RETRIEVE BILL
 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2505
 
                               2003-2004 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2003
                                       ___________
 
        Introduced  by M. of A. KAUFMAN -- read once and referred to the Commit-
          tee on Governmental Operations
 
        AN ACT to amend the civil rights law,  the  general  business  law,  the
          public  health law,   the civil practice law and rules, and the public
          service law, in relation to the protection  and  preservation  of  the
          right  of  personal  privacy  and  to repeal article 32 of the general
          business law relating to the video consumer privacy act
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.   Short title. This act shall be known and may be cited as
     2  the "Personal Privacy Act of 2004".
     3    § 2. Legislative  findings  and  intent.  The  legislature  finds  and
     4  declares  that  the development and preservation of the right of privacy
     5  has been unduly interfered with for  commercial  and  economic  purposes
     6  through  the  advancement  and uninhibited use of telecommunications and
     7  computer-based information sharing technologies. It  further  finds  and
     8  declares that the law of privacy and the sanctity of the individual have
     9  been  unduly  constrained and otherwise restricted by judicial decisions
    10  further  limiting  the  right  of  privacy   to   enumerated   statutory
    11  provisions,  and  that  the  people  of  this  state have therefore been
    12  deprived of and otherwise denied the protection  offered  by  a  law  of
    13  privacy.  The  legislature  therefore declares that an absolute right of
    14  privacy is recognized in this state, and that each individual shall have
    15  a cause of action for invasions of privacy.
    16    The  legislature  further  finds  and  declares  that  the  rules   of
    17  construction  requiring  statutes  in derogation of the common law to be
    18  strictly construed shall have no application to this act, and  that  the
    19  right  of  privacy  recognized by this act shall be broadly construed to
    20  strengthen the development of the law of privacy in a manner  consistent
    21  with  the  freedoms  and  responsibilities  enumerated  in the state and
    22  federal constitutions.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05547-02-3

        A. 2505                             2
 
     1    § 3. Article 5 of the civil rights law is  amended  by  adding  a  new
     2  section 49 to read as follows:
     3    §  49. Right to privacy. 1. For purposes of this section: (a) "person"
     4  means a natural person; (b) a "public  figure"  means  any  person  who,
     5  through  his or her profession, achievements, or style of life, has been
     6  made or otherwise become the object of public interest and scrutiny.
     7    2. All persons have a right to privacy,  which  includes  but  is  not
     8  limited to the following rights:
     9    (a)  Security  from  intrusion upon solitude or isolation. Each person
    10  has the right to be secure from unreasonable intrusion upon his  or  her
    11  seclusion or solitude.
    12    A  person aggrieved by a violation of the provisions of this paragraph
    13  may maintain an action to obtain redress pursuant to the  provisions  of
    14  paragraph  (d)  of  this  subdivision  for any unreasonable intrusion or
    15  violation of his or her right of seclusion  or  solitude.  In  any  such
    16  action, the plaintiff must plead and prove the occurrence of an invasion
    17  or  intrusion into aspects of his or her life either: (i) that he or she
    18  reasonably wishes to maintain in privacy and keep secure from the  scru-
    19  tiny  of  any  observer,  or  (ii) which invasion or intrusion was or is
    20  highly offensive or objectionable to a  reasonable  person  of  ordinary
    21  sensibilities.  The  publication,  broadcast,  transmission,  or dissem-
    22  ination by any means, whether commercial  or  personal,  is  a  required
    23  element  of a cause of action for intrusion on seclusion or solitude. In
    24  any such action, it is not necessary for a plaintiff to plead  or  prove
    25  that  any  person  who  made an intrusive disclosure benefited from such
    26  disclosure.
    27    (b) Security from unreasonable publicity given to private  life.  Each
    28  person  has  the  right  to  be secure from unreasonable publicity being
    29  given to that person's private life.
    30    A person aggrieved by a violation of the provisions of this  paragraph
    31  may  maintain  an action to obtain redress pursuant to the provisions of
    32  paragraph (d) of this subdivision for any unreasonable  publicity  given
    33  to  that  person's  private life. In any such action, the plaintiff must
    34  plead and prove that: (i) there  has  been  a  public  disclosure  of  a
    35  private  fact, (ii) the fact that has been made public is one that would
    36  be highly embarrassing to a reasonable person of ordinary sensibilities,
    37  and (iii) the fact disclosed is not of legitimate concern to the public.
    38  For purposes of this subdivision, a person deemed by a court  of  compe-
    39  tent  jurisdiction  to  be  a  public  figure does not have a diminished
    40  privacy interest. In any such action, it is not necessary for  a  plain-
    41  tiff  to  plead  or  prove  that any person who made a public disclosure
    42  benefited from such disclosure.
    43    (c) Security from publicity placing person  in  a  false  light.  Each
    44  person has the right to be secure from publicity that places that person
    45  in a false light before the public. A person aggrieved by a violation of
    46  the  provisions  of  this  paragraph  may  maintain  an action to obtain
    47  redress pursuant to the provisions of paragraph (d) of this  subdivision
    48  for  any  unreasonable publicity given to that person's private life. In
    49  any such action, the plaintiff must plead and prove that: (i) there  has
    50  been a public disclosure attributing to such person any characteristics,
    51  conduct,  or  beliefs that are false or misleading and have the capacity
    52  to place such person in a false light, (ii) any of the false  character-
    53  istics,  conduct, or beliefs which have been publicly disclosed would be
    54  highly offensive or objectionable to a  reasonable  person  of  ordinary
    55  sensibilities,  and  (iii)  the  discloser of the false characteristics,
    56  conduct, or beliefs which placed the plaintiff  in  a  false  light  had

        A. 2505                             3
 
     1  knowledge  of,  or acted in reckless disregard as to, the falsity of the
     2  matters disclosed. In any such action, it is not necessary for a  plain-
     3  tiff  to  plead  or  prove that any person who made a disclosure of such
     4  false  characteristics,  conduct, or beliefs benefited from such disclo-
     5  sure.
     6    (d) Any person whose privacy has been invaded in any  of  the  manners
     7  provided  for  in  this subdivision may make an application and bring an
     8  action in a court of competent jurisdiction to obtain: (i) An injunction
     9  to enjoin and restrain such invasion of privacy, and, if it  appears  to
    10  the  court  that the privacy of such person has been invaded, an injunc-
    11  tion shall be issued by the court enjoining and restraining  such  inva-
    12  sion;  (ii)  Actual  damages  sustained  as a result of such invasion of
    13  privacy and such exemplary damages and other remedies as the court deems
    14  appropriate; and (iii) Such costs and fees as may have been necessary to
    15  bring such action and reasonable attorneys' fees.
    16    (e) In any action for invasion of privacy in which publication, broad-
    17  cast, or any other electronic transmission is an element of the cause of
    18  action, the defenses of consent, newsworthiness, and qualified or  abso-
    19  lute privilege shall be available to ensure that the freedoms guaranteed
    20  by  the  United  States  and  New  York state constitutions shall not be
    21  infringed.
    22    (f) Such causes of action provided for by this  section  shall  be  in
    23  addition  to  any  other  cause  of action provided under section fifty,
    24  fifty-a, fifty-b, fifty-c, fifty-d, or fifty-one of this article.
    25    § 4. Section 50 of the civil rights law is amended to read as follows:
    26    § 50. Right of privacy; nonconsensual  use  of  name  or  likeness.  A
    27  person,   firm  [or],  partnership,  corporation,  association,  limited
    28  liability company, or other entity that uses for  advertising  purposes,
    29  or  for  the purposes of trade, the name, portrait [or], picture, voice,
    30  actual performance, identity, nickname, or objects of any living  person
    31  without  having first obtained the written consent of such person, or if
    32  a minor of his or her parent or guardian, is guilty of a misdemeanor.
    33    § 5. Section 51 of the civil rights law, as amended by chapter 674  of
    34  the laws of 1995, is amended to read as follows:
    35    §  51.  Action  for injunction and [for] damages; nonconsensual use of
    36  name or likeness. Any person whose name, portrait, picture [or],  voice,
    37  actual  performance,  identity, nickname, or objects is used within this
    38  state for advertising purposes or for the purposes of trade without  the
    39  written  consent  first obtained as [above] provided in section fifty of
    40  this article may maintain an equitable action in the  supreme  court  of
    41  this  state  against  the  person,  firm [or], partnership, corporation,
    42  association, limited liability company, or other entity so using his  or
    43  her  name,  portrait, picture [or], voice, actual performance, identity,
    44  nickname, or objects, to prevent and restrain the use thereof and obtain
    45  such costs and fees as may have been necessary to bring such action; and
    46  may also sue and obtain costs and  reasonable  legal  fees  and  recover
    47  damages  for  any  injuries  sustained  by reason of such use and if the
    48  defendant shall  have  knowingly  used  such  person's  name,  portrait,
    49  picture  [or], voice, actual performance, identity, nickname, or objects
    50  in such manner as is forbidden or declared to  be  unlawful  by  section
    51  fifty  of this article, the jury, in its discretion, may award exemplary
    52  damages. But nothing contained in this article shall be so construed  as
    53  to prevent any person, firm [or], partnership, corporation, association,
    54  limited  liability  company,  or  other entity from selling or otherwise
    55  transferring any material containing such name, portrait, picture  [or],
    56  voice,  actual  performance,  identity, nickname, or objects in whatever

