S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2229
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2019
                                ___________
 
 Introduced by M. of A. PAULIN -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to the security of
   connected devices
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 390-d to read as follows:
   § 390-D. SECURITY OF CONNECTED DEVICES. 1. FOR THE  PURPOSES  OF  THIS
 SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
   (A)  "AUTHENTICATION"  MEANS  A METHOD OF VERIFYING THE AUTHORITY OF A
 USER, PROCESS, OR DEVICE TO ACCESS RESOURCES IN AN INFORMATION SYSTEM.
   (B) "CONNECTED DEVICE" MEANS ANY DEVICE, OR OTHER PHYSICAL OBJECT THAT
 IS CAPABLE OF CONNECTING TO THE INTERNET, DIRECTLY  OR  INDIRECTLY,  AND
 THAT IS ASSIGNED AN INTERNET PROTOCOL ADDRESS OR BLUETOOTH ADDRESS.
   (C)  "MANUFACTURER"  MEANS  THE  PERSON WHO MANUFACTURES, OR CONTRACTS
 WITH ANOTHER PERSON TO MANUFACTURE ON  THE  PERSON'S  BEHALF,  CONNECTED
 DEVICES THAT ARE SOLD OR OFFERED FOR SALE IN THE STATE. FOR THE PURPOSES
 OF  THIS  SECTION,  A CONTRACT WITH ANOTHER PERSON TO MANUFACTURE ON THE
 PERSON'S BEHALF DOES NOT INCLUDE A CONTRACT ONLY TO PURCHASE A CONNECTED
 DEVICE, OR ONLY TO PURCHASE AND BRAND A CONNECTED DEVICE.
   (D) "SECURITY FEATURE" MEANS A FEATURE OF A DEVICE DESIGNED TO PROVIDE
 SECURITY FOR THAT DEVICE.
   (E) "UNAUTHORIZED ACCESS, DESTRUCTION, USE, MODIFICATION,  OR  DISCLO-
 SURE"  MEANS  ACCESS, DESTRUCTION, USE, MODIFICATION, OR DISCLOSURE THAT
 IS NOT AUTHORIZED BY THE CONSUMER.
   2. (A) A MANUFACTURER OF A CONNECTED DEVICE SHALL  EQUIP  SUCH  DEVICE
 WITH  A  REASONABLE  SECURITY  FEATURE  OR  FEATURES THAT ARE ALL OF THE
 FOLLOWING:
   (1) APPROPRIATE TO THE NATURE AND FUNCTION OF THE DEVICE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01120-01-9
              

 A. 2229                             2
 
   (2) APPROPRIATE TO THE INFORMATION IT MAY COLLECT, CONTAIN, OR  TRANS-
 MIT; AND
   (3) DESIGNED TO PROTECT THE DEVICE AND ANY INFORMATION CONTAINED THER-
 EIN FROM UNAUTHORIZED ACCESS, DESTRUCTION, USE, MODIFICATION, OR DISCLO-
 SURE.
   (B) SUBJECT TO ALL OF THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDI-
 VISION,  IF  A CONNECTED DEVICE IS EQUIPPED WITH A MEANS FOR AUTHENTICA-
 TION OUTSIDE A LOCAL AREA NETWORK, IT SHALL BE DEEMED A REASONABLE SECU-
 RITY  FEATURE  UNDER  SUCH  PARAGRAPH  IF  EITHER   OF   THE   FOLLOWING
 REQUIREMENTS ARE MET:
   (1)  THE PREPROGRAMMED PASSWORD IS UNIQUE TO EACH DEVICE MANUFACTURED;
 OR
   (2) THE DEVICE CONTAINS A SECURITY FEATURE THAT  REQUIRES  A  USER  TO
 GENERATE  A  NEW MEANS OF AUTHENTICATION BEFORE ACCESS IS GRANTED TO THE
 DEVICE FOR THE FIRST TIME.
   3. (A) THIS SECTION SHALL NOT BE CONSTRUED TO IMPOSE ANY DUTY UPON THE
 MANUFACTURER OF A CONNECTED DEVICE RELATED TO  UNAFFILIATED  THIRD-PARTY
 SOFTWARE  OR  APPLICATIONS  THAT  A  USER  CHOOSES TO ADD TO A CONNECTED
 DEVICE.
   (B) THIS SECTION SHALL NOT BE CONSTRUED TO  IMPOSE  ANY  DUTY  UPON  A
 PROVIDER OF AN ELECTRONIC STORE, GATEWAY, MARKETPLACE, OR OTHER MEANS OF
 PURCHASING OR DOWNLOADING SOFTWARE OR APPLICATIONS, TO REVIEW OR ENFORCE
 COMPLIANCE WITH THIS SECTION.
   (C)  THIS  SECTION  SHALL NOT BE CONSTRUED TO IMPOSE ANY DUTY UPON THE
 MANUFACTURER OF A CONNECTED DEVICE TO PREVENT A USER  FROM  HAVING  FULL
 CONTROL  OVER  A  CONNECTED  DEVICE, INCLUDING THE ABILITY TO MODIFY THE
 SOFTWARE OR FIRMWARE RUNNING ON THE DEVICE AT THE USER'S DISCRETION.
   (D) THIS SECTION SHALL NOT APPLY TO ANY CONNECTED DEVICE THE FUNCTION-
 ALITY OF WHICH IS SUBJECT TO SECURITY REQUIREMENTS  UNDER  FEDERAL  LAW,
 REGULATIONS, OR GUIDANCE PROMULGATED BY A FEDERAL AGENCY PURSUANT TO ITS
 REGULATORY ENFORCEMENT AUTHORITY.
   (E)  THIS  SECTION  SHALL  NOT  BE  CONSTRUED TO PROVIDE A BASIS FOR A
 PRIVATE RIGHT OF ACTION.  THE ATTORNEY GENERAL SHALL HAVE THE  EXCLUSIVE
 AUTHORITY TO ENFORCE THIS SECTION.
   (F)  THE DUTIES AND OBLIGATIONS IMPOSED BY THIS SECTION ARE CUMULATIVE
 WITH ANY OTHER DUTIES OR OBLIGATIONS IMPOSED UNDER ANY  OTHER  LAW,  AND
 SHALL  NOT  BE  CONSTRUED  TO RELIEVE ANY PARTY FROM ANY DUTIES OR OBLI-
 GATIONS IMPOSED UNDER ANY OTHER LAW.
   (G) THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT THE  AUTHORITY  OF  A
 LAW  ENFORCEMENT  AGENCY  TO  OBTAIN CONNECTED DEVICE INFORMATION FROM A
 MANUFACTURER AS AUTHORIZED BY LAW OR PURSUANT TO AN ORDER OF A COURT  OF
 COMPETENT JURISDICTION.
   (H)  A  COVERED  ENTITY,  PROVIDER OF HEALTH CARE, BUSINESS ASSOCIATE,
 HEALTH CARE SERVICE PLAN, CONTRACTOR,  EMPLOYER,  OR  ANY  OTHER  PERSON
 SUBJECT  TO  THE FEDERAL HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY
 ACT OF 1996 (HIPAA) SHALL NOT BE SUBJECT TO THIS SECTION WITH RESPECT TO
 ANY ACTIVITY REGULATED BY SUCH ACT.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.