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A00048 Summary:

BILL NOA00048B
 
SAME ASSAME AS S02078-A
 
SPONSORRosenthal L
 
COSPNSRDinowitz, Glick, Simon, Epstein, McMahon, Colton, Weprin, Taylor, Raga
 
MLTSPNSR
 
Add 50-b, Mult Dwell L; add 130-a, Mult Res L
 
Relates to limitations on the use of smart access systems; restricts information that may be gathered on lessees, tenants, owners or guests.
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A00048 Actions:

BILL NOA00048B
 
01/04/2023referred to housing
05/12/2023amend (t) and recommit to housing
05/12/2023print number 48a
05/16/2023reported referred to codes
05/18/2023amend and recommit to codes
05/18/2023print number 48b
05/23/2023reported referred to rules
06/06/2023reported
06/06/2023rules report cal.567
06/06/2023ordered to third reading rules cal.567
01/03/2024ordered to third reading cal.3
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A00048 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A48B
 
SPONSOR: Rosenthal L
  TITLE OF BILL: An act to amend the multiple dwelling law and the multiple residence law, in relation to the use of smart access systems and the information that may be gathered from such systems   PURPOSE: This legislation relates to limitations on smart access systems for entry.   SUMMARY OF SPECIFIC PROVISIONS: Section one amends multiple dwelling law by adding a new section 50-b. Section two amends the multiple residence law by adding a new section 130-a. Section three provides for severability. Section four sets forth the effective date.   JUSTIFICATION: A loft building in my district recently installed a keyless entry system, the Latch System. The building owners refused to provide resi- dents with traditional, mechanical keys. The building's only elevator could not be accessed by elderly, disabled or the observant tenants because they could not use the app to enter the building. The Latch and similar systems raise serious privacy concerns as users are required to share an abundance of information about themselves, their guests and their minor children with the system's app. Information such as resi- dent or guest name, their relationships to each other, email addresses, phone numbers and the number of times they enter and exit the building, their GPS location and their photographs is all also shared with the app, the landlord and third parties not specified by Latch. All the information gathered and stored by Latch can be used by the company and third parties in any way that they see fit, and by landlords who have no right to access tenants' private and confidential informa- tion. Tenants should not lose their privacy rights when they sign a lease. This legislation will help protect the privacy of building residents and their guests by prohibiting landlords from requiring tenants to use keyless entry systems as a condition of their tenancy, would prohibit the sharing and storing of certain information with certain parties and would prohibit landlords from using any information gathered via the system as the basis of any proceeding against a tenant.   LEGISLATIVE HISTORY: 2021-22: A.706-C - Referred to Housing; S.6463-A- Referred to Housing 2019-20: A.6788-B - Reported to Codes; S.5125-B-- Referred to Judiciary   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: This act shall take effect immediately.
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A00048 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          48--B
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2023
                                       ___________
 
        Introduced  by  M.  of A. L. ROSENTHAL, DINOWITZ, GLICK, SIMON, EPSTEIN,
          McMAHON, COLTON, WEPRIN -- read once and referred to the Committee  on
          Housing  --  committee  discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee -- reported and referred  to
          the  Committee on Codes -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the multiple dwelling law  and  the  multiple  residence
          law,  in  relation to the use of smart access systems and the informa-
          tion that may be gathered from such systems
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  multiple  dwelling  law  is  amended by adding a new
     2  section 50-b to read as follows:
     3    § 50-b. Electronic or computerized entry systems. 1.  Definitions. For
     4  the purposes of this section, the following terms shall have the follow-
     5  ing meanings:
     6    a. "Account information" means information that is  used  to  grant  a
     7  user  entry  or  access to any online tools that are used to manage user
     8  accounts related to a smart access system.
     9    b. "Authentication data" means data  generated  or  collected  at  the
    10  point  of  authentication  in connection with granting a user entry to a
    11  class A multiple dwelling, dwelling unit of  such  building,  or  common
    12  area  of  such  building  through  a smart access system, except that it
    13  shall not include data generated through or  collected  by  a  video  or
    14  camera system that is used to monitor entrances but not to grant entry.
    15    c.  "Biometric  identifier information" means a physiological, biolog-
    16  ical or behavioral characteristic that is used to identify, or assist in
    17  identifying, an individual, including, but not limited to: (i) a  retina
    18  or  iris  scan,  (ii)  a fingerprint, (iii) a voiceprint, (iv) a scan or
    19  record of a palm, hand, or face geometry, (v) gait or movement patterns,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00692-06-3