        A. 2505                             4
 
     1  medium to any user of such name, portrait, picture [or],  voice,  actual
     2  performance,  identity,  nickname, or objects, or to any third party for
     3  sale or transfer directly or indirectly to such a user,  for  use  in  a
     4  manner  lawful  under  this  article;  nothing contained in this article
     5  shall be so construed as to prevent any person, firm [or],  partnership,
     6  corporation,  association,  limited  liability company, or other entity,
     7  practicing the profession of photography, from exhibiting  in  or  about
     8  his or her or its establishment specimens of the work of such establish-
     9  ment,  unless  the same is continued by such person, firm [or], partner-
    10  ship, corporation, association, limited liability    company,  or  other
    11  entity  after  written  notice  objecting  thereto has been given by the
    12  person portrayed; and nothing contained in  this  article  shall  be  so
    13  construed as to prevent any person, firm [or], partnership, corporation,
    14  association,  limited  liability company, or other entity from using the
    15  name, portrait, picture [or], voice, actual performance, identity, nick-
    16  name, or objects of any manufacturer or dealer in  connection  with  the
    17  goods,  wares  and merchandise manufactured, produced or dealt in by him
    18  or her which he or she has sold or disposed of with such name, portrait,
    19  picture [or], voice, actual performance, identity, nickname, or  objects
    20  used  in connection therewith; or from using the name, portrait, picture
    21  [or], voice, actual performance, identity, nickname, or objects  of  any
    22  author,  composer  or  artist  in  connection  with his or her literary,
    23  musical or artistic productions which he or she has sold or disposed  of
    24  with such name, portrait, picture [or], voice, actual performance, iden-
    25  tity,  nickname,  or  objects  used  in  connection therewith.   Nothing
    26  contained in this section shall be construed to prohibit  the  copyright
    27  owner  of  a  sound  or  video  recording from disposing of, dealing in,
    28  licensing or selling that sound or video recording to any party, if  the
    29  right  to  dispose  of,  deal  in,  license  or sell such sound or video
    30  recording has been conferred by contract or other  written  document  by
    31  such living person or the holder of such right. Nothing contained in the
    32  foregoing  sentence  shall  be deemed to abrogate or otherwise limit any
    33  rights or remedies otherwise conferred by federal law or state law.
    34    § 6. Article 5 of the civil rights law is amended by  adding  two  new
    35  sections 52-a and 52-b to read as follows:
    36    §  52-a.  Recording  and  reproducing visual images and conversations.
    37  Except as provided for in articles seven hundred and seven hundred  five
    38  of the criminal procedure law, or for the protection of personal proper-
    39  ty within a residence, the protection of property within the premises of
    40  a  business or organization, the protection of commercial or residential
    41  real estate, or for the authorized reporting of public events by employ-
    42  ees of news gathering and reporting organizations, or by private  inves-
    43  tigators  registered  with  or  licensed  by the secretary of state, and
    44  after having provided written notification and  obtaining  a  permit  or
    45  other  written  authorization for the use of any device that is designed
    46  to record or reproduce any visual image or conversation within the mean-
    47  ing of this section and as may be provided for by law or  regulation  by
    48  any  state,  county,  or municipal authority, or for purposes of traffic
    49  control by any duly designated agency of government, a person is  guilty
    50  of  unlawfully  recording  a  visual  image  or  conversation when, with
    51  intent, he or she chemically, mechanically, or electronically records or
    52  otherwise reproduces any visual image or conversation without the  know-
    53  ledge  or expressed consent of any person whose image or conversation he
    54  or she is recording or reproducing.
    55    § 52-b. Privacy of official records. 1.  No  public  entity,  nor  any
    56  officer or employee thereof, shall disclose any information derived from

        A. 2505                             5
 
     1  highway, bridge, tunnel, and other thoroughfare toll records, and commu-
     2  ter  railroad  and  transit facility records, including E-Z Pass and all
     3  other pass card system records; provided, however, that  the  provisions
     4  of  this  subdivision  shall  not  prohibit  a  public  entity,  in  its
     5  discretion from entering into agreements with any other public  entities
     6  for  the  provision  of  such  information when necessary to further the
     7  public entity's official functions.
     8    2. Notwithstanding any other provision of law, an agency of government
     9  in receipt of a request for a record which contains any personal  infor-
    10  mation  shall  reject  such  a request if the agency determines that the
    11  record sought would, if disclosed, be used for any commercial purpose or
    12  any other purpose unrelated to any of the purposes for which the  agency
    13  maintains such records.
    14    3.  The provisions of this section shall not apply to a police agency,
    15  a district attorney or his or her assistants, the  attorney  general  or
    16  his  or  her  deputies or assistants, or a grand jury in connection with
    17  their law enforcement functions.
    18    4. For purposes of this section, "public entity" means  any  state  or
    19  local  department,  agency,  board, bureau, division, commission, public
    20  authority, public benefit  corporation,  office,  or  any  other  entity
    21  performing  a  governmental or proprietary function for the state or any
    22  of its political subdivisions.
    23    § 7. Article 32 of the general business law, as added by  chapter  457
    24  of the laws of 1993, is REPEALED and a new article 32-A is added to read
    25  as follows:
    26                                 ARTICLE 32-A
    27            WRONGFUL DISCLOSURE OF PROTECTED PERSONAL INFORMATION
 
    28  Section 676. Definitions.
    29          677. Wrongful disclosure of protected personal information.
    30          678. Civil liability.
    31    §  676.  Definitions.  1.  "Commercial entity" means any person, firm,
    32  partnership, corporation, association,  limited  liability  company,  or
    33  other entity:
    34    (a)  who  for  commercial,  financial,  or professional gain, monetary
    35  fees, dues, or on a cooperative, nonprofit, or pro-bono  basis,  engages
    36  in the practice of collecting personal protected information;
    37    (b)  who obtains protected personal information pursuant to this chap-
    38  ter; or
    39    (c) who is any employee, agent, or contractor of a  person  or  entity
    40  covered under paragraph (a) or (b) of this subdivision.
    41    2.  "Disclose"  means  to release, publish, share, transfer, transmit,
    42  disseminate, show, or otherwise divulge protected  personal  information
    43  to  any person other than the person who is the subject of such informa-
    44  tion. Use of protected personal information within the entity in accord-
    45  ance with the provisions of this article shall  not  constitute  disclo-
    46  sure.
    47    3.  "Protected  personal  information" means individually identifiable
    48  information about an individual, including:
    49    (a) first, middle, and last names,
    50    (b) home or any other physical or legal address or domicile, including
    51  street name and name of a city, town, or village,
    52    (c) electronic mail address,
    53    (d) telephone number,
    54    (e) social security number, and
    55    (f) purchases and purchasing habits or activities.

