MOBILE Act of 2017

Bill: 115-hr-1457
Sponsor: full_name: Rep. Tipton, Scott  R. [R-CO-3]
Introduced: 2017-03-09
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Business records

Financial services and investments

Licensing and registrations

Motor vehicles

Photography and imaging
Latest action: action_date: 2018-01-30
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2017-03-09
action_desc: Introduced in House
text: <p><b>Making Online Banking Initiation Legal and Easy Act of 2017 or the</b> <b>MOBILE Act of 2017</b></p> <p>This bill authorizes a financial institution, with an individual's consent, to record personal information from a swipe or copy of an individual's driver's license or personal identification card and store the information electronically for the purpose of verifying the authenticity of the driver's license or identification card, verifying the identity of the individual, or complying with legal requirements. </p> <p>Financial institutions must not sell, rent, transfer, or make such information available to another person, other than an affiliate.</p>

action_date: 2018-01-22
action_desc: Reported to House with amendment(s)
text: <p>(Sec. 1) This bill authorizes a financial institution to record personal information from a scan, copy, or image of an individual's driver's license or personal identification card and store the information electronically when an individual initiates an online request to open an account or obtain a financial product. The financial institution may use the information for the purpose of verifying the authenticity of the driver's license or identification card, verifying the identity of the individual, or complying with legal requirements. </p> <p>The financial institution must delete any copy or image of an individual's driver's license or personal identification card after use.</p>  <p>

action_date: 2018-01-29
action_desc: Passed House amended
text: <p>(Sec. 1) This bill authorizes a financial institution to record personal information from a scan, copy, or image of an individual's driver's license or personal identification card and store the information electronically when an individual initiates an online request to open an account or obtain a financial product. The financial institution may use the information for the purpose of verifying the authenticity of the driver's license or identification card, verifying the identity of the individual, or complying with legal requirements. </p> <p>The financial institution must delete any copy or image of an individual's driver's license or personal identification card after use. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 1457 IN THE HOUSE OF REPRESENTATIVES March 9, 2017 Mr. Tipton (for himself, Mr. Hultgren , Mr. McHenry , Ms. Sewell of Alabama , Ms. Sinema , and Mr. David Scott of Georgia ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish requirements for use of a driver’s license or personal identification card by certain financial institutions for opening an account or obtaining a financial product or service, and for other purposes.

1. Short title This Act may be cited as the Making Online Banking Initiation Legal and Easy Act of 2017 or the MOBILE Act of 2017 . 2. Definitions In this Act: (1) Affiliate The term affiliate has the meaning given such term in section 2(k) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841(k) ). (2) Driver’s license The term driver’s license means a license issued by a State to an individual which authorizes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws The term Federal bank secrecy laws means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) section 123 of Public Law 91–508 ; and (C) subchapter II of chapter 53 of title 31, United States Code. (4) Financial institution The term financial institution means— (A) an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); (B) an insured credit union, as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ); or (C) any affiliate of an insured depository institution or insured credit union. (5) Financial product or service The term financial product or service has the meaning given such term in section 1002(15) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481(15) ). (6) Personal identification card The term personal identification card means an identification document issued by a State or local government to an individual solely for the purpose of identification of such individual. (7) State The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other commonwealth, possession, or territory of the United States. (8) Swipe The term swipe means the act of using a device on a driver’s license or personal identification card to decipher, in an electronically readable format, personal information displayed on or electronically encoded on the driver’s license or personal identification card. 3. Use of a driver’s license or personal identification card (a) In general With the consent of an individual, a financial institution may record personal information from a swipe of the individual’s driver’s license or personal identification card, or make a copy or receive an image of the individual’s driver’s license or personal identification card, and store or retain such information in any electronic format for purposes of opening an account with the financial institution or obtaining a financial product or service from the financial institution. Except as required to comply with Federal bank secrecy laws, the financial institution may only use the personal information— (1) to verify the authenticity of the driver’s license or personal identification card with the State that issued the driver’s license or personal identification card; (2) to verify the identity of the individual; and (3) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening the account or obtaining the financial product or service. (b) Notice to consumer A financial institution that swipes or copies an individual’s driver’s license or personal identification card in accordance with subsection (a) shall inform the individual about the type of information collected. (c) Restrictions on use of information Except as otherwise provided by law, a financial institution that obtains information from a swipe or a copy of a driver’s license or personal identification card as described in subsection (a) may not sell, rent, transfer, or make the personal information available to another person (other than an affiliate). 4. Relation to State law The provisions of this Act shall preempt and supersede any State law that conflicts with a provision of this Act, but only to the extent of such conflict.

tv_txt: IB 115th CONGRESS 2d Session H. R. 1457 IN THE HOUSE OF REPRESENTATIVES AN ACT To establish requirements for use of a driver’s license or personal identification card by certain financial institutions for opening an account or obtaining a financial product or service, and for other purposes.

