S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5642
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2019
                                ___________
 
 Introduced  by  Sens.  THOMAS, CARLUCCI, MYRIE -- read twice and ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection
 
 AN ACT to amend the general business law, in relation to the  management
   and oversight of personal data
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act may be known and cited  as  the  "New
 York privacy act".
   § 2. The general business law is amended by adding a new article 42 to
 read as follows:
                                ARTICLE 42
                           NEW YORK PRIVACY ACT
 SECTION 1100. DEFINITIONS.
         1101. JURISDICTIONAL SCOPE.
         1102. DATA FIDUCIARY.
         1103. CONSUMER RIGHTS.
         1104. TRANSPARENCY.
         1105. RESPONSIBILITY ACCORDING TO ROLE.
         1106. DE-IDENTIFIED DATA.
         1107. EXEMPTIONS.
         1108. LIABILITY.
         1109. ENFORCEMENT.
         1110. PREEMPTION.
   §  1100. DEFINITIONS. THE DEFINITIONS IN THIS ARTICLE APPLY UNLESS THE
 CONTEXT CLEARLY REQUIRES OTHERWISE:
   1. "AFFILIATE" MEANS A LEGAL ENTITY THAT CONTROLS, IS  CONTROLLED  BY,
 OR  IS UNDER COMMON CONTROL WITH, ANOTHER LEGAL ENTITY, WHERE THE ENTITY
 HOLDS ITSELF OUT AS AFFILIATED OR UNDER COMMON  OWNERSHIP  SUCH  THAT  A
 CONSUMER  ACTING  REASONABLY  UNDER  THE  CIRCUMSTANCES WOULD ANTICIPATE
 THEIR PERSONAL DATA BEING PROVIDED TO AN AFFILIATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10868-05-9

 S. 5642                             2

   2. "CONSENT" MEANS A  CLEAR  AFFIRMATIVE  ACT  ESTABLISHING  A  FREELY
 GIVEN,  SPECIFIC,  INFORMED,  AND UNAMBIGUOUS INDICATION OF A CONSUMER'S
 AGREEMENT TO THE PROCESSING OF PERSONAL DATA RELATING TO  THE  CONSUMER,
 SUCH AS BY A WRITTEN STATEMENT OR OTHER CLEAR AFFIRMATIVE ACTION.
   3.  "CONSUMER"  MEANS  A NATURAL PERSON WHO IS A NEW YORK RESIDENT. IT
 DOES NOT INCLUDE AN EMPLOYEE OR CONTRACTOR OF A BUSINESS ACTING IN THEIR
 ROLE AS AN EMPLOYEE OR CONTRACTOR.
   4. "CONTROLLER" MEANS THE NATURAL OR LEGAL PERSON WHO, ALONE OR JOINT-
 LY WITH OTHERS, DETERMINES THE PURPOSES AND MEANS OF THE  PROCESSING  OF
 PERSONAL DATA.
   5.  "DATA  BROKER"  MEANS  A BUSINESS, OR UNIT OR UNITS OF A BUSINESS,
 SEPARATELY OR TOGETHER, THAT EARNS ITS PRIMARY  REVENUE  FROM  SUPPLYING
 DATA  OR INFERENCES ABOUT PEOPLE GATHERED MAINLY FROM SOURCES OTHER THAN
 THE DATA SOURCES THEMSELVES.
   6. "DE-IDENTIFIED DATA" MEANS:
   (A) DATA THAT CANNOT BE LINKED TO A KNOWN NATURAL PERSON WITHOUT ADDI-
 TIONAL INFORMATION NOT AVAILABLE TO THE CONTROLLER; OR
   (B) DATA (I) THAT HAS BEEN MODIFIED TO A DEGREE THAT THE RISK OF RE-I-
 DENTIFICATION IS SMALL AS DETERMINED BY A PERSON WITH APPROPRIATE  KNOW-
 LEDGE  OF  AND EXPERIENCE WITH GENERALLY ACCEPTED STATISTICAL AND SCIEN-
 TIFIC PRINCIPLES AND METHODS  FOR  DE-IDENTIFYING  DATA,  (II)  THAT  IS
 SUBJECT TO A PUBLIC COMMITMENT BY THE CONTROLLER NOT TO ATTEMPT TO RE-I-
 DENTIFY THE DATA, AND (III) TO WHICH ONE OR MORE ENFORCEABLE CONTROLS TO
 PREVENT  RE-IDENTIFICATION  HAS  BEEN  APPLIED.  ENFORCEABLE CONTROLS TO
 PREVENT RE-IDENTIFICATION MAY INCLUDE LEGAL, ADMINISTRATIVE,  TECHNICAL,
 OR CONTRACTUAL CONTROLS.
   7.  "DEVELOPER"  MEANS  A  PERSON  WHO  CREATES OR MODIFIES THE SET OF
 INSTRUCTIONS OR PROGRAMS INSTRUCTING A COMPUTER  OR  DEVICE  TO  PERFORM
 TASKS.
   8.  "IDENTIFIED OR IDENTIFIABLE NATURAL PERSON" MEANS A PERSON WHO CAN
 BE IDENTIFIED, DIRECTLY OR INDIRECTLY, IN  PARTICULAR  BY  REFERENCE  TO
 SPECIFIC INFORMATION INCLUDING, BUT NOT LIMITED TO, A NAME, AN IDENTIFI-
 CATION NUMBER, SPECIFIC GEOLOCATION DATA, OR AN ONLINE IDENTIFIER.
   9. "MINOR" MEANS ANY PERSON UNDER EIGHTEEN YEARS OF AGE.
   10.  "PERSONAL  DATA"  MEANS  INFORMATION RELATING TO AN IDENTIFIED OR
 IDENTIFIABLE NATURAL PERSON.
   (A) "PERSONAL DATA" INCLUDES:
   (I) AN IDENTIFIER SUCH AS A  REAL  NAME,  ALIAS,  SIGNATURE,  DATE  OF
 BIRTH,  GENDER  IDENTITY,  SEXUAL  ORIENTATION, MARITAL STATUS, PHYSICAL
 CHARACTERISTIC OR DESCRIPTION, POSTAL ADDRESS, TELEPHONE NUMBER,  UNIQUE
 PERSONAL  IDENTIFIER, MILITARY IDENTIFICATION NUMBER, ONLINE IDENTIFIER,
 INTERNET PROTOCOL ADDRESS, EMAIL ADDRESS, ACCOUNT NAME, MOTHER'S  MAIDEN
 NAME,  SOCIAL SECURITY NUMBER, DRIVER'S LICENSE NUMBER, PASSPORT NUMBER,
 OR OTHER SIMILAR IDENTIFIER;
   (II) INFORMATION SUCH AS EMPLOYMENT, EMPLOYMENT HISTORY, BANK  ACCOUNT
 NUMBER,  CREDIT CARD NUMBER, DEBIT CARD NUMBER, INSURANCE POLICY NUMBER,
 OR ANY OTHER FINANCIAL INFORMATION, MEDICAL INFORMATION,  MENTAL  HEALTH
 INFORMATION, OR HEALTH INSURANCE INFORMATION;
   (III) COMMERCIAL INFORMATION, INCLUDING A RECORD OF PERSONAL PROPERTY,
 INCOME,   ASSETS,  LEASES,  RENTALS,  PRODUCTS  OR  SERVICES  PURCHASED,
 OBTAINED, OR CONSIDERED, OR OTHER PURCHASING OR CONSUMING HISTORY;
   (IV) BIOMETRIC INFORMATION, INCLUDING A RETINA OR IRIS  SCAN,  FINGER-
 PRINT, VOICEPRINT, OR SCAN OF HAND OR FACE GEOMETRY;
   (V) INTERNET OR OTHER ELECTRONIC NETWORK ACTIVITY INFORMATION, INCLUD-
 ING  BROWSING  HISTORY,  SEARCH HISTORY, CONTENT, INCLUDING TEXT, PHOTO-
 GRAPHS, AUDIO OR VIDEO  RECORDINGS,  OR  OTHER  USER  GENERATED-CONTENT,

