Bill Text: NY S02158 | 2015-2016 | General Assembly | Amended

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Bill Title: Relates to requiring credit cards to contain smart chip technology; states that a lending institution shall not issue credit or debit cards without smart chip technology; provides definitions for the terms "smart chip", "chip and PIN", and "chip and signature."

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 0000-00-00 - [S02158 Detail]

Download: New_York-2015-S02158-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2158
                               2015-2016 Regular Sessions
                    IN SENATE
                                    January 21, 2015
                                       ___________
        Introduced  by  Sens.  GRIFFO, GOLDEN -- read twice and ordered printed,
          and when printed to be committed to the Committee on Banks
        AN ACT to amend the banking law, in relation to requiring  credit  cards
          to contain smart chip technology
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 2 of the banking law is amended  by  adding  a  new
     2  subdivision 30 to read as follows:
     3    30.  Smart chip. The term, "smart chip" means a credit card technology
     4  where cards are embedded with chips and a cardholder must put  in  their
     5  PIN or sign for each transaction to be approved. This includes "chip and
     6  PIN"  and "chip and signature" as secure methods to protect against card
     7  hackers and fraud.
     8    (a) "Chip and PIN" requires a consumer to enter  a  PIN  number  after
     9  each transaction for approval.
    10    (b) "Chip and signature" requires a consumer to insert the card into a
    11  portable  electronic  reader  and then subsequently sign for approval of
    12  the transaction.
    13    § 2. The banking law is amended by adding a new section 9-w to read as
    14  follows:
    15    § 9-w. Smart chip technology.  A lending institution,  as  defined  in
    16  paragraph  (a)  of  subdivision  one  of section nine-t of this article,
    17  shall not issue credit cards or debit cards without smart chip technolo-
    18  gy as defined in subdivision thirty of section two of this article.
    19    § 3. This act shall take effect immediately and  shall  apply  to  all
    20  credit cards issued or reissued on and after January 1, 2016.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02171-01-5