S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7358
                                   I N  S E N A T E
                                     May 14, 2014
                                      ___________
       Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       AN  ACT  to  amend  the  executive law, the general business law and the
         state technology 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.  The executive law is amended by adding a new article 10-A
    2  to read as follows:
    3                                ARTICLE 10-A
    4                        OFFICE OF PRIVACY PROTECTION
    5  SECTION 205. OFFICE OF PRIVACY PROTECTION; CREATED.
    6          205-A. ADMINISTRATION.
    7          205-B. PRIVACY PROTECTION ADVISORY COMMITTEE.
    8          205-C. RESPONSIBILITIES.
    9          205-D. CONSTRUCTION.
   10          205-E. REPORT.
   11    S 205. OFFICE OF PRIVACY PROTECTION; CREATED. THE  OFFICE  OF  PRIVACY
   12  PROTECTION  IS  HEREBY  CREATED IN THE EXECUTIVE DEPARTMENT. ITS PURPOSE
   13  SHALL BE TO PROMOTE AND PROTECT THE PRIVACY OF PERSONAL  INFORMATION  OF
   14  INDIVIDUALS.
   15    S  205-A. ADMINISTRATION. THE OFFICE SHALL BE HEADED BY A COMMISSIONER
   16  OF PRIVACY PROTECTION WHO SHALL BE APPOINTED BY THE GOVERNOR BY AND WITH
   17  THE ADVICE AND CONSENT OF THE SENATE, AND WHO SHALL HOLD OFFICE  AT  THE
   18  PLEASURE  OF  THE  GOVERNOR.  THE COMMISSIONER SHALL POSSES SUCH RIGHTS,
   19  POWERS,  AND  DUTIES  IN  CONNECTION  WITH  PRIVACY  PROTECTION  AS  ARE
   20  EXPRESSED OR REASONABLY IMPLIED BY THIS CHAPTER OR OTHER APPLICABLE LAWS
   21  OF THIS STATE RELATING TO THE ONLINE PRIVACY OF INDIVIDUALS.
   22    S  205-B.  PRIVACY  PROTECTION  ADVISORY  COMMITTEE.  THERE  IS HEREBY
   23  CREATED THE PRIVACY PROTECTION ADVISORY COMMITTEE, WHICH  SHALL  CONSIST
   24  OF THE FOLLOWING EX OFFICIO MEMBERS OR THEIR DESIGNEES: THE SECRETARY OF
   25  STATE,  THE  ATTORNEY GENERAL, THE COMMISSIONER OF THE DIVISION OF HOME-
   26  LAND SECURITY AND EMERGENCY SERVICES, AND THE DIRECTOR OF THE OFFICE  OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14411-04-4