        A. 48--B                            2
 
     1  or (vi) any other similar identifying characteristic that  can  be  used
     2  alone  or  in combination with each other, or with other information, to
     3  establish individual identity.
     4    d.  "Critical  security  vulnerability" means a security vulnerability
     5  that has a significant risk of resulting in an unauthorized access to an
     6  area secured by a smart access system.
     7    e. "Reference data" means  information  against  which  authentication
     8  data is verified at the point of authentication by a smart access system
     9  in  order to grant a user entry to a class A multiple dwelling, dwelling
    10  unit of such building, or common area of such building.
    11    f. "Security breach" means any incident that results  in  unauthorized
    12  access of data, applications, services, networks or devices by bypassing
    13  underlying security mechanisms. A "security breach" occurs when an indi-
    14  vidual  or  an application illegitimately enters a private, confidential
    15  or unauthorized logical information technology perimeter.
    16    g. "Smart access system" means any  system  that  uses  electronic  or
    17  computerized technology, a radio frequency identification card, a mobile
    18  phone  application,  biometric  identifier  information,  or  any  other
    19  digital technology in order to grant access to a class A multiple dwell-
    20  ing, common areas in such multiple dwelling, or to an individual  dwell-
    21  ing unit in such multiple dwelling.
    22    h.  "Third party" means an entity that installs, operates or otherwise
    23  directly supports a smart access system, and has ongoing access to  user
    24  data, excluding any entity that solely hosts such data.
    25    i.  "User"  means  a  tenant  or lawful occupant of a class A multiple
    26  dwelling, and any person a tenant or lawful occupant has  requested,  in
    27  writing  or  through  a  mobile  application,  be granted access to such
    28  tenant or lawful occupant's dwelling  unit  and  such  building's  smart
    29  access system.
    30    2.  Entry.  a.  Where  an  owner  installs or plans to install a smart
    31  access system on any entrance from the street, passageway, court,  yard,
    32  cellar, or other common area of a class A multiple dwelling, such system
    33  shall  not rely solely on a web-based application to facilitate entrance
    34  but shall also include a key fob, key card, digital key or passcode  for
    35  tenant use.
    36    b.  Owners may provide various methods of entry into individual apart-
    37  ments including a mechanical key or a smart access system of a key  fob,
    38  key card or digital key, provided, however that such smart access system
    39  shall not rely solely on a web-based application.
    40    c.  Notwithstanding paragraph a or b of this subdivision, owners shall
    41  provide a non-electronic means of entry where requested by the tenant or
    42  lawful occupant due to a religious preference.
    43    d. All lawful tenants and lawful occupants shall be  provided  with  a
    44  key,  key  fob,  digital  key or key card at no cost to such tenants and
    45  lawful occupants. The term "lawful  occupants"  shall  include  children
    46  under  the  age  of eighteen who shall be issued a key, key fob, digital
    47  key or key card if a parent or guardian requests such child be  provided
    48  with one. Tenants and lawful occupants may also receive up to four addi-
    49  tional  keys,  key  fobs,  digital  keys  or key cards at no cost to the
    50  tenant or lawful occupant for employees or  guests.  The  term  "guests"
    51  shall  include family members and friends who can reasonably be expected
    52  to visit on a regular basis or visit as needed to care for  the  tenant,
    53  lawful  occupant, or the dwelling unit if the tenant  or lawful occupant
    54  is away. Employees, including contractors,  professional  caregivers  or
    55  other  services  providers,  may have an expiration date placed on their
    56  key, key card, digital key or key fob, which may be  extended  upon  the

