RETRIEVE BILL
 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2115
 
                               2003-2004 Regular Sessions
 
                    IN SENATE
 
                                    February 20, 2003
                                       ___________
 
        Introduced  by  Sens.  MORAHAN,  DeFRANCISCO,  McGEE  --  read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Codes
 
        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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05547-02-3

        S. 2115                             2
 
     1  with the freedoms and  responsibilities  enumerated  in  the  state  and
     2  federal constitutions.
     3    §  3.  Article  5  of  the civil rights law is amended by adding a new
     4  section 49 to read as follows:
     5    § 49. Right to privacy. 1. For purposes of this section: (a)  "person"
     6  means  a  natural  person;  (b)  a "public figure" means any person who,
     7  through his or her profession, achievements, or style of life, has  been
     8  made or otherwise become the object of public interest and scrutiny.
     9    2.  All  persons  have  a  right to privacy, which includes but is not
    10  limited to the following rights:
    11    (a) Security from intrusion upon solitude or  isolation.  Each  person
    12  has  the  right to be secure from unreasonable intrusion upon his or her
    13  seclusion or solitude.
    14    A person aggrieved by a violation of the provisions of this  paragraph
    15  may  maintain  an action to obtain redress pursuant to the provisions of
    16  paragraph (d) of this subdivision  for  any  unreasonable  intrusion  or
    17  violation  of  his  or  her  right of seclusion or solitude. In any such
    18  action, the plaintiff must plead and prove the occurrence of an invasion
    19  or intrusion into aspects of his or her life either: (i) that he or  she
    20  reasonably  wishes to maintain in privacy and keep secure from the scru-
    21  tiny of any observer, or (ii) which invasion  or  intrusion  was  or  is
    22  highly  offensive  or  objectionable  to a reasonable person of ordinary
    23  sensibilities. The  publication,  broadcast,  transmission,  or  dissem-
    24  ination  by  any  means,  whether  commercial or personal, is a required
    25  element of a cause of action for intrusion on seclusion or solitude.  In
    26  any  such  action, it is not necessary for a plaintiff to plead or prove
    27  that any person who made an intrusive  disclosure  benefited  from  such
    28  disclosure.
    29    (b)  Security  from unreasonable publicity given to private life. Each
    30  person has the right to be  secure  from  unreasonable  publicity  being
    31  given to that person's private life.
    32    A  person aggrieved by a violation of the provisions of this paragraph
    33  may maintain an action to obtain redress pursuant to the  provisions  of
    34  paragraph  (d)  of this subdivision for any unreasonable publicity given
    35  to that person's private life. In any such action,  the  plaintiff  must
    36  plead  and  prove  that:  (i)  there  has  been a public disclosure of a
    37  private fact, (ii) the fact that has been made public is one that  would
    38  be highly embarrassing to a reasonable person of ordinary sensibilities,
    39  and (iii) the fact disclosed is not of legitimate concern to the public.
    40  For  purposes  of this subdivision, a person deemed by a court of compe-
    41  tent jurisdiction to be a public  figure  does  not  have  a  diminished
    42  privacy  interest.  In any such action, it is not necessary for a plain-
    43  tiff to plead or prove that any person  who  made  a  public  disclosure
    44  benefited from such disclosure.
    45    (c)  Security  from  publicity  placing  person in a false light. Each
    46  person has the right to be secure from publicity that places that person
    47  in a false light before the public. A person aggrieved by a violation of
    48  the provisions of this  paragraph  may  maintain  an  action  to  obtain
    49  redress  pursuant to the provisions of paragraph (d) of this subdivision
    50  for any unreasonable publicity given to that person's private  life.  In
    51  any  such action, the plaintiff must plead and prove that: (i) there has
    52  been a public disclosure attributing to such person any characteristics,
    53  conduct, or beliefs that are false or misleading and have  the  capacity
    54  to  place such person in a false light, (ii) any of the false character-
    55  istics, conduct, or beliefs which have been publicly disclosed would  be
    56  highly  offensive  or  objectionable  to a reasonable person of ordinary

        S. 2115                             3
 
     1  sensibilities, and (iii) the discloser  of  the  false  characteristics,
     2  conduct,  or  beliefs  which  placed  the plaintiff in a false light had
     3  knowledge of, or acted in reckless disregard as to, the falsity  of  the
     4  matters  disclosed. In any such action, it is not necessary for a plain-
     5  tiff to plead or prove that any person who made  a  disclosure  of  such
     6  false  characteristics,  conduct, or beliefs benefited from such disclo-
     7  sure.
     8    (d) Any person whose privacy has been invaded in any  of  the  manners
     9  provided  for  in  this subdivision may make an application and bring an
    10  action in a court of competent jurisdiction to obtain: (i) An injunction
    11  to enjoin and restrain such invasion of privacy, and, if it  appears  to
    12  the  court  that the privacy of such person has been invaded, an injunc-
    13  tion shall be issued by the court enjoining and restraining  such  inva-
    14  sion;  (ii)  Actual  damages  sustained  as a result of such invasion of
    15  privacy and such exemplary damages and other remedies as the court deems
    16  appropriate; and (iii) Such costs and fees as may have been necessary to
    17  bring such action and reasonable attorneys' fees.
    18    (e) In any action for invasion of privacy in which publication, broad-
    19  cast, or any other electronic transmission is an element of the cause of
    20  action, the defenses of consent, newsworthiness, and qualified or  abso-
    21  lute privilege shall be available to ensure that the freedoms guaranteed
    22  by  the  United  States  and  New  York state constitutions shall not be
    23  infringed.
    24    (f) Such causes of action provided for by this  section  shall  be  in
    25  addition  to  any  other  cause  of action provided under section fifty,
    26  fifty-a, fifty-b, fifty-c, fifty-d, or fifty-one of this article.
    27    § 4. Section 50 of the civil rights law is amended to read as follows:
    28    § 50. Right of privacy; nonconsensual  use  of  name  or  likeness.  A
    29  person,   firm  [or],  partnership,  corporation,  association,  limited
    30  liability company, or other entity that uses for  advertising  purposes,
    31  or  for  the purposes of trade, the name, portrait [or], picture, voice,
    32  actual performance, identity, nickname, or objects of any living  person
    33  without  having first obtained the written consent of such person, or if
    34  a minor of his or her parent or guardian, is guilty of a misdemeanor.
    35    § 5. Section 51 of the civil rights law, as amended by chapter 674  of
    36  the laws of 1995, is amended to read as follows:
    37    §  51.  Action  for injunction and [for] damages; nonconsensual use of
    38  name or likeness. Any person whose name, portrait, picture [or],  voice,
    39  actual  performance,  identity, nickname, or objects is used within this
    40  state for advertising purposes or for the purposes of trade without  the
    41  written  consent  first obtained as [above] provided in section fifty of
    42  this article may maintain an equitable action in the  supreme  court  of
    43  this  state  against  the  person,  firm [or], partnership, corporation,
    44  association, limited liability company, or other entity so using his  or
    45  her  name,  portrait, picture [or], voice, actual performance, identity,
    46  nickname, or objects, to prevent and restrain the use thereof and obtain
    47  such costs and fees as may have been necessary to bring such action; and
    48  may also sue and obtain costs and  reasonable  legal  fees  and  recover
    49  damages  for  any  injuries  sustained  by reason of such use and if the
    50  defendant shall  have  knowingly  used  such  person's  name,  portrait,
    51  picture  [or], voice, actual performance, identity, nickname, or objects
    52  in such manner as is forbidden or declared to  be  unlawful  by  section
    53  fifty  of this article, the jury, in its discretion, may award exemplary
    54  damages. But nothing contained in this article shall be so construed  as
    55  to prevent any person, firm [or], partnership, corporation, association,
    56  limited  liability  company,  or  other entity from selling or otherwise

