Bill Text: NY A00048 | 2023-2024 | General Assembly | Amended


Bill Title: Relates to limitations on the use of smart access systems; restricts information that may be gathered on lessees, tenants, owners or guests.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced) 2024-05-22 - amended on third reading 48d [A00048 Detail]

Download: New_York-2023-A00048-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          48--D
                                                                  Cal. No. 3

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by  M.  of A. L. ROSENTHAL, DINOWITZ, GLICK, SIMON, EPSTEIN,
          McMAHON, COLTON, WEPRIN, TAYLOR, RAGA -- read once and referred to the
          Committee on Housing -- committee discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee -- reported and
          referred  to  the  Committee  on  Codes  -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee  --  ordered  to  a  third reading, amended and ordered reprinted,
          retaining its place on the order of third reading -- again amended  on
          third  reading, ordered reprinted, retaining its place on the order of
          third reading

        AN ACT to amend the multiple dwelling law  and  the  multiple  residence
          law,  in  relation to the use of smart access systems and the informa-
          tion that may be gathered from such systems

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  multiple  dwelling  law  is  amended by adding a new
     2  section 50-b to read as follows:
     3    § 50-b. Electronic or computerized entry systems. 1.  Definitions. For
     4  the purposes of this section, the following terms shall have the follow-
     5  ing meanings:
     6    a. "Account information" means information that is  used  to  grant  a
     7  user  entry  or  access to any online tools that are used to manage user
     8  accounts related to a smart access system.
     9    b. "Authentication data" means data  generated  or  collected  at  the
    10  point  of  authentication  in connection with granting a user entry to a
    11  class A multiple dwelling, dwelling unit of  such  building,  or  common
    12  area  of  such  building  through  a smart access system, except that it
    13  shall not include data generated through or  collected  by  a  video  or
    14  camera system that is used to monitor entrances but not to grant entry.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00692-10-4

        A. 48--D                            2

     1    c.  "Biometric  identifier information" means a physiological, biolog-
     2  ical or behavioral characteristic that is used to identify, or assist in
     3  identifying, an individual, including, but not limited to: (i) a  retina
     4  or  iris  scan,  (ii)  a fingerprint, (iii) a voiceprint, (iv) a scan or
     5  record of a palm, hand, or face geometry, (v) gait or movement patterns,
     6  or  (vi)  any  other similar identifying characteristic that can be used
     7  alone or in combination with each other, or with other  information,  to
     8  establish individual identity.
     9    d.  "Critical  security  vulnerability" means a security vulnerability
    10  that has a significant risk of resulting in an unauthorized access to an
    11  area secured by a smart access system.
    12    e. "Reference data" means  information  against  which  authentication
    13  data is verified at the point of authentication by a smart access system
    14  in  order to grant a user entry to a class A multiple dwelling, dwelling
    15  unit of such building, or common area of such building.
    16    f. "Security breach" means any incident that results  in  unauthorized
    17  access of data, applications, services, networks or devices by bypassing
    18  underlying security mechanisms. A "security breach" occurs when an indi-
    19  vidual  or  an application illegitimately enters a private, confidential
    20  or unauthorized logical information technology perimeter.
    21    g. "Smart access system" means any  system  that  uses  electronic  or
    22  computerized technology, a radio frequency identification card, a mobile
    23  phone  application,  biometric  identifier  information,  or  any  other
    24  digital technology in order to grant access to a class A multiple dwell-
    25  ing, common areas in such multiple dwelling, or to an individual  dwell-
    26  ing unit in such multiple dwelling.
    27    h.  "Third party" means an entity that installs, operates or otherwise
    28  directly supports a smart access system, and has ongoing access to  user
    29  data, excluding any entity that solely hosts such data.
    30    i.  "User"  means  a  tenant  or lawful occupant of a class A multiple
    31  dwelling, and any person a tenant or lawful occupant has  requested,  in
    32  writing  or  through  a  mobile  application,  be granted access to such
    33  tenant or lawful occupant's dwelling  unit  and  such  building's  smart
    34  access system.
    35    2.  Entry.  a.  Where  an  owner  installs or plans to install a smart
    36  access system on any entrance from the street, passageway, court,  yard,
    37  cellar, or other common area of a class A multiple dwelling, such system
    38  shall  not rely solely on a web-based application to facilitate entrance
    39  but shall also include a key fob, key card, digital key or passcode  for
    40  tenant use.
    41    b.  Owners may provide various methods of entry into individual apart-
    42  ments including a mechanical key or a smart access system of a key  fob,
    43  key card or digital key, provided, however that such smart access system
    44  shall not rely solely on a web-based application.
    45    c.  Notwithstanding paragraph a or b of this subdivision, owners shall
    46  provide a non-electronic means of entry where requested by the tenant or
    47  lawful occupant due to a religious preference.
    48    d. All lawful tenants and lawful occupants shall be  provided  with  a
    49  key,  key  fob,  digital  key or key card at no cost to such tenants and
    50  lawful occupants. The term "lawful  occupants"  shall  include  children
    51  under  the  age  of eighteen who shall be issued a key, key fob, digital
    52  key or key card if a parent or guardian requests such child be  provided
    53  with one. Tenants and lawful occupants may also receive up to four addi-
    54  tional  keys,  key  fobs,  digital  keys  or key cards at no cost to the
    55  tenant or lawful occupant for employees or  guests.  The  term  "guests"
    56  shall  include family members and friends who can reasonably be expected

