Bill Text: NY A05635 | 2019-2020 | General Assembly | Amended


Bill Title: Relates to notification of a security breach; includes credit and debit cards; increases civil penalties.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-06-17 - substituted by s5575b [A05635 Detail]

Download: New_York-2019-A05635-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5635--B
                                                                   R. R. 135

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 14, 2019
                                       ___________

        Introduced  by  M. of A. DenDEKKER, PAULIN -- (at request of the Depart-
          ment of Law) -- read once and referred to the  Committee  on  Consumer
          Affairs  and  Protection  -- reported and referred to the Committee on
          Codes -- reported and referred to the Committee on Ways and  Means  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- reported and referred to the  Commit-
          tee on Rules -- amended on the special order of third reading, ordered
          reprinted  as  amended,  retaining  its  place on the special order of
          third reading

        AN ACT to amend the general business law and the state  technology  law,
          in relation to notification of a security breach

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known and may be cited as the "Stop Hacks
     2  and Improve Electronic Data Security Act (SHIELD Act)".
     3    § 2. The article heading of article 39-F of the general business  law,
     4  as  added  by  chapter  442  of  the laws of 2005, is amended to read as
     5  follows:
     6             NOTIFICATION OF UNAUTHORIZED ACQUISITION OF PRIVATE
     7                   INFORMATION; DATA SECURITY PROTECTIONS
     8    § 3. Subdivisions 1, 2, 3, 5, 6, 7 and 8  of  section  899-aa  of  the
     9  general business law, subdivisions 1, 2, 3, 5, 6 and 7 as added by chap-
    10  ter  442  of the laws of 2005, paragraph (c) of subdivision 1, paragraph
    11  (a) of subdivision 6 and subdivision 8 as amended by chapter 491 of  the
    12  laws  of 2005 and paragraph (a) of subdivision 8 as amended by section 6
    13  of part N of chapter 55 of the laws of 2013, are amended, subdivision  9
    14  is renumbered subdivision 10 and a new subdivision 9 is added to read as
    15  follows:
    16    1. As used in this section, the following terms shall have the follow-
    17  ing meanings:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05343-06-9

        A. 5635--B                          2

     1    (a)  "Personal  information"  shall  mean any information concerning a
     2  natural person which, because of name, number, personal mark,  or  other
     3  identifier, can be used to identify such natural person;
     4    (b)  "Private information" shall mean either: (i) personal information
     5  consisting of any information in combination with any one or more of the
     6  following data elements, when either the data element or the combination
     7  of personal information [or] plus the data element is not encrypted,  or
     8  is  encrypted  with  an  encryption  key  that has also been accessed or
     9  acquired:
    10    (1) social security number;
    11    (2) driver's license number or non-driver identification card  number;
    12  [or]
    13    (3)  account  number, credit or debit card number, in combination with
    14  any required security code, access code, [or] password or other informa-
    15  tion that would permit access to an individual's financial account;
    16    (4) account number, credit or  debit  card  number,  if  circumstances
    17  exist wherein such number could be used to access an individual's finan-
    18  cial  account without additional identifying information, security code,
    19  access code, or password; or
    20    (5) biometric information, meaning data generated by electronic  meas-
    21  urements  of  an individual's unique physical characteristics, such as a
    22  fingerprint, voice print, retina or iris image, or other unique physical
    23  representation or digital representation of  biometric  data  which  are
    24  used to authenticate or ascertain the individual's identity; or
    25    (ii)  a  user name or e-mail address in combination with a password or
    26  security question and answer that  would  permit  access  to  an  online
    27  account.
    28    "Private  information" does not include publicly available information
    29  which is lawfully made available to the  general  public  from  federal,
    30  state, or local government records.
    31    (c)  "Breach  of  the  security of the system" shall mean unauthorized
    32  access to or acquisition of, or access to or acquisition  without  valid
    33  authorization,  of  computerized  data  that  compromises  the security,
    34  confidentiality, or integrity of [personal]  private  information  main-
    35  tained   by  a  business.  Good  faith  access  to,  or  acquisition  of
    36  [personal], private information by an employee or agent of the  business
    37  for  the purposes of the business is not a breach of the security of the
    38  system, provided that the private information is not used or subject  to
    39  unauthorized disclosure.
    40    In determining whether information has been accessed, or is reasonably
    41  believed  to  have  been accessed, by an unauthorized person or a person
    42  without valid authorization, such business  may  consider,  among  other
    43  factors, indications that the information was viewed, communicated with,
    44  used,  or altered by a person without valid authorization or by an unau-
    45  thorized person.
    46    In determining whether information has been acquired, or is reasonably
    47  believed to have been acquired, by an unauthorized person  or  a  person
    48  without  valid  authorization,  such business may consider the following
    49  factors, among others:
    50    (1) indications that the information is in the physical possession and
    51  control of an unauthorized person, such as a lost or stolen computer  or
    52  other device containing information; or
    53    (2) indications that the information has been downloaded or copied; or
    54    (3)  indications  that  the  information  was  used by an unauthorized
    55  person, such as fraudulent accounts  opened  or  instances  of  identity
    56  theft reported.

        A. 5635--B                          3

     1    (d) "Consumer reporting agency" shall mean any person which, for mone-
     2  tary  fees, dues, or on a cooperative nonprofit basis, regularly engages
     3  in whole or in part in the practice of assembling or evaluating consumer
     4  credit information or other information on consumers for the purpose  of
     5  furnishing  consumer  reports to third parties, and which uses any means
     6  or facility of interstate commerce  for  the  purpose  of  preparing  or
     7  furnishing consumer reports. A list of consumer reporting agencies shall
     8  be  compiled by the state attorney general and furnished upon request to
     9  any person or business required to make a notification under subdivision
    10  two of this section.
    11    2. Any person or business which [conducts business in New York  state,
    12  and  which]  owns  or  licenses computerized data which includes private
    13  information shall disclose any breach of  the  security  of  the  system
    14  following discovery or notification of the breach in the security of the
    15  system  to any resident of New York state whose private information was,
    16  or is reasonably believed to have been, accessed or acquired by a person
    17  without valid authorization.  The disclosure shall be made in  the  most
    18  expedient  time possible and without unreasonable delay, consistent with
    19  the legitimate needs of law enforcement, as provided in subdivision four
    20  of this section, or any measures necessary to determine the scope of the
    21  breach and restore the [reasonable] integrity of the system.
    22    (a) Notice to affected persons under this section is not  required  if
    23  the  exposure  of  private  information was an inadvertent disclosure by
    24  persons authorized to access private  information,  and  the  person  or
    25  business  reasonably  determines such exposure will not likely result in
    26  misuse of such information, or financial harm to the affected persons or
    27  emotional harm in the case of unknown disclosure of  online  credentials
    28  as  found  in  subparagraph  (ii) of paragraph (b) of subdivision one of
    29  this section. Such a determination must be  documented  in  writing  and
    30  maintained  for  at  least five years. If the incident affects over five
    31  hundred residents of New York, the person or business shall provide  the
    32  written  determination  to  the  state  attorney general within ten days
    33  after the determination.
    34    (b) If notice of the breach of the security of the system is  made  to
    35  affected  persons pursuant to the breach notification requirements under
    36  any of the following laws, nothing in this  section  shall  require  any
    37  additional  notice  to those affected persons, but notice still shall be
    38  provided to the state attorney general, the department of state and  the
    39  division  of state police pursuant to paragraph (a) of subdivision eight
    40  of this section and to consumer reporting agencies pursuant to paragraph
    41  (b) of subdivision eight of this section:
    42    (i) regulations promulgated pursuant to Title V of the federal  Gramm-
    43  Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time;
    44    (ii)  regulations  implementing  the  Health Insurance Portability and
    45  Accountability Act of 1996 (45 C.F.R. parts 160  and  164),  as  amended
    46  from  time  to  time, and the Health Information Technology for Economic
    47  and Clinical Health Act, as amended from time to time;
    48    (iii) part five hundred of title twenty-three of the official compila-
    49  tion of codes, rules and regulations  of  the  state  of  New  York,  as
    50  amended from time to time; or
    51    (iv)  any  other data security rules and regulations of, and the stat-
    52  utes administered by, any official department, division,  commission  or
    53  agency  of the federal or New York state government as such rules, regu-
    54  lations or  statutes  are  interpreted  by  such  department,  division,
    55  commission or agency or by the federal or New York state courts.