        S. 2115                             4
 
     1  transferring any material containing such name, portrait, picture  [or],
     2  voice,  actual  performance,  identity, nickname, or objects in whatever
     3  medium to any user of such name, portrait, picture [or],  voice,  actual
     4  performance,  identity,  nickname, or objects, or to any third party for
     5  sale or transfer directly or indirectly to such a user,  for  use  in  a
     6  manner  lawful  under  this  article;  nothing contained in this article
     7  shall be so construed as to prevent any person, firm [or],  partnership,
     8  corporation,  association,  limited  liability company, or other entity,
     9  practicing the profession of photography, from exhibiting  in  or  about
    10  his or her or its establishment specimens of the work of such establish-
    11  ment,  unless  the same is continued by such person, firm [or], partner-
    12  ship, corporation, association, limited liability    company,  or  other
    13  entity  after  written  notice  objecting  thereto has been given by the
    14  person portrayed; and nothing contained in  this  article  shall  be  so
    15  construed as to prevent any person, firm [or], partnership, corporation,
    16  association,  limited  liability company, or other entity from using the
    17  name, portrait, picture [or], voice, actual performance, identity, nick-
    18  name, or objects of any manufacturer or dealer in  connection  with  the
    19  goods,  wares  and merchandise manufactured, produced or dealt in by him
    20  or her which he or she has sold or disposed of with such name, portrait,
    21  picture [or], voice, actual performance, identity, nickname, or  objects
    22  used  in connection therewith; or from using the name, portrait, picture
    23  [or], voice, actual performance, identity, nickname, or objects  of  any
    24  author,  composer  or  artist  in  connection  with his or her literary,
    25  musical or artistic productions which he or she has sold or disposed  of
    26  with such name, portrait, picture [or], voice, actual performance, iden-
    27  tity,  nickname,  or  objects  used  in  connection therewith.   Nothing
    28  contained in this section shall be construed to prohibit  the  copyright
    29  owner  of  a  sound  or  video  recording from disposing of, dealing in,
    30  licensing or selling that sound or video recording to any party, if  the
    31  right  to  dispose  of,  deal  in,  license  or sell such sound or video
    32  recording has been conferred by contract or other  written  document  by
    33  such living person or the holder of such right. Nothing contained in the
    34  foregoing  sentence  shall  be deemed to abrogate or otherwise limit any
    35  rights or remedies otherwise conferred by federal law or state law.
    36    § 6. Article 5 of the civil rights law is amended by  adding  two  new
    37  sections 52-a and 52-b to read as follows:
    38    §  52-a.  Recording  and  reproducing visual images and conversations.
    39  Except as provided for in articles seven hundred and seven hundred  five
    40  of the criminal procedure law, or for the protection of personal proper-
    41  ty within a residence, the protection of property within the premises of
    42  a  business or organization, the protection of commercial or residential
    43  real estate, or for the authorized reporting of public events by employ-
    44  ees of news gathering and reporting organizations, or by private  inves-
    45  tigators  registered  with  or  licensed  by the secretary of state, and
    46  after having provided written notification and  obtaining  a  permit  or
    47  other  written  authorization for the use of any device that is designed
    48  to record or reproduce any visual image or conversation within the mean-
    49  ing of this section and as may be provided for by law or  regulation  by
    50  any  state,  county,  or municipal authority, or for purposes of traffic
    51  control by any duly designated agency of government, a person is  guilty
    52  of  unlawfully  recording  a  visual  image  or  conversation when, with
    53  intent, he or she chemically, mechanically, or electronically records or
    54  otherwise reproduces any visual image or conversation without the  know-
    55  ledge  or expressed consent of any person whose image or conversation he
    56  or she is recording or reproducing.

        S. 2115                             5
 
     1    § 52-b. Privacy of official records. 1.  No  public  entity,  nor  any
     2  officer or employee thereof, shall disclose any information derived from
     3  highway, bridge, tunnel, and other thoroughfare toll records, and commu-
     4  ter  railroad  and  transit facility records, including E-Z Pass and all
     5  other  pass  card system records; provided, however, that the provisions
     6  of  this  subdivision  shall  not  prohibit  a  public  entity,  in  its
     7  discretion  from entering into agreements with any other public entities
     8  for the provision of such information  when  necessary  to  further  the
     9  public entity's official functions.
    10    2. Notwithstanding any other provision of law, an agency of government
    11  in  receipt of a request for a record which contains any personal infor-
    12  mation shall reject such a request if the  agency  determines  that  the
    13  record sought would, if disclosed, be used for any commercial purpose or
    14  any  other purpose unrelated to any of the purposes for which the agency
    15  maintains such records.
    16    3. The provisions of this section shall not apply to a police  agency,
    17  a  district  attorney  or his or her assistants, the attorney general or
    18  his or her deputies or assistants, or a grand jury  in  connection  with
    19  their law enforcement functions.
    20    4.  For  purposes  of this section, "public entity" means any state or
    21  local department, agency, board, bureau,  division,  commission,  public
    22  authority,  public  benefit  corporation,  office,  or  any other entity
    23  performing a governmental or proprietary function for the state  or  any
    24  of its political subdivisions.
    25    §  7.  Article 32 of the general business law, as added by chapter 457
    26  of the laws of 1993, is REPEALED and a new article 32-A is added to read
    27  as follows:
    28                                 ARTICLE 32-A
    29            WRONGFUL DISCLOSURE OF PROTECTED PERSONAL INFORMATION
 
    30  Section 676. Definitions.
    31          677. Wrongful disclosure of protected personal information.
    32          678. Civil liability.
    33    § 676. Definitions. 1. "Commercial entity"  means  any  person,  firm,
    34  partnership,  corporation,  association,  limited  liability company, or
    35  other entity:
    36    (a) who for commercial,  financial,  or  professional  gain,  monetary
    37  fees,  dues,  or on a cooperative, nonprofit, or pro-bono basis, engages
    38  in the practice of collecting personal protected information;
    39    (b) who obtains protected personal information pursuant to this  chap-
    40  ter; or
    41    (c)  who  is  any employee, agent, or contractor of a person or entity
    42  covered under paragraph (a) or (b) of this subdivision.
    43    2. "Disclose" means to release, publish,  share,  transfer,  transmit,
    44  disseminate,  show,  or otherwise divulge protected personal information
    45  to any person other than the person who is the subject of such  informa-
    46  tion. Use of protected personal information within the entity in accord-
    47  ance  with  the  provisions of this article shall not constitute disclo-
    48  sure.
    49    3. "Protected personal information"  means  individually  identifiable
    50  information about an individual, including:
    51    (a) first, middle, and last names,
    52    (b) home or any other physical or legal address or domicile, including
    53  street name and name of a city, town, or village,
    54    (c) electronic mail address,
    55    (d) telephone number,