        A. 48--D                            3

     1  to visit on a regular basis or visit as needed to care for  the  tenant,
     2  lawful  occupant, or the dwelling unit if the tenant  or lawful occupant
     3  is away. Employees, including contractors,  professional  caregivers  or
     4  other  services  providers,  may have an expiration date placed on their
     5  key, key card, digital key or key fob, which may be  extended  upon  the
     6  tenant's  or lawful occupant's request.  Tenants or lawful occupants may
     7  request a new or replacement key, key fob, digital key or  key  card  at
     8  any  time  throughout the course of the tenancy or occupancy.  The owner
     9  or their agent shall provide the first replacement key, key fob, digital
    10  key or key card to the tenant or lawful occupant  free  of  charge.  The
    11  cost  of  second and subsequent replacement cards shall not be more than
    12  what the owner paid for the replacement up to and not exceeding  twenty-
    13  five dollars.
    14    e.  The  owner  shall  not set limits on the number of keys, key fobs,
    15  digital keys or key cards a tenant or lawful occupant may request.
    16    f. Any door that has a smart access system shall have backup power  or
    17  an  alternative means of entry to ensure that the entry system continues
    18  to operate during a power  outage.  An  owner,  or  their  agent,  shall
    19  routinely inspect the backup power and shall replace according to system
    20  specifications.  Owners or their agents shall provide tenants and lawful
    21  occupants  with  information about whom to contact in the event that the
    22  tenant, lawful occupant or the tenant's or lawful  occupant's  children,
    23  guests or employees become locked out.
    24    3.  Notice. Owners or their agents shall provide notice to a tenant or
    25  lawful occupant at the time the tenant  or  lawful  occupant  signs  the
    26  lease,  or  when the smart access system is installed, of the provisions
    27  of subdivision two of this section.
    28    4. Data collection. a. If a smart access system is  utilized  to  gain
    29  entrance to a class A multiple dwelling, the only reference, authentica-
    30  tion,  and account information gathered by any smart access system shall
    31  be limited to account information necessary to enable the  use  of  such
    32  smart  access  system,  or  reference  data,  including the user's name,
    33  dwelling unit number and other doors or common areas to which  the  user
    34  has  access,  the preferred method of contact for such user, information
    35  used to grant a user entry or to access any online tools used to  manage
    36  user  accounts  related  to  such  building, lease information including
    37  move-in and, if available move-out dates, and authentication  data  such
    38  as  time  and method of access for security purposes and a photograph of
    39  access events for security purposes. For smart access systems that  rely
    40  on  the  collection  of  biometric  data  and  which  have  already been
    41  installed at the time this section shall have become  a  law,  biometric
    42  identifier  information  may  be  collected  pursuant to this section in
    43  order to register a user for a smart access system.  No new smart access
    44  systems that rely on the collection of biometric data shall be installed
    45  in class A multiple dwellings for three years after the  effective  date
    46  of this section.
    47    (i)  The  owner  of the multiple dwelling may collect only the minimum
    48  data required by the technology used  in  the  smart  access  system  to
    49  effectuate  such  entrance  and protect the privacy and security of such
    50  users.
    51    (ii) The owner or agent of the owner shall not request or  retain,  in
    52  any form, the social security number of any tenant or lawful occupant as
    53  a condition of use of the smart access system.
    54    (iii)  The  owner, agent of the owner, or the vendor of a smart access
    55  system on behalf of the owner may record each time a key fob, key  card,

