Second Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 16-0939.01 Jery Payne x2157     SENATE BILL 16-141
                   SENATE SPONSORSHIP
 Jones, 
 
                    HOUSE SPONSORSHIP
 Foote, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Business, Labor, & Technology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning enactment of the "Don't Swipe My Identity Act"
            protecting a consumer's machine-readable information
            on certain identification documents issued by the
            department of revenue.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill prohibits a merchant from reading, collecting, or decoding
       machine-readable information from a driver's license or identification
       card or storing this information after the sale is consummated. The
       following persons are exempt:
                 A peace officer, state agency, or local government agency
                 if acting within the course and scope of official duties; and
                 A business acting as required by state or federal law; or 
                 A business preventing fraud or other criminal activity when
                 an individual returns an item or requests a refund or an
                 exchange if the business entity only reads the individual's
                 name, address, and date of birth.
            A violation is a class 1 misdemeanor and a deceptive trade
       practice. This allows the state attorney general or a district attorney to
       seek civil penalties for a violation.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 6-1-726 as
       follows:
            6-1-726.  Identification document misuse - privacy of electronic
       information - definitions - penalties. (1) Short title. The short title
       of this section is the "Don't Swipe My Identity Act".
            (2)  Limitations on machine-readable portions of identification
       documents. Except as provided in subsection (3) of this section, a
       person selling at retail commits identification document misuse
       if the person knowingly:
            (a)  Reads, collects, or decodes any information from a
       machine-readable portion of an identification document;
            (b)  Retains after the retail transaction has been
       consummated any information obtained from a
       machine-readable portion of an identification document; or
            (c)  Transmits to another person any information obtained
       from the machine-readable portion of an identification
       document. 
            (3)  Exceptions. (a)  This section does not apply to a peace
       officer, state agency, or local government agency if acting
       within the course and scope of official duties.
            (b)  This section does not apply to a business entity:
            (I)  Acting as required by state or federal law; or
            (II)  Preventing fraud or other criminal activity when an
       individual returns an item or requests a refund or an exchange
       if the business entity:
            (A)  Uses a fraud prevention service company or system;
       and 
            (B)  Only reads the individual's name, address, and date of
       birth.
            (4)  Violations. (a)  Identification document misuse is a class
       1 misdemeanor, punishable under section 18-1.3-501, C.R.S. Each
       document that has its machine-readable information read,
       collected, decoded, retained, or transmitted in violation of
       subsection (2) of this section is a separate offense.
            (b)   A person engages in a deceptive trade practice when,
       in the course of such person's business, vocation, or occupation,
       the person commits identification document misuse in violation
       of this section.
            (5)  Definitions. For the purposes of this section: 
            (a)  "Identification document" means a driver's license,
       minor driver's license, commercial driver's license, or
       identification card issued under article 2 of title 42, C.R.S.
            (b)  "Retail" means the activity of a business entity,
       including a sole proprietorship or partnership, that sells goods
       to the final consumers.
            SECTION 2.  Effective date - applicability. This act takes effect
       July 1, 2016, and applies to offenses committed on or after said date.
            SECTION 3.  Safety clause. The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.