        S. 2115                             6
 
     1    (e) social security number, and
     2    (f) purchases and purchasing habits or activities.
     3    4.  The  term "consumer" means any renter, purchaser, or subscriber of
     4  goods or services from a commercial entity.
     5    5. The term "ordinary course of business" means debt collection activ-
     6  ities, order fulfillment, request processing, and the transfer of owner-
     7  ship.
     8    § 677. Wrongful disclosure of protected  personal  information.  1.  A
     9  commercial  entity  which  discloses  to  any person or other commercial
    10  entity, protected personal information relating to any customer of  such
    11  provider shall be liable to the aggrieved person for the relief provided
    12  in section six hundred seventy-eight of this article.
    13    2.  A  commercial entity shall disclose protected personal information
    14  relating to any consumer:
    15    (a) to a grand jury pursuant to a grand jury subpoena;
    16    (b) pursuant to a court order, in a civil proceeding upon the  showing
    17  of  compelling  need  for the information that cannot be accommodated by
    18  any other means, or in a criminal proceeding upon a showing  of  legiti-
    19  mate  need  for the information that cannot be accommodated by any other
    20  means, if:
    21    (i) the consumer is given reasonable notice, by the person seeking the
    22  disclosure, of the court proceeding relevant  to  the  issuance  of  the
    23  court order;
    24    (ii)  the  consumer  is afforded the opportunity to appear and contest
    25  the claim of the person seeking the disclosure; and
    26    (iii) the court imposes appropriate  safeguards  against  unauthorized
    27  disclosure;
    28    (c)  to  a  law  enforcement  agency  pursuant  to  a warrant lawfully
    29  obtained under the laws of this state or the United States; or
    30    (d) to a court pursuant to a civil action  to  enforce  collection  or
    31  payment past due or to demonstrate the existence of a business relation-
    32  ship.  Notwithstanding the provisions of this paragraph, the court shall
    33  impose  appropriate  safeguards  against  unauthorized   disclosure   of
    34  protected personal information.
    35    3.  A  commercial  entity  may disclose protected personal information
    36  concerning any consumer:
    37    (a) to the consumer;
    38    (b) to any person with the informed written consent of  the  consumer;
    39  or
    40    (c) to any person directly involved in the commercial transaction with
    41  the  consumer  where the disclosure is incidental to the ordinary course
    42  of business.
    43    4. Protected personal information obtained in any manner other than as
    44  provided in this section shall not be received in evidence in any trial,
    45  hearing, arbitration, or any other proceeding in or  before  any  court,
    46  grand  jury,  department,  officer, agency, regulatory body, legislative
    47  committee, or other authority of the state or any political  subdivision
    48  thereof.
    49    §  678.  Civil liability. 1. Whenever the court shall determine that a
    50  violation of section six  hundred  seventy-seven  of  this  article  has
    51  occurred,  if  such violation constitutes the first such offense by such
    52  person, firm, partnership, corporation, association,  limited  liability
    53  company,  or other entity, the court shall impose a civil penalty not to
    54  exceed five hundred dollars for each instance where it has  been  deter-
    55  mined  that a consumer's privacy has been violated. A second offense and
    56  any subsequent offense shall be punishable by a  civil  penalty  of  one

        S. 2115                             7
 
     1  thousand  dollars  for each instance where it has been determined that a
     2  consumer's privacy has been violated.
     3    2.  Whenever  the  attorney  general  determines that any violation of
     4  section six hundred seventy-seven of this article has  occurred  he  may
     5  bring  an  action  consistent  with the provisions of subdivision (b) of
     6  section three hundred forty-nine of this chapter. In any such action the
     7  court shall award costs and reasonable attorneys' fees to the  state  of
     8  New York where the attorney general prevails.
     9    3.  The provisions of this article may be enforced concurrently by the
    10  director of a municipal consumer affairs office or by the county,  town,
    11  or  village attorney, city corporation counsel, or other lawful designee
    12  of a municipality. The court shall award costs and reasonable attorneys'
    13  fees to the municipality where the chief legal officer  or  his  or  her
    14  designee  prevails. All moneys collected thereunder shall be retained by
    15  the municipality.
    16    4. Any person whose right of privacy has been interfered with  because
    17  of  a violation of section six hundred seventy-seven of this article may
    18  bring an action in his or her own name to enjoin any  individual,  firm,
    19  partnership,  corporation,  limited  liability  company, or other entity
    20  from violating this article and to recover  such  actual  and  exemplary
    21  damages,  in  addition  to such costs and reasonable attorneys' fees, as
    22  the court may determine reasonable.
    23    § 8. The general business law is amended by adding  two  new  sections
    24  394-f and 394-g to read as follows:
    25    §  394-f. Unsolicited advertisements. 1. For purposes of this section,
    26  the following terms have the following meanings:
    27    (a) "Personal information" means any data contained in a  record  that
    28  allows for the identification of a person including, but not limited to,
    29  a name in conjunction with a residence address, electronic mail address,
    30  telephone  number,  social  security  number,  date  of  birth, physical
    31  description, profession, medical history, income, or credit rating.
    32    (b) "Unsolicited advertisement" means any written solicitation for the
    33  purchase, lease, rent, contract, or investment in  property,  goods,  or
    34  services,  including  the  offering  of a prize or award in exchange for
    35  attendance or purchase at any location for purposes of  a  solicitation,
    36  or  contribution  to  any  natural  person without that natural person's
    37  expressed consent or authorization.
    38    (c) "Unsolicited electronic advertisement" means the initiation or any
    39  other transmission of  any  telephone  call,  electronic  mail,  telefax
    40  communication,  internet  transmission  or  any other form of electronic
    41  communication soliciting the purchase, lease, rent, contract, or invest-
    42  ment in property, goods, or services, including the offer of a prize  or
    43  award  in  exchange  for  attendance  or  purchase  at  any location for
    44  purposes of a solicitation, or contribution to any natural person  with-
    45  out that natural person's expressed consent or authorization.
    46    (d)  "Consumer"  means  a natural person who is solicited to purchase,
    47  lease, rent, contract, or invest in property, goods, or services includ-
    48  ing receiving a prize or award in exchange for a purchase or attendance.
    49    (e) "Established business relationship"  means  a  prior  or  existing
    50  relationship  formed by a voluntary communication between a consumer and
    51  a person, firm, partnership, corporation, association, limited liability
    52  company, or other entity on the basis of an  application,  purchase,  or
    53  transaction  by  the  consumer  regarding  property,  goods, or services
    54  offered by such person,  firm,  partnership,  corporation,  association,
    55  limited  liability  company, or other entity within the past year, which
    56  relationship has not been terminated by  the  consumer  or  the  person,

        S. 2115                             8
 
     1  firm,  partnership, corporation, association, limited liability company,
     2  or other entity.
     3    2.  Whenever  a  person,  firm, partnership, corporation, association,
     4  limited liability company, or other entity purchases or acquires through
     5  trade a listing of consumers utilized in any direct, unsolicited  adver-
     6  tisement,  such  person,  firm,  partnership,  corporation, association,
     7  limited liability company, or  other  entity  shall  provide  clear  and
     8  conspicuous  written  notice to the consumer within the advertisement or
     9  affixed thereto of the consumer's right, hereby granted, of deleting his
    10  or her name and address from such mailing list and of his or  her  right
    11  not  to  receive  any  further  unsolicited advertisements. Such written
    12  disclosure shall also indicate that such consumer may at any time delete
    13  his or her name from such mailing list. Such  written  disclosure  shall
    14  provide  a  reasonable and simple method by which the consumer can exer-
    15  cise such preference.
    16    3. (a) Whenever a person, firm, partnership, corporation, association,
    17  limited liability company, or other entity purchases or acquires through
    18  trade a listing of  consumers  utilized  in  any  unsolicited  telephone
    19  advertisement, such person, firm, partnership, corporation, association,
    20  limited  liability  company,  or  other  entity  shall  disclose to such
    21  consumer that he or she has the right, hereby granted, of  deleting  his
    22  or  her name, address, and telephone number from such telephone list and
    23  of his or her right not to receive  any  further  unsolicited  telephone
    24  advertisement.
    25    (b)  Such  disclosure  shall be made at the beginning of the telephone
    26  call and shall be made in a  clear  and  conspicuous  manner  and  shall
    27  inform the consumer that he or she can remove his or her name, telephone
    28  number,  and  address  from  the  list  at any time and shall inform the
    29  consumer of the reasonable and simple means including, but  not  limited
    30  to, verbally advising the caller by which the consumer can exercise such
    31  preference.
    32    4.  Such  person, firm, partnership, corporation, association, limited
    33  liability company, or other entity referred to in subdivisions  two  and
    34  three  of  this  section  shall maintain an exclusion list and shall not
    35  send any unsolicited advertisement or  make  any  unsolicited  telephone
    36  advertisement  to any consumer on such list. Such person, firm, partner-
    37  ship, corporation, association,  limited  liability  company,  or  other
    38  entity  is  prohibited  from  using such list for any purpose other than
    39  compliance with the requirements of this section, and such person, firm,
    40  partnership, corporation, association,  limited  liability  company,  or
    41  other  entity  shall not, sell, rent, exchange, or otherwise make avail-
    42  able such exclusion list to any third party.
    43    5. No person, firm,  partnership,  corporation,  association,  limited
    44  liability  company, or other entity shall be deemed to have violated the
    45  provisions of this section if such  person,  firm,  partnership,  corpo-
    46  ration,  association,  limited liability company, or other entity shows,
    47  by a preponderance of the evidence, that the violation  was  not  inten-
    48  tional  and  resulted  from  a  bona fide error made notwithstanding the
    49  maintenance of procedures reasonably adopted to avoid any such error.
    50    6. Disclosure shall not be required in such instances where a  person,
    51  firm,  partnership, corporation, association, limited liability company,
    52  or other entity has established a business relationship with a  consumer
    53  through the sale of goods, services, securities, or real property.
    54    7.  Whenever  the court determines that a violation of subdivision two
    55  or three of this section has occurred, the court shall  impose  a  civil
    56  penalty  not to exceed two hundred fifty dollars for each instance where

