Assembly Bill A8992

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

                                  8992

                          I N  A S S E M B L Y

                            January 12, 2012
                               ___________

Introduced  by  M.  of  A.  DINOWITZ,  GLICK,  GUNTHER, MILLMAN, REILLY,
  GABRYSZAK, ORTIZ, GALEF, MAISEL, COLTON, M. MILLER,  P. RIVERA,  WEIN-
  STEIN  --  Multi-Sponsored  by  -- M. of A. CASTRO, COOK, ENGLEBRIGHT,
  LIFTON, MAGEE, MARKEY, SCHIMEL, SWEENEY, THIELE,  WEISENBERG  --  read
  once and referred to the Committee on Consumer Affairs and Protection

AN  ACT to amend the general business law, in relation to the disclosure
  of social security numbers

  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-ddd to read as follows:
  S  399-DDD.  DISCLOSURE OF SOCIAL SECURITY NUMBER. 1.  AS USED IN THIS
SECTION, "SOCIAL SECURITY  ACCOUNT  NUMBER"  SHALL  INCLUDE  THE  NUMBER
ISSUED  BY  THE  FEDERAL  SOCIAL  SECURITY ADMINISTRATION AND ANY NUMBER
DERIVED FROM SUCH NUMBER.  SUCH TERM SHALL NOT INCLUDE ANY  NUMBER  THAT
HAS BEEN ENCRYPTED.
  2.  NO  PERSON,  FIRM,  PARTNERSHIP,  ASSOCIATION  OR CORPORATION, NOT
INCLUDING THE STATE OR ITS  POLITICAL  SUBDIVISIONS,  SHALL  REQUIRE  AN
INDIVIDUAL  TO  DISCLOSE  OR  FURNISH HIS OR HER SOCIAL SECURITY ACCOUNT
NUMBER, FOR ANY PURPOSE IN CONNECTION WITH ANY ACTIVITY,  OR  TO  REFUSE
ANY  SERVICE,  PRIVILEGE  OR  RIGHT  TO  AN  INDIVIDUAL WHOLLY OR PARTLY
BECAUSE SUCH INDIVIDUAL REFUSES TO  DISCLOSE  OR  FURNISH  SUCH  NUMBER,
UNLESS  ONE  OF  THE  EXCEPTIONS ENUMERATED IN SUBDIVISION THREE OF THIS
SECTION APPLIES.
  3. THE PROVISIONS OF THIS SECTION SHALL NOT  APPLY  IN  THE  FOLLOWING
INSTANCES:
  (A)  THE  INDIVIDUAL  CONSENTS TO THE ACQUISITION OR USE OF HIS OR HER
SOCIAL SECURITY ACCOUNT NUMBER.
  (B) THE SOCIAL SECURITY ACCOUNT NUMBER IS EXPRESSLY REQUIRED BY FEDER-
AL, STATE, OR LOCAL LAW OR REGULATION.
  (C) THE SOCIAL SECURITY ACCOUNT NUMBER IS  TO  BE  USED  FOR  INTERNAL
VERIFICATION OR FRAUD INVESTIGATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01061-04-1

              

