Bill Text: NY S03657 | 2017-2018 | General Assembly | Introduced


Bill Title: Establishes the New York state online privacy act; establishes the Office of State Online Privacy Protection and Internet Safety; establishes the New York State Online Accounts and Social Media Privacy Act; establishes the requirements for use and destruction of online personal and private information; includes definitions, requirements, specifications for minors, responsibilities, liability and enforcement.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO FINANCE [S03657 Detail]

Download: New_York-2017-S03657-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3657
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 25, 2017
                                       ___________
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Finance
        AN ACT to amend the executive law  and  the  general  business  law,  in
          relation to the New York state online privacy act
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act may be known and cited  as  the  "New
     2  York state online privacy act".
     3    § 2. The executive law is amended by adding a new article 10-A to read
     4  as follows:
     5                                ARTICLE 10-A
     6           OFFICE OF ONLINE PRIVACY PROTECTION AND INTERNET SAFETY
     7  Section 205.   Office  of online privacy protection and internet safety;
     8                   created.
     9          205-a. Administration.
    10          205-b. Online privacy protection and  internet  safety  advisory
    11                   committee.
    12          205-c. Responsibilities.
    13          205-d. Construction.
    14          205-e. Report.
    15    §  205.  Office  of  online  privacy  protection  and internet safety;
    16  created. The office of online privacy protection and internet safety  is
    17  hereby  created  in  the  executive department. Its purposes shall be to
    18  promote and protect the online privacy and internet safety  of  personal
    19  information of individuals and private businesses by receiving, address-
    20  ing,  referring,  and  mediating  complaints;  developing  education and
    21  outreach programs, and disseminating  model  privacy  policies;  and  by
    22  coordinating  the activities of state agencies performing online privacy
    23  protection and internet safety functions.
    24    § 205-a. Administration. The office shall be headed by a  commissioner
    25  of  online privacy protection and internet safety who shall be appointed
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04247-01-7

        S. 3657                             2
     1  by the governor by and with the advice and consent of  the  senate.  The
     2  commissioner  shall possess such rights, powers and duties in connection
     3  with privacy protection and internet safety as are expressed or  reason-
     4  ably  implied  by  this  article  or other applicable laws of this state
     5  relating to online privacy and internet safety. The  commissioner  shall
     6  consult  with the online privacy protection and internet safety advisory
     7  committee in developing policies  and  programs,  and  shall  coordinate
     8  responsibilities  concerning  security  breaches  with  the  data breach
     9  group.
    10    § 205-b.  Online  privacy  protection  and  internet  safety  advisory
    11  committee.  There  is  hereby  created the online privacy protection and
    12  internet safety advisory committee, which shall consist of the following
    13  ex-officio members or their  designees:  the  secretary  of  state,  the
    14  attorney  general, the commissioner of the division of homeland security
    15  and emergency services, the commissioner of the office of online privacy
    16  protection and internet safety, and the director of the office of infor-
    17  mation technology services. In addition, there shall be appointed by the
    18  governor by and with the advice and consent of the senate, five  persons
    19  who have been employed at the level of executive officer in companies in
    20  the  information technology industry for a period of five years or more,
    21  or employed at a senior management level in the areas of privacy compli-
    22  ance and internet security for a period of five years or more, or  as  a
    23  privacy compliance officer or other high level position requiring exper-
    24  tise in the field of privacy and information technology for such period.
    25  The governor shall designate the chair of the advisory committee.
    26    Each appointed member of the committee shall be appointed for terms of
    27  three years. Any member may be reappointed for two additional terms. The
    28  advisory  committee  shall  meet  no less than three times each year, or
    29  more if its business requires. The advisory committee shall  advise  the
    30  commissioner  on  matters relating to online privacy and internet safety
    31  concerns. Members of the advisory committee  shall  receive  no  compen-
    32  sation but shall be entitled to actual and necessary traveling and other
    33  expenses  while engaged in the performance of such member's duties here-
    34  under.
    35    The committee shall have the following functions, powers and duties:
    36    1. To review and comment in the manner and form it  deems  appropriate
    37  on proposed rules, regulations, guidelines, and programs of the office;
    38    2.  To  provide  guidance  and support to the office in development of
    39  policies, programs, and recommendations;
    40    3. To make recommendations concerning surveys and reports; and
    41    4. To perform such other acts as assigned by the chair of the  commit-
    42  tee which are necessary or appropriate to carry out the functions of the
    43  committee and support the operations of the office.
