S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5171--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  recommitted to the Committee on Consumer Protection in accordance with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to restricting the
  disclosure of personal information by businesses

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This act shall be known and may be cited as the "right to
know act of 2014".
  S 2. The legislature hereby finds  and  declares  that  the  right  to
privacy  is  a  personal  and  fundamental right protected by the United
States Constitution. All individuals have a right of privacy in informa-
tion pertaining to them.
  This state recognizes the importance of providing consumers with tran-
sparency about how their personal information has been shared  by  busi-
nesses.  For  free  market  forces to have a role in shaping the privacy
practices and for "opt-in"  and  "opt-out"  remedies  to  be  effective,
consumers must be more than vaguely informed that a business might share
personal  information  with  third  parties.  Consumers  must  be better
informed about what kinds of personal information are purchased by busi-
nesses for direct marketing purposes. With  these  specifics,  consumers
can knowledgeably choose to opt-in or opt-out or choose among businesses
that disclose information to third parties for direct marketing purposes
on the basis of how protective the business is of consumers' privacy.
  Businesses  are  now  collecting  personal information and sharing and
selling it in ways not contemplated or properly covered by  the  current
law. Some web sites are installing up to one hundred tracking tools when
consumers  visit web pages and sending very personal information such as
age, gender, race, income, health  concerns,  and  recent  purchases  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10249-02-4
              

S. 5171--A                          2

third-party advertising and marketing companies. Third-party data broker
companies are buying, selling, and trading personal information obtained
from  mobile  phones,  financial  institutions,  social media sites, and
other online and brick and mortar companies.
  Some  mobile  applications  are  sharing personal information, such as
location information, unique  phone  identification  numbers,  and  age,
gender, and other personal details with third-party companies.
  Consumers  need  to  know  the ways that their personal information is
being collected by companies and then shared or sold to third parties in
order to properly protect their privacy, personal safety, and  financial
security.
  S  3. The article heading of article 39-F of the general business law,
