Section 1 Short title
This Act may be cited as the “Making Online Banking Initiation Legal and Easy Act of 2016” or the “MOBILE Act of 2016”.
Making Online Banking Initiation Legal and Easy Act of 2016
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.
Sec. 2 Definitions
In this Act:
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)).
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.
Federal bank secrecy laws— The term Federal bank secrecy laws means—
section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);
section 123 of Public Law 91–508; and
subchapter II of chapter 53 of title 31, United States Code.
Financial institution— The term financial institution means—
an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);
an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); or
any affiliate of an insured depository institution or insured credit union.
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)).
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.
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.
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.
Sec. 3 Use of a driver’s license or personal identification card
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 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—
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;
to verify the identity of the individual; and
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.
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.
Restrictions on use of information— 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).
Sec. 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.