New York State Assembly

 
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A04023 Summary:

A04023 Actions:

A04023 Committee Votes:

Committee:CONSUMER AFFAIRS AND PROTECTION   Chair:Rozic      
DATE:02/28/2023AYE/NAY:15/0  Action: Favorable refer to committee Codes        
Rozic
Aye
Mikulin
Aye
Fall
Aye
Miller
Aye
Burgos
Aye
Blumencranz
Aye
Gallagher
Aye
Beephan
Aye
Rajkumar
Aye
Maher
Aye
Forrest
Excused
Wallace
Aye
Bores
Aye
Lee
Aye
Alvarez
Aye
Simone
Aye

Committee:CODES   Chair:Dinowitz      
DATE:03/22/2023AYE/NAY:22/0  Action: Favorable         
Dinowitz
Aye
Morinello
Aye
Pretlow
Aye
Reilly
Aye
Cook
Aye
Mikulin
Aye
O'Donnell
Aye
Tannousis
Aye
Lavine
Aye
Curran
Aye
Weprin
Aye
Angelino
Aye
Hevesi
Aye
Flood
Aye
Seawright
Aye
Rosenthal
Aye
Walker
Aye
Vanel
Aye
Cruz
Aye
Carroll
Aye
Simon
Aye
Epstein
Aye

A04023 Floor Votes:

A04023 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A4023A
 
SPONSOR: Rozic

 
TITLE OF BILL:
 
An act to amend the general business law, in relation to requiring a
notice to be posted regarding skimming
 
 
PURPOSE:
 
To notify consumers and users of electronic benefit transfer cards of
potential skimming risks.
 
 
SUMMARY OF PROVISIONS:
 
Section 1 amends the general business law by adding a new section 390-e
requiring a skimming awareness notice.
 
Subdivision 1(a) defines "electronic benefit transfer card."
 
Subdivision 1(b) defines "skimming."

Subdivision 2 requires every person, firm, partnership, association or
corporation that is engaged in a sales transaction and accepts electron-
ic benefit transfer cards to place a sign at the point of sale contain-
ing a notice regarding skimming, the language of which shall be promul-
gated by the secretary of state. States that said sign shall include
steps customers can take to protect themselves from skimming as well as
an appropriate contact number to report incidences of suspected skim-
ming.
 
Subdivision 3(a) imposes a civil penalty that shall not exceed two
hundred fifty dollars per point of sale that lacks a skimming notice on
any person, firm, partnership, association or corporation that fails to
comply with the requirements of this section. Subdivision 3(b) states
that should the provided sign be removed, damaged, or altered by any
person other than the person or entities required to provide such
notice, such person or entities shall have no liability for failure to
comply with subdivision 2 as long as such notice is replaced within ten
business days from becoming aware of the defect.
 
Section 2 sets the effective date.
 
 
JUSTIFICATION:
 
According to OTDA data provided to the Legal Aid Society of New York, at
least 2,208 low-income New Yorkers have been affected by benefit theft
through EBT card skimming as of August 2022. This bill seeks to protect
personal consumer data by increasing consumers' and sellers' understand-
ing of skimming and requiring sellers or points of sales to notify
customers of potential skimming schemes.
 
 
LEGISLATIVE HISTORY:
 
This is a new bill in the Assembly.
 
 
FISCAL IMPACT ON THE STATE:
 
None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

A04023 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4023--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 9, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  ROZIC,  GONZALEZ-ROJAS,  ANDERSON, MITAYNES,
          SEAWRIGHT, SHIMSKY, GUNTHER, SIMON, AUBRY, MIKULIN, CHANG, BROOK-KRAS-
          NY, McDONOUGH, GRAY -- read once and  referred  to  the  Committee  on
          Consumer Affairs and 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 requiring a
          notice to be posted regarding skimming
 
          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  390-e to read as follows:
     3    §  390-e.  Skimming  awareness  notice.  1.  For  the purposes of this
     4  section, the following terms shall have the following meanings:
     5    (a) "electronic benefit transfer card" means  any  medical  assistance
     6  card,  food  stamp assistance card, public assistance card, or any other
     7  identification, authorization card or electronic access device issued by
     8  the state or a social services district as defined in subdivision  seven
     9  of  section  two  of  the social services law which entitles a person to
    10  obtain public assistance  benefits  under  a  local,  state  or  federal
    11  program  administered by the state, its political subdivisions or social
    12  services districts; and
    13    (b) "skimming" shall be defined as  obtaining  a  consumer's  personal
    14  identifying  information as defined in subdivision one of section 190.77
    15  of the penal law through the use of  a  skimmer  device  as  defined  in
    16  subdivision two of section 190.85 of the penal law.
    17    2.  Notwithstanding any other law to the contrary, every person, firm,
    18  partnership, association or corporation who is engaged in a sales trans-
    19  action and accepts electronic benefit transfer cards shall place a  sign
    20  at  the point of sale containing a notice regarding skimming.  Such sign
    21  shall include steps customers can take to protect themselves from  skim-
    22  ming and an appropriate contact number as determined by the secretary of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05962-02-3
        A. 4023--A                          2
 
     1  state  to  report  incidences  of suspected skimming.   The secretary of
     2  state shall make available on the department of state's website, a model
     3  sign that such establishments may use to comply with the  provisions  of
     4  this section.
     5    3.  (a)  Any person, firm, partnership, association or corporation who
     6  fails to comply with the requirements of this section shall be issued  a
     7  warning  and  provided with information on compliance with this section.
     8  For each additional violation for failure  to  comply,  such  person  or
     9  entity shall be assessed a civil penalty not to exceed two hundred fifty
    10  dollars  per  point  of sale which lacks the notice required pursuant to
    11  subdivision two of this section.
    12    (b) If the notice required pursuant to subdivision two of this section
    13  has been provided and such notice is subsequently removed,  damaged,  or
    14  altered  by  any  person  other  than the person or entities required to
    15  provide such notice, such person or entities shall have no liability for
    16  a failure to comply with subdivision two of this section as long as such
    17  notice is replaced within ten business days from such person or entities
    18  becoming aware of the defect.
    19    § 2. This act shall take effect on the ninetieth day  after  it  shall
    20  have become a law.

A04023 LFIN:

 
NO LFIN

A04023 Chamber Video/Transcript: