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HB 5210

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

2026 Regular Session Introduced by Eric Berthel and 3 co-sponsors

Connecticut bill requires financial institutions to implement enhanced data security measures to protect consumer information and reduce cybersecurity breach risks.

FILE NO. 133
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Bill Summary · HB 5210

Legislative bill overview

HB 5210 establishes data security requirements for certain financial institutions operating in Connecticut. The bill appears to create mandatory security standards, protocols, and compliance measures that financial institutions must implement to protect consumer data and information systems. This represents an effort to strengthen cybersecurity protections at the state level for financial sector operations.

Why is this important

Data breaches at financial institutions can expose millions of consumers to identity theft, fraud, and financial loss. Connecticut residents hold accounts and conduct transactions with various financial entities, making their personal and financial information vulnerable to cyber threats. Establishing clear security requirements creates baseline protections and provides consumers with assurance that institutions handling their money are meeting defined security standards.

Potential points of contention

  • Compliance costs: Smaller financial institutions may argue that implementing new security requirements is expensive and could reduce their competitiveness or increase fees for consumers
  • Regulatory overlap: Financial institutions already comply with federal data security regulations (like those from the Federal Reserve, OCC, and FDIC); Connecticut requirements could create redundant or conflicting state-level mandates
  • Definition of "certain" institutions: The bill's scope is unclear—determining which institutions are covered could affect market competition differently across the financial sector and create compliance confusion

Compiled from official sources — confirm details with the bill’s official record.

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