        A. 2505                             6
 
     1    4. The term "consumer" means any renter, purchaser, or  subscriber  of
     2  goods or services from a commercial entity.
     3    5. The term "ordinary course of business" means debt collection activ-
     4  ities, order fulfillment, request processing, and the transfer of owner-
     5  ship.
     6    §  677.  Wrongful  disclosure  of protected personal information. 1. A
     7  commercial entity which discloses to  any  person  or  other  commercial
     8  entity,  protected personal information relating to any customer of such
     9  provider shall be liable to the aggrieved person for the relief provided
    10  in section six hundred seventy-eight of this article.
    11    2. A commercial entity shall disclose protected  personal  information
    12  relating to any consumer:
    13    (a) to a grand jury pursuant to a grand jury subpoena;
    14    (b)  pursuant to a court order, in a civil proceeding upon the showing
    15  of compelling need for the information that cannot  be  accommodated  by
    16  any  other  means, or in a criminal proceeding upon a showing of legiti-
    17  mate need for the information that cannot be accommodated by  any  other
    18  means, if:
    19    (i) the consumer is given reasonable notice, by the person seeking the
    20  disclosure,  of  the  court  proceeding  relevant to the issuance of the
    21  court order;
    22    (ii) the consumer is afforded the opportunity to  appear  and  contest
    23  the claim of the person seeking the disclosure; and
    24    (iii)  the  court  imposes appropriate safeguards against unauthorized
    25  disclosure;
    26    (c) to a  law  enforcement  agency  pursuant  to  a  warrant  lawfully
    27  obtained under the laws of this state or the United States; or
    28    (d)  to  a  court  pursuant to a civil action to enforce collection or
    29  payment past due or to demonstrate the existence of a business relation-
    30  ship. Notwithstanding the provisions of this paragraph, the court  shall
    31  impose   appropriate   safeguards  against  unauthorized  disclosure  of
    32  protected personal information.
    33    3. A commercial entity may  disclose  protected  personal  information
    34  concerning any consumer:
    35    (a) to the consumer;
    36    (b)  to  any person with the informed written consent of the consumer;
    37  or
    38    (c) to any person directly involved in the commercial transaction with
    39  the consumer where the disclosure is incidental to the  ordinary  course
    40  of business.
    41    4. Protected personal information obtained in any manner other than as
    42  provided in this section shall not be received in evidence in any trial,
    43  hearing,  arbitration,  or  any other proceeding in or before any court,
    44  grand jury, department, officer, agency,  regulatory  body,  legislative
    45  committee,  or other authority of the state or any political subdivision
    46  thereof.
    47    § 678. Civil liability. 1. Whenever the court shall determine  that  a
    48  violation  of  section  six  hundred  seventy-seven  of this article has
    49  occurred, if such violation constitutes the first such offense  by  such
    50  person,  firm,  partnership, corporation, association, limited liability
    51  company, or other entity, the court shall impose a civil penalty not  to
    52  exceed  five  hundred dollars for each instance where it has been deter-
    53  mined that a consumer's privacy has been violated. A second offense  and
    54  any  subsequent  offense  shall  be punishable by a civil penalty of one
    55  thousand dollars for each instance where it has been determined  that  a
    56  consumer's privacy has been violated.

        A. 2505                             7
 
     1    2.  Whenever  the  attorney  general  determines that any violation of
     2  section six hundred seventy-seven of this article has  occurred  he  may
     3  bring  an  action  consistent  with the provisions of subdivision (b) of
     4  section three hundred forty-nine of this chapter. In any such action the
     5  court  shall  award costs and reasonable attorneys' fees to the state of
     6  New York where the attorney general prevails.
     7    3. The provisions of this article may be enforced concurrently by  the
     8  director  of a municipal consumer affairs office or by the county, town,
     9  or village attorney, city corporation counsel, or other lawful  designee
    10  of a municipality. The court shall award costs and reasonable attorneys'
    11  fees  to  the  municipality  where the chief legal officer or his or her
    12  designee prevails. All moneys collected thereunder shall be retained  by
    13  the municipality.
    14    4.  Any person whose right of privacy has been interfered with because
    15  of a violation of section six hundred seventy-seven of this article  may
    16  bring  an  action in his or her own name to enjoin any individual, firm,
    17  partnership, corporation, limited liability  company,  or  other  entity
    18  from  violating  this  article  and to recover such actual and exemplary
    19  damages, in addition to such costs and reasonable  attorneys'  fees,  as
    20  the court may determine reasonable.
    21    §  8.  The  general business law is amended by adding two new sections
    22  394-f and 394-g to read as follows:
    23    § 394-f. Unsolicited advertisements. 1. For purposes of this  section,
    24  the following terms have the following meanings:
    25    (a)  "Personal  information" means any data contained in a record that
    26  allows for the identification of a person including, but not limited to,
    27  a name in conjunction with a residence address, electronic mail address,
    28  telephone number,  social  security  number,  date  of  birth,  physical
    29  description, profession, medical history, income, or credit rating.
    30    (b) "Unsolicited advertisement" means any written solicitation for the
    31  purchase,  lease,  rent,  contract, or investment in property, goods, or
    32  services, including the offering of a prize or  award  in  exchange  for
    33  attendance  or  purchase at any location for purposes of a solicitation,
    34  or contribution to any natural  person  without  that  natural  person's
    35  expressed consent or authorization.
    36    (c) "Unsolicited electronic advertisement" means the initiation or any
    37  other  transmission  of  any  telephone  call,  electronic mail, telefax
    38  communication, internet transmission or any  other  form  of  electronic
    39  communication soliciting the purchase, lease, rent, contract, or invest-
    40  ment  in property, goods, or services, including the offer of a prize or
    41  award in exchange  for  attendance  or  purchase  at  any  location  for
    42  purposes  of a solicitation, or contribution to any natural person with-
    43  out that natural person's expressed consent or authorization.
    44    (d) "Consumer" means a natural person who is  solicited  to  purchase,
    45  lease, rent, contract, or invest in property, goods, or services includ-
    46  ing receiving a prize or award in exchange for a purchase or attendance.
    47    (e)  "Established  business  relationship"  means  a prior or existing
    48  relationship formed by a voluntary communication between a consumer  and
    49  a person, firm, partnership, corporation, association, limited liability
    50  company,  or  other  entity on the basis of an application, purchase, or
    51  transaction by the  consumer  regarding  property,  goods,  or  services
    52  offered  by  such  person,  firm, partnership, corporation, association,
    53  limited liability company, or other entity within the past  year,  which
    54  relationship  has  not  been  terminated  by the consumer or the person,
    55  firm, partnership, corporation, association, limited liability  company,
    56  or other entity.

