senate Bill S1420B

2013-2014 Legislative Session

Relates to the personal information of a credit or debit card holder

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Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
May 14, 2014 advanced to third reading
May 13, 2014 2nd report cal.
May 12, 2014 1st report cal.602
Jan 08, 2014 referred to consumer protection
Jun 21, 2013 committed to rules
Jun 11, 2013 amended on third reading 1420b
May 29, 2013 amended on third reading 1420a
May 01, 2013 advanced to third reading
Apr 30, 2013 2nd report cal.
Apr 29, 2013 1st report cal.442
Jan 09, 2013 referred to consumer protection

Votes

view votes

May 12, 2014 - Consumer Protection committee Vote

S1420B
10
0
committee
10
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Consumer Protection committee vote details

Consumer Protection Committee Vote: May 12, 2014

aye wr (1)

Apr 29, 2013 - Consumer Protection committee Vote

S1420
10
0
committee
10
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Apr 29, 2013

aye wr (1)

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S1420 - Bill Details

See Assembly Version of this Bill:
A7284B
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd §520-a, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S6041, A9048

S1420 - Bill Texts

view summary

Relates to the personal information of a credit or debit card holder: adds zip code, email address and home, cell and work telephone numbers to the personal information protected.

view sponsor memo
BILL NUMBER:S1420

TITLE OF BILL:
An act
to amend the general business law, in relation to the personal
information of a credit or debit card holder

PURPOSE:
To protect consumers by prohibiting businesses from requiring personal
identification information to complete credit or debit card
transactions unless required by the credit or debit card issuer.

SUMMARY OF PROVISIONS:
Amends subdivision 3 of section 520-a of the general business law, as
amended by chapter 233 of the laws of 2007, to require that
businesses accepting credit or debit cards may not require the credit
or debit card holder to write or otherwise electronically enter any
personal identification information. Such personal identification
information includes but it not limited to address, zip code, email
address, and telephone numbers (home, cell, and work).

EXISTING LAW:
Current law prohibits retailers and businesses from requesting
personal information to complete a credit or debit card transaction.
However, personal information is loosely defined as address only.
Additionally, the current law does not prohibit businesses from
collecting electronically entered personal information.

JUSTIFICATION:
At present, many businesses in New York and other states across the
country require personal information, such as a zip code, when
consumers complete credit or debit card transactions, despite the
fact that such information is unnecessary when completing an
in-person transaction.
Such personal information can then be used in customized computer
software to perform reverse searches from databases that contain
millions of names, e-mail addresses, telephone numbers, and street
addresses that are indexed in a manner resembling a reverse
phonebook. The software can then match a person's name and zip code
with their previously undisclosed address, giving the business the
ability to market products to customers and to sell this information
to other businesses.

In February 2011, the Supreme Court of California held in Pineda v.
Williams-Sonoma Stores, Inc. that "personal identification
information," as the term is used in their state Credit Card Act,
includes a cardholder's zip code and that requesting and recording
such information violates the Credit Card Act. As such, businesses in
California can no longer require zip codes to complete
credit transactions unless required by the credit or debit card
issuer. A similar law suit was filed in Massachusetts in May 2011.

The language in the California Credit Card Act is nearly identical to
the language used in subdivision 3 of section 520-a of the general
business law in New York. By further defining what constitutes
"personal identification information," consumer interests in New York


can be protected. Additionally, by prohibiting such information from
being entered electronically, the statute becomes current with the
technological advances made since the statute was originally passed
in 1987.

LEGISLATIVE HISTORY:
2011-2012: S.6041 - Died in Committee

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  1420

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MONTGOMERY, KRUEGER -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection

AN ACT to amend the general business law, in relation  to  the  personal
  information of a credit or debit card holder

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

  Section 1. Subdivision 3 of section 520-a of the general business law,
as amended by chapter 233 of the laws of 2007, is  amended  to  read  as
follows:
  3. No person, firm, partnership or corporation which accepts credit or
debit  cards for the transaction of business shall require the credit or
debit card holder to write OR ELECTRONICALLY  ENTER  on  the  credit  or
debit  card transaction form, nor shall it write [or], cause to be writ-
ten, OR ELECTRONICALLY ENTERED on such form or on any attachment  there-
to,  any  personal identification information, including but not limited
to the credit or debit card  holder's  address  [or],  ZIP  CODE,  EMAIL
ADDRESS  OR  telephone  [number]  NUMBERS, INCLUDING HOME, CELL AND WORK
TELEPHONE NUMBERS, that is not required by  the  credit  or  debit  card
issuer  to  complete  the  credit  or  debit card transaction; provided,
however, that the credit or debit card holder's  address  and  telephone
number  may  be  required [on such form or attachment thereto] where (i)
such information is necessary for shipping, delivery or installation  of
purchased  merchandise  or for special orders; or (ii) the person, firm,
partnership or corporation processes credit or debit  card  transactions
by mailing transaction forms to a designated bankcard center for settle-
ment.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04040-01-3

Co-Sponsors

S1420A - Bill Details

See Assembly Version of this Bill:
A7284B
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd §520-a, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S6041, A9048

S1420A - Bill Texts

view summary

Relates to the personal information of a credit or debit card holder: adds zip code, email address and home, cell and work telephone numbers to the personal information protected.

view sponsor memo
BILL NUMBER:S1420A

TITLE OF BILL: An act to amend the general business law, in relation
to the personal information of a credit or debit card holder

PURPOSE:

To protect consumers by prohibiting businesses from requiring personal
identification information to complete credit or debit card
transactions unless required by the credit or debit card issuer.

