STATE OF NEW YORK ________________________________________________________________________ 2078--B Cal. No. 1016 2023-2024 Regular Sessions IN SENATE January 18, 2023 ___________ Introduced by Sens. KAVANAGH, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- recommitted to the Committee on Housing, Construction and Community Development in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in 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. 15 c. "Biometric identifier information" means a physiological, biolog- 16 ical or behavioral characteristic that is used to identify, or assist in 17 identifying, an individual, including, but not limited to: (i) a retina EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00692-11-4S. 2078--B 2 1 or iris scan, (ii) a fingerprint, (iii) a voiceprint, (iv) a scan or 2 record of a palm, hand, or face geometry, (v) gait or movement patterns, 3 or (vi) any other similar identifying characteristic that can be used 4 alone or in combination with each other, or with other information, to 5 establish individual identity. 6 d. "Critical security vulnerability" means a security vulnerability 7 that has a significant risk of resulting in an unauthorized access to an 8 area secured by a smart access system. 9 e. "Reference data" means information against which authentication 10 data is verified at the point of authentication by a smart access system 11 in order to grant a user entry to a class A multiple dwelling, dwelling 12 unit of such building, or common area of such building. 13 f. "Security breach" means any incident that results in unauthorized 14 access of data, applications, services, networks or devices by bypassing 15 underlying security mechanisms. A "security breach" occurs when an indi- 16 vidual or an application illegitimately enters a private, confidential 17 or unauthorized logical information technology perimeter. 18 g. "Smart access system" means any system that uses electronic or 19 computerized technology, a radio frequency identification card, a mobile 20 phone application, biometric identifier information, or any other 21 digital technology in order to grant access to a class A multiple dwell- 22 ing, common areas in such multiple dwelling, or to an individual dwell- 23 ing unit in such multiple dwelling. 24 h. "Third party" means an entity that installs, operates or otherwise 25 directly supports a smart access system, and has ongoing access to user 26 data, excluding any entity that solely hosts such data. 27 i. "User" means a tenant or lawful occupant of a class A multiple 28 dwelling, and any person a tenant or lawful occupant has requested, in 29 writing or through a mobile application, be granted access to such 30 tenant or lawful occupant's dwelling unit and such building's smart 31 access system. 32 2. Entry. a. Where an owner installs or plans to install a smart 33 access system on any entrance from the street, passageway, court, yard, 34 cellar, or other common area of a class A multiple dwelling, such system 35 shall not rely solely on a web-based application to facilitate entrance 36 but shall also include a key fob, key card, digital key or passcode for 37 tenant use. 38 b. Owners may provide various methods of entry into individual apart- 39 ments including a mechanical key or a smart access system of a key fob, 40 key card or digital key, provided, however that such smart access system 41 shall not rely solely on a web-based application. 42 c. Notwithstanding paragraph a or b of this subdivision, owners shall 43 provide a non-electronic means of entry where requested by the tenant or 44 lawful occupant due to a religious preference. 45 d. All lawful tenants and lawful occupants shall be provided with a 46 key, key fob, digital key or key card at no cost to such tenants and 47 lawful occupants. The term "lawful occupants" shall include children 48 under the age of eighteen who shall be issued a key, key fob, digital 49 key or key card if a parent or guardian requests such child be provided 50 with one. Tenants and lawful occupants may also receive up to four addi- 51 tional keys, key fobs, digital keys or key cards at no cost to the 52 tenant or lawful occupant for employees or guests. The term "guests" 53 shall include family members and friends who can reasonably be expected 54 to visit on a regular basis or visit as needed to care for the tenant, 55 lawful occupant, or the dwelling unit if the tenant or lawful occupant 56 is away. Employees, including contractors, professional caregivers orS. 2078--B 3 1 other services providers, may have an expiration date placed on their 2 key, key card, digital key or key fob, which may be extended upon the 3 tenant's or lawful occupant's request. Tenants or lawful occupants may 4 request a new or replacement key, key fob, digital key or key card at 5 any time throughout the course of the tenancy or occupancy. The owner 6 or their agent shall provide the first replacement key, key fob, digital 7 key or key card to the tenant or lawful occupant free of charge. The 8 cost of second and subsequent replacement cards shall not be more than 9 what the owner paid for the replacement up to and not exceeding twenty- 10 five dollars. 