        A. 2505                             8
 
     1    2.  Whenever  a  person,  firm, partnership, corporation, association,
     2  limited liability company, or other entity purchases or acquires through
     3  trade a listing of consumers utilized in any direct, unsolicited  adver-
     4  tisement,  such  person,  firm,  partnership,  corporation, association,
     5  limited  liability  company,  or  other  entity  shall provide clear and
     6  conspicuous written notice to the consumer within the  advertisement  or
     7  affixed thereto of the consumer's right, hereby granted, of deleting his
     8  or  her  name and address from such mailing list and of his or her right
     9  not to receive any  further  unsolicited  advertisements.  Such  written
    10  disclosure shall also indicate that such consumer may at any time delete
    11  his  or  her  name from such mailing list. Such written disclosure shall
    12  provide a reasonable and simple method by which the consumer  can  exer-
    13  cise such preference.
    14    3. (a) Whenever a person, firm, partnership, corporation, association,
    15  limited liability company, or other entity purchases or acquires through
    16  trade  a  listing  of  consumers  utilized  in any unsolicited telephone
    17  advertisement, such person, firm, partnership, corporation, association,
    18  limited liability company,  or  other  entity  shall  disclose  to  such
    19  consumer  that  he or she has the right, hereby granted, of deleting his
    20  or her name, address, and telephone number from such telephone list  and
    21  of  his  or  her  right not to receive any further unsolicited telephone
    22  advertisement.
    23    (b) Such disclosure shall be made at the beginning  of  the  telephone
    24  call  and  shall  be  made  in  a clear and conspicuous manner and shall
    25  inform the consumer that he or she can remove his or her name, telephone
    26  number, and address from the list at  any  time  and  shall  inform  the
    27  consumer  of  the reasonable and simple means including, but not limited
    28  to, verbally advising the caller by which the consumer can exercise such
    29  preference.
    30    4. Such person, firm, partnership, corporation,  association,  limited
    31  liability  company,  or other entity referred to in subdivisions two and
    32  three of this section shall maintain an exclusion  list  and  shall  not
    33  send  any  unsolicited  advertisement  or make any unsolicited telephone
    34  advertisement to any consumer on such list. Such person, firm,  partner-
    35  ship,  corporation,  association,  limited  liability  company, or other
    36  entity is prohibited from using such list for  any  purpose  other  than
    37  compliance with the requirements of this section, and such person, firm,
    38  partnership,  corporation,  association,  limited  liability company, or
    39  other entity shall not, sell, rent, exchange, or otherwise  make  avail-
    40  able such exclusion list to any third party.
    41    5.  No  person,  firm,  partnership, corporation, association, limited
    42  liability company, or other entity shall be deemed to have violated  the
    43  provisions  of  this  section  if such person, firm, partnership, corpo-
    44  ration, association, limited liability company, or other  entity  shows,
    45  by  a  preponderance  of the evidence, that the violation was not inten-
    46  tional and resulted from a bona  fide  error  made  notwithstanding  the
    47  maintenance of procedures reasonably adopted to avoid any such error.
    48    6.  Disclosure shall not be required in such instances where a person,
    49  firm, partnership, corporation, association, limited liability  company,
    50  or  other entity has established a business relationship with a consumer
    51  through the sale of goods, services, securities, or real property.
    52    7. Whenever the court determines that a violation of  subdivision  two
    53  or  three  of  this section has occurred, the court shall impose a civil
    54  penalty not to exceed two hundred fifty dollars for each instance  where
    55  it  has  been  determined  that  a consumer's privacy has been violated.
    56  Whenever the court determines that a violation of  subdivision  four  of

        A. 2505                             9
 
     1  this  section has occurred, if such violation constitutes the first such
     2  offense by such person,  firm,  partnership,  corporation,  association,
     3  limited  liability  company,  or  other entity, the court shall impose a
     4  civil penalty not to exceed five hundred dollars for each instance where
     5  it  has  been  determined that a consumer's privacy has been violated. A
     6  second offense and any subsequent offense shall be punishable by a civil
     7  penalty of one thousand dollars for each  instance  where  it  has  been
     8  determined that a consumer's privacy has been violated.
     9    8.  (a) Whenever the attorney general determines that any violation of
    10  subdivision two, three, or four of this section has occurred, he or  she
    11  may bring an action consistent with the provisions of subdivision (b) of
    12  section  three  hundred  forty-nine of this chapter. In any such action,
    13  the court shall award costs and reasonable attorneys' fees to the  state
    14  of New York where the attorney general prevails.
    15    (b) The provisions of this section may be enforced concurrently by the
    16  director  of a municipal consumer affairs office or by the county, town,
    17  or village attorney, city corporation counsel, or other lawful  designee
    18  of  a  municipality.   The court shall award costs and reasonable attor-
    19  neys' fees to such municipality where the chief legal officer or his  or
    20  her designee prevails. All moneys collected thereunder shall be retained
    21  by the municipality.
    22    (c) Any person whose right of privacy has been interfered with because
    23  of  a  violation  of  this section may bring an action in his or her own
    24  name to enjoin any individual, firm, partnership,  corporation,  limited
    25  liability  company,  or  other  entity  from  violating subdivision two,
    26  three, or four of this section and to recover such  real  and  exemplary
    27  damages,  in  addition  to such costs and reasonable attorneys' fees, as
    28  the court may determine reasonable.
    29    § 394-g. Sale, rental, or exchange of personal identification informa-
    30  tion. 1. For purposes of this section the term:
    31    (a) "Commercial purposes" means the  solicitation  for  the  purchase,
    32  lease,  contract, or investment in property, goods, or services, includ-
    33  ing the offering of a prize in exchange for a purchase or for attendance
    34  at any location for the purposes of a solicitation, the solicitation for
    35  a contribution, or the business  of  compiling  personal  identification
    36  information for sale, lease, or rent.
    37    (b)   "Personal  identification  information"  means  any  information
    38  including, but not limited to, a natural person's name,  address,  tele-
    39  phone  or  fax number, electronic mail address, occupation, age, gender,
    40  credit history and rating, purchasing history, and services contracted.
    41    (c) "Consumer" means a natural person about whom personal  identifica-
    42  tion information has been collected.
    43    2.  Every person, firm, partnership, corporation, association, limited
    44  liability company, or other  entity  who  sells,  rents,  exchanges,  or
    45  releases  personal identification information to any other person, part-
    46  nership, corporation, association, limited liability company,  or  other
    47  entity for their commercial purposes shall:
    48    (a)  upon initial contact with a consumer, provide clear and conspicu-
    49  ous written notification, and at least annually thereafter shall provide
    50  written notification, of such practice to each consumer of  their  prac-
    51  tice  of selling, renting, exchanging, or releasing personal identifica-
    52  tion information;
    53    (b) clearly inform each consumer of  the  option  of  prohibiting  the
    54  sale,  rental,  exchange,  or  release  of their personal identification
    55  information for such commercial purpose;

        A. 2505                            10
 
     1    (c) provide written notification to each  consumer  at  least  fifteen
     2  days prior to the commencement of any sale, rental, exchange, or release
     3  of  any  personal  identification information to any other person, firm,
     4  partnership, corporation, association,  limited  liability  company,  or
     5  other entity for commercial purposes.
     6    3.  Such  notifications  as may be required by subdivision two of this
     7  section may be  inserted  in  a  billing  statement  or  other  mailing,
     8  provided  that  the  notification  is  made  in  a clear and conspicuous
     9  manner. Such notification shall provide a reasonable and  simple  method
    10  whereby  a  consumer may indicate his or her preference of permitting or
    11  prohibiting the sale, rental, exchange, or release of personal  informa-
    12  tion  to  another  person,  firm, partnership, corporation, association,
    13  limited liability company, or other entity for commercial purposes.
    14    4. Every person, firm, partnership, corporation, association,  limited
    15  liability  company,  or other entity engaging in the practices described
    16  in paragraph (a) of subdivision two of this  section  shall  maintain  a
    17  list  of  those  consumers  who  have  exercised  their  option of being
    18  excluded from any sale, lease, exchange, or release  of  their  personal
    19  identification information.
    20    5.  No  person,  firm,  partnership, corporation, association, limited
    21  liability company, or other entity shall be deemed to have violated  the
    22  provisions  of  this  section  if such person, partnership, corporation,
    23  association, limited liability company,  or  other  entity  shows  by  a
    24  preponderance  of  evidence  that  the violation was not intentional and
    25  resulted from a bona fide error made notwithstanding the maintenance  of
    26  procedures reasonably adopted to avoid such error.
    27    6.  The provisions of this section prohibiting the release of informa-
    28  tion shall not apply  to  the  reporting  of  necessary  information  to
    29  consumer  reporting  agencies,  in compliance with the provisions of the
    30  federal fair credit reporting act (15 U.S.C. section 1681 et  seq.)  and
    31  article twenty-five of this chapter, known as the "fair credit reporting
    32  act", and any regulations promulgated thereunder.
    33    7.  Whenever  the court determines that a violation of subdivision two
    34  or three of this section has occurred, the court shall  impose  a  civil
    35  penalty  not to exceed two hundred fifty dollars for each instance where
    36  it has been determined that a  consumer's  privacy  has  been  violated.
    37  Whenever  the  court  determines that a violation of subdivision four of
    38  this section has occurred, if such violation constitutes the first  such
    39  offense  by  such  person,  firm, partnership, corporation, association,
    40  limited liability company, or other entity, the  court  shall  impose  a
    41  civil penalty not to exceed five hundred dollars for each instance where
    42  it  has  been  determined that a consumer's privacy has been violated. A
    43  second offense and any subsequent offense shall be punishable by a civil
    44  penalty of one thousand dollars for each  instance  where  it  has  been
    45  determined that a consumer's privacy has been violated.
    46    8.  (a) Whenever the attorney general determines that any violation of
    47  subdivision two, three, or four of this section has occurred, he or  she
    48  may bring an action consistent with the provisions of subdivision (b) of
    49  section  three  hundred  forty-nine of this chapter. In any such action,
    50  the court shall award costs and reasonable attorneys' fees to the  state
    51  of New York where the attorney general prevails.
    52    (b) The provisions of this section may be enforced concurrently by the
    53  director  of a municipal consumer affairs office or by the county, town,
    54  or village attorney, city corporation counsel, or other lawful  designee
    55  of  a  municipality.   The court shall award costs and reasonable attor-
    56  neys' fees to such municipality where the chief legal officer or his  or