as added by chapter 442 of the laws of  2005,  is  amended  to  read  as
follows:
           [NOTIFICATION OF UNAUTHORIZED] ACQUISITION AND USE
                         OF PRIVATE INFORMATION
  S  4. The general business law is amended by adding a new section 899-
bb to read as follows:
  S 899-BB. DISCLOSURE OF A CUSTOMER'S PERSONAL INFORMATION TO  A  THIRD
PARTY.  1. (A) A BUSINESS THAT RETAINS A CUSTOMER'S PERSONAL INFORMATION
SHALL MAKE AVAILABLE TO THE CUSTOMER FREE OF CHARGE ACCESS TO, OR COPIES
OF, ALL OF THE CUSTOMER'S PERSONAL INFORMATION RETAINED BY THE BUSINESS.
  (B) A BUSINESS THAT DISCLOSES A CUSTOMER'S PERSONAL INFORMATION  TO  A
THIRD  PARTY  SHALL  MAKE  THE  FOLLOWING  INFORMATION  AVAILABLE TO THE
CUSTOMER FREE OF CHARGE:
  (1) ALL CATEGORIES OF THE CUSTOMER'S PERSONAL  INFORMATION  THAT  WERE
DISCLOSED, INCLUDING THE CATEGORIES SET FORTH IN PARAGRAPH (A) OF SUBDI-
VISION FOUR OF THIS SECTION.
  (2) THE NAMES AND CONTACT INFORMATION OF ALL OF THE THIRD PARTIES THAT
RECEIVED  THE CUSTOMER'S PERSONAL INFORMATION FROM THE BUSINESS, INCLUD-
ING THE THIRD PARTY'S DESIGNATED REQUEST ADDRESS OR ADDRESSES IF  AVAIL-
ABLE.
  2.  A BUSINESS REQUIRED TO COMPLY WITH SUBDIVISION ONE OF THIS SECTION
SHALL MAKE THE REQUIRED INFORMATION AVAILABLE BY  ONE  OR  MORE  OF  THE
FOLLOWING MEANS:
  (A)  BY  PROVIDING A DESIGNATED REQUEST ADDRESS AND, UPON RECEIPT OF A
REQUEST UNDER THIS SECTION TO THE DESIGNATED REQUEST ADDRESS,  PROVIDING
THE  CUSTOMER  WITHIN  THIRTY DAYS WITH THE REQUIRED INFORMATION FOR ALL
DISCLOSURES OCCURRING IN THE PRIOR TWELVE MONTHS, PROVIDED THAT:
  (1) IF THE BUSINESS HAS AN ONLINE PRIVACY POLICY, THAT POLICY INCLUDES
A DESCRIPTION OF A CUSTOMER'S RIGHTS PURSUANT TO THIS  SECTION  ACCOMPA-
NIED  BY ONE OR MORE DESIGNATED REQUEST ADDRESSES; PROVIDED THAT A BUSI-
NESS WITH MULTIPLE ONLINE PRIVACY POLICIES MUST INCLUDE THIS INFORMATION
IN THE POLICY OF EACH PRODUCT OR SERVICE THAT COLLECTS PERSONAL INFORMA-
TION THAT MAY BE DISCLOSED TO A THIRD PARTY;
  (2) THE BUSINESS ENSURES THAT ALL  PERSONS  RESPONSIBLE  FOR  HANDLING
CUSTOMER  INQUIRIES  ABOUT  THE BUSINESS' PRIVACY PRACTICES OR THE BUSI-
NESS' COMPLIANCE WITH  THIS  SECTION  ARE  INFORMED  OF  ALL  DESIGNATED
REQUEST ADDRESSES; AND
  (3)  THE  BUSINESS  PROVIDES  INFORMATION  PERTAINING  TO THE SPECIFIC
CUSTOMER IF THAT INFORMATION IS REASONABLY AVAILABLE  TO  THE  BUSINESS,
AND  PROVIDES INFORMATION IN STANDARDIZED FORMAT IF INFORMATION PERTAIN-
ING TO THE SPECIFIC CUSTOMER IS NOT REASONABLY AVAILABLE.
  (B) FOR INFORMATION REQUIRED TO BE PROVIDED BY PARAGRAPH (B) OF SUBDI-
VISION ONE OF THIS  SECTION,  BY  PROVIDING  THE  CUSTOMER  WITH  NOTICE

