A07423 Summary:

BILL NOA07423A
 
SAME ASNo Same As
 
SPONSORRozic
 
COSPNSRRosenthal D, Hevesi, Bichotte Hermelyn, Beephan
 
MLTSPNSR
 
Add Art 42 1100 - 1107, Gen Bus L
 
Enacts the New York privacy act to require companies to disclose their methods of de-identifying personal information, to place special safeguards around data sharing and to allow consumers to obtain the names of all entities with whom their information is shared.
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A07423 Actions:

BILL NOA07423A
 
05/19/2023referred to consumer affairs and protection
05/23/2023reported referred to codes
06/05/2023amend and recommit to codes
06/05/2023print number 7423a
01/03/2024referred to codes
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A07423 Committee Votes:

CONSUMER AFFAIRS AND PROTECTION Chair:Rozic DATE:05/23/2023AYE/NAY:11/5 Action: Favorable refer to committee Codes
RozicAyeMikulinNay
FallAyeMillerNay
BurgosAyeBlumencranzNay
GallagherAyeBeephanNay
RajkumarAyeMaherNay
ForrestAye
WallaceAye
BoresAye
LeeAye
AlvarezAye
SimoneAye

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A07423 Floor Votes:

There are no votes for this bill in this legislative session.
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A07423 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7423--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 19, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  ROZIC, D. ROSENTHAL, HEVESI -- read once and
          referred to the  Committee  on  Consumer  Affairs  and  Protection  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
 
        AN ACT to amend the general business law, in relation to the  management
          and oversight of personal data

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "New York data protection act".
     3    §  2.  Legislative  intent.  1.  Privacy is a fundamental right and an
     4  essential element of freedom. Advances in technology have produced ramp-
     5  ant growth in the amount and categories of personal  data  being  gener-
     6  ated,   collected,  stored,  analyzed,  and  potentially  shared,  which
     7  presents both promise and peril. Companies collect, use  and  share  our
     8  personal  data  in  ways that can be difficult for ordinary consumers to
     9  understand. Opaque data processing policies make it impossible to evalu-
    10  ate risks  and  compare  privacy-related  protections  across  services,
    11  stifling  competition.  Algorithms  quietly make decisions with critical
    12  consequences for New York consumers, often with no human accountability.
    13  Behavioral advertising generates profits by turning people into products
    14  and their activity into assets. New York consumers deserve  more  notice
    15  and more control over their data and their digital privacy.
    16    2. This act seeks to help New York consumers regain their privacy.  It
    17  gives New York consumers the ability to exercise more control over their
    18  personal data and requires businesses to be responsible, thoughtful, and
    19  accountable  managers  of  that  information.  To achieve this, this act
    20  provides New York consumers a number  of  new  rights,  including  clear
    21  notice of how their data is being used, processed and shared; the abili-
    22  ty  to  access  and obtain a copy of their data in a commonly used elec-
    23  tronic format, with the ability to transfer it between services; and the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01642-10-3

        A. 7423--A                          2
 
     1  ability to correct inaccurate data and to delete their data.   This  act
     2  also  imposes  obligations  upon  businesses to maintain reasonable data
     3  security for personal data, to notify New York consumers of  foreseeable
     4  harms  arising from use of their data and to obtain specific consent for
     5  that use, and to conduct regular assessments to ensure that data is  not
     6  being  used  for  unacceptable  purposes.  These data assessments can be
     7  obtained and evaluated by the New York State Attorney  General,  who  is
     8  empowered  to  obtain  penalties  for violations of this act and prevent
     9  future violations.
    10    § 3. The general business law is amended by adding a new article 42 to
    11  read as follows:
    12                                 ARTICLE 42
    13                        NEW YORK DATA PROTECTION ACT
    14  Section 1100. Definitions.
    15          1101. Jurisdictional scope.
    16          1102. Consumer rights.
    17          1103. Controller, processor, and third party responsibilities.
    18          1104. Data brokers.
    19          1105. Limitations.
    20          1106. Enforcement.
    21          1107. Miscellaneous.
    22    § 1100. Definitions. The following definitions apply for the  purposes
    23  of this article unless the context clearly requires otherwise:
    24    1.  "Biometric information" means any personal data generated from the
    25  measurement or specific technological processing of a  natural  person's
    26  biological,  physical,  or  physiological characteristics that allows or
    27  confirms the unique identification of a natural person, including  fing-
    28  erprints, voice prints, iris or retina scans, facial scans or templates,
    29  and  gait.   "Biometric information" does not include a digital or phys-
    30  ical photograph, an audio or video recording, or any data generated from
    31  a digital or physical photograph, or an audio or video recording, unless
    32  such data is generated to identify a specific individual.
    33    2. "Business associate" has the same meaning as in  Title  45  of  the
    34  C.F.R., established pursuant to the federal Health Insurance Portability
    35  and Accountability Act of 1996.
    36    3.  "Consent" means a clear affirmative act signifying a freely given,
    37  specific, informed, and unambiguous indication of a consumer's agreement
    38  to the processing of data relating to the  consumer.    Consent  may  be
    39  withdrawn at any time, and a controller must provide clear, conspicuous,
    40  and  consumer-friendly  means  to withdraw consent. The burden of estab-
    41  lishing consent is on the controller.  Consent does not include: (a)  an
    42  agreement  of general terms of use or a similar document that references
    43  unrelated information in addition to personal data  processing;  (b)  an
    44  agreement  obtained through fraud, deceit or deception; (c) any act that
    45  does not constitute a user's intent to interact with another party  such
    46  as  hovering  over, pausing or closing any content; or (d) a pre-checked
    47  box or similar default.
    48    4. "Consumer" means a natural person who is a New York resident acting
    49  only in an individual or  household  context.  It  does  not  include  a
    50  natural  person  known  to  be  acting  in  a professional or employment
    51  context.
    52    5. "Controller" means the person who, alone or  jointly  with  others,
    53  determines the purposes and means of the processing of personal data.
    54    6. "Covered entity" has the same meaning as in Title 45 of the C.F.R.,
    55  established  pursuant  to  the  federal Health Insurance Portability and
    56  Accountability Act of 1996.

        A. 7423--A                          3
 
     1    7. "Data broker" means a person, or unit or units of a  legal  entity,
     2  separately  or together, that does business in the state of New York and
     3  knowingly collects, and sells to third parties, the personal data  of  a
     4  consumer with whom it does not have a direct relationship. "Data broker"
     5  does not include any of the following:
     6    (a)  a  consumer  reporting agency to the extent that it is covered by
     7  the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.); or
     8    (b) a financial institution to the extent that it is  covered  by  the
     9  Gramm-Leach-Bliley  Act  (Public  Law  106-102)  and  implementing regu-
    10  lations.
    11    8. "Decisions that produce legal  or  similarly  significant  effects"
    12  means  decisions  made by the controller that result in the provision or
    13  denial by the controller of  financial  or  lending  services,  housing,
    14  insurance,   education  enrollment  or  opportunity,  criminal  justice,
    15  employment opportunities, health care services or  access  to  essential
    16  goods or services.
    17    9.  "Deidentified  data"  means data that cannot reasonably be used to
    18  infer information about, or otherwise be linked to a particular  consum-
    19  er,  household or device, provided that the processor or controller that
    20  possesses the data:
    21    (a) implements reasonable technical safeguards to ensure that the data
    22  cannot be associated with a consumer, household or device;
    23    (b) publicly commits to process the data only as deidentified data and
    24  not attempt to reidentify  the  data,  except  that  the  controller  or
    25  processor  may  attempt  to  reidentify  the  information solely for the
    26  purpose of determining whether its  deidentification  processes  satisfy
    27  the requirements of this subdivision; and
    28    (c)  contractually obligates any recipients of the data to comply with
    29  all provisions of this article.
    30    10. "Device" means any physical object that is capable  of  connecting
    31  to  the  internet,  directly  or indirectly, or to another device and is
    32  intended for use by a natural person or household or,  if  used  outside
    33  the home, for use by the general public.
    34    11.  "Genetic  information"  means any data, regardless of its format,
    35  that concerns  a  consumer's  genetic  characteristics.  "Genetic  data"
    36  includes  but  is  not limited to (a) raw sequence data that result from
    37  sequencing of a consumer's  complete  extracted  or  a  portion  of  the
    38  extracted  deoxyribonucleic  acid  (DNA)  information;  (b) genotype and
    39  phenotypic information that results  from  analyzing  the  raw  sequence
    40  data;  and  (c) self-reported health information that a consumer submits
    41  to a company regarding the consumer's health conditions and that is used
    42  for  scientific  research  or  product  development  and   analyzed   in
    43  connection with the consumer's raw sequence data.
    44    12.  "Household"  means  a group, however identified, of consumers who
    45  cohabitate with one another at the  same  residential  address  and  may
    46  share use of common devices or services.
    47    13.  "Identified  or  identifiable"  means a natural person who can be
    48  identified, directly or indirectly, such as by reference to an identifi-
    49  er such as a name, an identification number, location data, or an online
    50  or device identifier.
    51    14. "Natural person" means a natural person acting only in an individ-
    52  ual or household context. It does not include a natural person known  to
    53  be acting in a professional or employment context.
    54    15.  "Person"  means a natural person or a legal entity, including but
    55  not limited  to  a  proprietorship,  partnership,  limited  partnership,
    56  corporation,  company, limited liability company or corporation, associ-

        A. 7423--A                          4
 
     1  ation, or other firm or similar body, or  any  unit,  division,  agency,
     2  department, or similar subdivision thereof.
     3    16. "Personal data" means any data that identifies or could reasonably
     4  be  linked,  directly  or indirectly, with a specific natural person, or
     5  household.  Personal data does not include deidentified  data,  informa-
     6  tion  that  is  lawfully  made publicly available from federal, state or
     7  local government records, or information that a controller has a reason-
     8  able  basis to believe is lawfully made available to the general  public
     9  by the  consumer or from widely distributed media.
    10    17. "Precise geolocation data" means information derived from technol-
    11  ogy,  including,  but not limited to, global position system level lati-
    12  tude and longitude coordinates or other mechanisms, that directly  iden-
    13  tifies  the  specific  location  of  an  individual  with  precision and
    14  accuracy within a radius of  one  thousand  seven  hundred  fifty  feet,
    15  except  as  prescribed by regulations. Precise geolocation data does not
    16  include the content of  communications  or  any  data  generated  by  or
    17  connected  to  advance utility metering infrastructure systems or equip-
    18  ment for use by a utility.
    19    18. "Process", "processes" or "processing" means an operation  or  set
    20  of  operations which are performed on data or on sets of data, including
    21  but not limited to the collection, use, access,  sharing,  monetization,
    22  analysis, retention, creation, generation, derivation, recording, organ-
    23  ization,   structuring,  storage,  disclosure,  transmission,  analysis,
    24  disposal, licensing, destruction, deletion, modification, or deidentifi-
    25  cation of data.
    26    19. "Processor" means a person that processes data on  behalf  of  the
    27  controller.
    28    20.  "Profiling"  means  any form of automated processing performed on
    29  personal data to evaluate, analyze, or predict personal aspects  related
    30  to  an  identified  or identifiable natural person's economic situation,
    31  health,  personal   preferences,   interests,   reliability,   behavior,
    32  location,  or movements.   Profiling does not include evaluation, analy-
    33  sis, or prediction based solely upon a natural person's  current  search
    34  query or activities on, or current visit to, the controller's website or
    35  online application.
    36    21. "Protected health information" has the same meaning as in Title 45
    37  C.F.R., established pursuant to the federal Health Insurance Portability
    38  and Accountability Act of 1996.
    39    22.  "Sale", "sell", or "sold" means the disclosure, transfer, convey-
    40  ance, sharing, licensing,  making  available,  processing,  granting  of
    41  permission  or  authorization  to process, or other exchange of personal
    42  data, or providing access to personal data for monetary or  other  valu-
    43  able  consideration  by the controller to a third party. "Sale" does not
    44  include the following:
    45    (a) the disclosure of data to a processor who processes  the  data  on
    46  behalf  of  the  controller  and  which is contractually prohibited from
    47  using it for any purpose other than as instructed by the controller;
    48    (b) the disclosure or transfer of data as an asset that is part  of  a
    49  merger,  acquisition,  bankruptcy, or other transaction in which another
    50  entity assumes control or ownership of all or a majority of the control-
    51  ler's assets; or
    52    (c) the disclosure of personal data to a  third  party  necessary  for
    53  purposes of providing a product, service, or interaction with such third
    54  party, when the consumer directs the controller to disclose the personal
    55  data  or  intentionally  uses  the  controller  to interact with a third
    56  party; or

        A. 7423--A                          5
 
     1    (d) the disclosure or transfer of personal data to an affiliate of the
     2  controller under the same branding:
     3    23. "Sensitive data" means personal data that reveals:
     4    (a)  racial  or  ethnic  origin, religious beliefs, mental or physical
     5  health condition or diagnosis, sex life, sexual orientation, or citizen-
     6  ship or immigration status;
     7    (b) genetic or biometric information for the purpose of uniquely iden-
     8  tifying a natural person;
     9    (c) precise geolocation data; or
    10    (d) social security, financial account, passport or  driver's  license
    11  numbers.
    12    24.  "Targeted advertising" means advertising based upon profiling. It
    13  does not include recommendations by a controller to a consumer with whom
    14  the controller has  an  existing  relationship  that  are  made  on  the
    15  controller's  websites  or online applications and are based solely upon
    16  personal data that the controller has collected  from  the  consumer  on
    17  such  websites  or  online  applications regarding content, products, or
    18  services provided by the controller.
    19    25. "Third party" means, with respect to a particular  interaction  or
    20  occurrence,  a  person, public authority, agency, or body other than the
    21  consumer, the controller, or processor of the controller.  A third party
    22  may also be a controller if the  third  party,  alone  or  jointly  with
    23  others,  determines the purposes and means of the processing of personal
    24  data.
    25    26. "Verified request" means a request by a consumer or their agent to
    26  exercise a right authorized by this article, the authenticity  of  which
    27  has  been ascertained by the controller in accordance with paragraph (c)
    28  of subdivision eight of section eleven hundred two of this article.
    29    § 1101. Jurisdictional scope. 1. This article applies to legal persons
    30  that conduct business in New York or produce products or  services  that
    31  are  targeted  to residents of New York, and that satisfy one or more of
    32  the following thresholds:
    33    (a) have annual gross revenue of twenty-five million dollars or more;
    34    (b) controls or processes personal data of fifty thousand consumers or
    35  more; or
    36    (c) derives over fifty percent of  gross  revenue  from  the  sale  of
    37  personal data.
    38    2. This article does not apply to:
    39    (a) personal data processed by state and local governments, and munic-
    40  ipal  corporations, for processes other than sale (filing and processing
    41  fees are not sale);
    42    (b) a national securities association registered pursuant  to  section
    43  15A  of  the Securities Exchange Act of 1934, as amended, or regulations
    44  adopted thereunder or a registered  futures  association  so  designated
    45  pursuant to section 17 of the Commodity Exchange Act, as amended, or any
    46  regulations adopted thereunder;
    47    (c)  any  nonprofit  entity identified in section four hundred five of
    48  the financial services law to the  extent  such  organization  collects,
    49  processes,  uses,  or  shares  data  solely  in relation to identifying,
    50  investigating, or assisting (i) law enforcement agencies  in  connection
    51  with  suspected  insurance-related  criminal or fraudulent acts; or (ii)
    52  first responders in connection with catastrophic events;
    53    (d) information that meets the following criteria:
    54    (i) personal data collected, processed, sold, or disclosed pursuant to
    55  and  in  compliance  with  the  federal  Gramm-Leach-Bliley  act   (P.L.
    56  106-102), and implementing regulations;

        A. 7423--A                          6
 
     1    (ii)  personal  data collected, processed, sold, or disclosed pursuant
     2  to the federal Driver's Privacy Protection Act of 1994 (18  U.S.C.  Sec.
     3  2721  et seq.), if the collection, processing, sale, or disclosure is in
     4  compliance with that law;
     5    (iii) personal data regulated by the federal Family Educational Rights
     6  and Privacy Act, U.S.C. Sec. 1232g and its implementing regulations;
     7    (iv)  personal  data collected, processed, sold, or disclosed pursuant
     8  to the federal Farm Credit Act of 1971 (as amended  in  12  U.S.C.  Sec.
     9  2001-2279cc)  and  its  implementing  regulations (12 C.F.R. Part 600 et
    10  seq.) if the collection, processing, sale, or disclosure is  in  compli-
    11  ance with that law;
    12    (v) personal data regulated by section two-d of the education law;
    13    (vi)  data  processed or maintained (A) in the course of an individual
    14  applying to, employed by, or acting as an agent or independent  contrac-
    15  tor  of  a  controller, processor or third party, to the extent that the
    16  data is collected and used within the context of that role, (B)  as  the
    17  emergency  contact  information of an individual under this section used
    18  for emergency contact purposes, or (C) that is necessary  to  retain  to
    19  administer  benefits  for  another  individual relating to an individual
    20  under clause (A) of this subparagraph  and  used  for  the  purposes  of
    21  administering such benefits;
    22    (vii)  protected  health  information  that is lawfully collected by a
    23  covered entity or business associate and is  governed  by  the  privacy,
    24  security,  and  breach  notification  rules  issued by the United States
    25  Department of Health and Human Services, Parts 160 and 164 of  Title  45
    26  of  the  Code of Federal Regulations, established pursuant to the Health
    27  Insurance  Portability  and  Accountability  Act  of  1996  (Public  Law
    28  104-191)  ("HIPAA")  and  the Health Information Technology for Economic
    29  and Clinical Health Act (Public Law 111-5);
    30    (viii) patient identifying information for purposes of 42 C.F.R.  Part
    31  2,  established pursuant to 42 U.S.C. Sec. 290dd-2, as long as such data
    32  is not sold in violation of HIPAA or any state or federal law;
    33    (ix) information and documents lawfully created for  purposes  of  the
    34  federal  Health  Care Quality Improvement Act of 1986, and related regu-
    35  lations;
    36    (x) patient safety work product created for purposes of 42 C.F.R. Part
    37  3, established pursuant to 42 U.S.C. Sec. 299b-21 through 299b-26;
    38    (xi) information that is treated in the  same  manner  as  information
    39  exempt  under subparagraph (vii) of this paragraph that is maintained by
    40  a covered entity or business associate as defined by HIPAA or a  program
    41  or  a qualified service organization as defined by 42 U.S.C.  § 290dd-2,
    42  as long as such data is not sold in violation of HIPAA or any  state  or
    43  federal law;
    44    (xii)  deidentified health information that meets all of the following
    45  conditions:
    46    (A) it is deidentified in accordance with the requirements for deiden-
    47  tification set forth in Section 164.514 of Part 164 of Title 45  of  the
    48  Code of Federal Regulations;
    49    (B)  it  is  derived  from  protected health information, individually
    50  identifiable health information,  or  identifiable  private  information
    51  compliant  with the Federal Policy for the Protection of Human Subjects,
    52  also known as the Common Rule; and
    53    (C) a covered entity or business associate does not attempt to reiden-
    54  tify the information nor do they  actually  reidentify  the  information
    55  except as otherwise allowed under state or federal law;