        A. 48--B                            3
 
     1  tenant's  or lawful occupant's request.  Tenants or lawful occupants may
     2  request a new or replacement key, key fob, digital key or  key  card  at
     3  any  time  throughout the course of the tenancy or occupancy.  The owner
     4  or their agent shall provide the first replacement key, key fob, digital
     5  key  or  key  card  to the tenant or lawful occupant free of charge. The
     6  cost of second and subsequent replacement cards shall not be  more  than
     7  what  the owner paid for the replacement up to and not exceeding twenty-
     8  five dollars.
     9    e. The owner shall not set limits on the number  of  keys,  key  fobs,
    10  digital keys or key cards a tenant or lawful occupant may request.
    11    f.  Any door that has a smart access system shall have backup power or
    12  an alternative means of entry to ensure that the entry system  continues
    13  to  operate  during  a  power  outage.  An  owner, or their agent, shall
    14  routinely inspect the backup power and shall replace according to system
    15  specifications.  Owners or their agents shall provide tenants and lawful
    16  occupants with information about whom to contact in the event  that  the
    17  tenant,  lawful  occupant or the tenant's or lawful occupant's children,
    18  guests or employees become locked out.
    19    3. Notice. Owners or their agents shall provide notice to a tenant  or
    20  lawful  occupant  at  the  time  the tenant or lawful occupant signs the
    21  lease, or when the smart access system is installed, of  the  provisions
    22  of subdivision two of this section.
    23    4.  Data  collection.  a. If a smart access system is utilized to gain
    24  entrance to a class A multiple dwelling, the only reference, authentica-
    25  tion, and account information gathered by any smart access system  shall
    26  be  limited  to  account information necessary to enable the use of such
    27  smart access system, or  reference  data,  including  the  user's  name,
    28  dwelling  unit  number and other doors or common areas to which the user
    29  has access, the preferred method of contact for such  user,  information
    30  used  to grant a user entry or to access any online tools used to manage
    31  user accounts related to  such  building,  lease  information  including
    32  move-in  and,  if available move-out dates, and authentication data such
    33  as time and method of access for security purposes and a  photograph  of
    34  access  events for security purposes. For smart access systems that rely
    35  on the  collection  of  biometric  data  and  which  have  already  been
    36  installed  at  the  time this section shall have become a law, biometric
    37  identifier information may be collected  pursuant  to  this  section  in
    38  order to register a user for a smart access system.  No new smart access
    39  systems that rely on the collection of biometric data shall be installed
    40  in  class  A multiple dwellings for three years after the effective date
    41  of this section.
    42    (i) The owner of the multiple dwelling may collect  only  the  minimum
    43  data  required  by  the  technology  used  in the smart access system to
    44  effectuate such entrance and protect the privacy and  security  of  such
    45  users.
    46    (ii)  The  owner or agent of the owner shall not request or retain, in
    47  any form, the social security number of any tenant or lawful occupant as
    48  a condition of use of the smart access system.
    49    (iii) The owner, agent of the owner, or the vendor of a  smart  access
    50  system  on behalf of the owner may record each time a key fob, key card,
    51  digital key or passcode is used to enter the  building,  but  shall  not
    52  record any departures.
    53    (iv) A copy of such data may be retained for reference at the point of
    54  authentication  by the smart access system. Such reference data shall be
    55  retained only for tenants  or lawful occupants or  those  authorized  by
    56  the tenant, lawful occupant, or owner of the multiple dwelling.

        A. 48--B                            4
 
     1    (v)  The  owner  of  the  multiple  dwelling  or any third party shall
     2  destroy or anonymize authentication data collected from or generated  by
     3  such  smart  access  system within a reasonable time, but not later than
     4  ninety days after the date collected.
     5    (vi) Reference data for a user shall be destroyed or anonymized within
     6  ninety  days  of  (1) the tenant or lawful occupant permanently vacating
     7  the dwelling, or (2) a request by the tenant or lawful occupant to with-
     8  draw authorization for those previously  authorized  by  the  tenant  or
     9  lawful occupant.
    10    b. (i) An entity shall not capture biometric identifier information of
    11  an individual to gain entrance to a class A multiple dwelling unless the
    12  person  is  a  tenant  or  lawful occupant or a person authorized by the
    13  tenant or lawful occupant, and informs the individual  before  capturing
    14  the biometric identifier information; and receives their express consent
    15  to capture the biometric identifier information.
    16    (ii)  Any entity that possesses biometric identifier information of an
    17  individual that is captured to gain  entrance  to  a  class  A  multiple
    18  dwelling:
    19    (1)  Shall not sell, lease or otherwise disclose the biometric identi-
    20  fier information to another person unless pursuant  to  any  law,  grand
    21  jury  subpoena  or  court ordered warrant, subpoena, or other authorized
    22  court ordered process.
    23    (2) Shall store, transmit and protect from  disclosure  the  biometric
    24  identifier information using reasonable care and in a manner that is the
    25  same  as  or more protective than the manner in which the person stores,
    26  transmits and protects confidential information  the  person  possesses;
    27  and
    28    (3)  Shall  destroy  the  biometric  identifier  information  within a
    29  reasonable time, but not later than forty-eight  hours  after  the  date
    30  collected,  except for reference data.  If any prohibited information is
    31  collected, such as the likeness of a minor or a non-tenant, the informa-
    32  tion shall be destroyed immediately.
    33    c. The owner of the multiple dwelling, or the  managing  agent,  shall
    34  develop  and  provide to tenants and lawful occupants written procedures
    35  which describe the process used to add persons authorized by the  tenant
    36  or  lawful  occupant to the smart access system on a temporary or perma-
    37  nent basis, such as visitors, children, their employees, and  caregivers
    38  to such building.
    39    (i) The procedures shall clearly establish the owner's retention sche-
    40  dule  and  guidelines for permanently destroying or anonymizing the data
    41  collected.
    42    (ii) The procedures shall not limit time or place of entrance by  such
    43  people  authorized  by the tenant or lawful occupant except as requested
    44  by the tenant or lawful occupant.
    45    5. Prohibitions. a. No form of location tracking,  including  but  not
    46  limited  to  satellite location based services, shall be included in any
    47  equipment, key, or software provided to users as part of a smart  access
    48  system.
    49    b. It shall be prohibited to collect through a smart access system the
    50  likeness  of a minor occupant, information on the relationship status of
    51  tenants or lawful occupants and their guests, or to use a  smart  access
    52  system  to  collect or track information about the frequency and time of
    53  use of such system by a tenant or lawful occupant and  their  guests  to
    54  harass or evict a tenant or lawful occupant or for any other purpose not
    55  expressly related to the operation of the smart access system.

