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A09642 Summary:

BILL NOA09642
 
SAME ASSAME AS S09088
 
SPONSORTorres
 
COSPNSR
 
MLTSPNSR
 
Add Art 42-A §§1150 - 1154, Gen Bus L
 
Requires the registration of data brokers; imposes regulations upon data brokers; establishes a data deletion mechanism for consumers; imposes penalties upon data brokers for violations of the law.
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A09642 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9642
 
                   IN ASSEMBLY
 
                                    January 21, 2026
                                       ___________
 
        Introduced by M. of A. TORRES -- read once and referred to the Committee
          on Consumer Affairs and Protection
 
        AN  ACT  to amend the general business law, in relation to requiring the
          registration of data brokers and establishing a  data  deletion  mech-
          anism for consumers
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new article
     2  42-A to read as follows:
     3                                ARTICLE 42-A
     4                                DATA BROKERS
     5  Section 1150. Definitions.
     6          1151. Registration of data brokers.
     7          1152. Data deletion mechanism.
     8          1153. Audit.
     9          1154. Enforcement.
    10    § 1150. Definitions. The following definitions apply  throughout  this
    11  article unless the context clearly requires otherwise:
    12    1.  "artificial  intelligence  system  or  model"  means an artificial
    13  intelligence that can  generate  derived  synthetic  content,  including
    14  text,  images, video, and audio, that emulates the structure and charac-
    15  teristics of the system's training data.
    16    2. "biometric data" means any personal data generated from  the  meas-
    17  urement  or  specific  technological  processing  of  a natural person's
    18  biological, physical, or physiological characteristics  that  allows  or
    19  confirms  the unique identification of a natural person, including fing-
    20  erprints, voice prints, iris or retina scans, facial scans or templates,
    21  and gait. "Biometric data" does not include a digital or physical photo-
    22  graph, an audio or video recording, or any data generated from a digital
    23  or physical photograph, or an audio or video recording, unless such data
    24  is generated to identify a specific individual.
    25    3. "consumer" means a natural person who is a New York resident acting
    26  only in an individual or  household  context.  It  does  not  include  a
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14455-01-6

        A. 9642                             2
 
     1  natural  person  known  to  be  acting  in  a professional or employment
     2  context.
     3    4.  "dark  patterns"  means  user  interfaces  that  subvert or impair
     4  consumers' autonomy, decision making, or  choice  when  asserting  their
     5  privacy rights or consenting.
     6    5.  "data  broker"  means a person or business that knowingly collects
     7  and sells to third parties the personal information of a  consumer  with
     8  whom the person or business does not have a direct relationship.
     9    6. "foreign actor" means either:
    10    (a) the government of a foreign adversary country.
    11    (b)  a  partnership,  association, corporation, organization, or other
    12  combination of persons organized under the laws of or having its princi-
    13  pal place of business in a foreign adversary country.
    14    7. "foreign adversary  country"  has  the  same  meaning  as  "covered
    15  nation"  as  defined  in  Section  4872 of Title 10 of the United States
    16  Code.
    17    8. "minor" means a natural person under the age of eighteen.
    18    9. "personal information" means any  data  that  identifies  or  could
    19  reasonably  be  linked,  directly or indirectly, with a specific natural
    20  person, or household. "Personal information" does not include  deidenti-
    21  fied  data,  information  that  is lawfully made publicly available from
    22  federal, state or  local  government  records,  or  information  that  a
    23  controller  has a reasonable basis to believe is lawfully made available
    24  to the general public by the consumer or from widely distributed media.
    25    10. "precise geolocation data" means information derived from technol-
    26  ogy, including, but not limited  to,  global  positioning  system  level
    27  latitude  and  longitude  coordinates or other mechanisms, that directly
    28  identifies the specific location of an  individual  with  precision  and
    29  accuracy  within  a  radius  of  one  thousand seven hundred fifty feet,
    30  except as prescribed by regulations. Precise geolocation data  does  not
    31  include  the  content  of  communications  or  any  data generated by or
    32  connected to advance utility metering infrastructure systems  or  equip-
    33  ment for use by a utility.
    34    11. "protected health information" has the same meaning as in Title 45
    35  C.F.R., established pursuant to the federal Health Insurance Portability
    36  and Accountability Act of 1996.
    37    § 1151. Registration of data brokers. 1. Each data broker shall:
    38    (a)  On  or  before  January  thirty-first following a year in which a
    39  person meets the definition of data broker in this article:
    40    (i) Register with the attorney general;
    41    (ii) Pay a registration fee of one hundred  dollars  or  as  otherwise
    42  determined  by the attorney general pursuant to the regulatory authority
    43  granted to the attorney general under this article, not  to  exceed  the
    44  reasonable  cost of establishing and maintaining the database and infor-
    45  mational website described in this section; and
    46    (iii) Provide the following information to the attorney general:
    47    (A) the name and primary physical, email, and internet website address
    48  of the data broker.
    49    (B) the name and business address of an officer or registered agent of
    50  the data broker authorized to accept legal process on behalf of the data
    51  broker.
    52    (C) the number of requests received and the number  of  such  requests
    53  complied  with,  complied  with  in part, or denied under section eleven
    54  hundred fifty-two of this article.