        A. 48--D                            4

     1  digital  key  or  passcode  is used to enter the building, but shall not
     2  record any departures.
     3    (iv) A copy of such data may be retained for reference at the point of
     4  authentication  by the smart access system. Such reference data shall be
     5  retained only for tenants  or lawful occupants or  those  authorized  by
     6  the tenant, lawful occupant, or owner of the multiple dwelling.
     7    (v)  The  owner  of  the  multiple  dwelling  or any third party shall
     8  destroy or anonymize authentication data collected from or generated  by
     9  such  smart  access  system within a reasonable time, but not later than
    10  ninety days after the date collected.
    11    (vi) Reference data for a user shall be destroyed or anonymized within
    12  ninety days of (1) the tenant or lawful  occupant  permanently  vacating
    13  the dwelling, or (2) a request by the tenant or lawful occupant to with-
    14  draw  authorization  for  those  previously  authorized by the tenant or
    15  lawful occupant.
    16    b. (i) An entity shall not capture biometric identifier information of
    17  an individual to gain entrance to a class A multiple dwelling unless the
    18  person is a tenant or lawful occupant or  a  person  authorized  by  the
    19  tenant  or  lawful occupant, and informs the individual before capturing
    20  the biometric identifier information; and receives their express consent
    21  to capture the biometric identifier information.
    22    (ii) Any entity that possesses biometric identifier information of  an
    23  individual  that  is  captured  to  gain  entrance to a class A multiple
    24  dwelling:
    25    (1) Shall not sell, lease or otherwise disclose the biometric  identi-
    26  fier  information  to  another  person unless pursuant to any law, grand
    27  jury subpoena or court ordered warrant, subpoena,  or  other  authorized
    28  court ordered process.
    29    (2)  Shall  store,  transmit and protect from disclosure the biometric
    30  identifier information using reasonable care and in a manner that is the
    31  same as or more protective than the manner in which the  person  stores,
    32  transmits  and  protects  confidential information the person possesses;
    33  and
    34    (3) Shall  destroy  the  biometric  identifier  information  within  a
    35  reasonable  time,  but  not  later than forty-eight hours after the date
    36  collected, except for reference data.  If any prohibited information  is
    37  collected, such as the likeness of a minor or a non-tenant, the informa-
    38  tion shall be destroyed immediately.
    39    c.  The  owner  of the multiple dwelling, or the managing agent, shall
    40  develop and provide to tenants and lawful occupants  written  procedures
    41  which  describe the process used to add persons authorized by the tenant
    42  or lawful occupant to the smart access system on a temporary  or  perma-
    43  nent  basis, such as visitors, children, their employees, and caregivers
    44  to such building.
    45    (i) The procedures shall clearly establish the owner's retention sche-
    46  dule and guidelines for permanently destroying or anonymizing  the  data
    47  collected.
    48    (ii)  The procedures shall not limit time or place of entrance by such
    49  people authorized by the tenant or lawful occupant except  as  requested
    50  by the tenant or lawful occupant.
    51    5.  Prohibitions.  a.  No form of location tracking, including but not
    52  limited to satellite location based services, shall be included  in  any
    53  equipment,  key, or software provided to users as part of a smart access
    54  system.
    55    b. It shall be prohibited to collect through a smart access system the
    56  likeness of a minor occupant, information on the relationship status  of

