Plugged In @ Hinman Straub – July 26, 2019

What’s Inside

  • Governor Signs Data Breach Bills
  • Governor and Attorney General Announce Settlement with Equifax Inc.
  • Senate Plans Opioid Hearings
  • Governor Signs Bill to Criminalize Revenge Porn
  • Governor Signs Bill to Study Artificial Intelligence
  • CSEA President Will Not Seek Re-Election
  • Daughter of Former Congressman Exploring State Senate Run
  • Updates, Reminders, and Links
  • Coming Up

Governor Signs Data Breach Bills

This week, the Governor signed the Stop Hacks and Improve Electronic Data Security – or SHIELD – Act (S.5575B/A.5635), which imposes stronger obligations on businesses handling private data to provide notification to affected consumers when there is a security breach. The Governor also signed legislation (A.2374/S.3582) requiring consumer credit reporting agencies to offer identity theft prevention and mitigation services to consumers who have been affected by a security breach of the agency’s system.

  • The Shield Act (S.5575b/A.5635) expands the scope of information subject to the current data breach notification law to include biometric information, email addresses, and corresponding passwords or security questions and answers. The bill also broadens the definition of a data breach to include unauthorized “access” to private information from the current “acquired” standard. The bill will apply the notification requirement to any person or entity with private information of a New York resident, not just to those that conduct business in New York State and updates the notification procedures companies and state entities must follow when there has been a breach of private information. The bill contains carve-outs for certain notification requirements for those already complying with certain state or federal regulations, such as HIPAA or the Gramm-Leach-Bliley Act. The majority of the provisions of this bill will take effect on the ninetieth day after it shall have become law (10/23/19).
  • The other bill signed by the Governor (A.2374/S.3582) will require that when a credit reporting agency suffers a breach of information containing consumer social security numbers, the credit reporting agency must provide lifetime identity theft prevention services, and if applicable, identity theft mitigation services to affected customers for a period of up to five years. Additionally, the bill will prohibit fees relating to the implementation and lifting of security freezes on consumer credit reports, if those reports were part of a breach of information containing social security numbers. This law will take effect on the sixtieth day after it shall have become law (9/23/19) and will apply to any breach of the security of the system of a consumer credit reporting agency that occurred no more than three years prior to the effective date of this act.

The Governor said:

“As technology seeps into practically every aspect of our daily lives, it is increasingly critical that we do everything we can to ensure the information that companies are trusted with is secure. The stark reality is security breaches are becoming more frequent and with this legislation New York is taking steps to increase protections for consumers and holding these companies accountable when they mishandle sensitive data.”

Governor and Attorney General Announce Settlement with Equifax Inc.

Governor Cuomo and Attorney General James announced that New York has reached a settlement with Equifax Inc. as a result of the 2017 data breach that exposed the sensitive financial and personal information of millions of Americans, including 8.5 million New Yorkers. Under the settlement, the companies will pay a fine of $10 million to DFS, $9.2 million to the New York Attorney General’s Office as part of $175 million to Multi-State Attorneys General including New York, and Equifax has committed up to $425 million to the consumer restitution fund.

In addition to the fine, Equifax will provide New York consumers with credit monitoring services and free annual credit reports, and will pay restitution to consumers affected by the breach. New York consumers who were impacted by the data breach may enroll in at least four years of credit monitoring by the three major credit-monitoring services – Equifax, Experian and Transunion – and receive two free credit reports from Equifax every 12 months for five years. Consumers will also be able to submit claims for reimbursement for certain losses resulting from the data breach to a court-appointed administrator. 

Governor Cuomo said:

“Credit rating agencies have a responsibility to safeguard consumers’ financial and personal information, and this egregious data breach and the agency’s response was completely unacceptable. In New York we are sending a clear message to these agencies that they will be held accountable if they leave consumers’ private data vulnerable to exposure, and we will continue our rigorous oversight of these agencies to ensure New Yorkers are protected in the future.”

Attorney General James said:

“Equifax put profits over privacy and greed over people, and must be held accountable to the millions of people they put at risk. This company’s ineptitude, negligence, and lax security standards endangered the identities of half the U.S. population. Now it’s time for the company to do what’s right and not only pay restitution to the millions of victims of their data breach, but also provide every American who had their highly sensitive information accessed with the tools they need to battle identity theft in the future.” 

Senate Plans Opioid Hearings

Senate Majority Leader Andrea Stewart-Cousins announced that the Joint Senate Task Force on Opioids, Addiction & Overdose Prevention will be holding seven hearings and roundtable discussions across the state. The Task Force is charged with carrying out a holistic review of New York’s overdose crisis and the State’s approach to drug use. The Task Force will hold discussions with stakeholders and carry out a review of best practices aiming to identify gaps in the current system and to develop short- and long-term legislative and budgetary solutions. The first hearing will take place on August 9 in the Bronx, with subsequent hearings and roundtables taking place in Central New York, Buffalo, Staten Island, the Hudson Valley, Long Island, and Albany.