        S. 2115                             9
 
     1  it has been determined that a  consumer's  privacy  has  been  violated.
     2  Whenever  the  court  determines that a violation of subdivision four of
     3  this section has occurred, if such violation constitutes the first  such
     4  offense  by  such  person,  firm, partnership, corporation, association,
     5  limited liability company, or other entity, the  court  shall  impose  a
     6  civil penalty not to exceed five hundred dollars for each instance where
     7  it  has  been  determined that a consumer's privacy has been violated. A
     8  second offense and any subsequent offense shall be punishable by a civil
     9  penalty of one thousand dollars for each  instance  where  it  has  been
    10  determined that a consumer's privacy has been violated.
    11    8.  (a) Whenever the attorney general determines that any violation of
    12  subdivision two, three, or four of this section has occurred, he or  she
    13  may bring an action consistent with the provisions of subdivision (b) of
    14  section  three  hundred  forty-nine of this chapter. In any such action,
    15  the court shall award costs and reasonable attorneys' fees to the  state
    16  of New York where the attorney general prevails.
    17    (b) The provisions of this section may be enforced concurrently by the
    18  director  of a municipal consumer affairs office or by the county, town,
    19  or village attorney, city corporation counsel, or other lawful  designee
    20  of  a  municipality.   The court shall award costs and reasonable attor-
    21  neys' fees to such municipality where the chief legal officer or his  or
    22  her designee prevails. All moneys collected thereunder shall be retained
    23  by the municipality.
    24    (c) Any person whose right of privacy has been interfered with because
    25  of  a  violation  of  this section may bring an action in his or her own
    26  name to enjoin any individual, firm, partnership,  corporation,  limited
    27  liability  company,  or  other  entity  from  violating subdivision two,
    28  three, or four of this section and to recover such  real  and  exemplary
    29  damages,  in  addition  to such costs and reasonable attorneys' fees, as
    30  the court may determine reasonable.
    31    § 394-g. Sale, rental, or exchange of personal identification informa-
    32  tion. 1. For purposes of this section the term:
    33    (a) "Commercial purposes" means the  solicitation  for  the  purchase,
    34  lease,  contract, or investment in property, goods, or services, includ-
    35  ing the offering of a prize in exchange for a purchase or for attendance
    36  at any location for the purposes of a solicitation, the solicitation for
    37  a contribution, or the business  of  compiling  personal  identification
    38  information for sale, lease, or rent.
    39    (b)   "Personal  identification  information"  means  any  information
    40  including, but not limited to, a natural person's name,  address,  tele-
    41  phone  or  fax number, electronic mail address, occupation, age, gender,
    42  credit history and rating, purchasing history, and services contracted.
    43    (c) "Consumer" means a natural person about whom personal  identifica-
    44  tion information has been collected.
    45    2.  Every person, firm, partnership, corporation, association, limited
    46  liability company, or other  entity  who  sells,  rents,  exchanges,  or
    47  releases  personal identification information to any other person, part-
    48  nership, corporation, association, limited liability company,  or  other
    49  entity for their commercial purposes shall:
    50    (a)  upon initial contact with a consumer, provide clear and conspicu-
    51  ous written notification, and at least annually thereafter shall provide
    52  written notification, of such practice to each consumer of  their  prac-
    53  tice  of selling, renting, exchanging, or releasing personal identifica-
    54  tion information;

        S. 2115                            10
 
     1    (b) clearly inform each consumer of  the  option  of  prohibiting  the
     2  sale,  rental,  exchange,  or  release  of their personal identification
     3  information for such commercial purpose;
     4    (c)  provide  written  notification  to each consumer at least fifteen
     5  days prior to the commencement of any sale, rental, exchange, or release
     6  of any personal identification information to any  other  person,  firm,
     7  partnership,  corporation,  association,  limited  liability company, or
     8  other entity for commercial purposes.
     9    3. Such notifications as may be required by subdivision  two  of  this
    10  section  may  be  inserted  in  a  billing  statement  or other mailing,
    11  provided that the notification  is  made  in  a  clear  and  conspicuous
    12  manner.  Such  notification shall provide a reasonable and simple method
    13  whereby a consumer may indicate his or her preference of  permitting  or
    14  prohibiting  the sale, rental, exchange, or release of personal informa-
    15  tion to another person,  firm,  partnership,  corporation,  association,
    16  limited liability company, or other entity for commercial purposes.
    17    4.  Every person, firm, partnership, corporation, association, limited
    18  liability company, or other entity engaging in the  practices  described
    19  in  paragraph  (a)  of  subdivision two of this section shall maintain a
    20  list of those  consumers  who  have  exercised  their  option  of  being
    21  excluded  from  any  sale, lease, exchange, or release of their personal
    22  identification information.
    23    5. No person, firm,  partnership,  corporation,  association,  limited
    24  liability  company, or other entity shall be deemed to have violated the
    25  provisions of this section if  such  person,  partnership,  corporation,
    26  association,  limited  liability  company,  or  other  entity shows by a
    27  preponderance of evidence that the violation  was  not  intentional  and
    28  resulted  from a bona fide error made notwithstanding the maintenance of
    29  procedures reasonably adopted to avoid such error.
    30    6. The provisions of this section prohibiting the release of  informa-
    31  tion  shall  not  apply  to  the  reporting  of necessary information to
    32  consumer reporting agencies, in compliance with the  provisions  of  the
    33  federal  fair  credit reporting act (15 U.S.C. section 1681 et seq.) and
    34  article twenty-five of this chapter, known as the "fair credit reporting
    35  act", and any regulations promulgated thereunder.
    36    7. Whenever the court determines that a violation of  subdivision  two
    37  or  three  of  this section has occurred, the court shall impose a civil
    38  penalty not to exceed two hundred fifty dollars for each instance  where
    39  it  has  been  determined  that  a consumer's privacy has been violated.
    40  Whenever the court determines that a violation of  subdivision  four  of
    41  this  section has occurred, if such violation constitutes the first such
    42  offense by such person,  firm,  partnership,  corporation,  association,
    43  limited  liability  company,  or  other entity, the court shall impose a
    44  civil penalty not to exceed five hundred dollars for each instance where
    45  it has been determined that a consumer's privacy has  been  violated.  A
    46  second offense and any subsequent offense shall be punishable by a civil
    47  penalty  of  one  thousand  dollars  for each instance where it has been
    48  determined that a consumer's privacy has been violated.
    49    8. (a) Whenever the attorney general determines that any violation  of
    50  subdivision  two, three, or four of this section has occurred, he or she
    51  may bring an action consistent with the provisions of subdivision (b) of
    52  section three hundred forty-nine of this chapter. In  any  such  action,
    53  the  court shall award costs and reasonable attorneys' fees to the state
    54  of New York where the attorney general prevails.
    55    (b) The provisions of this section may be enforced concurrently by the
    56  director of a municipal consumer affairs office or by the county,  town,