    44    § 205-c. Responsibilities. The office of online privacy protection and
    45  internet safety shall:
    46    1.  Receive  complaints:  Receive  complaints concerning violations of
    47  articles thirty-nine-H and thirty-nine-F of the  general  business  law,
    48  relating  to  confidentiality and privacy of e-mail and social media and
    49  to data security breaches, and violations of other online privacy-relat-
    50  ed laws, attempt to mediate such complaints where appropriate, and refer
    51  complaints to the appropriate governmental  agency  authorized  to  take
    52  appropriate action on such complaints;
    53    2.  Information  and  referral: Provide information to individuals and
    54  entities about obtaining, using,  disclosing,  or  disposing  of  online
    55  personally  identifiable  information in a lawful manner, and other such
    56  online privacy issues as posting of privacy  policies,  compliance  with

        S. 3657                             3
     1  federal and state laws and guidelines concerning personal information of
     2  minors, and others;
     3    3.  Education  and outreach: Develop and coordinate public and private
     4  informational and educational  programs  and  materials  to  foster  and
     5  improve  public  understanding  concerning  online  privacy and internet
     6  safety, including programs targeted to minors in consultation  with  the
     7  education department;
     8    4.  Model policies: develop and disseminate model online privacy poli-
     9  cies;
    10    5. Training: Assist as requested in the training of local, state,  and
    11  federal  law enforcement agencies and others regarding the prevention of
    12  identity theft and other online privacy-related crimes;
    13    6.  Coordinate  security  breach  procedures:   Coordinate   effective
    14  responses to online security breaches with the data breach group;
    15    7. Research: Conduct investigations, research, studies and analyses of
    16  matters affecting the online privacy and internet safety; and
    17    8.  Advise: Advise and make recommendations to the governor concerning
    18  online privacy and internet safety.
    19    § 205-d. Construction. The authority of the office of  online  privacy
    20  protection  and  internet safety to adopt regulations under this article
    21  shall be limited exclusively to those regulations necessary to implement
    22  subdivisions one through six of section two hundred five-c of this arti-
    23  cle. Nothing contained herein shall be deemed to apply to  the  legisla-
    24  ture  or  the judiciary, or except as specifically otherwise provided in
    25  law, to a state agency as such term is defined by  section  one  hundred
    26  one of the state technology law.
    27    §  205-e.  Report. The office shall report annually not later than the
    28  thirtieth of January each year to the governor, the temporary  president
    29  of  the senate, the speaker of the assembly, the minority leaders of the
    30  senate and assembly, and the public beginning in the first calendar year
    31  after the effective date of  this  section  concerning:  the  number  of
    32  complaints  received and the resolutions thereof by category or class of
    33  complaint, the numbers of closed cases, and any recommendations concern-
    34  ing improvements in online privacy  laws  and  procedures  and  internet
    35  safety.
    36    §  3. Section 399-ddd of the general business law, as added by chapter
    37  372 of the laws of 2012, is renumbered section 399-dddd.
    38    § 4. Subdivision 1 of section 399-dddd, as added by chapter 372 of the
    39  laws of 2012 and such section as renumbered by  section  three  of  this
    40  act, is amended to read as follows:
    41    1.    As  used in this section, "social security account number" shall
    42  include the number issued by the federal social security  administration
    43  and  any  number  derived  from such number, or any part of such number.
    44  Such term shall not include any number that has been encrypted.
    45    § 5. Paragraph (a) of subdivision 1 of section 399-ddd of the  general
    46  business  law, as amended by chapter 371 of the laws of 2012, is amended
    47  to read as follows:
    48    (a) As used in this section "social  security  account  number"  shall
    49  include  the number issued by the federal social security administration
    50  and any number derived from such number, or any  part  of  such  number.
    51  Such term shall not include any number that has been encrypted.
    52    §  6. The general business law is amended by adding a new article 39-H
    53  to read as follows:
    54                                ARTICLE 39-H
    55       THE NEW YORK STATE ONLINE ACCOUNTS AND SOCIAL MEDIA PRIVACY ACT
    56  Section 900. Short title.

        S. 3657                             4
     1          901. Definitions.
