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Wyoming amends its open banking provisions
On March 8, the Wyoming governor signed HB 145 (the “Act”) related to open banking, making two changes. First, the amendment updated the definition of a “customer” as a natural person or an agent, trustee, or representative acting on behalf of a natural person. Second, and for banks already participating in open banking, the Act limited the release of consumer data to third-party financial service providers to data that is only necessary for the consumer to receive the third-party product or service. The Act will go into effect on July 1.
Wyoming to issue stable tokens
On March 17, the Wyoming governor signed SF 127 enacting the Wyoming Stable Token Act, creating the Wyoming stable token commission, and authorizing the issuance of stable tokens in the state. Under the Act, a Wyoming stable token is “a virtual currency representative of and redeemable for one (1) United States dollar held in trust by the state of Wyoming” that may only be issued in exchange for a USD. Stable tokens will be issued by the Wyoming stable token commission—created by the Act and to be comprised of no more than four virtual currency/fintech subject matter experts. The commission is authorized to, among other things, (i) establish “the means used to issue, maintain and manage the Wyoming stable tokens and the manner of and requirements for redemption”; (ii) select which financial institutions will manage the stable tokens, and make and enter into contracts and arrangements for such services; (iii) seek rulings and other guidance from federal agencies related to the provisions outlined in the Act; (iv) prior to issuing any such tokens, issue a comprehensive report to a select committee overseeing blockchain, financial technology, and digital innovation technology, among others, on all actions taken under the Act; and (v) promulgate rules and regulations as necessary to administer the Act and ensure compliance. The Act also outlines criteria relating to liability limitations and requires that the commission endeavor to issue at least one Wyoming stable token no later than December 31.
Wyoming to regulate debt buyers as collection agencies
On February 27, the Wyoming governor signed HB 284, which requires debt buyers to be licensed as “collection agencies” beginning July 1. Under the act, a collection agency now includes any person who operates as a debt buyer, defined as “any person that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether the person collects the debt, hires a third party for collection of the debt or hires an attorney for collection litigation[.]” As a result, debt buyers will be regulated by the Collection Agency Board. Importantly, the act protects the validity of any civil action or arbitration filed or commenced by a debt buyer, or any judgment entered for a debt buyer, prior to the effective date.
Wyoming enacts genetic data privacy provisions
On March 8, the Wyoming governor signed HB 86, which requires businesses that collect genetic data to obtain consent from a consumer or a consumer’s authorized representative before collecting genetic data, performing genetic testing, or retaining or disclosing a consumer’s genetic data. To safeguard the privacy, confidentiality, security, and integrity of a consumer’s genetic data, businesses must, among other things, (i) provide clear, transparent information to consumers about the collection, use, or disclosure of genetic data before collecting it (including providing a publicly available privacy notice); and (ii) obtain express consent from a consumer before collecting genetic data, and receive separate express consent for transferring or disclosing genetic data to persons “other than the company’s vendors and service providers, or for using genetic data beyond the primary purpose of the genetic testing product or service and inherent contextual uses,” or for retaining genetic data after the initial testing service is completed. The Act outlines additional requirements and prohibitions on the disclosure and retention of genetic data and requires businesses to implement and maintain a comprehensive security program to protect genetic data from unauthorized access, use, or disclosure. Additionally, the Act provides consumers with the statutory right to access and request deletion of genetic data when it is no longer being used or needed for the purpose for which it was collected and provides consumers with a private right of action to seek damages from businesses who violate the Act. Under the Act, businesses have 60 days from the date of notice to cure any alleged violations. The Wyoming attorney general also has the authority to enforce the Act and may seek penalties of up to $2,500 for each violation, as well as actual damages for harmed consumers on whose behalf the action was brought and attorneys’ fees and costs.
Covered entities or business associates governed by the privacy, security, and breach notification rules issued by the Department of Health and Human Services that collect protected health information under HIPAA are exempt from the Act’s provisions. The Act takes effect July 1.
Wyoming passes consumer lending act
Earlier this year, the Wyoming governor signed HB 8 to authorize sales-finance activities for some licensees and establish procedures and calculations for refunding certain credit-insurance products upon prepayment. Among other things, this act exempts certain supervised financial institutions from certain notice and fee requirements in the Wyoming Uniform Consumer Credit Code (the Code) and generally restructures the Code to repeal statutes for consumer-related and supervised loans, consolidating the provisions for those loans into existing laws for consumer loans. Regarding the MLA, the act authorizes that “the administrator may seek an appropriate remedy, penalty, action or license revocation or suspension.” This act is effective July 1.
Wyoming executive order instructing cooperation with federal agencies to implement Emergency Rental Assistance Program
On February 8, the governor of Wyoming issued Executive Order 2021-02, which instructs the Wyoming Department of Family Services (WDFS) to prepare for the implementation of the federal Emergency Rental Assistance Program (ERAP.) Section (b) specifically charges WDFS to enter into “formal or informal” cooperative agreements with any necessary federal agency, including the Department of Housing and Urban Development, for “information-sharing, planning, and technical assistance” related to rolling out ERAP.
Wyoming secretary of state announces temporary remote notarization
On March 24, Wyoming’s secretary of state issued guidance on temporary remote notarization as a result of Covid-19. The guidance encourages Wyoming-based notaries that intend to perform remote online notarial acts to undergo training from remote notarization providers approved by contiguous states, and use that provider’s technology standards and security features. Approved contiguous providers include: CSC Global, Figure Technologies, Nexsys, NotaryCam, SafeDocs, Simplifile (for IPEN only), DocVerify, Jetexas Information Technovation, Notarize, Pavaso, SIGNiX, and World Wide Notary.