H*3509(Rat #0351, Act #0305 of 2000)  General Bill, By Simrill, Mason, Robinson, 
Moody-Lawrence, Altman, Davenport, Hamilton, Kirsh, Leach, Meacham, J.H. Neal and 
Sandifer
 A BILL TO AMEND CHAPTER 13, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO FORGERY, LARCENY, AND SIMILAR OFFENSES, BY ADDING ARTICLE 2,
 ENTITLED THE "PERSONAL FINANCIAL SECURITY ACT" SO AS TO PROVIDE FOR THE
 OFFENSE OF FINANCIAL IDENTITY FRAUD AND PENALTIES FOR VIOLATION; TO FURTHER
 AMEND CHAPTER 13, TITLE 16 BY DESIGNATING SECTIONS 16-13-10 THROUGH 16-13-490
 AS ARTICLE 1 OF THAT CHAPTER; AND TO ESTABLISH A JOINT LEGISLATIVE STUDY
 COMMITTEE TO STUDY PERSONAL INFORMATION PRIVACY ISSUES, SET FORTH ITS
 MEMBERSHIP, AND THE DATE FOR THE COMMITTEE TO REPORT TO THE GENERAL ASSEMBLY
 AND BE DISSOLVED.-AMENDED TITLE

   02/11/99  House  Introduced and read first time HJ-6
   02/11/99  House  Referred to Committee on Judiciary HJ-6
   03/31/99  House  Committee report: Favorable with amendment
                     Judiciary HJ-2
   04/06/99  House  Amended HJ-31
   04/06/99  House  Read second time HJ-32
   04/07/99  House  Read third time and sent to Senate HJ-14
   04/08/99  Senate Introduced and read first time SJ-9
   04/08/99  Senate Referred to Committee on Judiciary SJ-9
   04/05/00  Senate Committee report: Favorable with amendment
                     Judiciary SJ-6
   04/06/00  Senate Amended SJ-70
   04/06/00  Senate Read second time SJ-70
   04/11/00  Senate Read third time and returned to House with
                     amendments SJ-8
   04/19/00  House  Senate amendment amended HJ-56
   04/19/00  House  Returned to Senate with amendments HJ-57
   04/20/00  Senate Non-concurrence in House amendment SJ-15
   04/25/00  House  House insists upon amendment and conference
                     committee appointed Reps. Simrill, D. Smith and
                     F. Smith HJ-1
   04/26/00  Senate Conference committee appointed Sens. Bryan,
                     Glover, Gregory SJ-10
   05/04/00  Senate Free conference powers granted SJ-20
   05/04/00  Senate Free conference committee appointed Sens. Bryan,
                     Glover, Gregory SJ-20
   05/04/00  Senate Free conference report received and adopted SJ-20
   05/16/00  House  Free conference powers granted HJ-38
   05/16/00  House  Free conference committee appointed Reps.
                     Simrill, F. Smith and D. Smith HJ-40
   05/16/00  House  Free conference report received and adopted HJ-40
   05/17/00  Senate Ordered enrolled for ratification SJ-10
   05/25/00         Ratified R 351
   05/30/00         Signed By Governor
   06/12/00         Effective date 05/30/00; This act applies to all
                     offenses committed on or after effective date
   06/12/00         Copies available
   06/12/00         Act No. 305

AN ACT TO AMEND CHAPTER 13, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FORGERY, LARCENY, AND SIMILAR OFFENSES, BY ADDING ARTICLE 2, ENTITLED THE "PERSONAL FINANCIAL SECURITY ACT" SO AS TO PROVIDE FOR THE OFFENSE OF FINANCIAL IDENTITY FRAUD AND PENALTIES FOR VIOLATION; TO FURTHER AMEND CHAPTER 13, TITLE 16 BY DESIGNATING SECTIONS 16-13-10 THROUGH 16-13-490 AS ARTICLE 1 OF THAT CHAPTER; AND TO ESTABLISH A JOINT LEGISLATIVE STUDY COMMITTEE TO STUDY PERSONAL INFORMATION PRIVACY ISSUES, SET FORTH ITS MEMBERSHIP, AND THE DATE FOR THE COMMITTEE TO REPORT TO THE GENERAL ASSEMBLY AND BE DISSOLVED.

Be it enacted by the General Assembly of the State of South Carolina:

Personal Financial Security Act, offense of financial identity fraud, penalties, exceptions

SECTION 1. Chapter 13, Title 16 of the 1976 Code is amended by adding:

Section 16-13-500. This article may be cited as the 'Personal Financial Security Act'.

