Bill Text: NY A01725 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires certain businesses to offer identity theft prevention and mitigation services in the case of a security breach; exempts businesses under financial hardship.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2024-01-03 - referred to consumer affairs and protection [A01725 Detail]

Download: New_York-2023-A01725-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1725

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 20, 2023
                                       ___________

        Introduced  by  M. of A. DINOWITZ, DAVILA, SIMON, GLICK -- read once and
          referred to the Committee on Consumer Affairs and Protection

        AN ACT to amend the general  business  law,  in  relation  to  requiring
          certain  businesses  to offer identity theft prevention and mitigation
          services in the case 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.  Subdivision  10 of section 899-aa of the general business
     2  law, as renumbered by chapter 117 of the laws of 2019, is renumbered  to
     3  be subdivision 11 and a new subdivision 10 is added to read as follows:
     4    10. (a) Where a security breach from a person or business other than a
     5  consumer  credit reporting agency includes a social security number, and
     6  that person or business is required to provide notice under  subdivision
     7  two  of  this section, that person or business shall offer each resident
     8  of this state whose social security number was disclosed in  the  breach
     9  of  security  or  is  reasonably  believed to have been disclosed in the
    10  breach of security, reasonable credit report monitoring, identity  theft
    11  prevention  services  and,  if  applicable,  identity  theft  mitigation
    12  services at no cost to said resident for a period of not less than twen-
    13  ty-four months. The disclosure  required  by  subdivision  two  of  this
    14  section  shall  include  information  for any resident of New York state
    15  whose social security number was disclosed as a result of a data  breach
    16  to  obtain  free,  reasonable  credit  report monitoring, identity theft
    17  prevention  services  and,  if  applicable,  identity  theft  mitigation
    18  services as described in this section.
    19    (b)  The  requirement  to provide twenty-four months of identity theft
    20  mitigation services shall not apply to any individual  person  or  small
    21  business  as  defined  in section one hundred thirty-one of the economic
    22  development law that can demonstrate a financial hardship directly owing
    23  to such compliance. A request for a financial hardship waiver  shall  be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00909-01-3
        A. 1725                             2

     1  made  to  the  commissioner of the department of financial services on a
     2  form prescribed by the department of financial services.
     3    § 2. This act shall take effect on the one hundred eightieth day after
     4  it shall have become a law.  Effective immediately, the addition, amend-
     5  ment and/or repeal of any rule or regulation necessary for the implemen-
     6  tation  of  this act on its effective date are authorized to be made and
     7  completed on or before such effective date.