S T A T E O F N E W Y O R K ________________________________________________________________________ 846--A Cal. No. 68 2011-2012 Regular Sessions I N A S S E M B L Y (PREFILED) January 5, 2011 ___________ Introduced by M. of A. PHEFFER, GLICK, GUNTHER, MILLMAN, REILLY, GABRYS- ZAK, ORTIZ, DINOWITZ, MAYERSOHN, GALEF, MAISEL, COLTON -- Multi-Spon- sored by -- M. of A. CASTRO, COOK, DESTITO, ENGLEBRIGHT, LIFTON, MAGEE, MARKEY, M. MILLER, ROSENTHAL, SCHIMEL, SWEENEY, THIELE, TOWNS, WEINSTEIN, WEISENBERG -- read once and referred to the Committee on Consumer Affairs and Protection -- reported from committee, advanced to a third reading, amended and ordered reprinted, retaining its place on the order of third reading AN ACT to amend the general business law, in relation to the disclosure of social security numbers 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 2 399-ddd to read as follows: 3 S 399-DDD. DISCLOSURE OF SOCIAL SECURITY NUMBER. 1. AS USED IN THIS 4 SECTION, "SOCIAL SECURITY ACCOUNT NUMBER" SHALL INCLUDE THE NUMBER 5 ISSUED BY THE FEDERAL SOCIAL SECURITY ADMINISTRATION AND ANY NUMBER 6 DERIVED FROM SUCH NUMBER. SUCH TERM SHALL NOT INCLUDE ANY NUMBER THAT 7 HAS BEEN ENCRYPTED. 8 2. NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION, NOT 9 INCLUDING THE STATE OR ITS POLITICAL SUBDIVISIONS, SHALL REQUIRE AN 10 INDIVIDUAL TO DISCLOSE OR FURNISH HIS OR HER SOCIAL SECURITY ACCOUNT 11 NUMBER, FOR ANY PURPOSE IN CONNECTION WITH ANY ACTIVITY, OR TO REFUSE 12 ANY SERVICE, PRIVILEGE OR RIGHT TO AN INDIVIDUAL WHOLLY OR PARTLY 13 BECAUSE SUCH INDIVIDUAL REFUSES TO DISCLOSE OR FURNISH SUCH NUMBER, 14 UNLESS ONE OF THE EXCEPTIONS ENUMERATED IN SUBDIVISION THREE OF THIS 15 SECTION APPLIES. 16 3. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN THE FOLLOWING 17 INSTANCES: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01061-02-1 A. 846--A 2 1 (A) THE INDIVIDUAL CONSENTS TO THE ACQUISITION OR USE OF HIS OR HER 2 SOCIAL SECURITY ACCOUNT NUMBER. 3 (B) THE SOCIAL SECURITY ACCOUNT NUMBER IS EXPRESSLY REQUIRED BY FEDER- 4 AL, STATE, OR LOCAL LAW OR REGULATION. 5 (C) THE SOCIAL SECURITY ACCOUNT NUMBER IS TO BE USED FOR INTERNAL 6 VERIFICATION OR FRAUD INVESTIGATION. 7 (D) THE SOCIAL SECURITY ACCOUNT NUMBER IS TO BE USED FOR ANY BUSINESS 8 FUNCTION PERMITTED OR ALLOWED UNDER THE GRAMM LEACH BLILEY ACT, P.L. 9 106-102 (1999). 10 (E) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH 11 A REQUEST FOR CREDIT OR A CREDIT TRANSACTION INITIATED BY THE CONSUMER 12 OR IN CONNECTION WITH A LAWFUL REQUEST FOR A CONSUMER REPORT OR INVESTI- 13 GATIVE CONSUMER REPORT, AS SUCH TERMS ARE DEFINED IN SECTION THREE 14 HUNDRED EIGHTY-A OF THIS CHAPTER. 15 (F) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH 16 A DEPOSIT ACCOUNT OR AN INVESTMENT. 17 (G) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR PURPOSES OF 18 EMPLOYMENT, INCLUDING IN THE COURSE OF THE ADMINISTRATION OF A CLAIM, 19 BENEFIT, OR PROCEDURE RELATED TO THE INDIVIDUAL'S EMPLOYMENT BY THE 20 PERSON, INCLUDING THE INDIVIDUAL'S TERMINATION FROM EMPLOYMENT, RETIRE- 21 MENT FROM EMPLOYMENT, INJURY SUFFERED DURING THE COURSE OF EMPLOYMENT, 22 OR TO CHECK ON AN UNEMPLOYMENT INSURANCE CLAIM OF THE INDIVIDUAL. 23 (H) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR PURPOSES OF 24 TAX COMPLIANCE. 25 (I) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE 26 OF: 27 I. THE COLLECTION OF CHILD OR SPOUSAL SUPPORT; 28 II. DETERMINING WHETHER AN INDIVIDUAL HAS A CRIMINAL RECORD; OR 29 III. BLOOD OR ORGAN DONATION. 30 (J) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH 31 ANY INTERACTION WITH A GOVERNMENTAL LAW ENFORCEMENT AGENCY OR IS USED IN 32 CONJUNCTION WITH THE ENFORCEMENT OF A JUDGMENT OF A COURT OF COMPETENT 33 JURISDICTION BY A SHERIFF OR MARSHAL. 