Section 16-13-510. (A) It is unlawful for a person to commit the offense of financial identity fraud.

(B) A person is guilty of financial identity fraud when he, without the authorization or permission of another person and with the intent of unlawfully appropriating the financial resources of that person to his own use or the use of a third party:

(1) obtains or records identifying information which would assist in accessing the financial records of the other person; or

(2) accesses or attempts to access the financial resources of the other person through the use of identifying information as defined in subsection (C).

(C) Identifying information includes, but is not limited to:

(1) social security numbers;

(2) driver's license numbers;

(3) checking account numbers;

(4) savings account numbers;

(5) credit card numbers;

(6) debit card numbers;

(7) personal identification numbers;

(8) electronic identification numbers;

(9) digital signatures; or

(10) other numbers or information which may be used to access a person's financial resources.

(D) A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both. The court may order restitution to the victim pursuant to the provisions of Section 17-25-322.

Section 16-13-520. In a criminal proceeding brought pursuant to this article, the crime is considered to have been committed in a county in which a part of the financial identity fraud took place, regardless of whether the defendant was ever actually in that county.

Section 16-13-530. Nothing in this article may be construed to apply to:

(1) the lawful acquisition and use of credit or other information in the course of a bona fide consumer or commercial transaction or in connection with an account by any financial institution or entity defined in or required to comply with the Federal Fair Credit Reporting Act, 15 U.S.C.A. Section 1681, or the Federal Gramm-Leach-Bliley Financial Modernization Act, 113 Stat. 1338;

(2) the lawful, good faith exercise of a security interest or a right to offset exercised by a creditor, agency, or financial institution; or

(3) the lawful, good faith compliance by a party when required by a warrant, levy, attachment, court order, or other judicial or administrative order, decree, or directive."

Designation of article

SECTION 2. (1) Sections 16-13-10 through 16-13-490 of the 1976 Code are designated as Article 1, Chapter 13 of Title 16 of the 1976 Code.

(2) Article 1 of Chapter 13 of Title 16 of the 1976 Code is amended by adding:

Joint legislative study committee, membership, report

SECTION 3. (A) A joint legislative study committee is created to study personal information privacy issues, to examine the relationship of information technology and privacy issues, and to seek to establish an appropriate balance which promotes the use of information for legitimate business purposes, including biometric technology for use in preventing identity theft and fraud, while safeguarding the personal privacy rights of the citizens of South Carolina.

(B) The joint legislative study committee shall be composed of nineteen members to include:

(1) three members of the House of Representatives to be appointed by the Chairman of the House Judiciary Committee;

(2) three members of the Senate to be appointed by the Chairman of the Senate Judiciary Committee;

(3) two members of the media, one to be appointed by the Chairman of the House Judiciary Committee and one to be appointed by the Chairman of the Senate Judiciary Committee;

(4) one member of the South Carolina Merchants Association to be jointly appointed by the Chairmen of the House and Senate Judiciary committees;

(5) a representative of the National Organization Mandating Equitable Databases or if that organization chooses not to participate, a representative of a similar personal privacy protection advocacy group to be jointly appointed by the Chairmen of the House and Senate Judiciary committees;

(6) two consumer victims of identity fraud, one to be appointed by the Chairman of the House Judiciary Committee and one to be appointed by the Chairman of the Senate Judiciary Committee;

(7) three members of the financial services industry, one to be appointed by the Chairman of the Senate Judiciary Committee, one to be appointed by the Chairman of the House Judiciary Committee, and one to be jointly appointed by both Chairmen;

(8) two representatives of consumer protection organizations to be jointly appointed by both Chairmen; and

(9) two members of the information technology industry, one to be appointed by the Chairman of the Senate Judiciary Committee and one to be appointed by the Chairman of the House Judiciary Committee.

(C) The study committee must submit its report to the General Assembly no later than October 15, 2000, at which time the committee is dissolved.

(D) The study committee shall be staffed by personnel as provided and assigned by the Chairman of the House Judiciary Committee from the House staff and by the Chairman of the Senate Judiciary Committee from the Senate staff.

Time effective

SECTION 4. This act takes effect upon approval by the Governor and applies to all offenses committed on or after that date.

Ratified the 25th day of May, 2000.

Approved the 30th day of May, 2000.