S. 5171--A                          3

INCLUDING  THE  REQUIRED INFORMATION PRIOR TO OR IMMEDIATELY FOLLOWING A
DISCLOSURE.
  (C)  BY PROVIDING THE CUSTOMER THE DISCLOSURE REQUIRED BY SECTION 6803
OF TITLE 15 OF THE UNITED STATES CODE, BUT ONLY IF THE  DISCLOSURE  ALSO
COMPLIES WITH THIS SECTION.
  3.  (A)  A  BUSINESS  IS NOT OBLIGATED TO PROVIDE MORE THAN ONE NOTICE
UNDER PARAGRAPH (B) OF SUBDIVISION TWO  OF  THIS  SECTION  TO  THE  SAME
CUSTOMER  IN  A  TWELVE-MONTH  PERIOD  ABOUT  THE DISCLOSURE OF THE SAME
PERSONAL INFORMATION TO THE SAME THIRD PARTY AND IS NOT OBLIGATED  UNDER
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION TO RESPOND TO A REQUEST
BY THE SAME CUSTOMER MORE THAN ONCE WITHIN A GIVEN TWELVE-MONTH PERIOD.
  (B) A BUSINESS IS NOT OBLIGATED TO PROVIDE INFORMATION TO THE CUSTOMER
PURSUANT  TO  SUBDIVISION  ONE  OF  THIS  SECTION IF THE BUSINESS CANNOT
REASONABLY VERIFY THAT THE INDIVIDUAL MAKING THE REQUEST IS THE  CUSTOM-
ER.
  4.  FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE FOLLOW-
ING MEANINGS:
  (A) "CATEGORIES OF PERSONAL INFORMATION" INCLUDES, BUT IS NOT  LIMITED
TO, THE FOLLOWING:
  (1)  IDENTITY  INFORMATION  INCLUDING,  BUT NOT LIMITED TO, REAL NAME,
ALIAS, NICKNAME, AND USER NAME.
  (2) ADDRESS INFORMATION, INCLUDING, BUT NOT LIMITED TO, POSTAL ADDRESS
OR E-MAIL.
  (3) TELEPHONE NUMBER.
  (4) ACCOUNT NAME.
  (5) SOCIAL SECURITY NUMBER OR OTHER  GOVERNMENT-ISSUED  IDENTIFICATION
NUMBER,  INCLUDING, BUT NOT LIMITED TO, SOCIAL SECURITY NUMBER, DRIVER'S
LICENSE NUMBER, IDENTIFICATION CARD NUMBER, AND PASSPORT NUMBER.
  (6) BIRTHDATE OR AGE.
  (7) PHYSICAL CHARACTERISTIC INFORMATION, INCLUDING,  BUT  NOT  LIMITED
TO, HEIGHT AND WEIGHT.
  (8)  SEXUAL  INFORMATION, INCLUDING, BUT NOT LIMITED TO, SEXUAL ORIEN-
TATION, SEX, GENDER STATUS, GENDER IDENTITY, AND GENDER EXPRESSION.
  (9) RACE OR ETHNICITY.
  (10) RELIGIOUS AFFILIATION OR ACTIVITY.
  (11) POLITICAL AFFILIATION OR ACTIVITY.
  (12) PROFESSIONAL OR EMPLOYMENT-RELATED INFORMATION.
  (13) EDUCATIONAL INFORMATION.
  (14) MEDICAL INFORMATION,  INCLUDING,  BUT  NOT  LIMITED  TO,  MEDICAL
CONDITIONS  OR  DRUGS,  THERAPIES, MENTAL HEALTH, OR MEDICAL PRODUCTS OR
EQUIPMENT USED.
  (15) FINANCIAL INFORMATION, INCLUDING, BUT  NOT  LIMITED  TO,  CREDIT,
DEBIT,  OR ACCOUNT NUMBERS, ACCOUNT BALANCES, PAYMENT HISTORY, OR INFOR-
MATION RELATED TO ASSETS, LIABILITIES, OR GENERAL CREDITWORTHINESS.
  (16) COMMERCIAL INFORMATION, INCLUDING, BUT NOT LIMITED TO, RECORDS OF
PROPERTY, PRODUCTS OR SERVICES PROVIDED,  OBTAINED,  OR  CONSIDERED,  OR
OTHER PURCHASING OR CONSUMING HISTORIES OR TENDENCIES.
  (17) LOCATION INFORMATION.
  (18)  INTERNET  OR  MOBILE  ACTIVITY  INFORMATION,  INCLUDING, BUT NOT
LIMITED TO, INTERNET PROTOCOL ADDRESSES OR  INFORMATION  CONCERNING  THE
ACCESS OR USE OF ANY INTERNET OR MOBILE-BASED SITE OR SERVICE.
  (19)  CONTENT, INCLUDING TEXT, PHOTOGRAPHS, AUDIO OR VIDEO RECORDINGS,
OR OTHER MATERIAL GENERATED BY OR PROVIDED BY THE CUSTOMER.
  (20) ANY OF THE ABOVE CATEGORIES OF INFORMATION AS THEY PERTAIN TO THE
CHILDREN OF THE CUSTOMER.

