senate Bill S7538

Relates to the unlawful use of New York driver's license or identification card

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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

  • 15 / May / 2014
    • REFERRED TO CONSUMER PROTECTION

Summary

Relates to the unlawful use of a New York driver's license or identification card.

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Bill Details

Versions:
S7538
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §399-hh, Gen Bus L; amd §65-b, ABC L

Sponsor Memo

BILL NUMBER:S7538

TITLE OF BILL: An act to amend the general business law and the
alcoholic beverage control law, in relation to the unlawful use of New
York state driver's license or identification card

PURPOSE OR GENERAL IDEA OF BILL: To enact privacy protections to
prevent the scanning of an individual's New York state driver's
license or identification card by any entity except in certain
specific circumstances, and to prevent the collection, dissemination,
or sale of such information to any third party.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new section 399-hh to the general business law, which
establishes provisions prohibiting the scanning of the
machine-readable zone of an individual's New York state driver's
license or identification card, except for certain purposes. Section 1
also establishes that no entity may retain information obtained from
scanning an individual's driver's license or identification card or
sell or disseminate such information to a third party, except for
purposes expressly permitted by Section 1. It also establishes that
entities covered under this section shall make reasonable efforts to
ensure that the requirements of this section are met. It establishes
the fine for a violation of this section to be a civil penalty of not
more than one thousand dollars. It also defines "consumer reporting
agency", "covered entity", "debt collector", and "financial
institution".

Section 2 amends subdivision 8 of section 65-b of the alcoholic
beverage control law to add a line reflecting that the penalty for
violating this section is in accordance with the new section 399-hh of
the general business law.

Section 3 provides that the act shall take effect immediately.

JUSTIFICATION: As internet access and commerce becomes more
ubiquitous in our everyday lives, the issue of securing the private
information of New York state citizens and protecting it from
dissemination and sale to third parties has come into sharper focus.
It is crucial that New York state enact laws which prevent theft and
misuse of personal identifying information, particularly information
contained on New York state driver's licenses and identification
cards.

This legislation would prohibit any person, business, firm,
partnership, association, or corporation from scanning an individual's
New York state driver's license or identification card other than for
certain specified purposes, including verifying the identity of an
individual making a purchase with a method other than cash, verifying
an individual's age when providing age-restricted goods or services,
fraud prevention, or for authorized credit reporting or medical record
purposes. It would also prevent these entities from retaining this
personal identifying information or selling or disseminating it to any
unauthorized third parties.

PRIOR LEGISLATIVE HISTORY: New Legislation


FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  7538

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business  law  and  the  alcoholic  beverage
  control  law,  in relation to the unlawful use of New York state driv-
  er's license or identification card

  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-hh to read as follows:
  S 399-HH. UNLAWFUL USE OF NEW YORK STATE DRIVER'S LICENSE OR IDENTIFI-
CATION  CARD. 1. NO PERSON, BUSINESS, FIRM, PARTNERSHIP, ASSOCIATION, OR
CORPORATION, NOT INCLUDING THE STATE OR ITS POLITICAL SUBDIVISIONS,  MAY
SCAN  THE  MACHINE-READABLE ZONE OF AN INDIVIDUAL'S NEW YORK STATE DRIV-
ER'S LICENSE OR IDENTIFICATION CARD AS DEFINED IN SECTION  FOUR  HUNDRED
NINETY  OF  THE  VEHICLE  AND  TRAFFIC  LAW,  EXCEPT  FOR  THE FOLLOWING
PURPOSES:
  A. TO VERIFY AUTHENTICITY OF THE DRIVER'S  LICENSE  OR  IDENTIFICATION
CARD  OR TO VERIFY THE IDENTITY OF THE INDIVIDUAL IF THE INDIVIDUAL PAYS
FOR GOODS OR SERVICES WITH A METHOD OTHER THAN CASH, RETURNS AN ITEM, OR
REQUESTS A REFUND OR EXCHANGE;
  B. TO VERIFY THE INDIVIDUAL'S AGE WHEN PROVIDING AGE-RESTRICTED  GOODS
OR SERVICES TO THE INDIVIDUAL;
  C.  TO  PREVENT  FRAUD  OR  OTHER  CRIMINAL ACTIVITY IF THE INDIVIDUAL
RETURNS AN ITEM OR REQUESTS A REFUND OR AN  EXCHANGE  AND  THE  BUSINESS
USES A FRAUD PREVENTION SERVICE COMPANY OR SYSTEM. INFORMATION COLLECTED
BY  SCANNING  AN  INDIVIDUAL'S  DRIVER'S  LICENSE OR IDENTIFICATION CARD
PURSUANT TO THIS SUBDIVISION SHALL BE LIMITED TO THE FOLLOWING  INFORMA-
TION FROM THE INDIVIDUAL:
  (1) NAME;
  (2) ADDRESS;
  (3) DATE OF BIRTH; AND
  (4) DRIVER'S LICENSE NUMBER OR IDENTIFICATION CARD NUMBER;
  D.  TO RECORD, RETAIN, OR TRANSMIT INFORMATION AS REQUIRED BY STATE OR
FEDERAL LAW;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15133-01-4

