NY State Senate Bill 2009-S222

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to energy and telecommunications
Jan 07, 2009	referred to energy and telecommunications

2009-S222 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §119-d, Pub Serv L
Versions Introduced in 2011-2012 Legislative Session:: S2586

2009-S222 (ACTIVE) - Summary

Restricts the right of certain utility corporations to sell or otherwise distribute information concerning residential customers, subscriber names and addresses subjecting the same to regulations by the public service commission; prohibits such utility from disclosing and marketing certain other information about its customers; permits a violated customer to bring an action against such utility and imposes a fine of not more than $500 for a violation.

2009-S222 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S222

 TITLE OF BILL :
An act to amend the public service law, in relation to restricting the
distribution of information pertaining to customers which a gas
corporation, electric corporation, steam corporation or water-works
corporation may disclose


 SUMMARY :
The purpose of this bill is to ensure the privacy of public utility
customers. Under the bill, the Public Service commission would
regulate the sale by utility corporations, as defined in the proposed
law, of customer mailing lists consisting of residential customer or
subscriber names and addresses.

However, a utility would be prohibited from disclosing or marketing
the following information:

(a) the customer's service usage patterns, including any energy audit
information;
(b) the customer's social security number, credit rating or other
personal financial information;
(c) services obtained from the corporation;
(d) demographic information; and (e) any other information determined
by the PSC.

Prior to marketing or disclosing customer lists, utility corporations
must provide customer notification of the practice and provide a
service bill check-off mechanism or opt-out provision whereby
customers or subscribers could restrict the sale of their names and
addresses. The Public Service Commission may require additional
notification or other conditions on the sale of mailing lists. Any
person injured because of a violation of the provisions of this
section could bring an action in their own name to recover the greater
of their actual damages or $500, to enjoin the continuation of such
violations, or both. The court could, in its discretion, impose treble
damages for knowing and willful violations. Prevailing plaintiffs
could be awarded reasonable attorney's fees. In addition to the other
remedies, any corporation which violates any provision, shall be
liable for a civil fine of not more than $500 for each violation. The
existing authority of any court, department or agency to regulate the
practices of public utilities would not be limited by this bill.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :
The public service law is amended by adding a new section 119-d.

 JUSTIFICATION :
With the advances in computer technology, information access and
database management, public utilities have begun to compile and market
lists consisting of their customers' names, addresses and other data
to third parties. The information is often combined in predetermined
configurations or profiles without the knowledge or consent of
customers. The information is sold and then resold for purposes not
originally intended. This practice has serious intrusion implications.
In fact, knowledge of personal information such as a social security
Number enables individuals and businesses to access other data banks
of sensitive information. Numerous nationwide studies have revealed
that Americans are increasingly concerned about their personal privacy
and the use of personal information stored in files.

In
 TRENDS AND FORECASTS TECHNOLOGY AND CONSUMERS:  JOBS, EDUCATION,
PRIVACY  by Cambridge Reports, over 91% of those sampled indicated a
concern for their personal privacy. In an American Express study, 80%
of those surveyed believe that corporations should not disclose
personal information to third parties. Finally, in a 1990 survey
conducted by Harris, 'over 70% of those sampled indicated that
consumers have lost control over how personal information is
circulated and used.

Furthermore, while some indicated their approval for selling customer
lists they conditioned that consent on the ability to restrict the
release to certain third parties or having the opportunity to opt-out.
In addition to the findings of recent surveys, empirical evidence has
demonstrated the fact that consumer resistance to database marketing
is increasing. Chesapeake, Potomac and New York Telephone Companies,
for example, reversed decisions to market and rent their customer
listings due to the overwhelmingly negative reaction from customers
concerned about their privacy.

 FISCAL IMPLICATION :
None.

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

2009-S222 (ACTIVE) - Bill Text download pdf

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

                                   222

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to amend the public service law, in relation to restricting the
  distribution of information pertaining to customers which a gas corpo-
  ration, electric corporation, steam corporation or water-works  corpo-
  ration may disclose

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

  Section 1. The public service law is amended by adding a  new  section
119-d to read as follows:
  S  119-D. RESTRICTION ON AVAILABILITY OF INFORMATION; WRITTEN CONSENT;
TYPES OF INFORMATION. 1. FOR PURPOSES OF THIS SECTION THE  TERM  "CORPO-
RATION" SHALL MEAN A GAS CORPORATION, ELECTRIC CORPORATION, STEAM CORPO-
RATION OR WATER-WORKS CORPORATION.
  2.  NO CORPORATION SHALL SELL, DISCLOSE OR OTHERWISE MAKE AVAILABLE TO
ANY OTHER PERSON, FIRM, PARTNERSHIP, CORPORATION OR ASSOCIATION  OR  ANY
AGENT  OR  EMPLOYEE THEREOF ANY SUBSCRIBER INFORMATION OR MARKETING LIST
CONTAINING RESIDENTIAL CUSTOMER OR SUBSCRIBER  INFORMATION  WITHOUT  THE
PRIOR  APPROVAL OF THE COMMISSION. NO SUCH INFORMATION OR MARKETING LIST
MAY INCLUDE THE FOLLOWING:
  (A) THE RESIDENTIAL CUSTOMER'S OR SUBSCRIBER'S SERVICE USAGE PATTERNS,
INCLUDING ANY ENERGY AUDIT INFORMATION;
  (B) THE RESIDENTIAL CUSTOMER'S OR SUBSCRIBER'S SOCIAL SECURITY NUMBER,
CREDIT RATING OR OTHER PERSONAL FINANCIAL INFORMATION;
  (C) SERVICES OBTAINED FROM THE CORPORATION;
  (D)  DEMOGRAPHIC  INFORMATION  ABOUT  THE  RESIDENTIAL   CUSTOMER   OR
SUBSCRIBER, EITHER AS AN INDIVIDUAL OR IN THE AGGREGATE; AND
  (E) SUCH OTHER INFORMATION AS DETERMINED BY THE COMMISSION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02821-01-9

