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

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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2019-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

2019-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.

2019-S1404 (ACTIVE) - Sponsor Memo

2019-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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