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HB05210 • 2026

AN ACT ESTABLISHING VARIOUS DATA SECURITY REQUIREMENTS APPLICABLE TO CERTAIN FINANCIAL INSTITUTIONS.

AN ACT ESTABLISHING VARIOUS DATA SECURITY REQUIREMENTS APPLICABLE TO CERTAIN FINANCIAL INSTITUTIONS.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Banking Committee
Last action
2026-03-24
Official status
File Number 133
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details on the fiscal impact or specific actions required by financial institutions under federal laws, other than creating a written program.

Data Security Rules for Financial Institutions

This act sets new rules for financial institutions in Connecticut to protect customer information and report security incidents.

What This Bill Does

  • Requires certain financial institutions to create written programs that set standards for protecting customer data securely.
  • Makes these institutions comply with federal laws about protecting customer information, including specific regulations.
  • Requires banks and credit unions to tell the Department of Banking if there is a security incident within three business days.

Who It Names or Affects

  • Financial institutions in Connecticut, including banks and credit unions.
  • The Department of Banking which will receive notifications about security incidents.

Terms To Know

Data Security Incident
An unauthorized access to or damage of electronic data containing personal information or business information of financial institutions.
Financial Institution
A bank, credit union, or other organization that handles money and customer accounts.

Limits and Unknowns

  • The bill does not specify how the Department of Banking will handle notifications.
  • It is unclear what specific actions financial institutions must take to comply with federal regulations beyond creating a written program.

Bill History

  1. 2026-03-24 LCO

    Reported Out of Legislative Commissioners' Office

  2. 2026-03-24 Connecticut General Assembly

    Favorable Report, Tabled for the Calendar, House

  3. 2026-03-24 Connecticut General Assembly

    House Calendar Number 113

  4. 2026-03-24 LCO

    File Number 133

  5. 2026-03-18 LCO

    Referred to Office of Legislative Research and Office of Fiscal Analysis 03/23/26 5:00 PM

  6. 2026-03-10 BA

    Joint Favorable Substitute

  7. 2026-03-10 LCO

    Filed with Legislative Commissioners' Office

  8. 2026-02-19 Connecticut General Assembly

    Public Hearing 02/24

  9. 2026-02-18 Connecticut General Assembly

    Referred to Joint Committee on Banking

Official Summary Text

To establish various data security requirements applicable to certain financial institutions.

Current Bill Text

Read the full stored bill text
House of Representatives
sHB5210 / File No. 133 1

General Assembly File No. 133
February Session, 2026 Substitute House Bill No. 5210

House of Representatives, March 24, 2026

The Committee on Banking reported through REP. DOUCETTE
of the 13th Dist., Chairperson of the Committee on the part of
the House, that the substitute bill ought to pass.

AN ACT ESTABLISHING VARIOUS DATA SECURITY
REQUIREMENTS APPLICABLE TO CERTAIN FINANCIAL
INSTITUTIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 36a -44a of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2026): 2
(a) As used in this section: 3
(1) "Data security incident" means any unauthorized access to or 4
unauthorized acquisition, destruction or corruption of electronic files, 5
media, databases or computerized data containing (A) personal 6
information of an individual, or (B) supervisory, financial, operational 7
or business information of any (i) licensee under this title, (ii) 8
Connecticut bank, or (iii) Connecticut credit union; 9
(2) "Financial institution" has the same meaning as provided in 10
Section 509 of the Gramm -Leach-Bliley Financial Modernization Act of 11
1999, 15 USC 6809, and the regulations promulgated thereunder, as said 12
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sHB5210 / File No. 133 2

act and such regulations may be amended from time to time; and 13
(3) "Personal information" has the same meaning as provided in 14
section 36a-701b. 15
(b) Each financial institution that is a bank, a Connecticut credit 16
union, a federal credit union, an out -of-state bank that maintains a 17
branch in this state, an out -of-state trust company or out-of-state credit 18
union that maintains an office in this state [,] or a licensee under this 19
title, [or any] and each person subject to the jurisdiction of the 20
commissioner under title 36b , shall (1) adopt, in writing, a program 21
setting forth standards for developing, implementing and maintaining 22
reasonable data security safeguards to protect the security, 23
confidentiality and integrity of customer information, and (2) comply 24
with all provisions of Subtitle A of Title V of the Gramm -Leach-Bliley 25
Financial Modernization Act of 1999, 15 USC 6801 et seq., and the 26
regulations promulgated thereunder that apply to such financial 27
institution [, except to ] or person, including, but not limited to, the 28
applicable provisions of 12 CFR Part 364, Appendix B, 12 CFR Part 748, 29
Appendix A and 16 CFR Part 314, as said act and such regulations may 30
be amended from time to time. To the extent that this [section] 31
subsection is inconsistent with the provisions of sections 36a -41 to 36a-32
44, inclusive, [in which case ] the provisions that afford the customer 33
greater protection shall control. [For purposes of this section, "financial 34
institution" has the meaning given to that term in Section 509 of the 35
Gramm-Leach-Bliley Financial Modernization Act of 1999, 15 USC 6809, 36
and the regulations promulgated thereunder.] 37
(c) Each licensee under this title, Connecticut bank and Connecticut 38
credit union shall file a notification with the Department of Banking, in 39
a form and manner prescribed by the Banking Commissioner, not later 40
than three business days after such licensee, Connecticut bank or 41
Connecticut credit union knows, or has reason to know, of the 42
occurrence of any data security incident that may (1) materially impact 43
its ability to operate in a safe and sound manner or comply with 44
applicable laws and regulations, (2) cause significant disruption in 45
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sHB5210 / File No. 133 3

