NY State Senate Bill 2023-S700

Senate Bill S700

2023-2024 Legislative Session

Requires certain businesses to offer identity theft prevention and mitigation services in the case of a security breach

download bill text pdf

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 29, 2024	referred to consumer affairs and protection delivered to assembly passed senate
May 23, 2024	advanced to third reading
May 22, 2024	2nd report cal.
May 21, 2024	1st report cal.1404
Jan 03, 2024	referred to internet and technology
Jan 06, 2023	referred to internet and technology

Votes

- May 29, 2024 - Floor Vote
  S700
  
  41
  
  Aye
  
  20
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 29, 2024
      
      aye (41)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Liu
      
      Mannion
      
      Martinez
      
      May
      
      Mayer
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      nay (20)
      
      Ashby
      
      Borrello
      
      Canzoneri-Fitzpatrick
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      Martins
      
      Mattera
      
      Murray
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rhoads
      
      Rolison
      
      Stec
      
      Tedisco
      
      Weber
      
      Weik
      
      excused (1)
      
      Walczyk
  May 21, 2024 - Internet And Technology Committee Vote
  S700
  
  5
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Internet And Technology Committee Vote: May 21, 2024
      
      aye (5)
      
      Brouk
      
      Comrie
      
      Gonzalez
      
      Parker
      
      Ryan
      
      nay (1)
      
      Stec
      
      aye wr (1)
      
      Canzoneri-Fitzpatrick

2023-S700 (ACTIVE) - Details

See Assembly Version of this Bill:: A1725
Current Committee:: Assembly Consumer Affairs And Protection
Law Section:: General Business Law
Laws Affected:: Amd §899-aa, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5721, A7897
2021-2022: S3161, A3088

2023-S700 (ACTIVE) - Summary

Requires certain businesses to offer identity theft prevention and mitigation services in the case of a security breach; exempts businesses under financial hardship.

2023-S700 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S700

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
certain businesses to offer identity theft prevention and mitigation
services in the case of a security breach

 
PURPOSE:

This bill would require any person or business to provide free reason-
able credit report monitoring, identity theft prevention services, and
if applicable, identity theft mitigation services should they suffer a
data breach including a consumer's social security number.

 
SUMMARY OF PROVISIONS:

Section one amends section 899-aa of the general business law by adding
a new subdivision 10 that would require any person or business, other
than a credit reporting agency, to provide free reasonable credit report
monitoring, identity theft prevention services, and if applicable, iden-

tity theft mitigation services should they suffer a data breach includ-
ing a consumer's social security number. These services would be
required to be provided to affected consumers for a minimum of two
years. Additionally such person or business would be required to provide
notice to a consumer whose social security number was disclosed on how
to obtain such services free of charge. This section also provides that
any person or small business may apply to the Department of Financial
Services for a financial hardship waiver if they are able to demonstrate
to the Department that these requirements would impose a financial hard-
ship.

Section two sets the effective date.

 
JUSTIFICATION:

Data and security breaches are an all too common occurrence in the
modern age. Such breaches occur among many large corporations such as
Yahoo, Marriott, EBay, Target and JP Morgan. The theft of personal data,
including Social Security Numbers puts consumers at inordinate risk for
dire financial consequences, such as having their identity stolen and
their credit totally ruined.

This legislation would require any person or business to provide free
reasonable credit report monitoring, identity theft prevention services,
and if applicable, identity theft mitigation services should they suffer
a data breach including a consumer's social security number. These
services would be required to be provided to affected consumers for a
minimum of two years. Additionally such person or business would be
required to provide notice to a consumer whose social security number
was disclosed onò how to obtain such services free of charge. The bill
also provides that any person or small business may apply to the Depart-
ment of Financial Services for a financial hardship waiver if they are
able to demonstrate to the Department that these requirements would
impose a financial hardship.

 
LEGISLATIVE HISTORY:

2022: S3161- referred to consumer protection

Passed Senate 2019-20 Session.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become
law. Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.

2023-S700 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    700
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   certain  businesses  to offer identity theft prevention and mitigation
   services in the case of a security breach

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  10 of section 899-aa of the general business
 law, as renumbered by chapter 117 of the laws of 2019, is renumbered  to
 be subdivision 11 and a new subdivision 10 is added to read as follows:
   10. (A) WHERE A SECURITY BREACH FROM A PERSON OR BUSINESS OTHER THAN A
 CONSUMER  CREDIT REPORTING AGENCY INCLUDES A SOCIAL SECURITY NUMBER, AND
 THAT PERSON OR BUSINESS IS REQUIRED TO PROVIDE NOTICE UNDER  SUBDIVISION
 TWO  OF  THIS SECTION, THAT PERSON OR BUSINESS SHALL OFFER EACH RESIDENT
 OF THIS STATE WHOSE SOCIAL SECURITY NUMBER WAS DISCLOSED IN  THE  BREACH
 OF  SECURITY  OR  IS  REASONABLY  BELIEVED TO HAVE BEEN DISCLOSED IN THE
 BREACH OF SECURITY, REASONABLE CREDIT REPORT MONITORING, IDENTITY  THEFT
 PREVENTION  SERVICES  AND,  IF  APPLICABLE,  IDENTITY  THEFT  MITIGATION
 SERVICES AT NO COST TO SAID RESIDENT FOR A PERIOD OF NOT LESS THAN TWEN-
 TY-FOUR MONTHS. THE DISCLOSURE  REQUIRED  BY  SUBDIVISION  TWO  OF  THIS
 SECTION  SHALL  INCLUDE  INFORMATION  FOR ANY RESIDENT OF NEW YORK STATE
 WHOSE SOCIAL SECURITY NUMBER WAS DISCLOSED AS A RESULT OF A DATA  BREACH
 TO  OBTAIN  FREE,  REASONABLE  CREDIT  REPORT MONITORING, IDENTITY THEFT
 PREVENTION  SERVICES  AND,  IF  APPLICABLE,  IDENTITY  THEFT  MITIGATION
 SERVICES AS DESCRIBED IN THIS SECTION.
   (B)  THE  REQUIREMENT  TO PROVIDE TWENTY-FOUR MONTHS OF IDENTITY THEFT
 MITIGATION SERVICES SHALL NOT APPLY TO ANY INDIVIDUAL  PERSON  OR  SMALL
 BUSINESS  AS  DEFINED  IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC
 DEVELOPMENT LAW THAT CAN DEMONSTRATE A FINANCIAL HARDSHIP DIRECTLY OWING
 TO SUCH COMPLIANCE. A REQUEST FOR A FINANCIAL HARDSHIP WAIVER  SHALL  BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00909-01-3
 S. 700                              2

 
 MADE  TO  THE  COMMISSIONER OF THE DEPARTMENT OF FINANCIAL SERVICES ON A
 FORM PRESCRIBED BY THE DEPARTMENT OF FINANCIAL SERVICES.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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