        A. 9642                             3
 
     1    (D) the median and the mean number  of  days  within  which  the  data
     2  broker  responded  to requests under section eleven hundred fifty-two of
     3  this article.
     4    (E) whether the data broker collected personal information of minors.
     5    (F) whether the data broker collects consumers' names, dates of birth,
     6  ZIP codes, email addresses, or phone numbers.
     7    (G)  whether  the  data  broker  collects  consumers' account login or
     8  account number in combination with any required  security  code,  access
     9  code,  or password that would permit access to a consumer's account with
    10  a third party.
    11    (H) whether the  data  broker  collects  consumers'  drivers'  license
    12  number,  state  identification  card  number, tax identification number,
    13  social security number, passport number, military identification number,
    14  or other unique identification number issued on  a  government  document
    15  commonly used to verify the identity of a specific individual.
    16    (I)  whether  the  data  broker collects consumers' mobile advertising
    17  identification numbers, connected television identification numbers,  or
    18  vehicle identification numbers (VIN).
    19    (J)  whether  the  data  broker  collects consumers' citizenship data,
    20  including immigration status.
    21    (K) whether the  data  broker  collects  consumers'  union  membership
    22  status.
    23    (L)  whether  the  data  broker collects consumers' sexual orientation
    24  status.
    25    (M) whether the data broker collects consumers'  gender  identity  and
    26  gender expression data.
    27    (N) whether the data broker collects consumers' biometric data.
    28    (O) whether the data broker collects consumers' precise geolocation.
    29    (P)  whether  the  data broker collects consumers' reproductive health
    30  care data.
    31    (Q) whether the  data  broker  collects  consumers'  protected  health
    32  information.
    33    (R)  whether  the  data broker has shared or sold consumers' data to a
    34  foreign actor in the past year.
    35    (S) whether the data broker has shared or sold consumers' data to  the
    36  federal government in the past year.
    37    (T)  whether  the  data  broker  has shared or sold consumers' data to
    38  other state governments in the past year.
    39    (U) whether the data broker has shared or sold consumers' data to  law
    40  enforcement  in the past year, unless that data was shared pursuant to a
    41  subpoena or court order.
    42    (V) whether the data broker has shared or sold consumers'  data  to  a
    43  developer  of  an  artificial  intelligence  system or model in the past
    44  year.
    45    (W) up to three, but no fewer than one, of the most  common  types  of
    46  personal information that the data broker collects.
    47    (X)  beginning  January  first,  two thousand thirty, whether the data
    48  broker has undergone an audit under this article, and, if so,  the  most
    49  recent  year  that the data broker has submitted a report resulting from
    50  the audit and any related materials to the attorney general.
    51    (Y) a link to a page on the data broker's internet website that:
    52    (I) details how consumers may exercise their privacy rights  by  doing
    53  all of the following:
    54    a. Deleting personal information.
    55    b. Correcting inaccurate personal information.