     2          902. Purpose.
     3          903. Requests for disclosure by employers.
     4          904. Requests for disclosure by an educational institution.
     5          905. Prohibited and permitted activities by landlord.
     6          906. Construction.
     7          907. Remedies.
     8    §  900.  Short  title. This article shall be known and may be cited as
     9  the "online media privacy act".
    10    § 901. Definitions. As used in this  article:    1.  "Adverse  action"
    11  means  to  discharge,  threaten,  or  otherwise  discriminate against an
    12  employee in any manner that affects the employee's employment, including
    13  compensation,   terms,   conditions,   location,   rights,   immunities,
    14  promotions, or privileges.
    15    2.  "Educational  institution"  means  a college, university, academy,
    16  school district and  city  school  district  or  other  entity  offering
    17  secondary  education, program offering career education or higher educa-
    18  tion, as such terms are defined in section two of the education law, and
    19  any other institution of higher education,  technical  college,  school,
    20  public  school,  charter  school, private school, and any private educa-
    21  tional testing service or administrator.
    22    3. "Employer" means a person,  including  the  state  or  a  political
    23  subdivision  of  the state, that has one or more workers employed in the
    24  same business or business activity, or in or about the  same  establish-
    25  ment,  with  the  right  to control and direct the work provided by such
    26  workers.
    27    4. "Personal internet account" means an online account that is used by
    28  an employee or an applicant  for  employment  exclusively  for  personal
    29  communications  unrelated  to  any business purpose of the employer, but
    30  does not include an account created, maintained, used, or accessed by an
    31  employee or applicant for employment for business related communications
    32  or for a business purpose of the employer.  As  used  herein,  "personal
    33  internet  account"  also  means  and  includes social media accounts and
    34  website or online services, as defined  in  this  section,  used  by  an
    35  employee  or an applicant for employment exclusively for personal commu-
    36  nications unrelated to any business purpose  of  the  employer  but  not
    37  created,  maintained,  used, or accessed by an employee or applicant for
    38  employment for business related communications or for a business purpose
    39  of the employer.
    40    5. "Social media" means an internet-based service that allows individ-
    41  uals to engage in activities which include but are not  limited  to  the
    42  following:  construct  a  public or semi-public profile within a bounded
    43  system, created by the service; create a list of other users  with  whom
    44  they  share  a connection within the system; and view and navigate their
    45  list of connections and those made by others within the  system.  Social
    46  media includes Facebook, e-mail, and Twitter accounts, and other similar
    47  services,  and websites and online services which include the activities
    48  described in this subdivision, and the digital media contained in  those
    49  sites, including photos, videos, texts and e-mail messages.
    50    6.  "Website  or  online service" means and includes a website, online
    51  service, online application, mobile application, electronic  service  or
    52  account,  that contains electronic content, including but not limited to
    53  videos, still photographs, blogs, video  blogs,  podcasts,  instant  and
    54  text  messages, e-mail, online services or accounts, or website profiles
    55  or locations.

        S. 3657                             5
     1    § 902. Purpose. The purpose of this article is to protect the  privacy
     2  of online users against inappropriate intrusion.
     3    §  903.  Requests for disclosure by employers.  1. Except as otherwise
     4  provided herein, an employer may  not  seek  disclosure  of  information
     5  related  to a personal internet account in any of the following ways. An
     6  employer may not:
     7    (a) request or require an employee or an applicant for  employment  to
     8  disclose  a  username and password, or a password, that allows access to
     9  the employee's or applicant's personal internet account;
    10    (b) request or require an employee or applicant for employment to  add
    11  the  employer  or  an employment agency to the employee's or applicant's
    12  list of contacts associated with a personal internet account;
    13    (c) request or require an employee or an applicant for  employment  to
    14  access  a personal internet account in the presence of the employer in a
    15  manner that enables the employer to observe the contents of the  employ-
    16  ee's or applicant's personal internet account; or
    17    (d) take adverse action, including fail to hire, or otherwise penalize
    18  an employee or applicant for employment for failure to disclose informa-
    19  tion or failure to take actions specified in this subdivision.
