Pub. 13 2018-2019 Issue 4

NEBRASKA BANKERS ASSOCIATION 21 Sarah Sauceda serves as Associate General Counsel for Compliance Alliance. She is an Honors Program graduate who graduated summa cum laude from Lamar University in Beaumont, Texas where she received her bachelor’s degree. While at Baylor Law School, Sarah heavily studied the financial aspects of the law—focusing her attention on secured transactions and the Uniform Commercial Code. Before coming to Compliance Alliance, she worked at Frost Bank within their Credit Administration Department. As an attorney with Compliance Alliance, Sarah is eager to help members with their compliance and regulatory questions. Fully registered Dealer Bank • Not FDIC Insured • No Bank Guarantee • May Lose Value FROM ONE COMMUNITY BANK TO ANOTHER. We have delivered fixed income strategies and support to banks of all sizes since 1985. Operating in over 30 states, the Capital Markets Group is always ready to meet the needs of our fellow community bankers. We keep investing simple so that banks can focus on what really matters — lending to the communities who support us. • Portfolio Strategy, Sales and Service • Bond and Securities Underwriting/Trading • BancPath® and FlexLoan® via Asset Management Group We speak the same language. COUNTRY CLUB BANK defines “nonpublic personal information” as: “personally identifiable information that is (i) provided by the consumer to the financial institution; (ii) resulting from any transaction with the consumer or any service performed for the con- sumer; or (iii) otherwise obtained by the financial institution.” Notably, the GLBA does not include the “reasonably linked” information. Banks, understandably, were con- cerned about the impact of this statute and how it would affect them, as they are already subject to extensive federal, privacy provisions. Late in September, the Act was amend- ed, via SB 1121 and lessened the blow to much of the financial community. SB 1121 provides an exemption for activities within the the correlative federal statute, the Gramm-Leach-Bliley Act (GLBA). However, it still has substantial implica- tions because, even for GLBA-related entities, activities that fall outside the scope of the GLBA are still regulated by the CCPA. As in: activities like online advertising, tracking visitors on the bank website, and collecting data in respect to location are covered under the CCPA and not exempted by the carve out language provided by SB 1121. What does this mean for other states? As most people know, California, a blue state, is one of the leaders in advancing regulations. So, most people would not be surprised to see other similar-leaning states like New York follow suit. However, even if a state does not share California’s political leanings, many regard this spe- cific legislation as a blueprint for expanded privacy protections for consumers because of the nature of public data breaches. And what about federal regulators? Is legislation like this seen to potentially impact federal regulations? At the mo- ment, there is not much implication one way or another. Though, again, in the cur- rent political climate and because of the slower pace federal laws and regulations change, many have a hard time seeing this affect federal law any time soon. It is not out of the question, though, as we look to the future. Finally – what does this mean for Tex- as? AlthoughCalifornia is very different in respect to political leanings as compared to the much more conservative state of Texas, many are of the opinion that Texas could, indeed, implement something of this nature, as current events sway public opinion in the direction of having more (rather than less) protections on consumer privacy. So, again, we encour- age you to keep a close eye during this upcoming session. If you have any questions, Compliance Alliance is here to help! You can reach us at hotline@compliancealliance.com or (888) 353-3933 . 