        S. 2115                            11
 
     1  or  village attorney, city corporation counsel, or other lawful designee
     2  of a municipality.  The court shall award costs  and  reasonable  attor-
     3  neys'  fees to such municipality where the chief legal officer or his or
     4  her designee prevails. All moneys collected thereunder shall be retained
     5  by the municipality.
     6    (c) Any person whose right of privacy has been interfered with because
     7  of  a  violation  of  this section may bring an action in his or her own
     8  name to enjoin any individual, firm, partnership,  corporation,  limited
     9  liability  company,  or  other  entity  from  violating subdivision two,
    10  three, or four of this section and to recover such actual and  exemplary
    11  damages,  in  addition  to such costs and reasonable attorneys' fees, as
    12  the court may determine reasonable.
    13    § 9. Section 380-l of the general business law, as amended by  chapter
    14  619 of the laws of 2002, is amended to read as follows:
    15    §  380-l.  Civil  liability  for  [willful] noncompliance. Any person,
    16  firm, partnership,  corporation,  [or]  association,  limited  liability
    17  company,  or  other  entity  whose  [knowing  and  willful] violation of
    18  section three hundred eighty-s of this article resulted  in  the  trans-
    19  mission  or provision to a consumer reporting agency of information that
    20  would otherwise not have been transmitted or provided, and any  consumer
    21  reporting  agency  or  user  of  information who or which [willfully and
    22  knowingly] fails to comply with any requirement imposed under this arti-
    23  cle with respect to any consumer is liable to that consumer in an amount
    24  equal to the sum of:
    25    (a) Any actual damages sustained by the consumer as a result  of  such
    26  failure  or as a result of a violation of section three hundred eighty-s
    27  of this article;
    28    (b) Such amount of punitive damages as the court may allow; and
    29    (c) In the case of any successful  action  to  enforce  any  liability
    30  under  this  section,  the  costs of the action together with reasonable
    31  attorney's fees as determined by the court.
    32    § 10. Section 380-t of the general  business  law,  as  relettered  by
    33  chapter  619  of the laws of 2002, is relettered section 380-u and a new
    34  section 380-t is added to read as follows:
    35    § 380-t. Enforcement. 1. Upon any violation of this article, an appli-
    36  cation may be made by the attorney general in the name of the people  of
    37  the  state  to  a  court  having jurisdiction. If it shall appear to the
    38  satisfaction of the court that the respondent has violated any provision
    39  of this article, an injunction may be issued, enjoining and  restraining
    40  any  further  violation, without requiring proof that any person has, in
    41  fact, been injured or damaged thereby. In any such proceeding, the court
    42  may make allowances to the attorney general as provided in paragraph six
    43  of subdivision (a) of section eight thousand three hundred three of  the
    44  civil practice law and rules, and direct restitution. Whenever the court
    45  determines  that a violation of this section has occurred, the court may
    46  impose a civil penalty  of  not  more  than  one  thousand  dollars  per
    47  violation.
    48    2.  The provisions of this article may be enforced concurrently by the
    49  director of a municipal consumer affairs office or by the county,  town,
    50  or  village attorney, city corporation counsel, or other lawful designee
    51  of a municipality. The court shall award costs and reasonable attorneys'
    52  fees to such municipality where the chief legal officer or  his  or  her
    53  designee  prevails. All moneys collected thereunder shall be retained by
    54  the municipality.
    55    3. Any person aggrieved by a violation of this article  may  bring  an
    56  action  in  his or her own name to enjoin any individual, firm, partner-

        S. 2115                            12
 
     1  ship, corporation, association,  limited  liability  company,  or  other
     2  entity  from  engaging  in any further violation of this article and may
     3  request such real and exemplary damages in addition to  such  costs  and
     4  reasonable attorneys' fees as the court may determine.
     5    §  11.  The public health law is amended by adding a new article 10 to
     6  read as follows:
     7                                  ARTICLE 10
     8                         HEALTH INFORMATION PRIVACY
 
     9  Section 1000. Definitions.
    10          1001. Application.
    11          1002. Duty to maintain the confidentiality  of  health  informa-
    12                   tion.
    13          1003. Disclosure.
    14          1004. Notice upon disclosure.
    15          1005. Record of disclosures.
    16          1006. Disclosure without informed consent.
    17          1007. Informed consent.
    18          1008. Disclosure for criminal or civil litigation.
    19          1009. Criminal penalties.
    20          1010. Civil remedy.
    21          1011. Immunity.
    22          1012. Severability.
    23    § 1000. Definitions. As used in this article:
    24    1.  "Disclose", "disclosed" and "disclosure" means the release, trans-
    25  fer, dissemination, or provision of access to or other communication  of
    26  all  or  any  portion  of  health  information by any means to any other
    27  person, firm, partnership, corporation, association,  limited  liability
    28  company, or other entity.
    29    2.  "Health information" means any information which identifies or can
    30  be readily associated with the identity of a person and relates  to  the
    31  person's  genetic structure, past, present, or future physical or mental
    32  health status, condition,  treatment,  service,  products  purchased  or
    33  provision of care.
    34    3.  "Informed  consent"  means  a written and signed authorization for
    35  disclosure of health information by the person to whom such  information
    36  relates. Every such informed consent shall be dated and state the person
    37  or persons to whom disclosure is authorized.
    38    4.  "Legitimate  public  health  purpose" means those population-based
    39  activities or individual efforts primarily aimed at  the  prevention  of
    40  injury,  disease,  or premature mortality, or promotion of health in the
    41  community, including (a) assessing the health needs and  status  of  the
    42  community   through   public  health  surveillance  and  epidemiological
    43  research, (b) developing public health policy, (c) responding to  public
    44  health  needs  and emergencies, and (d) such other public health related
    45  activities or efforts specifically authorized by federal or state law.
    46    5. "Non-identifiable information" means any health related information
    47  which does not identify nor can readily be associated with any  specific
    48  person  through  other  information,  including  names,  social security
    49  numbers, addresses, employers, medical providers,  insurance  providers,
    50  unique  identifiers,  or  other  facts, without the use of encryption, a
    51  code, a key, or any other technological tool.
    52    6. "Public health" means  population-based  activities  or  individual
    53  efforts  primarily  aimed at the prevention of injury, disease or prema-
    54  ture mortality, or the promotion of health.