        A. 48--D                            5

     1  tenants  or  lawful occupants and their guests, or to use a smart access
     2  system to collect or track information about the frequency and  time  of
     3  use  of  such  system by a tenant or lawful occupant and their guests to
     4  harass or evict a tenant or lawful occupant or for any other purpose not
     5  expressly related to the operation of the smart access system.
     6    c.  Information  that is acquired via the use of a smart access system
     7  shall not be used for any purposes other than  granting  access  to  and
     8  monitoring  building  entrances  and  shall  not be used as the basis or
     9  support for an action to evict a lessee, tenant, or lawful occupant,  or
    10  an administrative hearing seeking a change in regulatory coverage for an
    11  individual  or unit.  However, a tenant or lawful occupant may authorize
    12  their information to be used by a third party, but such a request  shall
    13  clearly state who will have access to such information, for what purpose
    14  it  will  be  used,  and  the  privacy policies which will protect their
    15  information. Under no circumstances  shall  a  lease  or  a  renewal  be
    16  contingent  upon  authorizing  such  use.  Smart  access systems may use
    17  third-party services to the extent  required  to  maintain  and  operate
    18  system  infrastructure,  including  cloud-based hosting and storage. The
    19  provider or providers of third-party infrastructure services shall  meet
    20  or exceed the privacy protections set forth in this section and shall be
    21  subject  to  the same liability for breach of any of the requirements of
    22  this section.
    23    d. Information and data collected shall not be made available  to  any
    24  third  party,  unless  authorized  as  described  in paragraph c of this
    25  subdivision, including but not limited to law enforcement, except upon a
    26  grand jury subpoena or a  court  ordered  warrant,  subpoena,  or  other
    27  authorized court ordered process.
    28    6.  Storage of information. Any information or data collected shall be
    29  stored in a secure manner to prevent unauthorized access by both employ-
    30  ees and contractors and those  unaffiliated  with  the  owner  or  their
    31  agents, except as otherwise provided in this section. Future or continu-
    32  ing  tenancy  shall  not  be conditioned upon consenting to the use of a
    33  smart access system.
    34    7. Software issues. Whenever a company that produces, makes  available
    35  or installs smart access systems discovers a security breach or critical
    36  security  vulnerability  in  their  software,  such company shall notify
    37  customers of such vulnerability within a reasonable  time  of  discovery
    38  but no later than twenty-four hours after discovery and shall make soft-
    39  ware  updates available and take any other action as may be necessary to
    40  repair the vulnerability within a reasonable time, but not  longer  than
    41  thirty  days  after  discovery.   Smart access systems and vendors shall
    42  implement and maintain  reasonable  security  procedures  and  practices
    43  appropriate  to  the  nature  of the information collected. In the event
    44  that a security breach or critical security vulnerability that  pertains
    45  to  the  embedded  software  or  firmware on the smart access systems is
    46  discovered, smart access systems and their vendors shall:
    47    a. be able to create updates to the firmware to  correct  the  vulner-
    48  abilities;
    49    b.  contractually  commit to customers that the smart access system or
    50  vendor will create updates to the embedded software or firmware to reme-
    51  dy the vulnerabilities; and
    52    c. make such security-related software or firmware  updates  available
    53  for  free  to  customers  for  the  duration of the contract between the
    54  building and smart access systems.