S. 5171--A                          4

  (B) (1) "CUSTOMER" MEANS AN INDIVIDUAL WHO IS A RESIDENT OF  NEW  YORK
STATE  WHO  PROVIDES PERSONAL INFORMATION TO A BUSINESS, WITH OR WITHOUT
AN EXCHANGE OF CONSIDERATION, IN  THE  COURSE  OF  PURCHASING,  VIEWING,
ACCESSING, RENTING, LEASING, OR OTHERWISE USING REAL OR PERSONAL PROPER-
TY,  OR ANY INTEREST THEREIN, OR OBTAINING A PRODUCT OR SERVICE FROM THE
BUSINESS INCLUDING ADVERTISING OR ANY OTHER CONTENT.
  (2) AN INDIVIDUAL IS ALSO THE CUSTOMER OF A BUSINESS IF THAT  BUSINESS
OBTAINED  THE  PERSONAL  INFORMATION  OF  THAT INDIVIDUAL FROM ANY OTHER
BUSINESS.
  (C) "DESIGNATED REQUEST  ADDRESS"  MEANS  A  MAILING  ADDRESS,  E-MAIL
ADDRESS,  WEB  PAGE,  TOLL-FREE  TELEPHONE  NUMBER,  OR OTHER APPLICABLE
CONTACT INFORMATION, WHEREBY CUSTOMERS MAY REQUEST OR OBTAIN THE  INFOR-
MATION REQUIRED TO BE PROVIDED UNDER SUBDIVISION ONE OF THIS SECTION.
  (D)  (1)  "DISCLOSE"  MEANS  TO  DISCLOSE,  RELEASE,  SHARE, TRANSFER,
DISSEMINATE, MAKE AVAILABLE, OR OTHERWISE COMMUNICATE ORALLY,  IN  WRIT-
ING,  OR  BY ELECTRONIC OR ANY OTHER MEANS TO ANY THIRD PARTY AS DEFINED
IN THIS SECTION.
  (2) "DISCLOSE" DOES NOT INCLUDE:
  (A) DISCLOSURE OF PERSONAL INFORMATION BY A BUSINESS TO A THIRD  PARTY
PURSUANT  TO  A  WRITTEN CONTRACT AUTHORIZING THE THIRD PARTY TO UTILIZE
THE PERSONAL INFORMATION TO PERFORM SERVICES ON BEHALF OF THE  BUSINESS,
INCLUDING MAINTAINING OR SERVICING ACCOUNTS, PROVIDING CUSTOMER SERVICE,
PROCESSING  OR  FULFILLING  ORDERS  AND TRANSACTIONS, VERIFYING CUSTOMER
INFORMATION,  PROCESSING  PAYMENTS,  PROVIDING  FINANCING,  OR   SIMILAR
SERVICES,  BUT  ONLY  IF (I) THE CONTRACT PROHIBITS THE THIRD PARTY FROM
USING THE PERSONAL INFORMATION FOR ANY REASON OTHER THAN PERFORMING  THE
SPECIFIED  SERVICE  OR  SERVICES  ON  BEHALF  OF  THE  BUSINESS AND FROM
DISCLOSING ANY SUCH PERSONAL INFORMATION TO ADDITIONAL THIRD PARTIES AND
(II) THE BUSINESS EFFECTIVELY ENFORCES THESE PROHIBITIONS.
  (B) DISCLOSURE OF PERSONAL INFORMATION BY A BUSINESS TO A THIRD  PARTY
BASED  ON A GOOD-FAITH BELIEF THAT DISCLOSURE IS REQUIRED TO COMPLY WITH
APPLICABLE LAW, REGULATION, LEGAL PROCESS, OR COURT ORDER.
  (C) DISCLOSURE OF PERSONAL INFORMATION BY A BUSINESS TO A THIRD  PARTY
THAT  IS  REASONABLY  NECESSARY TO ADDRESS FRAUD, SECURITY, OR TECHNICAL
ISSUES; TO PROTECT THE DISCLOSING BUSINESS' RIGHTS OR  PROPERTY;  OR  TO
PROTECT  CUSTOMERS  OR THE PUBLIC FROM ILLEGAL ACTIVITIES AS REQUIRED OR
PERMITTED BY LAW.
  (D) DISCLOSURE OF PERSONAL INFORMATION BY A BUSINESS TO A THIRD  PARTY
THAT  IS  OTHERWISE  LAWFULLY  AVAILABLE TO THE GENERAL PUBLIC, PROVIDED
THAT THE BUSINESS DID NOT DIRECT THE THIRD PARTY TO THE PERSONAL  INFOR-
MATION.
  (E) "PERSONAL INFORMATION" MEANS:
  (1)  ANY  INFORMATION THAT IDENTIFIES OR REFERENCES A PARTICULAR INDI-
VIDUAL OR ELECTRONIC DEVICE, INCLUDING, BUT NOT LIMITED TO, A REAL NAME,
ALIAS, POSTAL ADDRESS, TELEPHONE NUMBER, ELECTRONIC MAIL ADDRESS, INTER-
NET PROTOCOL ADDRESS, ACCOUNT NAME,  SOCIAL  SECURITY  NUMBER,  DRIVER'S
LICENSE  NUMBER,  PASSPORT  NUMBER,  OR ANY OTHER IDENTIFIER INTENDED OR
ABLE TO BE UNIQUELY ASSOCIATED WITH A PARTICULAR INDIVIDUAL OR DEVICE.
  (2) ANY INFORMATION THAT RELATES TO OR DESCRIBES AN INDIVIDUAL IF SUCH
INFORMATION IS DISCLOSED IN CONNECTION WITH ANY IDENTIFYING OR REFERENC-
ING INFORMATION AS DEFINED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH.
  (F) (1) "RETAINS" MEANS TO STORE OR OTHERWISE HOLD INFORMATION, WHETH-
ER THE INFORMATION IS COLLECTED OR OBTAINED DIRECTLY FROM THE SUBJECT OF
THE INFORMATION OR FROM ANY THIRD PARTY.
  (2) "RETAINS" DOES NOT INCLUDE INFORMATION THAT IS STORED OR OTHERWISE
HELD SOLELY FOR ONE OR MORE OF THE FOLLOWING PURPOSES, SO  LONG  AS  THE