       S. 7358                             2
    1  INFORMATION  TECHNOLOGY  SERVICES. IN ADDITION, THERE SHALL BE APPOINTED
    2  BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE  SENATE,  FIVE
    3  PERSONS  WHO  HAVE  BEEN  EMPLOYED  AT THE LEVEL OF EXECUTIVE OFFICER IN
    4  COMPANIES  IN  THE  INFORMATION TECHNOLOGY INDUSTRY FOR A PERIOD OF FIVE
    5  YEARS OR MORE OR AS A PRIVACY COMPLIANCE OFFICER FOR SUCH PERIOD, OR  AS
    6  A  CONSULTANT  OR  ACADEMIC RESEARCHER OR TEACHER OR LAWYER OR HOLDING A
    7  SIMILAR POSITION REQUIRING EXPERTISE IN THE FIELD OF PRIVACY AND  INFOR-
    8  MATION  TECHNOLOGY  FOR  A PERIOD OF FIVE YEARS OR MORE. THE DIRECTOR OF
    9  THE OFFICE OF INFORMATION TECHNOLOGY SERVICES  SHALL  BE  CHAIR  OF  THE
   10  ADVISORY COMMITTEE.
   11    EACH  MEMBER  OF  THE  COMMITTEE  SHALL  BE APPOINTED FOR TERMS OF TWO
   12  YEARS.  ANY MEMBER MAY BE REAPPOINTED FOR ADDITIONAL TERMS. THE ADVISORY
   13  COMMITTEE SHALL MEET NO LESS THAN THREE TIMES EACH YEAR, OR MORE IF  ITS
   14  BUSINESS  REQUIRES. THE ADVISORY COMMITTEE SHALL ADVISE THE COMMISSIONER
   15  ON ALL MATTERS RELATING TO PRIVACY CONCERNS, AND ON SUCH  OTHER  MATTERS
   16  AS  THE  COMMISSIONER  SHALL  REQUEST. MEMBERS OF THE ADVISORY COMMITTEE
   17  SHALL RECEIVE NO COMPENSATION BUT SHALL BE ENTITLED TO ACTUAL AND NECES-
   18  SARY TRAVELING AND OTHER EXPENSES WHILE ENGAGED IN  THE  PERFORMANCE  OF
   19  SUCH MEMBER'S DUTIES HEREUNDER.
   20    THE COMMITTEE SHALL HAVE THE FOLLOWING FUNCTIONS, POWERS AND DUTIES:
   21    1.  TO  REVIEW  AND  COMMENT, AS IT DEEMS APPROPRIATE, ON ALL PROPOSED
   22  RULES AND REGULATIONS OF THE OFFICE;
   23    2. TO PROVIDE GUIDANCE AND SUPPORT TO THE OFFICE IN THE DEVELOPMENT OF
   24  PRIVACY POLICIES OR RECOMMENDATIONS;
   25    3. TO MAKE RECOMMENDATIONS CONCERNING SURVEYS AND REPORTS; AND
   26    4. TO PERFORM SUCH OTHER ACTS AS MAY BE ASSIGNED BY THE CHAIR  OF  THE
   27  COMMITTEE  WHICH ARE NECESSARY OR APPROPRIATE TO CARRY OUT THE FUNCTIONS
   28  OF THE COMMITTEE.
   29    S 205-C. RESPONSIBILITIES. THE OFFICE OF PRIVACY PROTECTION SHALL:
   30    1. RECEIVE COMPLAINTS CONCERNING VIOLATIONS OF ARTICLES  THIRTY-NINE-H
   31  AND  THIRTY-NINE-F  OF  THE GENERAL BUSINESS LAW AND VIOLATIONS OF OTHER
   32  PRIVACY-RELATED LAWS, INCLUDING IDENTITY THEFT AND IDENTIFY  FRAUD,  AND
   33  SECTIONS    THREE    HUNDRED    NINETY-NINE-DDD    AND   THREE   HUNDRED
   34  NINETY-NINE-DDDD OF THIS CHAPTER, AND SHALL  REFER,  WHERE  APPROPRIATE,
   35  SUCH COMPLAINTS TO LOCAL, STATE, OR FEDERAL AGENCIES WHERE SUCH AGENCIES
   36  ARE  AVAILABLE  TO  ASSIST,  AND  REQUEST  REGULAR UPDATES ON ACTIVITIES
   37  UNDERTAKEN DUE TO SUCH REFERRALS FROM SUCH AGENCIES.  SUCH  AGENCIES  TO
   38  WHICH  COMPLAINTS  HAVE BEEN REFERRED SHALL RESPOND TO ANY SUCH REQUESTS
   39  FOR UPDATES EXPEDITIOUSLY OR SHALL PROVIDE THE  OFFICE  WITH  A  WRITTEN
   40  SUMMARY OF REASONS WHY IT COULD NOT COMPLY WITH THE REQUEST;
   41    2. PROVIDE INFORMATION, AND REFERRAL TO INDIVIDUALS AND ENTITIES ABOUT
   42  OBTAINING,  COMPILING,  MAINTAINING,  USING, DISCLOSING, OR DISPOSING OF
   43  PERSONALLY IDENTIFIABLE INFORMATION IN A LAWFUL MANNER PURSUANT TO ARTI-
   44  CLES THIRTY-NINE-H AND THIRTY-NINE-F OF THIS CHAPTER, INCLUDING THE  USE
   45  OF  AND DISCLOSURE OF SOCIAL SECURITY NUMBERS PURSUANT TO SECTIONS THREE
   46  HUNDRED NINETY-NINE-DDD AND THREE HUNDRED NINETY-NINE-DDDD OF THE GENER-
   47  AL BUSINESS LAW;
   48    3. DEVELOP INFORMATIONAL AND EDUCATIONAL  PROGRAMS  AND  MATERIALS  TO
   49  FOSTER AND IMPROVE PUBLIC UNDERSTANDING CONCERNING THE ISSUES RELATED TO
   50  PRIVACY; AND
   51    4.  ASSIST  AS  REQUESTED IN THE TRAINING OF LOCAL, STATE, AND FEDERAL
   52  LAW ENFORCEMENT AGENCIES REGARDING IDENTITY THEFT AND OTHER  PRIVACY-RE-
   53  LATED CRIMES.
   54    S  205-D.  CONSTRUCTION.  THE  AUTHORITY  OF  THE  OFFICE  OF  PRIVACY
   55  PROTECTION TO ADOPT REGULATIONS UNDER  THIS  ARTICLE  SHALL  BE  LIMITED
   56  EXCLUSIVELY TO THOSE REGULATIONS NECESSARY TO IMPLEMENT SUBDIVISIONS ONE
       S. 7358                             3
    1  THROUGH  FOUR  OF  SECTION  TWO  HUNDRED FIVE-C OF THIS ARTICLE. NOTHING
    2  CONTAINED HEREIN SHALL BE DEEMED TO APPLY  TO  THE  LEGISLATURE  OR  THE
    3  JUDICIARY,  OR, EXCEPT AS PROVIDED IN ARTICLES THIRTY-NINE-F AND THIRTY-
    4  NINE-H  OF  THIS  CHAPTER,  TO A STATE AGENCY AS SUCH TERM IS DEFINED BY
    5  SECTION ONE HUNDRED ONE OF THE NEW YORK STATE TECHNOLOGY LAW.
    6    S 205-E. REPORT. THE OFFICE SHALL REPORT ANNUALLY ON THE THIRTIETH  OF
    7  JANUARY  EACH  YEAR  TO  THE  GOVERNOR,  THE  TEMPORARY PRESIDENT OF THE
    8  SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS OF THE  SENATE
    9  BEGINNING  IN  THE  FIRST CALENDAR YEAR AFTER THE EFFECTIVE DATE OF THIS
   10  SECTION.
   11    1. THE NUMBER OF COMPLAINTS RECEIVED AND THE REFERRALS MADE BY CATEGO-
   12  RY OR CLASS OF COMPLAINT.
   13    2. THE NUMBERS OF INVESTIGATIONS UNDERTAKEN BY THE OFFICE, THE CATEGO-
   14  RIES OF SUCH INVESTIGATIONS, AND THE NUMBERS OF  CLOSED  CASES  OF  SUCH
   15  INVESTIGATIONS.
   16    3.  RECOMMENDATIONS CONCERNING IMPROVEMENTS IN PRIVACY LAWS AND PROCE-
   17  DURES.
   18    S 2. Section 399-ddd of the general business law, as added by  chapter
   19  372 of the laws of 2012, is renumbered section 399-dddd.
   20    S  3. Article 40 and sections 900 and 901 of the general business law,
   21  as renumbered by chapter 407 of the laws of 1973, are renumbered article
   22  45 and sections 950 and 951.
   23    S 4.  The general business law is amended by adding a new article 39-H
   24  to read as follows:
   25                                ARTICLE 39-H
   26                       NEW YORK STATE ONLINE PRIVACY ACT
   27  SECTION 900. SHORT TITLE.
   28          901. DEFINITIONS.
   29          902. PURPOSE, APPLICATION, EXCEPTIONS, AND WAIVER.
   30          903. REQUIREMENT FOR PRIVACY POLICY AND CONFIDENTIALITY.
   31          904. PRIVACY PROTECTION FOR MINORS.
   32          905. RESPONSIBILITIES CONCERNING  PRIVACY  POLICIES  AND  SOCIAL
   33                 MEDIA.
   34          906. REQUIREMENT TO REPORT A SECURITY BREACH.
   35          907. LIABILITY FOR FAILURE TO COMPLY.
   36          908. ENFORCEMENT.