        A. 2505                            11
 
     1  her designee prevails. All moneys collected thereunder shall be retained
     2  by the municipality.
     3    (c) Any person whose right of privacy has been interfered with because
     4  of  a  violation  of  this section may bring an action in his or her own
     5  name to enjoin any individual, firm, partnership,  corporation,  limited
     6  liability  company,  or  other  entity  from  violating subdivision two,
     7  three, or four of this section and to recover such actual and  exemplary
     8  damages,  in  addition  to such costs and reasonable attorneys' fees, as
     9  the court may determine reasonable.
    10    § 9. Section 380-l of the general business law, as amended by  chapter
    11  619 of the laws of 2002, is amended to read as follows:
    12    §  380-l.  Civil  liability  for  [willful] noncompliance. Any person,
    13  firm, partnership,  corporation,  [or]  association,  limited  liability
    14  company,  or  other  entity  whose  [knowing  and  willful] violation of
    15  section three hundred eighty-s of this article resulted  in  the  trans-
    16  mission  or provision to a consumer reporting agency of information that
    17  would otherwise not have been transmitted or provided, and any  consumer
    18  reporting  agency  or  user  of  information who or which [willfully and
    19  knowingly] fails to comply with any requirement imposed under this arti-
    20  cle with respect to any consumer is liable to that consumer in an amount
    21  equal to the sum of:
    22    (a) Any actual damages sustained by the consumer as a result  of  such
    23  failure  or as a result of a violation of section three hundred eighty-s
    24  of this article;
    25    (b) Such amount of punitive damages as the court may allow; and
    26    (c) In the case of any successful  action  to  enforce  any  liability
    27  under  this  section,  the  costs of the action together with reasonable
    28  attorney's fees as determined by the court.
    29    § 10. Section 380-t of the general  business  law,  as  relettered  by
    30  chapter  619  of the laws of 2002, is relettered section 380-u and a new
    31  section 380-t is added to read as follows:
    32    § 380-t. Enforcement. 1. Upon any violation of this article, an appli-
    33  cation may be made by the attorney general in the name of the people  of
    34  the  state  to  a  court  having jurisdiction. If it shall appear to the
    35  satisfaction of the court that the respondent has violated any provision
    36  of this article, an injunction may be issued, enjoining and  restraining
    37  any  further  violation, without requiring proof that any person has, in
    38  fact, been injured or damaged thereby. In any such proceeding, the court
    39  may make allowances to the attorney general as provided in paragraph six
    40  of subdivision (a) of section eight thousand three hundred three of  the
    41  civil practice law and rules, and direct restitution. Whenever the court
    42  determines  that a violation of this section has occurred, the court may
    43  impose a civil penalty  of  not  more  than  one  thousand  dollars  per
    44  violation.
    45    2.  The provisions of this article may be enforced concurrently by the
    46  director of a municipal consumer affairs office or by the county,  town,
    47  or  village attorney, city corporation counsel, or other lawful designee
    48  of a municipality. The court shall award costs and reasonable attorneys'
    49  fees to such municipality where the chief legal officer or  his  or  her
    50  designee  prevails. All moneys collected thereunder shall be retained by
    51  the municipality.
    52    3. Any person aggrieved by a violation of this article  may  bring  an
    53  action  in  his or her own name to enjoin any individual, firm, partner-
    54  ship, corporation, association,  limited  liability  company,  or  other
    55  entity  from  engaging  in any further violation of this article and may

        A. 2505                            12
 
     1  request such real and exemplary damages in addition to  such  costs  and
     2  reasonable attorneys' fees as the court may determine.
     3    §  11.  The public health law is amended by adding a new article 10 to
     4  read as follows:
     5                                  ARTICLE 10
     6                         HEALTH INFORMATION PRIVACY
 
     7  Section 1000. Definitions.
     8          1001. Application.
     9          1002. Duty to maintain the confidentiality  of  health  informa-
    10                   tion.
    11          1003. Disclosure.
    12          1004. Notice upon disclosure.
    13          1005. Record of disclosures.
    14          1006. Disclosure without informed consent.
    15          1007. Informed consent.
    16          1008. Disclosure for criminal or civil litigation.
    17          1009. Criminal penalties.
    18          1010. Civil remedy.
    19          1011. Immunity.
    20          1012. Severability.
    21    § 1000. Definitions. As used in this article:
    22    1.  "Disclose", "disclosed" and "disclosure" means the release, trans-
    23  fer, dissemination, or provision of access to or other communication  of
    24  all  or  any  portion  of  health  information by any means to any other
    25  person, firm, partnership, corporation, association,  limited  liability
    26  company, or other entity.
    27    2.  "Health information" means any information which identifies or can
    28  be readily associated with the identity of a person and relates  to  the
    29  person's  genetic structure, past, present, or future physical or mental
    30  health status, condition,  treatment,  service,  products  purchased  or
    31  provision of care.
    32    3.  "Informed  consent"  means  a written and signed authorization for
    33  disclosure of health information by the person to whom such  information
    34  relates. Every such informed consent shall be dated and state the person
    35  or persons to whom disclosure is authorized.
    36    4.  "Legitimate  public  health  purpose" means those population-based
    37  activities or individual efforts primarily aimed at  the  prevention  of
    38  injury,  disease,  or premature mortality, or promotion of health in the
    39  community, including (a) assessing the health needs and  status  of  the
    40  community   through   public  health  surveillance  and  epidemiological
    41  research, (b) developing public health policy, (c) responding to  public
    42  health  needs  and emergencies, and (d) such other public health related
    43  activities or efforts specifically authorized by federal or state law.
    44    5. "Non-identifiable information" means any health related information
    45  which does not identify nor can readily be associated with any  specific
    46  person  through  other  information,  including  names,  social security
    47  numbers, addresses, employers, medical providers,  insurance  providers,
    48  unique  identifiers,  or  other  facts, without the use of encryption, a
    49  code, a key, or any other technological tool.
    50    6. "Public health" means  population-based  activities  or  individual
    51  efforts  primarily  aimed at the prevention of injury, disease or prema-
    52  ture mortality, or the promotion of health.
    53    7. "Public health agency" means any organization, operated  or  funded
    54  in  whole  or  in part by the federal government, the state or any local
    55  government, which collects, maintains, uses, or stores  health  informa-