        S. 2115                            13
 
     1    7. "Public health agency" means any organization, operated  or  funded
     2  in  whole  or  in part by the federal government, the state or any local
     3  government, which collects, maintains, uses, or stores  health  informa-
     4  tion  for  public health purposes. Such organizations shall include, but
     5  not  be limited to, public health offices established by federal, state,
     6  or local law, testing laboratories, testing facilities, treatment  clin-
     7  ics, research facilities, and information storage facilities.
     8    8.  "Public  health  information" means any health information that is
     9  collected, maintained, used, disclosed, or stored by any  public  health
    10  agency,  including  information  regarding  whether the agency possesses
    11  such information.
    12    9. "Public health official" means any officer,  employee,  contractor,
    13  intern,  or  volunteer of a public health agency with authorization from
    14  the agency or pursuant to law to collect, maintain,  use,  disclose,  or
    15  store public health information.
    16    10.  "Public  information" means information which is available to the
    17  general public for inspection and review pursuant to article six of  the
    18  public officers law.
    19    11.  "Use  and  used"  means  to  employ or utilize all or any part of
    20  health information by any means.
    21    § 1001. Application. The provisions  of  this  article  apply  to  all
    22  disclosures  of  health  information  which are otherwise subject to the
    23  provisions of this chapter or  to  which  any  other  provision  of  law
    24  applies.
    25    § 1002. Duty to maintain the confidentiality of health information. 1.
    26  Health information shall be collected, maintained, used, and stored in a
    27  manner  which ensures the confidentiality and integrity of such informa-
    28  tion.
    29    2. Health information shall not be deemed to be public information and
    30  shall not be disclosed, except as authorized by this article.
    31    3. No provision of this article shall be deemed to limit  the  disclo-
    32  sure  of  health  information  by  the  person  to whom such information
    33  relates.
    34    § 1003. Disclosure.  Health  information  disclosed  without  informed
    35  consent  shall, whenever practicable, be disclosed in a non-identifiable
    36  form.  All disclosures of health information made in a  non-identifiable
    37  form  shall be limited to the minimum amount which the person making the
    38  disclosure reasonably believes is necessary to accomplish the purpose of
    39  the disclosure.
    40    § 1004. Notice upon disclosure. 1. Every disclosure of health informa-
    41  tion made pursuant to this article shall include a statement  of  policy
    42  on  the  disclosure  of health information of the entity disclosing such
    43  information. Such statement of policy shall  include  the  following  or
    44  substantially  similar language in a clear, conspicuous, and distinctive
    45  manner:
    46    "Health information may contain information about a person or  persons
    47  which  is  highly  sensitive and entitled to confidentiality and privacy
    48  protection under federal and state laws. Various provisions of the  laws
    49  of  this  state may prohibit further disclosure of health information in
    50  an identifiable form without the written and signed informed consent  of
    51  the  person  or  persons  to whom such information relates. Unauthorized
    52  disclosure could result in the imposition of criminal and civil  liabil-
    53  ity, including imprisonment, fines, and monetary damages."
    54    2.  Upon  the  premises  of  any  entity  where  health information is
    55  disclosed or made accessible, there  shall  be  conspicuously  posted  a

        S. 2115                            14
 
     1  notice,  in letters at least three inches in height, which shall include
     2  the following or substantially similar language:
     3    "Health  information may contain information about a person or persons
     4  which is highly sensitive and entitled to  confidentiality  and  privacy
     5  under  federal  and state laws. An 'unauthorized disclosure' is  disclo-
     6  sure of such information outside these premises in an identifiable  form
     7  without the written and signed informed consent of the person or persons
     8  to  whom  the information relates.  Unauthorized disclosure could result
     9  in the imposition of criminal and civil liability,  including  imprison-
    10  ment, fines, and monetary damages."
    11    § 1005. Record of disclosures. Every entity possessing health informa-
    12  tion  shall, upon disclosure thereof, establish and maintain a record of
    13  each disclosure. Such record shall include, but shall not be limited to:
    14    1. the name, address, title,  and  institutional  affiliation  of  any
    15  person to whom health information is disclosed;
    16    2. the date and purpose of the disclosure;
    17    3. a brief description of the information disclosed; and
    18    4. the legal authority for the disclosure.
    19    §  1006.  Disclosure without informed consent. No information shall be
    20  disclosed without the written and signed informed consent of the  person
    21  to whom the information relates, unless such disclosure is made:
    22    1. directly to the person to whom the health information relates;
    23    2. to or between public health officials for the purpose of facilitat-
    24  ing  or  accomplishing  a  legitimate public health objective consistent
    25  with their legislative mandate, including:
    26    (a) testing, screening,  reporting,  monitoring,  or  surveillance  of
    27  infectious or contagious diseases or other reportable and non-reportable
    28  conditions or behavioral risk factors;
    29    (b) investigations or interventions; and
    30    (c) public health emergencies as determined by law;
    31    3. in a non-identifiable manner for statistical purposes;
    32    4.  for  the  purpose  of  public health, epidemiological, medical, or
    33  health services research, if:
    34    (a) such information is non-identifiable; or
    35    (b) such disclosures are made pursuant to compelling  need  for  iden-
    36  tifiable information and assurances of protections through the execution
    37  of  a confidentiality agreement, after review by an institutional review
    38  board or committee.  Every  such  agreement  shall  require  any  person
    39  receiving  such information to adhere to protections for the privacy and
    40  security  of  the  information  equivalent  to  or  greater   than   the
    41  protections required by this article;
    42    5. pursuant to any other provision of law; or
    43    6.  to  a  health care provider, to the extent necessary, in a medical
    44  emergency, to protect the health of the person to whom  the  information
    45  relates.
    46    §  1007.  Informed  consent. 1. Except as otherwise authorized by this
    47  article, health information shall  not  be  disclosed  without  informed
    48  consent.
    49    2.  Informed consent may be revoked in writing at any time. Such revo-
    50  cation shall not take effect until the person in receipt of the informed
    51  consent has been provided notice of the revocation thereof.
    52    3. Every informed consent which does not include a date of  expiration
    53  shall  be  deemed  to expire one hundred eighty days after the execution
    54  thereof.

        S. 2115                            15
 
     1    4. No person deemed by law to  be  incompetent  may  provide  informed
     2  consent;  provided,  however,  that  such  person's parent, guardian, or
     3  lawful representative may grant such consent on such person's behalf.
     4    §  1008. Disclosure for criminal or civil litigation. No health infor-
     5  mation shall be disclosed or compelled to be disclosed pursuant  to  any
     6  criminal, civil, or administrative proceeding, except as follows:
     7    1.  A court of competent jurisdiction may order the disclosure of such
     8  information upon a motion showing:
     9    (a) a compelling need for the disclosure for  the  adjudication  of  a
    10  cause of action, or
    11    (b)  that there may exist a clear and imminent danger to the health of
    12  a person as the result of contact with the person to whom such  informa-
    13  tion relates, or
    14    (c)  there exists a clear and imminent danger to the public health and
    15  welfare, or
    16    (d) the disclosure is otherwise authorized pursuant to this article.
    17    2. Upon issuance of an order  pursuant  to  subdivision  one  of  this
    18  section,  the  court  shall  also  order  that  all  health  information
    19  disclosed pursuant to such order be sealed and be made available only to
    20  the  extent  necessary  for  the  conduct  of  the  criminal  or   civil
    21  proceedings, or as otherwise authorized by law.
    22    3.  (a)  Every person about whom health information is sought pursuant
    23  to this section and every person who possesses health  information  that
    24  is  sought  pursuant to this section shall be notified of the motion for
    25  disclosure of such information.  Every such person shall have a right to
    26  be heard by the court prior to the issuance of any order for the disclo-
    27  sure of health information.
    28    (b) An order for the disclosure of health information  may  be  issued
    29  without  such  notice  and  opportunity  to be heard when the motion for
    30  disclosure is submitted by a public health agency or public health offi-
    31  cer and states the need for immediate action to avoid a clear and  immi-
    32  nent  danger  to  the public health. In assessing whether there exists a
    33  clear and immediate danger, the court shall weigh the need  for  disclo-
    34  sure against:
    35    (i) the private interests of the person to whom the health information
    36  relates, and
    37    (ii)  any  legitimate  public  health purpose which may be impaired by
    38  such disclosure. The court shall thereafter issue a written  finding  of
    39  facts statement.
    40    4. Every order directing the disclosure of health information shall:
    41    (a)  limit  such disclosure to that information which is necessary for
    42  the proceeding;
    43    (b) limit such disclosure to only those persons who have  a  need  for
    44  the  health  information  in the conduct of the proceedings and prohibit
    45  disclosure to any other person;
    46    (c) include any other restrictions which the court deems necessary  to
    47  prevent any unauthorized disclosure; and
    48    (d) conform to the provisions of this article.
    49    §  1009. Criminal penalties. Any person who intentionally or knowingly
    50  violates the provisions of this article or otherwise disseminates health
    51  information that relates to any person without  that  person's  informed
    52  and  expressed written consent is guilty of a misdemeanor which shall be
    53  punishable by a fine of not more than five thousand dollars, or  a  term
    54  of  imprisonment not to exceed one year, or by both such fine and impri-
    55  sonment.