        A. 48--D                            6

     1    8. Waiver of rights; void. Any agreement by a lessee or  tenant  of  a
     2  dwelling  waiving or modifying their rights as set forth in this section
     3  shall be void as contrary to public policy.
     4    9.  Penalties.  a. A person who violates this section shall be subject
     5  to a civil penalty of not more  than  five  thousand  dollars  for  each
     6  violation. The attorney general may bring an action to recover the civil
     7  penalty.
     8    b.  Where an owner or their agent uses a smart access system to harass
     9  or otherwise deprive a tenant or lawful occupant of any rights available
    10  under law, such owner or agent shall be subject to a  civil  penalty  of
    11  not more than ten thousand dollars for each violation.
    12    c.  For  purposes  of  this subdivision, each day the violation occurs
    13  shall be considered a separate violation.
    14    10. Rent regulated dwellings. Installation of a  smart  access  system
    15  pursuant  to  this section in a dwelling subject to the emergency tenant
    16  protection act of nineteen hundred seventy-four, the  emergency  housing
    17  rent  control  law, the local emergency housing rent control act, or the
    18  rent stabilization law of nineteen hundred sixty-nine shall constitute a
    19  modification of services requiring the owner of such dwelling  or  their
    20  agent  to  apply  to  the  division of housing and community renewal for
    21  approval before performing such installation.  Such  installation  shall
    22  not qualify as a basis for rent reduction.
    23    11.  Exemptions.  a.  Nothing herein shall apply to multiple dwellings
    24  owned or managed by an entity subject to 42 U.S.C. § 1437  et  seq.,  or
    25  any  of its subsidiaries, or multiple dwellings that are primarily occu-
    26  pied by transient occupants for a period of less than thirty days.
    27    b. Nothing in this section shall limit the authority of  the  division
    28  of  housing  and  community  renewal  to  impose additional requirements
    29  regarding smart access systems installed in multiple dwellings for which
    30  the division is required to approve substitutions  or  modifications  of
    31  services.
    32    §  2.  The  multiple  residence law is amended by adding a new section
    33  130-a to read as follows:
    34    § 130-a. Electronic or computerized entry systems. 1. Definitions. For
    35  the purposes of this section, the following terms shall have the follow-
    36  ing meanings:
    37    (a) "Account information" means information that is used  to  grant  a
    38  user  entry  or  access to any online tools that are used to manage user
    39  accounts related to a smart access system.
    40    (b) "Authentication data" means data generated  or  collected  at  the
    41  point  of  authentication  in connection with granting a user entry to a
    42  multiple dwelling, dwelling unit of such building,  or  common  area  of
    43  such  building  through  a smart access system, except that it shall not
    44  include data generated through or collected by a video or camera  system
    45  that is used to monitor entrances but not to grant entry.
    46    (c)  "Biometric identifier information" means a physiological, biolog-
    47  ical or behavioral characteristic that is used to identify, or assist in
    48  identifying, an individual, including, but not limited to: (i) a  retina
    49  or  iris  scan,  (ii)  a fingerprint, (iii) a voiceprint, (iv) a scan or
    50  record of a palm, hand, or face geometry, (v) gait or movement patterns,
    51  or (vi) any other similar identifying characteristic that  can  be  used
    52  alone  or  in combination with each other, or with other information, to
    53  establish individual identity.
    54    (d) "Critical security vulnerability" means a  security  vulnerability
    55  that has a significant risk of resulting in an unauthorized access to an
    56  area secured by a smart access system.

        A. 48--D                            7

     1    (e)  "Reference  data"  means information against which authentication
     2  data is verified at a point of authentication by a smart  access  system
     3  in  order to grant a user entry to a multiple dwelling, dwelling unit of
     4  such building, or common area of such building.
     5    (f)  "Security breach" means any incident that results in unauthorized
     6  access of data, applications, services, networks or devices by bypassing
     7  underlying security mechanisms. A "security breach" occurs when an indi-
     8  vidual or an application illegitimately enters a  private,  confidential
     9  or unauthorized logical information technology perimeter.
    10    (g)  "Smart  access  system"  means any system that uses electronic or
    11  computerized technology, a radio frequency identification card, a mobile
    12  phone  application,  biometric  identifier  information,  or  any  other
    13  digital  technology  in  order  to  grant access to a multiple dwelling,
    14  common areas in such multiple dwelling, or  to  an  individual  dwelling
    15  unit in such multiple dwelling.
    16    (h) "Third party" means an entity that installs, operates or otherwise
    17  directly  supports a smart access system, and has ongoing access to user
    18  data, excluding any entity that solely hosts such data.
    19    (i) "User" means a tenant or lawful occupant of a  multiple  dwelling,
    20  and  any person a tenant or lawful occupant has requested, in writing or
    21  through a mobile application, be granted access to such tenant or lawful
    22  occupant's dwelling unit and such building's smart access system.
    23    2. Entry. (a) Where an owner installs or  plans  to  install  a  smart
    24  access  system on any entrance from the street, passageway, court, yard,
    25  cellar, or other common area of a multiple dwelling, such  system  shall
    26  not  rely  solely  on a web-based application to facilitate entrance but
    27  shall also include a key fob, key card,  digital  key  or  passcode  for
    28  tenant use.
    29    (b) Owners may provide various methods of entry into individual apart-
    30  ments  including a mechanical key or a smart access system of a key fob,
    31  key card or digital key, provided, however that such smart access system
    32  shall not rely solely on a web-based application.
    33    (c) Notwithstanding paragraph (a) or (b) of this  subdivision,  owners
    34  shall  provide  a  non-electronic  means of entry where requested by the
    35  tenant or lawful occupant due to a religious preference.
    36    (d) All lawful tenants and lawful occupants shall be provided  with  a
    37  key,  key  fob,  digital  key or key card at no cost to such tenants and
    38  lawful occupants. The term "lawful  occupants"  shall  include  children
    39  under  the  age  of eighteen who shall be issued a key, key fob, digital
    40  keys or key card if a parent or guardian requests such child be provided
    41  with one. Tenants and lawful occupants may also receive up to four addi-
    42  tional keys, key fobs, digital keys or key  cards  at  no  cost  to  the
    43  tenant  or  lawful  occupant  for employees or guests. The term "guests"
    44  shall include family members and friends who can reasonably be  expected
    45  to  visit  on a regular basis or visit as needed to care for the tenant,
    46  lawful occupant, or the dwelling unit if the tenant or  lawful  occupant
    47  is  away.  Employees,  including contractors, professional caregivers or
    48  other services providers, may have an expiration date  placed  on  their
    49  key,  key  card,  digital key or key fob, which may be extended upon the
    50  tenant or lawful occupant's request. Tenants  or  lawful  occupants  may
    51  request  a  new  or replacement key, key fob, digital key or key card at
    52  any time throughout the course of the tenancy. The owner or their  agent
    53  shall  provide  the  first  replacement key, key fob, digital key or key
    54  card to the tenant or lawful occupant free of charge. The cost of second
    55  and subsequent replacement cards shall not be more than what  the  owner
    56  paid for the replacement up to and not exceeding twenty-five dollars.