        A. 2505                            13
 
     1  tion  for  public health purposes. Such organizations shall include, but
     2  not be limited to, public health offices established by federal,  state,
     3  or  local law, testing laboratories, testing facilities, treatment clin-
     4  ics, research facilities, and information storage facilities.
     5    8.  "Public  health  information" means any health information that is
     6  collected, maintained, used, disclosed, or stored by any  public  health
     7  agency,  including  information  regarding  whether the agency possesses
     8  such information.
     9    9. "Public health official" means any officer,  employee,  contractor,
    10  intern,  or  volunteer of a public health agency with authorization from
    11  the agency or pursuant to law to collect, maintain,  use,  disclose,  or
    12  store public health information.
    13    10.  "Public  information" means information which is available to the
    14  general public for inspection and review pursuant to article six of  the
    15  public officers law.
    16    11.  "Use  and  used"  means  to  employ or utilize all or any part of
    17  health information by any means.
    18    § 1001. Application. The provisions  of  this  article  apply  to  all
    19  disclosures  of  health  information  which are otherwise subject to the
    20  provisions of this chapter or  to  which  any  other  provision  of  law
    21  applies.
    22    § 1002. Duty to maintain the confidentiality of health information. 1.
    23  Health information shall be collected, maintained, used, and stored in a
    24  manner  which ensures the confidentiality and integrity of such informa-
    25  tion.
    26    2. Health information shall not be deemed to be public information and
    27  shall not be disclosed, except as authorized by this article.
    28    3. No provision of this article shall be deemed to limit  the  disclo-
    29  sure  of  health  information  by  the  person  to whom such information
    30  relates.
    31    § 1003. Disclosure.  Health  information  disclosed  without  informed
    32  consent  shall, whenever practicable, be disclosed in a non-identifiable
    33  form.  All disclosures of health information made in a  non-identifiable
    34  form  shall be limited to the minimum amount which the person making the
    35  disclosure reasonably believes is necessary to accomplish the purpose of
    36  the disclosure.
    37    § 1004. Notice upon disclosure. 1. Every disclosure of health informa-
    38  tion made pursuant to this article shall include a statement  of  policy
    39  on  the  disclosure  of health information of the entity disclosing such
    40  information. Such statement of policy shall  include  the  following  or
    41  substantially  similar language in a clear, conspicuous, and distinctive
    42  manner:
    43    "Health information may contain information about a person or  persons
    44  which  is  highly  sensitive and entitled to confidentiality and privacy
    45  protection under federal and state laws. Various provisions of the  laws
    46  of  this  state may prohibit further disclosure of health information in
    47  an identifiable form without the written and signed informed consent  of
    48  the  person  or  persons  to whom such information relates. Unauthorized
    49  disclosure could result in the imposition of criminal and civil  liabil-
    50  ity, including imprisonment, fines, and monetary damages."
    51    2.  Upon  the  premises  of  any  entity  where  health information is
    52  disclosed or made accessible, there  shall  be  conspicuously  posted  a
    53  notice,  in letters at least three inches in height, which shall include
    54  the following or substantially similar language:
    55    "Health information may contain information about a person or  persons
    56  which  is  highly  sensitive and entitled to confidentiality and privacy

        A. 2505                            14
 
     1  under federal and state laws. An 'unauthorized disclosure' is    disclo-
     2  sure  of such information outside these premises in an identifiable form
     3  without the written and signed informed consent of the person or persons
     4  to  whom  the information relates.  Unauthorized disclosure could result
     5  in the imposition of criminal and civil liability,  including  imprison-
     6  ment, fines, and monetary damages."
     7    § 1005. Record of disclosures. Every entity possessing health informa-
     8  tion  shall, upon disclosure thereof, establish and maintain a record of
     9  each disclosure. Such record shall include, but shall not be limited to:
    10    1. the name, address, title,  and  institutional  affiliation  of  any
    11  person to whom health information is disclosed;
    12    2. the date and purpose of the disclosure;
    13    3. a brief description of the information disclosed; and
    14    4. the legal authority for the disclosure.
    15    §  1006.  Disclosure without informed consent. No information shall be
    16  disclosed without the written and signed informed consent of the  person
    17  to whom the information relates, unless such disclosure is made:
    18    1. directly to the person to whom the health information relates;
    19    2. to or between public health officials for the purpose of facilitat-
    20  ing  or  accomplishing  a  legitimate public health objective consistent
    21  with their legislative mandate, including:
    22    (a) testing, screening,  reporting,  monitoring,  or  surveillance  of
    23  infectious or contagious diseases or other reportable and non-reportable
    24  conditions or behavioral risk factors;
    25    (b) investigations or interventions; and
    26    (c) public health emergencies as determined by law;
    27    3. in a non-identifiable manner for statistical purposes;
    28    4.  for  the  purpose  of  public health, epidemiological, medical, or
    29  health services research, if:
    30    (a) such information is non-identifiable; or
    31    (b) such disclosures are made pursuant to compelling  need  for  iden-
    32  tifiable information and assurances of protections through the execution
    33  of  a confidentiality agreement, after review by an institutional review
    34  board or committee.  Every  such  agreement  shall  require  any  person
    35  receiving  such information to adhere to protections for the privacy and
    36  security  of  the  information  equivalent  to  or  greater   than   the
    37  protections required by this article;
    38    5. pursuant to any other provision of law; or
    39    6.  to  a  health care provider, to the extent necessary, in a medical
    40  emergency, to protect the health of the person to whom  the  information
    41  relates.
    42    §  1007.  Informed  consent. 1. Except as otherwise authorized by this
    43  article, health information shall  not  be  disclosed  without  informed
    44  consent.
    45    2.  Informed consent may be revoked in writing at any time. Such revo-
    46  cation shall not take effect until the person in receipt of the informed
    47  consent has been provided notice of the revocation thereof.
    48    3. Every informed consent which does not include a date of  expiration
    49  shall  be  deemed  to expire one hundred eighty days after the execution
    50  thereof.
    51    4. No person deemed by law to  be  incompetent  may  provide  informed
    52  consent;  provided,  however,  that  such  person's parent, guardian, or
    53  lawful representative may grant such consent on such person's behalf.
    54    § 1008. Disclosure for criminal or civil litigation. No health  infor-
    55  mation  shall  be disclosed or compelled to be disclosed pursuant to any
    56  criminal, civil, or administrative proceeding, except as follows:

        A. 2505                            15
 
     1    1. A court of competent jurisdiction may order the disclosure of  such
     2  information upon a motion showing:
     3    (a)  a  compelling  need  for the disclosure for the adjudication of a
     4  cause of action, or
     5    (b) that there may exist a clear and imminent danger to the health  of
     6  a  person as the result of contact with the person to whom such informa-
     7  tion relates, or
     8    (c) there exists a clear and imminent danger to the public health  and
     9  welfare, or
    10    (d) the disclosure is otherwise authorized pursuant to this article.
    11    2.  Upon  issuance  of  an  order  pursuant to subdivision one of this
    12  section,  the  court  shall  also  order  that  all  health  information
    13  disclosed pursuant to such order be sealed and be made available only to
    14  the   extent  necessary  for  the  conduct  of  the  criminal  or  civil
    15  proceedings, or as otherwise authorized by law.
    16    3. (a) Every person about whom health information is  sought  pursuant
    17  to  this  section and every person who possesses health information that
    18  is sought pursuant to this section shall be notified of the  motion  for
    19  disclosure of such information.  Every such person shall have a right to
    20  be heard by the court prior to the issuance of any order for the disclo-
    21  sure of health information.
    22    (b)  An  order  for the disclosure of health information may be issued
    23  without such notice and opportunity to be  heard  when  the  motion  for
    24  disclosure is submitted by a public health agency or public health offi-
    25  cer  and states the need for immediate action to avoid a clear and immi-
    26  nent danger to the public health. In assessing whether  there  exists  a
    27  clear  and  immediate danger, the court shall weigh the need for disclo-
    28  sure against:
    29    (i) the private interests of the person to whom the health information
    30  relates, and
    31    (ii) any legitimate public health purpose which  may  be  impaired  by
    32  such  disclosure.  The court shall thereafter issue a written finding of
    33  facts statement.
    34    4. Every order directing the disclosure of health information shall:
    35    (a) limit such disclosure to that information which is  necessary  for
    36  the proceeding;
    37    (b)  limit  such  disclosure to only those persons who have a need for
    38  the health information in the conduct of the  proceedings  and  prohibit
    39  disclosure to any other person;
    40    (c)  include any other restrictions which the court deems necessary to
    41  prevent any unauthorized disclosure; and
    42    (d) conform to the provisions of this article.
    43    § 1009. Criminal penalties. Any person who intentionally or  knowingly
    44  violates the provisions of this article or otherwise disseminates health
    45  information  that  relates  to any person without that person's informed
    46  and expressed written consent is guilty of a misdemeanor which shall  be
    47  punishable  by  a fine of not more than five thousand dollars, or a term
    48  of imprisonment not to exceed one year, or by both such fine and  impri-
    49  sonment.
    50    §  1010. Civil remedy. 1. The attorney general or any person aggrieved
    51  by a violation of this article  may  bring  an  action  to  enjoin  such
    52  violation  of  this article as may have occurred and obtain compensatory
    53  damages, punitive damages, court costs, and reasonable  attorneys'  fees
    54  upon prevailing.
    55    2.  A court shall award such additional relief and damages if it finds
    56  that the defendant acted with malice.