11 e. The owner shall not set limits on the number of keys, key fobs, 12 digital keys or key cards a tenant or lawful occupant may request. 13 f. Any door that has a smart access system shall have backup power or 14 an alternative means of entry to ensure that the entry system continues 15 to operate during a power outage. An owner, or their agent, shall 16 routinely inspect the backup power and shall replace according to system 17 specifications. Owners or their agents shall provide tenants and lawful 18 occupants with information about whom to contact in the event that the 19 tenant, lawful occupant or the tenant's or lawful occupant's children, 20 guests or employees become locked out. 21 3. Notice. Owners or their agents shall provide notice to a tenant or 22 lawful occupant at the time the tenant or lawful occupant signs the 23 lease, or when the smart access system is installed, of the provisions 24 of subdivision two of this section. 25 4. Data collection. a. If a smart access system is utilized to gain 26 entrance to a class A multiple dwelling, the only reference, authentica- 27 tion, and account information gathered by any smart access system shall 28 be limited to account information necessary to enable the use of such 29 smart access system, or reference data, including the user's name, 30 dwelling unit number and other doors or common areas to which the user 31 has access, the preferred method of contact for such user, information 32 used to grant a user entry or to access any online tools used to manage 33 user accounts related to such building, lease information including 34 move-in and, if available move-out dates, and authentication data such 35 as time and method of access for security purposes and a photograph of 36 access events for security purposes. For smart access systems that rely 37 on the collection of biometric data and which have already been 38 installed at the time this section shall have become a law, biometric 39 identifier information may be collected pursuant to this section in 40 order to register a user for a smart access system. No new smart access 41 systems that rely on the collection of biometric data shall be installed 42 in class A multiple dwellings for three years after the effective date 43 of this section. 44 (i) The owner of the multiple dwelling may collect only the minimum 45 data required by the technology used in the smart access system to 46 effectuate such entrance and protect the privacy and security of such 47 users. 48 (ii) The owner or agent of the owner shall not request or retain, in 49 any form, the social security number of any tenant or lawful occupant as 50 a condition of use of the smart access system. 51 (iii) The owner, agent of the owner, or the vendor of a smart access 52 system on behalf of the owner may record each time a key fob, key card, 53 digital key or passcode is used to enter the building, but shall not 54 record any departures. 55 (iv) A copy of such data may be retained for reference at the point of 56 authentication by the smart access system. Such reference data shall beS. 2078--B 4 1 retained only for tenants or lawful occupants or those authorized by 2 the tenant, lawful occupant, or owner of the multiple dwelling. 3 (v) The owner of the multiple dwelling or any third party shall 4 destroy or anonymize authentication data collected from or generated by 5 such smart access system within a reasonable time, but not later than 6 ninety days after the date collected. 7 (vi) Reference data for a user shall be destroyed or anonymized within 8 ninety days of (1) the tenant or lawful occupant permanently vacating 9 the dwelling, or (2) a request by the tenant or lawful occupant to with- 10 draw authorization for those previously authorized by the tenant or 11 lawful occupant. 12 b. (i) An entity shall not capture biometric identifier information of 13 an individual to gain entrance to a class A multiple dwelling unless the 14 person is a tenant or lawful occupant or a person authorized by the 15 tenant or lawful occupant, and informs the individual before capturing 16 the biometric identifier information; and receives their express consent 17 to capture the biometric identifier information. 18 (ii) Any entity that possesses biometric identifier information of an 19 individual that is captured to gain entrance to a class A multiple 20 dwelling: 21 (1) Shall not sell, lease or otherwise disclose the biometric identi- 22 fier information to another person unless pursuant to any law, grand 23 jury subpoena or court ordered warrant, subpoena, or other authorized 24 court ordered process. 