Bill Text: NJ A1561 | 2018-2019 | Regular Session | Introduced


Bill Title: Concerns the unauthorized disclosure of another person's confidential financial information.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A1561 Detail]

Download: New_Jersey-2018-A1561-Introduced.html

ASSEMBLY, No. 1561

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 


 

Sponsored by:

Assemblyman  MICHAEL PATRICK CARROLL

District 25 (Morris and Somerset)

 

 

 

 

SYNOPSIS

     Concerns the unauthorized disclosure of another person's confidential financial information.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning certain financial crimes and amending various parts of the statutory law.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 6 of P,L, 2003, c.184 (C.2C:21-17.3) is amended to read as follows:

     6.    a. A person who knowingly [distributes] discloses, manufactures or possesses any item containing personal identifying information or confidential financial information, pertaining to another person, without that person's authorization, and with knowledge that the actor is facilitating a fraud or injury to be perpetrated by anyone is guilty of a crime of the fourth degree.

     b.    (1)  If the person [distributes] discloses, manufactures or possesses 20 or more items containing personal identifying information or confidential financial information, pertaining to another person, or five or more items containing personal information or confidential financial information, pertaining to five or more separate persons, without authorization, and with knowledge that the actor is facilitating a fraud or injury to be perpetrated by anyone the person is guilty of a crime of the third degree.

     (2)   If the person [distributes] discloses, manufactures or possesses 50 or more items containing personal identifying information or confidential financial information, pertaining to another person, or ten or more items containing personal identifying information or confidential financial information, pertaining to five or more separate persons, without authorization, and with knowledge that the actor is facilitating a fraud or injury to be perpetrated by anyone the person is guilty of a crime of the second degree.

     c.     [Distribution] Disclosure, manufacture or possession of 20 or more items containing personal identifying information or confidential financial information, pertaining to another person or of items containing personal identifying information or confidential financial information, pertaining to five or more separate persons without authorization shall create an inference that the items were distributed, manufactured or possessed with knowledge that the actor is facilitating a fraud or injury to be perpetrated by anyone.

     d.    As used in this section:

     ["Distribute" means, but is not limited to, any sale, purchase, transfer, gift, delivery, or provision to another,] "Disclose" means sell, purchase, gift, manufacture, give, provide, lend, trade, mail, deliver, transfer, publish, distribute, circulate, disseminate, present, exhibit, advertise, offer, share, provision to another, or make available via the Internet or by any other means, regardless of whether the [distribution] disclosure was for compensation.

     "Confidential financial information" includes, but is not limited to, federal or state tax returns, tax records, bank records or computer records.

     "Item" means a writing or document, whether issued by a governmental agency or made by any business or person, recorded by any method that contains personal identifying information or confidential financial information.  Item includes, but is not limited to, an access device, book, check, paper, card, instrument, or information stored in electronic form by way of e-mail or otherwise, on any computer, computer storage medium, computer program, computer software, computer equipment, computer system or computer network or any part thereof, or by other mechanical or electronic device such as cellular telephone, pager or other electronic device capable of storing information.

(cf:  P.L.2003, c.184, s.6)

 

     2.    Section 4 of P.L.2002, c.85 (C.2C:21-17.1) is amended to read as follows:

     4.    Restitution to a victim of an offense under N.J.S.2C:21-1, section 1 of P.L.1983, c.565 (C.2C:21-2.1), N.J.S.2C:21-17, section 5 of P.L.2003, c.184 (C.2C:21-17.2) or section 6 of P.L. 2003, c.184 (C.2C:21-17.3) when the offense concerns personal identifying information or confidential financial information may include costs incurred by the victim:

     a.     in clearing the credit history or credit rating of the victim; or

     b.    in connection with any civil or administrative proceeding to satisfy any debt, lien, or other obligation of the victim arising as a result of the actions of the defendant.

(cf:  P.L.2005, c.224, s.3)

 

     3.    Section 7 of P.L.2003, c.184 (C.2C:21-17.4) is amended to read as follows:

     7.  a.  Any person who suffers any ascertainable loss of moneys or property, real or personal, as a result of the use of that person's personal identifying information or confidential financial information, in violation of N.J.S.2C:21-1, section 1 of P.L.1983, c.565 (2C:21-2.1), N.J.S.2C:21-17, section 5 of  P.L.2003, c.184 (C.2C:21-17.2) or section 6 of P.L.2003, c.184 (C.2C:21-17.3) may bring an action in any court of competent jurisdiction.  In any action under this section the court shall, in addition to any other appropriate legal or equitable relief, award damages in an amount three times the value of all costs incurred by the victim as a result of the person's criminal activity.  These costs may include, but are not limited to, those incurred by the victim in clearing his credit history or credit rating, or those incurred in connection with any civil or administrative proceeding to satisfy any debt, lien, or other obligation of the victim arising as a result of the actions of the defendant.  The victim may also recover those costs incurred for attorneys' fees, court costs and any out-of -pocket losses.  A financial institution, insurance company, bonding association or business that suffers direct financial loss as a result of the offense shall also be entitled to damages, but damages to natural persons shall be fully satisfied prior to any payment to a financial institution, insurance company, bonding association or business.