   37    S  900.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
   38  THE "NEW YORK STATE ONLINE PRIVACY ACT".
   39    S 901. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
   40  HAVE THE FOLLOWING MEANINGS:
   41    1. "COLLECT" MEANS TO RECEIVE AND  STORE  INFORMATION,  INCLUDING  VIA
   42  COOKIE TECHNOLOGY, FOR PURPOSES OF RETRIEVAL IN ORDER TO INITIATE COMMU-
   43  NICATION WITH OR MAKE DETERMINATIONS ABOUT THE PERSON WHO IS THE SUBJECT
   44  OF SUCH INFORMATION.
   45    2.  "COLLEGE"  AND  "UNIVERSITY"  SHALL  HAVE THE SAME MEANINGS AS SET
   46  FORTH IN SECTION TWO OF THE EDUCATION LAW.
   47    3. "DISCLOSE" MEANS  TO  REVEAL,  RELEASE,  TRANSFER,  DISSEMINATE  OR
   48  OTHERWISE  COMMUNICATE  INFORMATION ORALLY, IN WRITING, OR BY ELECTRONIC
   49  OR OTHER MEANS, TO SOME PERSON OR ENTITY OTHER THAN TO THE PERSON WHO IS
   50  THE SUBJECT OF SUCH INFORMATION.
   51    4. "MINOR" MEANS A NATURAL UNEMANCIPATED PERSON SIXTEEN YEARS  OF  AGE
   52  OR LESS WHO RESIDES IN THIS STATE AND IS NOT OTHERWISE INCLUDED IN RULES
   53  ISSUED BY THE FEDERAL TRADE COMMISSION PURSUANT TO THE CHILDREN'S ONLINE
   54  PRIVACY PROTECTION ACT.
   55    5. "OPERATOR" MEANS A PERSON OR ENTITY THAT OWNS OR OPERATES A WEBSITE
   56  OR ONLINE SERVICE THAT COLLECTS PERSONALLY IDENTIFIABLE INFORMATION FROM
       S. 7358                             4
    1  A  USER RESIDING IN THIS STATE WHO USES OR VISITS SUCH WEBSITE OR ONLINE
    2  SERVICE. IT DOES NOT INCLUDE A THIRD PARTY THAT HOSTS BUT DOES NOT OWN A
    3  WEBSITE OR ONLINE SERVICE ON BEHALF OF AN  OPERATOR  OR  THAT  PROCESSES
    4  INFORMATION ON BEHALF OF AN OWNER OR OPERATOR.
    5    6.  "PERSONALLY  IDENTIFIABLE  INFORMATION" INCLUDES THE CATEGORIES OF
    6  INFORMATION DESCRIBED IN THIS SUBDIVISION, BUT DOES NOT INCLUDE PUBLICLY
    7  AVAILABLE INFORMATION LAWFULLY MADE AVAILABLE TO THE GENERAL PUBLIC FROM
    8  FEDERAL, STATE, OR LOCAL GOVERNMENT RECORDS.    PERSONALLY  IDENTIFIABLE
    9  INFORMATION  INCLUDES  BUT  IS NOT LIMITED TO THE FOLLOWING ITEMS OR ANY
   10  COMBINATION THEREOF:
   11    (A) FIRST NAME;
   12    (B) LAST NAME;
   13    (C) HOME OR OTHER PHYSICAL ADDRESS;
   14    (D) AGE;
   15    (E) DATE OF BIRTH;
   16    (F) NAMES, AGE, GENDER, TELEPHONE NUMBER OR ELECTRONIC MAIL  OR  OTHER
   17  ADDRESSES OF CHILDREN;
   18    (G)  HEIGHT,  WEIGHT,  RACE,  RELIGION, OCCUPATION, OR POLITICAL PARTY
   19  AFFILIATION;
   20    (H) E-MAIL ADDRESS;
   21    (I) TELEPHONE NUMBER;
   22    (J) SOCIAL SECURITY NUMBER;