25 (2) Shall store, transmit and protect from disclosure the biometric 26 identifier information using reasonable care and in a manner that is the 27 same as or more protective than the manner in which the person stores, 28 transmits and protects confidential information the person possesses; 29 and 30 (3) Shall destroy the biometric identifier information within a 31 reasonable time, but not later than forty-eight hours after the date 32 collected, except for reference data. If any prohibited information is 33 collected, such as the likeness of a minor or a non-tenant, the informa- 34 tion shall be destroyed immediately. 35 c. The owner of the multiple dwelling, or the managing agent, shall 36 develop and provide to tenants and lawful occupants written procedures 37 which describe the process used to add persons authorized by the tenant 38 or lawful occupant to the smart access system on a temporary or perma- 39 nent basis, such as visitors, children, their employees, and caregivers 40 to such building. 41 (i) The procedures shall clearly establish the owner's retention sche- 42 dule and guidelines for permanently destroying or anonymizing the data 43 collected. 44 (ii) The procedures shall not limit time or place of entrance by such 45 people authorized by the tenant or lawful occupant except as requested 46 by the tenant or lawful occupant. 47 5. Prohibitions. a. No form of location tracking, including but not 48 limited to satellite location based services, shall be included in any 49 equipment, key, or software provided to users as part of a smart access 50 system. 51 b. It shall be prohibited to collect through a smart access system the 52 likeness of a minor occupant, information on the relationship status of 53 tenants or lawful occupants and their guests, or to use a smart access 54 system to collect or track information about the frequency and time of 55 use of such system by a tenant or lawful occupant and their guests toS. 2078--B 5 1 harass or evict a tenant or lawful occupant or for any other purpose not 2 expressly related to the operation of the smart access system. 3 c. Information that is acquired via the use of a smart access system 4 shall not be used for any purposes other than granting access to and 5 monitoring building entrances and shall not be used as the basis or 6 support for an action to evict a lessee, tenant, or lawful occupant, or 7 an administrative hearing seeking a change in regulatory coverage for an 8 individual or unit. However, a tenant or lawful occupant may authorize 9 their information to be used by a third party, but such a request shall 10 clearly state who will have access to such information, for what purpose 11 it will be used, and the privacy policies which will protect their 12 information. Under no circumstances shall a lease or a renewal be 13 contingent upon authorizing such use. Smart access systems may use 14 third-party services to the extent required to maintain and operate 15 system infrastructure, including cloud-based hosting and storage. The 16 provider or providers of third-party infrastructure services shall meet 17 or exceed the privacy protections set forth in this section and shall be 18 subject to the same liability for breach of any of the requirements of 19 this section. 20 d. Information and data collected shall not be made available to any 21 third party, unless authorized as described in paragraph c of this 22 subdivision, including but not limited to law enforcement, except upon a 23 grand jury subpoena or a court ordered warrant, subpoena, or other 24 authorized court ordered process. 25 6. Storage of information. Any information or data collected shall be 26 stored in a secure manner to prevent unauthorized access by both employ- 27 ees and contractors and those unaffiliated with the owner or their 28 agents, except as otherwise provided in this section. Future or continu- 29 ing tenancy shall not be conditioned upon consenting to the use of a 30 smart access system. 31 7. Software issues. Whenever a company that produces, makes available 32 or installs smart access systems discovers a security breach or critical 33 security vulnerability in their software, such company shall notify 34 customers of such vulnerability within a reasonable time of discovery 35 but no later than twenty-four hours after discovery and shall make soft- 36 ware updates available and take any other action as may be necessary to 37 repair the vulnerability within a reasonable time, but not longer than 38 thirty days after discovery. Smart access systems and vendors shall 39 implement and maintain reasonable security procedures and practices 40 appropriate to the nature of the information collected. In the event 41 that a security breach or critical security vulnerability that pertains 42 to the embedded software or firmware on the smart access systems is 43 discovered, smart access systems and their vendors shall: 44 a. be able to create updates to the firmware to correct the vulner- 45 abilities; 46 b. contractually commit to customers that the smart access system or 47 vendor will create updates to the embedded software or firmware to reme- 48 dy the vulnerabilities; and 49 c. make such security-related software or firmware updates available 50 for free to customers for the duration of the contract between the 51 building and smart access systems. 