        A. 48--B                            5

     1    c.  Information  that is acquired via the use of a smart access system
     2  shall not be used for any purposes other than  granting  access  to  and
     3  monitoring  building  entrances  and  shall  not be used as the basis or
     4  support for an action to evict a lessee, tenant, or lawful occupant,  or
     5  an administrative hearing seeking a change in regulatory coverage for an
     6  individual  or unit.  However, a tenant or lawful occupant may authorize
     7  their information to be used by a third party, but such a request  shall
     8  clearly state who will have access to such information, for what purpose
     9  it  will  be  used,  and  the  privacy policies which will protect their
    10  information. Under no circumstances  shall  a  lease  or  a  renewal  be
    11  contingent  upon  authorizing  such  use.  Smart  access systems may use
    12  third-party services to the extent  required  to  maintain  and  operate
    13  system  infrastructure,  including  cloud-based hosting and storage. The
    14  provider or providers of third-party infrastructure services shall  meet
    15  or exceed the privacy protections set forth in this section and shall be
    16  subject  to  the same liability for breach of any of the requirements of
    17  this section.
    18    d. Information and data collected shall not be made available  to  any
    19  third  party,  unless  authorized  as  described  in paragraph c of this
    20  subdivision, including but not limited to law enforcement, except upon a
    21  grand jury subpoena or a  court  ordered  warrant,  subpoena,  or  other
    22  authorized court ordered process.
    23    6.  Storage of information. Any information or data collected shall be
    24  stored in a secure manner to prevent unauthorized access by both employ-
    25  ees and contractors and those  unaffiliated  with  the  owner  or  their
    26  agents, except as otherwise provided in this section. Future or continu-
    27  ing  tenancy  shall  not  be conditioned upon consenting to the use of a
    28  smart access system.
    29    7. Software issues. Whenever a company that produces, makes  available
    30  or installs smart access systems discovers a security breach or critical
    31  security  vulnerability  in  their  software,  such company shall notify
    32  customers of such vulnerability within a reasonable  time  of  discovery
    33  but no later than twenty-four hours after discovery and shall make soft-
    34  ware  updates available and take any other action as may be necessary to
    35  repair the vulnerability within a reasonable time, but not  longer  than
    36  thirty  days  after  discovery.   Smart access systems and vendors shall
    37  implement and maintain  reasonable  security  procedures  and  practices
    38  appropriate  to  the  nature  of the information collected. In the event
    39  that a security breach or critical security vulnerability that  pertains
    40  to  the  embedded  software  or  firmware on the smart access systems is
    41  discovered, smart access systems and their vendors shall:
    42    a. be able to create updates to the firmware to  correct  the  vulner-
    43  abilities;
    44    b.  contractually  commit to customers that the smart access system or
    45  vendor will create updates to the embedded software or firmware to reme-
    46  dy the vulnerabilities; and
    47    c. make such security-related software or firmware  updates  available
    48  for  free  to  customers  for  the  duration of the contract between the
    49  building and smart access systems.
    50    8. Waiver of rights; void. Any agreement by a lessee or  tenant  of  a
    51  dwelling  waiving or modifying their rights as set forth in this section
    52  shall be void as contrary to public policy.
    53    9. Penalties. a. A person who violates this section shall  be  subject
    54  to  a  civil  penalty  of  not  more than five thousand dollars for each
    55  violation. The attorney general may bring an action to recover the civil
    56  penalty.

