Senate Insurance & Commerce committee backs resolution urging consumer banking privacy, criticizes "Indirect Reconciliation Act"

The Senate Insurance & Commerce committee approved a resolution urging stronger consumer-privacy protections for bank customers and criticizing the proposed Indirect Reconciliation Act, the sponsor told the panel.

Senator Blake Johnson introduced the resolution, saying it sought protections "especially in the banking industry." Johnson told the committee that, as he described the proposal, "if you've had $600 worth of movement in your account, it gives information that ... to the IRS," and argued that such reporting should not be advanced through the reconciliation process.

Laurie Tudor of the banking association was present with Johnson, he said; no other members of the public rose to speak during the committee's public-comment period. The chair asked for committee questions; none were offered.

Senator Urban asked to be added as a cosponsor via a verbal amendment and then moved that the committee give the resolution a "do pass" recommendation. Senator Hammer seconded the motion; Senator Ervin was noted on the motion. The committee held a voice vote, and the chair announced the resolution had passed. The chair said the resolution will be sent to the full Senate for consideration.

The resolution is nonbinding on its face as introduced to the committee; the sponsor framed it as a statement of the committee's position on the proposed Indirect Reconciliation Act. The committee record does not include a roll-call tally—members expressed "aye" aloud and the chair declared the measure approved. The transcript does not record any formal testimony opposing the resolution or further factual back-up about how the proposed federal proposal would operate beyond the sponsor's characterization.

Next steps: the committee chair said the resolution will be taken up on the Senate floor.