   23    (K) INFORMATION PERTAINING  TO  BANK  ACCOUNTS,  INVESTMENT  ACCOUNTS,
   24  CREDIT OR DEBIT CARDS, OR BALANCES OR ACCOUNT NUMBERS OF ANY OF THESE;
   25    (L)  ANY  SECURITY  CODE,  ACCESS  CODE, OR PASSWORD THAT WOULD PERMIT
   26  ACCESS TO AN INDIVIDUAL'S FINANCIAL ACCOUNT OR OTHER ONLINE ACCOUNT;
   27    (M) MEDICAL INFORMATION, INCLUDING ANY INFORMATION REGARDING AN  INDI-
   28  VIDUAL'S  MEDICAL  HISTORY,  MENTAL  OR  PHYSICAL  CONDITION, OR MEDICAL
   29  TREATMENT OR DIAGNOSIS BY A HEALTH CARE PROFESSIONAL,  INCLUDING  DRUGS,
   30  THERAPIES, OR MEDICAL PRODUCTS OR EQUIPMENT USED; AND
   31    (N)  HEALTH  INSURANCE  INFORMATION,  INCLUDING AN INDIVIDUAL'S HEALTH
   32  INSURANCE POLICY NUMBER OR SUBSCRIBER IDENTIFICATION NUMBER, ANY  UNIQUE
   33  IDENTIFIER  USED BY A HEALTH CARE INSURER TO IDENTIFY THE INDIVIDUAL, OR
   34  ANY INFORMATION IN  AN  INDIVIDUAL'S  APPLICATION  AND  CLAIMS  HISTORY,
   35  INCLUDING ANY APPEALS RECORDS.
   36    7.  "POSTED" MEANS INFORMATION THAT CAN BE ACCESSED BY ANOTHER USER OR
   37  USERS IN ADDITION TO THE ORIGINAL USER WHO POSTED THE INFORMATION, IRRE-
   38  SPECTIVE OF WHETHER SUCH ADDITIONAL USER OR USERS ARE  REGISTERED  USERS
   39  OF THE WEBSITE OR ONLINE SERVICE WHERE THE INFORMATION IS POSTED.
   40    8. "PUBLICLY POST" OR "PUBLICLY DISPLAY" MEANS TO INTENTIONALLY COMMU-
   41  NICATE OR OTHERWISE MAKE AVAILABLE TO THE GENERAL PUBLIC.
   42    9.  "CONSPICUOUSLY  POST"  WITH  RESPECT  TO A PRIVACY POLICY INCLUDES
   43  POSTING ON OR THROUGH ANY OF THE FOLLOWING:
   44    (A) A WEB PAGE ON WHICH THE PRIVACY POLICY IS POSTED IF THE  WEB  PAGE
   45  IS  THE HOMEPAGE OR FIRST SIGNIFICANT PAGE A USER ENCOUNTERS ON ENTERING
   46  THE WEBSITE;
   47    (B) AN ICON OR TEXT LINK THAT HYPERLINKS TO A WEB PAGE  ON  WHICH  THE
   48  PRIVACY  POLICY IS POSTED, IF THE ICON IS LOCATED ON THE HOMEPAGE OR THE
   49  FIRST SIGNIFICANT PAGE AFTER ENTERING  THE  WEBSITE,  AND  IF  THE  ICON
   50  CONTAINS  THE  WORDS  "PRIVACY  POLICY." THE ICON SHALL ALSO USE A COLOR
   51  THAT CONTRASTS WITH THE BACKGROUND COLOR OF THE WEB PAGE AND IS  SET  IN
   52  TYPE  EQUAL  TO  OR  GREATER  IN  SIZE  THAN THE SURROUNDING TEXT ON THE
   53  WEBSITE OR IS OTHERWISE DISTINGUISHABLE. IF A TEXT LINK, THEN  THE  LINK
   54  MUST  INCLUDE  THE WORDS "PRIVACY POLICY" IN CAPITAL LETTERS EQUAL TO OR
   55  GREATER IN SIZE AND IN FONT AND COLOR THAT CONTRASTS WITH THE  SURROUND-
   56  ING TEXT; OR
       S. 7358                             5
    1    (C)  IN THE CASE OF AN ONLINE SERVICE, ANY OTHER REASONABLY ACCESSIBLE
    2  MEANS OF MAKING THE PRIVACY POLICY AVAILABLE FOR  USERS  OF  THE  ONLINE
    3  SERVICE.
    4    10.  "PRIVACY  POLICY"  MEANS  A  POLICY  CONCERNING  THE  PRIVACY  OF
    5  PERSONALLY IDENTIFIABLE INFORMATION COLLECTED BY AN OPERATOR THROUGH ITS
    6  WEBSITE OR ONLINE SERVICE THAT DOES THE FOLLOWING:
    7    (A) IDENTIFIES THE CATEGORIES OF PERSONALLY  IDENTIFIABLE  INFORMATION
    8  THAT  THE  OPERATOR COLLECTS THROUGH THE WEBSITE OR ONLINE SERVICE ABOUT
    9  USERS WHO USE OR VISIT ITS WEBSITE OR ONLINE SERVICE AND THE USE OF THAT
   10  INFORMATION;
   11    (B) STATES THE MEANS BY WHICH PERSONALLY IDENTIFIABLE  INFORMATION  IS
   12  COLLECTED  AND WHETHER SUCH COLLECTION OCCURS ACTIVELY OR PASSIVELY, AND
   13  WHETHER SUCH COLLECTION IS VOLUNTARY AND THE CONSEQUENCES, IF ANY, OF  A
   14  REFUSAL TO PROVIDE THE INFORMATION;
   15    (C)  IDENTIFIES THE CATEGORIES OF THIRD-PARTY PERSONS OR ENTITIES WITH
   16  WHOM THE OPERATOR MAY SHARE PERSONALLY IDENTIFIABLE INFORMATION;
   17    (D) DISCLOSES WHETHER OTHER PARTIES MAY COLLECT  PERSONALLY  IDENTIFI-
   18  ABLE  INFORMATION ABOUT A USER'S ACTIVITIES OVER TIME AND ACROSS DIFFER-
   19  ENT WEBSITES AND ONLINE SERVICES WHEN SUCH USER CONNECTED TO THE  OPERA-
   20  TOR'S WEBSITE OR SERVICE;
   21    (E)  STATES  WHETHER ANY PERSONALLY IDENTIFIABLE INFORMATION COLLECTED
   22  WILL BE RETAINED BY THE OPERATOR, AND, IF SO,  THE  CATEGORIES  OF  SUCH
   23  PERSONALLY IDENTIFIABLE INFORMATION RETAINED AND THE PERIOD OF TIME OVER
   24  WHICH  IT  WILL BE RETAINED, THE STEPS THE OPERATOR TAKES TO PROTECT THE
   25  CONFIDENTIALITY AND INTEGRITY OF THE INFORMATION, INCLUDING THE  CATEGO-
   26  RIES OF CONTROLS OF CLOUD SECURITY ARCHITECTURE IF INFORMATION IS STORED
   27  ON  THE CLOUD, AND THE OPERATOR'S PROCEDURE FOR DESTROYING SUCH INFORMA-
   28  TION ON TERMINATION OF THE USER'S SUBSCRIPTION OR CANCELLATION OF ACCESS
   29  TO OR USE OF THE WEBSITE OR THE ONLINE SERVICE;
   30    (F) DESCRIBES THE PROCEDURES BY WHICH A USER MAY GAIN ACCESS TO HIS OR
   31  HER PERSONALLY IDENTIFIABLE INFORMATION, AND WHETHER THE OPERATOR  MAIN-
   32  TAINS  A  PROCESS  FOR A USER TO REVIEW AND MAKE, OR REQUEST AND OBTAIN,
   33  CHANGES  TO  ANY  SUCH  PERSONALLY  IDENTIFIABLE  INFORMATION  COLLECTED
   34  THROUGH  THE  WEBSITE OR ONLINE SERVICE. IF THERE IS SUCH A PROCESS, THE
   35  OPERATOR SHALL PROVIDE A DESCRIPTION OF THAT  PROCESS.  IF  AN  OPERATOR
   36  COLLECTS SUCH INFORMATION BUT DOES NOT PROVIDE A MEANS FOR A USER OF ITS
   37  WEBSITE OR ONLINE SERVICE TO OBTAIN SUCH CHANGES, IT SHALL CONSPICUOUSLY
   38  POST  THE STATEMENT, "THIS WEBSITE OR ONLINE SERVICE COLLECTS PERSONALLY
   39  IDENTIFIABLE INFORMATION FROM ITS USERS AND DOES NOT ALLOW THE  USER  TO
   40  REVIEW OR CHANGE SUCH INFORMATION";
   41    (G)  DESCRIBES  THE  PROCESS  BY  WHICH THE OPERATOR NOTIFIES USERS OF
   42  MATERIAL CHANGES TO THE OPERATOR'S PRIVACY POLICY FOR  THAT  WEBSITE  OR
   43  ONLINE SERVICE; AND
   44    (H)  DISCLOSES HOW THE OPERATOR RESPONDS TO WEB BROWSER "DO NOT TRACK"