        A. 9642                             4
 
     1    c.  Learning  what  personal information is being collected and how to
     2  access that personal information.
     3    d.  Learning  what personal information is being sold or shared and to
     4  whom.
     5    e. Learning how to opt out of the sale or sharing of personal informa-
     6  tion.
     7    f. Learning how to limit the use and disclosure of sensitive  personal
     8  information.
     9    (II) does not make use of any dark patterns.
    10    (Z)  whether  and to what extent the data broker or any of its subsid-
    11  iaries is regulated by any of the following:
    12    (I) the federal Fair Credit Reporting Act  (15  U.S.C.  Sec.  1681  et
    13  seq.).
    14    (II)  the Gramm-Leach-Bliley Act (Public Law 106-102) and implementing
    15  regulations.
    16    (III) any other law, rule, or regulation governing data brokers or any
    17  of its subsidiaries.
    18    (AA) any additional information or explanation the data broker chooses
    19  to provide concerning its data collection practices.
    20    (b) be subject to any rules and  regulations  promulgated  under  this
    21  article.
    22    2.  The  attorney  general shall create a webpage on the state website
    23  which includes all information regarding  all  data  brokers  registered
    24  within the state and the deletion mechanism created under section eleven
    25  hundred fifty-two of this article.
    26    § 1152. Data deletion mechanism. 1. The attorney general shall develop
    27  a  data deletion mechanism within one year of the effective date of this
    28  section. Such data deletion mechanism shall:
    29    (a) implement and maintain reasonable security  procedures  and  prac-
    30  tices,  including,  but  not  limited  to, administrative, physical, and
    31  technical safeguards appropriate to the nature of  the  information  and
    32  the  purposes  for  which  the  personal information will be used and to
    33  protect consumers' personal information from unauthorized  use,  disclo-
    34  sure, access, destruction, or modification.
    35    (b) allow a consumer, through a single verifiable consumer request, to
    36  request  that  every data broker that maintains any personal information
    37  delete any personal information related to that  consumer  held  by  the
    38  data broker or associated service provider, contractor, or subsidiary.
    39    (c) allow a consumer to selectively exclude specific data brokers from
    40  a request made under paragraph (b) of this subdivision.
    41    (d)  allow  a  consumer  to make a request to alter a previous request
    42  made under this section after at least forty-five days have passed since
    43  the consumer last made a request under this section.
    44    (e) allow a consumer to request the deletion of all personal  informa-
    45  tion related to that consumer through a single deletion request.
    46    (f)  permit  a  consumer to securely submit information in one or more
    47  privacy-protecting ways determined by the attorney general to aid in the
    48  deletion request.
    49    (g) allow data brokers registered with the attorney general to  deter-
    50  mine  whether  an individual has submitted a verifiable consumer request
    51  to delete the personal information related to that  consumer  and  shall
    52  not allow the disclosure of any additional personal information when the
    53  data  broker accesses the accessible deletion mechanism unless otherwise
    54  specified in this article.
    55    (h) allow a consumer to make a request under  this  section  using  an
    56  internet service operated by the attorney general.