        A. 5635--B                          4

     1    3.  Any  person  or  business  which maintains computerized data which
     2  includes private information which such person or business does not  own
     3  shall  notify  the owner or licensee of the information of any breach of
     4  the security of the  system  immediately  following  discovery,  if  the
     5  private  information  was,  or  is  reasonably  believed  to  have been,
     6  accessed or acquired by a person without valid authorization.
     7    5. The notice required by this section shall be directly  provided  to
     8  the affected persons by one of the following methods:
     9    (a) written notice;
    10    (b)  electronic  notice,  provided  that  the person to whom notice is
    11  required has expressly consented to receiving said notice in  electronic
    12  form  and a log of each such notification is kept by the person or busi-
    13  ness who notifies affected  persons  in  such  form;  provided  further,
    14  however,  that  in no case shall any person or business require a person
    15  to consent to accepting said notice in  said  form  as  a  condition  of
    16  establishing any business relationship or engaging in any transaction.
    17    (c)  telephone notification provided that a log of each such notifica-
    18  tion is kept by the person or business who notifies affected persons; or
    19    (d) substitute notice, if a business demonstrates to the state  attor-
    20  ney  general  that the cost of providing notice would exceed two hundred
    21  fifty thousand dollars, or that the affected class of subject persons to
    22  be notified exceeds five hundred thousand, or  such  business  does  not
    23  have  sufficient contact information. Substitute notice shall consist of
    24  all of the following:
    25    (1) e-mail notice when such business has an  e-mail  address  for  the
    26  subject  persons,  except if the breached information includes an e-mail
    27  address in combination with a password or security question  and  answer
    28  that would permit access to the online account, in which case the person
    29  or business shall instead provide clear and conspicuous notice delivered
    30  to  the  consumer  online  when  the consumer is connected to the online
    31  account from an internet protocol address or  from  an  online  location
    32  which  the  person  or  business  knows the consumer customarily uses to
    33  access the online account;
    34    (2) conspicuous posting of the notice  on  such  business's  web  site
    35  page, if such business maintains one; and
    36    (3) notification to major statewide media.
    37    6.  (a)  whenever  the  attorney  general  shall believe from evidence
    38  satisfactory to him or her that there is a violation of this article  he
    39  or  she  may  bring an action in the name and on behalf of the people of
    40  the state of New York, in a court  of  justice  having  jurisdiction  to
    41  issue  an  injunction,  to  enjoin and restrain the continuation of such
    42  violation.   In such action, preliminary relief  may  be  granted  under
    43  article  sixty-three of the civil practice law and rules. In such action
    44  the court may award damages for actual costs or  losses  incurred  by  a
    45  person  entitled to notice pursuant to this article, if notification was
    46  not provided to such person pursuant to this article,  including  conse-
    47  quential  financial  losses.  Whenever the court shall determine in such
    48  action that a person or business  violated  this  article  knowingly  or
    49  recklessly,  the court may impose a civil penalty of the greater of five
    50  thousand dollars or up to [ten] twenty dollars per  instance  of  failed
    51  notification, provided that the latter amount shall not exceed [one] two
    52  hundred fifty thousand dollars.
    53    (b)  the remedies provided by this section shall be in addition to any
    54  other lawful remedy available.
    55    (c) no action may be brought under  the  provisions  of  this  section
    56  unless  such  action is commenced within [two] three years [immediately]