   45  SIGNALS OR OTHER MECHANISMS THAT ALLOW USERS TO EXERCISE CHOICE  REGARD-
   46  ING  THE  COLLECTION OF PERSONALLY IDENTIFIABLE INFORMATION. AN OPERATOR
   47  MAY SATISFY THIS REQUIREMENT BY PROVIDING A CLEAR AND CONSPICUOUS HYPER-
   48  LINK IN THE OPERATOR'S PRIVACY POLICY TO AN ONLINE LOCATION CONTAINING A
   49  DESCRIPTION, INCLUDING THE EFFECTS, OF ANY PROGRAM OR PROTOCOL THE OPER-
   50  ATOR FOLLOWS THAT OFFERS THE USER TO EXERCISE SUCH CHOICE.
   51    11. "SOCIAL MEDIA" MEANS AN INTERNET-BASED SERVICE THAT  ALLOWS  INDI-
   52  VIDUALS TO ENGAGE IN ACTIVITIES WHICH INCLUDE BUT ARE NOT LIMITED TO THE
   53  FOLLOWING:  CONSTRUCT  A  PUBLIC OR SEMI-PUBLIC PROFILE WITHIN A BOUNDED
   54  SYSTEM, CREATED BY THE SERVICE; CREATE A LIST OF OTHER USERS  WITH  WHOM
   55  THEY  SHARE  A CONNECTION WITHIN THE SYSTEM; AND VIEW AND NAVIGATE THEIR
   56  LIST OF CONNECTIONS AND THOSE MADE BY OTHERS WITHIN THE SYSTEM.   SOCIAL
       S. 7358                             6
    1  MEDIA INCLUDES FACEBOOK, E-MAIL, AND TWITTER ACCOUNTS, AND OTHER SIMILAR
    2  SERVICES,  AND WEBSITES AND ONLINE SERVICES WHICH INCLUDE THE ACTIVITIES
    3  DESCRIBED IN THIS SUBDIVISION, AND THE DIGITAL MEDIA CONTAINED IN  THOSE
    4  SITES, INCLUDING PHOTOS, VIDEOS, TEXTS AND E-MAIL MESSAGES.
    5    12.  "SECURITY  BREACH"  OR "BREACH OF SECURITY" OF THE SYSTEM HAS THE
    6  SAME MEANING AS "BREACH OF SECURITY OF THE SYSTEM" AS DEFINED IN ARTICLE
    7  THIRTY-NINE-F OF THIS CHAPTER.
    8    13. "USER" MEANS AN INDIVIDUAL WHO  USES  THE  INTERNET  TO  ACCESS  A
    9  WEBSITE OR ONLINE SERVICE OR SOCIAL MEDIA.
   10    14.  "WEBSITE  OR ONLINE SERVICE" MEANS AND INCLUDES A WEBSITE, ONLINE
   11  SERVICE, ONLINE APPLICATION, MOBILE APPLICATION, ELECTRONIC  SERVICE  OR
   12  ACCOUNT,  THAT CONTAINS ELECTRONIC CONTENT, INCLUDING BUT NOT LIMITED TO
   13  VIDEOS, STILL PHOTOGRAPHS, BLOGS, VIDEO  BLOGS,  PODCASTS,  INSTANT  AND
   14  TEXT  MESSAGES, E-MAIL, ONLINE SERVICES OR ACCOUNTS, OR WEBSITE PROFILES
   15  OR LOCATIONS.
   16    15. "WEBSITE OR ONLINE SERVICE DIRECTED TO MINORS" MEANS A WEBSITE  OR
   17  ONLINE  SERVICE  OR  PORTION THEREOF CREATED, DEVELOPED, OR USED FOR THE
   18  PURPOSE OF REACHING AN AUDIENCE PREDOMINANTLY COMPRISED OF  MINORS,  AND
   19  NOT  DESIGNED  OR  INTENDED  FOR  A  MORE  GENERAL AUDIENCE COMPRISED OF
   20  ADULTS; PROVIDED, HOWEVER, THAT REFERRING OR LINKING VIA  SUCH  INFORMA-
   21  TION LOCATION TOOLS AS A DIRECTORY, INDEX, REFERENCE, POINTER, OR HYPER-
   22  TEXT  LINK  TO  A WEBSITE, ONLINE SERVICE, ONLINE APPLICATION, OR MOBILE
   23  APPLICATION DIRECTED TO MINORS SHALL  NOT  BE  DEEMED  TO  QUALIFY  SUCH
   24  WEBSITE  OR  ONLINE  SERVICE  AS ONE CREATED, DEVELOPED, OR USED FOR THE
   25  PURPOSE OF REACHING AN AUDIENCE PREDOMINANTLY COMPRISED OF MINORS.
   26    S 902. PURPOSE, APPLICATION, EXCEPTIONS, AND WAIVER. 1. THE PURPOSE OF
   27  THIS ARTICLE IS TO HELP SAFEGUARD THE PRIVACY OF PERSONALLY IDENTIFIABLE
   28  INFORMATION OF USERS OF WEBSITES AND ONLINE  SERVICES  BY:  ESTABLISHING
   29  REQUIREMENTS  FOR  THE CONFIDENTIAL TREATMENT OF SUCH INFORMATION BY THE
   30  OPERATORS OF WEBSITES AND ONLINE SERVICES; REQUIRING DISCLOSURE TO USERS
   31  OF THE PRIVACY POLICY OF SUCH WEBSITES OR ONLINE  SERVICES;  PROVIDE  TO
   32  USERS  WHO  ARE  MINORS  OVER  THE  AGE  OF THIRTEEN THE SAME PROTECTION
   33  AFFORDED BY THE RULES ISSUED BY THE FEDERAL TRADE COMMISSION PURSUANT TO
   34  THE CHILDREN'S ONLINE PRIVACY PROTECTION ACT FOR CHILDREN UNDER THE  AGE
   35  OF  THIRTEEN;  TO  RESTRICT  ACCESS  TO SOCIAL NETWORKING INFORMATION OF
   36  USERS BY CERTAIN EDUCATIONAL  INSTITUTIONS  AND  EMPLOYERS;  TO  REQUIRE
   37  IMMEDIATE  REPORTING  OF  A  SECURITY  BREACH OF PERSONALLY IDENTIFIABLE
   38  INFORMATION; AND TO ESTABLISH PENALTIES FOR VIOLATIONS.
   39    2. THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO  ANY  WEBSITE  OR
   40  ONLINE SERVICE THAT DOES NOT COLLECT PERSONALLY IDENTIFIABLE INFORMATION
   41  CONCERNING  USERS,  ANY  AGENCY OR POLITICAL SUBDIVISION OF THE STATE OR
   42  THE FEDERAL GOVERNMENT, OR A  FINANCIAL  INSTITUTION  THAT  HAS  ADOPTED
   43  SAFEGUARDS  THAT  COMPLY  WITH  THE  STANDARDS  ESTABLISHED  PURSUANT TO
   44  SECTION 501(B) OF THE GRAMM-LEACH-BLILEY ACT OF 1999, 15 USC  6801.  ANY
   45  GROUP  DESCRIBED  IN THIS SUBDIVISION MAY CONSPICUOUSLY POST A STATEMENT
   46  ON ITS WEBSITE OR WITH OR THROUGH ITS ONLINE SERVICE THAT STATES THAT IT
   47  DOES NOT COLLECT PERSONALLY IDENTIFIABLE INFORMATION OR IS  NOT  COVERED
   48  BY THE PROVISIONS OF THIS ARTICLE WITH A STATEMENT AS TO THE REASONS FOR
   49  SUCH EXCLUSION.
   50    3.  ANY  OTHER PROVISION OF THIS ARTICLE TO THE CONTRARY NOTWITHSTAND-
   51  ING, AN OPERATOR MAY DISCLOSE PERSONALLY IDENTIFIABLE INFORMATION  ON  A
   52  LIMITED BASIS IF THE DISCLOSURE IS MADE:
   53    (A)  PURSUANT  TO  A  COURT ORDER, A GRAND JURY SUBPOENA, OR OTHERWISE
   54  PURSUANT TO REQUIREMENTS OF LAW;
   55    (B) TO A COURT IN A CIVIL ACTION FOR CONVERSION COMMENCED BY THE OPER-
   56  ATOR OR IN A CIVIL ACTION TO ENFORCE COLLECTION OF  UNPAID  SUBSCRIPTION
       S. 7358                             7
    1  FEES  OR  PURCHASE  AMOUNTS,  AND  THEN  ONLY TO THE EXTENT NECESSARY TO
    2  ESTABLISH THE FACT OF THE SUBSCRIPTION DELINQUENCY  OR  PURCHASE  AGREE-
    3  MENT, AND WITH APPROPRIATE SAFEGUARDS AGAINST UNAUTHORIZED DISCLOSURE;
    4    (C)  FOR THE SOLE PURPOSE OF VALIDATING THE IDENTITY OR CREDIT-WORTHI-
    5  NESS OF THE USER OR FOR A FRAUD INVESTIGATION WHEN MADE TO ANOTHER ENTI-
    6  TY OR WHICH HAS THE EXPERTISE AND ABILITY TO PROVIDE SUCH VALIDATION  OR
    7  TO  A  BUSINESS SUBSIDIARY OR RELATED ENTITY IF RESTRICTED TO DISCLOSURE
    8  SOLELY FOR A LEGITIMATE BUSINESS REASON;
    9    (D) AT THE REQUEST OF THE USER;
   10    (E) WHEN THE INFORMATION IS TO  BE  USED  FOR  ANY  BUSINESS  FUNCTION
   11  PERMITTED  OR  ALLOWED  UNDER  THE  GRAMM LEACH BLILEY ACT, P.L. 106-102
   12  (1999) BY ANY ENTITY REGULATED BY SUCH ACT;
