Relates to the limitations on the use of social security numbers; defines "organization" and "informed written consent"; provides that no organization shall sell, share, lease or trade an individual's social security number with any other person without informed written consent of the individual to whom the social security number pertains.
BILL NUMBER:A9862
TITLE OF BILL: An act to amend the general business law, in relation to
limitations of the use of social security numbers
PURPOSE: This legislation would prohibit any organization to sell,
share, lease or trade an individual's Social Security number (SSN) with-
out informed written consent of the individual whose SSN it is, except
where required by state or federal law.
SUMMARY OF PROVISIONS: Section two of this measure amends the General
Business Law, adding a new section 144, regarding the limitation's of
the use of SSN's.
JUSTIFICATION: With the dawning and subsequent explosion of the high
tech age, identity theft has become one of the fastest growing crimes in
our nation. According to statistics from the Secret Service Agency,
investigations of financial crimes involving identity fraud has climbed
steadily from $442 million in 1995, to $450 million in 1996 to an alarm-
ing $745 million in 1997.
In Western New York an individual victimized by this crime faced armed
bounty hunters in her home demanding the return of a $24,000 luxury car
that was in fact leased, and ultimately stolen, by someone using her
social security number and credit history. This perpetrator did not even
use the same last name, gave an entirely different home and business
S T A T E O F N E W Y O R K
________________________________________________________________________
9862
I N A S S E M B L Y
February 4, 2010
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to limitations of
the use of social security numbers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and declaration. The original purpose
of the social security number was to serve as a mechanism for the feder-
al government to track the earnings of an individual in order to deter-
mine the amount of social security taxes to credit to the individual's
account. Since its creation, the social security number has been used
for numerous purposes by private businesses as well as government. The
increased use of the social security number has led to invasion of indi-
viduals' privacy as well as fraud and identity theft. In the absence of
federal statutory provisions protecting social security numbers from
misuse, the legislature finds it necessary and appropriate to provide
for such protections in this state.
S 2. The general business law is amended by adding a new section 144
to read as follows:
S 144. LIMITATIONS OF THE USE OF SOCIAL SECURITY NUMBERS. 1. DEFI-
NITIONS:
(A) "ORGANIZATION" SHALL MEAN ANY NATURAL PERSON, GOVERNMENTAL AGENCY
OR UNIT, CORPORATION, TRUST, UNINCORPORATED ASSOCIATION, NOT-FOR-PROFIT
ORGANIZATION, PARTNERSHIP, AFFILIATE AND ANY OTHER COMMERCIAL ENTITY
LOCATED OR DOING BUSINESS IN THE STATE.
(B) "INFORMED WRITTEN CONSENT" MEANS WRITTEN CONSENT GIVEN AFTER BEING
INFORMED WHETHER PROVIDING A SOCIAL SECURITY NUMBER IS VOLUNTARY OR
MANDATORY, WHAT STATUTORY AUTHORITY REQUIRES PROVIDING THE NUMBER AND
HOW SUCH NUMBER WILL BE USED.
2. NO ORGANIZATION SHALL SELL, SHARE, LEASE, OR TRADE AN INDIVIDUAL'S
SOCIAL SECURITY NUMBER WITH ANY OTHER PERSON WITHOUT INFORMED WRITTEN
CONSENT OF THE INDIVIDUAL TO WHOM THE SOCIAL SECURITY NUMBER PERTAINS,
EXCEPT WHERE ALLOWED BY STATE OR FEDERAL LAW.
S 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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