senate Bill S6608A

Restricts the requirement that a person disclose their social security number

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 02 / Mar / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 30 / Apr / 2012
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 30 / Apr / 2012
    • PRINT NUMBER 6608A
  • 21 / May / 2012
    • 1ST REPORT CAL.847
  • 22 / May / 2012
    • 2ND REPORT CAL.
  • 23 / May / 2012
    • ADVANCED TO THIRD READING
  • 18 / Jun / 2012
    • SUBSTITUTED BY A8992A

Summary

Tracks federal privacy act of 1974 with respect to the obligation of a person to disclose their social security number to another person, partnership, association or corporation; provides where there is no legal basis for request that a person may refuse to provide his or her social security number; provides for enforcement by attorney general.

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Bill Details

See Assembly Version of this Bill:
A8992A
Versions:
S6608
S6608A
Legislative Cycle:
2011-2012
Law Section:
General Business Law
Laws Affected:
Add ยง399-ddd, Gen Bus L

Votes

9
0
9
Aye
0
Nay
0
aye with reservations
0
absent
1
excused
0
abstained
show Consumer Protection committee vote details

Sponsor Memo

BILL NUMBER:S6608A REVISED 06/13/12

TITLE OF BILL:
An act
to amend the general business law, in relation to the disclosure of
social security numbers

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to restrict the dissemination and
collection of social Security numbers in order to increase consumer
privacy and prevent identity theft.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would prohibit any person or business entity from requiring
an individual to disclose his or her Social Security number, or to
refuse any service, privilege or right based on an individual's
refusal to disclose such number. The bill-would not apply if the SSN
is required by law or covered under one of several exemptions
provided for legitimate uses, including collecting child or spousal
support, opening a deposit account, interacting with a law
enforcement agency, a credit transaction initiated by the consumer,
and tax compliance. Further, it is not intended that this bill apply
to any third party who is contracted with to do the business of any
authorized entity.

The bill would authorize the Attorney General's office to enforce its
provisions, provide for a civil penalty of not more than five hundred
dollars per violation.

JUSTIFICATION:
The Federal Trade Commission, the Social Security Administration, the
General Accounting Office and other acknowledge that the widespread
public exposure of personal information, especially social Security
account numbers, plays a significant role in identity theft. Despite
heightened awareness of this risk, some entities continue to demand
that individuals furnish a social Security Number (SSN) in
circumstances when the use of the SSN is neither required by law or
necessary. Consumers are often given the impression that they must
remit their SSN. In some instances, the disclosure of one's SSN has
been made a condition for obtaining services.

The federal Privacy Act of 1974 requires federal, state and local
governmental agencies requesting SSNs to cite its formal legal
authority, reveal whether disclosure is mandatory or voluntary and
explain how the number will be used. Enactment of this bill would
extend this
protection to the private sector.

PRIOR LEGISLATIVE HISTORY:
2010: A.9532B - Passed Assembly
2009: A.235 - Passed Assembly
2007-08: A.334 - Passed Assembly

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
120 days after enactment.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6608--A

                            I N  S E N A T E

                              March 2, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the general business law, in relation to the  disclosure
  of social security numbers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
399-ddd to read as follows:
  S 399-DDD. DISCLOSURE OF SOCIAL SECURITY NUMBER. 1.  AS USED  IN  THIS
SECTION,  "SOCIAL  SECURITY  ACCOUNT  NUMBER"  SHALL  INCLUDE THE NUMBER
ISSUED BY THE FEDERAL SOCIAL  SECURITY  ADMINISTRATION  AND  ANY  NUMBER
DERIVED  FROM  SUCH NUMBER.  SUCH TERM SHALL NOT INCLUDE ANY NUMBER THAT
HAS BEEN ENCRYPTED.
  2. NO PERSON,  FIRM,  PARTNERSHIP,  ASSOCIATION  OR  CORPORATION,  NOT
INCLUDING  THE  STATE  OR  ITS  POLITICAL SUBDIVISIONS, SHALL REQUIRE AN
INDIVIDUAL TO DISCLOSE OR FURNISH HIS OR  HER  SOCIAL  SECURITY  ACCOUNT
NUMBER,  FOR  ANY  PURPOSE IN CONNECTION WITH ANY ACTIVITY, OR TO REFUSE
ANY SERVICE, PRIVILEGE OR  RIGHT  TO  AN  INDIVIDUAL  WHOLLY  OR  PARTLY
BECAUSE  SUCH  INDIVIDUAL  REFUSES  TO  DISCLOSE OR FURNISH SUCH NUMBER,
UNLESS ONE OF THE EXCEPTIONS ENUMERATED IN  SUBDIVISION  THREE  OF  THIS
SECTION APPLIES.
  3.  THE  PROVISIONS  OF  THIS SECTION SHALL NOT APPLY IN THE FOLLOWING
INSTANCES:
  (A) THE INDIVIDUAL CONSENTS TO THE ACQUISITION OR USE OF  HIS  OR  HER
SOCIAL SECURITY ACCOUNT NUMBER.
  (B) THE SOCIAL SECURITY ACCOUNT NUMBER IS EXPRESSLY REQUIRED BY FEDER-
AL, STATE, OR LOCAL LAW OR REGULATION.
  (C)  THE  SOCIAL  SECURITY  ACCOUNT  NUMBER IS TO BE USED FOR INTERNAL
VERIFICATION OR FRAUD INVESTIGATION.
  (D) THE SOCIAL SECURITY ACCOUNT NUMBER IS TO BE USED FOR ANY  BUSINESS
FUNCTION  PERMITTED  OR  ALLOWED  UNDER THE GRAMM LEACH BLILEY ACT, P.L.
106-102 (1999).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01061-05-2

