Charles Schumer is proposing to amend Reg E (S.3898) to include municipalities and schools. The idea is these entities suffer losses when their logon credentials are compromised.

The bill is entered in Thomas, but the text isn't there yet. Here is the text at another link, http://docs.ismgcorp.com/files/external/BILL-To-amend-Electronic-Fund-Transfer-Act-AYO10H67.pdf .

From what I've read it isn't expected to pass, at least at the current Congress. But just the thought worries me.

Yeah, but we can deny the Reg E claim if they write their ID and password on the back of their token and then their keys are lost or stolen right...or require that they fly to Eastern Europe to file a police report for the theft?

End of sarcastic rant...