customer services, or (3) involve any unauthorized access to the 46
personal information of any individual. 47
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 36a-44a

BA Joint Favorable Subst.

sHB5210 File No. 133

sHB5210 / File No. 133 4

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: None
Municipal Impact: None
Explanation
The bill, which requires certain financial institutions to adopt data
security safeguards and to notify the Department of Banking of certain
data security incidents, results in no fiscal impact to the state as the
department has sufficient resources to receive the notifications.

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sHB5210 / File No. 133 5

OLR Bill Analysis
sHB 5210

AN ACT ESTABLISHING VARIOUS DATA SECURITY
REQUIREMENTS APPLICABLE TO CERTAIN FINANCIAL
INSTITUTIONS.

SUMMARY
This bill requires the following entities and individuals to adopt
written programs with standards on developing, implementing, and
maintaining reasonable data security safeguards to protect the security,
confidentiality, and integrity of customer information: banks,
Connecticut credit unions, federal credit unions, out-of-state banks with
a branch in Connecticut, out -of-state trust compan ies or credit union s
with an office in Connecticut, licensees under Connecticut banking law,
and those who are subject to the Department of Banking’s (DOB)
jurisdiction under Con necticut securities law . Under the bill, to the
extent that this requirement conflicts with existing state law on financial
records disclosure, the provisions giving customers the greater
protection control.
The bill also requires DOB licensees and Connecticut banks and
credit unions to notify the department within three business days after
they know, or have reason to know , of certain data security incidents.
The reporting requirement is triggered by any incident that may (1)
materially impact the ability to operate safely and soundly or comply
with applicable laws and regulations, (2) significantly disrupt customer
services, or (3) involve unauthorized access to an individual ’s personal
information (see BACKGROUND).
Under existing law, the same entities and individuals that the bill
requires to adopt a written program on protecting customer information
must comply with the financial privacy provisions of the Gramm-Leach-
Bliley Financial Modernization Act of 1999 and associated regulations
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sHB5210 / File No. 133 6

(see BACKGROUND). The bill specifies that this includes required
compliance with the applicable provisions of three associated federal
regulations on standards for developing, implementing, and
maintaining safeguards to protect customer information.
Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2026
DATA SECURITY INCIDENT
Under the bill, a “data security incident” is unauthorized access to or
unauthorized acquisition, destruction, or corruption of certain
electronic files, media, databases, or computerized data. The files,
media, databases, or data involved must have either (1) an individual’s
personal information or (2) a DOB -licensee’s or Connecticut bank’s or
credit union’s supervisory, financial, operational, or business
information.
BACKGROUND
Gramm-Leach-Bliley Financial Modernization Act of 1999
Subtitle A of Title V of the Gramm -Leach-Bliley Financial
Modernization Act of 1999 limits the circumstances under which a
financial institution can disclose a consumer’s nonpublic personal
information to nonaffiliated third parties. It also requires financial
institutions to disclose to their customers the institution’s financial
privacy policies and practices with respect to affiliated and nonaffiliated
parties (15 U.S.C. § 6801 et seq.).
Personal Information
By law, “personal information” is a person’s first name or initial and
last name, combined with at least one of the following:
1. driver’s license or state identification card number;
2. government-issued identification number that is commonly used
to verify identity, such as a Social Security, taxpayer
identification, passport, or military identification number;
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3. credit or debit card number;
4. financial account number, with other information that would
give account access;
5. information about the person’s medical history, mental or
physical condition, or medical treatment or diagnosis;
6. health insurance policy number or subscriber identification
number, or any unique identifier a health insurer uses to identify
the person;
7. biometric data generated by electronic measurements of the
person’s unique physical characteristics used to authenticate or
determine identity ( for example, fingerprint, voice print, or eye
image); or
8. precise geolocation data.
It also includes a person’s username or email address, combined with
a password or security question and answer that would allow access to
an online account (breach of login credentials) (CGS § 36a-701b).
COMMITTEE ACTION
Banking Committee
Joint Favorable Substitute
Yea 13 Nay 0 (03/10/2026)