A. 8992                             2

  (D)  THE SOCIAL SECURITY ACCOUNT NUMBER IS TO BE USED FOR ANY BUSINESS
FUNCTION PERMITTED OR ALLOWED UNDER THE GRAMM  LEACH  BLILEY  ACT,  P.L.
106-102 (1999).
  (E) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
A  REQUEST  FOR CREDIT OR A CREDIT TRANSACTION INITIATED BY THE CONSUMER
OR IN CONNECTION WITH A LAWFUL REQUEST FOR A CONSUMER REPORT OR INVESTI-
GATIVE CONSUMER REPORT, AS SUCH  TERMS  ARE  DEFINED  IN  SECTION  THREE
HUNDRED EIGHTY-A OF THIS CHAPTER.
  (F) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
A DEPOSIT ACCOUNT OR AN INVESTMENT.
  (G)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR PURPOSES OF
EMPLOYMENT, INCLUDING IN THE COURSE OF THE ADMINISTRATION  OF  A  CLAIM,
BENEFIT,  OR  PROCEDURE  RELATED  TO  THE INDIVIDUAL'S EMPLOYMENT BY THE
PERSON, INCLUDING THE INDIVIDUAL'S TERMINATION FROM EMPLOYMENT,  RETIRE-
MENT  FROM  EMPLOYMENT, INJURY SUFFERED DURING THE COURSE OF EMPLOYMENT,
OR TO CHECK ON AN UNEMPLOYMENT INSURANCE CLAIM OF THE INDIVIDUAL.
  (H) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED  FOR  PURPOSES  OF
TAX COMPLIANCE.
  (I)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE
OF:
  I. THE COLLECTION OF CHILD OR SPOUSAL SUPPORT;
  II. DETERMINING WHETHER AN INDIVIDUAL HAS A CRIMINAL RECORD; OR
  III. BLOOD OR ORGAN DONATION.
  (J) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
ANY INTERACTION WITH A GOVERNMENTAL LAW ENFORCEMENT AGENCY OR IS USED IN
CONJUNCTION WITH THE ENFORCEMENT OF A JUDGMENT OF A COURT  OF  COMPETENT
JURISDICTION BY A SHERIFF OR MARSHAL.
  (K) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE OF
VERIFYING  AN  INDIVIDUAL'S IDENTITY OR AGE IN ORDER TO ALLOW SUCH INDI-
VIDUAL TO OBTAIN ACCESS TO, OR ENROLL IN, A MARKETING  PROGRAM  THAT  IS
RESTRICTED TO INDIVIDUALS OF A CERTAIN AGE.
  (L)  I. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVID-
UAL, FIRM, CORPORATION, OR OTHER ENTITY DOING  BUSINESS  PURSUANT  TO  A
FRANCHISE  ISSUED  BY A POLITICAL SUBDIVISION OF THE STATE OR A LICENSE,
FRANCHISE, CERTIFICATE OR OTHER AUTHORIZATION ISSUED  BY  THE  NEW  YORK
STATE PUBLIC SERVICE COMMISSION.
  II.  THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVIDUAL,
FIRM, CORPORATION, OR OTHER ENTITY  REGULATED  BY  THE  NEW  YORK  STATE
PUBLIC SERVICE COMMISSION, THE FEDERAL COMMUNICATIONS COMMISSION, OR THE
FEDERAL ENERGY REGULATORY COMMISSION.
  III.  THE  SOCIAL  SECURITY  ACCOUNT  NUMBER IS REQUESTED BY A BANKING
INSTITUTION, AS DEFINED IN SECTION NINE-F OF THE BANKING LAW, OR ONE  OF
ITS AFFILIATES.
  (M)  THE  SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN AUTHORIZED
INSURER, AS DEFINED IN SECTION ONE HUNDRED SEVEN OF THE  INSURANCE  LAW,
FOR  THE  PURPOSE  OF FURNISHING INFORMATION TO THE CENTERS FOR MEDICARE
AND MEDICAID SERVICES WITHIN THE UNITED STATES DEPARTMENT OF HEALTH  AND
HUMAN SERVICES.
  4.  WHENEVER  THERE  SHALL BE A VIOLATION OF THIS SECTION, APPLICATION
MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
VIOLATION;  AND  IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
JUSTICE THAT THE DEFENDANT HAS,  IN  FACT,  VIOLATED  THIS  SECTION,  AN
INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND

A. 8992                             3

RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
TION.  IN  CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY
GENERAL IS AUTHORIZED TO TAKE PROOF AND  MAKE  A  DETERMINATION  OF  THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE  LAW AND RULES. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION
OF SUBDIVISION TWO OF THIS SECTION HAS OCCURRED, THE COURT SHALL  IMPOSE
A  CIVIL  PENALTY  OF  NOT  MORE  THAN  FIVE HUNDRED DOLLARS. THE SECOND
OFFENSE AND ANY OFFENSE COMMITTED THEREAFTER SHALL BE  PUNISHABLE  BY  A
CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS.
  5.  ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
FUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL  DAMAGES  OR
FIFTY  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 UP TO ONE THOUSAND DOLLARS, IF
THE COURT FINDS THE  DEFENDANT  WILLFULLY  OR  KNOWINGLY  VIOLATED  THIS
SECTION.  THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO A PREVAILING
PLAINTIFF.
  6. NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION  SHALL  BE
DEEMED  TO  HAVE VIOLATED THE PROVISIONS OF THIS SECTION IF SUCH PERSON,
FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHOWS, BY A  PREPONDERANCE
OF  THE  EVIDENCE,  THAT  THE VIOLATION WAS NOT INTENTIONAL AND RESULTED
FROM A BONA FIDE ERROR MADE NOTWITHSTANDING THE  MAINTENANCE  OF  PROCE-
DURES REASONABLY ADOPTED TO AVOID SUCH ERROR.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.