TRENTON, N.J. (9/18/14)--Data breach protection and electronic lien/titling (ELT) bills, two legislative priorities for the New Jersey Credit Union League, were introduced in the state Senate this week.
Thursday, the Assembly Financial Institutions and Insurance Committee considered league-supported legislation (A1239), sponsored by Assembly Speaker Vincent Prieto (D-Seacaucus), that would prohibit a retail sales establishment from retaining or storing magnetic-stripe data obtained from a credit or debit card after a sales authorization request has been answered (The Daily Exchange Sept. 18).
The bill also provides that a business or public entity responsible for a security breach will be liable to a card issuer for the costs incurred in protecting customers' personal information or providing on-going financial services to impacted customers.
A companion bill (S965), sponsored by Sen. Shirley Turner (D-Mercer, Hunterdon), is pending committee consideration in the upper house.
On Monday, Sen. Linda Greenstein (D-Cranbury) introduced a Senate companion bill (S2423) to league-supported Assembly legislation (A3211) that would require the New Jersey Motor Vehicle Commission (MVC) to establish an ELT system to replace the state's paper-based system.
Introduced in May, the Assembly bill is sponsored by Assemblymen Craig Coughlin (D-Woodbridge), chairman of the Assembly Financial Institutions and Insurance Committee.
This legislation requires the MVC to complete a study that will determine whether it has the resources and capability to establish and implement ELT within one year of the bill's enactment. If the chief administrator determines that the commission does not have the necessary resources and capabilities, the commission must contract with a qualified private-sector ELT provider.
The bill also mandates that within one year of the date that ELT becomes operational, all lien holders must participate in the system, except individuals and those lien holders who are not normally engaged in the business of financing motor vehicles and are administratively exempted by the MVC.