    20    2.  The  foregoing provisions of this section to the contrary notwith-
    21  standing, nothing contained herein shall prohibit an employer from doing
    22  any of the following:
    23    (a) requesting or requiring an employee  to  disclose  a  username  or
    24  password  required  solely for the purpose of gaining access to an elec-
    25  tronic communications device supplied by or paid for in whole or in part
    26  by the employer; or an account or  service  provided  by  the  employer,
    27  obtained  by  virtue  of the employee's employment relationship with the
    28  employer, or used for the employer's business purposes;
    29    (b) disciplining or  discharging  an  employee  for  transferring  the
    30  employer's  proprietary or confidential information or financial data to
    31  an employee's personal internet account without the employer's  authori-
    32  zation;
    33    (c)  conducting an investigation or requiring an employee to cooperate
    34  in an investigation if there is specific information about  activity  on
    35  the  employee's  personal  internet account, for the purpose of ensuring
    36  compliance with applicable laws, regulatory  requirements,  or  prohibi-
    37  tions  against  work-related employee misconduct; or if the employer has
    38  specific information about an unauthorized transfer  of  the  employer's
    39  proprietary  information, confidential information, or financial data to
    40  an employee's personal internet account. In such cases an  employer  may
    41  require an employee to share the content that has been reported in order
    42  to make a factual determination;
    43    (d)  restricting  or  prohibiting  an  employee's  access  to  certain
    44  websites while using an electronic communications device supplied by, or
    45  paid for in whole or in part by, the employer or while using an  employ-
    46  er's  network  or  resources, to the extent permissible under applicable
    47  laws; or
    48    (e) monitoring, reviewing,  accessing,  or  blocking  electronic  data
    49  stored  on  an electronic communications device supplied by, or paid for
    50  in whole or in part  by,  the  employer,  or  stored  on  an  employer's
    51  network, to the extent permissible under applicable laws.
    52    3. Nothing contained herein shall be deemed to prohibit or restrict an
    53  employer  from  complying  with a duty to screen employees or applicants
    54  before hiring or to monitor or  retain  employee  communications  estab-
    55  lished  under  federal  law, by a self-regulatory organization under the
    56  Securities and Exchange Act of 1934, 15 U.S.C. Sec.  78c(a)(26),  or  in

        S. 3657                             6
     1  the  course  of a law enforcement employment application or law enforce-
     2  ment officer conduct investigation performed by a law enforcement  agen-
     3  cy.
     4    4. Nothing contained herein shall be deemed to prohibit or restrict an
     5  employer from viewing, accessing, or using information about an employee
     6  or  applicant that can be obtained without accessing the personal infor-
     7  mation account described in subdivision one of this section or  that  is
     8  otherwise available in the public domain.
     9    5.  Waiver  of  any  provision of subdivision one of this section with
    10  respect to access by an employer to the personal internet account of  an
    11  employee is hereby declared to be contrary to public policy and void and
    12  unenforceable,  and nothing contained herein shall be deemed to allow an
    13  employer to require a violation of such subdivision as  a  condition  of
    14  employment or in a contract or oral agreement with an employee or appli-
    15  cant for employment.
    16    §  904.  Requests  for  disclosure by an educational institution.   1.
    17  Except as otherwise provided herein, an educational institution may  not
    18  seek disclosure of information related to a personal internet account of
    19  a student or prospective student in any of the following ways. An educa-
    20  tional institution may not:
    21    (a)  request or require a student or prospective student to disclose a
    22  username and password, or a password that allows access to the student's
    23  or prospective student's personal internet account;
    24    (b) request or require a student or prospective  student  to  add  the
    25  educational  institution  to the student's or prospective student's list
    26  of contacts associated with a personal internet account;
    27    (c) request or require a student or prospective student  to  access  a
    28  personal internet account in the presence of the educational institution
    29  in  a  manner  that  enables  the educational institution to observe the
    30  contents of the  student  or  prospective  student's  personal  internet
    31  account; or
    32    (d)  expel,  suspend,  discipline,  or otherwise penalize a student or
    33  prospective student for failure to disclose information or take  actions
    34  prohibited in this subdivision.