        A. 48--D                            8

     1    (e)  The  owner  shall not set limits on the number of keys, key fobs,
     2  digital keys or key cards a tenant or lawful occupant may request.
     3    (f) Any door that has a smart access system shall have backup power or
     4  an  alternative means of entry to ensure that the entry system continues
     5  to operate during a power  outage.  An  owner,  or  their  agent,  shall
     6  routinely inspect the backup power and shall replace according to system
     7  specifications.  Owners or their agents shall provide tenants and lawful
     8  occupants with information about whom to contact in the event  that  the
     9  tenant,  lawful  occupant or the tenant's or lawful occupant's children,
    10  guests or employees become locked out.
    11    3. Notice. Owners or their agents shall provide notice to a tenant  or
    12  lawful  occupant  at  the  time  the tenant or lawful occupant signs the
    13  lease, or when the smart access system is installed, of  the  provisions
    14  of subdivision two of this section.
    15    4.  Data  collection. (a) If a smart access system is utilized to gain
    16  entrance to a multiple dwelling, the only reference, authentication, and
    17  account information gathered by any smart access system shall be limited
    18  to account information necessary to enable the use of such smart  access
    19  system,  or  reference  data,  including  the user's name, dwelling unit
    20  number and other doors or common areas to which the user has access, the
    21  preferred method of contact for such user, information used to  grant  a
    22  user  entry  or  to access any online tools used to manage user accounts
    23  related to such building, lease information including  move-in  and,  if
    24  available move-out dates, and authentication data such as time and meth-
    25  od of access for security purposes and a photograph of access events for
    26  security  purposes. For smart access systems that rely on the collection
    27  of biometric data and which have already been installed at the time this
    28  section shall have become a law, biometric identifier information may be
    29  collected pursuant to this section in order to register  a  user  for  a
    30  smart  access  system.  No  new  smart  access  systems that rely on the
    31  collection of biometric data shall be installed  in  multiple  dwellings
    32  for three years after the effective date of this section.
    33    (i)  The owner of the multiple dwelling shall collect only the minimum
    34  data required by the technology used  in  the  smart  access  system  to
    35  effectuate  such  entrance  and protect the privacy and security of such
    36  users.
    37    (ii) The owner or agent of the owner shall not request or  retain,  in
    38  any form, the social security number of any tenant or lawful occupant as
    39  a condition of use of the smart access system.
    40    (iii)  The  owner, agent of the owner, or the vendor of a smart access
    41  system on behalf of the owner may record each time a key fob, key  card,
    42  digital  key  or  passcode  is used to enter the building, but shall not
    43  record any departures.
    44    (iv) A copy of such data may be retained for reference at the point of
    45  authentication by the smart access system.  Such reference data shall be
    46  retained only for tenants or lawful occupants or those authorized by the
    47  tenant, lawful occupant, or owner of the multiple dwelling.
    48    (v) The owner of the  multiple  dwelling  or  any  third  party  shall
    49  destroy  or anonymize authentication data collected from or generated by
    50  such smart access system within a reasonable time, but  not  later  than
    51  ninety days after the date collected.
    52    (vi) Reference data for a user shall be destroyed or anonymized within
    53  ninety  days  of  (1) the tenant or lawful occupant permanently vacating
    54  the dwelling, or (2) a request by the tenant or lawful occupant to with-
    55  draw authorization for those previously  authorized  by  the  tenant  or
    56  lawful occupant.