        A. 7423--A                          7
 
     1    (xiii)  information maintained by a covered entity or business associ-
     2  ate governed by the privacy, security,  and  breach  notification  rules
     3  issued  by  the  United  States Department of Health and Human Services,
     4  Parts 160 and 164 of Title 45 of the Code of Federal Regulations, estab-
     5  lished  pursuant  to the Health Insurance Portability and Accountability
     6  Act of 1996 (Public Law 104-191), to the extent the  covered  entity  or
     7  business  associate  maintains  the  information  in  the same manner as
     8  protected health information as described in subparagraph (vii) of  this
     9  paragraph;
    10    (xiv)  information  maintained  by  a  financial  institution  that is
    11  subject to the Gramm-Leach-Bliley  Act  (Public  Law  106-103),  to  the
    12  extent  the  financial institution maintains the information in the same
    13  manner as personal data as described in subparagraph (i) of  this  para-
    14  graph;
    15    (xv)  data  collected  as part of human subjects research, including a
    16  clinical trial, conducted in accordance with the Federal Policy for  the
    17  Protection of Human Subjects, also known as the Common Rule, pursuant to
    18  good  clinical  practice  guidelines issued by the International Council
    19  for Harmonisation or pursuant to human subject  protection  requirements
    20  of the United States Food and Drug Administration;
    21    (xvi)  personal  data  processed only for one or more of the following
    22  purposes:
    23    (A) product  registration  and  tracking  consistent  with  applicable
    24  United States Food and Drug Administration regulations and guidance;
    25    (B)  public  health  activities  and  purposes as described in Section
    26  164.512 of Title 45 of the Code of Federal Regulations; and/or
    27    (C) activities related to quality, safety, or effectiveness  regulated
    28  by the United States Food and Drug Administration; or
    29    (xvii)  personal  data  collected, processed, or disclosed pursuant to
    30  and in compliance with any opt-out  program  authorized  by  the  public
    31  service commission or any other opt-out community distributed generation
    32  programs authorized in law; or
    33    (e) (i) an activity involving the collection, maintenance, disclosure,
    34  sale, communication, or use of any personal data bearing on a consumer's
    35  credit  worthiness, credit standing, credit capacity, character, general
    36  reputation, personal characteristics, or mode of living  by  a  consumer
    37  reporting  agency,  as  defined  in  Title 15 U.S.C. Sec. 1681a(f), by a
    38  furnisher of information, as set forth in Title 15 U.S.C. Sec.  1681s-2,
    39  who provides information for use in a consumer  report,  as  defined  in
    40  Title  15  U.S.C.  Sec. 1861a(d), and by a user of a consumer report, as
    41  set forth in Title 15 U.S.C. Sec. 1681b.; and
    42    (ii) this paragraph shall apply only to the extent that such  activity
    43  involving  the collection, maintenance, disclosure, sale, communication,
    44  or use of such data by that agency, furnisher, or  user  is  subject  to
    45  regulation  under  the  Fair  Credit Reporting Act, Title 15 U.S.C. Sec.
    46  1681 et seq., and the data is not collected, maintained, used,  communi-
    47  cated,  disclosed,  or  sold  except  as  authorized  by the Fair Credit
    48  Reporting Act.
    49    § 1102. Consumer rights. 1. Right to notice. (a) Notice. Each control-
    50  ler that processes a consumer's personal data  must  make  publicly  and
    51  consistently  available, in a conspicuous and readily accessible manner,
    52  a notice containing the following:
    53    (i) a description of the  consumer's  rights  under  subdivisions  two
    54  through  seven  of  this  section  and how a consumer may exercise those
    55  rights, including how to withdraw consent;

        A. 7423--A                          8
 
     1    (ii) the categories of personal data processed by the  controller  and
     2  by  any  processor who processes personal data on behalf of the control-
     3  ler;
     4    (iii) the sources from which personal data is collected;
     5    (iv) the purposes for processing personal data;
     6    (v)  the categories of third parties to whom the controller disclosed,
     7  shared, transferred or sold personal data  and,  for  each  category  of
     8  third   party,  (A)  the  categories  of  personal  data  being  shared,
     9  disclosed, transferred, or sold to the third party, (B) the purposes for
    10  which personal data is being shared, disclosed, transferred, or sold  to
    11  the  third party, (C) any applicable retention periods for each category
    12  of personal data processed by the third parties or  processed  on  their
    13  behalf,  or  if that is not possible, the criteria used to determine the
    14  period, and (D) whether the third parties may use the personal data  for
    15  targeted advertising; and
    16    (vi)  the  controller's retention period for each category of personal
    17  data that they process or is processed on their behalf, or  if  that  is
    18  not possible, the criteria used to determine that period.
    19    (b) Notice requirements.
    20    (i)  The  notice  must  be  written in easy-to-understand language and
    21  format at an eighth grade reading level or below and in at least  twelve
    22  point font.
    23    (ii)  The categories of personal data processed and purposes for which
    24  each category of personal data is processed must be described in a clear
    25  and conspicuous manner, at a level specific enough to enable a  consumer
    26  to  exercise  meaningful  control  over  their  personal data but not so
    27  specific as to render the notice unhelpful to a consumer.
    28    (iii) The notice must be dated with its effective date and updated  at
    29  least  annually.    When  the  information required to be disclosed to a
    30  consumer pursuant to paragraph (a) of this subdivision has  not  changed
    31  since  the  immediately  previous  notice  (whether  initial, annual, or
    32  revised) provided to the consumer, a controller may  issue  a  statement
    33  that no changes have been made.
    34    (iv)  The  notice,  as well as each version of the notice in effect in
    35  the preceding six years,   must be easily accessible  to  consumers  and
    36  capable of being viewed by consumers at any time.
    37    2.  Right to opt out.  (a) A controller must allow consumers the right
    38  to opt out, at any time, of  processing  personal  data  concerning  the
    39  consumer for the purposes of:
    40    (i) targeted advertising;
    41    (ii) the sale of personal data; and
    42    (iii)  profiling  in  furtherance  of  decisions that produce legal or
    43  similarly significant effects concerning a consumer.
    44    (b) A controller must provide clear  and  conspicuous  means  for  the
    45  consumer  or their agent to opt out of processing and clearly present as
    46  the most conspicuous choice an option to simultaneously opt out  of  all
    47  processing purposes set forth in paragraph (a) of this subdivision.
    48    (c)  A  controller must not process personal data for any purpose from
    49  which the consumer has opted out.
    50    (d) If a consumer has opted out of the  processing  of  personal  data
    51  pursuant  to  paragraph  (a)  of this subdivision, a controller must not
    52  request that the consumer opt back in to such processing in a  way  that
    53  is  manifestly excessive or unduly burdensome to the consumer, and in no
    54  event shall make such a request to the consumer more than twice  annual-
    55  ly.

