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Bill

LC 4131

Enact the financial data protection act

2025 Regular Session

Montana bill establishing financial data protection standards for institutions died in legislative drafting without reaching committee consideration.

(LC) Draft Died in Process
#financialinstitutions #informationtechnology
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Bill Summary · LC 4131

Legislative bill overview

LC 4131 proposes Montana's Financial Data Protection Act, which would establish comprehensive safeguards for how financial institutions and related entities collect, store, and handle consumer financial data. The bill died in the legislative process before reaching a committee or floor vote, suggesting it did not advance past the drafting stage.

Why is this important

Financial data breaches expose consumers to identity theft, fraud, and significant financial losses, while weak data standards create compliance inconsistencies across institutions. Montana residents handle substantial financial transactions annually, making data protection standards relevant to consumer security and privacy rights.

Potential points of contention

  • Compliance costs: Strict data protection requirements may impose substantial compliance expenses on financial institutions, potentially affecting smaller lenders and community banks differently than larger corporations
  • Regulatory scope: Disagreement likely exists over which entities should be covered (banks, credit unions, fintech companies, insurance firms) and how broadly "financial data" should be defined
  • Preemption concerns: Debate over whether state-level protections conflict with or duplicate existing federal regulations (like Gramm-Leach-Bliley Act) and which takes precedence

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

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