1. Making online banking initiation legal and easy (a) Definitions In this section: (1) Affiliate The term affiliate has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 ). (2) Driver's license The term driver's license means a license issued by a State to an individual that authorizes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws The term Federal bank secrecy laws means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) section 123 of Public Law 91–508 (84 Stat. 1116); and (C) subchapter II of chapter 53 of title 31, United States Code. (4) Federally recognized Indian Tribe The term federally recognized Indian Tribe has the meaning given the term by the Secretary of the Interior under section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131(a) ). (5) Financial institution The term financial institution means— (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (6) Financial product or service The term financial product or service has the meaning given the term in section 1002(15) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481(15) ). (7) Insured credit union The term insured credit union has the meaning given the term in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (8) Insured depository institution The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (9) Online service The term online service means any Internet-based service, such as a Web site or mobile application. (10) Personal identification card The term personal identification card means an identification document issued by a State, local government, or federally recognized Indian Tribe to an individual solely for the purpose of identification of that individual. (11) Personal information The term personal information means the information displayed on or electronically encoded on a driver’s license or personal identification card that is reasonably necessary to fulfill the purpose and uses permitted by subsection (b). (12) State The term State means any State, commonwealth, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, or the United States Virgin Islands. (13) Scan The term scan means the act of using a device or software to decipher, in an electronically readable format, personal information displayed on or electronically encoded on a driver’s license or personal identification card. (b) Use of a driver's license or personal identification card (1) In general When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2). (2) Uses of information Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)— (A) to verify the authenticity of the driver’s license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. (3) Deletion of image A financial institution that makes a copy or receives an image of a driver’s license or personal identification card of an individual in accordance with paragraph (1) shall, after using the image for the purposes described in paragraph (2), permanently delete, within a reasonable amount of time— (A) any image of the driver’s license or personal identification card, as applicable; and (B) any copy of any such image. (c) Disclosure of personal information Nothing in this section shall be construed to amend, modify, or otherwise affect any State or Federal laws that govern a financial institution’s disclosure and security of personal information that is not publicly available. (d) Relation to State law The provisions of this section shall preempt and supersede any State law that conflicts with a provision of this section, but only to the extent of such conflict.

Passed the House of Representatives January 29, 2018. Karen L. Haas, Clerk.

tv_txt: IIB 115th CONGRESS 2d Session H. R. 1457 IN THE SENATE OF THE UNITED STATES January 30, 2018 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To establish requirements for use of a driver’s license or personal identification card by certain financial institutions for opening an account or obtaining a financial product or service, and for other purposes.

1. Making online banking initiation legal and easy (a) Definitions In this section: (1) Affiliate The term affiliate has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 ). (2) Driver's license The term driver's license means a license issued by a State to an individual that authorizes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws The term Federal bank secrecy laws means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) section 123 of Public Law 91–508 (84 Stat. 1116); and (C) subchapter II of chapter 53 of title 31, United States Code. (4) Federally recognized Indian Tribe The term federally recognized Indian Tribe has the meaning given the term by the Secretary of the Interior under section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131(a) ). (5) Financial institution The term financial institution means— (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (6) Financial product or service The term financial product or service has the meaning given the term in section 1002(15) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481(15) ). (7) Insured credit union The term insured credit union has the meaning given the term in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (8) Insured depository institution The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (9) Online service The term online service means any Internet-based service, such as a Web site or mobile application. (10) Personal identification card The term personal identification card means an identification document issued by a State, local government, or federally recognized Indian Tribe to an individual solely for the purpose of identification of that individual. (11) Personal information The term personal information means the information displayed on or electronically encoded on a driver’s license or personal identification card that is reasonably necessary to fulfill the purpose and uses permitted by subsection (b). (12) State The term State means any State, commonwealth, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, or the United States Virgin Islands. (13) Scan The term scan means the act of using a device or software to decipher, in an electronically readable format, personal information displayed on or electronically encoded on a driver’s license or personal identification card. (b) Use of a driver's license or personal identification card (1) In general When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2). (2) Uses of information Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)— (A) to verify the authenticity of the driver’s license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. (3) Deletion of image A financial institution that makes a copy or receives an image of a driver’s license or personal identification card of an individual in accordance with paragraph (1) shall, after using the image for the purposes described in paragraph (2), permanently delete, within a reasonable amount of time— (A) any image of the driver’s license or personal identification card, as applicable; and (B) any copy of any such image. (c) Disclosure of personal information Nothing in this section shall be construed to amend, modify, or otherwise affect any State or Federal laws that govern a financial institution’s disclosure and security of personal information that is not publicly available. (d) Relation to State law The provisions of this section shall preempt and supersede any State law that conflicts with a provision of this section, but only to the extent of such conflict.