        A. 48--B                            6
 
     1    b. Where an owner or their agent uses a smart access system to  harass
     2  or otherwise deprive a tenant or lawful occupant of any rights available
     3  under  law,  such  owner or agent shall be subject to a civil penalty of
     4  ten thousand dollars for each violation.
     5    c.  For  purposes  of  this subdivision, each day the violation occurs
     6  shall be considered a separate violation.
     7    10. Rent regulated dwellings. Installation of a  smart  access  system
     8  pursuant  to  this section in a dwelling subject to the emergency tenant
     9  protection act of nineteen hundred seventy-four, the  emergency  housing
    10  rent  control  law, the local emergency housing rent control act, or the
    11  rent stabilization law of nineteen hundred sixty-nine shall constitute a
    12  modification of services requiring the owner of such dwelling  or  their
    13  agent  to  apply  to  the  division of housing and community renewal for
    14  approval before performing such installation.  Such  installation  shall
    15  not qualify as a basis for rent reduction.
    16    11.  Exemptions.  a.  Nothing herein shall apply to multiple dwellings
    17  owned or managed by an entity subject to 42 U.S.C. § 1437  et  seq.,  or
    18  any of its subsidiaries.
    19    b.  Nothing  in this section shall limit the authority of the division
    20  of housing and  community  renewal  to  impose  additional  requirements
    21  regarding smart access systems installed in multiple dwellings for which
    22  the  division  is  required to approve substitutions or modifications of
    23  services.
    24    § 2. The multiple residence law is amended by  adding  a  new  section
    25  130-a to read as follows:
    26    § 130-a. Electronic or computerized entry systems. 1. Definitions. For
    27  the purposes of this section, the following terms shall have the follow-
    28  ing meanings:
    29    (a)  "Account  information"  means information that is used to grant a
    30  user entry or access to any online tools that are used  to  manage  user
    31  accounts related to a smart access system.
    32    (b)  "Authentication  data"  means  data generated or collected at the
    33  point of authentication in connection with granting a user  entry  to  a
    34  multiple  dwelling,  dwelling  unit  of such building, or common area of
    35  such building through a smart access system, except that  it  shall  not
    36  include  data generated through or collected by a video or camera system
    37  that is used to monitor entrances but not to grant entry.
    38    (c) "Biometric identifier information" means a physiological,  biolog-
    39  ical or behavioral characteristic that is used to identify, or assist in
    40  identifying,  an individual, including, but not limited to: (i) a retina
    41  or iris scan, (ii) a fingerprint, (iii) a voiceprint,  (iv)  a  scan  or
    42  record of a palm, hand, or face geometry, (v) gait or movement patterns,
    43  or  (vi)  any  other similar identifying characteristic that can be used
    44  alone or in combination with each other, or with other  information,  to
    45  establish individual identity.
    46    (d)  "Critical  security vulnerability" means a security vulnerability
    47  that has a significant risk of resulting in an unauthorized access to an
    48  area secured by a smart access system.
    49    (e) "Reference data" means information  against  which  authentication
    50  data  is  verified at a point of authentication by a smart access system
    51  in order to grant a user entry to a multiple dwelling, dwelling unit  of
    52  such building, or common area of such building.
    53    (f)  "Security breach" means any incident that results in unauthorized
    54  access of data, applications, services, networks or devices by bypassing
    55  underlying security mechanisms. A "security breach" occurs when an indi-

