As always, Beckage lawyers are available to assist in addressing any questions you may have regarding data security developments. Please feel free to contact us.
There are two important privacy developments in New York State that companies should take note of: the Stop Hacks and Improve Electronic Data Security (SHIELD) Act and the New York Privacy Act (NYS5642). If passed, these pieces of legislation will impose more stringent data security requirements on companies that collect information from New York residents.
1. THE SHIELD ACT
Passed by the State's legislature, the SHIELD Act updates New York’s general business law (GBL 899-aa) governing notification requirements, consumer data protection obligations, and broadens the Attorney General’s oversight regarding data breaches impacting New Yorkers.
Specifically, the Act purports to:
Passed by the legislature, awaiting signature by the Governor. Additionally, amendments to the Act are currently pending.
2. THE NEW YORK PRIVACY ACT (NYS5642)
This bill, which has passed the Senate, was proposed by State Senator Thomas and is currently pending before the Senate Consumer Protection Committee. It has been compared to the General Data Protection Regulation and California Consumer Protection Act but differs in certain respects. Among other things, it purports to apply to most entities doing business in New York State, and includes those businesses outside the state that produce products or services targeted to NYS residents. Unlike the CCPA, there is no monetary or revenue threshold that must first be met to be included in the Act's jurisdictional scope.
This Act governs (and in some instances, limits) the collection and use of personal data by those entities. It requires consent, provides for certain data subject rights (correction, deletion), and includes a private right of action against companies processing jurisdictional PD. The bill does purport to exempt from its reach data sets governed by HIPPA/HITECH.
Pending in Senate Consumer Protection Committee.
This bill is likely to pass the Senate. However, as there is no same-as bill in the Assembly, the bill likely will not be passed this session. That said, it is a priority bill for Sen. Thomas and we expect more pressure next year to pass it.
Beckage PLLC continues to monitor privacy bills and regulations pending in New York State, including:
Have questions? Our team at Beckage is uniquely positioned to advise on emerging privacy laws at both the state and national level. Contact us today for a consultation.
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