 S. 5642                             3
 
 NON-PUBLIC  COMMUNICATIONS,  AND  INFORMATION  REGARDING AN INDIVIDUAL'S
 INTERACTION WITH AN INTERNET WEBSITE, MOBILE APPLICATION, OR  ADVERTISE-
 MENT;
   (VI) HISTORICAL OR REAL-TIME GEOLOCATION DATA;
   (VII) AUDIO, ELECTRONIC, VISUAL, THERMAL, OLFACTORY, OR SIMILAR INFOR-
 MATION;
   (VIII)  EDUCATION  RECORDS, AS DEFINED IN SECTION THIRTY-THREE HUNDRED
 TWO OF THE EDUCATION LAW;
   (IX) POLITICAL INFORMATION OR INFORMATION ON CRIMINAL  CONVICTIONS  OR
 ARRESTS;
   (X)  ANY  REQUIRED  SECURITY  CODE, ACCESS CODE, PASSWORD, OR USERNAME
 NECESSARY TO PERMIT ACCESS TO THE ACCOUNT OF AN INDIVIDUAL;
   (XI) CHARACTERISTICS OF PROTECTED CLASSES UNDER THE HUMAN RIGHTS  LAW,
 INCLUDING RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, AGE, OR DISABILI-
 TY; OR
   (XII) AN INFERENCE DRAWN FROM ANY OF THE INFORMATION DESCRIBED IN THIS
 PARAGRAPH  TO  CREATE A PROFILE ABOUT AN INDIVIDUAL REFLECTING THE INDI-
 VIDUAL'S PREFERENCES,  CHARACTERISTICS,  PSYCHOLOGICAL  TRENDS,  PREFER-
 ENCES, PREDISPOSITIONS, BEHAVIOR, ATTITUDES, INTELLIGENCE, ABILITIES, OR
 APTITUDES.
   (B)  THE TERM PERSONAL DATA DOES NOT INCLUDE PUBLICLY AVAILABLE INFOR-
 MATION. "PUBLICLY AVAILABLE INFORMATION":
   (I) MEANS INFORMATION THAT IS LAWFULLY MADE  AVAILABLE  FROM  FEDERAL,
 STATE, OR LOCAL GOVERNMENT RECORDS; AND
   (II)  DOES  NOT  INCLUDE  BIOMETRIC INFORMATION COLLECTED BY A COVERED
 ENTITY ABOUT AN INDIVIDUAL WITHOUT THE INDIVIDUAL'S KNOWLEDGE, OR INFOR-
 MATION USED FOR A PURPOSE THAT IS NOT COMPATIBLE WITH  THE  PURPOSE  FOR
 WHICH  THE  INFORMATION  IS  MAINTAINED AND MADE AVAILABLE IN GOVERNMENT
 RECORDS.
   (C) PERSONAL DATA DOES NOT INCLUDE DE-IDENTIFIED DATA.
   11. "PROCESS" OR "PROCESSING" MEANS ANY OPERATION OR SET OF OPERATIONS
 THAT IS PERFORMED ON PERSONAL DATA OR ON SETS OF PERSONAL DATA,  WHETHER
 OR  NOT BY AUTOMATED MEANS, SUCH AS COLLECTION, RECORDING, ORGANIZATION,
 STRUCTURING, STORAGE, ADAPTATION OR ALTERATION, RETRIEVAL, CONSULTATION,
 USE, DISCLOSURE  BY  TRANSMISSION,  DISSEMINATION  OR  OTHERWISE  MAKING
 AVAILABLE,   ALIGNMENT   OR   COMBINATION,   RESTRICTION,  DELETION,  OR
 DESTRUCTION.
   12. "PROCESSOR" MEANS A NATURAL OR LEGAL PERSON WHO PROCESSES PERSONAL
 DATA ON BEHALF OF THE CONTROLLER.
   13. "PROFILING" MEANS ANY FORM OF  AUTOMATED  PROCESSING  OF  PERSONAL
 DATA CONSISTING OF THE USE OF PERSONAL DATA TO EVALUATE CERTAIN PERSONAL
 ASPECTS  RELATING  TO  A  NATURAL  PERSON,  IN  PARTICULAR TO ANALYZE OR
 PREDICT ASPECTS CONCERNING THAT  NATURAL  PERSON'S  ECONOMIC  SITUATION,
 HEALTH,   PERSONAL   PREFERENCES,   INTERESTS,   RELIABILITY,  BEHAVIOR,
 LOCATION, OR MOVEMENTS.
   14. "RESTRICTION OF PROCESSING" MEANS THE MARKING OF  STORED  PERSONAL
 DATA  WITH  THE  AIM OF LIMITING THE PROCESSING OF SUCH PERSONAL DATA IN
 THE FUTURE.
   15.(A) "SALE", "SELL" OR "SOLD" MEANS THE EXCHANGE  OF  PERSONAL  DATA
 FOR CONSIDERATION BY THE CONTROLLER TO A THIRD PARTY.
   (B)  "SALE"  DOES  NOT  INCLUDE  THE  FOLLOWING: (I) THE DISCLOSURE OF
 PERSONAL DATA TO A PROCESSOR WHO PROCESSES THE PERSONAL DATA  ON  BEHALF
 OF THE CONTROLLER; (II) THE DISCLOSURE OF PERSONAL DATA TO A THIRD PARTY
 WITH WHOM THE CONSUMER HAS A DIRECT RELATIONSHIP FOR PURPOSES OF PROVID-
 ING  A  PRODUCT  OR  SERVICE REQUESTED BY THE CONSUMER OR OTHERWISE IN A
 MANNER THAT IS CONSISTENT  WITH  A  CONSUMER'S  REASONABLE  EXPECTATIONS