        S. 2115                            16
 
     1    § 1010. Civil remedy. 1. The attorney general or any person  aggrieved
     2  by  a  violation  of  this  article  may  bring an action to enjoin such
     3  violation of this article as may have occurred and  obtain  compensatory
     4  damages,  punitive  damages, court costs, and reasonable attorneys' fees
     5  upon prevailing.
     6    2.  A court shall award such additional relief and damages if it finds
     7  that the defendant acted with malice.
     8    3. (a) The provisions of this article may be enforced concurrently  by
     9  a county attorney, town attorney, city corporation counsel, or any other
    10  lawful  designee  of  a  municipality.  The  court shall award costs and
    11  reasonable attorneys' fees to such municipality where  the  chief  legal
    12  officer or his or her designee prevails. All moneys collected thereunder
    13  shall be retained by such municipality.
    14    (b)  For  the  purposes of this section, the term "municipality" means
    15  any county, city, town, or village.
    16    § 1011. Immunity. No person who is the parent or legal guardian  of  a
    17  minor  or incompetent shall be subject to the provisions of this article
    18  as a result of the disclosure of health  information  relating  to  such
    19  minor or incompetent.
    20    §  1012.  Severability. If any section of this article or part thereof
    21  is adjudged by a court of competent jurisdiction  to  be  invalid,  such
    22  judgment  shall  not affect, impair, or invalidate the remainder of this
    23  article or any other section or part thereof.
    24    § 12. Section 215 of the civil practice law and rules  is  amended  by
    25  adding a new subdivision 9 to read as follows:
    26    9.  An action to recover damages for a violation of health information
    27  privacy under section one thousand ten of the public health law.
    28    § 13. The public service law is amended by adding a new article 5-A to
    29  read as follows:
    30                                  ARTICLE 5-A
    31                       TELECOMMUNICATIONS PRIVACY LAW
 
    32  Section 104. Short title.
    33          104-a. Definitions.
    34          104-b. Collection, use, or disclosure of information.
    35          104-c. Subscriber notice of carrier information practices.
    36          104-d. Third parties.
    37          104-e. Subscriber's right to inspect and correct information.
    38          104-f. Monitoring or intercepting upstream communications  chan-
    39                   nels.
    40          104-g. Security measures.
    41          104-h. Exception to written authorization requirement.
    42          104-i. Examination or disclosure of aggregate data.
    43          104-j. Enforcement.
    44          104-k. Separability clause.
    45    §  104.  Short  title. This article shall be known and may be cited as
    46  the "telecommunications privacy law".
    47    § 104-a. Definitions. As used in this article:
    48    1. "Telecommunications" means the transmission between or among points
    49  specified by the user, of information of the  user's  choosing,  without
    50  change  in  the form or content of the information as sent and received,
    51  by means of electromagnetic transmission, with or without benefit of any
    52  closed transmission medium, including all instrumentalities, facilities,
    53  apparatus, and services (including the collection, storage,  forwarding,
    54  switching,  and  delivery  of such information) essential to such trans-
    55  mission.

        S. 2115                            17
 
     1    2. "Telecommunications carrier" means  any  provider  of  telecommuni-
     2  cation services.
     3    3. "Subscriber" means any person who receives any form of telecommuni-
     4  cations  service  and any other authorized user of a person's subscriber
     5  terminal.
     6    4. "Personally identifiable information" means  any  information  that
     7  identifies  any  person  as  a subscriber to, or user of, a telecommuni-
     8  cations carrier, or that otherwise provides information about that indi-
     9  vidual or his or her use of any service provided by a telecommunications
    10  carrier, except listing information published in "white pages"  directo-
    11  ries.
    12    5. "Ordinary course of business" means the provision of:
    13    (a)  the telecommunications service from which personally identifiable
    14  information is derived, or
    15    (b) services necessary to, or used in, the provision of such  telecom-
    16  munications service, including the publishing of directories.
    17    6.  "Upstream  communications channel" means a signaling path provided
    18  by a telecommunications carrier for the transmission of signals  over  a
    19  telecommunications system from subscriber terminals.
    20    7.  "Intercept"  means  to  acquire,  at  any  time from initiation to
    21  completion of a signal transmission over  a  telecommunications  system,
    22  the content of the information contained in that signal.
    23    8.  "Third  party" means a person other than the subscriber or a tele-
    24  communications carrier or any affiliate or agent thereof; but, such term
    25  does not include an interconnecting carrier  or  an  organization  whose
    26  objective  is  the  detection,  elimination, or reduction of toll fraud,
    27  which has a demonstrable and reasonable requirement for personally iden-
    28  tifiable information.
    29    9.  "Generally  available  database"  means  a  single  collection  of
    30  personally  identifiable  information  generally  used by a telecommuni-
    31  cations carrier in the ordinary course of business. The personally iden-
    32  tifiable information contained in such database may include such  infor-
    33  mation  as  subscriber  name and address, amount due, equipment, billing
    34  records, contracts with the  subscriber,  deposit  information,  payment
    35  information, and billing adjustments.
    36    § 104-b. Collection, use, or disclosure of information. A telecommuni-
    37  cations carrier may collect, receive, store, aggregate, use, rent, sell,
    38  release, or disclose personally identifiable information relating to any
    39  subscriber, subscriber household, or user of a subscriber terminal only:
    40    1. to the extent necessary to provide the carrier's telecommunications
    41  services in the normal course of business;
    42    2.  with  the  subscriber's  consent  described in section one hundred
    43  four-c of this article;
    44    3. to detect the unauthorized receipt of telecommunications  services,
    45  including  cooperative  efforts  among carriers to detect, eliminate, or
    46  reduce toll fraud;
    47    4. pursuant to a court order or subpoena;
    48    5. as specifically permitted by the federal communications  commission
    49  or the public service commission; or
    50    6. otherwise pursuant to law.
    51    §  104-c.  Subscriber  notice  of  carrier information practices. 1. A
    52  telecommunications carrier must  notify  a  subscriber  of  the  general
    53  circumstances  under  which  personally  identifiable information may be
    54  collected, used, or disclosed.
    55    2. In the case of a subscriber's contract entered into  on  or  before
    56  the  effective  date of this article, the notice must be provided within

        S. 2115                            18
 
     1  one hundred twenty days of the effective date of this  article.  In  the
     2  case of a subscriber's contract entered into after the effective date of
     3  this  article,  the notice shall be provided at the time the contract is
     4  entered  into.    After  the  initial notice, notice must be provided at
     5  least annually.
     6    3. Notice must be provided in writing, in  plain  English,  and  in  a
     7  clear and conspicuous manner.
     8    4.  The  telecommunications carrier shall not use personally identifi-
     9  able information in a manner other than that  described  in  the  notice
    10  without  further written notice to the subscriber and, where required by
    11  this article, the consent of the subscriber.
    12    5. A subscriber may withdraw his or her  consent  at  any  time.  This
    13  withdrawal  shall  take  effect  not  more  than  thirty  days after the
    14  subscriber notifies the telecommunications carrier that consent has been
    15  withdrawn.
    16    6. A telecommunications carrier shall not refuse to provide any  tele-
    17  communications  service to any person on account of that person's refus-
    18  ing to grant consent to collect, use, or disclose  personally  identifi-
    19  able information.
    20    7. A telecommunications carrier must obtain a subscriber's affirmative
    21  informed  consent  before the carrier may rent, release, or disclose the
    22  subscriber's personally  identifiable  information  to  a  third  party,
    23  except as authorized in section one hundred four-d of this article. Such
    24  affirmative  informed  consent  may be obtained only if the telecommuni-
    25  cations carrier has notified the subscriber in a clear  and  conspicuous
    26  written form of:
    27    (a)  the  kind of personally identifiable information that the carrier
    28  will collect and the intended use of that information;
    29    (b) the nature, frequency, and  purpose  of  any  disclosure  of  that
    30  information; and
    31    (c) the persons to whom disclosure may be made.
    32    § 104-d. Third parties. 1. The use of personally identifiable informa-
    33  tion by those receiving the information from a telecommunications carri-
    34  er  pursuant  to  the  provisions  of  this  article  is  limited to the
    35  expressed purposes for which the disclosure is made.
    36    2. Concurrent with, or prior to, the provision of personally identifi-
    37  able information being provided to others pursuant to the provisions  of
    38  this  article,  if  personally identifiable information is provided on a
    39  continuing basis, written notice shall be provided to the subscriber  at
    40  the  time  of,  or  prior  to,  the  first  release  or transfer of such
    41  personally identifiable material and annually thereafter.
    42    3. A third party which has received personally  identifiable  informa-
    43  tion  pursuant  to  this article shall not retain that information if no
    44  longer needed for the purposes for which it was acquired, nor shall  the
    45  party rent, sell, release, or otherwise disclose that information to any
    46  person, unless the third party does so in accordance with the provisions
    47  of this article.
    48    4.  Every  third  party  receiving personally identifiable information
    49  pursuant to this section  shall  certify  annually  to  the  information
    50  provider  in  writing  that  it is complying with the provisions of this
    51  article.
    52    § 104-e. Subscriber's right to inspect and correct information.  1.  A
    53  telecommunications carrier shall disclose to a subscriber all personally
    54  identifiable  information which the carrier possesses pertaining to that
    55  subscriber, stored on its generally applicable  database,  upon  written