        A. 7423--A                          9
 
     1    (e) Controllers must treat user-enabled privacy controls in a browser,
     2  browser   plug-in,  smartphone  application,  operating  system,  device
     3  setting, or other mechanism that communicates or signals the  consumer's
     4  choice  not to opt out of the processing of personal data in furtherance
     5  of  targeted  advertising,  or the sale of their personal data as an opt
     6  out under this article. To the extent that the privacy control conflicts
     7  with a consumer's consent, the controller shall comply with the  privacy
     8  control but may notify the consumer of such conflict and provide to such
     9  consumer the choice to give controller specific consent to such process-
    10  ing.
    11    (f) The attorney general shall publish a list of user-enabled controls
    12  that  contollers  must  recognize  on  its website with enough technical
    13  information to  allow  controllers  and  processors  to  recognize  such
    14  controls.
    15    3.  Sensitive data. (a) A controller must obtain freely given, specif-
    16  ic, informed, and unambiguous opt-in consent from a consumer to:
    17    (i) process the consumer's sensitive data related to that consumer for
    18  any purpose other than  those  in  subdivision  two  of  section  eleven
    19  hundred five of this article; or
    20    (ii)  make  any  changes  to  the  existing  processing  or processing
    21  purpose, including those regarding the method and scope  of  collection,
    22  of  the  consumer's  sensitive  data  that may be less protective of the
    23  consumer's sensitive data than the processing to which the consumer  has
    24  previously given their freely given, specific, informed, and unambiguous
    25  opt-in consent.
    26    (b) Any request for consent to process sensitive data must be provided
    27  to  the  consumer, prior to processing their sensitive data, in a stand-
    28  alone disclosure that is separate and apart from any contract or privacy
    29  policy. The request for consent must:
    30    (i) be written in a twelve point font or greater and include  a  clear
    31  and  conspicuous  description  of  each  category of data and processing
    32  purpose for which consent is sought;
    33    (ii) clearly identify and distinguish between categories of  data  and
    34  processing  purposes that are necessary to provide the services or goods
    35  requested by the consumer and categories of data and processing purposes
    36  that are not necessary to provide the services or goods requested by the
    37  consumer;
    38    (iii) enable a reasonable consumer to easily identify  the  categories
    39  of data and processing purposes for which consent is sought;
    40    (iv)  clearly  present  as  the  most  conspicuous choice an option to
    41  provide only the consent necessary to  provide  the  services  or  goods
    42  requested by the consumer;
    43    (v) clearly present an option to deny consent; and
    44    (vi) where the request seeks consent to sharing, disclosure, transfer,
    45  or  sale  of sensitive data to third parties, identify the categories of
    46  such third parties, the categories of data sold or shared with them, the
    47  processing purposes, the retention period, or if that is  not  possible,
    48  the  criteria  used  to determine the period, and state if such sharing,
    49  disclosure, transfer, or sale enables or involves targeted  advertising.
    50  The  details of the categories of such third parties, and the categories
    51  of data, processing purposes, and the retention period, may be set forth
    52  in a  different  disclosure,  provided  that  the  request  for  consent
    53  contains a conspicuous and directly accessible link to that disclosure.
    54    (c)  Targeted  advertising  and  sale  of  personal  data shall not be
    55  considered processing purposes that are necessary to provide services or
    56  goods requested by a consumer.

        A. 7423--A                         10
 
     1    (d) Once a consumer has provided freely given, specific, informed, and
     2  unambiguous opt-in consent to process their sensitive data for  a  proc-
     3  essing  purpose, a controller may rely on such consent until it is with-
     4  drawn.
     5    (e)  A  controller must provide a mechanism for a consumer to withdraw
     6  previously given consent at any time. Such mechanism shall  make  it  as
     7  easy for a consumer to withdraw their consent as it is for such consumer
     8  to provide consent.
     9    (f)  A  controller  must not infer that a consumer has provided freely
    10  given, specific, informed,  and  unambiguous  opt-in  consent  from  the
    11  consumer's  inaction  or  the  consumer's  continued use of a service or
    12  product provided by the controller.
    13    (g) Controllers must not request  consent  from  a  consumer  who  has
    14  previously  withheld  or denied consent to process sensitive data, until
    15  at least twelve months after a denial, unless consent  is  necessary  to
    16  provide the services or goods requested by the consumer.
    17    (h) Controllers must treat user-enabled privacy controllers in a brow-
    18  ser,  browser  plug-in, smartphone application, operating system, device
    19  setting, or other mechanism that communicates or signals the  consumer's
    20  choices  to opt out of the processing of personal data in furtherance of
    21  targeted advertising, the sale of their personal data, or  profiling  in
    22  furtherance  of  decisions  that  produce legal or similarly significant
    23  effects concerning the consumer as a denial of consent to process sensi-
    24  tive data under this article. To the extent  that  the  privacy  control
    25  conflicts  with  a  consumer's  consent,  the  privacy  control settings
    26  govern, unless the consumer provides freely given,  specific,  informed,
    27  and unambiguous opt-in consent to override the privacy control, however,
    28  the  controller may notify such consumer of such conflict and provide to
    29  the  consumer the choice to give  controller-specific  consent  to  such
    30  processing.
    31    (i)  (i)  A  controller  must  not discriminate against a consumer for
    32  exercising their rights under this article  or  withholding  or  denying
    33  consent, including, but not limited to, by:
    34    (A)  denying  services  or  goods to the consumer, unless the consumer
    35  does not consent to processing necessary  to  provide  the  services  or
    36  goods requested by the consumer;
    37    (B) charging different prices for goods or services, including through
    38  the use of discounts or other benefits, imposing penalties, or providing
    39  a different level or quality of services or goods to the consumer; or
    40    (C)  suggesting  that  the  consumer will receive a different price or
    41  rate for goods or services or a different level or quality  of  services
    42  or goods.
    43    (ii)  A  controller  shall not be prohibited from offering a different
    44  price, rate, level, quality, or selection of  goods  or  services  to  a
    45  consumer, including offering goods or services for no fee, if the offer-
    46  ing  is  in connection with a consumer's voluntary participation in bona
    47  fide  loyalty,  rewards,  premium  features,  discounts,  or  club  card
    48  program.  If  a consumer exercises their right pursuant to paragraph (a)
    49  of subdivision two of this section, a controller may not  sell  personal
    50  data  to  a third party controller as part of such a program unless: (A)
    51  the sale is reasonably necessary to enable the third party to provide  a
    52  benefit to which the consumer is entitled; (B) the sale of personal data
    53  to  third  parties is clearly disclosed in the terms of the program; and
    54  (C) the third party uses the personal data only for purposes of  facili-
    55  tating  such  a  benefit  to which the consumer is entitled and does not

        A. 7423--A                         11
 
     1  retain or otherwise use or disclose the  personal  data  for  any  other
     2  purpose.
     3    (j)  A  controller  may,  with  the consumer's freely given, specific,
     4  informed, and unambiguous opt-in consent given pursuant to this section,
     5  operate a program in which information, products, or  services  sold  to
     6  the  consumer  are  discounted  based  solely  on  such consumer's prior
     7  purchases from the controller, provided that any sensitive data used  to
     8  operate  such  program  is processed solely for the purpose of operating
     9  such program.
    10    (k) In the event of a merger, acquisition, bankruptcy, or other trans-
    11  action in which another entity assumes control or ownership  of  all  or
    12  majority  of  the  controller's  assets,  any  consent  provided  to the
    13  controller by a consumer relating to sensitive data prior to such trans-
    14  action other than consent to processing necessary to provide services or
    15  goods requested by the consumer, shall be deemed withdrawn.
    16    4. Right to access.  Upon  the  verified  request  of  a  consumer,  a
    17  controller shall:
    18    (a)  confirm  whether or not the controller is processing or has proc-
    19  essed personal data of that consumer, and provide access to  a  copy  of
    20  any  such  personal  data  in  a  manner  understandable to a reasonable
    21  consumer when requested; and
    22    (b) provide the category of each processor or third party to whom  the
    23  controller  disclosed, transferred, or sold the consumer's personal data
    24  and, for each category of processor or third party, (i)  the  categories
    25  of  the consumer's personal data disclosed, transferred, or sold to each
    26  processor or third party and (ii) the purposes for which  each  category
    27  of  the  consumer's personal data was disclosed, transferred, or sold to
    28  each processor or third party.
    29    5. Right to portable data.  Upon a verified request, and to the extent
    30  technically feasible, the controller must: (a) provide to the consumer a
    31  copy of all of, or a portion of, as designated in  a  verified  request,
    32  the  consumer's  personal  data  in  a  structured,  commonly  used  and
    33  machine-readable format and (b) transmit the data to another  person  of
    34  the consumer's or their agent's designation without hindrance.
    35    6.  Right  to  correct. (a) Upon the verified request of a consumer or
    36  their agent, a controller must conduct  a  reasonable  investigation  to
    37  determine  whether  personal  data, the accuracy of which is disputed by
    38  the consumer, is inaccurate, with such  investigation  to  be  concluded
    39  within  the  time period set forth in paragraph (a) of subdivision eight
    40  of this section.
    41    (b) Notwithstanding paragraph (a) of this  subdivision,  a  controller
    42  may  terminate  an investigation initiated pursuant to such paragraph if
    43  the controller reasonably and in good faith determines that the  dispute
    44  by  the consumer is wholly without merit, including by reason of a fail-
    45  ure by a consumer to provide sufficient information to  investigate  the
    46  disputed personal data. Upon making any determination in accordance with
    47  this  paragraph  that  a  dispute  is wholly without merit, a controller
    48  must, within the time period set forth in paragraph (a)  of  subdivision
    49  eight  of  this  section,  provide  the affected consumer a statement in
    50  writing that includes, at a minimum, the specific reasons for the deter-
    51  mination, and identification of any information required to  investigate
    52  the  disputed  personal  data,  which may consist of a standardized form
    53  describing the general nature of such information.
    54    (c) If, after any investigation under paragraph (a) of  this  subdivi-
    55  sion  of  any  personal  data  disputed  by  a  consumer, an item of the

        A. 7423--A                         12
 
     1  personal data is found to be inaccurate  or  incomplete,  or  cannot  be
     2  verified, the controller must:
     3    (i)  correct the inaccurate or incomplete personal data of the consum-
     4  er; and
     5    (ii) unless it proves impossible or involves disproportionate  effort,
     6  communicate  such  request  to  each  third party to whom the controller
     7  disclosed, transferred, or  sold  the  personal  data  within  one  year
     8  preceding  the consumer's request, and to require those third parties to
     9  do the same for any further third parties they  disclosed,  transferred,
    10  or sold the personal data to.
    11    (d)  If  the  investigation does not resolve the dispute, the consumer
    12  may file with the controller a brief statement setting forth the  nature
    13  of the dispute. Whenever a statement of a dispute is filed, unless there
    14  exists  reasonable  grounds  to believe that it is wholly without merit,
    15  the controller must note that it is disputed by the consumer and include
    16  either the consumer's statement or a clear and accurate codification  or
    17  summary   thereof  with  the  disputed  personal  data  whenever  it  is
    18  disclosed, transferred, or sold to any processor or third party.
    19    7. Right to delete. (a) Upon the verified request  of  a  consumer,  a
    20  controller must:
    21    (i)  within  forty-five  days  after  receiving  the verified request,
    22  delete any or all of the consumer's personal data, as  directed  by  the
    23  consumer or their agent,  that the controller possesses or controls; and
    24    (ii)  unless  it proves impossible or involves disproportionate effort
    25  that is documented  in  writing  by  the  controller,  communicate  such
    26  request  to  each  third  party to whom the controller disclosed, trans-
    27  ferred or sold the personal data within one year preceding  the  consum-
    28  er's  request  and to require those third parties to do the same for any
    29  further third parties they disclosed, transferred, or sold the  personal
    30  data to.
    31    (b) For personal data that is not possessed by the controller but by a
    32  processor  of  the controller, the controller may choose to (i) communi-
    33  cate the consumer's request for  deletion  to  the  processor,  or  (ii)
    34  request  that  the  processor return to the controller the personal data
    35  that is the subject of the consumer's request and delete  such  personal
    36  data upon receipt of the request.
    37    (c) A consumer's deletion of their online account must be treated as a
    38  request to the controller to delete all of that consumer's personal data
    39  directly related to that account.
    40    (d)  A  controller  must  maintain  reasonable  procedures designed to
    41  prevent the reappearance in its systems, and in any data  it  discloses,
    42  transfers,  or  sells  to  any  third  party,  the personal data that is
    43  deleted pursuant to this subdivision.
    44    (e) A controller is not required to comply with a  consumer's  request
    45  to delete personal data if:
    46    (i)  complying  with  the  request  would  prevent the controller from
    47  performing accounting  functions,  processing  refunds,  effectuating  a
    48  product  recall pursuant to federal or state law, or fulfilling warranty
    49  claims, provided that the personal data  that  is  the  subject  of  the
    50  request is not processed for any purpose other than such specific activ-
    51  ities; or
    52    (ii)  it  is  necessary  for the controller to maintain the consumer's
    53  personal data to engage in public or peer-reviewed  scientific,  histor-
    54  ical, or statistical research in the public interest that adheres to all
    55  other applicable ethics and privacy laws, when the controller's deletion
    56  of  the  information  is likely to render impossible or seriously impair

        A. 7423--A                         13
 
     1  the achievement of such research, provided that the consumer  has  given
     2  informed  consent and the personal data is not processed for any purpose
     3  other than such research.
     4    (f)  Where a consumer's request for deletion is denied, the controller
     5  shall provide the consumer with a written justification for such denial.
     6    8.  Responding to requests. (a) A controller must  take  action  under
     7  subdivisions  four through seven of this section and inform the consumer
     8  of any actions taken without undue delay and in any event within  forty-
     9  five days of receipt of the request. That period may be extended once by
    10  forty-five  additional  days  where  reasonably  necessary,  taking into
    11  account the complexity and number of the requests. The  controller  must
    12  inform  the  consumer  of  any  such extension within forty-five days of
    13  receipt of the request, together with the reasons for the delay. When  a
    14  controller  denies any such request, it must within this period disclose
    15  to the consumer a statement in writing of the specific reasons  for  the
    16  denial and instructions for how to appeal the decision.
    17    (b) A controller shall permit the exercise of rights and carry out its
    18  obligations set forth in subdivisions four through seven of this section
    19  free  of charge, at least twice annually to the consumer. Where requests
    20  from a consumer are manifestly unfounded  or  excessive,  in  particular
    21  because  of  their  repetitive  character, the controller may either (i)
    22  charge a reasonable fee to cover the administrative costs  of  complying
    23  with  the  request  or  (ii) refuse to act on the request and notify the
    24  consumer of the reason for refusing the request.  The  controller  bears
    25  the  burden of demonstrating the manifestly unfounded or excessive char-
    26  acter of the request.
    27    (c) (i)  A  controller  shall  promptly  attempt,  using  commercially
    28  reasonable  efforts,  to verify that all requests to exercise any rights
    29  set forth in any section of this article requiring  a  verified  request
    30  were made by the consumer who is the subject of the data, or by a person
    31  lawfully  exercising  the  right  on  behalf  of the consumer who is the
    32  subject of the data. Commercially reasonable efforts shall be determined
    33  based on the totality of the circumstances, including the nature of  the
    34  data implicated by the request.
    35    (ii)  A  controller  may  require  the  consumer to provide additional
    36  information only if the request cannot reasonably  be  verified  without
    37  the  provision  of  such  additional  information. A controller must not
    38  transfer or process any such additional information provided pursuant to
    39  this section for any other purpose and must delete any  such  additional
    40  information  without undue delay and in any event within forty-five days
    41  after the controller has notified the consumer that it has taken  action
    42  on  a  request  under subdivisions four through seven of this section as
    43  described in paragraph (a) of this subdivision.
    44    (iii) If a controller discloses this  additional  information  to  any
    45  processor  or  third  party  for  the  purpose  of  verifying a consumer
    46  request, it must notify the receiving processor or third  party  at  the
    47  time  of  such  disclosure,  or as close in time to the disclosure as is
    48  reasonably practicable,  that  such  information  was  provided  by  the
    49  consumer  for  the  sole purpose of verification and cannot be processed
    50  for any purpose other than verification.
    51    9. Implementation of rights. Controllers must provide easily  accessi-
    52  ble  and  convenient  means for consumers to exercise their rights under
    53  this article.
    54    10. Non-waiver of rights. Any provision of a contract or agreement  of
    55  any  kind that purports to waive or limit in any way a consumer's rights

        A. 7423--A                         14
 
     1  under this article is contrary to public policy and is  void  and  unen-
     2  forceable.
     3    §  1103.   Controller, processor, and third party responsibilities. 1.
     4  Controller responsibilities. (a)  Data  protection  assessments.  (i)  A
     5  controller  shall  regularly  conduct  and  document  a  data protection
     6  assessment for each  of  the  controller's  processing  activities  that
     7  presents  a  heightened  risk of harm to a consumer. For the purposes of
     8  this section, processing that presents a heightened risk of  harm  to  a
     9  consumer  includes: (A) the processing of personal data for the purposes
    10  of targeting advertising, (B) the sale of personal data, (C)  the  proc-
    11  essing  of  personal  data  for  the  purposes  of profiling, where such
    12  profiling presents a reasonably foreseeable risk of (I) unfair or decep-
    13  tive treatment of, or  unlawful  disparate  impact  on  consumers,  (II)
    14  financial,  physical  or reputational injury to consumers, (III) a phys-
    15  ical or other intrusion upon the solitude or seclusion, or  the  private
    16  affairs or concerns of consumers where such intrusion would be offensive
    17  to  a  reasonable person, or (IV) other substantial injury to consumers;
    18  and (D) the processing of sensitive data.
    19    (ii) Data protection assessments conducted  pursuant  to  subparagraph
    20  (i)  of  this  paragraph  shall identify and weigh the benefits that may
    21  flow, directly and indirectly, from the processing  to  the  controller,
    22  the  consumer,  other  stakeholders and the public against the potential
    23  risks to the rights of the consumer associated with such processing,  as
    24  mitigated by safeguards that can be employed by the controller to reduce
    25  such  risks.  The  controller shall factor into any such data protection
    26  assessment that use of deidentified data and the reasonable expectations
    27  of consumers, as well as the context of the processing and the relation-
    28  ship between the controller and the consumer whose personal data will be
    29  processed.
    30    (iii) The attorney general may require that a controller disclose  any
    31  data   protection  assessment  that  is  relevant  to  an  investigation
    32  conducted by the attorney general, and the  controller  shall  make  the
    33  data protection assessment available to the attorney general. The attor-
    34  ney  general  may  evaluate  the  data  protection  assessment to assess
    35  compliance with the provisions of this article. Data protection  assess-
    36  ments  shall  be  confidential and shall be exempt from disclosure under
    37  the freedom of information law. To the extent any information  contained
    38  in  a  data  protection  assessment  disclosure  to the attorney general
    39  includes information subject to attorney-client privilege or work  prod-
    40  uct  protection,  such  disclosure shall not constitute a waiver of such
    41  privilege or protection.
    42    (iv) A single data protection assessment may address a comparable  set
    43  of processing operations that include similar activities.
    44    (v)  If  a  controller  conducts  a data protection assessment for the
    45  purpose of complying with another applicable law or regulation, the data
    46  protection assessment shall be deemed to satisfy the requirements estab-
    47  lished in this section if such data protection assessment is  reasonably
    48  similar in scope and effect to the data protection assessment that would
    49  otherwise be conducted pursuant to this section.
    50    (vi) Data protection assessment requirements shall apply to processing
    51  activities  created  or generated after the effective date of this arti-
    52  cle.
    53    (b) Controllers must not engage in unfair, deceptive, or abusive  acts
    54  or  practices with respect to obtaining consumer consent, the processing
    55  of personal data, and a consumer's exercise of  any  rights  under  this
    56  article, including without limitation:

        A. 7423--A                         15
 
     1    (i)  designing a user interface with the purpose or substantial effect
     2  of deceiving consumers, obscuring consumers' rights under this  article,
     3  or subverting or impairing user autonomy, decision-making, or choice; or
     4    (ii)  obtaining consent in a manner designed to overpower a consumer's
     5  resistance; for example, by making excessive requests for consent.
     6    (c) Controllers must develop, implement, and maintain reasonable safe-
     7  guards to protect the security, confidentiality  and  integrity  of  the
     8  personal data of consumers including adopting reasonable administrative,
     9  technical  and  physical safeguards appropriate to the volume and nature
    10  of the personal data at issue.
    11    (d) (i) A controller shall limit the use and retention of a consumer's
    12  personal data to what is (A) necessary to provide the services or  goods
    13  requested by the consumer, (B) necessary for the internal business oper-
    14  ations of the controller and consistent with the disclosures made to the
    15  consumer  pursuant to section eleven hundred two of this article, or (C)
    16  necessary to comply with the legal obligations of the controller.
    17    (ii) At least annually, a controller shall review its retention  prac-
    18  tices  for  the  purpose  of ensuring that it is maintaining the minimum
    19  amount of personal data as is necessary for the operation of  its  busi-
    20  ness. A controller must securely dispose of all personal data that is no
    21  longer  (A)  necessary to provide the services or goods requested by the
    22  consumer, (B) necessary for the  internal  business  operations  of  the
    23  controller  and  consistent  with  the  disclosures made to the consumer
    24  pursuant to section eleven hundred two of this article, or (C) necessary
    25  to comply with the legal obligations of the controller.
    26    (e) Non-discrimination. (i) (A) A  controller  must  not  discriminate
    27  against  a  consumer for exercising rights under this article, including
    28  but not limited to, by:
    29    (I) denying services or goods to consumers;
    30    (II) charging  different  prices  for  services  or  goods,  including
    31  through  the  use of discounts or other benefits; imposing penalties; or
    32  providing a different level or quality  of  services  or  goods  to  the
    33  consumer; or
    34    (III)  suggesting  that the consumer will receive a different price or
    35  rate for services or goods or a different level or quality  of  services
    36  or goods.
    37    (B)  A  controller  shall  not be prohibited from offering a different
    38  price, rate, level, quality, or selection of  goods  or  services  to  a
    39  consumer, including offering goods or services for no fee, if the offer-
    40  ing  is  in connection with a consumer's voluntary participation in bona
    41  fide  loyalty,  rewards,  premium  features,  discounts,  or  club  card
    42  program.  If  a consumer exercises their right pursuant to paragraph (a)
    43  of subdivision two of section eleven hundred  two  of  this  article,  a
    44  controller  may  not  sell  personal data to a third party controller as
    45  part of such a program unless: (I) the sale is reasonably  necessary  to
    46  enable  the  third  party  to provide a benefit to which the consumer is
    47  entitled; (II) the sale of personal data to  third  parties  is  clearly
    48  disclosed  in  the  terms of the program; and (III) the third party uses
    49  the personal data only for purposes of facilitating such  a  benefit  to
    50  which  the  consumer is entitled and does not retain or otherwise use or
    51  disclose the personal data for any other purpose.
    52    (ii) This paragraph does not apply  to  a  controller's  conduct  with
    53  respect  to  opt-in  consent, in which case paragraph (j) of subdivision
    54  three of section eleven hundred two of this article governs.
    55    (f) Agreements with processors.  (i)  Before  making  any  disclosure,
    56  transfer, or sale of personal data to any processor, the controller must

        A. 7423--A                         16
 
     1  enter into a written, signed contract with that processor. Such contract
     2  must  be binding and clearly set forth instructions for processing data,
     3  the nature and purpose of processing, the type of data subject to  proc-
     4  essing,  the  duration  of processing, and the rights and obligations of
     5  both parties. The contract  must  also  include  requirements  that  the
     6  processor must:
     7    (A)  ensure  that each person processing personal data is subject to a
     8  duty of confidentiality with respect to the data;
     9    (B) protect the data in a manner consistent with the  requirements  of
    10  this  article  and  at  least  equal to the security requirements of the
    11  controller set forth in their publicly available policies,  notices,  or
    12  similar statements;
    13    (C)  process  the data only when and to the extent necessary to comply
    14  with its legal obligations to the controller unless otherwise explicitly
    15  authorized by the controller;
    16    (D) not combine the personal data which the processor receives from or
    17  on behalf of the controller  with  personal  data  which  the  processor
    18  receives  from  or  on behalf of another person or collects from its own
    19  interaction with consumers;
    20    (E) comply with any exercises of a  consumer's  rights  under  section
    21  eleven  hundred  two of this article upon the request of the controller,
    22  subject to the limitations set forth in section eleven hundred  five  of
    23  this article;
    24    (F)  at the controller's direction, delete or return all personal data
    25  to the controller as requested at the end of the provision of  services,
    26  unless retention of the personal data is required by law;
    27    (G)  upon  the reasonable request of the controller, make available to
    28  the controller all data in its possession necessary to  demonstrate  the
    29  processor's compliance with the obligations in this article;
    30    (H)  allow, and cooperate with, reasonable assessments by the control-
    31  ler or the controller's designated assessor; alternatively, the process-
    32  or may arrange for a qualified and independent assessor  to  conduct  an
    33  assessment  of the processor's policies and technical and organizational
    34  measures in support of the  obligations  under  this  article  using  an
    35  appropriate  and  accepted  control standard or framework and assessment
    36  procedure for such assessments. The processor shall provide a report  of
    37  such assessment to the controller upon request;
    38    (I) a reasonable time in advance before disclosing or transferring the
    39  data to any further processors, notify the controller of such a proposed
    40  disclosure  or  transfer  and  provide  the controller an opportunity to
    41  approve or reject the proposal; and
    42    (J) engage  any  further  processor  pursuant  to  a  written,  signed
    43  contract  that  includes  the  contractual requirements provided in this
    44  paragraph, containing at minimum the same obligations that the processor
    45  has entered into with regard to the data.
    46    (ii) A controller must not agree  to  indemnify,  defend,  or  hold  a
    47  processor  harmless,  or  agree  to  a  provision that has the effect of
    48  indemnifying, defending, or holding the processor harmless, from  claims
    49  or  liability  arising  from  the  processor's  breach  of  the contract
    50  required by clause (A) of  subparagraph  (i)  of  this  paragraph  or  a
    51  violation  of  this article. Any provision of an agreement that violates
    52  this subparagraph is contrary to public policy and  is  void  and  unen-
    53  forceable.
    54    (iii)  Nothing  in this paragraph relieves a controller or a processor
    55  from the liabilities imposed on it by virtue of its role in the process-
    56  ing relationship as defined by this article.

        A. 7423--A                         17
 
     1    (iv) Determining whether a person is acting as a controller or proces-
     2  sor with respect to a specific processing of data is a fact-based deter-
     3  mination that depends upon the context in which personal data is  to  be
     4  processed.  A  processor  that  continues  to  adhere  to a controller's
     5  instructions  with  respect  to  a  specific processing of personal data
     6  remains a processor.
     7    (g) Third parties. (i) A controller must not share,  disclose,  trans-
     8  fer,  or  sell  personal  data,  or facilitate or enable the processing,
     9  disclosure, transfer, or sale to a third  party  of  personal  data  for
    10  which a consumer has exercised their opt-out rights pursuant to subdivi-
    11  sion  two  of  section  eleven hundred two of this article, or for which
    12  consent of the consumer pursuant to subdivision three of section  eleven
    13  hundred  two  of this article, has not been obtained or is not currently
    14  in effect. Any request for consent to share, disclose, transfer, or sell
    15  personal data, or to facilitate or enable  the  processing,  disclosure,
    16  transfer,  or sale of personal data to a third party of personal data to
    17  a third party must clearly include the category of the third  party  and
    18  the  processing  purposes for which the third party may use the personal
    19  data.
    20    (ii) A controller must not share, disclose, transfer, or sell personal
    21  data, or facilitate or enable the processing, disclosure,  transfer,  or
    22  sale  to  a third party of personal data if it can reasonably expect the
    23  personal data of a consumer to be used for purposes for which a consumer
    24  has exercised their  opt-out  rights  pursuant  to  subdivision  two  of
    25  section  eleven  hundred  two of this article, or for which the consumer
    26  has not consented to pursuant to subdivision  three  of  section  eleven
    27  hundred  two  of  this  article, or if it can reasonably expect that any
    28  rights of the consumer provided in this article would be compromised  as
    29  a result of such transaction.
    30    (iii) Before making any disclosure, transfer, or sale of personal data
    31  to  any  third  party,  the controller must enter into a written, signed
    32  contract. Such contract must be  binding  and  the  scope,  nature,  and
    33  purpose of processing, the type of data subject to processing, the dura-
    34  tion  of  processing,  and  the  rights and obligations of both parties.
    35  Such contract must include requirements that the third party:
    36    (A) Process that data only to the extent permitted  by  the  agreement
    37  entered into with the controller; and
    38    (B)  Provide  a mechanism to comply with any exercises of a consumer's
    39  rights under section eleven hundred two of this article upon the request
    40  of the controller, subject to any limitations thereon as  authorized  by
    41  this article; and
    42    (C)  To  the  extent the disclosure, transfer, or sale of the personal
    43  data causes the third party to become  a  controller,  comply  with  all
    44  obligations imposed on controllers under this article.
    45    2.  Processor  responsibilities.  (a)  For  any  personal data that is
    46  obtained, received, purchased, or otherwise  acquired  by  a  processor,
    47  whether directly from a controller or indirectly from another processor,
    48  the processor must comply with the requirements set forth in clauses (A)
    49  through  (J)  of subparagraph (i) of paragraph (f) of subdivision one of
    50  this section in its role as a processor.
    51    (b) A processor is not required to comply  with  a  request  submitted
    52  pursuant to this article if (i) the consumer submits the request direct-
    53  ly to the processor; and (ii) the processor has processed the consumer's
    54  personal data solely in its role as a processor for a controller.
    55    (c)  Processors  shall  be  under a continuing obligation to engage in
    56  reasonable measures to review their activities  for  circumstances  that

        A. 7423--A                         18

     1  may have altered their ability to identify a specific natural person and
     2  to  update  their  classifications of data as identified or identifiable
     3  accordingly.
     4    (d)  A  processor  shall not engage in any sale of personal data other
     5  than on behalf of the controller pursuant to any agreement entered  into
     6  with the controller.
     7    (e)  A  processor  must adopt appropriate technical and organizational
     8  measures to assist a controller in  fulfilling  the  controller's  obli-
     9  gation to respond to consumer requests to exercise their rights pursuant
    10  to  section  eleven hundred two of this article, taking into account the
    11  nature of the processing and the information available to the processor.
    12    3. Third party responsibilities.    For  any  personal  data  that  is
    13  obtained,  received,  purchased,  or otherwise acquired or accessed by a
    14  third party from a controller or processor, the third party must:
    15    (a) Process that data only to the extent permitted by  any  agreements
    16  entered into with the controller;
    17    (b)  Comply  with  any  exercises of a consumer's rights under section
    18  eleven hundred two of this article upon the request of the controller or
    19  processor, subject to any limitations  thereon  as  authorized  by  this
    20  article; and
    21    (c)  To  the  extent the third party becomes a controller for personal
    22  data, comply with all obligations  imposed  on  controllers  under  this
    23  article.
    24    4. Exceptions. The requirements of this section shall not apply where:
    25    (a) The processing is required by law;
    26    (b)  The processing is made pursuant to a request by a federal, state,
    27  or local government or government entity; or
    28    (c) The processing significantly advances protection against  criminal
    29  or tortious activity.
    30    § 1104. Data brokers. 1. A data broker, as defined under this article,
    31  must  annually,  on  or  before January thirty-first following a year in
    32  which a person meets the definition of data broker in this article:
    33    (a) Register with the attorney general;
    34    (b) Pay a registration fee of one  hundred  dollars  or  as  otherwise
    35  determined  by the attorney general pursuant to the regulatory authority
    36  granted to the attorney general under this article, not  to  exceed  the
    37  reasonable  cost of establishing and maintaining the database and infor-
    38  mational website described in this section; and
    39    (c) Provide the following information:
    40    (i) the name and primary physical, email, and internet website address
    41  of the data broker;
    42    (ii) the name and business address of an officer or  registered  agent
    43  of  the  data broker authorized to accept legal process on behalf of the
    44  data broker;
    45    (iii) a statement  describing  the  method  for  exercising  consumers
    46  rights under section eleven hundred two of this article;
    47    (iv)  a  statement  whether  the  data  broker  implements a purchaser
    48  credentialing process; and
    49    (v) any additional information or explanation the data broker  chooses
    50  to provide concerning its data collection practices.
    51    2. Notwithstanding any other provision of this article, any controller
    52  that conducts business in the state of New York must:
    53    (a)  annually,  on  or before January thirty-first following a year in
    54  which a person meets the definition of controller in this  act,  provide
    55  to the attorney general a list of all data brokers or persons reasonably

        A. 7423--A                         19
 
     1  believed  to  be  data brokers to which the controller provided personal
     2  data in the preceding year; and
     3    (b)  not  sell  a  consumer's  personal  data  to an entity reasonably
     4  believed to be a data broker that is not registered  with  the  attorney
     5  general.
     6    3.  The attorney general shall establish, manage and maintain a state-
     7  wide registry on its internet website, which shall list  all  registered
     8  data  brokers  and  make  accessible  to  the public all the information
     9  provided by data brokers pursuant to this section. Printed  hard  copies
    10  of  such  registry shall be made available upon request and payment of a
    11  reasonable fee to be determined by the attorney general.
    12    4. A data broker that fails to register as required by this section or
    13  submits false information in its registration is,  in  addition  to  any
    14  other  injunction,  penalty, or liability that may be imposed under this
    15  article, liable for civil  penalties,  fees,  and  costs  in  an  action
    16  brought  by  the attorney general as follows: (a) a civil penalty of one
    17  thousand dollars for each day the  data  broker  fails  to  register  as
    18  required  by  this section or fails to correct false information, (b) an
    19  amount equal to the fees that were due during the period  it  failed  to
    20  register,  and  (c)  expenses  incurred  by  the attorney general in the
    21  investigation and prosecution of the action as the court deems appropri-
    22  ate.
    23    § 1105. Limitations. 1. This article does not require a controller  or
    24  processor  to  do  any of the following solely for purposes of complying
    25  with this article:
    26    (a) Reidentify deidentified data;
    27    (b) Comply with a verified consumer request  to  access,  correct,  or
    28  delete  personal  data  pursuant to this article if all of the following
    29  are true:
    30    (i) The controller  is  not  reasonably  capable  of  associating  the
    31  request with the personal data;
    32    (ii)  The  controller  does not associate the personal data with other
    33  personal data about the same specific consumer as  part  of  its  normal
    34  business practice; and
    35    (iii)  The  controller  does  not  sell the personal data to any third
    36  party or otherwise voluntarily disclose or transfer the personal data to
    37  any processor or third party, except  as  otherwise  permitted  in  this
    38  article; or
    39    (c)  Maintain  personal data in identifiable form, or collect, obtain,
    40  retain, or access any personal data or technology, in order to be  capa-
    41  ble of associating a verified consumer request with personal data.
    42    2.  The  obligations  imposed on controllers and processors under this
    43  article do not restrict a controller's or processor's ability to do  any
    44  of  the following, to the extent that the use of the consumer's personal
    45  data is reasonably necessary and proportionate for these purposes:
    46    (a) Comply with federal, state, or local laws, rules, or  regulations,
    47  provided  that no law enforcement agency or officer thereof shall access
    48  personal data without a subpoena or a lawfully executed search  warrant,
    49  except  for  the  attorney  general for the   purposes of enforcing this
    50  article, except where otherwise provided specifically in federal law;
    51    (b) Investigate, establish, exercise, prepare  for,  or  defend  legal
    52  claims;
    53    (c)  Process  personal data necessary to provide the services or goods
    54  requested by a consumer; perform a contract to which the consumer  is  a
    55  party;  or  take  steps at the request of the consumer prior to entering
    56  into a contract;