S. 5171--A                          5

INFORMATION  IS  DELETED  AS  SOON  AS  IT IS NO LONGER NEEDED FOR THOSE
PURPOSES:
  (A)  TO PERFORM A SERVICE OR COMPLETE A TRANSACTION INITIATED BY OR ON
BEHALF OF THE CUSTOMER, INCLUDING  MAINTAINING  OR  SERVICING  ACCOUNTS,
PROVIDING  CUSTOMER  SERVICE, PROCESSING OR FULFILLING ORDERS AND TRANS-
ACTIONS, VERIFYING CUSTOMER INFORMATION, PROCESSING PAYMENTS,  PROVIDING
FINANCING, OR SIMILAR SERVICES.
  (B)  TO  ADDRESS  FRAUD, SECURITY, OR TECHNICAL ISSUES; TO PROTECT THE
DISCLOSING BUSINESS' RIGHTS OR PROPERTY; OR TO PROTECT CUSTOMERS OR  THE
PUBLIC FROM ILLEGAL ACTIVITIES AS REQUIRED OR PERMITTED BY LAW.
  (C)  TO COMPLY WITH APPLICABLE LAW OR REGULATION OR WITH A COURT ORDER
OR OTHER LEGAL PROCESS WHERE THE BUSINESS HAS A GOOD-FAITH  BELIEF  THAT
THE LAW, REGULATION, COURT ORDER, OR LEGAL PROCESS REQUIRES THE INFORMA-
TION TO BE STORED OR HELD.
  (G)  "THIRD PARTY" OR "THIRD PARTIES" MEANS ONE OR MORE OF THE FOLLOW-
ING:
  (1) A BUSINESS THAT IS A SEPARATE LEGAL ENTITY FROM THE BUSINESS  THAT
HAS DISCLOSED PERSONAL INFORMATION.
  (2)  A  BUSINESS THAT DOES NOT SHARE COMMON OWNERSHIP OR COMMON CORPO-
RATE CONTROL WITH THE BUSINESS THAT HAS DISCLOSED PERSONAL INFORMATION.
  (3) A BUSINESS THAT DOES NOT SHARE A BRAND  NAME  OR  COMMON  BRANDING
WITH  THE BUSINESS THAT HAS DISCLOSED PERSONAL INFORMATION SUCH THAT THE
AFFILIATE RELATIONSHIP IS CLEAR TO THE CUSTOMER.
  5. THE PROVISIONS OF THIS SECTION ARE SEVERABLE. IF ANY  PROVISION  OF
THIS  SECTION  OR ITS APPLICATION IS HELD INVALID, THAT INVALIDITY SHALL
NOT AFFECT OTHER PROVISIONS OR APPLICATIONS THAT  CAN  BE  GIVEN  EFFECT
WITHOUT THE INVALID PROVISION OR APPLICATION.
  6. A VIOLATION OF THIS SECTION CONSTITUTES AN INJURY TO A CUSTOMER.  A
CIVIL  ACTION  TO  RECOVER  PENALTIES  MAY BE BROUGHT BY A CUSTOMER, THE
ATTORNEY GENERAL, A DISTRICT ATTORNEY, A CITY ATTORNEY, OR A CITY PROSE-
CUTOR, IN A COURT OF COMPETENT JURISDICTION.
  S 5. This act shall take effect immediately.