S T A T E   O F   N E W   Y O R K
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                                  7318

                            I N  S E N A T E

                             March 29, 2010
                               ___________

Introduced  by  Sen. PERALTA -- 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,  in  relation  to  prohibiting
  providers  of service from solely relying upon consumer credit reports
  for the purpose of  determining  whether  to  provide  consumers  with
  service, or for the purpose of requiring the payment of a deposit, fee
  or higher rate

  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
391-q to read as follows:
  S 391-Q. SERVICE PROVIDERS; USE OF CONSUMER CREDIT  REPORTS.    1.  AS
USED IN THIS SECTION, THE TERM "SERVICE PROVIDER" SHALL INCLUDE, BUT NOT
BE LIMITED TO, PUBLIC UTILITIES AND INSURANCE COMPANIES.
  2.    NO  PERSON  OR  ENTITY  ENGAGED IN THE BUSINESS OF PROVIDING ANY
SERVICE IN THIS STATE SHALL RELY SOLELY UPON THE CONSUMER CREDIT REPORT,
AS DEFINED IN SUBDIVISION (L) OF SECTION THREE HUNDRED EIGHTY-A OF  THIS
CHAPTER,  OF ANY POTENTIAL CUSTOMER OR CUSTOMERS IN THE DETERMINATION OF
WHAT RATES OR PRICES TO CHARGE A CUSTOMER OR CUSTOMERS.  NOTHING  HEREIN
SHALL PROHIBIT A SERVICE PROVIDER FROM REVIEWING OR UTILIZING A CONSUMER
CREDIT  REPORT  IN  DETERMINING WHETHER AN APPLICANT MUST PROVIDE SURETY
PRIOR TO PROVIDING SERVICES.
  3. NO PERSON OR ENTITY  ENGAGED  IN  THE  BUSINESS  OF  PROVIDING  ANY
SERVICE  IN  THIS STATE SHALL SOLELY UTILIZE THE CONSUMER CREDIT REPORT,
AS DEFINED IN SUBDIVISION (1) OF SECTION THREE HUNDRED EIGHTY-A OF  THIS
CHAPTER,  OF  ANY  POTENTIAL  CUSTOMER  OR  CUSTOMERS FOR THE PURPOSE OF
REQUIRING THE POTENTIAL CUSTOMER OR CUSTOMERS TO PAY AN  ADDITIONAL  FEE
OR  HIGHER  RATE  FOR  THE  PROVISION OR CONTINUANCE OF THE PROVISION OF
SERVICE.  ANY DEPOSIT REQUIRED BY A SERVICE PROVIDER SHALL NOT EXCEED  A
MONTHLY  PAYMENT AS REQUIRED BY SUCH SERVICE PROVIDER, OR IF THE CONSUM-
ER'S MONTHLY PAYMENT IS VARIABLE, AN AVERAGE FOR SUCH CONSUMER'S MONTHLY
BILLING.
  4. ANY PERSON OR ENTITY FOUND BY A COURT OF COMPETENT JURISDICTION  TO
HAVE  VIOLATED SUBDIVISION TWO OR THREE OF THIS SECTION SHALL BE SUBJECT

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

                                                           LBD00652-22-0

S. 7318                             2

TO A PENALTY OF NOT LESS THAN FIVE HUNDRED DOLLARS  NOR  MORE  THAN  ONE
THOUSAND DOLLARS FOR EACH SUCH VIOLATION.
  5. (A) WHENEVER THERE SHALL BE A VIOLATION OF SUBDIVISION TWO OR THREE
OF  THIS  SECTION, AN APPLICATION MAY BE MADE BY THE ATTORNEY GENERAL IN
THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OF  COMPETENT
JURISDICTION BY A SPECIAL PROCEEDING FOR THE IMPOSITION OF A FINE OR THE
ISSUANCE  OF  AN  INJUNCTION AGAINST ANY VIOLATION OF THIS SECTION, UPON
NOTICE TO THE SERVICE PROVIDER OF NOT LESS THAN FIVE DAYS, TO ENJOIN AND
RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS.
  (B) IF THE COURT FINDS THAT THE DEFENDANT HAS, IN FACT, VIOLATED  THIS
SECTION,  AN  INJUNCTION  MAY  BE  ISSUED  BY  SUCH COURT, ENJOINING AND
RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY.
  (C)  IN  ANY  PROCEEDING  PURSUANT  TO THIS SUBDIVISION, THE COURT MAY
DIRECT RESTITUTION AND  MAKE  ALLOWANCES  TO  THE  ATTORNEY  GENERAL  AS
PROVIDED IN SECTION SIXTY-THREE OF THE EXECUTIVE LAW.
  (D)  IN  SUPPORT  OF ANY APPLICATION PURSUANT TO THIS SUBDIVISION, THE
ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF, DETERMINE  RELEVANT  FACTS
AND ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
  S 2. This act shall take effect immediately.