Passed the House of Representatives January 29, 2018. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 388 115th CONGRESS 2d Session H. R. 1457 [Report No. 115–523] IN THE HOUSE OF REPRESENTATIVES March 9, 2017 Mr. Tipton (for himself, Mr. Hultgren , Mr. McHenry , Ms. Sewell of Alabama , Ms. Sinema , and Mr. David Scott of Georgia ) introduced the following bill; which was referred to the Committee on Financial Services January 22, 2018 Additional sponsors: Mr. Loudermilk , Mrs. Roby , Mr. Byrne , Mr. Stivers , Mr. Young of Alaska , Mr. Cook , Mr. Smith of Texas , Mr. Poliquin , Mr. Meeks , Mr. Pittenger , Mr. Gonzalez of Texas , Mr. Royce of California , Mr. Rothfus , Mr. Lucas , Mr. Kustoff of Tennessee , Ms. Tenney , Mr. Budd , Mr. Rutherford , Mr. Crist , Mr. Messer , Mr. Gottheimer , Ms. Velázquez , Mr. Delaney , Mr. Francis Rooney of Florida , and Mr. Valadao January 22, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on March 9, 2017 A BILL To establish requirements for use of a driver’s license or personal identification card by certain financial institutions for opening an account or obtaining a financial product or service, and for other purposes.

1. Making online banking initiation legal and easy (a) Definitions In this section: (1) Affiliate The term affiliate has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 ). (2) Driver's license The term driver's license means a license issued by a State to an individual that authorizes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws The term Federal bank secrecy laws means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) section 123 of Public Law 91–508 (84 Stat. 1116); and ©) subchapter II of chapter 53 of title 31, United States Code. (4) Federally recognized Indian Tribe The term federally recognized Indian Tribe has the meaning given the term by the Secretary of the Interior under section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131(a) ). (5) Financial institution The term financial institution means— (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (6) Financial product or service The term financial product or service has the meaning given the term in section 1002(15) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481(15) ). (7) Insured credit union The term insured credit union has the meaning given the term in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (8) Insured depository institution The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (9) Online service The term online service means any Internet-based service, such as a Web site or mobile application. (10) Personal identification card The term personal identification card means an identification document issued by a State, local government, or federally recognized Indian Tribe to an individual solely for the purpose of identification of that individual. (11) Personal information The term personal information means the information displayed on or electronically encoded on a driver’s license or personal identification card that is reasonably necessary to fulfill the purpose and uses permitted by subsection (b). (12) State The term State means any State, commonwealth, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, or the United States Virgin Islands. (13) Scan The term scan means the act of using a device or software to decipher, in an electronically readable format, personal information displayed on or electronically encoded on a driver’s license or personal identification card. (b) Use of a driver's license or personal identification card (1) In general When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2). (2) Uses of information Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)— (A) to verify the authenticity of the driver’s license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. (3) Deletion of image A financial institution that makes a copy or receives an image of a driver’s license or personal identification card of an individual in accordance with paragraph (1) shall, after using the image for the purposes described in paragraph (2), permanently delete, within a reasonable amount of time— (A) any image of the driver’s license or personal identification card, as applicable; and (B) any copy of any such image. (c) Disclosure of personal information Nothing in this section shall be construed to amend, modify, or otherwise affect any State or Federal laws that govern a financial institution’s disclosure and security of personal information that is not publicly available. (d) Relation to State law The provisions of this section shall preempt and supersede any State law that conflicts with a provision of this section, but only to the extent of such conflict.

January 22, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed