- Summary
- Actions
- Committee Votes
- Floor Votes
- Memo
- Text
- LFIN
- Chamber Video/Transcript
S05575 Summary:
BILL NO | S05575B |
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SAME AS | SAME AS A05635-B |
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SPONSOR | THOMAS |
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COSPNSR | CARLUCCI, BIAGGI |
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MLTSPNSR | |
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Amd Art 39-F Art Head, §899-aa, add §899-bb, Gen Bus L; amd §208, St Tech L | |
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Relates to notification of a security breach; includes credit and debit cards; increases civil penalties. |
S05575 Actions:
BILL NO | S05575B | |||||||||||||||||||||||||||||||||||||||||||||||||
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05/07/2019 | REFERRED TO INTERNET AND TECHNOLOGY | |||||||||||||||||||||||||||||||||||||||||||||||||
05/16/2019 | COMMITTEE DISCHARGED AND COMMITTED TO CONSUMER PROTECTION | |||||||||||||||||||||||||||||||||||||||||||||||||
05/20/2019 | AMEND AND RECOMMIT TO CONSUMER PROTECTION | |||||||||||||||||||||||||||||||||||||||||||||||||
05/20/2019 | PRINT NUMBER 5575A | |||||||||||||||||||||||||||||||||||||||||||||||||
05/30/2019 | 1ST REPORT CAL.1094 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/03/2019 | 2ND REPORT CAL. | |||||||||||||||||||||||||||||||||||||||||||||||||
06/04/2019 | ADVANCED TO THIRD READING | |||||||||||||||||||||||||||||||||||||||||||||||||
06/05/2019 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/05/2019 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/05/2019 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | RECALLED FROM ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | VOTE RECONSIDERED - RESTORED TO THIRD READING | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | AMENDED ON THIRD READING 5575B | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | REPASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | substituted for a5635b | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | ordered to third reading rules cal.135 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/17/2019 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
07/22/2019 | DELIVERED TO GOVERNOR | |||||||||||||||||||||||||||||||||||||||||||||||||
07/25/2019 | SIGNED CHAP.117 |
S05575 Committee Votes:
Go to topS05575 Floor Votes:
Yes
Abbate
Yes
Crespo
ER
Gantt
Yes
LiPetri
Yes
Perry
Yes
Simon
Yes
Abinanti
Yes
Crouch
Yes
Garbarino
Yes
Lupardo
Yes
Pheffer Amato
Yes
Simotas
Yes
Arroyo
Yes
Cruz
Yes
Giglio
Yes
Magnarelli
Yes
Pichardo
Yes
Smith
Yes
Ashby
Yes
Cusick
Yes
Glick
Yes
Malliotakis
Yes
Pretlow
Yes
Smullen
Yes
Aubry
Yes
Cymbrowitz
Yes
Goodell
Yes
Manktelow
Yes
Quart
Yes
Solages
Yes
Barclay
Yes
Davila
Yes
Gottfried
Yes
McDonald
Yes
Ra
Yes
Stec
Yes
Barnwell
Yes
De La Rosa
Yes
Griffin
Yes
McDonough
Yes
Raia
Yes
Steck
Yes
Barrett
Yes
DenDekker
Yes
Gunther
Yes
McMahon
Yes
Ramos
Yes
Stern
Yes
Barron
Yes
DeStefano
Yes
Hawley
Yes
Mikulin
Yes
Raynor
Yes
Stirpe
Yes
Benedetto
Yes
Dickens
Yes
Hevesi
Yes
Miller B
Yes
Reilly
Yes
Tague
Yes
Bichotte
Yes
Dilan
Yes
Hunter
Yes
Miller MG
Yes
Reyes
Yes
Taylor
Yes
Blake
Yes
Dinowitz
Yes
Hyndman
Yes
Miller ML
Yes
Richardson
Yes
Thiele
Yes
Blankenbush
Yes
DiPietro
Yes
Jacobson
Yes
Montesano
Yes
Rivera
ER
Titus
Yes
Brabenec
Yes
D'Urso
Yes
Jaffee
Yes
Morinello
Yes
Rodriguez
Yes
Vanel
Yes
Braunstein
Yes
Eichenstein
Yes
Jean-Pierre
Yes
Mosley
Yes
Romeo
No
Walczyk
Yes
Bronson
Yes
Englebright
Yes
Johns
Yes
Niou
Yes
Rosenthal D
Yes
Walker
Yes
Buchwald
Yes
Epstein
Yes
Jones
Yes
Nolan
Yes
Rosenthal L
Yes
Wallace
Yes
Burke
Yes
Fahy
Yes
Joyner
Yes
Norris
Yes
Rozic
Yes
Walsh
Yes
Buttenschon
Yes
Fall
Yes
Kim
Yes
O'Donnell
Yes
Ryan
Yes
Weinstein
Yes
Byrne
Yes
Fernandez
Yes
Kolb
Yes
Ortiz
Yes
Salka
Yes
Weprin
Yes
Byrnes
Yes
Finch
Yes
Lalor
Yes
Otis
Yes
Santabarbara
Yes
Williams
Yes
Cahill
Yes
Fitzpatrick
Yes
Lavine
Yes
Palmesano
Yes
Sayegh
Yes
Woerner
Yes
Carroll
Yes
Friend
Yes
Lawrence
Yes
Palumbo
Yes
Schimminger
Yes
Wright
Yes
Colton
Yes
Frontus
Yes
Lentol
Yes
Paulin
Yes
Schmitt
Yes
Zebrowski
Yes
Cook
Yes
Galef
Yes
Lifton
Yes
Peoples-Stokes
Yes
Seawright
Yes
Mr. Speaker
‡ Indicates voting via videoconference
S05575 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 5575--B Cal. No. 1094 2019-2020 Regular Sessions IN SENATE May 7, 2019 ___________ Introduced by Sens. THOMAS, CARLUCCI, BIAGGI -- (at request of the Attorney General) -- read twice and ordered printed, and when printed to be committed to the Committee on Internet and Technology -- commit- tee discharged and said bill committed to the Committee on Consumer Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the general business law and the state technology law, in relation to notification of a security breach The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "Stop Hacks 2 and Improve Electronic Data Security Act (SHIELD Act)". 3 § 2. The article heading of article 39-F of the general business law, 4 as added by chapter 442 of the laws of 2005, is amended to read as 5 follows: 6 NOTIFICATION OF UNAUTHORIZED ACQUISITION OF PRIVATE 7 INFORMATION; DATA SECURITY PROTECTIONS 8 § 3. Subdivisions 1, 2, 3, 5, 6, 7 and 8 of section 899-aa of the 9 general business law, subdivisions 1, 2, 3, 5, 6 and 7 as added by chap- 10 ter 442 of the laws of 2005, paragraph (c) of subdivision 1, paragraph 11 (a) of subdivision 6 and subdivision 8 as amended by chapter 491 of the 12 laws of 2005 and paragraph (a) of subdivision 8 as amended by section 6 13 of part N of chapter 55 of the laws of 2013, are amended, subdivision 9 14 is renumbered subdivision 10 and a new subdivision 9 is added to read as 15 follows: 16 1. As used in this section, the following terms shall have the follow- 17 ing meanings: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05343-07-9S. 5575--B 2 1 (a) "Personal information" shall mean any information concerning a 2 natural person which, because of name, number, personal mark, or other 3 identifier, can be used to identify such natural person; 4 (b) "Private information" shall mean either: (i) personal information 5 consisting of any information in combination with any one or more of the 6 following data elements, when either the data element or the combination 7 of personal information [or] plus the data element is not encrypted, or 8 is encrypted with an encryption key that has also been accessed or 9 acquired: 10 (1) social security number; 11 (2) driver's license number or non-driver identification card number; 12 [or] 13 (3) account number, credit or debit card number, in combination with 14 any required security code, access code, [or] password or other informa- 15 tion that would permit access to an individual's financial account; 16 (4) account number, credit or debit card number, if circumstances 17 exist wherein such number could be used to access an individual's finan- 18 cial account without additional identifying information, security code, 19 access code, or password; or 20 (5) biometric information, meaning data generated by electronic meas- 21 urements of an individual's unique physical characteristics, such as a 22 fingerprint, voice print, retina or iris image, or other unique physical 23 representation or digital representation of biometric data which are 24 used to authenticate or ascertain the individual's identity; or 25 (ii) a user name or e-mail address in combination with a password or 26 security question and answer that would permit access to an online 27 account. 28 "Private information" does not include publicly available information 29 which is lawfully made available to the general public from federal, 30 state, or local government records. 31 (c) "Breach of the security of the system" shall mean unauthorized 32 access to or acquisition of, or access to or acquisition without valid 33 authorization, of computerized data that compromises the security, 34 confidentiality, or integrity of [personal] private information main- 35 tained by a business. Good faith access to, or acquisition of 36 [personal], private information by an employee or agent of the business 37 for the purposes of the business is not a breach of the security of the 38 system, provided that the private information is not used or subject to 39 unauthorized disclosure. 40 In determining whether information has been accessed, or is reasonably 41 believed to have been accessed, by an unauthorized person or a person 42 without valid authorization, such business may consider, among other 43 factors, indications that the information was viewed, communicated with, 44 used, or altered by a person without valid authorization or by an unau- 45 thorized person. 46 In determining whether information has been acquired, or is reasonably 47 believed to have been acquired, by an unauthorized person or a person 48 without valid authorization, such business may consider the following 49 factors, among others: 50 (1) indications that the information is in the physical possession and 51 control of an unauthorized person, such as a lost or stolen computer or 52 other device containing information; or 53 (2) indications that the information has been downloaded or copied; or 54 (3) indications that the information was used by an unauthorized 55 person, such as fraudulent accounts opened or instances of identity 56 theft reported.S. 5575--B 3 1 (d) "Consumer reporting agency" shall mean any person which, for mone- 2 tary fees, dues, or on a cooperative nonprofit basis, regularly engages 3 in whole or in part in the practice of assembling or evaluating consumer 4 credit information or other information on consumers for the purpose of 5 furnishing consumer reports to third parties, and which uses any means 6 or facility of interstate commerce for the purpose of preparing or 7 furnishing consumer reports. A list of consumer reporting agencies shall 8 be compiled by the state attorney general and furnished upon request to 9 any person or business required to make a notification under subdivision 10 two of this section. 11 2. Any person or business which [conducts business in New York state,12and which] owns or licenses computerized data which includes private 13 information shall disclose any breach of the security of the system 14 following discovery or notification of the breach in the security of the 15 system to any resident of New York state whose private information was, 16 or is reasonably believed to have been, accessed or acquired by a person 17 without valid authorization. The disclosure shall be made in the most 18 expedient time possible and without unreasonable delay, consistent with 19 the legitimate needs of law enforcement, as provided in subdivision four 20 of this section, or any measures necessary to determine the scope of the 21 breach and restore the [reasonable] integrity of the system. 22 (a) Notice to affected persons under this section is not required if 23 the exposure of private information was an inadvertent disclosure by 24 persons authorized to access private information, and the person or 25 business reasonably determines such exposure will not likely result in 26 misuse of such information, or financial harm to the affected persons or 27 emotional harm in the case of unknown disclosure of online credentials 28 as found in subparagraph (ii) of paragraph (b) of subdivision one of 29 this section. Such a determination must be documented in writing and 30 maintained for at least five years. If the incident affects over five 31 hundred residents of New York, the person or business shall provide the 32 written determination to the state attorney general within ten days 33 after the determination. 34 (b) If notice of the breach of the security of the system is made to 35 affected persons pursuant to the breach notification requirements under 36 any of the following laws, nothing in this section shall require any 37 additional notice to those affected persons, but notice still shall be 38 provided to the state attorney general, the department of state and the 39 division of state police pursuant to paragraph (a) of subdivision eight 40 of this section and to consumer reporting agencies pursuant to paragraph 41 (b) of subdivision eight of this section: 42 (i) regulations promulgated pursuant to Title V of the federal Gramm- 43 Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time; 44 (ii) regulations implementing the Health Insurance Portability and 45 Accountability Act of 1996 (45 C.F.R. parts 160 and 164), as amended 46 from time to time, and the Health Information Technology for Economic 47 and Clinical Health Act, as amended from time to time; 48 (iii) part five hundred of title twenty-three of the official compila- 49 tion of codes, rules and regulations of the state of New York, as 50 amended from time to time; or 51 (iv) any other data security rules and regulations of, and the stat- 52 utes administered by, any official department, division, commission or 53 agency of the federal or New York state government as such rules, regu- 54 lations or statutes are interpreted by such department, division, 55 commission or agency or by the federal or New York state courts.S. 5575--B 4 1 3. Any person or business which maintains computerized data which 2 includes private information which such person or business does not own 3 shall notify the owner or licensee of the information of any breach of 4 the security of the system immediately following discovery, if the 5 private information was, or is reasonably believed to have been, 6 accessed or acquired by a person without valid authorization. 7 5. The notice required by this section shall be directly provided to 8 the affected persons by one of the following methods: 9 (a) written notice; 10 (b) electronic notice, provided that the person to whom notice is 11 required has expressly consented to receiving said notice in electronic 12 form and a log of each such notification is kept by the person or busi- 13 ness who notifies affected persons in such form; provided further, 14 however, that in no case shall any person or business require a person 15 to consent to accepting said notice in said form as a condition of 16 establishing any business relationship or engaging in any transaction. 17 (c) telephone notification provided that a log of each such notifica- 18 tion is kept by the person or business who notifies affected persons; or 19 (d) substitute notice, if a business demonstrates to the state attor- 20 ney general that the cost of providing notice would exceed two hundred 21 fifty thousand dollars, or that the affected class of subject persons to 22 be notified exceeds five hundred thousand, or such business does not 23 have sufficient contact information. Substitute notice shall consist of 24 all of the following: 25 (1) e-mail notice when such business has an e-mail address for the 26 subject persons, except if the breached information includes an e-mail 27 address in combination with a password or security question and answer 28 that would permit access to the online account, in which case the person 29 or business shall instead provide clear and conspicuous notice delivered 30 to the consumer online when the consumer is connected to the online 31 account from an internet protocol address or from an online location 32 which the person or business knows the consumer customarily uses to 33 access the online account; 34 (2) conspicuous posting of the notice on such business's web site 35 page, if such business maintains one; and 36 (3) notification to major statewide media. 37 6. (a) whenever the attorney general shall believe from evidence 38 satisfactory to him or her that there is a violation of this article he 39 or she may bring an action in the name and on behalf of the people of 40 the state of New York, in a court of justice having jurisdiction to 41 issue an injunction, to enjoin and restrain the continuation of such 42 violation. In such action, preliminary relief may be granted under 43 article sixty-three of the civil practice law and rules. In such action 44 the court may award damages for actual costs or losses incurred by a 45 person entitled to notice pursuant to this article, if notification was 46 not provided to such person pursuant to this article, including conse- 47 quential financial losses. Whenever the court shall determine in such 48 action that a person or business violated this article knowingly or 49 recklessly, the court may impose a civil penalty of the greater of five 50 thousand dollars or up to [ten] twenty dollars per instance of failed 51 notification, provided that the latter amount shall not exceed [one] two 52 hundred fifty thousand dollars. 53 (b) the remedies provided by this section shall be in addition to any 54 other lawful remedy available. 55 (c) no action may be brought under the provisions of this section 56 unless such action is commenced within [two] three years [immediately]S. 5575--B 5 1 after either the date [of the act complained of or the date of discovery2of such act] on which the attorney general became aware of the 3 violation, or the date of notice sent pursuant to paragraph (a) of 4 subdivision eight of this section, whichever occurs first. In no event 5 shall an action be brought after six years from the date of discovery of 6 the breach of private information by the company unless the company took 7 steps to hide the breach. 8 7. Regardless of the method by which notice is provided, such notice 9 shall include contact information for the person or business making the 10 notification, the telephone numbers and websites of the relevant state 11 and federal agencies that provide information regarding security breach 12 response and identity theft prevention and protection information, and a 13 description of the categories of information that were, or are reason- 14 ably believed to have been, accessed or acquired by a person without 15 valid authorization, including specification of which of the elements of 16 personal information and private information were, or are reasonably 17 believed to have been, so accessed or acquired. 18 8. (a) In the event that any New York residents are to be notified, 19 the person or business shall notify the state attorney general, the 20 department of state and the division of state police as to the timing, 21 content and distribution of the notices and approximate number of 22 affected persons and shall provide a copy of the template of the notice 23 sent to affected persons. Such notice shall be made without delaying 24 notice to affected New York residents. 25 (b) In the event that more than five thousand New York residents are 26 to be notified at one time, the person or business shall also notify 27 consumer reporting agencies as to the timing, content and distribution 28 of the notices and approximate number of affected persons. Such notice 29 shall be made without delaying notice to affected New York residents. 30 9. Any covered entity required to provide notification of a breach, 31 including breach of information that is not "private information" as 32 defined in paragraph (b) of subdivision one of this section, to the 33 secretary of health and human services pursuant to the Health Insurance 34 Portability and Accountability Act of 1996 or the Health Information 35 Technology for Economic and Clinical Health Act, as amended from time to 36 time, shall provide such notification to the state attorney general 37 within five business days of notifying the secretary. 38 § 4. The general business law is amended by adding a new section 899- 39 bb to read as follows: 40 § 899-bb. Data security protections. 1. Definitions. (a) "Compliant 41 regulated entity" shall mean any person or business that is subject to, 42 and in compliance with, any of the following data security requirements: 43 (i) regulations promulgated pursuant to Title V of the federal Gramm- 44 Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time; 45 (ii) regulations implementing the Health Insurance Portability and 46 Accountability Act of 1996 (45 C.F.R. parts 160 and 164), as amended 47 from time to time, and the Health Information Technology for Economic 48 and Clinical Health Act, as amended from time to time; 49 (iii) part five hundred of title twenty-three of the official compila- 50 tion of codes, rules and regulations of the state of New York, as 51 amended from time to time; or 52 (iv) any other data security rules and regulations of, and the stat- 53 utes administered by, any official department, division, commission or 54 agency of the federal or New York state government as such rules, regu- 55 lations or statutes are interpreted by such department, division, 56 commission or agency or by the federal or New York state courts.S. 5575--B 6 1 (b) "Private information" shall have the same meaning as defined in 2 section eight hundred ninety-nine-aa of this article. 3 (c) "Small business" shall mean any person or business with (i) fewer 4 than fifty employees; (ii) less than three million dollars in gross 5 annual revenue in each of the last three fiscal years; or (iii) less 6 than five million dollars in year-end total assets, calculated in 7 accordance with generally accepted accounting principles. 8 2. Reasonable security requirement. (a) Any person or business that 9 owns or licenses computerized data which includes private information of 10 a resident of New York shall develop, implement and maintain reasonable 11 safeguards to protect the security, confidentiality and integrity of the 12 private information including, but not limited to, disposal of data. 13 (b) A person or business shall be deemed to be in compliance with 14 paragraph (a) of this subdivision if it either: 15 (i) is a compliant regulated entity as defined in subdivision one of 16 this section; or 17 (ii) implements a data security program that includes the following: 18 (A) reasonable administrative safeguards such as the following, in 19 which the person or business: 20 (1) designates one or more employees to coordinate the security 21 program; 22 (2) identifies reasonably foreseeable internal and external risks; 23 (3) assesses the sufficiency of safeguards in place to control the 24 identified risks; 25 (4) trains and manages employees in the security program practices and 26 procedures; 27 (5) selects service providers capable of maintaining appropriate safe- 28 guards, and requires those safeguards by contract; and 29 (6) adjusts the security program in light of business changes or new 30 circumstances; and 31 (B) reasonable technical safeguards such as the following, in which 32 the person or business: 33 (1) assesses risks in network and software design; 34 (2) assesses risks in information processing, transmission and stor- 35 age; 36 (3) detects, prevents and responds to attacks or system failures; and 37 (4) regularly tests and monitors the effectiveness of key controls, 38 systems and procedures; and 39 (C) reasonable physical safeguards such as the following, in which the 40 person or business: 41 (1) assesses risks of information storage and disposal; 42 (2) detects, prevents and responds to intrusions; 43 (3) protects against unauthorized access to or use of private informa- 44 tion during or after the collection, transportation and destruction or 45 disposal of the information; and 46 (4) disposes of private information within a reasonable amount of time 47 after it is no longer needed for business purposes by erasing electronic 48 media so that the information cannot be read or reconstructed. 49 (c) A small business as defined in paragraph (c) of subdivision one of 50 this section complies with subparagraph (ii) of paragraph (b) of subdi- 51 vision two of this section if the small business's security program 52 contains reasonable administrative, technical and physical safeguards 53 that are appropriate for the size and complexity of the small business, 54 the nature and scope of the small business's activities, and the sensi- 55 tivity of the personal information the small business collects from or 56 about consumers.S. 5575--B 7 1 (d) Any person or business that fails to comply with this subdivision 2 shall be deemed to have violated section three hundred forty-nine of 3 this chapter, and the attorney general may bring an action in the name 4 and on behalf of the people of the state of New York to enjoin such 5 violations and to obtain civil penalties under section three hundred 6 fifty-d of this chapter. 7 (e) Nothing in this section shall create a private right of action. 8 § 5. Paragraph (a) of subdivision 1 and subdivisions 2, 3, 6, 7 and 8 9 of section 208 of the state technology law, paragraph (a) of subdivision 10 1 and subdivisions 3 and 8 as added by chapter 442 of the laws of 2005, 11 subdivision 2 and paragraph (a) of subdivision 7 as amended by section 5 12 of part N of chapter 55 of the laws of 2013 and subdivisions 6 and 7 as 13 amended by chapter 491 of the laws of 2005, are amended and a new subdi- 14 vision 9 is added to read as follows: 15 (a) "Private information" shall mean either: (i) personal information 16 consisting of any information in combination with any one or more of the 17 following data elements, when either the data element or the combination 18 of personal information [or] plus the data element is not encrypted or 19 encrypted with an encryption key that has also been accessed or 20 acquired: 21 (1) social security number; 22 (2) driver's license number or non-driver identification card number; 23 [or] 24 (3) account number, credit or debit card number, in combination with 25 any required security code, access code, [or] password or other informa- 26 tion which would permit access to an individual's financial account; 27 (4) account number, or credit or debit card number, if circumstances 28 exist wherein such number could be used to access to an individual's 29 financial account without additional identifying information, security 30 code, access code, or password; or 31 (5) biometric information, meaning data generated by electronic meas- 32 urements of an individual's unique physical characteristics, such as 33 fingerprint, voice print, or retina or iris image, or other unique phys- 34 ical representation or digital representation which are used to authen- 35 ticate or ascertain the individual's identity; or 36 (ii) a user name or e-mail address in combination with a password or 37 security question and answer that would permit access to an online 38 account. 39 "Private information" does not include publicly available information 40 that is lawfully made available to the general public from federal, 41 state, or local government records. 42 2. Any state entity that owns or licenses computerized data that 43 includes private information shall disclose any breach of the security 44 of the system following discovery or notification of the breach in the 45 security of the system to any resident of New York state whose private 46 information was, or is reasonably believed to have been, accessed or 47 acquired by a person without valid authorization. The disclosure shall 48 be made in the most expedient time possible and without unreasonable 49 delay, consistent with the legitimate needs of law enforcement, as 50 provided in subdivision four of this section, or any measures necessary 51 to determine the scope of the breach and restore the [reasonable] integ- 52 rity of the data system. The state entity shall consult with the state 53 office of information technology services to determine the scope of the 54 breach and restoration measures. Within ninety days of the notice of the 55 breach, the office of information technology services shall deliver aS. 5575--B 8 1 report on the scope of the breach and recommendations to restore and 2 improve the security of the system to the state entity. 3 (a) Notice to affected persons under this section is not required if 4 the exposure of private information was an inadvertent disclosure by 5 persons authorized to access private information, and the state entity 6 reasonably determines such exposure will not likely result in misuse of 7 such information, or financial or emotional harm to the affected 8 persons. Such a determination must be documented in writing and main- 9 tained for at least five years. If the incident affected over five 10 hundred residents of New York, the state entity shall provide the writ- 11 ten determination to the state attorney general within ten days after 12 the determination. 13 (b) If notice of the breach of the security of the system is made to 14 affected persons pursuant to the breach notification requirements under 15 any of the following laws, nothing in this section shall require any 16 additional notice to those affected persons, but notice still shall be 17 provided to the state attorney general, the department of state and the 18 office of information technology services pursuant to paragraph (a) of 19 subdivision seven of this section and to consumer reporting agencies 20 pursuant to paragraph (b) of subdivision seven of this section: 21 (i) regulations promulgated pursuant to Title V of the federal Gramm- 22 Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time; 23 (ii) regulations implementing the Health Insurance Portability and 24 Accountability Act of 1996 (45 C.F.R. parts 160 and 164), as amended 25 from time to time, and the Health Information Technology for Economic 26 and Clinical Health Act, as amended from time to time; 27 (iii) part five hundred of title twenty-three of the official compila- 28 tion of codes, rules and regulations of the state of New York, as 29 amended from time to time; or 30 (iv) any other data security rules and regulations of, and the stat- 31 utes administered by, any official department, division, commission or 32 agency of the federal or New York state government as such rules, regu- 33 lations or statutes are interpreted by such department, division, 34 commission or agency or by the federal or New York state courts. 35 3. Any state entity that maintains computerized data that includes 36 private information which such agency does not own shall notify the 37 owner or licensee of the information of any breach of the security of 38 the system immediately following discovery, if the private information 39 was, or is reasonably believed to have been, accessed or acquired by a 40 person without valid authorization. 41 6. Regardless of the method by which notice is provided, such notice 42 shall include contact information for the state entity making the 43 notification, the telephone numbers and websites of the relevant state 44 and federal agencies that provide information regarding security breach 45 response and identity theft prevention and protection information and a 46 description of the categories of information that were, or are reason- 47 ably believed to have been, accessed or acquired by a person without 48 valid authorization, including specification of which of the elements of 49 personal information and private information were, or are reasonably 50 believed to have been, so accessed or acquired. 51 7. (a) In the event that any New York residents are to be notified, 52 the state entity shall notify the state attorney general, the department 53 of state and the state office of information technology services as to 54 the timing, content and distribution of the notices and approximate 55 number of affected persons and provide a copy of the template of theS. 5575--B 9 1 notice sent to affected persons. Such notice shall be made without 2 delaying notice to affected New York residents. 3 (b) In the event that more than five thousand New York residents are 4 to be notified at one time, the state entity shall also notify consumer 5 reporting agencies as to the timing, content and distribution of the 6 notices and approximate number of affected persons. Such notice shall be 7 made without delaying notice to affected New York residents. 8 8. The state office of information technology services shall develop, 9 update and provide regular training to all state entities relating to 10 best practices for the prevention of a breach of the security of the 11 system. 12 9. Any covered entity required to provide notification of a breach, 13 including breach of information that is not "private information" as 14 defined in paragraph (a) of subdivision one of this section, to the 15 secretary of health and human services pursuant to the Health Insurance 16 Portability and Accountability Act of 1996 or the Health Information 17 Technology for Economic and Clinical Health Act, as amended from time to 18 time, shall provide such notification to the state attorney general 19 within five business days of notifying the secretary. 20 10. Any entity listed in subparagraph two of paragraph (c) of subdi- 21 vision one of this section shall adopt a notification policy no more 22 than one hundred twenty days after the effective date of this section. 23 Such entity may develop a notification policy which is consistent with 24 this section or alternatively shall adopt a local law which is consist- 25 ent with this section. 26 § 6. This act shall take effect on the ninetieth day after it shall 27 have become a law; provided, however, that section four of this act 28 shall take effect on the two hundred fortieth day after it shall have 29 become a law.