SUMMARY OF PROVISIONS:

Amends subdivision 3 of section 520-a of the general business law, as
amended by chapter 233 of the laws of 2007, to require that businesses
accepting credit or debit cards may not require the credit or debit
card holder to write or otherwise electronically enter any personal
identification information, unless such information is solely for the
prevention of fraud, theft, or identity theft for sales transactions
at motor fuel dispensing devices at retail motor fuel dispensers. Such
personal identification information includes but it not limited to
address, zip code, email address, and telephone numbers (home, cell,
and work).

EXISTING LAW:

Current law prohibits retailers and businesses from requesting
personal information to complete a credit or debit card transaction.
However, personal information is loosely defined as address only.
Additionally, the current law does not prohibit businesses from
collecting electronically entered personal information.

JUSTIFICATION:

At present, many businesses in New York and other states across the
country require personal information, such as a zip code, when
consumers complete credit or debit card transactions, despite the fact
that such information is unnecessary when completing an in-person
transaction. Such personal information can then be used in customized
computer software to perform reverse searches from databases that
contain millions of names, e-mail addresses, telephone numbers, and
street addresses that are indexed in a manner resembling a reverse
phonebook. The software can then match a person's name and zip code
with their previously undisclosed address, giving the business the
ability to market products to customers and to sell this information
to other businesses.

In February 2011, the Supreme Court of California held in Pineda v.
Williams-Sonoma Stores, Inc. that "personal identification
information," as the term is used in their state Credit Card Act,
includes a cardholder's zip code and that requesting and recording
such information violates the Credit Card Act As such, businesses in
California can no longer require zip codes to complete credit
transactions unless required by the credit or debit card issuer. A
similar law suit was filed in Massachusetts in May 2011.


The language in the California Credit Card Act is nearly identical to
the language used in subdivision 3 of section 520-a of the general
business law in New York. By further defining what constitutes
"personal identification information," consumer interests in New York
can be protected. Additionally, by prohibiting such information from
being entered electronically, the statute becomes current with the
technological advances made since the statute was originally passed in
1987.

LEGISLATIVE HISTORY:

2011-2012: A.9048- Referred to Consumer Protection/ S.6041- Referred
to Rules

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1420--A
    Cal. No. 442

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MONTGOMERY, KRUEGER -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN  ACT  to  amend the general business law, in relation to the personal
  information of a credit or debit card holder

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

  Section 1. Subdivision 3 of section 520-a of the general business law,
as  amended  by  chapter  233 of the laws of 2007, is amended to read as
follows:
  3. No person, firm, partnership or corporation which accepts credit or
debit cards for the transaction of business shall require the credit  or
debit  card  holder  to  write  OR ELECTRONICALLY ENTER on the credit or
debit card transaction form, nor shall it write [or], cause to be  writ-
ten,  OR ELECTRONICALLY ENTERED on such form or on any attachment there-
to, any personal identification information, including but  not  limited
to  the  credit  or  debit  card  holder's address [or], ZIP CODE, EMAIL
ADDRESS OR telephone [number] NUMBERS, INCLUDING  HOME,  CELL  AND  WORK
TELEPHONE  NUMBERS,  that  is  not  required by the credit or debit card
issuer to complete the  credit  or  debit  card  transaction;  provided,
however,  that  the  credit or debit card holder's address, ZIP CODE and
telephone number may be required [on such form  or  attachment  thereto]
where  (i)  such  information  is  necessary  for  shipping, delivery or
installation of purchased merchandise or for special orders;  [or]  (ii)
the  person,  firm, partnership or corporation processes credit or debit
card transactions by mailing transaction forms to a designated  bankcard
center  for settlement; OR (III) SUCH INFORMATION IS USED SOLELY FOR THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04040-05-3

S. 1420--A                          2

PREVENTION OF FRAUD, THEFT, OR IDENTITY THEFT FOR SALES TRANSACTIONS  AT
MOTOR FUEL DISPENSING DEVICES AT RETAIL MOTOR FUEL DISPENSERS.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

S1420B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7284B
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd §520-a, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S6041, A9048

S1420B (ACTIVE) - Bill Texts

view summary

Relates to the personal information of a credit or debit card holder: adds zip code, email address and home, cell and work telephone numbers to the personal information protected.

view sponsor memo
BILL NUMBER:S1420B

TITLE OF BILL: An act to amend the general business law, in relation
to the personal information of a credit or debit card holder

PURPOSE:

To protect consumers by prohibiting businesses from requiting personal
identification information to complete credit or debit card
transactions unless required by the credit or debit card issuer.