   13    (F) IN CONNECTION WITH A REQUEST FOR CREDIT OR  A  CREDIT  TRANSACTION
   14  INITIATED  BY  THE  USER  OR  IN  CONNECTION WITH A LAWFUL REQUEST FOR A
   15  CONSUMER REPORT OR INVESTIGATIVE CONSUMER  REPORT,  AS  SUCH  TERMS  ARE
   16  DEFINED IN SECTION THREE HUNDRED EIGHTY-A OF THIS CHAPTER;
   17    (G)  FOR  PURPOSES  OF EMPLOYMENT, INCLUDING IN THE COURSE OF ADMINIS-
   18  TRATION OF A CLAIM, BENEFIT, OR PROCEDURE RELATED  TO  THE  INDIVIDUAL'S
   19  EMPLOYMENT  BY  THE  PERSON, INCLUDING THE INDIVIDUAL'S TERMINATION FROM
   20  EMPLOYMENT, RETIREMENT, INJURY SUFFERED DURING THE COURSE OF EMPLOYMENT,
   21  OR TO CHECK ON AN UNEMPLOYMENT INSURANCE CLAIM OF THE INDIVIDUAL; OR
   22    (H) SOLELY FOR STATISTICAL PURPOSES AND IS IN A FORM  THAT  CANNOT  BE
   23  USED TO IDENTIFY ANY PARTICULAR PERSON.
   24    4. THE PROVISIONS OF THIS ARTICLE SHALL BE EXCLUSIVE AND SHALL PREEMPT
   25  ANY  PROVISIONS  OF  LOCAL LAW, ORDINANCE OR CODE, AND NO LOCALITY SHALL
   26  IMPOSE REQUIREMENTS THAT ARE INCONSISTENT WITH OR MORE RESTRICTIVE  THAN
   27  THOSE  SET  FORTH  IN  THIS  ARTICLE.  WITH  RESPECT  TO SOCIAL SECURITY
   28  NUMBERS, THE PROVISIONS OF SECTION  THREE  HUNDRED  NINETY-NINE-DDD  AND
   29  THREE HUNDRED NINETY-NINE-DDDD OF THIS CHAPTER SHALL BE CONTROLLING.
   30    5.  ANY  WAIVER  OF  A PROVISION OF THIS ARTICLE IS CONTRARY TO PUBLIC
   31  POLICY AND IS VOID AND UNENFORCEABLE.
   32    S 903. REQUIREMENT FOR PRIVACY POLICY AND CONFIDENTIALITY. 1. AN OPER-
   33  ATOR SHALL CONSPICUOUSLY POST ITS PRIVACY POLICY AND THE EFFECTIVE  DATE
   34  OF  THE POLICY ON ITS WEBSITE, OR IN THE CASE OF AN ONLINE SERVICE, MAKE
   35  THE POLICY AVAILABLE VIA E-MAIL OR OTHER  ACCESSIBLE  NOTIFICATION  WHEN
   36  THE  USER  SIGNS  INTO THE SERVICE. THE NOTICE SHALL INCLUDE A STATEMENT
   37  THAT A USER MAY REQUEST, IN WRITING OR BY E-MAIL, TO  HAVE  HIS  OR  HER
   38  E-MAIL ADDRESS KEPT CONFIDENTIAL AS REQUIRED BY THIS ARTICLE.
   39    2.   EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE OR AUTHORIZED BY ANY
