Amd §390-e, Gen Bus L (as proposed in S.6088 & A.4023-A); amd §152-d, Soc Serv L
Specifies information which is required to be contained in the notice to customers warning of possible electronic benefits transfer scams, including skimming; directs the office of temporary disability and assistance to create a model sign to comply with such notice provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8528
SPONSOR: Rozic TITLE OF BILL:
An act to amend the general business law and the social services law, in
relation to a model notification regarding electronic benefits transfer
scams involving certain public assistance benefits
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to further effectuate an amendment to Chap-
ter 731 of the laws of 2023 (Approval message 57) requiring a model
notice for skimming related to electronic benefits transfers when
using'certain public assistance benefits.
SUMMARY OF PROVISIONS:
Section one makes technical changes clarifying the definition of "elec-
tronic benefit transfer card" and specifies what the notice must
contain, including a link to educate consumers on how to protect them-
selves from skimming and contact information determined by the Office of
Temporary Disability Assistance.
Section two clarifies that the Office of Temporary Disability Assistance
will create a model notice that will be available on their website for
use.
Section three sets forth the effective date.
JUSTIFICATION:
Electronic benefit transfer card skimming has become a growing problem
for New York consumers and their personal data. Chapter 731 of the laws
of 2023 requires businesses engaged in transactions that accept elec-
tronic benefit transfer cards to display a notice to consumers and users
of electronic benefit card transfers and certain public assistance bene-
fits of. scams/skimming. These amendments clarify the definition of
electronic benefit transfer card and specify that the office of tempo-
rary disability assistance be the agency responsible for creation of the
model notice and posting the notice on their website for public use.
PRIOR LEGISLATIVE HISTORY:
This bill is an amendment to chapter 731 of the laws of 2023.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2023 amending the general business law relating
to requiring a notice to be posted regarding skimming, as proposed in
legislative bills numbers S. 6088 and A. 4023-A, takes. effect.
STATE OF NEW YORK
________________________________________________________________________
8528
IN ASSEMBLY
January 5, 2024
___________
Introduced by M. of A. ROZIC -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law and the social services law, in
relation to a model notification regarding electronic benefits trans-
fer scams involving certain public assistance benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 390-e of the general business law, as added by a
2 chapter of the laws of 2023 amending the general business law relating
3 to requiring a notice to be posted regarding skimming, as proposed in
4 legislative bills numbers S. 6088 and A. 4023-A, is amended to read as
5 follows:
6 § 390-e. Skimming awareness notice. 1. For the purposes of this
7 section, the following terms shall have the following meanings:
8 (a) "electronic benefit transfer card" means any medical assistance
9 card, [food stamp assistance card, public assistance card] payment
10 access card pursuant to subdivision nine of section one hundred thirty-
11 one of the social services law, or any other identification, authori-
12 zation card or electronic access device issued by the state or a social
13 services district as defined in subdivision seven of section two of the
14 social services law by which [entitles] a person [to obtain public
15 assistance benefits] may access their medical assistance, supplemental
16 nutrition assistance program, or public assistance benefits under a
17 local, state or federal program administered by the state, its political
18 subdivisions or social services districts; and
19 (b) "skimming" shall be defined as obtaining a consumer's personal
20 identifying information as defined in subdivision one of section 190.77
21 of the penal law through the use of a skimmer device as defined in
22 subdivision two of section 190.85 of the penal law.
23 2. Notwithstanding any other law to the contrary, every person, firm,
24 partnership, association or corporation who is engaged in a sales trans-
25 action and accepts electronic benefit transfer cards shall place a sign
26 at the point of sale containing a notice regarding skimming. Such sign
27 shall include: (a) a link to a web page maintained by the office of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05962-04-4
A. 8528 2
1 temporary and disability assistance with information for victims of
2 electronic benefit transfer scams, including, but not limited to, skim-
3 ming; (b) steps customers can take to protect themselves from skimming
4 [and]; (c) an appropriate contact number as determined by the [secretary
5 of state] office of temporary and disability assistance to report [inci-
6 dences of suspected skimming] that an electronic benefit transfer card
7 was compromised and to disable and request a new electronic benefit
8 transfer card; and (d) a request to notify law enforcement if a skimmer
9 device appears to be in use. The [secretary of state] office of tempo-
10 rary and disability assistance shall make available on [the department
11 of state's] its website[,] a model sign as required by subdivision six
12 of section one hundred fifty-two-d of the social services law that such
13 establishments may use to comply with the provisions of this section.
14 3. (a) Any person, firm, partnership, association or corporation who
15 fails to comply with the requirements of this section [shall be issued a
16 warning and provided with information on compliance with this section.
17 For each additional violation for failure to comply, such person or
18 entity] shall be assessed a civil penalty not to exceed two hundred
19 fifty dollars per point of sale which lacks the notice required pursuant
20 to subdivision two of this section for the second and each separate
21 subsequent offense.
22 (b) If the notice required pursuant to subdivision two of this section
23 has been provided and such notice is subsequently removed, damaged, or
24 altered by any person other than the person or entities required to
25 provide such notice, such person or entities shall have no liability for
26 a failure to comply with subdivision two of this section as long as such
27 notice is replaced within ten business days from such person or entities
28 becoming aware of the defect.
29 § 2. Section 152-d of the social services law is amended by adding a
30 new subdivision 6 to read as follows:
31 6. The office of temporary and disability assistance shall make a
32 model sign available on its website that can be used by any person,
33 firm, partnership, association or corporation required to inform indi-
34 viduals about electronic benefit transfer scams, including, but not
35 limited to, skimming, and the steps they can take to protect their bene-
36 fits in accordance with section three hundred ninety-e of the general
37 business law.
38 § 3. This act shall take effect on the same date and in the same
39 manner as a chapter of the laws of 2023 amending the general business
40 law relating to requiring a notice to be posted regarding skimming, as
41 proposed in legislative bills numbers S. 6088 and A. 4023-A, takes
42 effect.
