NY State Senate Bill 2017-S7038

Archive: Last Bill Status - In Senate Committee Consumer Protection 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to consumer protection

2017-S7038 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §380-t, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S2704

2017-S7038 (ACTIVE) - Summary

Prohibits consumer credit reporting agencies from charging a fee to a consumer requesting the placement of a security freeze.

2017-S7038 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7038

SPONSOR: KENNEDY
 
TITLE OF BILL:  An act to amend the general business law, in relation
to a consumer credit reporting agency's actions following a security
breach

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prevent credit reporting agencies from
penalizing customers who choose to freeze or lift a freeze from their
credit report following a security breach of the consumer reporting
agency.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the general business law by adding a new paragraph 3 to
section 380-t prohibiting a consumer reporting agency from charging a
fee to customers that request the placement of the lifting of a security
freeze on their reports following the incident of a security breach of
the agency.

Section 2 is the effective date.

 
JUSTIFICATION:

In recent years security breaches have become alarmingly common. From
department stores to consumer credit agencies, much of consumers' data
is vulnerable to security breaches and other cyber crimes.

With this increasing prevalence of cyber crimes, consumers need to be
able to protect themselves following a data breach. Following the most
recent breaches, consumers have clamored to freeze their credit files to
prevent hackers from opening new accounts in their names and using their
personal information.

Unfortunately, some consumer reporting agencies have attempted to finan-
cially benefit from these situations, although it was their company that
made the data vulnerable in the first place. These agencies are charging
their customer for placing and removing credit freezes following a
breach.

Prohibiting these agencies from charging consumers who are attempting to
protect their own data will give those who were affected in breaches
some agency over their data.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7038 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7038
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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  a  consumer
   credit reporting agency's actions following a security breach

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (n) of section 380-t of  the  general  business
 law is amended by adding a new paragraph 3 to read as follows:
   (3)  NO  CONSUMER  CREDIT  REPORTING  AGENCY  SHALL  CHARGE A FEE TO A
 CONSUMER REQUESTING THE PLACEMENT OF A SECURITY FREEZE OR THE LIFTING OF
 A SECURITY FREEZE FOLLOWING A  SECURITY  BREACH  OF  A  CONSUMER  CREDIT
 REPORTING AGENCY.
   FOR  THE  PURPOSES  OF  THIS  PARAGRAPH, THE TERM "BREACH OF SECURITY"
 SHALL MEAN THE UNAUTHORIZED DISCLOSURE OR USE BY AN EMPLOYEE OR AGENT OF
 AN AGENCY, OR THE UNAUTHORIZED  POSSESSION  BY  SOMEONE  OTHER  THAN  AN
 EMPLOYEE OR AGENT OF AN AGENCY, OF PERSONAL IDENTIFYING INFORMATION THAT
 COMPROMISES  THE SECURITY, CONFIDENTIALITY OR INTEGRITY OF SUCH INFORMA-
 TION. GOOD FAITH OR INADVERTENT POSSESSION OF ANY  PERSONAL  IDENTIFYING
 INFORMATION  BY  AN  EMPLOYEE  OR  AGENT OF AN AGENCY FOR THE LEGITIMATE
 PURPOSES OF THE AGENCY, AND GOOD FAITH OR LEGALLY MANDATED DISCLOSURE OF
 ANY PERSONAL IDENTIFYING INFORMATION BY AN EMPLOYEE OR AGENT OF AN AGEN-
 CY FOR THE LEGITIMATE PURPOSES OF THE  AGENCY  SHALL  NOT  CONSTITUTE  A
 BREACH OF SECURITY.
   §  2.  This  act  shall take effect immediately and shall apply to any
 data breach that occurred on or after January 1, 2017.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13705-01-7

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Senate Bill S7038

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2017-S7038 (ACTIVE) - Details

2017-S7038 (ACTIVE) - Summary

2017-S7038 (ACTIVE) - Sponsor Memo

2017-S7038 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7038

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2017-S7038 (ACTIVE) - Details

2017-S7038 (ACTIVE) - Summary

2017-S7038 (ACTIVE) - Sponsor Memo

2017-S7038 (ACTIVE) - Bill Text download pdf

Comments