52 8. Waiver of rights; void. Any agreement by a lessee or tenant of a 53 dwelling waiving or modifying their rights as set forth in this section 54 shall be void as contrary to public policy. 55 9. Penalties. a. A person who violates this section shall be subject 56 to a civil penalty of not more than five thousand dollars for eachS. 2078--B 6 1 violation. The attorney general may bring an action to recover the civil 2 penalty. 3 b. Where an owner or their agent uses a smart access system to harass 4 or otherwise deprive a tenant or lawful occupant of any rights available 5 under law, such owner or agent shall be subject to a civil penalty of 6 not more than ten thousand dollars for each violation. 7 c. For purposes of this subdivision, each day the violation occurs 8 shall be considered a separate violation. 9 10. Rent regulated dwellings. Installation of a smart access system 10 pursuant to this section in a dwelling subject to the emergency tenant 11 protection act of nineteen hundred seventy-four, the emergency housing 12 rent control law, the local emergency housing rent control act, or the 13 rent stabilization law of nineteen hundred sixty-nine shall constitute a 14 modification of services requiring the owner of such dwelling or their 15 agent to apply to the division of housing and community renewal for 16 approval before performing such installation. Such installation shall 17 not qualify as a basis for rent reduction. 18 11. Exemptions. a. Nothing herein shall apply to multiple dwellings 19 owned or managed by an entity subject to 42 U.S.C. § 1437 et seq., or 20 any of its subsidiaries, or multiple dwellings that are primarily occu- 21 pied by transient occupants for a period of less than thirty days. 22 b. Nothing in this section shall limit the authority of the division 23 of housing and community renewal to impose additional requirements 24 regarding smart access systems installed in multiple dwellings for which 25 the division is required to approve substitutions or modifications of 26 services. 27 § 2. The multiple residence law is amended by adding a new section 28 130-a to read as follows: 29 § 130-a. Electronic or computerized entry systems. 1. Definitions. For 30 the purposes of this section, the following terms shall have the follow- 31 ing meanings: 32 (a) "Account information" means information that is used to grant a 33 user entry or access to any online tools that are used to manage user 34 accounts related to a smart access system. 35 (b) "Authentication data" means data generated or collected at the 36 point of authentication in connection with granting a user entry to a 37 multiple dwelling, dwelling unit of such building, or common area of 38 such building through a smart access system, except that it shall not 39 include data generated through or collected by a video or camera system 40 that is used to monitor entrances but not to grant entry. 41 (c) "Biometric identifier information" means a physiological, biolog- 42 ical or behavioral characteristic that is used to identify, or assist in 43 identifying, an individual, including, but not limited to: (i) a retina 44 or iris scan, (ii) a fingerprint, (iii) a voiceprint, (iv) a scan or 45 record of a palm, hand, or face geometry, (v) gait or movement patterns, 46 or (vi) any other similar identifying characteristic that can be used 47 alone or in combination with each other, or with other information, to 48 establish individual identity. 49 (d) "Critical security vulnerability" means a security vulnerability 50 that has a significant risk of resulting in an unauthorized access to an 51 area secured by a smart access system. 52 (e) "Reference data" means information against which authentication 53 data is verified at a point of authentication by a smart access system 54 in order to grant a user entry to a multiple dwelling, dwelling unit of 55 such building, or common area of such building.S. 2078--B 7 1 (f) "Security breach" means any incident that results in unauthorized 2 access of data, applications, services, networks or devices by bypassing 3 underlying security mechanisms. A "security breach" occurs when an indi- 4 vidual or an application illegitimately enters a private, confidential 5 or unauthorized logical information technology perimeter. 6 (g) "Smart access system" means any system that uses electronic or 7 computerized technology, a radio frequency identification card, a mobile 8 phone application, biometric identifier information, or any other 9 digital technology in order to grant access to a multiple dwelling, 10 common areas in such multiple dwelling, or to an individual dwelling 11 unit in such multiple dwelling. 12 (h) "Third party" means an entity that installs, operates or otherwise 13 directly supports a smart access system, and has ongoing access to user 14 data, excluding any entity that solely hosts such data. 15 (i) "User" means a tenant or lawful occupant of a multiple dwelling, 16 and any person a tenant or lawful occupant has requested, in writing or 17 through a mobile application, be granted access to such tenant or lawful 18 occupant's dwelling unit and such building's smart access system. 