        A. 48--D                            9

     1    (b)  (i)  An entity shall not capture biometric identifier information
     2  of an individual to gain entrance to  a  multiple  dwelling  unless  the
     3  person  is  a  tenant  or  lawful occupant or a person authorized by the
     4  tenant or lawful occupant, and informs the individual  before  capturing
     5  the biometric identifier information; and receives their express consent
     6  to capture the biometric identifier information.
     7    (ii)  Any entity that possesses biometric identifier information of an
     8  individual that is captured to gain entrance to a multiple dwelling:
     9    (1) Shall not sell, lease or otherwise disclose the biometric  identi-
    10  fier  information  to  another  person unless pursuant to any law, grand
    11  jury subpoena or court ordered warrant, subpoena,  or  other  authorized
    12  court ordered process.
    13    (2)  Shall  store,  transmit and protect from disclosure the biometric
    14  identifier information using reasonable care and in a manner that is the
    15  same as or more protective than the manner in which the  person  stores,
    16  transmits  and  protects  confidential information the person possesses;
    17  and
    18    (3) Shall  destroy  the  biometric  identifier  information  within  a
    19  reasonable  time,  but  not  later than forty-eight hours after the date
    20  collected, except for reference data. If any prohibited  information  is
    21  collected, such as the likeness of a minor or a non-tenant, the informa-
    22  tion shall be destroyed immediately.
    23    (c)  The  owner of the multiple dwelling, or the managing agent, shall
    24  develop and provide to tenants and lawful occupants  written  procedures
    25  which  describe the process used to add persons authorized by the tenant
    26  or lawful occupant to the smart access system on a temporary  or  perma-
    27  nent  basis, such as visitors, children, their employees, and caregivers
    28  to such building.
    29    (i) The procedures shall clearly establish the owner's retention sche-
    30  dule and guidelines for permanently destroying or anonymizing  the  data
    31  collected.
    32    (ii)  The procedures shall not limit time or place of entrance by such
    33  people authorized by the tenant or lawful occupant except  as  requested
    34  by the tenant or lawful occupant.
    35    5.  Prohibitions.  (a) No form of location tracking, including but not
    36  limited to satellite location based services, shall be included  in  any
    37  equipment,  key, or software provided to users as part of a smart access
    38  system.
    39    (b) It shall be prohibited to collect through a  smart  access  system
    40  the likeness of a minor occupant, information on the relationship status
    41  of  tenants  or  lawful  occupants  and  their guests, or to use a smart
    42  access system to collect or track information about  the  frequency  and
    43  time  of  use  of  such  system by a tenant or lawful occupant and their
    44  guests to harass or evict a tenant or lawful occupant or for  any  other
    45  purpose  not  expressly  related  to  the  operation of the smart access
    46  system.
    47    (c) Information that is acquired via the use of a smart access  system
    48  shall  not  be  used  for any purposes other than granting access to and
    49  monitoring building entrances and shall not be  used  as  the  basis  or
    50  support  for an action to evict a lessee, tenant, or lawful occupant, or
    51  an administrative hearing seeking a change in regulatory coverage for an
    52  individual or unit. However, a tenant or lawful occupant  may  authorize
    53  their  information to be used by a third party, but such a request shall
    54  clearly state who will have access to such information, for what purpose
    55  it will be used, and the  privacy  policies  which  will  protect  their
    56  information.  Under  no  circumstances  shall  a  lease  or a renewal be