        A. 5635--B                          5

     1  after either the date [of the act complained of or the date of discovery
     2  of such  act]  on  which  the  attorney  general  became  aware  of  the
     3  violation,  or  the  date  of  notice  sent pursuant to paragraph (a) of
     4  subdivision  eight  of this section, whichever occurs first. In no event
     5  shall an action be brought after six years from the date of discovery of
     6  the breach of private information by the company unless the company took
     7  steps to hide the breach.
     8    7. Regardless of the method by which notice is provided,  such  notice
     9  shall  include contact information for the person or business making the
    10  notification, the telephone numbers and websites of the  relevant  state
    11  and  federal agencies that provide information regarding security breach
    12  response and identity theft prevention and protection information, and a
    13  description of the categories of information that were, or  are  reason-
    14  ably  believed  to  have  been, accessed or acquired by a person without
    15  valid authorization, including specification of which of the elements of
    16  personal information and private information  were,  or  are  reasonably
    17  believed to have been, so accessed or acquired.
    18    8.  (a)  In  the event that any New York residents are to be notified,
    19  the person or business shall notify  the  state  attorney  general,  the
    20  department  of  state and the division of state police as to the timing,
    21  content and distribution  of  the  notices  and  approximate  number  of
    22  affected  persons and shall provide a copy of the template of the notice
    23  sent to affected persons.  Such notice shall be  made  without  delaying
    24  notice to affected New York residents.
    25    (b)  In  the event that more than five thousand New York residents are
    26  to be notified at one time, the person or  business  shall  also  notify
    27  consumer  reporting  agencies as to the timing, content and distribution
    28  of the notices and approximate number of affected persons.  Such  notice
    29  shall be made without delaying notice to affected New York residents.
    30    9.  Any  covered  entity required to provide notification of a breach,
    31  including breach of information that is  not  "private  information"  as
    32  defined  in  paragraph  (b)  of  subdivision one of this section, to the
    33  secretary of health and human services pursuant to the Health  Insurance
    34  Portability  and  Accountability  Act  of 1996 or the Health Information
    35  Technology for Economic and Clinical Health Act, as amended from time to
    36  time, shall provide such notification  to  the  state  attorney  general
    37  within five business days of notifying the secretary.
    38    §  4. The general business law is amended by adding a new section 899-
    39  bb to read as follows:
    40    § 899-bb. Data security protections. 1.  Definitions.  (a)  "Compliant
    41  regulated  entity" shall mean any person or business that is subject to,
    42  and in compliance with, any of the following data security requirements:
    43    (i) regulations promulgated pursuant to Title V of the federal  Gramm-
    44  Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time;
    45    (ii)  regulations  implementing  the  Health Insurance Portability and
    46  Accountability Act of 1996 (45 C.F.R. parts 160  and  164),  as  amended
    47  from  time  to  time, and the Health Information Technology for Economic
    48  and Clinical Health Act, as amended from time to time;
    49    (iii) part five hundred of title twenty-three of the official compila-
    50  tion of codes, rules and regulations  of  the  state  of  New  York,  as
    51  amended from time to time; or
    52    (iv)  any  other data security rules and regulations of, and the stat-
    53  utes administered by, any official department, division,  commission  or
    54  agency  of the federal or New York state government as such rules, regu-
    55  lations or  statutes  are  interpreted  by  such  department,  division,
    56  commission or agency or by the federal or New York state courts.

        A. 5635--B                          6

     1    (b)  "Private  information"  shall have the same meaning as defined in
     2  section eight hundred ninety-nine-aa of this article.
     3    (c)  "Small business" shall mean any person or business with (i) fewer
     4  than fifty employees; (ii) less than  three  million  dollars  in  gross
     5  annual  revenue  in  each  of the last three fiscal years; or (iii) less
     6  than five million  dollars  in  year-end  total  assets,  calculated  in
     7  accordance with generally accepted accounting principles.
     8    2.  Reasonable  security  requirement. (a) Any person or business that
     9  owns or licenses computerized data which includes private information of
    10  a resident of New York shall develop, implement and maintain  reasonable
    11  safeguards to protect the security, confidentiality and integrity of the
    12  private information including, but not limited to, disposal of data.
    13    (b)  A  person  or  business  shall be deemed to be in compliance with
    14  paragraph (a) of this subdivision if it either:
    15    (i) is a compliant regulated entity as defined in subdivision  one  of
    16  this section; or
    17    (ii) implements a data security program that includes the following:
    18    (A)  reasonable  administrative  safeguards  such as the following, in
    19  which the person or business:
    20    (1) designates one  or  more  employees  to  coordinate  the  security
    21  program;
    22    (2) identifies reasonably foreseeable internal and external risks;
    23    (3)  assesses  the  sufficiency  of safeguards in place to control the
    24  identified risks;
    25    (4) trains and manages employees in the security program practices and
    26  procedures;
    27    (5) selects service providers capable of maintaining appropriate safe-
    28  guards, and requires those safeguards by contract; and
    29    (6) adjusts the security program in light of business changes  or  new
    30  circumstances; and
    31    (B)  reasonable  technical  safeguards such as the following, in which
    32  the person or business:
    33    (1) assesses risks in network and software design;
    34    (2) assesses risks in information processing, transmission  and  stor-
    35  age;
    36    (3) detects, prevents and responds to attacks or system failures; and
    37    (4)  regularly  tests  and monitors the effectiveness of key controls,
    38  systems and procedures; and
    39    (C) reasonable physical safeguards such as the following, in which the
    40  person or business:
    41    (1) assesses risks of information storage and disposal;
    42    (2) detects, prevents and responds to intrusions;
    43    (3) protects against unauthorized access to or use of private informa-
    44  tion during or after the collection, transportation and  destruction  or
    45  disposal of the information; and
    46    (4) disposes of private information within a reasonable amount of time
    47  after it is no longer needed for business purposes by erasing electronic
    48  media so that the information cannot be read or reconstructed.
    49    (c) A small business as defined in paragraph (c) of subdivision one of
    50  this  section complies with subparagraph (ii) of paragraph (b) of subdi-
    51  vision two of this section if  the  small  business's  security  program
    52  contains  reasonable  administrative,  technical and physical safeguards
    53  that are appropriate for the size and complexity of the small  business,
    54  the  nature and scope of the small business's activities, and the sensi-
    55  tivity of the personal information the small business collects  from  or
    56  about consumers.

