Bill Text: NY S05007 | 2023-2024 | General Assembly | Amended


Bill Title: Establishes the "secure our data act"; relates to state entities preparing for and protecting against a ransomware attack.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2024-03-18 - referred to governmental operations [S05007 Detail]

Download: New_York-2023-S05007-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5007--B
            Cal. No. 485

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 21, 2023
                                       ___________

        Introduced by Sens. GONZALEZ, SALAZAR -- read twice and ordered printed,
          and  when  printed  to  be  committed to the Committee on Internet and
          Technology -- reported favorably from said committee and committed  to
          the  Committee  on  Finance  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          recommitted  to the Committee on Internet and Technology in accordance
          with Senate Rule 6, sec. 8 -- reported favorably from  said  committee
          and  committed  to the Committee on Finance -- 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 state technology law, in relation to establishing
          the "secure our data act"

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

     1    Section 1. This act shall be known and may be cited as the "secure our
     2  data act".
     3    §  2.  Legislative  intent.  The legislature finds that ransomware and
     4  other malware attacks have affected the electronically  stored  personal
     5  information  relating  to  thousands of people statewide and millions of
     6  people nationwide.  The  legislature  also  finds  that  state  entities
     7  receive  such  personal  information from various sources, including the
     8  data subjects themselves, other state entities, and the federal  govern-
     9  ment.    In addition, the legislature finds that state entities use such
    10  personal information to make determinations regarding the data subjects.
    11  The legislature further finds that New Yorkers  deserve  to  have  their
    12  personal  information that is in the possession of a state entity stored
    13  in a manner that will withstand any  attempt  by  ransomware  and  other
    14  malware to alter, change, or encrypt such information.
    15    Therefore,  the  legislature enacts the secure our data act which will
    16  guarantee that state entities  will  employ  the  proper  technology  to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09002-04-4

        S. 5007--B                          2

     1  protect  the  personal information stored as backup information from any
     2  unauthorized alteration or change.
     3    §  3.  The state technology law is amended by adding a new section 210
     4  to read as follows:
     5    § 210. Ransomware and other malware protection.  1.  Definitions.  For
     6  purposes  of  this section, the following terms shall have the following
     7  meanings:
     8    (a) "Data subject" shall mean the person who is  the  subject  of  the
     9  personal information.
    10    (b)  "Immutable"  means  data  that  is  stored unchanged over time or
    11  unable to be changed. For the purposes  of  backups,  "immutable"  shall
    12  mean  that,  once ingested, no external or internal operation can modify
    13  the data and must never be  available  in  a  read/write  state  to  the
    14  client.  "Immutable" shall specifically apply to the characteristics and
    15  attributes of a backup system's file system and may not  be  applied  to
    16  temporary  systems  state,  time-bound  or  expiring  configurations, or
    17  temporary conditions created by a physical air gap as is implemented  in
    18  most  legacy systems.  An immutable file system must demonstrate charac-
    19  teristics that do not permit the editing or changing of any data  backed
    20  up to provide agencies with complete recovery capabilities.
    21    (c) "Information system" shall mean any good, service or a combination
    22  thereof,  used  by any computer, cloud service, or interconnected system
    23  that is maintained for or used by a state  entity  in  the  acquisition,
    24  storage,  manipulation,  management, movement, control, display, switch-
    25  ing, interchange, transmission, or reception of data or voice including,
    26  but not limited to, hardware, software,  information  appliances,  firm-
    27  ware,  programs,  systems,  networks, infrastructure, media, and related
    28  material used to  automatically  and  electronically  collect,  receive,
    29  access,  transmit,  display, store, record, retrieve, analyze, evaluate,
    30  process, classify, manipulate, manage, assimilate, control, communicate,
    31  exchange, convert, coverage, interface, switch, or disseminate  data  of
    32  any kind or form.
    33    (d)  "Maintained"  shall  mean  personal information stored by a state
    34  entity that was provided to the state entity  by  the  data  subject,  a
    35  state  entity,  or  a  federal governmental entity. Such term shall also
    36  include personal information provided by an adverse party in the  course
    37  of litigation or other adversarial proceeding.
    38    (e)  "Malware"  shall mean malicious code included in any application,
    39  digital content, document, executable, firmware,  payload,  or  software
    40  for  the  purpose  of  performing  or executing one or more unauthorized
    41  processes designed to have an adverse impact on the availability, confi-
    42  dentiality, or integrity of data stored in an information system.
    43    (f) "Ransomware" shall mean any type of malware that  uses  encryption
    44  technology to prevent users from accessing an information system or data
    45  stored by such information system until a ransom is paid.
    46    (g)  "State  entity"  shall  mean  any  state board, bureau, division,
    47  committee, commission, council,  department,  public  authority,  public
    48  benefit  corporation,  office  or other governmental entity performing a
    49  governmental or proprietary function for the state of New York, except:
    50    (i) the judiciary; and
    51    (ii) all cities, counties, municipalities, villages, towns, and  other
    52  local agencies.
    53    2.  Data  protection  standards.  (a) No later than one year after the
    54  effective date of this  section,  the  director,  in  consultation  with
    55  stakeholders  and other interested parties, which shall include at least