19 2. Entry. (a) Where an owner installs or plans to install a smart 20 access system on any entrance from the street, passageway, court, yard, 21 cellar, or other common area of a multiple dwelling, such system shall 22 not rely solely on a web-based application to facilitate entrance but 23 shall also include a key fob, key card, digital key or passcode for 24 tenant use. 25 (b) Owners may provide various methods of entry into individual apart- 26 ments including a mechanical key or a smart access system of a key fob, 27 key card or digital key, provided, however that such smart access system 28 shall not rely solely on a web-based application. 29 (c) Notwithstanding paragraph (a) or (b) of this subdivision, owners 30 shall provide a non-electronic means of entry where requested by the 31 tenant or lawful occupant due to a religious preference. 32 (d) All lawful tenants and lawful occupants shall be provided with a 33 key, key fob, digital key or key card at no cost to such tenants and 34 lawful occupants. The term "lawful occupants" shall include children 35 under the age of eighteen who shall be issued a key, key fob, digital 36 keys or key card if a parent or guardian requests such child be provided 37 with one. Tenants and lawful occupants may also receive up to four addi- 38 tional keys, key fobs, digital keys or key cards at no cost to the 39 tenant or lawful occupant for employees or guests. The term "guests" 40 shall include family members and friends who can reasonably be expected 41 to visit on a regular basis or visit as needed to care for the tenant, 42 lawful occupant, or the dwelling unit if the tenant or lawful occupant 43 is away. Employees, including contractors, professional caregivers or 44 other services providers, may have an expiration date placed on their 45 key, key card, digital key or key fob, which may be extended upon the 46 tenant or lawful occupant's request. Tenants or lawful occupants may 47 request a new or replacement key, key fob, digital key or key card at 48 any time throughout the course of the tenancy. The owner or their agent 49 shall provide the first replacement key, key fob, digital key or key 50 card to the tenant or lawful occupant free of charge. The cost of second 51 and subsequent replacement cards shall not be more than what the owner 52 paid for the replacement up to and not exceeding twenty-five dollars. 53 (e) The owner shall not set limits on the number of keys, key fobs, 54 digital keys or key cards a tenant or lawful occupant may request. 55 (f) Any door that has a smart access system shall have backup power or 56 an alternative means of entry to ensure that the entry system continuesS. 2078--B 8 1 to operate during a power outage. An owner, or their agent, shall 2 routinely inspect the backup power and shall replace according to system 3 specifications. Owners or their agents shall provide tenants and lawful 4 occupants with information about whom to contact in the event that the 5 tenant, lawful occupant or the tenant's or lawful occupant's children, 6 guests or employees become locked out. 7 3. Notice. Owners or their agents shall provide notice to a tenant or 8 lawful occupant at the time the tenant or lawful occupant signs the 9 lease, or when the smart access system is installed, of the provisions 10 of subdivision two of this section. 11 4. Data collection. (a) If a smart access system is utilized to gain 12 entrance to a multiple dwelling, the only reference, authentication, and 13 account information gathered by any smart access system shall be limited 14 to account information necessary to enable the use of such smart access 15 system, or reference data, including the user's name, dwelling unit 16 number and other doors or common areas to which the user has access, the 17 preferred method of contact for such user, information used to grant a 18 user entry or to access any online tools used to manage user accounts 19 related to such building, lease information including move-in and, if 20 available move-out dates, and authentication data such as time and meth- 21 od of access for security purposes and a photograph of access events for 22 security purposes. For smart access systems that rely on the collection 23 of biometric data and which have already been installed at the time this 24 section shall have become a law, biometric identifier information may be 25 collected pursuant to this section in order to register a user for a 26 smart access system. No new smart access systems that rely on the 27 collection of biometric data shall be installed in multiple dwellings 28 for three years after the effective date of this section. 29 (i) The owner of the multiple dwelling shall collect only the minimum 30 data required by the technology used in the smart access system to 31 effectuate such entrance and protect the privacy and security of such 32 users. 