Bill Text: NY S06608 | 2011-2012 | General Assembly | Amended


Bill Title: Tracks federal privacy act of 1974 with respect to the obligation of a person to disclose their social security number to another person, partnership, association or corporation; provides where there is no legal basis for request that a person may refuse to provide his or her social security number; provides for enforcement by attorney general.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-06-18 - SUBSTITUTED BY A8992A [S06608 Detail]

Download: New_York-2011-S06608-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6608--A
                                   I N  S E N A T E
                                     March 2, 2012
                                      ___________
       Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
         printed to be committed to the Committee  on  Consumer  Protection  --
         committee  discharged,  bill amended, ordered reprinted as amended and
         recommitted to said committee
       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:
   18    (A) THE INDIVIDUAL CONSENTS TO THE ACQUISITION OR USE OF  HIS  OR  HER
   19  SOCIAL SECURITY ACCOUNT NUMBER.
   20    (B) THE SOCIAL SECURITY ACCOUNT NUMBER IS EXPRESSLY REQUIRED BY FEDER-
   21  AL, STATE, OR LOCAL LAW OR REGULATION.
   22    (C)  THE  SOCIAL  SECURITY  ACCOUNT  NUMBER IS TO BE USED FOR INTERNAL
   23  VERIFICATION OR FRAUD INVESTIGATION.
   24    (D) THE SOCIAL SECURITY ACCOUNT NUMBER IS TO BE USED FOR ANY  BUSINESS
   25  FUNCTION  PERMITTED  OR  ALLOWED  UNDER THE GRAMM LEACH BLILEY ACT, P.L.
   26  106-102 (1999).
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01061-05-2
       S. 6608--A                          2
    1    (E) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
    2  A REQUEST FOR CREDIT OR A CREDIT TRANSACTION INITIATED BY  THE  CONSUMER
    3  OR IN CONNECTION WITH A LAWFUL REQUEST FOR A CONSUMER REPORT OR INVESTI-
    4  GATIVE  CONSUMER  REPORT,  AS  SUCH  TERMS  ARE DEFINED IN SECTION THREE
    5  HUNDRED EIGHTY-A OF THIS CHAPTER.
    6    (F) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
    7  A DEPOSIT ACCOUNT OR AN INVESTMENT.
    8    (G)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR PURPOSES OF
    9  EMPLOYMENT, INCLUDING IN THE COURSE OF THE ADMINISTRATION  OF  A  CLAIM,
   10  BENEFIT,  OR  PROCEDURE  RELATED  TO  THE INDIVIDUAL'S EMPLOYMENT BY THE
   11  PERSON, INCLUDING THE INDIVIDUAL'S TERMINATION FROM EMPLOYMENT,  RETIRE-
   12  MENT  FROM  EMPLOYMENT, INJURY SUFFERED DURING THE COURSE OF EMPLOYMENT,
   13  OR TO CHECK ON AN UNEMPLOYMENT INSURANCE CLAIM OF THE INDIVIDUAL.
   14    (H) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED  FOR  PURPOSES  OF
   15  TAX COMPLIANCE.
   16    (I)  THE  SOCIAL  SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE
   17  OF:
   18    I. THE COLLECTION OF CHILD OR SPOUSAL SUPPORT;
   19    II. DETERMINING WHETHER AN INDIVIDUAL HAS A CRIMINAL RECORD; OR
   20    III. BLOOD OR ORGAN DONATION.
   21    (J) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED IN CONNECTION WITH