   40  OTHER SECTION OF LAW, AN OPERATOR SHALL KEEP CONFIDENTIAL AND SHALL  NOT
   41  SHARE  THE FOLLOWING ITEMS OF INFORMATION WITH ANY UNAUTHORIZED PARTY OR
   42  ENTITY:
   43    (A) ALL PERSONALLY IDENTIFIABLE INFORMATION CONCERNING A  USER,  OTHER
   44  THAN  THE  E-MAIL ADDRESS OF THE USER, UNLESS THE USER GIVES PERMISSION,
   45  IN WRITING OR BY E-MAIL, TO THE OPERATOR TO DISCLOSE  SUCH  INFORMATION;
   46  AND
   47    (B) THE E-MAIL ADDRESS OF THE USER, IF THE USER SO REQUESTS IN WRITING
   48  OR  BY  E-MAIL.  UPON  RECEIVING  SUCH A REQUEST, AN OPERATOR SHALL KEEP
   49  CONFIDENTIAL AND SHALL NOT SHARE WITH ANY UNAUTHORIZED PARTY  OR  ENTITY
   50  THE  E-MAIL  ADDRESS  OF  THE  USER, UNLESS THE USER GIVES PERMISSION IN
   51  WRITING OR BY E-MAIL, TO THE OPERATOR TO DISCLOSE SUCH E-MAIL ADDRESS.
   52    3. OTHER PROVISIONS OF THIS ARTICLE TO THE  CONTRARY  NOTWITHSTANDING,
   53  THE  PROVISIONS  OF  SECTIONS  THREE  HUNDRED  NINETY-NINE-DDD AND THREE
   54  HUNDRED NINETY-NINE-DDDD OF  THIS  CHAPTER  CONCERNING  SOCIAL  SECURITY
   55  NUMBERS  SHALL APPLY TO WEBSITES AND ONLINE SERVICES, AND SHALL MEAN AND
   56  INCLUDE PORTIONS OF SOCIAL  SECURITY  NUMBERS.  ANY  PROVISION  IN  SUCH
       S. 7358                             8
    1  SECTIONS  OF  THIS  CHAPTER ALLOWING FOR DISCLOSURE OF A SOCIAL SECURITY
    2  NUMBER UPON THE CONSENT OF AN INDIVIDUAL SHALL BE  DEEMED  TO  MEAN  THE
    3  EXPRESS CONSENT OF THE INDIVIDUAL.
    4    4.  AN  OPERATOR  SHALL  DESTROY, ERASE, OR DELETE ANY COMPUTER FILES,
    5  DOCUMENTS, OR  ELECTRONIC  RECORDS  CONTAINING  PERSONALLY  IDENTIFIABLE
    6  INFORMATION  OF  A  USER  WHO  CANCELS  THE  ONLINE  SERVICE  OR WEBSITE
    7  SUBSCRIPTION, AND SHALL NOTIFY THE USER WHO CANCELS THE  ONLINE  SERVICE
    8  OR  WEBSITE  SUBSCRIPTION  AND SHALL NOTIFY THE USER OF SUCH DESTRUCTION
    9  WITHIN FIVE DAYS OF SUCH CANCELLATION.
   10    5. THE VOLUNTARY DISCLOSURE OF PERSONALLY IDENTIFIABLE INFORMATION  TO
   11  A  WEBSITE  OR ONLINE SERVICE OF AN OPERATOR, WHETHER SOLICITED OR UNSO-
   12  LICITED, SHALL BE DEEMED TO CONSTITUTE CONSENT TO THE COLLECTION OF SUCH
   13  INFORMATION BY THE OPERATOR SOLELY FOR THE PURPOSES FOR WHICH  THE  USER
   14  DISCLOSED  IT,  AS REASONABLY ASCERTAINABLE FROM THE NATURE AND TERMS OF
   15  THE DISCLOSURE, BUT SHALL NOT BE DEEMED TO CONSTITUTE CONSENT TO DISCLO-
   16  SURE OF SUCH PERSONALLY IDENTIFIABLE  INFORMATION  TO  ANY  OTHER  PARTY
   17  ABSENT  EXPRESS  CONSENT  AS  IS  REQUIRED  BY  THIS ARTICLE OR WHICH IS
   18  EXPRESSLY OTHERWISE ALLOWED BY THIS ARTICLE.
   19    S 904. PRIVACY PROTECTION FOR MINORS. AN  OPERATOR  OF  A  WEBSITE  OR
   20  ONLINE  SERVICE WHICH IS REQUIRED TO COMPLY WITH THE RULES ISSUED BY THE
   21  FEDERAL TRADE COMMISSION  PURSUANT  TO  THE  CHILDREN'S  ONLINE  PRIVACY
   22  PROTECTION  ACT  WITH  RESPECT TO MINORS UNDER THE AGE OF THIRTEEN SHALL
   23  PROVIDE THE SAME LEVEL OF ACTIVITY, PROTECTION, AND COMPLIANCE TO MINORS
   24  AS DEFINED HEREIN IRRESPECTIVE OF WHETHER SUCH WEBSITE OR ONLINE SERVICE
   25  OPERATES SOLELY WITHIN THE STATE.
   26    S 905. RESPONSIBILITIES CONCERNING PRIVACY POLICIES AND SOCIAL  MEDIA.
   27  1.    AN  EMPLOYER SHALL NOT REQUIRE OR REQUEST AN EMPLOYEE OR APPLICANT
   28  FOR EMPLOYMENT TO DISCLOSE A USERNAME OR PASSWORD  FOR  THE  PURPOSE  OF
   29  ACCESSING SOCIAL MEDIA, OR TO ACCESS SOCIAL MEDIA IN THE PRESENCE OF THE
   30  EMPLOYER,  OR  TO  DIVULGE  ANY  SOCIAL  MEDIA.  AN  EMPLOYER  SHALL NOT
   31  DISCHARGE OR DISCIPLINE, OR OTHERWISE RETALIATE AGAINST AN  EMPLOYEE  OR
   32  APPLICANT  FOR  NOT  COMPLYING  WITH A REQUEST OR DEMAND BY THE EMPLOYER
   33  THAT VIOLATES THIS SUBDIVISION. THE FOREGOING TO THE  CONTRARY  NOTWITH-
   34  STANDING,  NOTHING IN THIS SUBDIVISION SHALL AFFECT AN EMPLOYER'S EXIST-
   35  ING RIGHTS AND OBLIGATIONS TO REQUEST  AN  EMPLOYEE  TO  DIVULGE  SOCIAL
   36  MEDIA  REASONABLY BELIEVED TO BE RELEVANT TO AN INVESTIGATION OF ALLEGA-
   37  TIONS OF EMPLOYEE MISCONDUCT OR VIOLATION OF APPLICABLE LAWS  AND  REGU-
   38  LATIONS,  PROVIDED  THAT THE SOCIAL MEDIA IS USED SOLELY FOR PURPOSES OF
   39  SUCH INVESTIGATION OR FOR A RELATED PROCEEDING, OR SHALL  BE  DEEMED  TO
   40  PRECLUDE  AN  EMPLOYER  FROM  REQUIRING  OR  REQUESTING  AN  EMPLOYEE TO
   41  DISCLOSE A USERNAME, PASSWORD,  OR  OTHER  METHOD  FOR  THE  PURPOSE  OF
   42  ACCESSING  AN  EMPLOYER-ISSUED  ELECTRONIC  DEVICE,  OR  TO  PROHIBIT AN
   43  EMPLOYER FROM TERMINATING OR OTHERWISE TAKING AN ADVERSE ACTION  AGAINST
   44  AN EMPLOYEE OR APPLICANT AS MAY BE OTHERWISE PERMITTED BY LAW.
   45    2. COLLEGES AND UNIVERSITIES, AND THEIR EMPLOYEES AND REPRESENTATIVES,
   46  SHALL  NOT REQUIRE OR REQUEST A STUDENT, PROSPECTIVE STUDENT, OR STUDENT
   47  GROUP TO DISCLOSE A USER NAME OR PASSWORD FOR ACCESSING SOCIAL MEDIA, OR
   48  TO ACCESS SOCIAL MEDIA IN THE PRESENCE OF THE INSTITUTION'S EMPLOYEE  OR
   49  REPRESENTATIVE,  OR  TO DIVULGE ANY SOCIAL MEDIA INFORMATION. NO COLLEGE
   50  OR UNIVERSITY SHALL SUSPEND, EXPEL, DISCIPLINE, OR OTHERWISE PENALIZE  A
   51  STUDENT,  PROSPECTIVE  STUDENT, OR STUDENT GROUP IN ANY WAY FOR REFUSING
   52  TO COMPLY WITH A REQUEST  OR  DEMAND  THAT  VIOLATES  THIS  SUBDIVISION,
   53  PROVIDED  HOWEVER  THAT  NOTHING  CONTAINED IN THIS SUBDIVISION SHALL BE
   54  DEEMED TO AFFECT THE RIGHTS AND OBLIGATIONS OF A COLLEGE  OR  UNIVERSITY
   55  TO  PROTECT  AGAINST  AND  INVESTIGATE  ALLEGED  STUDENT  MISCONDUCT  OR