        A. 48--D                           10

     1  contingent upon authorizing such  use.  Smart  access  systems  may  use
     2  third-party  services  to  the  extent  required to maintain and operate
     3  system infrastructure, including cloud-based hosting  and  storage.  The
     4  provider  or providers of third-party infrastructure services shall meet
     5  or exceed the privacy protections set forth in this section and shall be
     6  subject to the same liability for breach of any of the  requirements  of
     7  this section.
     8    (d)  Information and data collected shall not be made available to any
     9  third party, unless authorized as described in  paragraph  (c)  of  this
    10  subdivision, including but not limited to law enforcement, except upon a
    11  grand  jury  subpoena  or  a  court  ordered warrant, subpoena, or other
    12  authorized court ordered process.
    13    6. Storage of information. Any information or data collected shall  be
    14  stored in a secure manner to prevent unauthorized access by both employ-
    15  ees  and  contractors  and  those  unaffiliated  with the owner or their
    16  agents, except as otherwise provided in this section. Future or continu-
    17  ing tenancy shall not be conditioned upon consenting to  the  use  of  a
    18  smart access system.
    19    7.  Software issues. Whenever a company that produces, makes available
    20  or installs smart access systems discovers a security breach or critical
    21  security vulnerability in their  software,  such  company  shall  notify
    22  customers  of  such  vulnerability within a reasonable time of discovery
    23  but no later than twenty-four hours after discovery and shall make soft-
    24  ware updates available and take any other action as may be necessary  to
    25  repair  the  vulnerability within a reasonable time, but not longer than
    26  thirty days after discovery. Smart  access  systems  and  vendors  shall
    27  implement  and  maintain  reasonable  security  procedures and practices
    28  appropriate to the nature of the information  collected.  In  the  event
    29  that  a security breach or critical security vulnerability that pertains
    30  to the embedded software or firmware on  the  smart  access  systems  is
    31  discovered, smart access systems and their vendors shall:
    32    (a)  be  able to create updates to the firmware to correct the vulner-
    33  abilities;
    34    (b) contractually commit to customers that the smart access system  or
    35  vendor will create updates to the embedded software or firmware to reme-
    36  dy the vulnerabilities; and
    37    (c)  make such security-related software or firmware updates available
    38  for free to customers for the  duration  of  the  contract  between  the
    39  building and smart access systems.
    40    8.  Waiver  of  rights; void. Any agreement by a lessee or tenant of a
    41  dwelling waiving or modifying their rights as set forth in this  section
    42  shall be void as contrary to public policy.
    43    9.  Penalties. (a) A person who violates this section shall be subject
    44  to a civil penalty of not more  than  five  thousand  dollars  for  each
    45  violation.    The  attorney  general  may bring an action to recover the
    46  civil penalty. An individual injured by a violation of this section  may
    47  bring  an  action  to recover damages. A court may also award attorneys'
    48  fees to a prevailing plaintiff.
    49    (b) Where an owner or their agent uses a smart access system to harass
    50  or otherwise deprive a tenant or lawful occupant of any rights available
    51  under law, such owner or agent shall be subject to a  civil  penalty  of
    52  not more than ten thousand dollars for each violation.
    53    (c)  For  purposes  of this subdivision, each day the violation occurs
    54  shall be considered a separate violation.
    55    10. Rent regulated dwellings. Installation of a  smart  access  system
    56  pursuant  to  this section in a dwelling subject to the emergency tenant

        A. 48--D                           11

     1  protection act of nineteen hundred seventy-four, the  emergency  housing
     2  rent  control  law, the local emergency housing rent control act, or the
     3  rent stabilization law of nineteen hundred sixty-nine shall constitute a
     4  modification  of  services requiring the owner of such dwelling or their
     5  agent to apply to the division of  housing  and  community  renewal  for
     6  approval  before  performing  such installation. Such installation shall
     7  not qualify as a basis for rent reduction.
     8    11. Exemptions. (a) Nothing herein shall apply to  multiple  dwellings
     9  owned  or  managed  by an entity subject to 42 U.S.C. § 1437 et seq., or
    10  any of its subsidiaries, or multiple dwellings that are primarily  occu-
    11  pied by transient occupants for a period of less than thirty days.
    12    (b)  Nothing in this section shall limit the authority of the division
    13  of housing and  community  renewal  to  impose  additional  requirements
    14  regarding smart access systems installed in multiple dwellings for which
    15  the  division  is  required to approve substitutions or modifications of
    16  services.
    17    § 3. Severability. If any provision of this act, or any application of
    18  any provision of this act, is held to be invalid, that shall not  affect
    19  the  validity or effectiveness of any other provision of this act, or of
    20  any  other application of any provision of this act, which can  be given
    21  effect  without  that  provision  or  application;  and to that end, the
    22  provisions and applications of this act are severable.
    23    § 4. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law.
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