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

                                  7398

                            I N  S E N A T E

                              April 7, 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
393-e to read as follows:
  S 393-E. 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  SERVICE  PROVIDER  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 IN THIS SECTION 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 SERVICE PROVIDER 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 ADDI-
TIONAL  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  CONSUMER'S MONTHLY PAYMENT IS VARIABLE, AN AVERAGE FOR SUCH CONSUM-
ER'S MONTHLY BILLING.
  4. ANY SERVICE PROVIDER FOUND BY A COURT OF COMPETENT JURISDICTION  TO
HAVE  VIOLATED SUBDIVISION TWO OR THREE OF THIS SECTION SHALL BE SUBJECT
TO A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS NOR MORE THAN ONE  THOU-
SAND DOLLARS FOR EACH SUCH VIOLATION.

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

                                                           LBD00652-20-0

S. 7398                             2

  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 on the thirtieth day after it shall
have become a law.