STATE OF NEW YORK
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271
2017-2018 Regular Sessions
IN SENATE(Prefiled)
January 4, 2017
___________
Introduced by Sen. HOYLMAN -- 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 and the alcoholic beverage
control law, in relation to the unlawful use of a New York state driv-
er's license or identification card
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-hh to read as follows:
3 § 399-hh. Unlawful use of a New York state driver's license or iden-
4 tification card. 1. No person, business, firm, partnership, association,
5 or corporation, not including the state or its political subdivisions,
6 may scan the machine-readable zone of an individual's New York state
7 driver's license or identification card as defined in section four
8 hundred ninety of the vehicle and traffic law, except for the following
9 purposes:
10 a. to verify authenticity of the driver's license or identification
11 card or to verify the identity of the individual if the individual pays
12 for goods or services with a method other than cash, returns an item, or
13 requests a refund or exchange;
14 b. to verify the individual's age when providing age-restricted goods
15 or services to the individual;
16 c. to prevent fraud or other criminal activity if the individual
17 returns an item or requests a refund or an exchange and the business
18 uses a fraud prevention service company or system. Information collected
19 by scanning an individual's driver's license or identification card
20 pursuant to this subdivision shall be limited to the following informa-
21 tion from the individual:
22 (1) name;
23 (2) address;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05182-01-7
S. 271 2
1 (3) date of birth; and
2 (4) driver's license number or identification card number;
3 d. to record, retain, or transmit information as required by state or
4 federal law;
5 e. to transmit information to a consumer reporting agency, financial
6 institution, or debt collector to be used as permitted by the federal
7 Fair Credit Reporting Act, Gramm-Leach-Bliley Act, or the Fair Debt
8 Collection Practices Act; or
9 f. to record, retain, or transmit information by a covered entity
10 governed by the medical privacy and security rules issued by the federal
11 Department of Health and Human Services, Parts 160 and 164 of the Code
12 of Federal Regulations, established pursuant to the Health Insurance
13 Portability and Availability Act of 1996.
14 2. No person, business, firm, partnership, association, or corpo-
15 ration, not including the state or its political subdivisions, shall
16 retain any information obtained from scanning an individual's New York
17 state driver's license or identification card, except as permitted in
18 subdivision one of this section.
19 3. No person, business, firm, partnership, association, or corpo-
20 ration, not including the state or its political subdivisions, shall
21 sell or disseminate to a third party any information obtained under this
22 section for any purpose, including but not limited to, marketing, adver-
23 tising, or promotional activities, except as permitted in subdivision
24 one of this section.
25 4. A person, business, firm, partnership, association, or corporation,
26 not including the state or its political subdivisions, covered under
27 this section shall make reasonable efforts, through systems testing and
28 other means, to ensure that the requirements of this section are met.
29 5. Any waiver of a provision of this section is contrary to public
30 policy and is void and unenforceable.
31 6. Each violation of this section shall be punishable by a civil
32 penalty of not more than one thousand dollars.
33 7. For the purposes of this section:
34 a. "Consumer reporting agency" shall have the same meaning as in the
35 federal Fair Credit Reporting Act, title 15 United States Code section
36 1681a(f).
37 b. "Covered entity" shall have the same meaning as in the security
38 rules issued by the federal Department of Health and Human Services,
39 Parts 160 and 164 of the Code of Federal Regulations, established pursu-
40 ant to the Health Insurance Portability and Availability Act of 1996.
41 c. "Debt collector" shall have the same meaning as in the federal Fair
42 Debt Collection Practices Act, title 15 United States Code section
43 1692a.
44 d. "Financial institution" shall have the same meaning as in the
45 federal Gramm-Leach-Bliley Act, title 15 United States Code section
46 6809.
47 § 2. Subdivision 8 of section 65-b of the alcoholic beverage control
48 law, as added by chapter 519 of the laws of 1999, is amended to read as
49 follows:
50 8. A licensee or agent or employee of such licensee shall only use the
51 information recorded and maintained through the use of such devices for
52 the purposes contained in paragraph (a) of subdivision seven of this
53 section, and [shall only use such devices for the purposes contained in
54 subdivision two of this section. No licensee or agent or employee of a
55 licensee shall resell or disseminate the information recorded during
56 such scan to any third person. Such prohibited resale or dissemination
S. 271 3
1 includes, but is not limited to, any advertising, marketing or promo-
2 tional activities. Notwithstanding the restrictions imposed by this
3 subdivision, such records may be released pursuant to a court ordered
4 subpoena or pursuant to any other statute that specifically authorizes
5 the release of such information. Each violation of this subdivision
6 shall be punishable by a civil penalty of not more than one thousand
7 dollars] in accordance with and subject to the provisions of section
8 three hundred ninety-nine-hh of the general business law.
9 § 3. This act shall take effect immediately.