 S. 5642                             4
 
 CONSIDERING THE CONTEXT IN WHICH THE CONSUMER PROVIDED THE PERSONAL DATA
 TO  THE CONTROLLER; (III) THE DISCLOSURE OR TRANSFER OF PERSONAL DATA TO
 AN AFFILIATE OF THE CONTROLLER; OR (IV) THE DISCLOSURE  OR  TRANSFER  OF
 PERSONAL  DATA  TO  A  THIRD PARTY AS AN ASSET THAT IS PART OF A MERGER,
 ACQUISITION, BANKRUPTCY, OR OTHER TRANSACTION IN WHICH THE  THIRD  PARTY
 ASSUMES  CONTROL OF ALL OR PART OF THE CONTROLLER'S ASSETS, IF CONSUMERS
 ARE NOTIFIED OF THE TRANSFER OF THEIR DATA AND  OF  THEIR  RIGHTS  UNDER
 THIS ARTICLE AND AFFIRMATIVELY CONSENT TO THE DISCLOSURE AND TRANSFER OF
 DATA.
   16.  "TARGETED  ADVERTISING"  MEANS  DISPLAYING  ADVERTISEMENTS  TO  A
 CONSUMER WHERE THE ADVERTISEMENT IS  SELECTED  BASED  ON  PERSONAL  DATA
 OBTAINED  OR  INFERRED OVER TIME FROM A CONSUMER'S ACTIVITIES ACROSS WEB
 SITES, APPLICATIONS OR ONLINE SERVICES. IT DOES NOT INCLUDE  ADVERTISING
 TO  A  CONSUMER  BASED  UPON THE CONSUMER'S CURRENT VISIT TO A WEB SITE,
 APPLICATION, OR ONLINE SERVICE, OR IN RESPONSE TO THE CONSUMER'S REQUEST
 FOR INFORMATION OR FEEDBACK.
   17. "OPT-IN" MEANS AFFIRMATIVE, EXPRESS CONSENT OF AN INDIVIDUAL FOR A
 COVERED ENTITY TO USE, DISCLOSE, OR PERMIT ACCESS  TO  THE  INDIVIDUAL'S
 PERSONAL DATA AFTER THE INDIVIDUAL HAS RECEIVED EXPLICIT NOTIFICATION OF
 THE REQUEST OF THE COVERED ENTITY WITH RESPECT TO THAT DATA.
   §  1101.  JURISDICTIONAL SCOPE. 1. THIS ARTICLE APPLIES TO LEGAL ENTI-
 TIES THAT CONDUCT BUSINESS IN NEW YORK  STATE  OR  PRODUCE  PRODUCTS  OR
 SERVICES THAT ARE INTENTIONALLY TARGETED TO RESIDENTS OF NEW YORK STATE.
   2. THIS ARTICLE DOES NOT APPLY TO:
   (A) STATE AND LOCAL GOVERNMENTS;
   (B)  PERSONAL  DATA  SETS TO THE EXTENT THAT THEY ARE REGULATED BY THE
 FEDERAL HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996, THE
 FEDERAL HEALTH INFORMATION TECHNOLOGY FOR ECONOMIC AND  CLINICAL  HEALTH
 ACT, OR THE GRAMM-LEACH-BLILEY ACT OF 1999; OR
   (C) DATA SETS MAINTAINED FOR EMPLOYMENT RECORDS PURPOSES.
   §  1102.  DATA  FIDUCIARY.  1. PERSONAL DATA OF CONSUMERS SHALL NOT BE
 USED, PROCESSED OR TRANSFERRED TO A THIRD  PARTY,  UNLESS  THE  CONSUMER
 PROVIDES  EXPRESS  AND  DOCUMENTED  CONSENT.  EVERY LEGAL ENTITY, OR ANY
 AFFILIATE OF SUCH ENTITY, AND EVERY CONTROLLER AND  DATA  BROKER,  WHICH
 COLLECTS,  SELLS  OR  LICENSES  PERSONAL INFORMATION OF CONSUMERS, SHALL
 EXERCISE THE DUTY OF CARE, LOYALTY AND  CONFIDENTIALITY  EXPECTED  OF  A
 FIDUCIARY  WITH  RESPECT  TO  SECURING  THE  PERSONAL DATA OF A CONSUMER
 AGAINST A PRIVACY RISK; AND SHALL ACT  IN  THE  BEST  INTERESTS  OF  THE
 CONSUMER,  WITHOUT  REGARD TO THE INTERESTS OF THE ENTITY, CONTROLLER OR
 DATA BROKER, IN A MANNER EXPECTED BY A  REASONABLE  CONSUMER  UNDER  THE
 CIRCUMSTANCES.
   (A)  EVERY  LEGAL  ENTITY,  OR  AFFILIATE  OF  SUCH  ENTITY, AND EVERY
 CONTROLLER AND DATA BROKER TO WHICH THIS ARTICLE APPLIES SHALL:
   (I) REASONABLY SECURE PERSONAL DATA FROM UNAUTHORIZED ACCESS; AND
   (II) PROMPTLY INFORM A CONSUMER OF ANY BREACH OF THE DUTY DESCRIBED IN
 THIS PARAGRAPH WITH RESPECT TO PERSONAL DATA OF SUCH CONSUMER.
   (B) A LEGAL ENTITY, AN AFFILIATE OF SUCH ENTITY,  CONTROLLER  OR  DATA
 BROKER MAY NOT USE PERSONAL DATA, OR DATA DERIVED FROM PERSONAL DATA, IN
 ANY WAY THAT:
   (I)  WILL  BENEFIT  THE ONLINE SERVICE PROVIDER TO THE DETRIMENT OF AN
 END USER; AND
   (II) (A) WILL RESULT IN REASONABLY FORESEEABLE AND  MATERIAL  PHYSICAL
 OR FINANCIAL HARM TO A CONSUMER; OR
   (B) WOULD BE UNEXPECTED AND HIGHLY OFFENSIVE TO A REASONABLE CONSUMER.
   (C)  A  LEGAL  ENTITY, OR AFFILIATE OF SUCH ENTITY, CONTROLLER OR DATA
 BROKER:

 S. 5642                             5
 
   (I) MAY NOT DISCLOSE OR SELL PERSONAL DATA TO, OR SHARE PERSONAL  DATA
 WITH,  ANY OTHER PERSON EXCEPT AS CONSISTENT WITH THE DUTIES OF CARE AND
 LOYALTY UNDER PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION;
   (II) MAY NOT DISCLOSE OR SELL PERSONAL DATA TO, OR SHARE PERSONAL DATA
 WITH,  ANY  OTHER  PERSON UNLESS THAT PERSON ENTERS INTO A CONTRACT THAT
 IMPOSES THE SAME DUTIES OF CARE, LOYALTY, AND CONFIDENTIALLY TOWARD  THE
 CONSUMER AS ARE IMPOSED UNDER THIS SECTION; AND
   (III)  SHALL TAKE REASONABLE STEPS TO ENSURE THAT THE PRACTICES OF ANY
 PERSON TO WHOM THE ENTITY, OR AFFILIATE OF SUCH  ENTITY,  CONTROLLER  OR
 DATA BROKER DISCLOSES OR SELLS, OR WITH WHOM THE ENTITY, OR AFFILIATE OF
 SUCH  ENTITY,  CONTROLLER  OR DATA BROKER SHARES. PERSONAL DATA FULFILLS
 THE DUTIES OF CARE, LOYALTY, AND CONFIDENTIALITY ASSUMED BY  THE  PERSON
 UNDER  THE  CONTRACT  DESCRIBED  IN SUBPARAGRAPH (II) OF THIS PARAGRAPH,
 INCLUDING BY AUDITING, ON A REGULAR BASIS, THE DATA  SECURITY  AND  DATA
 INFORMATION  PRACTICES  OF ANY SUCH ENTITY, OR AFFILIATE OF SUCH ENTITY,
 CONTROLLER OR DATA BROKER.
   2. FOR THE PURPOSES OF THIS SECTION  THE  TERM  "PRIVACY  RISK"  MEANS
 POTENTIAL ADVERSE CONSEQUENCES TO CONSUMERS AND SOCIETY ARISING FROM THE
 PROCESSING OF PERSONAL DATA, INCLUDING, BUT NOT LIMITED TO:
   (A) DIRECT OR INDIRECT FINANCIAL LOSS OR ECONOMIC HARM;
   (B) PHYSICAL HARM;
   (C)  PSYCHOLOGICAL  HARM,  INCLUDING ANXIETY, EMBARRASSMENT, FEAR, AND
 OTHER DEMONSTRABLE MENTAL TRAUMA;
   (D) SIGNIFICANT INCONVENIENCE OR EXPENDITURE OF TIME;
   (E) ADVERSE OUTCOMES OR DECISIONS  WITH  RESPECT  TO  AN  INDIVIDUAL'S
 ELIGIBILITY FOR RIGHTS, BENEFITS OR PRIVILEGES IN EMPLOYMENT (INCLUDING,
 BUT  NOT LIMITED TO, HIRING, FIRING, PROMOTION, DEMOTION, COMPENSATION),
 CREDIT AND INSURANCE (INCLUDING, BUT NOT LIMITED TO, DENIAL OF AN APPLI-
 CATION OR OBTAINING LESS FAVORABLE TERMS), HOUSING,  EDUCATION,  PROFES-
 SIONAL  CERTIFICATION,  OR  THE  PROVISION  OF  HEALTH  CARE AND RELATED
 SERVICES;
   (F) STIGMATIZATION OR REPUTATIONAL HARM;
   (G) DISRUPTION AND INTRUSION FROM UNWANTED  COMMERCIAL  COMMUNICATIONS
 OR CONTACTS;
   (H) PRICE DISCRIMINATION;
   (I)  EFFECTS  ON  AN  INDIVIDUAL  THAT ARE NOT REASONABLY FORESEEABLE,
 CONTEMPLATED BY, OR EXPECTED BY THE INDIVIDUAL TO WHOM THE PERSONAL DATA
 RELATES, THAT ARE NEVERTHELESS REASONABLY FORESEEABLE, CONTEMPLATED  BY,
 OR EXPECTED BY THE CONTROLLER ASSESSING PRIVACY RISK, THAT:
   (A) ALTERS THAT INDIVIDUAL'S EXPERIENCES;
   (B) LIMITS THAT INDIVIDUAL'S CHOICES;
   (C) INFLUENCES THAT INDIVIDUAL'S RESPONSES; OR
   (D) PREDETERMINES RESULTS; OR
   (J)  OTHER  ADVERSE  CONSEQUENCES  THAT AFFECT AN INDIVIDUAL'S PRIVATE
 LIFE, INCLUDING PRIVATE FAMILY MATTERS, ACTIONS AND COMMUNICATIONS WITH-
 IN  AN  INDIVIDUAL'S  HOME  OR  SIMILAR  PHYSICAL,  ONLINE,  OR  DIGITAL
 LOCATION, WHERE AN INDIVIDUAL HAS A REASONABLE EXPECTATION THAT PERSONAL
 DATA WILL NOT BE COLLECTED OR USED.
   3.  THE  FIDUCIARY  DUTY  OWED  TO A CONSUMER UNDER THIS SECTION SHALL
 SUPERSEDE ANY DUTY OWED TO OWNERS OR SHAREHOLDERS OF A LEGAL  ENTITY  OR
 AFFILIATE  THEREOF,  CONTROLLER  OR  DATA  BROKER,  TO WHOM THIS ARTICLE
 APPLES.
   § 1103. CONSUMER RIGHTS.  ANY ENTITY SUBJECT TO THE PROVISIONS OF THIS
 ARTICLE SHALL PROVIDE NOTICE TO CONSUMERS OF  THEIR  RIGHTS  UNDER  THIS
 ARTICLE AND SHALL PROVIDE CONSUMERS THE OPPORTUNITY TO OPT IN OR OPT OUT
 OF  PROCESSING  THEIR  PERSONAL  DATA IN SUCH A MANNER THAT THE CONSUMER

