L.L. 2005/044
Enactment date: 5/19/2005
Int. No. 139-A
By Council Members Reed, Boyland, Brewer, Gerson, Gioia, Jackson, James, Nelson, Quinn, Addabbo, Liu, Gentile, Gennaro, Koppell, Weprin, and The Public Advocate (Ms. Gotbaum)
A Local Law to amend the administrative code of the city of New York, in relation to identity theft.
Be it enacted by the Council as follows:
Section One. Legislative declaration. The Council finds that acts of identity theft are plaguing New Yorkers. Federal Trade Commission statistics for 2002 and 2003 indicate that identity theft is the single most common consumer fraud complaint in the nation. New York City residents are as likely to be victimized by identity theft as the citizens of many cities within the United States.
The Council further finds that identity thieves are constantly developing new ways to harm consumers. Some hack into computer systems storing sensitive information and misuse the contents to defraud innocent victims. Others obtain personal information by stealing paper records or manipulating consumers to unknowingly surrender such data. Most recently, the practice of "skimming," or swiping an Automated Teller Machine card or credit card in a device programmed to steal the personal identification encoded in the card, has facilitated identity theft in small businesses throughout the City. Skimming can be done with a hand-held device or through an instrument installed in a seemingly innocuous Automated Teller Machine.
The Council finds that such acts harm individual consumers and tarnish the good name of hard-working, upstanding New York City business people. Those few bad actors who use their professional resources to engage in identity theft should not be permitted to profit from City residents or act as authorized licensees of the City. The Council thus finds it necessary and appropriate to prevent chronic identity thieves from receiving or maintaining licenses from the Department of Consumer Affairs.
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[Consolidated provisions are not included in this Appendix A]
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§ 4. This local law shall take effect 120 days after it shall have been enacted into law; provided that the commissioner may take any actions necessary prior to such effective date for the implementation of this local law including, but not limited to, establishing guidelines and promulgating rules.