Senate Majority Leader Andrea Stewart-Cousins said:

“Opioid misuse and addiction is an ongoing crisis that is destroying families and communities throughout New York. This epidemic impacts all communities, which is why the Senate Majority will hold hearings and roundtable discussions throughout the state and we encourage New Yorkers to attend and participate. I commend Senators Harckham, Carlucci and Rivera, for co-chairing the Joint Senate Task Force on Opioids, Addiction & Overdose and holding these joint hearings and discussions to combat the opioid crisis.”

Governor Signs Bill to Criminalize Revenge Porn

Governor Cuomo signed into law (S.1719C/ A.5981), criminalizing the publication of “revenge porn,” or the non-consensual sharing or publication of an intimate image. This new law subjects abusers to criminal penalties of up to a year in jail, plus civil damages, and empowers victims to seek a court order to remove these images online. 

Lt. Governor Kathy Hochul said:

“As part of our Women’s Justice Agenda, we are focused on changing a culture that enables sexism and violence against women. This legislation ensures New Yorkers are not victims of nonconsensual release of intimate images, empowering them to take action to remove images from the Internet and subject abusers to jail time. This is another important step in our overall goals to achieve true social, economic, racial, and gender justice once and for all.”

Governor Signs Bill to Study Artificial Intelligence

Governor Cuomo signed legislation (S.3971B/A.1746C) creating a temporary state commission to study and investigate how to regulate artificial intelligence, robotics and automation. The commission will look at the latest uses and impacts of these technologies to determine how the State can best utilize and regulate them as necessary. The commission will examine how artificial intelligence, robotics and automation affect employment in New York State, acquire and disclose people’s personal information, affect technology industries, can be used by the public sector to enhance performance and services, and may be used in unlawful or unsafe ways. The commission will also examine how these innovative technologies have been used and regulated by other states, determine whether current New York laws are effective in regulating them, and make recommendations for how the State can leverage existing uses and, if necessary, update laws to protect industries and residents.

The commission will consist of 13 members: five appointed by the Governor; two by the temporary president of the Senate; one by the minority leader of the Senate; two by the speaker of the Assembly; one by the minority leader of the Assembly; one by the SUNY chancellor; and one by the CUNY chancellor. Upon completion of its study, the commission will issue a final report, by December 1, 2020 with its findings and recommendations to the Governor and legislative leaders. 

Governor Cuomo said:

“Artificial intelligence and automation are already having a profound impact across many industries and their influence keeps growing, so it’s critical that we do everything in our power to understand their capabilities and potential pitfalls. This new commission will look closely at how these rapidly evolving technologies are functioning and report back on how we can optimize use to benefit New Yorkers and our economy.”

CSEA President Not Seeking Re-Election

According to a report from the Albany Times Union, Civil Service Employees Association President Danny Donohue announced to union staff on Wednesday afternoon at the University Club in Albany that he will not seek re-election. Donohue will serve the remainder of his term which ends in February 2020. Donohue began his career in 1965 as an attendant at Central Islip Psychiatric Center, became the local president in 1975 with a write-in campaign and was elected to his first statewide role in 1988. He has served as president of the union since 1994 and was re-elected to a seventh term in 2016.

Donohue said in a statement:

“From my early days as a truck driver in Long Island, I quickly realized the power we could wield when we work together. I hope you will look back on my leadership and recognize that we worked together to build a better, stronger, more effective union for us all. We have faced some tough challenges, but we have come out even stronger than when I started. I look forward to our next great chapter in CSEA’s history. It has been my honor and pleasure to serve as your President.”

Governor Cuomo said in a statement:

“During 25 years at the helm of the Civil Service Employees Association, Danny Donohue demonstrated an unwavering commitment to his members and the mutual good of the people of the State of New York. It’s no secret Danny and I have not always seen eye-to-eye, but I and others have always had mutual respect for him across the bargaining table. His leadership and integrity have never been in question, and I was proud to work with him to fight the Supreme Court’s Janus decision. I thank him for his service on behalf of the working women and men of this great state and wish him well in his next chapter.”

Daughter of Former Congressman Exploring State Senate Bid

Michelle Hinchey, daughter of the late New York Congressman Maurice Hinchey, announced Wednesday that she is exploring a run for a state Senate seat. Hinchey formed a campaign committee to explore a 2020 run in the 46th State Senate District against Republican incumbent George Amedore. The 31-year-old Democrat says her father taught her the importance of how public service, hard work and collaboration can bring meaningful change.  A statement from Amedore says that he welcomes her into the conversation and looks forward to a spirited debate about the future of New York next year. 

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

After manual recount, Melinda Katz declares victory in Queens District Attorney race, despite a looming court battle.

Former Manhattan DA Robert Morgenthau dies at 99.

Coming Up

The PSC will hold its next meeting on Thursday, August 8.

The New York State Joint Senate Task Force on Opioids, Addiction and Overdose Prevention will hold a public hearing to hear from stakeholders on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on August 9.

The Board of Regents will hold its next meeting on September 9 and 10.

JCOPE will hold its next meeting on Tuesday, September 10.