senate Bill S5554A

Bans the use of employer data reports

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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

  • 20 / May / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 24 / May / 2013
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 24 / May / 2013
    • PRINT NUMBER 5554A
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION

Summary

Bans the sale of employment data reports without written consumer consent; provides such employment data reports shall include, but not be limited to, payroll and earnings information, hours worked, consumer history and health insurance information.

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Bill Details

Versions:
S5554
S5554A
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Rel §380-u to be §380-v, add §380-u, Gen Bus L

Sponsor Memo

BILL NUMBER:S5554A

TITLE OF BILL:
An act
to amend the general business law, in relation to
banning the
sale of
employment data reports

PURPOSE OR GENERAL IDEA OF BILL: Bans the sale of
employment data reports

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 380-u of the article is relettered section 380-v,
and a new section 380-u is added, which would ban the sale of
employment data reports by consumer reporting agencies without
written consumer consent in a separate stand-alone document. This
section also adds what is included in employment data reports, such
as payroll and earning information, hours an employee has worked,
consumer history and health insurance information. Section 380-u(b)
charges the Attorney General with the enforcement of this law, This
section also includes a civil penalty of 2,000 dollars for each
violation of this statute to be imposed on the consumer reporting
agencies.

Section 2: Contains the effective date.

JUSTIFICATION:
The "Work Number" provides employment data reports, and is operated by
TALX Corporation, which is owned by the credit reporting agency
Equifax. The "Work Number" permits companies to outsource payroll and
human resource functions and maintains information on at least 30% of
the U.S. working population.

According to an NBC News report, Equifax has been selling employment
reports, including detailed health insurance and payroll information,
to third parties, such as debt collectors and other financial
services corporations. This is an invasion of consumers' and
employees' privacy. Moreover, many employees are unaware of this sale
of their detailed payroll information to third parties. This
legislation would prohibit consumer reporting agencies from selling
employment data reports to third parties.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE: This act shall take effect on the one
hundred eightieth day after it shall have become a law.

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

                                 5554--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 20, 2013
                               ___________

Introduced  by  Sen.  BOYLE  -- 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  banning  the
  sale of employment data reports

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

  Section 1.  Section 380-u of the general business law,  as  relettered
by chapter 63 of the laws of 2006, is relettered section 380-v and a new
section 380-u is added to read as follows:
  S  380-U.  SALE OF EMPLOYMENT DATA REPORTS.  (A) NO CONSUMER REPORTING
AGENCY SHALL SELL OR RESELL, OR OFFER FOR SALE OR RESALE  OR  DISTRIBUTE
EMPLOYMENT  DATA  REPORTS  TO  THIRD  PARTIES  WITHOUT  WRITTEN CONSUMER
CONSENT IN A SEPARATE STAND-ALONE DOCUMENT.    SUCH  EMPLOYMENT  REPORTS
SHALL  INCLUDE, BUT NOT BE LIMITED TO, PAYROLL AND EARNINGS INFORMATION,
HOURS WORKED, CONSUMER HISTORY AND HEALTH INSURANCE INFORMATION.
  (B) WHEREVER THERE SHALL BE A VIOLATION OF THIS SECTION,  AN  APPLICA-
TION  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 OR RESTRAIN THE  CONTIN-
UANCE  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
PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE
HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08805-08-3

S. 5554--A                          2

SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
THAN TWO THOUSAND DOLLARS FOR EACH VIOLATION.  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 PRACTICE LAW AND RULES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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