 S. 5642                             6
 
 MUST SELECT AND CLEARLY INDICATE THEIR CONSENT  OR  DENIAL  OF  CONSENT.
 CONTROLLERS  SHALL  FACILITATE  REQUESTS TO EXERCISE THE CONSUMER RIGHTS
 SET FORTH IN SUBDIVISIONS ONE THROUGH  SIX  OF  THIS  SECTION.    1.  ON
 REQUEST  FROM  A  CONSUMER,  A  CONTROLLER  SHALL CONFIRM WHETHER OR NOT
 PERSONAL DATA CONCERNING THE CONSUMER IS BEING PROCESSED BY THE CONTROL-
 LER, INCLUDING WHETHER SUCH PERSONAL DATA IS SOLD TO DATA BROKERS,  AND,
 WHERE  PERSONAL  DATA  CONCERNING THE CONSUMER IS BEING PROCESSED BY THE
 CONTROLLER, PROVIDE ACCESS TO SUCH PERSONAL DATA CONCERNING THE CONSUMER
 AND THE NAMES OF  THIRD  PARTIES  TO  WHOM  PERSONAL  DATA  IS  SOLD  OR
 LICENSED.  ON REQUEST FROM A CONSUMER, A CONTROLLER SHALL PROVIDE A COPY
 OF  THE  PERSONAL DATA UNDERGOING PROCESSING FREE OF CHARGE, UP TO TWICE
 ANNUALLY. FOR ANY FURTHER COPIES REQUESTED BY THE CONSUMER, THE CONTROL-
 LER MAY CHARGE A REASONABLE FEE BASED ON ADMINISTRATIVE COSTS. WHERE THE
 CONSUMER MAKES THE REQUEST BY ELECTRONIC  MEANS,  AND  UNLESS  OTHERWISE
 REQUESTED  BY  THE  CONSUMER,  THE  INFORMATION  SHALL  BE PROVIDED IN A
 COMMONLY USED ELECTRONIC FORM.
   2. ON REQUEST FROM A CONSUMER, THE CONTROLLER,  WITHOUT  UNDUE  DELAY,
 SHALL  CORRECT INACCURATE PERSONAL DATA CONCERNING THE CONSUMER.  TAKING
 INTO ACCOUNT THE  PURPOSES  OF  THE  PROCESSING,  THE  CONTROLLER  SHALL
 COMPLETE  INCOMPLETE  PERSONAL  DATA,  INCLUDING BY MEANS OF PROVIDING A
 SUPPLEMENTARY STATEMENT.
   3. (A) ON REQUEST FROM A  CONSUMER,  A  CONTROLLER  SHALL  DELETE  THE
 CONSUMER'S  PERSONAL DATA WITHOUT UNDUE DELAY WHERE ONE OF THE FOLLOWING
 GROUNDS APPLIES:
   (I) THE PERSONAL DATA IS  NO  LONGER  NECESSARY  IN  RELATION  TO  THE
 PURPOSES  FOR  WHICH  THE PERSONAL DATA WAS COLLECTED OR OTHERWISE PROC-
 ESSED;
   (II) FOR PROCESSING THAT REQUIRES CONSENT UNDER SECTION ELEVEN HUNDRED
 FIVE OF THIS ARTICLE, THE CONSUMER WITHDRAWS CONSENT TO PROCESSING;
   (III) THE PERSONAL DATA HAS BEEN UNLAWFULLY PROCESSED;
   (IV) TO COMPLY WITH A LEGAL OBLIGATION UNDER FEDERAL, STATE, OR  LOCAL
 LAW TO WHICH THE CONTROLLER IS SUBJECT; OR
   (V) THE CONSUMER OTHERWISE REQUESTS THAT THE DATA BE DELETED.
   (B) WHERE THE CONTROLLER IS OBLIGED TO DELETE PERSONAL DATA UNDER THIS
 SECTION  THAT  HAS  BEEN  DISCLOSED  TO THIRD PARTIES BY THE CONTROLLER,
 INCLUDING DATA BROKERS THAT  RECEIVED  THE  DATA  THROUGH  A  SALE,  THE
 CONTROLLER  SHALL  TAKE  REASONABLE  STEPS,  WHICH MAY INCLUDE TECHNICAL
 MEASURES, TO INFORM OTHER CONTROLLERS THAT ARE PROCESSING  THE  PERSONAL
 DATA  THAT THE CONSUMER HAS REQUESTED THE DELETION BY THE OTHER CONTROL-
 LERS OF ANY LINKS TO, OR COPY OR  REPLICATION  OF,  THE  PERSONAL  DATA.
 COMPLIANCE  WITH THIS OBLIGATION SHALL TAKE INTO ACCOUNT AVAILABLE TECH-
 NOLOGY AND COST OF IMPLEMENTATION.
   (C) THIS SUBDIVISION DOES NOT APPLY TO THE EXTENT PROCESSING IS NECES-
 SARY:
   (I) FOR EXERCISING THE RIGHT OF FREE SPEECH;
   (II) FOR COMPLIANCE WITH A LEGAL OBLIGATION THAT  REQUIRES  PROCESSING
 BY  FEDERAL,  STATE,  OR LOCAL LAW TO WHICH THE CONTROLLER IS SUBJECT OR
 FOR THE PERFORMANCE OF A TASK CARRIED OUT IN THE PUBLIC INTEREST  OR  IN
 THE EXERCISE OF OFFICIAL AUTHORITY VESTED IN THE CONTROLLER;
   (III)  FOR  REASONS  OF  PUBLIC INTEREST IN THE AREA OF PUBLIC HEALTH,
 WHERE THE PROCESSING (A) IS SUBJECT TO SUITABLE AND SPECIFIC MEASURES TO
 SAFEGUARD THE RIGHTS OF THE CONSUMER; AND (B) IS PROCESSED BY  OR  UNDER
 THE  RESPONSIBILITY  OF  A PROFESSIONAL SUBJECT TO CONFIDENTIALITY OBLI-
 GATIONS UNDER FEDERAL, STATE, OR LOCAL LAW;
   (IV) FOR ARCHIVING PURPOSES IN  THE  PUBLIC  INTEREST,  SCIENTIFIC  OR
 HISTORICAL   RESEARCH  PURPOSES,  OR  STATISTICAL  PURPOSES,  WHERE  THE

