MOBILE Act of 2018

[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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