SUMMARY OF PROVISIONS:

Amends subdivision 3 of section 520-a of the general business law, as
amended by chapter 233 of the laws of 2007, to require that businesses
accepting credit or debit cards may not require the credit or debit
card holder to write or otherwise electronically enter any personal
identification information, unless such information is solely for the
detection, investigation or prevention of fraud, theft, identity
theft, criminal activity or the enforcement of terms of sale. Such
personal identification information includes but it not limited to
address, zip code, email address, and telephone numbers (home, cell,
and work).

EXISTING LAW:

Current law prohibits retailers and businesses from requesting
personal information to complete a credit or debit card transaction.
However, personal information is loosely defined as address only.
Additionally, the current law does not prohibit businesses from
collecting electronically entered personal information.

JUSTIFICATION:

At present, many businesses in New York and other states across the
country require personal information, such as a zip code, when
consumers complete credit or debit card transactions, despite the fact
that such information is unnecessary when completing an in-person
transaction. Such personal information can then be used in customized
computer software to perform reverse searches from databases that
contain millions of names, e-mail addresses, telephone numbers, and
street addresses that are indexed in a manner resembling a reverse
phonebook. The software can then match a person's name and zip code
with their previously undisclosed address, giving the business the
ability to market products to customers and to sell this information
to other businesses.

In February 2011, the Supreme Court of California held in Pineda v.
Williams-Sonoma Stores, Inc. that "personal identification
information,"as the term is used in their state Credit Card Act,
includes a cardholder's zip code and that requesting and recording
such information violates the Credit Card Act As such, businesses in
California can no longer require zip codes to complete credit
transactions unless required by the credit or debit card issuer. A
similar law suit was filed in Massachusetts in May 2011.


The language in the California Credit Card Act is nearly identical to
the language used in subdivision 3 of section 520-a of the general
business law in New York. By further defining what constitutes
"personal identification information," consumer interests in New York
can be protected. Additionally, by prohibiting such information from
being entered electronically, the statute becomes current with the
technological advances made since the statute was originally passed in
1987.

LEGISLATIVE HISTORY:

2011-2012: A.9048- Referred to Consumer Protection/ S.6041- Referred
to Rules

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1420--B
    Cal. No. 442

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MONTGOMERY, KRUEGER -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted,  retaining its place in the order of third reading -- again
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT  to  amend the general business law, in relation to the personal
  information of a credit or debit card holder

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

  Section 1. Subdivision 3 of section 520-a of the general business law,
as  amended  by  chapter  233 of the laws of 2007, is amended to read as
follows:
  3. No person, firm, partnership or corporation which accepts credit or
debit cards for the transaction of business shall require the credit  or
debit  card  holder  to  write  OR ELECTRONICALLY ENTER on the credit or
debit card transaction form, nor shall it write [or], cause to be  writ-
ten,  OR ELECTRONICALLY ENTERED on such form or on any attachment there-
to, any personal identification information, including but  not  limited
to  the  credit  or  debit  card  holder's address [or], ZIP CODE, EMAIL
ADDRESS OR telephone [number] NUMBERS, INCLUDING  HOME,  CELL  AND  WORK
TELEPHONE  NUMBERS,  that  is  not  required by the credit or debit card
issuer to complete the  credit  or  debit  card  transaction;  provided,
however,  that  the  credit or debit card holder's address, ZIP CODE and
telephone number may be required [on such form  or  attachment  thereto]
where  (i)  such  information  is  necessary  for  shipping, delivery or
installation of purchased merchandise or for special orders;  [or]  (ii)
the  person,  firm, partnership or corporation processes credit or debit
card transactions by mailing transaction forms to a designated  bankcard

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04040-07-3

S. 1420--B                          2

center  for settlement; OR (III) SUCH INFORMATION IS USED SOLELY FOR THE
DETECTION, INVESTIGATION OR PREVENTION OF FRAUD, THEFT, IDENTITY  THEFT,
CRIMINAL  ACTIVITY  OR  ENFORCEMENT  OF  TERMS  OF SALE. NOTHING IN THIS
SUBDIVISION  SHALL  PREVENT  A PERSON, FIRM OR CORPORATION WHICH ACCEPTS
CREDIT CARDS OR DEBIT CARDS FROM REQUESTING THAT A CUSTOMER  VOLUNTARILY
PROVIDE  PERSONAL  IDENTIFICATION  WHERE  THE USE OF SUCH INFORMATION IS
DISCLOSED TO SUCH CONSUMER.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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