        S. 2115                            19
 
     1  request  of  the subscriber. Such disclosure shall be made within thirty
     2  days from the receipt of the subscriber's request.
     3    2.  A  subscriber  may  request  to  examine a copy of the information
     4  described in this section upon written notice. The information  provided
     5  to  the  subscriber  shall  be  in a legible format, which is capable of
     6  being understood by a reasonable person.    The  subscriber  shall  bear
     7  reasonable copying and mailing costs occasioned by the examination.
     8    3.  A  telecommunications carrier shall correct the information upon a
     9  reasonable showing by the subscriber that personally identifiable infor-
    10  mation contained therein is inaccurate. If the telecommunications carri-
    11  er and subscriber cannot resolve a dispute about  the  accuracy  of  any
    12  information  concerning the subscriber, the subscriber may append to the
    13  carrier's record of information a statement setting forth the nature  of
    14  the  dispute.  Such statement shall be retained in the carrier's records
    15  for as long as the disputed information is retained.  Within  forty-five
    16  days  of receiving this notification from the subscriber, the telecommu-
    17  nications carrier shall transmit a corrected copy of the information, or
    18  the subscriber's appended statement, to any party which  was  given  the
    19  erroneous  information.  Copies of all such correspondence shall be sent
    20  to the subscriber.
    21    § 104-f. Monitoring or intercepting upstream communications  channels.
    22  1.  Except  as  otherwise  provided in this article, information derived
    23  from any signal of an upstream communications channel transmitted from a
    24  subscriber terminal for the purpose of monitoring  individual  household
    25  or  communicating patterns may not be disclosed, except with the written
    26  authorization of the subscriber. Such authorizing document must  explain
    27  in  clear and plain English that information concerning the subscriber's
    28  viewing patterns or practices may be disclosed. The provision  of  tele-
    29  phony  services  shall  be exempt from the requirements of this subdivi-
    30  sion.
    31    2. Except as otherwise provided by law, no person  shall  intercept  a
    32  signal   of  an  upstream  communications  channel  transmitted  from  a
    33  subscriber terminal, except the subscriber and the intended receiver  of
    34  the signal.
    35    §  104-g.  Security measures. A telecommunications carrier shall main-
    36  tain such safeguards as are necessary to ensure the physical  and  elec-
    37  tronic  security  and  confidentiality  of  any  personally identifiable
    38  information concerning subscribers.
    39    § 104-h.  Exception  to  written  authorization  requirement.  Written
    40  authorization  is  not  required  for  a  telecommunications  carrier to
    41  conduct system-wide or individually addressed monitoring for the purpose
    42  of verifying system integrity, controlling return transmission paths, or
    43  for any purposes for which personally identifiable  information  may  be
    44  lawfully acquired pursuant to this article.
    45    §  104-i.  Examination  or disclosure of aggregate data.  This article
    46  does not prohibit the examination of aggregate data by, or  the  disclo-
    47  sure  of  such data to, any third party; provided that the data contains
    48  no personally identifiable information concerning any subscriber, his or
    49  her household, or any user of his or her terminal.
    50    § 104-j. Enforcement. 1. Any person found to have violated this  arti-
    51  cle  shall  be liable to the aggrieved subscriber for all actual damages
    52  sustained by such subscriber as a direct result  of  the  violation  and
    53  such  exemplary  damages  as  the court may determine; provided that any
    54  subscriber who prevails or substantially prevails in any action  brought
    55  under  this  section shall receive not less than five hundred dollars in

        S. 2115                            20
 
     1  damages regardless of the amount of actual damage  proved,  plus  costs,
     2  disbursements, and reasonable attorneys' fees.
     3    2. Whenever there shall be a violation of this article, an application
     4  may  be  made  by  the attorney general in the name of the people of the
     5  state of New York to a court or justice having jurisdiction by a special
     6  proceeding to issue an injunction, and upon notice to the  defendant  of
     7  not  less  than  three  days, to enjoin and restrain the continuation of
     8  such violation; and if it shall appear to the satisfaction of the  court
     9  or  justice  that  the defendant has, in fact, violated this article, an
    10  injunction may be  issued  by  such  court  or  justice,  enjoining  and
    11  restraining  any  further  violation,  without  requiring proof that any
    12  person has, in fact, been  injured  or  damaged  thereby.  In  any  such
    13  proceeding,  the  court  may  make allowances to the attorney general as
    14  provided in paragraph six of subdivision  (a)  of  section  eighty-three
    15  hundred  three  of  the civil practice law and rules and direct restitu-
    16  tion. Whenever the  court  shall  determine  that  a  grossly  negligent
    17  violation  of  this  article  has occurred, the court may impose a civil
    18  penalty of not more than one thousand dollars  for  each  violation.  In
    19  connection  with  any such proposed application, the attorney general is
    20  authorized to take proof and make a determination of the relevant  facts
    21  and  to  issue  subpoenas  in accordance with the civil practice law and
    22  rules.
    23    3. (a) The provisions of this article may be enforced concurrently  by
    24  the  county  attorney,  town  attorney, city corporation counsel, or any
    25  other lawful designee of a municipality.   The court shall  award  costs
    26  and  reasonable  attorneys'  fees  to  such municipality where the chief
    27  legal officer or his or her  designee  prevails.  All  moneys  collected
    28  thereunder shall be retained by such municipality.
    29    (b)  For  the  purposes of this section, the term "municipality" means
    30  any county, city, town, or village.
    31    4. The remedies provided by this article shall be in addition  to  any
    32  other lawful remedy available to a subscriber.
    33    5.  No  action  may  be  brought  under the provisions of this section
    34  unless such action is commenced within two years of the date of the  act
    35  complained of or of the date of discovery of such act.
    36    §  104-k.  Separability  clause. If any clause, paragraph, section, or
    37  part of this article shall be adjudged by any court of competent  juris-
    38  diction  to  be  invalid  or  unconstitutional,  such judgment shall not
    39  affect, impair, or  invalidate  the  remainder  thereof,  but  shall  be
    40  confined  in  its operation to the clause, sentence, paragraph, section,
    41  or part thereof directly involved in the controversy in which such judg-
    42  ment shall have been rendered.
    43    § 14. This act shall take effect January  1,  2004,  except  that  any
    44  rules  and  regulations  necessary for the timely implementation of this
    45  act on its effective date are authorized and directed  to  be  made  and
    46  completed on or before such date.