        S. 5007--B                          3

     1  one public hearing, shall promulgate regulations that design and develop
     2  standards for:
     3    (i) malware and ransomware protection for mission critical information
     4  systems and for personal information used by such information systems;
     5    (ii)  data  backup  that includes the creation of immutable backups of
     6  personal information maintained by the state entity and storage of  such
     7  backups in a segmented environment, including a segmented device;
     8    (iii)  information system recovery that includes creating an identical
     9  copy of an immutable personal information backup maintained  by  or  for
    10  the  state  entity  that  was  stored in a segmented environment or on a
    11  segmented device for use when an information system has  been  adversely
    12  affected  by  rent  somewhere  or other malware and requires restoration
    13  from one or more backups; and
    14    (iv) annual workforce training regarding  protection  from  ransomware
    15  and  other  malware,  as well as processes and procedures that should be
    16  followed in the event of a data incident involving ransomware  or  other
    17  malware.
    18    (b)  Such  regulations  may  be adopted on an emergency basis. If such
    19  regulations are adopted on an emergency basis, the office  shall  engage
    20  in  the  formal  rulemaking  procedure no later than the day immediately
    21  following the date that the office promulgated such  regulations  on  an
    22  emergency basis. Provided that the office has commenced the formal rule-
    23  making  process,  the  regulations  adopted on an emergency basis may be
    24  renewed no more than two times.
    25    3. Vulnerability assessments. Notwithstanding any provision of law  to
    26  the contrary, each state entity shall engage in vulnerability testing of
    27  its information systems as follows:
    28    (a) Beginning January first, two thousand twenty-five and on a monthly
    29  basis  thereafter,  each  state  entity  shall  perform,  or cause to be
    30  performed, a vulnerability assessment of at least one  mission  critical
    31  information system ensuring that each mission critical system has under-
    32  gone a vulnerability assessment during the past year. A report detailing
    33  the  vulnerability  assessment  methodology  and  findings shall be made
    34  available to the office for review no later than forty-five  days  after
    35  the testing has been completed.
    36    (b)  Beginning  December  first,  two thousand twenty-five, each state
    37  entity's entire information system shall undergo vulnerability  testing.
    38  A report detailing the vulnerability assessment methodology and findings
    39  shall  be  made  available to the office for review no later than forty-
    40  five days after such testing has been completed.
    41    (c) The office shall assist  state  entities  in  complying  with  the
    42  provisions of this section.
    43    4.  Data  and information system inventory. (a) No later than one year
    44  after the effective date of this section, each state entity shall create
    45  an inventory of the data maintained by the state entity and the  purpose
    46  or  purposes  for  which such data is maintained and used. The inventory
    47  shall include a listing of all personal information  maintained  by  the
    48  state entity, along with the source and age of such information.
    49    (b)  No  later than one year after the effective date of this section,
    50  each state entity shall create an inventory of the  information  systems
    51  maintained  by  or  on  behalf  of  the  state entity and the purpose or
    52  purposes for which each such information system is maintained and  used.
    53  The  inventory  shall  denote those information systems that are mission
    54  critical and those that use personal information, and whether the infor-
    55  mation system is protected by immutable backups.

        S. 5007--B                          4

     1    (c) Notwithstanding paragraphs (a) and (b) of this subdivision,  if  a
     2  state  entity  has  already  completed  a  data inventory or information
     3  systems  inventory,  such  state  entity  shall  update  the  previously
     4  completed  data  inventory or information system inventory no later than
     5  one year after the effective date of this section.
     6    (d) Upon written request from the office, a state entity shall provide
     7  the office with either or both of the inventories required to be created
     8  or updated pursuant to this subdivision.
     9    5. Incident management and recovery. (a) No later than eighteen months
    10  after  the  effective date of this section, each state entity shall have
    11  created an incident response plan for incidents involving ransomware  or
    12  other  malware  that  renders an information system or its data unavail-
    13  able, and incidents involving ransomware or other malware that result in
    14  the alteration or deletion of or unauthorized access to, personal infor-
    15  mation.
    16    (b) Such incident response plan shall include a  procedure  for  situ-
    17  ations  where production and non-segmented information systems have been
    18  adversely affected by a data incident, as well as a  procedure  for  the
    19  storage  of  personal  information  and  mission  critical  backups on a
    20  segmented device or segmented portion of the state entity's  information
    21  system  to  ensure  that  such personal information and mission critical
    22  systems are protected by immutable backups.
    23    (c) Beginning January first, two thousand twenty-seven and on an annu-
    24  al basis thereafter, each state entity shall complete at least one exer-
    25  cise of its incident response plan that includes copying  the  immutable
    26  personal   information   and  mission  critical  applications  from  the
    27  segmented portion of the state entity's  information  system  and  using
    28  such copies in the state entity's restoration and recovery process. Upon
    29  completion  of  such exercise, the state entity shall document the inci-
    30  dent response plan's successes and shortcomings.
    31    6. No private right of action. Nothing set forth in this section shall
    32  be construed as creating or establishing a private cause of action.
    33    § 4. Severability. The provisions of this act shall be  severable  and
    34  if  any  portion  thereof  or the applicability thereof to any person or
    35  circumstances shall be held to be invalid, the remainder of this act and
    36  the application thereof shall not be affected thereby.
    37    § 5. This act shall take effect immediately.
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