S. 222                              2

  3.  THE PROVISIONS OF THIS SECTION SHALL NOT PROHIBIT THE REPORTING BY
A CORPORATION OF THE  INFORMATION  ABOUT  A  RESIDENTIAL  CUSTOMER'S  OR
SUBSCRIBER'S  PAYMENT RECORD OF THE SERVICES PROVIDED BY THE CORPORATION
TO CONSUMER REPORTING AGENCIES FOR USE BY  SUCH  AGENCY,  IN  COMPLIANCE
WITH  THE PROVISIONS OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C.
SECTION 1681 ET SEQ.), ARTICLE TWENTY-FIVE OF THE GENERAL  BUSINESS  LAW
AND  ANY REGULATIONS PROMULGATED THEREUNDER, AS THEY MAY BE FROM TIME TO
TIME AMENDED.
  4.   EVERY CORPORATION, PRIOR  TO  SELLING,  DISCLOSING  OR  OTHERWISE
MAKING  AVAILABLE  SUBSCRIBER  INFORMATION OR MARKETING LISTS CONTAINING
RESIDENTIAL CUSTOMER OR SUBSCRIBER INFORMATION,  SHALL  PROVIDE  WRITTEN
NOTIFICATION  TO  ALL  OF  ITS RESIDENTIAL CUSTOMERS AND SUBSCRIBERS AND
INCLUDE SUCH NOTIFICATION WITHIN  THE  CUSTOMER  OR  SUBSCRIBER  SERVICE
BILL. SUCH WRITTEN NOTIFICATION SHALL DISCLOSE CLEARLY AND CONSPICUOUSLY
THE  CORPORATION'S  INTENTION.    SUCH  NOTICE SHALL PROVIDE A CHECK-OFF
MECHANISM WHEREBY  RESIDENTIAL  CUSTOMERS  AND  SUBSCRIBERS  MAY  REFUSE
PERMISSION  FOR INCLUSION OF THEIR NAME ON SUCH INFORMATION OR MARKETING
LIST.
  5. THE COMMISSION IS HEREBY DIRECTED TO REVIEW  ALL  MATERIALS  TO  BE
USED  FOR  RESIDENTIAL  CUSTOMER  OR  SUBSCRIBER  NOTIFICATION TO ENSURE
COMPLIANCE WITH THE PROVISIONS OF THIS  SECTION.  NOTHING  CONTAINED  IN
THIS  SECTION  SHALL  BE DEEMED TO PREEMPT THE COMMISSION FROM REQUIRING
ADDITIONAL NOTIFICATION OR OTHER CONDITIONS ON THE SALE  OF  RESIDENTIAL
CUSTOMER OR SUBSCRIBER NAMES AND ADDRESSES WHICH PROVIDE EQUAL OR GREAT-
ER PROTECTION TO RESIDENTIAL CUSTOMERS OR SUBSCRIBERS.
  6.    ANY PERSON WHO HAS BEEN INJURED BY REASON OF A VIOLATION OF THIS
SECTION MAY BRING AN ACTION IN HIS  OR  HER  OWN  NAME  TO  ENJOIN  SUCH
VIOLATION;  AN  ACTION  TO  RECOVER  HIS  OR  HER ACTUAL DAMAGES OR FIVE
HUNDRED DOLLARS, WHICHEVER IS GREATER; OR BOTH SUCH ACTIONS.  THE  COURT
MAY,  IN  ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT NOT
TO EXCEED THREE TIMES THE ACTUAL DAMAGES, IF THE COURT FINDS THE DEFEND-
ANT WILLFULLY OR KNOWINGLY VIOLATED ANY PROVISION OF THIS SECTION.   THE
COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO A PREVAILING PLAINTIFF.
  7. IN ADDITION TO THE OTHER REMEDIES PROVIDED FOR IN THIS SECTION, ANY
CORPORATION WHICH VIOLATES ANY PROVISION OF THIS SECTION SHALL BE LIABLE
FOR  A  CIVIL  PENALTY  NOT  TO  EXCEED  FIVE  HUNDRED  DOLLARS FOR EACH
VIOLATION. IN THE CASE OF A  VIOLATION  THROUGH  CONTINUING  FAILURE  TO
COMPLY  WITH  ANY PROVISION OF THIS SECTION, EACH DAY OF THE CONTINUANCE
OF SUCH FAILURE SHALL BE TREATED AS A SEPARATE VIOLATION.
  8. THE COMMISSION MAY PROMULGATE NECESSARY  REGULATIONS  TO  IMPLEMENT
THE PROVISIONS OF THIS SECTION.
  9.  THE  PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT OR
PREEMPT THE AUTHORITY OF ANY COURT, DEPARTMENT OR AGENCY OF THE STATE TO
REGULATE THE PRACTICES OF CORPORATIONS DOING BUSINESS IN THIS  STATE  AS
OTHERWISE PROVIDED BY LAW.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  all  actions  and procedures with respect to the proposed adoption,
amendment, suspension or repeal of any rule or regulation necessary  for
the timely implementation of this act are directed and authorized.

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Senate Bill S222

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2009-S222 (ACTIVE) - Details

2009-S222 (ACTIVE) - Summary

2009-S222 (ACTIVE) - Sponsor Memo

2009-S222 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Carl Kruger

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2009-S222 (ACTIVE) - Details

2009-S222 (ACTIVE) - Summary

2009-S222 (ACTIVE) - Sponsor Memo

2009-S222 (ACTIVE) - Bill Text download pdf

Comments