        A. 7423--A                         20
 
     1    (d) Take immediate steps to protect the life or physical safety of the
     2  consumer or of another natural person, and where the  processing  cannot
     3  be manifestly based on another legal basis;
     4    (e)  Prevent,  detect,  protect  against, or respond to security inci-
     5  dents, identity theft, fraud, harassment, malicious or deceptive  activ-
     6  ities,  or  any  illegal activity; preserve the integrity or security of
     7  systems; or investigate, report, or prosecute those responsible for  any
     8  such action;
     9    (f)  Identify  and  repair  technical  errors  that impair existing or
    10  intended functionality; or
    11    (g) Process business contact information, including a natural person's
    12  name, position  name  or  title,  business  telephone  number,  business
    13  address, business electronic mail address, business fax number, or qual-
    14  ifications and any other similar information about the natural person.
    15    3.  The  obligations  imposed  on controllers or processors under this
    16  article do not apply where compliance by  the  controller  or  processor
    17  with  this article would violate an evidentiary privilege under New York
    18  law and do not prevent a controller or processor from providing personal
    19  data concerning a consumer to a person covered by an evidentiary  privi-
    20  lege under New York law as part of a privileged communication.
    21    4.  A controller that receives a request pursuant to subdivisions four
    22  through seven of section eleven  hundred  two  of  this  article,  or  a
    23  processor  or  third  party  to  whom  a  controller communicates such a
    24  request, may decline to fulfill the relevant part of such request if:
    25    (a) the controller, processor, or third party is unable to verify  the
    26  request using commercially reasonable efforts, as described in paragraph
    27  (c) of subdivision eight of section eleven hundred two of this article;
    28    (b)  complying  with the request would be demonstrably impossible (for
    29  purposes of this paragraph, the receipt of a large  number  of  verified
    30  requests,  on  its  own,  is  not sufficient to render compliance with a
    31  request demonstrably impossible);
    32    (c) complying with the request would impair  the  privacy  of  another
    33  individual or the rights of another to exercise free speech; or
    34    (d)  the  personal data was created by a natural person other than the
    35  consumer making the request and is being processed for  the  purpose  of
    36  facilitating interpersonal relationships or public discussion.
    37    §  1106.  Enforcement. 1. Whenever it appears to the attorney general,
    38  either upon complaint or otherwise,  that  any  person  or  persons  has
    39  engaged  in or is about to engage in any of the acts or practices stated
    40  to be unlawful under this article, the attorney  general  may  bring  an
    41  action  or special proceeding in the name and on behalf of the people of
    42  the state of New York to enjoin any violation of this article, to obtain
    43  restitution of any moneys or property obtained directly or indirectly by
    44  any such violation, to  obtain  disgorgement  of  any  profits  obtained
    45  directly  or indirectly by any such violation, to obtain civil penalties
    46  of not more than twenty thousand dollars per violation,  and  to  obtain
    47  any  such other and further relief as the court may deem proper, includ-
    48  ing preliminary relief.
    49    (a) Any action or special proceeding brought by the  attorney  general
    50  pursuant to this section must be commenced within six years.
    51    (b)  Each  instance  of  unlawful  processing  counts  as  a  separate
    52  violation. Unlawful processing of the personal data  of  more  than  one
    53  consumer  counts  as  a  separate  violation  as  to each consumer. Each
    54  provision of  this  article  that  is  violated  counts  as  a  separate
    55  violation.

        A. 7423--A                         21

     1    (c)  In assessing the amount of penalties, the court must consider any
     2  one or more of the  relevant  circumstances  presented  by  any  of  the
     3  parties,  including,  but  not limited to, the nature and seriousness of
     4  the misconduct, the number of violations, the persistence of the miscon-
     5  duct,  the  length of time over which the misconduct occurred, the will-
     6  fulness of the  violator's  misconduct,  and  the  violator's  financial
     7  condition.
     8    2.  In connection with any proposed action or special proceeding under
     9  this section, the attorney general is authorized to take proof and  make
    10  a determination of the relevant facts, and to issue subpoenas in accord-
    11  ance  with  the  civil practice law and rules.  The attorney general may
    12  also require such other data and information as he or she may deem rele-
    13  vant and may require written responses to questions under  oath.    Such
    14  power of subpoena and examination shall not abate or terminate by reason
    15  of  any  action  or  special  proceeding brought by the attorney general
    16  under this article.
    17    3. Any person, within or outside the state, who the  attorney  general
    18  believes may be in possession, custody, or control of any books, papers,
    19  or  other things, or may have information, relevant to acts or practices
    20  stated to be unlawful in this article is subject to  the  service  of  a
    21  subpoena  issued  by  the  attorney  general  pursuant  to this section.
    22  Service may be made in any manner that is authorized for  service  of  a
    23  subpoena or a summons by the state in which service is made.
    24    4.  (a)  Failure  to    comply with a subpoena issued pursuant to this
    25  section without reasonable cause tolls the applicable statutes of  limi-
    26  tations  in  any  action  or  special proceeding brought by the attorney
    27  general against the noncompliant person that arises out of the  attorney
    28  general's investigation.
    29    (b)  If  a  person  fails to comply with a subpoena issued pursuant to
    30  this section, the attorney general may move  in  the  supreme  court  to
    31  compel compliance.  If the court finds that the subpoena was authorized,
    32  it  shall  order  compliance and may impose a civil penalty of up to one
    33  thousand dollars per day of noncompliance.
    34    (c) Such tolling and civil penalty shall be in addition to  any  other
    35  penalties or remedies provided by law for noncompliance with a subpoena.
    36    5.  This section shall apply to all acts declared to be unlawful under
    37  this article, whether or not subject to any other law of this state, and
    38  shall not supersede, amend or repeal any other law of this  state  under
    39  which  the  attorney general is authorized to take any action or conduct
    40  any inquiry.
    41    § 1107. Miscellaneous. 1. Preemption: This article preempts the  laws,
    42  ordinances,  regulations,  or the equivalent adopted by any local entity
    43  regarding the processing, collection, transfer, disclosure, and sale  of
    44  consumers'  personal  data  by a controller or processor subject to this
    45  article.
    46    2. Impact report: The attorney general shall issue a report evaluating
    47  this article, its scope, any complaints from consumers or  persons,  the
    48  liability  and enforcement provisions of this article including, but not
    49  limited to, the effectiveness of its efforts to  enforce  this  article,
    50  and  any  recommendations  for  changes to such provisions. The attorney
    51  general shall submit the report to the governor, the temporary president
    52  of the senate, the speaker of the assembly, and the appropriate  commit-
    53  tees  of  the legislature within two years of the effective date of this
    54  section.
    55    3. Regulatory authority: (a) The attorney general is hereby authorized
    56  and empowered to adopt, promulgate, amend and rescind suitable rules and

        A. 7423--A                         22
 
     1  regulations to carry out the provisions of this article, including rules
     2  governing the form and content  of  any  disclosures  or  communications
     3  required by this article.
     4    (b)  The  attorney  general  may  request, and shall receive, data and
     5  information from controllers conducting  business  in  New  York  state,
     6  other  New  York  state  government  entities  administering  notice and
     7  consent regimes, consumer protection and privacy advocates and research-
     8  ers, internet standards setting bodies, such as the internet engineering
     9  taskforce and the institute of electrical and electronics engineers, and
    10  other relevant sources, to conduct studies to inform suitable rules  and
    11  regulations.    The  attorney  general shall receive, upon request, data
    12  from other New York state governmental entities.
    13    4.  Exercise of rights: Any consumer right set forth in  this  article
    14  may  be  exercised at any time by the consumer who is the subject of the
    15  data or by a parent or guardian authorized by law  to  take  actions  of
    16  legal  consequence  on  behalf of the consumer who is the subject of the
    17  data. An agent authorized by a consumer may exercise the consumer rights
    18  set forth in subdivisions four through seven of section  eleven  hundred
    19  two of this article on the consumers behalf.
    20    § 4. Severability. If any provision of this act, or any application of
    21  any  provision of this act, is held to be invalid, that shall not affect
    22  the  validity or effectiveness of any other provision of this act, or of
    23  any other application of any provision of this act, which can  be  given
    24  effect  without  that  provision  or  application;  and to that end, the
    25  provisions and  applications of this act are severable.
    26    § 5. This act shall take effect immediately; provided,  however,  that
    27  sections  1101,  1102, 1103, 1105, 1106 and 1107 of the general business
    28  law, as added by section three of this act, shall take effect two  years
    29  after it shall have become a law.
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