 S. 5642                             7
 
 DELETION OF SUCH PERSONAL DATA IS LIKELY TO RENDER IMPOSSIBLE  OR  SERI-
 OUSLY IMPAIR THE ACHIEVEMENT OF THE OBJECTIVES OF THE PROCESSING; OR
   (V) FOR THE ESTABLISHMENT, EXERCISE, OR DEFENSE OF LEGAL CLAIMS.
   4.  (A)  THE CONTROLLER SHALL CEASE PROCESSING IF ONE OF THE FOLLOWING
 GROUNDS APPLIES:
   (I) THE ACCURACY OF THE PERSONAL DATA IS CONTESTED  BY  THE  CONSUMER,
 FOR  A  PERIOD  ENABLING  THE  CONTROLLER  TO VERIFY THE ACCURACY OF THE
 PERSONAL DATA;
   (II) THE PROCESSING IS UNLAWFUL AND THE CONSUMER OPPOSES THE  DELETION
 OF THE PERSONAL DATA AND REQUESTS THE RESTRICTION OF PROCESSING INSTEAD;
   (III)  THE  CONTROLLER  NO  LONGER  NEEDS  THE  PERSONAL  DATA FOR THE
 PURPOSES OF THE PROCESSING, BUT SUCH PERSONAL DATA IS  REQUIRED  BY  THE
 CONSUMER FOR THE ESTABLISHMENT, EXERCISE, OR DEFENSE OF LEGAL CLAIMS; OR
   (IV)  THE  CONSUMER OTHERWISE REQUESTS THAT THE CONTROLLER CEASE PROC-
 ESSING.
   (B) WHERE PERSONAL DATA IS SUBJECT  TO  A  RESTRICTION  OR  PROCESSING
 UNDER  THIS  SUBDIVISION, THE PERSONAL DATA SHALL, WITH THE EXCEPTION OF
 STORAGE, ONLY BE PROCESSED (I) WITH THE CONSUMER'S CONSENT; (II) FOR THE
 ESTABLISHMENT, EXERCISE, OR  DEFENSE  OF  LEGAL  CLAIMS;  OR  (III)  FOR
 REASONS OF IMPORTANT PUBLIC INTEREST UNDER FEDERAL, STATE, OR LOCAL LAW.
   (C)  WHERE  A  CONSUMER  HAS  TAKEN  STEPS  BY THE ONLINE SELECTION OF
 OPTIONS RELATED TO SHARING PERSONAL DATA A CONTROLLER  IS  OBLIGATED  TO
 ADHERE TO SUCH SELECTIONS.
   5.  (A)  ON  REQUEST FROM A CONSUMER, THE CONTROLLER SHALL PROVIDE THE
 CONSUMER ANY PERSONAL DATA CONCERNING SUCH CONSUMER THAT  SUCH  CONSUMER
 HAS  PROVIDED  TO  THE  CONTROLLER  IN  A STRUCTURED, COMMONLY USED, AND
 MACHINE-READABLE FORMAT IF (I)(A) THE PROCESSING OF SUCH  PERSONAL  DATA
 REQUIRES  CONSENT UNDER SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, (B)
 THE PROCESSING OF SUCH PERSONAL DATA IS NECESSARY FOR THE PERFORMANCE OF
 A CONTRACT TO WHICH THE CONSUMER IS A PARTY, OR (C)  IN  ORDER  TO  TAKE
 STEPS  AT THE REQUEST OF THE CONSUMER PRIOR TO ENTERING INTO A CONTRACT;
 AND (II) THE PROCESSING IS CARRIED OUT BY AUTOMATED MEANS.
   (B) CONTROLLERS SHALL TRANSMIT THE PERSONAL DATA REQUESTED UNDER  THIS
 SUBDIVISION  DIRECTLY  FROM ONE CONTROLLER TO ANOTHER, WHERE TECHNICALLY
 FEASIBLE, AND TRANSMIT THE PERSONAL DATA TO ANOTHER  CONTROLLER  WITHOUT
 HINDRANCE FROM THE CONTROLLER TO WHICH THE PERSONAL DATA WAS PROVIDED.
   (C)  REQUESTS FOR PERSONNEL DATA UNDER THIS SUBDIVISION SHALL BE WITH-
 OUT PREJUDICE TO SUBDIVISION THREE OF THIS SECTION.
   (D) THE RIGHTS PROVIDED IN THIS SUBDIVISION DO NOT APPLY TO PROCESSING
 NECESSARY FOR THE PERFORMANCE OF A TASK CARRIED OUT IN THE PUBLIC INTER-
 EST AND SHALL NOT ADVERSELY AFFECT THE RIGHTS OF CONSUMERS.
   6. A CONSUMER SHALL NOT BE SUBJECT  TO  A  DECISION  BASED  SOLELY  ON
 PROFILING WHICH PRODUCES LEGAL EFFECTS CONCERNING SUCH CONSUMER OR SIMI-
 LARLY SIGNIFICANTLY AFFECTS THE CONSUMER. LEGAL OR SIMILARLY SIGNIFICANT
 EFFECTS  INCLUDE,  BUT  ARE  NOT  LIMITED  TO,  DENIAL  OF CONSEQUENTIAL
 SERVICES OR SUPPORT, SUCH AS FINANCIAL AND  LENDING  SERVICES,  HOUSING,
 INSURANCE,  EDUCATION  ENROLLMENT, CRIMINAL JUSTICE, EMPLOYMENT OPPORTU-
 NITIES, AND HEALTH CARE SERVICES.
   (A) THIS SUBDIVISION DOES NOT APPLY IF THE DECISION IS  AUTHORIZED  BY
 FEDERAL OR STATE LAW TO WHICH THE CONTROLLER IS SUBJECT AND WHICH INCOR-
 PORATES SUITABLE MEASURES TO SAFEGUARD THE CONSUMER'S RIGHTS AND LEGITI-
 MATE INTERESTS, AS INDICATED BY THE RISK ASSESSMENTS REQUIRED BY SECTION
 ELEVEN HUNDRED FIVE OF THIS ARTICLE.
   (B)  NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, THE CONTROLLER
 SHALL IMPLEMENT SUITABLE MEASURES TO  SAFEGUARD  CONSUMER'S  RIGHTS  AND
 LEGITIMATE  INTERESTS  WITH RESPECT TO DECISIONS BASED SOLELY ON PROFIL-

 S. 5642                             8
 
 ING, INCLUDING PROVIDING HUMAN REVIEW OF THE DECISION,  TO  EXPRESS  THE
 CONSUMER'S  POINT  OF  VIEW WITH RESPECT TO THE DECISION, AND TO CONTEST
 THE DECISION.
   7.  A  CONTROLLER  SHALL  COMMUNICATE  ANY  CORRECTION,  DELETION,  OR
 RESTRICTION OF PROCESSING CARRIED OUT IN  ACCORDANCE  WITH  SUBDIVISIONS
 TWO, THREE OR FOUR OF THIS SECTION TO EACH THIRD-PARTY RECIPIENT TO WHOM
 THE  PERSONAL  DATA  HAS  BEEN  DISCLOSED,  INCLUDING THIRD PARTIES THAT
 RECEIVED THE DATA THROUGH A SALE, UNLESS THIS PROVES  IMPOSSIBLE.    THE
 CONTROLLER  SHALL INFORM THE CONSUMER ABOUT SUCH THIRD-PARTY RECIPIENTS,
 IF ANY, IF THE CONSUMER REQUESTS SUCH INFORMATION.
   8. A CONTROLLER SHALL PROVIDE INFORMATION ON ACTION TAKEN ON A REQUEST
 UNDER SUBDIVISIONS ONE THROUGH SIX OF THIS SECTION WITHOUT  UNDUE  DELAY
 AND  IN  ANY  EVENT  WITHIN  THIRTY DAYS OF RECEIPT OF THE REQUEST. THAT
 PERIOD MAY BE EXTENDED BY SIXTY ADDITIONAL DAYS WHERE NECESSARY,  TAKING
 INTO  ACCOUNT  THE COMPLEXITY AND NUMBER OF THE REQUESTS. THE CONTROLLER
 SHALL INFORM THE CONSUMER OF ANY SUCH EXTENSION WITHIN  THIRTY  DAYS  OF
 RECEIPT  OF  THE REQUEST, TOGETHER WITH THE REASONS FOR THE DELAY. WHERE
 THE CONSUMER MAKES THE REQUEST  BY  ELECTRONIC  MEANS,  THE  INFORMATION
 SHALL  BE  PROVIDED BY ELECTRONIC MEANS WHERE POSSIBLE, UNLESS OTHERWISE
 REQUESTED BY THE CONSUMER.
   (A) IF A CONTROLLER DOES NOT TAKE ACTION ON THE REQUEST OF A CONSUMER,
 THE CONTROLLER SHALL INFORM THE CONSUMER WITHOUT UNDUE DELAY AND AT  THE
 LATEST  WITHIN  THIRTY DAYS OF RECEIPT OF THE REQUEST OF THE REASONS FOR
 NOT TAKING ACTION AND ANY POSSIBILITY FOR INTERNAL REVIEW OF  THE  DECI-
 SION BY THE CONTROLLER.
   (B)  INFORMATION  PROVIDED  UNDER THIS SECTION MUST BE PROVIDED BY THE
 CONTROLLER FREE OF CHARGE TO THE CONSUMER. WHERE REQUESTS FROM A CONSUM-
 ER ARE MANIFESTLY UNFOUNDED OR EXCESSIVE, IN PARTICULAR BECAUSE OF THEIR
 REPETITIVE CHARACTER, THE CONTROLLER MAY EITHER: (I) CHARGE A REASONABLE
 FEE TAKING INTO ACCOUNT THE ADMINISTRATIVE COSTS OF PROVIDING THE INFOR-
 MATION OR COMMUNICATION OR TAKING THE ACTION REQUESTED; OR  (II)  REFUSE
 TO  ACT ON THE REQUEST. THE CONTROLLER BEARS THE BURDEN OF DEMONSTRATING
 THE MANIFESTLY UNFOUNDED OR EXCESSIVE CHARACTER OF THE REQUEST.
   (C) WHERE THE CONTROLLER HAS REASONABLE DOUBTS CONCERNING THE IDENTITY
 OF THE CONSUMER MAKING A REQUEST UNDER SUBDIVISIONS ONE THROUGH  SIX  OF
 THIS  SECTION,  THE  CONTROLLER  MAY REQUEST THE PROVISION OF ADDITIONAL
 INFORMATION NECESSARY TO CONFIRM THE IDENTITY OF THE CONSUMER.
   (D) A CONTROLLER SHALL CONDUCT AN INTERNAL REVIEW ON ANY ACTION  TAKEN
 UPON  REQUEST  OF  A CONSUMER UNDER SUBDIVISIONS ONE THROUGH SIX OF THIS
 SECTION.
   § 1104. TRANSPARENCY. 1. CONTROLLERS SHALL BE TRANSPARENT AND ACCOUNT-
 ABLE FOR THEIR PROCESSING OF PERSONAL DATA, BY  MAKING  AVAILABLE  IN  A
 FORM  THAT  IS  REASONABLY  ACCESSIBLE  TO CONSUMERS A CLEAR, MEANINGFUL
 PRIVACY NOTICE THAT IS EASILY UNDERSTOOD AND WHICH INCLUDES:
   (A) THE CATEGORIES OF PERSONAL DATA COLLECTED BY THE CONTROLLER;
   (B) THE PURPOSES FOR WHICH THE CATEGORIES OF PERSONAL DATA IS USED AND
 DISCLOSED TO THIRD PARTIES, IF ANY;
   (C) THE RIGHTS THAT CONSUMERS MAY EXERCISE PURSUANT TO SECTION  ELEVEN
 HUNDRED THREE OF THIS ARTICLE, IF ANY;
   (D)  THE  CATEGORIES  OF PERSONAL DATA THAT THE CONTROLLER SHARES WITH
 THIRD PARTIES, IF ANY; AND
   (E) THE NAMES AND CATEGORIES OF THIRD PARTIES, IF ANY, WITH  WHOM  THE
 CONTROLLER SHARES PERSONAL DATA.
   2.  CONTROLLERS THAT ENGAGE IN PROFILING SHALL DISCLOSE SUCH PROFILING
 TO THE CONSUMER AT OR BEFORE THE TIME PERSONAL DATA IS OBTAINED, INCLUD-