        A. 2505                            16
 
     1    3. (a) The provisions of this article may be enforced concurrently  by
     2  a county attorney, town attorney, city corporation counsel, or any other
     3  lawful  designee  of  a  municipality.  The  court shall award costs and
     4  reasonable attorneys' fees to such municipality where  the  chief  legal
     5  officer or his or her designee prevails. All moneys collected thereunder
     6  shall be retained by such municipality.
     7    (b)  For  the  purposes of this section, the term "municipality" means
     8  any county, city, town, or village.
     9    § 1011. Immunity. No person who is the parent or legal guardian  of  a
    10  minor  or incompetent shall be subject to the provisions of this article
    11  as a result of the disclosure of health  information  relating  to  such
    12  minor or incompetent.
    13    §  1012.  Severability. If any section of this article or part thereof
    14  is adjudged by a court of competent jurisdiction  to  be  invalid,  such
    15  judgment  shall  not affect, impair, or invalidate the remainder of this
    16  article or any other section or part thereof.
    17    § 12. Section 215 of the civil practice law and rules  is  amended  by
    18  adding a new subdivision 9 to read as follows:
    19    9.  An action to recover damages for a violation of health information
    20  privacy under section one thousand ten of the public health law.
    21    § 13. The public service law is amended by adding a new article 5-A to
    22  read as follows:
    23                                  ARTICLE 5-A
    24                       TELECOMMUNICATIONS PRIVACY LAW
 
    25  Section 104. Short title.
    26          104-a. Definitions.
    27          104-b. Collection, use, or disclosure of information.
    28          104-c. Subscriber notice of carrier information practices.
    29          104-d. Third parties.
    30          104-e. Subscriber's right to inspect and correct information.
    31          104-f. Monitoring or intercepting upstream communications  chan-
    32                   nels.
    33          104-g. Security measures.
    34          104-h. Exception to written authorization requirement.
    35          104-i. Examination or disclosure of aggregate data.
    36          104-j. Enforcement.
    37          104-k. Separability clause.
    38    §  104.  Short  title. This article shall be known and may be cited as
    39  the "telecommunications privacy law".
    40    § 104-a. Definitions. As used in this article:
    41    1. "Telecommunications" means the transmission between or among points
    42  specified by the user, of information of the  user's  choosing,  without
    43  change  in  the form or content of the information as sent and received,
    44  by means of electromagnetic transmission, with or without benefit of any
    45  closed transmission medium, including all instrumentalities, facilities,
    46  apparatus, and services (including the collection, storage,  forwarding,
    47  switching,  and  delivery  of such information) essential to such trans-
    48  mission.
    49    2. "Telecommunications carrier" means  any  provider  of  telecommuni-
    50  cation services.
    51    3. "Subscriber" means any person who receives any form of telecommuni-
    52  cations  service  and any other authorized user of a person's subscriber
    53  terminal.
    54    4. "Personally identifiable information" means  any  information  that
    55  identifies  any  person  as  a subscriber to, or user of, a telecommuni-

        A. 2505                            17
 
     1  cations carrier, or that otherwise provides information about that indi-
     2  vidual or his or her use of any service provided by a telecommunications
     3  carrier, except listing information published in "white pages"  directo-
     4  ries.
     5    5. "Ordinary course of business" means the provision of:
     6    (a)  the telecommunications service from which personally identifiable
     7  information is derived, or
     8    (b) services necessary to, or used in, the provision of such  telecom-
     9  munications service, including the publishing of directories.
    10    6.  "Upstream  communications channel" means a signaling path provided
    11  by a telecommunications carrier for the transmission of signals  over  a
    12  telecommunications system from subscriber terminals.
    13    7.  "Intercept"  means  to  acquire,  at  any  time from initiation to
    14  completion of a signal transmission over  a  telecommunications  system,
    15  the content of the information contained in that signal.
    16    8.  "Third  party" means a person other than the subscriber or a tele-
    17  communications carrier or any affiliate or agent thereof; but, such term
    18  does not include an interconnecting carrier  or  an  organization  whose
    19  objective  is  the  detection,  elimination, or reduction of toll fraud,
    20  which has a demonstrable and reasonable requirement for personally iden-
    21  tifiable information.
    22    9.  "Generally  available  database"  means  a  single  collection  of
    23  personally  identifiable  information  generally  used by a telecommuni-
    24  cations carrier in the ordinary course of business. The personally iden-
    25  tifiable information contained in such database may include such  infor-
    26  mation  as  subscriber  name and address, amount due, equipment, billing
    27  records, contracts with the  subscriber,  deposit  information,  payment
    28  information, and billing adjustments.
    29    § 104-b. Collection, use, or disclosure of information. A telecommuni-
    30  cations carrier may collect, receive, store, aggregate, use, rent, sell,
    31  release, or disclose personally identifiable information relating to any
    32  subscriber, subscriber household, or user of a subscriber terminal only:
    33    1. to the extent necessary to provide the carrier's telecommunications
    34  services in the normal course of business;
    35    2.  with  the  subscriber's  consent  described in section one hundred
    36  four-c of this article;
    37    3. to detect the unauthorized receipt of telecommunications  services,
    38  including  cooperative  efforts  among carriers to detect, eliminate, or
    39  reduce toll fraud;
    40    4. pursuant to a court order or subpoena;
    41    5. as specifically permitted by the federal communications  commission
    42  or the public service commission; or
    43    6. otherwise pursuant to law.
    44    §  104-c.  Subscriber  notice  of  carrier information practices. 1. A
    45  telecommunications carrier must  notify  a  subscriber  of  the  general
    46  circumstances  under  which  personally  identifiable information may be
    47  collected, used, or disclosed.
    48    2. In the case of a subscriber's contract entered into  on  or  before
    49  the  effective  date of this article, the notice must be provided within
    50  one hundred twenty days of the effective date of this  article.  In  the
    51  case of a subscriber's contract entered into after the effective date of
    52  this  article,  the notice shall be provided at the time the contract is
    53  entered into.   After the initial notice, notice  must  be  provided  at
    54  least annually.
    55    3.  Notice  must  be  provided  in writing, in plain English, and in a
    56  clear and conspicuous manner.

