senate Bill S1404

2019-2020 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 14, 2019 referred to consumer protection

S1404 (ACTIVE) - Details

Current Committee:
Senate Consumer Protection
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
2015-2016: S4778
2017-2018: S4056

S1404 (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.

S1404 (ACTIVE) - Sponsor Memo

S1404 (ACTIVE) - Bill Text download pdf


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

                                  1404

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 14, 2019
                               ___________

Introduced  by Sen. CARLUCCI -- 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 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:
  §  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. § 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;
  (C) IN ORDER TO MAINTAIN OR SERVICE THE CONSUMER'S ACCOUNT HELD BY THE
ISSUER OF THE CREDIT OR DEBIT CARD; OR
  (D) TO PROTECT AGAINST OR PREVENT ACTUAL OR POTENTIAL FRAUD, UNAUTHOR-
IZED TRANSACTIONS, CLAIMS, OR OTHER LIABILITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06487-01-9

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