Bill Text: NY S02539 | 2019-2020 | General Assembly | Introduced


Bill Title: Instructs the department of financial services to regulate consumer reporting agencies by requiring licensing of credit reporting agencies, and allowing the department to examine the books and records of consumer reporting agencies.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2019-01-28 - REFERRED TO BANKS [S02539 Detail]

Download: New_York-2019-S02539-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2539
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 28, 2019
                                       ___________
        Introduced by Sens. COMRIE, ADDABBO, BAILEY, BROOKS, KENNEDY, KRUEGER --
          read  twice  and  ordered printed, and when printed to be committed to
          the Committee on Banks
        AN ACT to amend the financial services law, in relation to regulation of
          consumer reporting agencies
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The financial services law is amended by adding a new arti-
     2  cle 7 to read as follows:
     3                                  ARTICLE 7
     4                  REGULATION OF CONSUMER REPORTING AGENCIES
     5  Section 701. Definitions.
     6          702. Authority of superintendent.
     7          703. License requirements.
     8          704. Superintendent authorized to examine.
     9          705. Superintendent authorized to promulgate regulations.
    10    §  701.  Definitions.  For  the  purposes  of  this  article, the term
    11  "consumer reporting agency" shall mean any person  which,  for  monetary
    12  fees,  dues,  or  on a cooperative nonprofit basis, regularly engages in
    13  whole or in part in the practice of assembling  or  evaluating  consumer
    14  credit  information or other information on consumers for the purpose of
    15  furnishing consumer reports to third parties, and which uses  any  means
    16  or  facility  of  interstate  commerce  for  the purpose of preparing or
    17  furnishing consumer reports.
    18    § 702. Authority  of  superintendent.  The  superintendent  is  hereby
    19  authorized and empowered to make such general rules and regulations, and
    20  such specific rulings, demands, and findings as may be necessary for the
    21  proper conduct of the business authorized and licensed under and for the
    22  enforcement  of  this  article,  in addition hereto and not inconsistent
    23  herewith.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08657-01-9

        S. 2539                             2
     1    § 703. License requirements. (a) No person,  partnership,  association
     2  or  corporation shall engage in the business of credit reporting without
     3  first obtaining a license from the superintendent.
     4    (b)  Application for such license shall be in writing, under oath, and
     5  in the form prescribed by the  superintendent,  and  shall  contain  the
     6  name,  and  the  address both of the residence and place of business, of
     7  the applicant, and if the applicant is a co-partnership or  association,
     8  of  every  member  thereof,  and  if  a corporation, of each officer and
     9  director thereof. Further, if the business  is  to  be  conducted  at  a
    10  specific  address, the address at which the business is to be conducted,
    11  and in addition, such additional information as the  superintendent  may
    12  require.
    13    §  704.  Superintendent  authorized to examine. (a) For the purpose of
    14  discovering violations of this article or securing information  lawfully
    15  required  in  this  section,  the superintendent may at any time, and as
    16  often as may be determined, either personally or by a person duly desig-
    17  nated by the superintendent,  investigate  licensed  consumer  reporting
    18  agencies and examine the books, accounts, records, and files used there-
    19  in of every licensee.
    20    (b)  For  the  purpose established in subdivision (a) of this section,
    21  the superintendent and his or her duly designated representatives  shall
    22  have free access to the offices and places of business, books, accounts,
    23  papers,  records,  files,  safes and vaults of all licensees. The super-
    24  intendent shall have authority to require the attendance of and to exam-
    25  ine under oath all persons whose testimony may be required  relative  to
    26  consumer reporting agencies.
    27    §  705.  Superintendent  authorized to promulgate regulations. (a) The
    28  superintendent shall have the power to prescribe and from time  to  time
    29  withdraw  or  amend,  in writing, rules and regulations and issue orders
    30  and guidance involving credit reporting agencies, not inconsistent  with
    31  the  provisions  of this chapter, the banking law, the insurance law and
    32  any other law in which the superintendent is given authority, including:
    33    (1) effectuating any power  given  to  the  superintendent  under  the
    34  provisions  of  this chapter, the insurance law, the banking law, or any
    35  other law to prescribe forms or make regulations;
    36    (2) interpreting the provisions of this chapter,  the  insurance  law,
    37  the banking law, or any other applicable law; and
    38    (3)  governing  the  procedures  to be followed in the practice of the
    39  department.
    40    (b) The superintendent may promulgate a list of financial products and
    41  services excluded from regulation by the superintendent,  provided  that
    42  such exclusion shall not limit in any way the ability of the superinten-
    43  dent  to  take  any  actions  with respect to fraud provided for in this
    44  chapter, the insurance law, the banking law or any other applicable law.
    45    § 2. This act shall take effect immediately.
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