33 (ii) The owner or agent of the owner shall not request or retain, in 34 any form, the social security number of any tenant or lawful occupant as 35 a condition of use of the smart access system. 36 (iii) The owner, agent of the owner, or the vendor of a smart access 37 system on behalf of the owner may record each time a key fob, key card, 38 digital key or passcode is used to enter the building, but shall not 39 record any departures. 40 (iv) A copy of such data may be retained for reference at the point of 41 authentication by the smart access system. Such reference data shall be 42 retained only for tenants or lawful occupants or those authorized by the 43 tenant, lawful occupant, or owner of the multiple dwelling. 44 (v) The owner of the multiple dwelling or any third party shall 45 destroy or anonymize authentication data collected from or generated by 46 such smart access system within a reasonable time, but not later than 47 ninety days after the date collected. 48 (vi) Reference data for a user shall be destroyed or anonymized within 49 ninety days of (1) the tenant or lawful occupant permanently vacating 50 the dwelling, or (2) a request by the tenant or lawful occupant to with- 51 draw authorization for those previously authorized by the tenant or 52 lawful occupant. 53 (b) (i) An entity shall not capture biometric identifier information 54 of an individual to gain entrance to a multiple dwelling unless the 55 person is a tenant or lawful occupant or a person authorized by the 56 tenant or lawful occupant, and informs the individual before capturingS. 2078--B 9 1 the biometric identifier information; and receives their express consent 2 to capture the biometric identifier information. 3 (ii) Any entity that possesses biometric identifier information of an 4 individual that is captured to gain entrance to a multiple dwelling: 5 (1) Shall not sell, lease or otherwise disclose the biometric identi- 6 fier information to another person unless pursuant to any law, grand 7 jury subpoena or court ordered warrant, subpoena, or other authorized 8 court ordered process. 9 (2) Shall store, transmit and protect from disclosure the biometric 10 identifier information using reasonable care and in a manner that is the 11 same as or more protective than the manner in which the person stores, 12 transmits and protects confidential information the person possesses; 13 and 14 (3) Shall destroy the biometric identifier information within a 15 reasonable time, but not later than forty-eight hours after the date 16 collected, except for reference data. If any prohibited information is 17 collected, such as the likeness of a minor or a non-tenant, the informa- 18 tion shall be destroyed immediately. 19 (c) The owner of the multiple dwelling, or the managing agent, shall 20 develop and provide to tenants and lawful occupants written procedures 21 which describe the process used to add persons authorized by the tenant 22 or lawful occupant to the smart access system on a temporary or perma- 23 nent basis, such as visitors, children, their employees, and caregivers 24 to such building. 25 (i) The procedures shall clearly establish the owner's retention sche- 26 dule and guidelines for permanently destroying or anonymizing the data 27 collected. 28 (ii) The procedures shall not limit time or place of entrance by such 29 people authorized by the tenant or lawful occupant except as requested 30 by the tenant or lawful occupant. 31 5. Prohibitions. (a) No form of location tracking, including but not 32 limited to satellite location based services, shall be included in any 33 equipment, key, or software provided to users as part of a smart access 34 system. 35 (b) It shall be prohibited to collect through a smart access system 36 the likeness of a minor occupant, information on the relationship status 37 of tenants or lawful occupants and their guests, or to use a smart 38 access system to collect or track information about the frequency and 39 time of use of such system by a tenant or lawful occupant and their 40 guests to harass or evict a tenant or lawful occupant or for any other 41 purpose not expressly related to the operation of the smart access 42 system. 43 (c) Information that is acquired via the use of a smart access system 44 shall not be used for any purposes other than granting access to and 45 monitoring building entrances and shall not be used as the basis or 46 support for an action to evict a lessee, tenant, or lawful occupant, or 47 an administrative hearing seeking a change in regulatory coverage for an 48 individual or unit. However, a tenant or lawful occupant may authorize 49 their information to be used by a third party, but such a request shall 50 clearly state who will have access to such information, for what purpose 51 it will be used, and the privacy policies which will protect their 52 information. Under no circumstances shall a lease or a renewal be 53 contingent upon authorizing such use. Smart access systems may use 54 third-party services to the extent required to maintain and operate 55 system infrastructure, including cloud-based hosting and storage. The 56 provider or providers of third-party infrastructure services shall meetS. 