Senate Bill S4778

2015-2016 Legislative Session

Prohibits issuers of credit cards and debit cards from knowingly accepting or soliciting financial information of a cardholder from a third-party

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Archive: Last Bill Status - In Senate Committee Rules 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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Bill Amendments

2015-S4778 - Details

Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Add §518-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2011-2012: S5061
2013-2014: S760, S6280
2017-2018: S4056
2019-2020: S1404

2015-S4778 - Summary

Establishes issuers of credit cards and debit cards are prohibited from knowingly accepting or soliciting personal financial information of a cardholder from a third-party; establishes a civil penalty not to exceed two thousand dollars for each violation of this section.

2015-S4778 - Sponsor Memo

2015-S4778 - Bill Text download pdf

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

                                  4778

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by Sen. VENDITTO -- 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
  issuers  from accepting personal financial information of holders from
  a third-party

  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
518-b to read as follows:
  S  518-B. PROHIBITED CREDIT CARD USER INFORMATION REQUESTS. 1. ISSUERS
OF CREDIT CARDS AND DEBIT CARDS ARE PROHIBITED FROM KNOWINGLY  ACCEPTING
OR  SOLICITING  THE  PERSONAL  FINANCIAL  INFORMATION OF A HOLDER FROM A
THIRD-PARTY. PROVIDED, HOWEVER, THAT NO PROVISION OF THIS SECTION  SHALL
BE  DEEMED  TO  PROHIBIT  AN  ISSUER OF A CREDIT CARD OR DEBIT CARD FROM
ACCEPTING OR SOLICITING FROM  A  BANKING  ORGANIZATION,  AS  DEFINED  IN
SECTION TWO OF THE BANKING LAW, THE PERSONAL INFORMATION OF A HOLDER FOR
THE PURPOSE OF VERIFYING THE IDENTITY OF SUCH HOLDER AND PREVENT IMPROP-
ER OR UNAUTHORIZED USE.
  2. A VIOLATION OF THE PROVISIONS OF THIS SECTION BY AN ISSUER SHALL BE
PUNISHABLE  BY  A  CIVIL  PENALTY NOT TO EXCEED TWO THOUSAND DOLLARS FOR
EACH SUCH VIOLATION.
  S 2. This act shall  take  effect  on  the  first  of  September  next
succeeding the date on which it shall have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10403-01-5


              

2015-S4778A (ACTIVE) - Details

Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Add §518-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2011-2012: S5061
2013-2014: S760, S6280
2017-2018: S4056
2019-2020: S1404

2015-S4778A (ACTIVE) - Summary

Establishes issuers of credit cards and debit cards are prohibited from knowingly accepting or soliciting personal financial information of a cardholder from a third-party; establishes a civil penalty not to exceed two thousand dollars for each violation of this section.

2015-S4778A (ACTIVE) - Sponsor Memo

2015-S4778A (ACTIVE) - Bill Text download pdf

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

                                 4778--A
    Cal. No. 604

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by Sen. VENDITTO -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  recommitted to the Committee on Consumer Protection in accordance with
  Senate  Rule  6,  sec.  8  --  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  prohibiting
  issuers  from accepting nonpublic personal information of holders from
  a third-party

  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
518-b to read as follows:
  S  518-B. PROHIBITED CREDIT CARD USER INFORMATION REQUESTS. 1. ISSUERS
OF CREDIT CARDS AND DEBIT CARDS ARE PROHIBITED FROM ACCEPTING OR  SOLIC-
ITING THE NONPUBLIC PERSONAL INFORMATION OF A HOLDER FROM A THIRD-PARTY.
PROVIDED,  HOWEVER, THAT NO PROVISION OF THIS SECTION SHALL BE DEEMED TO
PROHIBIT AN ISSUER OF A CREDIT CARD OR  DEBIT  CARD  FROM  ACCEPTING  OR
SOLICITING FROM A BANKING ORGANIZATION, AS DEFINED IN SECTION TWO OF THE
BANKING  LAW,  THE  NONPUBLIC  PERSONAL  INFORMATION OF A HOLDER FOR THE
PURPOSE OF VERIFYING THE IDENTITY OF SUCH HOLDER AND PREVENTING IMPROPER
OR UNAUTHORIZED USE.
  2. NONPUBLIC PERSONAL INFORMATION SHALL HAVE THE SAME MEANING AS IN 15
U.S.C. S 6809(4).
  3. THIS  SECTION  SHALL  NOT  PROHIBIT  THE  DISCLOSURE  OF  NONPUBLIC
PERSONAL INFORMATION TO A THIRD PARTY:
  (A)  AS  NECESSARY  TO  EFFECT,  ADMINISTER,  OR ENFORCE A TRANSACTION
REQUESTED OR AUTHORIZED BY THE CONSUMER;
  (B) IN ORDER TO SERVICE OR PROCESS  A  FINANCIAL  PRODUCT  OR  SERVICE
REQUESTED OR AUTHORIZED BY THE CONSUMER;

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

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