        A. 2505                            18
 
     1    4. The telecommunications carrier shall not use  personally  identifi-
     2  able  information  in  a  manner other than that described in the notice
     3  without further written notice to the subscriber and, where required  by
     4  this article, the consent of the subscriber.
     5    5.  A  subscriber  may  withdraw  his or her consent at any time. This
     6  withdrawal shall take  effect  not  more  than  thirty  days  after  the
     7  subscriber notifies the telecommunications carrier that consent has been
     8  withdrawn.
     9    6.  A telecommunications carrier shall not refuse to provide any tele-
    10  communications service to any person on account of that person's  refus-
    11  ing  to  grant consent to collect, use, or disclose personally identifi-
    12  able information.
    13    7. A telecommunications carrier must obtain a subscriber's affirmative
    14  informed consent before the carrier may rent, release, or  disclose  the
    15  subscriber's  personally  identifiable  information  to  a  third party,
    16  except as authorized in section one hundred four-d of this article. Such
    17  affirmative informed consent may be obtained only  if  the  telecommuni-
    18  cations  carrier  has notified the subscriber in a clear and conspicuous
    19  written form of:
    20    (a) the kind of personally identifiable information that  the  carrier
    21  will collect and the intended use of that information;
    22    (b)  the  nature,  frequency,  and  purpose  of any disclosure of that
    23  information; and
    24    (c) the persons to whom disclosure may be made.
    25    § 104-d. Third parties. 1. The use of personally identifiable informa-
    26  tion by those receiving the information from a telecommunications carri-
    27  er pursuant to  the  provisions  of  this  article  is  limited  to  the
    28  expressed purposes for which the disclosure is made.
    29    2. Concurrent with, or prior to, the provision of personally identifi-
    30  able  information being provided to others pursuant to the provisions of
    31  this article, if personally identifiable information is  provided  on  a
    32  continuing  basis, written notice shall be provided to the subscriber at
    33  the time of, or  prior  to,  the  first  release  or  transfer  of  such
    34  personally identifiable material and annually thereafter.
    35    3.  A  third party which has received personally identifiable informa-
    36  tion pursuant to this article shall not retain that  information  if  no
    37  longer  needed for the purposes for which it was acquired, nor shall the
    38  party rent, sell, release, or otherwise disclose that information to any
    39  person, unless the third party does so in accordance with the provisions
    40  of this article.
    41    4. Every third party  receiving  personally  identifiable  information
    42  pursuant  to  this  section  shall  certify  annually to the information
    43  provider in writing that it is complying with  the  provisions  of  this
    44  article.
    45    §  104-e.  Subscriber's right to inspect and correct information. 1. A
    46  telecommunications carrier shall disclose to a subscriber all personally
    47  identifiable information which the carrier possesses pertaining to  that
    48  subscriber,  stored  on  its generally applicable database, upon written
    49  request of the subscriber. Such disclosure shall be made  within  thirty
    50  days from the receipt of the subscriber's request.
    51    2.  A  subscriber  may  request  to  examine a copy of the information
    52  described in this section upon written notice. The information  provided
    53  to  the  subscriber  shall  be  in a legible format, which is capable of
    54  being understood by a reasonable person.    The  subscriber  shall  bear
    55  reasonable copying and mailing costs occasioned by the examination.

        A. 2505                            19
 
     1    3.  A  telecommunications carrier shall correct the information upon a
     2  reasonable showing by the subscriber that personally identifiable infor-
     3  mation contained therein is inaccurate. If the telecommunications carri-
     4  er and subscriber cannot resolve a dispute about  the  accuracy  of  any
     5  information  concerning the subscriber, the subscriber may append to the
     6  carrier's record of information a statement setting forth the nature  of
     7  the  dispute.  Such statement shall be retained in the carrier's records
     8  for as long as the disputed information is retained.  Within  forty-five
     9  days  of receiving this notification from the subscriber, the telecommu-
    10  nications carrier shall transmit a corrected copy of the information, or
    11  the subscriber's appended statement, to any party which  was  given  the
    12  erroneous  information.  Copies of all such correspondence shall be sent
    13  to the subscriber.
    14    § 104-f. Monitoring or intercepting upstream communications  channels.
    15  1.  Except  as  otherwise  provided in this article, information derived
    16  from any signal of an upstream communications channel transmitted from a
    17  subscriber terminal for the purpose of monitoring  individual  household
    18  or  communicating patterns may not be disclosed, except with the written
    19  authorization of the subscriber. Such authorizing document must  explain
    20  in  clear and plain English that information concerning the subscriber's
    21  viewing patterns or practices may be disclosed. The provision  of  tele-
    22  phony  services  shall  be exempt from the requirements of this subdivi-
    23  sion.
    24    2. Except as otherwise provided by law, no person  shall  intercept  a
    25  signal   of  an  upstream  communications  channel  transmitted  from  a
    26  subscriber terminal, except the subscriber and the intended receiver  of
    27  the signal.
    28    §  104-g.  Security measures. A telecommunications carrier shall main-
    29  tain such safeguards as are necessary to ensure the physical  and  elec-
    30  tronic  security  and  confidentiality  of  any  personally identifiable
    31  information concerning subscribers.
    32    § 104-h.  Exception  to  written  authorization  requirement.  Written
    33  authorization  is  not  required  for  a  telecommunications  carrier to
    34  conduct system-wide or individually addressed monitoring for the purpose
    35  of verifying system integrity, controlling return transmission paths, or
    36  for any purposes for which personally identifiable  information  may  be
    37  lawfully acquired pursuant to this article.
    38    §  104-i.  Examination  or disclosure of aggregate data.  This article
    39  does not prohibit the examination of aggregate data by, or  the  disclo-
    40  sure  of  such data to, any third party; provided that the data contains
    41  no personally identifiable information concerning any subscriber, his or
    42  her household, or any user of his or her terminal.
    43    § 104-j. Enforcement. 1. Any person found to have violated this  arti-
    44  cle  shall  be liable to the aggrieved subscriber for all actual damages
    45  sustained by such subscriber as a direct result  of  the  violation  and
    46  such  exemplary  damages  as  the court may determine; provided that any
    47  subscriber who prevails or substantially prevails in any action  brought
    48  under  this  section shall receive not less than five hundred dollars in
    49  damages regardless of the amount of actual damage  proved,  plus  costs,
    50  disbursements, and reasonable attorneys' fees.
    51    2. Whenever there shall be a violation of this article, an application
    52  may  be  made  by  the attorney general in the name of the people of the
    53  state of New York to a court or justice having jurisdiction by a special
    54  proceeding to issue an injunction, and upon notice to the  defendant  of
    55  not  less  than  three  days, to enjoin and restrain the continuation of
    56  such violation; and if it shall appear to the satisfaction of the  court

        A. 2505                            20
 
     1  or  justice  that  the defendant has, in fact, violated this article, an
     2  injunction may be  issued  by  such  court  or  justice,  enjoining  and
     3  restraining  any  further  violation,  without  requiring proof that any
     4  person  has,  in  fact,  been  injured  or  damaged thereby. In any such
     5  proceeding, the court may make allowances to  the  attorney  general  as
     6  provided  in  paragraph  six  of subdivision (a) of section eighty-three
     7  hundred three of the civil practice law and rules  and  direct  restitu-
     8  tion.  Whenever  the  court  shall  determine  that  a grossly negligent
     9  violation of this article has occurred, the court  may  impose  a  civil
    10  penalty  of  not  more  than one thousand dollars for each violation. In
    11  connection with any such proposed application, the attorney  general  is
    12  authorized  to take proof and make a determination of the relevant facts
    13  and to issue subpoenas in accordance with the  civil  practice  law  and
    14  rules.
    15    3.  (a) The provisions of this article may be enforced concurrently by
    16  the county attorney, town attorney, city  corporation  counsel,  or  any
    17  other  lawful  designee  of a municipality.  The court shall award costs
    18  and reasonable attorneys' fees to  such  municipality  where  the  chief
    19  legal  officer  or  his  or  her designee prevails. All moneys collected
    20  thereunder shall be retained by such municipality.
    21    (b) For the purposes of this section, the  term  "municipality"  means
    22  any county, city, town, or village.
    23    4.  The  remedies provided by this article shall be in addition to any
    24  other lawful remedy available to a subscriber.
    25    5. No action may be brought  under  the  provisions  of  this  section
    26  unless  such action is commenced within two years of the date of the act
    27  complained of or of the date of discovery of such act.
    28    § 104-k. Separability clause. If any clause,  paragraph,  section,  or
    29  part  of this article shall be adjudged by any court of competent juris-
    30  diction to be invalid  or  unconstitutional,  such  judgment  shall  not
    31  affect,  impair,  or  invalidate  the  remainder  thereof,  but shall be
    32  confined in its operation to the clause, sentence,  paragraph,  section,
    33  or part thereof directly involved in the controversy in which such judg-
    34  ment shall have been rendered.
    35    §  14.  This  act  shall  take effect January 1, 2004, except that any
    36  rules and regulations necessary for the timely  implementation  of  this
    37  act  on  its  effective  date are authorized and directed to be made and
    38  completed on or before such date.