     b.    The standard of proof in actions brought under this section is a preponderance of the evidence, and the fact that a prosecution for a violation of N.J.S.2C:21-1, section 1 of P.L.1983, c.565 (2C:21-2.1) or N.J.S.2C:21-17 is not instituted or, where instituted, terminates without a conviction shall not preclude an action pursuant to this section.  A final judgment rendered in favor of the State in any criminal proceeding shall estop the defendant from denying the same conduct in any civil action brought pursuant to this section.

     c.     The cause of action authorized by this section shall be in addition to and not in lieu of any forfeiture or any other action, injunctive relief or any other remedy available at law, except that where the defendant is convicted of a violation of this act, the court in the criminal action, upon the application of the Attorney General or the prosecutor, shall in addition to any other disposition authorized by this Title sentence the defendant to pay restitution in an amount equal to the costs incurred by the victim as a result of the defendant's criminal activity, regardless of whether a civil action has been instituted.  These costs may include, but are not limited to those incurred by the victim in clearing his credit history or credit rating; those incurred in connection with any civil or administrative proceeding to satisfy any debt, lien, or other obligation of the victim arising as a result of the actions of the defendant; or those incurred for attorneys' fees, court costs and any out-of-pocket losses.  A financial institution, insurance company, bonding association or business that suffers direct financial loss as a result of the offense shall also be entitled to restitution, but restitution to natural persons shall be fully satisfied prior to any payment to a financial institution, insurance company, bonding association or business.

(cf:  P.L.2005, c.224, s.5)

 

     4.    Section 8 of P.L.2003, c.184 (C.2C:21-17.5) is amended to read as follows:

     8.  a.  On motion of a person who has been the victim of a violation of N.J.S.2C:21-1, section 1 of P.L.1983, c.565 (C.2C:21-2.1), N.J.S.2C:21-17, section 5 of P.L.2003, c.184 (C.2C:21-17.2) or section 6 of P.L.2003, c.184 (C.2C:21-17.3), or on its own motion, the court may, without a hearing, grant an order directing all consumer reporting agencies doing business within the State of New Jersey to delete those items of information from the victim's file that were the result of the unlawful use of the victim's personal identifying information or confidential financial information.  The consumer reporting agency shall thereafter, provide the victim with a copy of the corrected credit history report at no charge.

     b.    Following any deletion of information pursuant to this section, the consumer reporting agency shall, at the request of the victim, furnish notification that the item has been deleted, to any person specifically designated by the victim who has within two years prior thereto received a consumer report for employment purposes, or within one year prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information.

(cf:  P.L.2005, c.224, s.6)

 

     5.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill prohibits the unauthorized disclosure by an actor of confidential financial information belonging to another person.  The bill parallels section 7213 of the federal Internal revenue Code (26 U.S.C. s.7213) that criminalizes the unauthorized disclosure of information relating to tax returns.

     Under current law, an actor who distributes, manufactures or possesses an item that contains personal identifying information of another person, without that person's authorization, and with the knowledge that the actor is facilitating a fraud or injury to be perpetrated by any person, is guilty of a crime of the fourth degree.

 "Item" is defined as any writing or document, recorded by any method that contains personal identifying information.  A crime of the fourth degree is punishable by up to 18 months imprisonment, a fine up to $10,000, or both.

     The bill expands current law and criminalizes the disclosure by an actor of confidential financial information pertaining to another person.  "Disclosure" is defined in the bill as selling, purchasing, gifting, manufacturing, giving, providing, lending, trading, mailing, delivering, transferring, publishing, distributing, circulating, disseminating, presenting, exhibiting, advertising, offering, sharing, provision to another, or to make available via the Internet or by any other means, regardless of whether disclosure was for compensation.  This definition of "disclosure" includes the actions set forth in the previous definition of "distribute."  In addition, the bill provides that confidential financial information includes, but is not limited to, federal or state tax returns, tax records, bank records or computer records.

     Under the bill, a victim of an unlawful disclosure of their confidential financial information may seek certain remedial measures, including, but not limited to, restitution, deletion of certain items from their consumer reporting files, and other legal remedies and equitable relief.

feedback