        A. 48--B                            7
 
     1  vidual or an application illegitimately enters a  private,  confidential
     2  or unauthorized logical information technology perimeter.
     3    (g)  "Smart  access  system"  means any system that uses electronic or
     4  computerized technology, a radio frequency identification card, a mobile
     5  phone  application,  biometric  identifier  information,  or  any  other
     6  digital  technology  in  order  to  grant access to a multiple dwelling,
     7  common areas in such multiple dwelling, or  to  an  individual  dwelling
     8  unit in such multiple dwelling.
     9    (h) "Third party" means an entity that installs, operates or otherwise
    10  directly  supports a smart access system, and has ongoing access to user
    11  data, excluding any entity that solely hosts such data.
    12    (i) "User" means a tenant or lawful occupant of a  multiple  dwelling,
    13  and  any person a tenant or lawful occupant has requested, in writing or
    14  through a mobile application, be granted access to such tenant or lawful
    15  occupant's dwelling unit and such building's smart access system.
    16    2. Entry. (a) Where an owner installs or  plans  to  install  a  smart
    17  access  system on any entrance from the street, passageway, court, yard,
    18  cellar, or other common area of a multiple dwelling, such  system  shall
    19  not  rely  solely  on a web-based application to facilitate entrance but
    20  shall also include a key fob, key card,  digital  key  or  passcode  for
    21  tenant use.
    22    (b) Owners may provide various methods of entry into individual apart-
    23  ments  including a mechanical key or a smart access system of a key fob,
    24  key card or digital key, provided, however that such smart access system
    25  shall not rely solely on a web-based application.
    26    (c) Notwithstanding paragraph (a) or (b) of this  subdivision,  owners
    27  shall  provide  a  non-electronic  means of entry where requested by the
    28  tenant or lawful occupant due to a religious preference.
    29    (d) All lawful tenants and lawful occupants shall be provided  with  a
    30  key,  key  fob,  digital  key or key card at no cost to such tenants and
    31  lawful occupants. The term "lawful  occupants"  shall  include  children
    32  under  the  age  of eighteen who shall be issued a key, key fob, digital
    33  keys or key card if a parent or guardian requests such child be provided
    34  with one. Tenants and lawful occupants may also receive up to four addi-
    35  tional keys, key fobs, digital keys or key  cards  at  no  cost  to  the
    36  tenant  or  lawful  occupant  for employees or guests. The term "guests"
    37  shall include family members and friends who can reasonably be  expected
    38  to  visit  on a regular basis or visit as needed to care for the tenant,
    39  lawful occupant, or the dwelling unit if the tenant or  lawful  occupant
    40  is  away.  Employees,  including contractors, professional caregivers or
    41  other services providers, may have an expiration date  placed  on  their
    42  key,  key  card,  digital key or key fob, which may be extended upon the
    43  tenant or lawful occupant's request. Tenants  or  lawful  occupants  may
    44  request  a  new  or replacement key, key fob, digital key or key card at
    45  any time throughout the course of the tenancy. The owner or their  agent
    46  shall  provide  the  first  replacement key, key fob, digital key or key
    47  card to the tenant or lawful occupant free of charge. The cost of second
    48  and subsequent replacement cards shall not be more than what  the  owner
    49  paid for the replacement up to and not exceeding twenty-five dollars.
    50    (e)  The  owner  shall not set limits on the number of keys, key fobs,
    51  digital keys or key cards a tenant or lawful occupant may request.
    52    (f) Any door that has a smart access system shall have backup power or
    53  an alternative means of entry to ensure that the entry system  continues
    54  to  operate  during  a  power  outage.  An  owner, or their agent, shall
    55  routinely inspect the backup power and shall replace according to system
    56  specifications. Owners or their agents shall provide tenants and  lawful

        A. 48--B                            8
 
     1  occupants  with  information about whom to contact in the event that the
     2  tenant, lawful occupant or the tenant's or lawful  occupant's  children,
     3  guests or employees become locked out.
     4    3.  Notice. Owners or their agents shall provide notice to a tenant or
     5  lawful occupant at the time the tenant  or  lawful  occupant  signs  the
     6  lease,  or  when the smart access system is installed, of the provisions
     7  of subdivision two of this section.
     8    4. Data collection. (a) If a smart access system is utilized  to  gain
     9  entrance to a multiple dwelling, the only reference, authentication, and
    10  account information gathered by any smart access system shall be limited
    11  to  account information necessary to enable the use of such smart access
    12  system, or reference data, including  the  user's  name,  dwelling  unit
    13  number and other doors or common areas to which the user has access, the
    14  preferred  method  of contact for such user, information used to grant a
    15  user entry or to access any online tools used to  manage  user  accounts
    16  related  to  such  building, lease information including move-in and, if
    17  available move-out dates, and authentication data such as time and meth-
    18  od of access for security purposes and a photograph of access events for
    19  security purposes. For smart access systems that rely on the  collection
    20  of biometric data and which have already been installed at the time this
    21  section shall have become a law, biometric identifier information may be
    22  collected  pursuant  to  this  section in order to register a user for a
    23  smart access system. No new  smart  access  systems  that  rely  on  the
    24  collection  of  biometric  data shall be installed in multiple dwellings
    25  for three years after the effective date of this section.
    26    (i) The owner of the multiple dwelling shall collect only the  minimum
    27  data  required  by  the  technology  used  in the smart access system to
    28  effectuate such entrance and protect the privacy and  security  of  such
    29  users.
    30    (ii)  The  owner or agent of the owner shall not request or retain, in
    31  any form, the social security number of any tenant or lawful occupant as
    32  a condition of use of the smart access system.
    33    (iii) The owner, agent of the owner, or the vendor of a  smart  access
    34  system  on behalf of the owner may record each time a key fob, key card,
    35  digital key or passcode is used to enter the  building,  but  shall  not
    36  record any departures.
    37    (iv) A copy of such data may be retained for reference at the point of
    38  authentication by the smart access system.  Such reference data shall be
    39  retained only for tenants or lawful occupants or those authorized by the
    40  tenant, lawful occupant, or owner of the multiple dwelling.
    41    (v)  The  owner  of  the  multiple  dwelling  or any third party shall
    42  destroy or anonymize authentication data collected from or generated  by
    43  such  smart  access  system within a reasonable time, but not later than
    44  ninety days after the date collected.
    45    (vi) Reference data for a user shall be destroyed or anonymized within
    46  ninety days of (1) the tenant or lawful  occupant  permanently  vacating
    47  the dwelling, or (2) a request by the tenant or lawful occupant to with-
    48  draw  authorization  for  those  previously  authorized by the tenant or
    49  lawful occupant.
    50    (b) (i) An entity shall not capture biometric  identifier  information
    51  of  an  individual  to  gain  entrance to a multiple dwelling unless the
    52  person is a tenant or lawful occupant or  a  person  authorized  by  the
    53  tenant  or  lawful occupant, and informs the individual before capturing
    54  the biometric identifier information; and receives their express consent
    55  to capture the biometric identifier information.

