Bill Text: NY S04056 | 2017-2018 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO CONSUMER PROTECTION [S04056 Detail]
Download: New_York-2017-S04056-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4056 2017-2018 Regular Sessions IN SENATE February 2, 2017 ___________ 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: 1 Section 1. The general business law is amended by adding a new section 2 518-b to read as follows: 3 § 518-b. Prohibited credit card user information requests. 1. Issuers 4 of credit cards and debit cards are prohibited from accepting or solic- 5 iting the nonpublic personal information of a holder from a third-party. 6 Provided, however, that no provision of this section shall be deemed to 7 prohibit an issuer of a credit card or debit card from accepting or 8 soliciting from a banking organization, as defined in section two of the 9 banking law, the nonpublic personal information of a holder for the 10 purpose of verifying the identity of such holder and preventing improper 11 or unauthorized use. 12 2. Nonpublic personal information shall have the same meaning as in 15 13 U.S.C. § 6809(4). 14 3. This section shall not prohibit the disclosure of nonpublic 15 personal information to a third party: 16 (a) As necessary to effect, administer, or enforce a transaction 17 requested or authorized by the consumer; 18 (b) In order to service or process a financial product or service 19 requested or authorized by the consumer; 20 (c) In order to maintain or service the consumer's account held by the 21 issuer of the credit or debit card; or 22 (d) To protect against or prevent actual or potential fraud, unauthor- 23 ized transactions, claims, or other liability. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09609-01-7S. 4056 2 1 4. A violation of the provisions of this section by an issuer shall be 2 punishable by a civil penalty not to exceed two thousand dollars for 3 each such violation. 4 § 2. This act shall take effect on the first of September next 5 succeeding the date on which it shall have become a law.