S. 7538                             2

  E. TO TRANSMIT INFORMATION TO A CONSUMER REPORTING  AGENCY,  FINANCIAL
INSTITUTION,  OR  DEBT  COLLECTOR TO BE USED AS PERMITTED BY THE FEDERAL
FAIR CREDIT REPORTING ACT, GRAMM-LEACH-BLILEY  ACT,  OR  THE  FAIR  DEBT
COLLECTION PRACTICES ACT; OR
  F.  TO  RECORD,  RETAIN,  OR  TRANSMIT INFORMATION BY A COVERED ENTITY
GOVERNED BY THE MEDICAL PRIVACY AND SECURITY RULES ISSUED BY THE FEDERAL
DEPARTMENT OF HEALTH AND HUMAN SERVICES, PARTS 160 AND 164 OF  THE  CODE
OF  FEDERAL  REGULATIONS,  ESTABLISHED  PURSUANT TO THE HEALTH INSURANCE
PORTABILITY AND AVAILABILITY ACT OF 1996.
  2. NO PERSON, BUSINESS,  FIRM,  PARTNERSHIP,  ASSOCIATION,  OR  CORPO-
RATION,  NOT  INCLUDING  THE  STATE OR ITS POLITICAL SUBDIVISIONS, SHALL
RETAIN ANY INFORMATION OBTAINED FROM SCANNING AN INDIVIDUAL'S  NEW  YORK
STATE  DRIVER'S  LICENSE  OR IDENTIFICATION CARD, EXCEPT AS PERMITTED IN
SUBDIVISION ONE OF THIS SECTION.
  3. NO PERSON, BUSINESS,  FIRM,  PARTNERSHIP,  ASSOCIATION,  OR  CORPO-
RATION,  NOT  INCLUDING  THE  STATE OR ITS POLITICAL SUBDIVISIONS, SHALL
SELL OR DISSEMINATE TO A THIRD PARTY ANY INFORMATION OBTAINED UNDER THIS
SECTION FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO, MARKETING, ADVER-
TISING, OR PROMOTIONAL ACTIVITIES, EXCEPT AS  PERMITTED  IN  SUBDIVISION
ONE OF THIS SECTION.
  4. A PERSON, BUSINESS, FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION,
NOT  INCLUDING  THE  STATE  OR ITS POLITICAL SUBDIVISIONS, COVERED UNDER
THIS SECTION SHALL MAKE REASONABLE EFFORTS, THROUGH SYSTEMS TESTING  AND
OTHER MEANS, TO ENSURE THAT THE REQUIREMENTS OF THIS SECTION ARE MET.
  5.  ANY  WAIVER  OF  A PROVISION OF THIS SECTION IS CONTRARY TO PUBLIC
POLICY AND IS VOID AND UNENFORCEABLE.
  6. EACH VIOLATION OF THIS SECTION  SHALL  BE  PUNISHABLE  BY  A  CIVIL
PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS.
  7. FOR THE PURPOSES OF THIS SECTION:
  A.  "CONSUMER  REPORTING AGENCY" SHALL HAVE THE SAME MEANING AS IN THE
FEDERAL FAIR CREDIT REPORTING ACT, TITLE 15 UNITED STATES  CODE  SECTION
1681A(F).
  B.  "COVERED  ENTITY"  SHALL  HAVE THE SAME MEANING AS IN THE SECURITY
RULES ISSUED BY THE FEDERAL DEPARTMENT OF  HEALTH  AND  HUMAN  SERVICES,
PARTS 160 AND 164 OF THE CODE OF FEDERAL REGULATIONS, ESTABLISHED PURSU-
ANT TO THE HEALTH INSURANCE PORTABILITY AND AVAILABILITY ACT OF 1996.
  C. "DEBT COLLECTOR" SHALL HAVE THE SAME MEANING AS IN THE FEDERAL FAIR
DEBT  COLLECTION  PRACTICES  ACT,  TITLE  15  UNITED STATES CODE SECTION
1692A.
  D. "FINANCIAL INSTITUTION" SHALL HAVE  THE  SAME  MEANING  AS  IN  THE
FEDERAL  GRAMM-LEACH-BLILEY  ACT,  TITLE  15  UNITED STATES CODE SECTION
6809.
  S 2. Subdivision 8 of section 65-b of the alcoholic  beverage  control
law,  as added by chapter 519 of the laws of 1999, is amended to read as
follows:
  8. A licensee or agent or employee of such licensee shall only use the
information recorded and maintained through the use of such devices  for
the  purposes  contained  in  paragraph (a) of subdivision seven of this
section, and [shall only use such devices for the purposes contained  in
subdivision  two  of this section. No licensee or agent or employee of a
licensee shall resell or disseminate  the  information  recorded  during
such  scan  to any third person. Such prohibited resale or dissemination
includes, but is not limited to, any advertising,  marketing  or  promo-
tional  activities.  Notwithstanding  the  restrictions  imposed by this
subdivision, such records may be released pursuant to  a  court  ordered
subpoena  or  pursuant to any other statute that specifically authorizes

S. 7538                             3

the release of such information.  Each  violation  of  this  subdivision
shall  be  punishable  by  a civil penalty of not more than one thousand
dollars] IN ACCORDANCE WITH AND SUBJECT TO  THE  PROVISIONS  OF  SECTION
THREE HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW.
  S 2. This act shall take effect immediately.

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