34 (K) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE OF 35 VERIFYING AN INDIVIDUAL'S IDENTITY OR AGE IN ORDER TO ALLOW SUCH INDI- 36 VIDUAL TO OBTAIN ACCESS TO, OR ENROLL IN, A MARKETING PROGRAM THAT IS 37 RESTRICTED TO INDIVIDUALS OF A CERTAIN AGE. 38 (L) I. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVID- 39 UAL, FIRM, CORPORATION, OR OTHER ENTITY DOING BUSINESS PURSUANT TO A 40 FRANCHISE ISSUED BY A POLITICAL SUBDIVISION OF THE STATE OR A LICENSE, 41 FRANCHISE, CERTIFICATE OR OTHER AUTHORIZATION ISSUED BY THE NEW YORK 42 STATE PUBLIC SERVICE COMMISSION. 43 II. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVIDUAL, 44 FIRM, CORPORATION, OR OTHER ENTITY REGULATED BY THE NEW YORK STATE 45 PUBLIC SERVICE COMMISSION, THE FEDERAL COMMUNICATIONS COMMISSION, OR THE 46 FEDERAL ENERGY REGULATORY COMMISSION. 47 III. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY A BANKING 48 INSTITUTION, AS DEFINED IN SECTION NINE-F OF THE BANKING LAW, OR ONE OF 49 ITS AFFILIATES. 50 (M) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN AUTHORIZED 51 INSURER, AS DEFINED IN SECTION ONE HUNDRED SEVEN OF THE INSURANCE LAW, 52 FOR THE PURPOSE OF FURNISHING INFORMATION TO THE CENTERS FOR MEDICARE 53 AND MEDICAID SERVICES WITHIN THE UNITED STATES DEPARTMENT OF HEALTH AND 54 HUMAN SERVICES. 55 4. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, APPLICATION 56 MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE A. 846--A 3 1 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL 2 PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF 3 NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH 4 VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR 5 JUSTICE THAT THE DEFENDANT HAS, IN FACT, VIOLATED THIS SECTION, AN 6 INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND 7 RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY 8 PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. IN ANY SUCH 9 PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS 10 PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION EIGHTY-THREE 11 HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU- 12 TION. IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY 13 GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE 14 RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC- 15 TICE LAW AND RULES. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION 16 OF SUBDIVISION TWO OF THIS SECTION HAS OCCURRED, THE COURT SHALL IMPOSE 17 A CIVIL PENALTY OF NOT MORE THAN FIVE HUNDRED DOLLARS. THE SECOND 18 OFFENSE AND ANY OFFENSE COMMITTED THEREAFTER SHALL BE PUNISHABLE BY A 19 CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS. 20 5. ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS 21 SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW- 22 FUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR 23 FIFTY DOLLARS, WHICHEVER IS GREATER, OR BOTH SUCH ACTIONS. THE COURT 24 MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT NOT 25 TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO ONE THOUSAND DOLLARS, IF 26 THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS 27 SECTION. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO A PREVAILING 28 PLAINTIFF. 29 6. NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHALL BE 30 DEEMED TO HAVE VIOLATED THE PROVISIONS OF THIS SECTION IF SUCH PERSON, 31 FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHOWS, BY A PREPONDERANCE 32 OF THE EVIDENCE, THAT THE VIOLATION WAS NOT INTENTIONAL AND RESULTED 33 FROM A BONA FIDE ERROR MADE NOTWITHSTANDING THE MAINTENANCE OF PROCE- 34 DURES REASONABLY ADOPTED TO AVOID SUCH ERROR. 35 S 2. This act shall take effect on the one hundred twentieth day after 36 it shall have become a law.