[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2854 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 2854
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 16, 2018
Mr. Scott (for himself, Ms. Cortez Masto, and Mr. Perdue) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``MOBILE Act of 2018''.
SEC. 2. 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) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of the Treasury shall submit to Congress a
report on--
(1) the decrease in the unbanked or underbanked populations
through the use of the technology described in this Act in
rural communities and underserved populations; and
(2) the increased incidence of violations of Federal or
State laws described in subsection (c).
(e) 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.
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