        A. 48--B                            9
 
     1    (ii) Any entity that possesses biometric identifier information of  an
     2  individual that is captured to gain entrance to a multiple dwelling:
     3    (1)  Shall not sell, lease or otherwise disclose the biometric identi-
     4  fier information to another person unless pursuant  to  any  law,  grand
     5  jury  subpoena  or  court ordered warrant, subpoena, or other authorized
     6  court ordered process.
     7    (2) Shall store, transmit and protect from  disclosure  the  biometric
     8  identifier information using reasonable care and in a manner that is the
     9  same  as  or more protective than the manner in which the person stores,
    10  transmits and protects confidential information  the  person  possesses;
    11  and
    12    (3)  Shall  destroy  the  biometric  identifier  information  within a
    13  reasonable time, but not later than forty-eight  hours  after  the  date
    14  collected,  except  for reference data. If any prohibited information is
    15  collected, such as the likeness of a minor or a non-tenant, the informa-
    16  tion shall be destroyed immediately.
    17    (c) The owner of the multiple dwelling, or the managing  agent,  shall
    18  develop  and  provide to tenants and lawful occupants written procedures
    19  which describe the process used to add persons authorized by the  tenant
    20  or  lawful  occupant to the smart access system on a temporary or perma-
    21  nent basis, such as visitors, children, their employees, and  caregivers
    22  to such building.
    23    (i) The procedures shall clearly establish the owner's retention sche-
    24  dule  and  guidelines for permanently destroying or anonymizing the data
    25  collected.
    26    (ii) The procedures shall not limit time or place of entrance by  such
    27  people  authorized  by the tenant or lawful occupant except as requested
    28  by the tenant or lawful occupant.
    29    5. Prohibitions. (a) No form of location tracking, including  but  not
    30  limited  to  satellite location based services, shall be included in any
    31  equipment, key, or software provided to users as part of a smart  access
    32  system.
    33    (b)  It  shall  be prohibited to collect through a smart access system
    34  the likeness of a minor occupant, information on the relationship status
    35  of tenants or lawful occupants and their  guests,  or  to  use  a  smart
    36  access  system  to  collect or track information about the frequency and
    37  time of use of such system by a tenant  or  lawful  occupant  and  their
    38  guests  to  harass or evict a tenant or lawful occupant or for any other
    39  purpose not expressly related to  the  operation  of  the  smart  access
    40  system.
    41    (c)  Information that is acquired via the use of a smart access system
    42  shall not be used for any purposes other than  granting  access  to  and
    43  monitoring  building  entrances  and  shall  not be used as the basis or
    44  support for an action to evict a lessee, tenant, or lawful occupant,  or
    45  an administrative hearing seeking a change in regulatory coverage for an
    46  individual  or  unit. However, a tenant or lawful occupant may authorize
    47  their information to be used by a third party, but such a request  shall
    48  clearly state who will have access to such information, for what purpose
    49  it  will  be  used,  and  the  privacy policies which will protect their
    50  information. Under no circumstances  shall  a  lease  or  a  renewal  be
    51  contingent  upon  authorizing  such  use.  Smart  access systems may use
    52  third-party services to the extent  required  to  maintain  and  operate
    53  system  infrastructure,  including  cloud-based hosting and storage. The
    54  provider or providers of third-party infrastructure services shall  meet
    55  or exceed the privacy protections set forth in this section and shall be

