) for watercraft and off-road vehicles (ORV) (HB 6486-6487) are all in motion as the legislature begins its final weeks.
On Nov. 27, the House of Representatives passed e-notary legislation (SB 664, 996-999), which started lame duck with a victory for credit unions. The Senate agreed with amendments to those bills and sent them onward to the Governor on Nov. 28. This legislation allows credit union notaries to sign and seal documents electronically while the member is physically present in the branch. This will provide a more efficient method of conducting these types of transaction and reduce the need for paper documents. These procedures will dovetail with credit union-supported legislation enacted earlier this year to allow remote notarization of documents.
Recently introduced legislation on data breach notification (HB 6405-6406) also moved forward, reporting out of the House Financial Services Committee. These bills would require breached entities to provide notice to consumers and to the Department of Technology, Management and Budget (DTMB) within 45 days of discovering a breach.
This legislation will provide a stronger baseline for consumer notification and a better step towards greater data security requirements for Michigan businesses. Patty Campbell, CEO of Christian Financial CU, and Chrissy Siders, CEO of CP FCU, were on hand to testify on the importance of data security and stricter standards for notification.
The Committee adopted several amendments to the bills. The first provides clarity to split-membership entities, who have business facets in addition to insurance, as to which procedures a company needs to comply with in the event of potentially conflicting notification standards. The second changed the entity that a breached merchant would have to report to, from the Attorney General to DTMB.
A possible floor amendment, pending before likely House passage next week, would allow breached entities with good cause to request a single extension of an additional 45 days to provide notification. The extension would have to be approved by DTMB.
ELT for watercraft (HB 6486) and ORVs (HB 6487) creates the ability for liens to be transferred or terminated electronically for both boats and ORVs, eliminating paper titles for covered vehicles with a lien on them and the fraud that comes with paper titles. On Nov. 28, the legislation had a hearing in the House Natural Resources Committee and was voted out of committee. This legislation is headed to the House floor and should be taken up for passage in that chamber in short order.
MCUL’s government affairs team will continue to monitor and provide updates on our legislative priorities through the rest of this session. If you have any questions please direct them to Haleigh Krombeen, Manager, Legislative Affairs.Go to main navigation