        A. 5635--B                          7

     1    (d)  Any person or business that fails to comply with this subdivision
     2  shall be deemed to have violated section  three  hundred  forty-nine  of
     3  this  chapter,  and the attorney general may bring an action in the name
     4  and on behalf of the people of the state of  New  York  to  enjoin  such
     5  violations  and  to  obtain  civil penalties under section three hundred
     6  fifty-d of this chapter.
     7    (e) Nothing in this section shall create a private right of action.
     8    § 5. Paragraph (a) of subdivision 1 and subdivisions 2, 3, 6, 7 and  8
     9  of section 208 of the state technology law, paragraph (a) of subdivision
    10  1  and subdivisions 3 and 8 as added by chapter 442 of the laws of 2005,
    11  subdivision 2 and paragraph (a) of subdivision 7 as amended by section 5
    12  of part N of chapter 55 of the laws of 2013 and subdivisions 6 and 7  as
    13  amended by chapter 491 of the laws of 2005, are amended and a new subdi-
    14  vision 9 is added to read as follows:
    15    (a)  "Private information" shall mean either: (i) personal information
    16  consisting of any information in combination with any one or more of the
    17  following data elements, when either the data element or the combination
    18  of personal information [or] plus the data element is not  encrypted  or
    19  encrypted  with  an  encryption  key  that  has  also  been  accessed or
    20  acquired:
    21    (1) social security number;
    22    (2) driver's license number or non-driver identification card  number;
    23  [or]
    24    (3)  account  number, credit or debit card number, in combination with
    25  any required security code, access code, [or] password or other informa-
    26  tion which would permit access to an individual's financial account;
    27    (4) account number, or credit or debit card number,  if  circumstances
    28  exist  wherein  such  number  could be used to access to an individual's
    29  financial account without additional identifying  information,  security
    30  code, access code, or password; or
    31    (5)  biometric information, meaning data generated by electronic meas-
    32  urements of an individual's unique  physical  characteristics,  such  as
    33  fingerprint, voice print, or retina or iris image, or other unique phys-
    34  ical  representation or digital representation which are used to authen-
    35  ticate or ascertain the individual's identity; or
    36    (ii) a user name or e-mail address in combination with a  password  or
    37  security  question  and  answer  that  would  permit access to an online
    38  account.
    39    "Private information" does not include publicly available  information
    40  that  is  lawfully  made  available  to the general public from federal,
    41  state, or local government records.
    42    2. Any state entity that  owns  or  licenses  computerized  data  that
    43  includes  private  information shall disclose any breach of the security
    44  of the system following discovery or notification of the breach  in  the
    45  security  of  the system to any resident of New York state whose private
    46  information was, or is reasonably believed to  have  been,  accessed  or
    47  acquired  by a person without valid authorization.  The disclosure shall
    48  be made in the most expedient time  possible  and  without  unreasonable
    49  delay,  consistent  with  the  legitimate  needs  of law enforcement, as
    50  provided in subdivision four of this section, or any measures  necessary
    51  to determine the scope of the breach and restore the [reasonable] integ-
    52  rity  of the data system.  The state entity shall consult with the state
    53  office of information technology services to determine the scope of  the
    54  breach and restoration measures. Within ninety days of the notice of the
    55  breach,  the  office  of information technology services shall deliver a