        A. 9642                             5
 
     1    (i) not charge a consumer to make a request under this section.
     2    (j)  allow  a  consumer  to  make  a request under this section in any
     3  language spoken by any consumer for whom personal information  has  been
     4  collected by data brokers.
     5    (k) be readily accessible and usable by consumers with disabilities.
     6    (l)  support  the  ability of a consumer's authorized agents to aid in
     7  the deletion request.
     8    (m) allow the consumer, or  their  authorized  agent,  to  verify  the
     9  status of the consumer's deletion request.
    10    (n) provide a description of:
    11    (i) the deletion permitted by this section;
    12    (ii)  the  process  for submitting a deletion request pursuant to this
    13  section; and
    14    (iii) examples of the types of information that may be deleted.
    15    2. Six months after the creation of the data deletion mechanism,  each
    16  data broker shall, at least once every forty-five days:
    17    (a)  process  all  deletion requests made pursuant to this section and
    18  delete all personal information related  to  the  consumers  making  the
    19  requests  consistent with the requirements of this section within forty-
    20  five days of receiving such requests and direct all  service  providers,
    21  contractors,  and subsidiaries associated with the data broker to delete
    22  all personal information in their possession related  to  the  consumers
    23  making such request.
    24    (b) where a data broker denies a consumer request to delete under this
    25  section  because  the request cannot be verified, process the request as
    26  an opt-out of the sale or sharing of the consumer's personal information
    27  within forty-five days of receiving such request and direct all  service
    28  providers, contractors, and subsidiaries associated with the data broker
    29  to  process  the  request  as  an  opt-out of the sale or sharing of the
    30  consumer's personal information.
    31    3. (a) Notwithstanding any other provision of  this  section,  a  data
    32  broker shall not be required to delete a consumer's personal information
    33  if such personal information is required to:
    34    (i)  complete  the  transaction for which the personal information was
    35  collected, fulfill the terms of a written  warranty  or  product  recall
    36  conducted  in  accordance  with  federal  law, provide a good or service
    37  requested by the consumer, or reasonably  anticipated  by  the  consumer
    38  within  the  context  of a businesses ongoing business relationship with
    39  the consumer, or otherwise perform a contract between the  business  and
    40  the consumer.
    41    (ii)  help  to  ensure security and integrity to the extent the use of
    42  the consumer's personal information is reasonably necessary and  propor-
    43  tionate for those purposes.
    44    (iii)  debug  to  identify  and  repair  errors  that  impair existing
    45  intended functionality.
    46    (iv) exercise free speech, ensure the right  of  another  consumer  to
    47  exercise that consumer's right of free speech, or exercise another right
    48  provided for by law.
    49    (v)  engage  in  public  or  peer-reviewed  scientific, historical, or
    50  statistical research that conforms or adheres to  all  other  applicable
    51  ethics and privacy laws, when the businesses deletion of the information
    52  is  likely  to  render  impossible  or  seriously  impair the ability to
    53  complete such research, if the consumer has provided informed consent.
    54    (vi) to enable solely internal uses that are reasonably  aligned  with
    55  the  expectations  of  the consumer based on the consumer's relationship

        A. 9642                             6
 
     1  with the business and compatible with the context in which the  consumer
     2  provided the information.
     3    (vii) comply with a legal obligation.
     4    (b)  Personal  information  not required to be deleted under paragraph
     5  (a) of this subdivision shall only be used for purposes directly related
     6  to such exceptions and shall not be used  or  disclosed  for  any  other
     7  purpose.
     8    4. Where a consumer has submitted a deletion request and a data broker
     9  has  deleted  the  consumer's  data  pursuant  to this section, the data
    10  broker shall:
    11    (a) delete all personal information of  the  consumer  at  least  once
    12  every  forty-five  days  pursuant  to  this  section unless the consumer
    13  requests otherwise or the deletion is not required pursuant to  subdivi-
    14  sion three of this section; and
    15    (b)  not sell or share new personal information of the consumer unless
    16  the consumer requests  otherwise  unless  such  selling  or  sharing  is
    17  permitted under another section of law.
    18    5. The attorney general may charge an access fee to a data broker when
    19  the  data  broker  accesses  the  data  deletion mechanism that does not
    20  exceed the reasonable costs of providing that access.
    21    § 1153. Audit. Three years after the effective date  of  this  section
    22  and  every  three  years  thereafter,  each data broker shall undergo an
    23  audit by an independent third party to determine  compliance  with  this
    24  article.    Each  data  broker  shall submit a report resulting from the
    25  audit written by such independent third party in a  form  determined  by
    26  the  attorney  general  and any other materials required by the attorney
    27  general to the attorney general within five business days of  a  written
    28  request  by  the  attorney  general.  Data  brokers  shall maintain such
    29  reports and any required materials for six years.
    30    § 1154. Enforcement. 1. A data broker that  fails  to  register  under
    31  this article shall be subject to:
    32    (a)  a  civil  penalty  of  two  hundred dollars for each day the data
    33  broker fails to register as required by this article;
    34    (b) a civil penalty equal to the amount  of  registration  fees  which
    35  would have been paid if the data broker had registered; and
    36    (c)  a civil penalty equal to the costs incurred by the state to bring
    37  such civil action.
    38    2. A data broker that violates any provision of this  article  or  any
    39  rules  and  regulations promulgated thereunder, besides subparagraph (i)
    40  of paragraph (a) of subdivision one of section eleven hundred  fifty-one
    41  of this article, shall be subject to:
    42    (a)  a  civil  penalty of two hundred dollars for each such violation;
    43  and
    44    (b) a civil penalty equal to the costs incurred by the state to  bring
    45  such civil action.
    46    § 2. This act shall take effect immediately.
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