Utah Senate passes resolution urging protection of consumer banking privacy
November 10, 2021 | 2021 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah
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The Utah Senate on a second special session passed House Concurrent Resolution 201 urging Congress and the President to protect consumer privacy in banking and financial transactions.
Senator Wilson, sponsor of the resolution, said recent federal proposals would require financial institutions to report aggregate incoming and outgoing transactions above a $10,000 annual threshold to the IRS and argued such reporting could ‘‘violate individual [privacy]’’ and place ‘‘an undue financial burden’’ on community banks and credit unions. She said the change could discourage underbanked or unbanked residents from using formal banking services.
Supporters portrayed the measure as a defense of privacy and constitutional rights. Senator Harper said protections are important because ‘‘the presumption of this invasive act by the federal government is that everybody … potentially is a tax cheat,’’ invoking the presumption of innocence. Opponents and questioners sought clearer language and factual accuracy in the resolution: Senator Escamilla urged the sponsor to remove outdated references (the original $600 reporting proposal has since been changed) and to clarify that the federal proposals report aggregated annual totals rather than individual daily transactions.
Debate also touched on federal tax enforcement. Senator Davis framed the federal measures as an effort to stop ‘‘tax cheats’’ and to recover unpaid liabilities. Senators questioned whether wealthy actors would instead shift activity offshore or to cryptocurrencies—an outcome critics warned could harm local banks. Senator Hinkins asked whether cryptocurrencies could circumvent reporting; Senator Wilson said wealthy actors are likelier to use such methods.
The Senate voted by roll call and the President announced that House Concurrent Resolution 201 passed the body with 25 yea votes and 4 nay votes. The concurrent resolution will be signed by the President pro tempore and returned to the House for the Speaker’s signature.
The resolution is an expression of the Senate’s position to federal policymakers and does not itself change state law or impose regulatory penalties.
Senator Wilson, sponsor of the resolution, said recent federal proposals would require financial institutions to report aggregate incoming and outgoing transactions above a $10,000 annual threshold to the IRS and argued such reporting could ‘‘violate individual [privacy]’’ and place ‘‘an undue financial burden’’ on community banks and credit unions. She said the change could discourage underbanked or unbanked residents from using formal banking services.
Supporters portrayed the measure as a defense of privacy and constitutional rights. Senator Harper said protections are important because ‘‘the presumption of this invasive act by the federal government is that everybody … potentially is a tax cheat,’’ invoking the presumption of innocence. Opponents and questioners sought clearer language and factual accuracy in the resolution: Senator Escamilla urged the sponsor to remove outdated references (the original $600 reporting proposal has since been changed) and to clarify that the federal proposals report aggregated annual totals rather than individual daily transactions.
Debate also touched on federal tax enforcement. Senator Davis framed the federal measures as an effort to stop ‘‘tax cheats’’ and to recover unpaid liabilities. Senators questioned whether wealthy actors would instead shift activity offshore or to cryptocurrencies—an outcome critics warned could harm local banks. Senator Hinkins asked whether cryptocurrencies could circumvent reporting; Senator Wilson said wealthy actors are likelier to use such methods.
The Senate voted by roll call and the President announced that House Concurrent Resolution 201 passed the body with 25 yea votes and 4 nay votes. The concurrent resolution will be signed by the President pro tempore and returned to the House for the Speaker’s signature.
The resolution is an expression of the Senate’s position to federal policymakers and does not itself change state law or impose regulatory penalties.
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