A03368 Summary:

BILL NOA03368
 
SAME ASNo Same As
 
SPONSOROrtiz
 
COSPNSR
 
MLTSPNSR
 
Ren 458-k to be 458-l, add 458-k, Gen Bus L
 
Requires the use of a password or personal identification number in the performance of a credit card transaction.
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A03368 Actions:

BILL NOA03368
 
01/29/2019referred to consumer affairs and protection
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A03368 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3368
 
SPONSOR: Ortiz
  TITLE OF BILL: An act to amend the general business law, in relation to requiring additional information for credit card transactions   PURPOSE OR GENERAL IDEA OF BILL: This bill increases the security of credit card transactions by requir- ing an additional personal identification number or password.   SUMMARY OF SPECIFIC PROVISIONS: Renumbers section 458-k of the general business law to 458-1 and adds a new section 458-k that would require personal identification numbers or passwords for credit card transactions. It requires the credit or debit card holder to write such information on the credit or debit card trans- action form or application.   JUSTIFICATION: According to the FTC nearly 10 million people a year fall victims to identity theft and when you add those affected by card fraud, one in 20 Americans suffer from identity theft or card fraud every year. Merchants, banks and other institutions have a large role in protecting data and preventing identity theft and card fraud and this bill would allow them to keep ahead of the crooks who continuously update their ways to commit fraud. Many card companies have added a three digit security code to their credit cards for additional protection. However, when a card is stolen or in cases where a merchant or employee captures and stores the card information, this code does little to provide protection against fraud. By requiring cardholders to provide an extra password of their choice upon application for a card, online transactions will be more secure.   PRIOR LEGISLATIVE HISTORY: 2007/08: A5877 Referred to Consumer Affairs 2009/10: A6948 Held in Consumer Affairs and Protection 2011/12: A1016 Held in Consumer Affairs and Protection 2013/14: A2988 Referred to Consumer Affairs and Protection 2015/16: A8415 Referred to Consumer Affairs and Protection 2017/18: A3344 Referred to Consumer Affairs and Protection   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become a law
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A03368 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3368
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2019
                                       ___________
 
        Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
          on Consumer Affairs and Protection
 
        AN ACT to amend the general business law, in relation to requiring addi-
          tional information for credit card transactions
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  458-k  of the general business law is renumbered
     2  458-l and a new 458-k is added to read as follows:
     3    § 458-k. Personal  identification  required  for  credit  card  trans-
     4  actions. 1. Every person, firm, partnership or corporation which accepts
     5  credit  or debit cards for the transaction of business shall require the
     6  credit or debit card holder to provide additional  identifying  informa-
     7  tion  such  as  a personal identification number or password for the use
     8  and completion of the business transaction. The  credit  or  debit  card
     9  holder  shall not be required to write such information on the credit or
    10  debit card transaction form or on any attachment thereto.
    11    2. Every credit services business shall require credit card holders to
    12  provide a personal identification number or password to obtain and main-
    13  tain a credit card account with such business and such information shall
    14  be required to be used by the credit card holder only to perform a cred-
    15  it card transaction.
    16    § 2. This act shall take effect on the one hundred twentieth day after
    17  it shall have become a law.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07228-01-9
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A03368 LFIN:

 NO LFIN
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