    35    2.  The  foregoing provisions of this section to the contrary notwith-
    36  standing, nothing contained herein shall prohibit an educational  insti-
    37  tution  from requesting or requiring a student to disclose access infor-
    38  mation to the educational institution in order for  the  institution  to
    39  gain  access  to or operate an electronic communications device supplied
    40  or paid for in whole or in part by the institution or in order  for  the
    41  educational institution to gain access to an account or service provided
    42  by  the institution, or obtained by virtue of the student's admission to
    43  or enrollment in the educational institution; or from  viewing,  access-
    44  ing,  or  using  information about a student or prospective student that
    45  can be obtained without accessing information or that  is  available  in
    46  the public domain. In addition:
    47    (a)  Nothing  contained  in this section shall be deemed to affect the
    48  rights and obligations of an educational institution to protect  against
    49  and  investigate  alleged student misconduct or violations of applicable
    50  laws and regulations.
    51    (b) Nothing contained in this section shall be deemed to prohibit such
    52  institution from taking any adverse action against a  student,  prospec-
    53  tive student, or student group for any lawful reason.
    54    (c)  Nothing  contained  in this section shall be deemed to prohibit a
    55  student from voluntarily consenting to such disclosure.

        S. 3657                             7
     1    § 905. Prohibited and permitted activities by landlord.  1. A landlord
     2  may not request disclosure of information related to the personal inter-
     3  net account of a tenant or prospective tenant in any  of  the  following
     4  ways. A landlord may not:
     5    (a)  request  or  require a tenant or prospective tenant to disclose a
     6  username and password, or a password that allows access to the tenant or
     7  prospective tenant's personal internet account;
     8    (b) request or require a tenant or prospective tenant to add the land-
     9  lord to the tenant or prospective tenant's list of  contacts  associated
    10  with a personal internet account;
    11    (c)  request  or  require  a  tenant or prospective tenant to access a
    12  personal internet account in the presence of the landlord  in  a  manner
    13  that  enables  the  landlord  to  observe  the contents of the tenant or
    14  prospective tenant's personal internet account; or
    15    (d) discriminate against or otherwise penalize a tenant or prospective
    16  tenant for failure to disclose information or take actions specified  in
    17  this subdivision.
    18    2.  The  foregoing provisions of this section to the contrary notwith-
    19  standing, nothing contained herein shall prohibit a landlord from  view-
    20  ing,  accessing,  or  using  information  about  a tenant or prospective
    21  tenant that can be obtained without accessing  information  or  that  is
    22  available in the public domain.
    23    § 906. Construction. Nothing contained in this article shall be deemed
    24  to  create  a duty for an employer, educational institution, or landlord
    25  to search or monitor the activity of a personal internet account  or  to
    26  create a liability for an employer, educational institution, or landlord
    27  for  any  failure  to request or require that an employee, applicant for
    28  employment, student, prospective student, tenant, or prospective  tenant
    29  grant  access  to,  allow  observation  of, or disclose information that
    30  allows access to or observation of a personal internet  account  of  the
    31  employee,   applicant  for  employment,  student,  prospective  student,
    32  tenant, or prospective tenant.
    33    § 907. Remedies. 1. The attorney general may bring a  civil  cause  of
    34  action  against  an  employer, educational institution, or landlord in a
    35  court of competent jurisdiction on behalf of a citizen  aggrieved  by  a
    36  violation of this article.
    37    2. Any employer, educational institution, or landlord who violates any
    38  provision  of  this  article  shall be subject to a civil penalty not to
    39  exceed five hundred dollars for each such violation.
    40    § 7. Subdivision 2 of section 390-b of the  general  business  law  is
    41  amended by adding a new paragraph (e) to read as follows:
    42    (e)  The  term  "social  media"  means  an internet-based service that
    43  allows individuals to engage in activities which  include  but  are  not
    44  limited  to  the  following:  construct  a public or semi-public profile
    45  within a bounded system, created by the service; create a list of  other
    46  users  with whom they share a connection within the system; and view and
    47  navigate their list of connections and those made by others  within  the
    48  system.  Social  media  includes Facebook, e-mail, and Twitter accounts,
    49  and other similar services,  and  websites  and  online  services  which
    50  include  the  activities  described  in  this paragraph, and the digital
    51  media contained in those sites,  including  photos,  videos,  texts  and
    52  e-mail messages.