        A. 5635--B                          8

     1  report on the scope of the breach and  recommendations  to  restore  and
     2  improve the security of the system to the state entity.
     3    (a)  Notice  to affected persons under this section is not required if
     4  the exposure of private information was  an  inadvertent  disclosure  by
     5  persons  authorized  to access private information, and the state entity
     6  reasonably determines such exposure will not likely result in misuse  of
     7  such  information,  or  financial  or  emotional  harm  to  the affected
     8  persons. Such a determination must be documented in  writing  and  main-
     9  tained  for  at  least  five  years.  If the incident affected over five
    10  hundred residents of New York, the state entity shall provide the  writ-
    11  ten  determination  to  the state attorney general within ten days after
    12  the determination.
    13    (b) If notice of the breach of the security of the system is  made  to
    14  affected  persons pursuant to the breach notification requirements under
    15  any of the following laws, nothing in this  section  shall  require  any
    16  additional  notice  to those affected persons, but notice still shall be
    17  provided to the state attorney general, the department of state and  the
    18  office  of  information technology services pursuant to paragraph (a) of
    19  subdivision seven of this section and  to  consumer  reporting  agencies
    20  pursuant to paragraph (b) of subdivision seven of this section:
    21    (i)  regulations promulgated pursuant to Title V of the federal Gramm-
    22  Leach-Bliley Act (15 U.S.C. 6801 to 6809), as amended from time to time;
    23    (ii) regulations implementing the  Health  Insurance  Portability  and
    24  Accountability  Act  of  1996  (45 C.F.R. parts 160 and 164), as amended
    25  from time to time, and the Health Information  Technology  for  Economic
    26  and Clinical Health Act, as amended from time to time;
    27    (iii) part five hundred of title twenty-three of the official compila-
    28  tion  of  codes,  rules  and  regulations  of  the state of New York, as
    29  amended from time to time; or
    30    (iv) any other data security rules and regulations of, and  the  stat-
    31  utes  administered  by, any official department, division, commission or
    32  agency of the federal or New York state government as such rules,  regu-
    33  lations  or  statutes  are  interpreted  by  such  department, division,
    34  commission or agency or by the federal or New York state courts.
    35    3. Any state entity that maintains  computerized  data  that  includes
    36  private  information  which  such  agency  does not own shall notify the
    37  owner or licensee of the information of any breach of  the  security  of
    38  the  system  immediately following discovery, if the private information
    39  was, or is reasonably believed to have been, accessed or acquired  by  a
    40  person without valid authorization.
    41    6.  Regardless  of the method by which notice is provided, such notice
    42  shall include contact  information  for  the  state  entity  making  the
    43  notification,  the  telephone numbers and websites of the relevant state
    44  and federal agencies that provide information regarding security  breach
    45  response  and identity theft prevention and protection information and a
    46  description of the categories of information that were, or  are  reason-
    47  ably  believed  to  have  been, accessed or acquired by a person without
    48  valid authorization, including specification of which of the elements of
    49  personal information and private information  were,  or  are  reasonably
    50  believed to have been, so accessed or acquired.
    51    7.  (a)  In  the event that any New York residents are to be notified,
    52  the state entity shall notify the state attorney general, the department
    53  of state and the state office of information technology services  as  to
    54  the  timing,  content  and  distribution  of the notices and approximate
    55  number of affected persons and provide a copy of  the  template  of  the

        A. 5635--B                          9

     1  notice  sent  to  affected  persons.   Such notice shall be made without
     2  delaying notice to affected New York residents.
     3    (b)  In  the event that more than five thousand New York residents are
     4  to be notified at one time, the state entity shall also notify  consumer
     5  reporting  agencies  as  to  the timing, content and distribution of the
     6  notices and approximate number of affected persons. Such notice shall be
     7  made without delaying notice to affected New York residents.
     8    8. The state office of information technology services shall  develop,
     9  update  and  provide  regular training to all state entities relating to
    10  best practices for the prevention of a breach of  the  security  of  the
    11  system.
    12    9.  Any  covered  entity required to provide notification of a breach,
    13  including breach of information that is  not  "private  information"  as
    14  defined  in  paragraph  (a)  of  subdivision one of this section, to the
    15  secretary of health and human services pursuant to the Health  Insurance
    16  Portability  and  Accountability  Act  of 1996 or the Health Information
    17  Technology for Economic and Clinical Health Act, as amended from time to
    18  time, shall provide such notification  to  the  state  attorney  general
    19  within five business days of notifying the secretary.
    20     10.  Any entity listed in subparagraph two of paragraph (c) of subdi-
    21  vision one of this section shall adopt a  notification  policy  no  more
    22  than  one  hundred twenty days after the effective date of this section.
    23  Such entity may develop a notification policy which is  consistent  with
    24  this  section or alternatively shall adopt a local law which is consist-
    25  ent with this section.
    26    § 6. This act shall take effect on the ninetieth day  after  it  shall
    27  have  become  a  law;  provided,  however, that section four of this act
    28  shall take effect on the two hundred fortieth day after  it  shall  have
    29  become a law.
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