S 7426: Relates to the unlawful use of a New York driver's license or identification card.

  
  STATE OF NEW YORK ________________________________________________________________________ 7426 2025-2026 Regular Sessions  IN SENATE April 16, 2025 ___________ Introduced by Sen. HOYLMAN-SIGAL -- 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-ss to read as follows: 3 § 399-ss. 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; 24 (3) date of birth; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07726-01-5 
 S. 7426 2 1 (4) driver's license number or identification card number; 2 d. to record, retain, or transmit information as required by state or 3 federal law; 4 e. to transmit information to a consumer reporting agency, financial 5 institution, or debt collector to be used as permitted by the federal 6 Fair Credit Reporting Act, Gramm-Leach-Bliley Act, or the Fair Debt 7 Collection Practices Act; or 8 f. to record, retain, or transmit information by a covered entity 9 governed by the medical privacy and security rules issued by the federal 10 Department of Health and Human Services, Parts 160 and 164 of the Code 11 of Federal Regulations, established pursuant to the Health Insurance 12 Portability and Availability Act of 1996. 13 2. No person, business, firm, partnership, association, or corpo- 14 ration, not including the state or its political subdivisions, shall 15 retain any information obtained from scanning an individual's New York 16 state driver's license or identification card, except as permitted in 17 subdivision one of this section. 18 3. No person, business, firm, partnership, association, or corpo- 19 ration, not including the state or its political subdivisions, shall 20 sell or disseminate to a third party any information obtained under this 21 section for any purpose, including but not limited to, marketing, adver- 22 tising, or promotional activities, except as permitted in subdivision 23 one of this section. 24 4. A person, business, firm, partnership, association, or corporation, 25 not including the state or its political subdivisions, covered under 26 this section shall make reasonable efforts, through systems testing and 27 other means, to ensure that the requirements of this section are met. 28 5. Any waiver of a provision of this section is contrary to public 29 policy and is void and unenforceable. 30 6. Each violation of this section shall be punishable by a civil 31 penalty of not more than one thousand dollars. 32 7. For the purposes of this section: 33 a. "Consumer reporting agency" shall have the same meaning as in the 34 federal Fair Credit Reporting Act, title 15 United States Code section 35 1681a(f). 36 b. "Covered entity" shall have the same meaning as in the security 37 rules issued by the federal Department of Health and Human Services, 38 Parts 160 and 164 of the Code of Federal Regulations, established pursu- 39 ant to the Health Insurance Portability and Availability Act of 1996. 40 c. "Debt collector" shall have the same meaning as in the federal Fair 41 Debt Collection Practices Act, title 15 United States Code section 42 1692a. 43 d. "Financial institution" shall have the same meaning as in the 44 federal Gramm-Leach-Bliley Act, title 15 United States Code section 45 6809. 46 § 2. Subdivision 8 of section 65-b of the alcoholic beverage control 47 law, as added by chapter 519 of the laws of 1999, is amended to read as 48 follows: 49 8. A licensee or agent or employee of such licensee shall only use the 50 information recorded and maintained through the use of such devices for 51 the purposes contained in paragraph (a) of subdivision seven of this 52 section, and [shall only use such devices for the purposes contained in 53 subdivision two of this section. No licensee or agent or employee of a 54 licensee shall resell or disseminate the information recorded during 55 such scan to any third person. Such prohibited resale or dissemination 56 includes, but is not limited to, any advertising, marketing or promo- 
 S. 7426 3 1 tional activities. Notwithstanding the restrictions imposed by this 2 subdivision, such records may be released pursuant to a court ordered 3 subpoena or pursuant to any other statute that specifically authorizes 4 the release of such information. Each violation of this subdivision 5 shall be punishable by a civil penalty of not more than one thousand 6 dollars] in accordance with and subject to the provisions of section 7 three hundred ninety-nine-ss of the general business law. 8 § 3. This act shall take effect immediately.