    53    §  8.  Subdivision  3 of section 390-b of the general business law, as
    54  amended by chapter 414 of the laws  of  2006,  is  amended  to  read  as
    55  follows:

        S. 3657                             8
     1    3.  It  is unlawful for any person, by means of a web page, electronic
     2  message, social media, or other use of the internet to solicit,  request
     3  or  collect  identifying information by deceptively representing himself
     4  or herself, either directly or by implication, to be  a  business  or  a
     5  governmental  entity  and  doing so without the authority or approval of
     6  such business or such governmental entity, or by deceptively  represent-
     7  ing  himself  or  herself  to be another person without the authority or
     8  approval of such other person, and doing so with the  intent  to  obtain
     9  financial information or information that would allow such individual to
    10  obtain  financial  information  from  one or more other persons or busi-
    11  nesses.
    12    § 9. Subdivision 1 of section 899-aa of the general  business  law  is
    13  amended by adding a new paragraph (e) to read as follows:
    14    (e)  "Data  breach  group"  means  the entity created by section eight
    15  hundred ninety-nine-bb of this article.
    16    § 10. Paragraph (a) of subdivision 8 of section 899-aa of the  general
    17  business  law,  as  amended  by section 6 of part N of chapter 55 of the
    18  laws of 2013, is amended to read as follows:
    19    (a) In the event that any New York residents are to be  notified,  the
    20  person or business shall notify the [state attorney general, the depart-
    21  ment of state and the division of state police] office of online privacy
    22  protection  and  internet  security,  which shall immediately notify the
    23  data breach group as to the timing,  content  and  distribution  of  the
    24  notices and approximate number of affected persons. Such notice shall be
    25  made without delaying notice to affected New York residents.
    26    §  11.  The  general  business  law is amended by adding a new section
    27  899-bb to read as follows:
    28    § 899-bb. Data breach group.  1.  The  data  breach  group  is  hereby
    29  created, to consist of the attorney general, the secretary of state, the
    30  commissioner   of  the  division  of  homeland  security  and  emergency
    31  services, the chief information officer of  the  office  of  information
    32  technology services, the superintendent of the division of state police,
    33  and  the commissioner of the office of online privacy and internet safe-
    34  ty, or their designees. Its purposes shall be: to receive, evaluate, and
    35  act on any report of a breach of the security of the system made  pursu-
    36  ant  to  section  eight  hundred  ninety-nine-aa  of this article, or to
    37  section two hundred eight of the  state  technology  law;  to  establish
    38  priorities  and responsibilities pursuant to law among its members so as
    39  to promote efficiency in responses to violations of internet privacy and
    40  avoid duplication, overlap, and unnecessary paperwork, including  multi-
    41  ple  filings  by  for-profit and not-for-profit businesses and entities,
    42  and other governmental entities; to establish where appropriate  simpli-
    43  fied reporting forms and procedures in accordance with law, and a single
    44  reporting  intake  system;  to  maintain  database  records  and reports
    45  concerning security breaches; to establish cooperative working relation-
    46  ships with federal, state, and local police and  investigators;  and  to
    47  insure  appropriate  and timely public notification of security breaches
    48  that includes information sufficient for individuals to take appropriate
    49  steps to protect themselves.
    50    2. The data breach group shall be chaired by the commissioner  of  the
    51  division of homeland security and emergency services with administrative
    52  services  provided  by the office of online privacy and internet safety.
    53  The data breach group shall meet on a monthly basis, or  more  often  if
    54  their work requires, provided that attendance at such meetings may be by
    55  telephonic or video conference, as the group shall decide.

        S. 3657                             9
     1    § 12. The general business law is amended by adding a new article 39-I
     2  to read as follows:
     3                                ARTICLE 39-I
     4         REQUIREMENTS FOR USE AND DESTRUCTION OF ONLINE PERSONAL AND
     5                             PRIVATE INFORMATION
     6  Section 910. Short title.
     7          911. Definitions.
     8          912. Purpose.
     9          913. Application.
    10          914. Liability for failure to comply.
    11    §  910.  Short  title. This article shall be known and may be cited as
    12  the "New York state online privacy act".
    13    § 911. Definitions. As used in this article, the following terms shall
    14  have the following meanings:   1. "Personal  information"  and  "private
    15  information"  shall  have the same meanings as in paragraphs (a) and (b)
    16  of subdivision one of section eight hundred ninety-nine-aa of this chap-
    17  ter.