   22  ANY INTERACTION WITH A GOVERNMENTAL LAW ENFORCEMENT AGENCY OR IS USED IN
   23  CONJUNCTION WITH THE ENFORCEMENT OF A JUDGMENT OF A COURT  OF  COMPETENT
   24  JURISDICTION BY A SHERIFF OR MARSHAL.
   25    (K) THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED FOR THE PURPOSE OF
   26  VERIFYING  AN  INDIVIDUAL'S IDENTITY OR AGE IN ORDER TO ALLOW SUCH INDI-
   27  VIDUAL TO OBTAIN ACCESS TO, OR ENROLL IN, A MARKETING  PROGRAM  THAT  IS
   28  RESTRICTED TO INDIVIDUALS OF A CERTAIN AGE.
   29    (L)  I. THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVID-
   30  UAL, FIRM, CORPORATION, OR OTHER ENTITY DOING  BUSINESS  PURSUANT  TO  A
   31  FRANCHISE  ISSUED  BY A POLITICAL SUBDIVISION OF THE STATE OR A LICENSE,
   32  FRANCHISE, CERTIFICATE OR OTHER AUTHORIZATION ISSUED  BY  THE  NEW  YORK
   33  STATE PUBLIC SERVICE COMMISSION.
   34    II.  THE SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN INDIVIDUAL,
   35  FIRM, CORPORATION, OR OTHER ENTITY  REGULATED  BY  THE  NEW  YORK  STATE
   36  PUBLIC SERVICE COMMISSION, THE FEDERAL COMMUNICATIONS COMMISSION, OR THE
   37  FEDERAL ENERGY REGULATORY COMMISSION.
   38    III.  THE  SOCIAL  SECURITY  ACCOUNT  NUMBER IS REQUESTED BY A BANKING
   39  INSTITUTION, AS DEFINED IN SECTION NINE-F OF THE BANKING LAW, OR ONE  OF
   40  ITS AFFILIATES.
   41    (M)  THE  SOCIAL SECURITY ACCOUNT NUMBER IS REQUESTED BY AN AUTHORIZED
   42  INSURER, AS DEFINED IN SECTION ONE HUNDRED SEVEN OF THE  INSURANCE  LAW,
   43  FOR  THE  PURPOSE  OF FURNISHING INFORMATION TO THE CENTERS FOR MEDICARE
   44  AND MEDICAID SERVICES WITHIN THE UNITED STATES DEPARTMENT OF HEALTH  AND
   45  HUMAN SERVICES.
   46    4.  WHENEVER  THERE  SHALL BE A VIOLATION OF THIS SECTION, APPLICATION
   47  MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
   48  STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
   49  PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
   50  NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
   51  VIOLATION;  AND  IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
   52  JUSTICE THAT THE DEFENDANT HAS,  IN  FACT,  VIOLATED  THIS  SECTION,  AN
   53  INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
   54  RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
   55  PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
   56  PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
       S. 6608--A                          3
    1  PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
    2  HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
    3  TION.  IN  CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY
    4  GENERAL  IS  AUTHORIZED  TO  TAKE  PROOF AND MAKE A DETERMINATION OF THE
    5  RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
    6  TICE LAW AND RULES. WHENEVER THE COURT SHALL DETERMINE THAT A  VIOLATION
    7  OF  SUBDIVISION TWO OF THIS SECTION HAS OCCURRED, THE COURT SHALL IMPOSE
    8  A CIVIL PENALTY OF NOT  MORE  THAN  FIVE  HUNDRED  DOLLARS.  THE  SECOND
    9  OFFENSE  AND  ANY  OFFENSE COMMITTED THEREAFTER SHALL BE PUNISHABLE BY A
   10  CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS.
   11    5.  NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHALL  BE
   12  DEEMED  TO  HAVE VIOLATED THE PROVISIONS OF THIS SECTION IF SUCH PERSON,
   13  FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION SHOWS, BY A  PREPONDERANCE
   14  OF  THE  EVIDENCE,  THAT  THE VIOLATION WAS NOT INTENTIONAL AND RESULTED
   15  FROM A BONA FIDE ERROR MADE NOTWITHSTANDING THE  MAINTENANCE  OF  PROCE-
   16  DURES REASONABLY ADOPTED TO AVOID SUCH ERROR.
   17    S 2. This act shall take effect on the one hundred twentieth day after
   18  it shall have become a law.
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