2078--B 10 1 or exceed the privacy protections set forth in this section and shall be 2 subject to the same liability for breach of any of the requirements of 3 this section. 4 (d) Information and data collected shall not be made available to any 5 third party, unless authorized as described in paragraph (c) of this 6 subdivision, including but not limited to law enforcement, except upon a 7 grand jury subpoena or a court ordered warrant, subpoena, or other 8 authorized court ordered process. 9 6. Storage of information. Any information or data collected shall be 10 stored in a secure manner to prevent unauthorized access by both employ- 11 ees and contractors and those unaffiliated with the owner or their 12 agents, except as otherwise provided in this section. Future or continu- 13 ing tenancy shall not be conditioned upon consenting to the use of a 14 smart access system. 15 7. Software issues. Whenever a company that produces, makes available 16 or installs smart access systems discovers a security breach or critical 17 security vulnerability in their software, such company shall notify 18 customers of such vulnerability within a reasonable time of discovery 19 but no later than twenty-four hours after discovery and shall make soft- 20 ware updates available and take any other action as may be necessary to 21 repair the vulnerability within a reasonable time, but not longer than 22 thirty days after discovery. Smart access systems and vendors shall 23 implement and maintain reasonable security procedures and practices 24 appropriate to the nature of the information collected. In the event 25 that a security breach or critical security vulnerability that pertains 26 to the embedded software or firmware on the smart access systems is 27 discovered, smart access systems and their vendors shall: 28 (a) be able to create updates to the firmware to correct the vulner- 29 abilities; 30 (b) contractually commit to customers that the smart access system or 31 vendor will create updates to the embedded software or firmware to reme- 32 dy the vulnerabilities; and 33 (c) make such security-related software or firmware updates available 34 for free to customers for the duration of the contract between the 35 building and smart access systems. 36 8. Waiver of rights; void. Any agreement by a lessee or tenant of a 37 dwelling waiving or modifying their rights as set forth in this section 38 shall be void as contrary to public policy. 39 9. Penalties. (a) A person who violates this section shall be subject 40 to a civil penalty of not more than five thousand dollars for each 41 violation. The attorney general may bring an action to recover the 42 civil penalty. An individual injured by a violation of this section may 43 bring an action to recover damages. A court may also award attorneys' 44 fees to a prevailing plaintiff. 45 (b) Where an owner or their agent uses a smart access system to harass 46 or otherwise deprive a tenant or lawful occupant of any rights available 47 under law, such owner or agent shall be subject to a civil penalty of 48 not more than ten thousand dollars for each violation. 49 (c) For purposes of this subdivision, each day the violation occurs 50 shall be considered a separate violation. 51 10. Rent regulated dwellings. Installation of a smart access system 52 pursuant to this section in a dwelling subject to the emergency tenant 53 protection act of nineteen hundred seventy-four, the emergency housing 54 rent control law, the local emergency housing rent control act, or the 55 rent stabilization law of nineteen hundred sixty-nine shall constitute a 56 modification of services requiring the owner of such dwelling or theirS. 2078--B 11 1 agent to apply to the division of housing and community renewal for 2 approval before performing such installation. Such installation shall 3 not qualify as a basis for rent reduction. 4 11. Exemptions. (a) Nothing herein shall apply to multiple dwellings 5 owned or managed by an entity subject to 42 U.S.C. § 1437 et seq., or 6 any of its subsidiaries, or multiple dwellings that are primarily occu- 7 pied by transient occupants for a period of less than thirty days. 8 (b) Nothing in this section shall limit the authority of the division 9 of housing and community renewal to impose additional requirements 10 regarding smart access systems installed in multiple dwellings for which 11 the division is required to approve substitutions or modifications of 12 services. 13 § 3. Severability. If any provision of this act, or any application of 14 any provision of this act, is held to be invalid, that shall not affect 15 the validity or effectiveness of any other provision of this act, or of 16 any other application of any provision of this act, which can be given 17 effect without that provision or application; and to that end, the 18 provisions and applications of this act are severable. 19 § 4. This act shall take effect on the one hundred eightieth day after 20 it shall have become a law.