 S. 5642                             9
 
 ING MEANINGFUL INFORMATION ABOUT THE LOGIC INVOLVED AND THE SIGNIFICANCE
 AND ENVISAGED CONSEQUENCES OF THE PROFILING.
   3.  IF  A  CONTROLLER SELLS PERSONAL DATA TO DATA BROKERS OR PROCESSES
 PERSONAL DATA FOR DIRECT MARKETING PURPOSES, INCLUDING TARGETED  MARKET-
 ING  AND  PROFILING  TO  THE  EXTENT  THAT  IT IS RELATED TO SUCH DIRECT
 MARKETING, IT SHALL DISCLOSE SUCH PROCESSING, AS WELL AS THE  MANNER  IN
 WHICH A CONSUMER MAY EXERCISE THE RIGHT TO OBJECT TO SUCH PROCESSING, IN
 A CLEAR AND PROMINENT MANNER.
   §  1105.  RESPONSIBILITY ACCORDING TO ROLE. 1. CONTROLLERS AND BROKERS
 SHALL BE RESPONSIBLE FOR MEETING THE OBLIGATIONS SET  FORTH  UNDER  THIS
 ARTICLE.
   2.  PROCESSORS  AND  BROKERS  ARE  RESPONSIBLE  UNDER THIS ARTICLE FOR
 ADHERING TO  THE  INSTRUCTIONS  OF  THE  CONTROLLER  AND  ASSISTING  THE
 CONTROLLER TO MEET ITS OBLIGATIONS UNDER THIS ARTICLE.
   3.  PROCESSING  BY A PROCESSOR SHALL BE GOVERNED BY A CONTRACT BETWEEN
 THE CONTROLLER AND THE PROCESSOR THAT IS BINDING ON  THE  PROCESSOR  AND
 THAT  SETS  OUT  THE  PROCESSING  INSTRUCTIONS TO WHICH THE PROCESSOR IS
 BOUND.
   § 1106. DE-IDENTIFIED DATA. A CONTROLLER OR PROCESSOR THAT USES  DE-I-
 DENTIFIED DATA SHALL EXERCISE REASONABLE OVERSIGHT TO MONITOR COMPLIANCE
 WITH  ANY  CONTRACTUAL  COMMITMENTS  TO  WHICH THE DE-IDENTIFIED DATA IS
 SUBJECT, AND SHALL TAKE APPROPRIATE STEPS TO  ADDRESS  ANY  BREACHES  OF
 CONTRACTUAL COMMITMENTS.
   §  1107.  EXEMPTIONS.  1.  THE  OBLIGATIONS  IMPOSED ON CONTROLLERS OR
 PROCESSORS UNDER THIS ARTICLE DO NOT RESTRICT A CONTROLLER'S OR PROCESS-
 OR'S ABILITY TO:
   (A) COMPLY WITH FEDERAL, STATE, OR LOCAL LAWS;
   (B) COMPLY WITH A CIVIL, CRIMINAL,  OR  REGULATORY  INQUIRY,  INVESTI-
 GATION,  SUBPOENA, OR SUMMONS BY FEDERAL, STATE, LOCAL, OR OTHER GOVERN-
 MENTAL AUTHORITIES;
   (C) DISCLOSE PERSONAL DATA TO A LAW ENFORCEMENT AGENCY IF SUCH  INFOR-
 MATION:
   (I) WAS INADVERTENTLY OBTAINED BY THE CONTROLLER OR DATA BROKER; AND
   (II) APPEARS TO PERTAIN TO THE COMMISSION OF A CRIME;
   (D)  COOPERATE  WITH  A  GOVERNMENTAL ENTITY IF THE CONTROLLER OR DATA
 BROKER, IN GOOD FAITH, BELIEVES THAT AN EMERGENCY  INVOLVING  DANGER  OF
 DEATH  OR  SERIOUS  PHYSICAL INJURY TO ANY PERSON REQUIRES DISCLOSURE OF
 PERSONAL DATA WITHOUT DELAY;
   (E) INVESTIGATE, EXERCISE, OR DEFEND LEGAL CLAIMS; OR
   (F) PREVENT OR DETECT IDENTITY THEFT, FRAUD, OR OTHER CRIMINAL  ACTIV-
 ITY OR VERIFY IDENTITIES.
   2.  THE  OBLIGATIONS  IMPOSED  ON CONTROLLERS OR PROCESSORS UNDER THIS
 ARTICLE DO NOT APPLY WHERE COMPLIANCE BY  THE  CONTROLLER  OR  PROCESSOR
 WITH  THIS ARTICLE WOULD VIOLATE AN EVIDENTIARY PRIVILEGE UNDER NEW YORK
 LAW AND DO NOT PREVENT A CONTROLLER OR PROCESSOR FROM PROVIDING PERSONAL
 DATA CONCERNING A CONSUMER TO A PERSON COVERED BY AN EVIDENTIARY  PRIVI-
 LEGE UNDER NEW YORK LAW AS PART OF A PRIVILEGED COMMUNICATION.
   3.  A CONTROLLER OR PROCESSOR THAT DISCLOSES PERSONAL DATA TO A THIRD-
 PARTY CONTROLLER OR PROCESSOR IN COMPLIANCE  WITH  THE  REQUIREMENTS  OF
 THIS  ARTICLE  IS  NOT  IN  VIOLATION  OF  THIS ARTICLE, INCLUDING UNDER
 SECTION ELEVEN HUNDRED EIGHT OF THIS ARTICLE, IF THE THIRD-PARTY RECIPI-
 ENT PROCESSES SUCH PERSONAL DATA IN VIOLATION OF THIS ARTICLE,  PROVIDED
 THAT,  AT  THE  TIME  OF  DISCLOSING  THE  PERSONAL DATA, THE DISCLOSING
 CONTROLLER OR PROCESSOR DID NOT HAVE ACTUAL KNOWLEDGE  THAT  THE  THIRD-
 PARTY  RECIPIENT INTENDED TO COMMIT A VIOLATION. A THIRD-PARTY RECIPIENT
 RECEIVING PERSONAL DATA FROM A CONTROLLER OR PROCESSOR IS  LIKEWISE  NOT