        A. 48--B                           10
 
     1  subject  to  the same liability for breach of any of the requirements of
     2  this section.
     3    (d)  Information and data collected shall not be made available to any
     4  third party, unless authorized as described in  paragraph  (c)  of  this
     5  subdivision, including but not limited to law enforcement, except upon a
     6  grand  jury  subpoena  or  a  court  ordered warrant, subpoena, or other
     7  authorized court ordered process.
     8    6. Storage of information. Any information or data collected shall  be
     9  stored in a secure manner to prevent unauthorized access by both employ-
    10  ees  and  contractors  and  those  unaffiliated  with the owner or their
    11  agents, except as otherwise provided in this section. Future or continu-
    12  ing tenancy shall not be conditioned upon consenting to  the  use  of  a
    13  smart access system.
    14    7.  Software issues. Whenever a company that produces, makes available
    15  or installs smart access systems discovers a security breach or critical
    16  security vulnerability in their  software,  such  company  shall  notify
    17  customers  of  such  vulnerability within a reasonable time of discovery
    18  but no later than twenty-four hours after discovery and shall make soft-
    19  ware updates available and take any other action as may be necessary  to
    20  repair  the  vulnerability within a reasonable time, but not longer than
    21  thirty days after discovery. Smart  access  systems  and  vendors  shall
    22  implement  and  maintain  reasonable  security  procedures and practices
    23  appropriate to the nature of the information  collected.  In  the  event
    24  that  a security breach or critical security vulnerability that pertains
    25  to the embedded software or firmware on  the  smart  access  systems  is
    26  discovered, smart access systems and their vendors shall:
    27    (a)  be  able to create updates to the firmware to correct the vulner-
    28  abilities;
    29    (b) contractually commit to customers that the smart access system  or
    30  vendor will create updates to the embedded software or firmware to reme-
    31  dy the vulnerabilities; and
    32    (c)  make such security-related software or firmware updates available
    33  for free to customers for the  duration  of  the  contract  between  the
    34  building and smart access systems.
    35    8.  Waiver  of  rights; void. Any agreement by a lessee or tenant of a
    36  dwelling waiving or modifying their rights as set forth in this  section
    37  shall be void as contrary to public policy.
    38    9.  Penalties. (a) A person who violates this section shall be subject
    39  to a civil penalty of not more  than  five  thousand  dollars  for  each
    40  violation.    The  attorney  general  may bring an action to recover the
    41  civil penalty. An individual injured by a violation of this section  may
    42  bring  an  action  to recover damages. A court may also award attorneys'
    43  fees to a prevailing plaintiff.
    44    (b) Where an owner or their agent uses a smart access system to harass
    45  or otherwise deprive a tenant or lawful occupant of any rights available
    46  under law, such owner or agent shall be subject to a  civil  penalty  of
    47  ten thousand dollars for each violation.
    48    (c)  For  purposes  of this subdivision, each day the violation occurs
    49  shall be considered a separate violation.
    50    10. Rent regulated dwellings. Installation of a  smart  access  system
    51  pursuant  to  this section in a dwelling subject to the emergency tenant
    52  protection act of nineteen hundred seventy-four, the  emergency  housing
    53  rent  control  law, the local emergency housing rent control act, or the
    54  rent stabilization law of nineteen hundred sixty-nine shall constitute a
    55  modification of services requiring the owner of such dwelling  or  their
    56  agent  to  apply  to  the  division of housing and community renewal for

        A. 48--B                           11
 
     1  approval before performing such installation.  Such  installation  shall
     2  not qualify as a basis for rent reduction.
     3    11.  Exemptions.  (a) Nothing herein shall apply to multiple dwellings
     4  owned or managed by an entity subject to 42 U.S.C. § 1437  et  seq.,  or
     5  any of its subsidiaries.
     6    (b)  Nothing in this section shall limit the authority of the division
     7  of housing and  community  renewal  to  impose  additional  requirements
     8  regarding smart access systems installed in multiple dwellings for which
     9  the  division  is  required to approve substitutions or modifications of
    10  services.
    11    § 3. Severability. If any provision of this act, or any application of
    12  any provision of this act, is held to be invalid, that shall not  affect
    13  the  validity or effectiveness of any other provision of this act, or of
    14  any  other application of any provision of this act, which can  be given
    15  effect  without  that  provision  or  application;  and to that end, the
    16  provisions and applications of this act are severable.
    17    § 4. This act shall take effect on the one hundred eightieth day after
    18  it shall have become a law.
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