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  • NJ A1970
  • Prohibits retail sales establishment from storing certain magnetic-stripe data; requires reimbursement for costs incurred by financial institution due to breach of security.
Introduced
(1/27/2016)
In Committee
(5/12/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill prohibits a retail sales establishment from retaining or storing the full magnetic-stripe data, including Visa Card Verification Value 2 or MasterCard Card Validation Code 2, obtained from a credit card, debit card, or access device on any system components after a response to the retail sales establishment's authorization request has been received. However, notwithstanding the above, a retail sales establishment may retain the account number, expiration date, and name contained on the credit card. The bill also provides that a business or public entity that is required to provide notice of a breach of security of computerized records to a customer pursuant to subsection a. or b. of section 12 of P.L.2005, c.226 (C.56:8-163) will be liable to a financial institution for the costs incurred by that financial institution in protecting the personal information of a customer or providing financial services to that customer as a result of a potential or actual breach of security of the computerized records of the business or public entity, including, but not limited to: (1) the cancellation or re-issuance by any financial institution of any credit card, debit card, or access device; (2) the closure of any deposit, transaction, share draft, or other account and any action to stop payments or block transactions with respect to a customer's account; (3) the opening or re-opening of any deposit, transaction, share draft, or other account for any customer of the financial institution; and (4) any refund or credit made to any customer of the financial institution as a result of a breach of security. The bill also adds a definition of "financial institution" to the "Identity Theft Prevention Act." It defines a financial institution as a bank, savings bank, savings and loan association, mutual savings bank, or credit union organized, chartered, or holding a license or authorization certificate under the law of this State, any other state, the United States, or of any other country, or the parent or the subsidiary of a financial institution. The term also includes any person who issues an access device and agrees with a consumer to provide electronic fund transfer services.
2nd Reading in the Assembly, Financial Institutions and Insurance
Reported out of Assembly Committee, 2nd Reading  (on 5/12/2016)
 
 
Date Chamber Action Description
5/12/2016 A Reported out of Assembly Committee, 2nd Reading
5/12/2016 Assembly Financial Institutions and Insurance Hearing (10:00 5/12/2016 Committee Room 16, 4th Floor)
1/27/2016 A Introduced, Referred to Assembly Financial Institutions and Insurance Committee
Date Motion Yea Nay Other
Detail 5/12/2016 Assembly Financial Institutions and Insurance Committee: Reported Favorably 8 3 2