 S. 5642                            10
 
 LIABLE  UNDER THIS ARTICLE, INCLUDING UNDER SECTION ELEVEN HUNDRED EIGHT
 OF THIS ARTICLE, FOR THE OBLIGATIONS OF A  CONTROLLER  OR  PROCESSOR  TO
 WHOM IT PROVIDES SERVICES.
   4.  THIS  ARTICLE DOES NOT REQUIRE A CONTROLLER OR PROCESSOR TO DO THE
 FOLLOWING:
   (A) RE-IDENTIFY DE-IDENTIFIED DATA;
   (B) RETAIN PERSONAL DATA CONCERNING A CONSUMER THAT HE  OR  SHE  WOULD
 NOT OTHERWISE RETAIN IN THE ORDINARY COURSE OF BUSINESS; OR
   (C) COMPLY WITH A REQUEST TO EXERCISE ANY OF THE RIGHTS UNDER SUBDIVI-
 SIONS ONE THROUGH SIX OF SECTION ELEVEN HUNDRED THREE OF THIS ARTICLE IF
 THE  CONTROLLER  IS  UNABLE  TO  VERIFY,  USING  COMMERCIALLY REASONABLE
 EFFORTS, THE IDENTITY OF THE CONSUMER MAKING THE REQUEST.
   5. OBLIGATIONS IMPOSED ON CONTROLLERS AND PROCESSORS UNDER THIS  ARTI-
 CLE  DO NOT APPLY TO THE PROCESSING OF PERSONAL DATA BY A NATURAL PERSON
 IN THE COURSE OF A PURELY PERSONAL OR HOUSEHOLD ACTIVITY.
   § 1108. LIABILITY.  WHERE MORE THAN ONE CONTROLLER  OR  PROCESSOR,  OR
 BOTH  A  CONTROLLER AND A PROCESSOR, INVOLVED IN THE SAME PROCESSING, IS
 IN VIOLATION OF THIS ARTICLE, THE LIABILITY SHALL BE ALLOCATED AMONG THE
 PARTIES ACCORDING  TO  PRINCIPLES  OF  COMPARATIVE  FAULT,  UNLESS  SUCH
 LIABILITY IS OTHERWISE ALLOCATED BY CONTRACT AMONG THE PARTIES.
   §  1109.  ENFORCEMENT.  1.  THE  LEGISLATURE  FINDS THAT THE PRACTICES
 COVERED BY THIS ARTICLE ARE MATTERS VITALLY AFFECTING THE PUBLIC  INTER-
 EST FOR THE PURPOSE OF PROVIDING CONSUMER PROTECTION FROM DECEPTIVE ACTS
 AND PRACTICES UNDER ARTICLE TWENTY-TWO-A OF THIS CHAPTER. A VIOLATION OF
 THIS  ARTICLE IS NOT REASONABLE IN RELATION TO THE DEVELOPMENT AND PRES-
 ERVATION OF BUSINESS AND IS AN UNFAIR  OR  DECEPTIVE  ACT  IN  TRADE  OR
 COMMERCE AND AN UNFAIR METHOD OF COMPETITION FOR THE PURPOSE OF APPLYING
 ARTICLE TWENTY-TWO-A OF THIS CHAPTER.
   2.  THE ATTORNEY GENERAL MAY BRING AN ACTION IN THE NAME OF THE STATE,
 OR AS PARENS PATRIAE ON BEHALF OF PERSONS  RESIDING  IN  THE  STATE,  TO
 ENFORCE THIS ARTICLE.
   3. IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO ANY GOVERNMENTAL BODY
 PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF A
 VIOLATION  OF THIS ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
 ENJOIN SUCH UNLAWFUL ACT, OR TO RECOVER HIS OR HER  ACTUAL  DAMAGES,  OR
 BOTH  SUCH  ACTIONS. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO A
 PREVAILING PLAINTIFF.
   4. ANY CONTROLLER OR PROCESSOR WHO VIOLATES THIS ARTICLE IS SUBJECT TO
 AN INJUNCTION AND LIABLE FOR DAMAGES AND A CIVIL PENALTY. WHEN CALCULAT-
 ING DAMAGES AND CIVIL PENALTIES, THE COURT SHALL CONSIDER THE NUMBER  OF
 AFFECTED  INDIVIDUALS,  THE  SEVERITY OF THE VIOLATION, AND THE SIZE AND
 REVENUES OF THE COVERED ENTITY. EACH INDIVIDUAL  WHOSE  INFORMATION  WAS
 UNLAWFULLY  PROCESSED  COUNTS AS A SEPARATE VIOLATION. EACH PROVISION OF
 THIS ARTICLE THAT WAS VIOLATED COUNTS AS A SEPARATE VIOLATION.
   § 1110. PREEMPTION. THIS ARTICLE SUPERSEDES AND PREEMPTS LAWS  ADOPTED
 BY  ANY  LOCAL  ENTITY  REGARDING  THE  PROCESSING  OF  PERSONAL DATA BY
 CONTROLLERS OR PROCESSORS.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.