   56  VIOLATIONS OF APPLICABLE LAWS  AND  REGULATIONS,  OR  TO  PROHIBIT  SUCH
       S. 7358                             9
    1  INSTITUTION  FROM  TAKING ANY ADVERSE ACTION AGAINST A STUDENT, PROSPEC-
    2  TIVE STUDENT, OR STUDENT GROUP FOR ANY LAWFUL REASON OR  TO  PROHIBIT  A
    3  STUDENT  FROM  VOLUNTARILY  CONSENTING TO SUCH DISCLOSURE.  A COLLEGE OR
    4  UNIVERSITY  SHALL  CONSPICUOUSLY  POST  ITS PRIVACY POLICY INCLUDING ITS
    5  PRIVACY POLICY REGARDING SOCIAL MEDIA.
    6    S 906. REQUIREMENT TO REPORT A SECURITY BREACH.    WITHIN  TWENTY-FOUR
    7  HOURS FOLLOWING DISCOVERY OR NOTIFICATION OF A SECURITY BREACH, PURSUANT
    8  TO  ARTICLE  THIRTY-NINE-F OF THIS CHAPTER, AN OPERATOR SHALL INFORM THE
    9  OFFICE OF PRIVACY PROTECTION AS TO THE BREACH, THE DATE  AND  EXTENT  OF
   10  THE  BREACH,  THE CATEGORIES OF PERSONALLY IDENTIFIABLE INFORMATION THAT
   11  WERE OR ARE REASONABLY BELIEVED TO HAVE BEEN THE SUBJECT OF THE  BREACH,
   12  THE NUMBER OF CONSUMERS AFFECTED, THE GEOGRAPHIC AREA OF THE BREACH, AND
   13  TOLL-FREE  TELEPHONE  NUMBERS  OF  COMPANY  REPRESENTATIVES  ASSIGNED TO
   14  PROVIDE INFORMATION CONCERNING  THE  BREACH.  AN  OPERATOR  SHALL  ADDI-
   15  TIONALLY REPORT A SECURITY BREACH TO THE OFFICE OF INFORMATION TECHNOLO-
   16  GY SERVICES WITHIN TWENTY-FOUR HOURS OF DISCOVERY OF ANY SECURITY BREACH
   17  AND  SHALL INCLUDE THE ITEMS OF INFORMATION SPECIFIED IN ARTICLE FOUR OF
   18  THE STATE TECHNOLOGY LAW.
   19    S 907. LIABILITY FOR FAILURE TO  COMPLY.  1.  ANY  OPERATOR  WHICH  IS
   20  NEGLIGENT  IN  FAILING  TO  COMPLY  WITH  ANY  REQUIREMENT IMPOSED UNDER
   21  SECTION NINE HUNDRED THREE OF THIS ARTICLE WITH RESPECT TO A USER OF ITS
   22  WEBSITE OR ONLINE SERVICE IS LIABLE TO THAT USER IN AN AMOUNT  EQUAL  TO
   23  THE SUM OF ANY ACTUAL DAMAGES SUSTAINED AS A RESULT OF SUCH FAILURE, AND
   24  IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE ANY LIABILITY UNDER THIS
   25  SECTION,  THE  COSTS  OF  THE ACTION TOGETHER WITH REASONABLE ATTORNEY'S
   26  FEES AS DETERMINED BY THE  COURT;  PROVIDED  HOWEVER  THAT  SOLELY  WITH
   27  RESPECT TO AN ALLEGED FAILURE TO POST A PRIVACY POLICY, OR TO POST TIME-
   28  LY,  OR TO POST ALL THE INFORMATION REQUIRED, OR TO POST ACCURATE INFOR-
   29  MATION, AN OPERATOR MAY ASSERT AS A COMPLETE DEFENSE IN  ANY  ACTION  IN
   30  LAW  OR  EQUITY  THAT  IT  THEREAFTER  PROVIDED  SUCH INFORMATION TO ALL
   31  AFFECTED USERS WITHIN THIRTY DAYS OF THE DATE THAT OPERATOR KNEW OF SUCH
   32  FAILURE.
   33    2. ANY PERSON WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION TWO
   34  OR THREE OF SECTION NINE HUNDRED THREE OR SECTION NINE  HUNDRED  SIX  OF
   35  THIS  ARTICLE  SHALL  BE  ADDITIONALLY SUBJECT TO A CIVIL PENALTY NOT TO
   36  EXCEED ONE THOUSAND DOLLARS FOR EACH SUCH VIOLATION.
   37    3. ANY OPERATOR WHO KNOWINGLY MAKES A FALSE OR MISLEADING STATEMENT IN
   38  A PRIVACY POLICY OR WHO FAILS TO PROVIDE PRIVACY PROTECTION  FOR  MINORS
   39  PURSUANT  TO SECTION NINE HUNDRED FOUR AS REQUIRED BY THIS ARTICLE SHALL
   40  BE ADDITIONALLY SUBJECT TO A FINE OF FIVE HUNDRED DOLLARS FOR EACH  SUCH
   41  VIOLATION,  PROVIDED  SUCH  CIVIL  PENALTY SHALL NOT EXCEED FIVE HUNDRED
   42  THOUSAND DOLLARS FOR ANY SINGLE EVENT.
   43    4. ANY EMPLOYER WHO VIOLATES THE PROVISIONS OF  SECTION  NINE  HUNDRED
   44  FIVE  OF THIS ARTICLE SHALL BE SUBJECT TO THE CIVIL PENALTIES, REMEDIES,
   45  AND PROVISIONS IMPOSED PURSUANT TO SECTION SIX HUNDRED  SEVENTY-FIVE  OF
   46  THIS CHAPTER.
   47    5. THE RIGHTS AND REMEDIES AVAILABLE UNDER THIS SECTION ARE CUMULATIVE
   48  TO EACH OTHER AND TO ANY OTHER RIGHTS AND REMEDIES AVAILABLE UNDER LAW.
   49    S  908. ENFORCEMENT. THE ATTORNEY GENERAL OR ANY DISTRICT ATTORNEY MAY
   50  APPLY FOR AN ORDER TEMPORARILY OR PERMANENTLY RESTRAINING AND  ENJOINING
   51  ANY PERSON FROM VIOLATING ANY PROVISION OF THIS ARTICLE.
   52    S  5. The state technology law is amended by adding a new article 4 to
   53  read as follows:
   54                                  ARTICLE 4
   55                         BREACH NOTIFICATION SERVICE
   56    SECTION 401. BREACH NOTIFICATION SERVICE.
       S. 7358                            10
    1    S 401. BREACH NOTIFICATION SERVICE. THE OFFICE SHALL COLLABORATE  WITH
    2  THE OFFICE OF PRIVACY PROTECTION TO CREATE A SERVICE TO BE HOUSED WITHIN
    3  THE  OFFICE  UNDER  WHICH  A  COMPANY  REQUIRED  TO REPORT ON A SECURITY
    4  BREACH, AS SUCH TERM IS DEFINED IN ARTICLE THIRTY-NINE-E OF THE  GENERAL
    5  BUSINESS  LAW,  SHALL  BE  REQUIRED  TO  POST  THE FOLLOWING INFORMATION
    6  CONCERNING THE BREACH:
    7    1. THE NAME OF THE COMPANY AND CONTACT INFORMATION OF THE OPERATOR  OF
    8  THE  WEBSITE OR SERVICE, WITH THE CONTACT INFORMATION TO INCLUDE A TOLL-
    9  FREE NUMBER;
   10    2. THE DATE OF  THE  SECURITY  BREACH  AND  THE  NUMBER  OF  CONSUMERS
   11  AFFECTED;
   12    3. THE GEOGRAPHIC AREA OF THE BREACH; AND
   13    4.  TOLL-FREE  TELEPHONE  NUMBERS  AND  ADDRESSES  OF THE MAJOR CREDIT
   14  REPORTING AGENCIES.
   15    THE SERVICE SHALL BE DESIGNED TO PROVIDE ONLINE NOTIFICATION  CONCERN-
   16  ING SECURITY BREACHES TO CONSUMERS WHO REQUEST SUCH INFORMATION BASED ON
   17  GEOGRAPHY,  TYPE  OF  CREDIT OR BANK CARD, BANKING OR FINANCIAL INSTITU-
   18  TION, OR OTHER CATEGORIES OF INFORMATION AS SHALL  BE  PROVIDED  IN  THE
   19  SERVICE.
   20    S 6. This act shall take effect on the one hundred twentieth day after
   21  it shall have become a law.