S. 6608--A                          2

  (E) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
A REQUEST FOR CREDIT OR A CREDIT TRANSACTION INITIATED BY  THE  CONSUMER
OR IN CONNECTION WITH A LAWFUL REQUEST FOR A CONSUMER REPORT OR INVESTI-
GATIVE  CONSUMER  REPORT,  AS  SUCH  TERMS  ARE DEFINED IN SECTION THREE
HUNDRED EIGHTY-A OF THIS CHAPTER.
  (F) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
A DEPOSIT ACCOUNT OR AN INVESTMENT.
  (G)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR PURPOSES OF
EMPLOYMENT, INCLUDING IN THE COURSE OF THE ADMINISTRATION  OF  A  CLAIM,
BENEFIT,  OR  PROCEDURE  RELATED  TO  THE INDIVIDUAL'S EMPLOYMENT BY THE
PERSON, INCLUDING THE INDIVIDUAL'S TERMINATION FROM EMPLOYMENT,  RETIRE-
MENT  FROM  EMPLOYMENT, INJURY SUFFERED DURING THE COURSE OF EMPLOYMENT,
OR TO CHECK ON AN UNEMPLOYMENT INSURANCE CLAIM OF THE INDIVIDUAL.
  (H) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED  FOR  PURPOSES  OF
TAX COMPLIANCE.
  (I)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE
OF:
  I. THE COLLECTION OF CHILD OR SPOUSAL SUPPORT;
  II. DETERMINING WHETHER AN INDIVIDUAL HAS A CRIMINAL RECORD; OR
  III. BLOOD OR ORGAN DONATION.
  (J) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
ANY INTERACTION WITH A GOVERNMENTAL LAW ENFORCEMENT AGENCY OR IS USED IN
CONJUNCTION WITH THE ENFORCEMENT OF A JUDGMENT OF A COURT  OF  COMPETENT
JURISDICTION BY A SHERIFF OR MARSHAL.
  (K) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE OF
VERIFYING  AN  INDIVIDUAL'S IDENTITY OR AGE IN ORDER TO ALLOW SUCH INDI-
VIDUAL TO OBTAIN ACCESS TO, OR ENROLL IN, A MARKETING  PROGRAM  THAT  IS
RESTRICTED TO INDIVIDUALS OF A CERTAIN AGE.
  (L)  I. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVID-
UAL, FIRM, CORPORATION, OR OTHER ENTITY DOING  BUSINESS  PURSUANT  TO  A
FRANCHISE  ISSUED  BY A POLITICAL SUBDIVISION OF THE STATE OR A LICENSE,
FRANCHISE, CERTIFICATE OR OTHER AUTHORIZATION ISSUED  BY  THE  NEW  YORK
STATE PUBLIC SERVICE COMMISSION.
  II.  THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVIDUAL,
FIRM, CORPORATION, OR OTHER ENTITY  REGULATED  BY  THE  NEW  YORK  STATE
PUBLIC SERVICE COMMISSION, THE FEDERAL COMMUNICATIONS COMMISSION, OR THE
FEDERAL ENERGY REGULATORY COMMISSION.
  III.  THE  SOCIAL  SECURITY  ACCOUNT  NUMBER IS REQUESTED BY A BANKING
INSTITUTION, AS DEFINED IN SECTION NINE-F OF THE BANKING LAW, OR ONE  OF
ITS AFFILIATES.
  (M)  THE  SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN AUTHORIZED
INSURER, AS DEFINED IN SECTION ONE HUNDRED SEVEN OF THE  INSURANCE  LAW,
FOR  THE  PURPOSE  OF FURNISHING INFORMATION TO THE CENTERS FOR MEDICARE
AND MEDICAID SERVICES WITHIN THE UNITED STATES DEPARTMENT OF HEALTH  AND
HUMAN SERVICES.
  4.  WHENEVER  THERE  SHALL BE A VIOLATION OF THIS SECTION, APPLICATION
MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
VIOLATION;  AND  IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
JUSTICE THAT THE DEFENDANT HAS,  IN  FACT,  VIOLATED  THIS  SECTION,  AN
INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS

S. 6608--A                          3

PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
TION.  IN  CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY
GENERAL  IS  AUTHORIZED  TO  TAKE  PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES. WHENEVER THE COURT SHALL DETERMINE THAT A  VIOLATION
OF  SUBDIVISION TWO OF THIS SECTION HAS OCCURRED, THE COURT SHALL IMPOSE
A CIVIL PENALTY OF NOT  MORE  THAN  FIVE  HUNDRED  DOLLARS.  THE  SECOND
OFFENSE  AND  ANY  OFFENSE COMMITTED THEREAFTER SHALL BE PUNISHABLE BY A
CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS.
  5.  NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHALL  BE
DEEMED  TO  HAVE VIOLATED THE PROVISIONS OF THIS SECTION IF SUCH PERSON,
FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHOWS, BY A  PREPONDERANCE
OF  THE  EVIDENCE,  THAT  THE VIOLATION WAS NOT INTENTIONAL AND RESULTED
FROM A BONA FIDE ERROR MADE NOTWITHSTANDING THE  MAINTENANCE  OF  PROCE-
DURES REASONABLY ADOPTED TO AVOID SUCH ERROR.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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