    18    2. "Destruction of information" means actions taken by the provider of
    19  a personal internet account  to  render  the  personal  information  and
    20  private  information  of  a  user  unreadable  and  incapable  of recon-
    21  struction.
    22    3.  "Privacy  policy"  means  a  policy  concerning  the  privacy   of
    23  personally identifiable information collected by an operator through its
    24  website or online service that meets the Fair Information Practice Prin-
    25  ciples  guidelines  established  by the Federal Trade Commission, or any
    26  successor thereto in the form of guidelines or law.
    27    4. "Personal internet account" has the same meaning as  such  term  is
    28  defined in subdivision four of section nine hundred one of this chapter.
    29    §  912.  Purpose.  The  purpose  of  this  article is to safeguard the
    30  personal and private information of users of the internet  by  requiring
    31  that operators of services offering personal internet accounts establish
    32  privacy  policies that meet federal standards, disclose such policies to
    33  users of their services, and disclose their processes for destruction of
    34  information.
    35    § 913. Application.   1.  The  provider  of  a  service  which  offers
    36  personal  internet  accounts  shall  promulgate,  post,  and implement a
    37  privacy policy as defined herein.
    38    2. A provider of a service which offers a  personal  internet  account
    39  shall  provide for destruction of information of a user who cancels such
    40  account and shall notify users about its policy and processes  regarding
    41  such destruction.
    42    §  914. Liability for failure to comply. A provider of a service which
    43  offers a personal internet account which  is  negligent  in  failing  to
    44  comply with any requirement imposed pursuant to this article for posting
    45  of a privacy policy or destruction of information is liable to that user
    46  in  an  amount  equal  to  the  sum of any actual damages sustained as a
    47  result of such failure, and in the case  of  any  successful  action  to
    48  enforce  any  liability  under  this  section,  the  costs of the action
    49  together with reasonable attorney's fees as  determined  by  the  court;
    50  provided  however that solely with respect to an alleged failure to post
    51  a privacy policy, or to post timely  or  to  post  all  the  information
    52  required,  or  to post accurate information, an operator may assert as a
    53  complete defense in any action in  law  or  equity  that  it  thereafter
    54  provided  such  information  to all affected users within thirty days of
    55  the date that operator knew of such failure.  The  rights  and  remedies

        S. 3657                            10
     1  available  under  this  section  are cumulative to each other and to any
     2  other rights and remedies available under law.
     3    §  13.  Any  other provision of any other law to the contrary notwith-
     4  standing, the director of the division of  the  budget,  the  office  of
     5  state  comptroller,  and  the  commissioner  of  the department of civil
     6  service shall develop a plan providing for  the  orderly  transition  of
     7  such  employees  and  functions as shall be necessary and appropriate to
     8  the  operations  and  functioning  of  the  office  of  online   privacy
     9  protection  and  internet safety created by this act. Such plan shall be
    10  completed and submitted to the legislature not later than 180 days after
    11  this act shall have become law, but in no case later than February first
    12  of the succeeding calendar year, at which time such agencies  and  agen-
    13  cies  affected  by  the plan shall begin implementation of the plan. Any
    14  other provision of any other law to the contrary notwithstanding, and in
    15  accordance with section 4 of the state finance law, the  comptroller  is
    16  hereby authorized and directed to transfer, at the request of the direc-
    17  tor  of  the  budget  and  pursuant to such plan, such funds as shall be
    18  necessary and appropriate for the creation and operation of  the  office
    19  of  online privacy and internet safety, but in no case shall such trans-
    20  fers total more than 10 million dollars within the fiscal year in  which
    21  the office shall have been created.
    22    §  14.  Severability. If any clause, sentence, paragraph, subdivision,
    23  section or part of this act shall be adjudged by a  court  of  competent
    24  jurisdiction  to  be  invalid, such judgment shall not affect, impair or
    25  invalidate the remainder thereof, but shall be confined in its operation
    26  to the clause, sentence, paragraph, subdivision, section or part of this
    27  act directly involved in the controversy in which  such  judgment  shall
    28  have been rendered.
    29    § 15. This act shall take effect on the first of January next succeed-
    30  ing the date on which it shall have become a law.
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