Provides for the protection of health information; establishes requirements for communications to individuals about their health information; requires either written consent or a designated necessary purpose for the processing of an individual's health information.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2141
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the general business law, in relation to providing for
the protection of health information
PURPOSE OR GENERAL IDEA OF BILL:
This bill would govern companies that collect and sell healthcare infor-
mation and provides additional rights and protections to users related
to the sale and of their private health information.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the general business law by adding a new article 42.
Section two provides a severability clause. Section three establishes
the effective date.
JUSTIFICATION:
Most residents of the State are under the impression that HIPAA protects
them and their health data from being accessed by third parties and sold
by and to other organizations. Residents are generally unaware that
their technology is constantly tracking their movements, and geolocation
data is being sold to companies for the purposes of targeted advertise-
ments or tracking. Most users also do not have an understanding of how
much information is being collected, stored, and sold for the benefit of
third parties. For example, a mobile app to track menstruation cycles
was recently caught selling users' data to antiabortion advocacy organ-
izations.
This bill creates a legal framework for residents to reclaim and retain
control of their healthcare information. Electronic apps or websites,
that are designed to provide a diagnosis or retain health information
will be required to receive affirmative consent by the user to retain
such information and would provide users the ability to rescind such
consent. The bill also provides a legal remedy for those whose data was
improperly collected or used.
PRIOR LEGISLATIVE HISTORY:
2022-23: A.4983-D - Advanced to Third Reading; S.158-E - Advanced to
Third Reading
FISCAL IMPLICATIONS:
None to the State.
STATE OF NEW YORK
________________________________________________________________________
2141
2025-2026 Regular Sessions
IN ASSEMBLY
January 15, 2025
___________
Introduced by M. of A. ROSENTHAL, REYES, DINOWITZ, SIMON, CUNNINGHAM,
TAPIA, SHIMSKY, EPSTEIN, BICHOTTE HERMELYN, BURDICK, BRAUNSTEIN,
LUCAS, SEAWRIGHT, STIRPE, GLICK, KIM, DILAN, TAYLOR, SEPTIMO, GONZA-
LEZ-ROJAS, LEVENBERG, MITAYNES, RAMOS, OTIS -- read once and referred
to the Committee on Science and Technology
AN ACT to amend the general business law, in relation to providing for
the protection of health information
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new article
2 42-A to read as follows:
3 ARTICLE 42-A
4 NEW YORK HEALTH INFORMATION PRIVACY ACT
5 Section 1120. Definitions.
6 1121. Requirements for communications to individuals.
7 1122. Lawfulness of processing regulated health information.
8 1123. Individual rights.
9 1124. Security.
10 1125. Service providers.
11 1126. Exemptions.
12 1127. Enforcement.
13 1128. Contracts and waivers void and unenforceable.
14 § 1120. Definitions. As used in this article, the following terms
15 shall have the following meanings:
16 1. "Deidentified information" means information that cannot reasonably
17 be used to infer information about, or otherwise be linked to a partic-
18 ular individual, household, or device, provided that the regulated enti-
19 ty or service provider that processes the information:
20 (a) Implements reasonable technical safeguards to ensure that the
21 information cannot be associated with an individual, household, or
22 device;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01741-01-5
A. 2141 2
1 (b) Publicly commits to process the information only as deidentified
2 information and not attempt to reidentify the information, except that
3 the regulated entity or service provider may attempt to reidentify the
4 information solely for the purpose of determining whether its deiden-
5 tification processes satisfy the requirements of this section; and
6 (c) Contractually obligates any recipient of the deidentified informa-
7 tion to comply with all requirements of this section.
8 2. "Regulated health information" means any information that is
9 reasonably linkable to an individual, or a device, and is collected or
10 processed in connection with the physical or mental health of an indi-
11 vidual. Location or payment information that relates to an individual's
12 physical or mental health or any inference drawn or derived about an
13 individual's physical or mental health that is reasonably linkable to an
14 individual, or a device, shall be considered, without limitation, regu-
15 lated health information. Regulated health information shall not
16 include deidentified information.
17 3. "Process" or "processing" means an operation or set of operations
18 performed on regulated health information, including but not limited to
19 the collection, use, access, sharing, sale, monetization, analysis,
20 retention, creation, generation, derivation, recording, organization,
21 structuring, storage, disclosure, transmission, disposal, licensing,
22 destruction, deletion, modification, or deidentification of regulated
23 health information.
24 4. "Regulated entity" means any entity that (a) controls the process-
25 ing of regulated health information of an individual who is a New York
26 resident, (b) controls the processing of regulated health information of
27 an individual who is physically present in New York while that individ-
28 ual is in New York, or (c) is located in New York and controls the proc-
29 essing of regulated health information. A regulated entity may also be a
30 service provider depending upon the context in which regulated health
31 information is processed.
32 5. "Sell" means to share regulated health information for monetary or
33 other valuable consideration. Selling does not include the sharing of
34 regulated health information for monetary or other valuable consider-
35 ation to a third party as an asset that is part of a merger, acquisi-
36 tion, bankruptcy, or other transaction in which the third party assumes
37 control of all or part of the regulated entity's assets.
38 6. "Service provider" means any person or entity that processes regu-
39 lated health information on behalf of a regulated entity. A service
40 provider may also be a regulated entity depending upon the context in
41 which regulated health information is processed.
42 7. "Third party" means a person or entity other than the individual,
43 regulated entity, or service provider involved in a transaction or
44 occurrence that involves regulated health information. A third party may
45 also be a regulated entity or service provider depending upon the
46 context in which regulated health information is processed.
47 § 1121. Requirements for communications to individuals. All notices,
48 disclosures, forms, and other communications to individuals provided
49 pursuant to this article shall comply with the following:
50 1. In general, all communications shall use plain, straightforward
51 language, avoiding technical or legal jargon, and must be provided
52 through an interface the individual regularly uses in connection with
53 the regulated entity's product or service.
54 2. All communications shall be reasonably accessible to individuals
55 with disabilities, including by:
56 (a) utilizing digital accessibility tools;
A. 2141 3
1 (b) for notices, complying with generally recognized industry stand-
2 ards, including, but not limited to, current standards set by standards
3 setting bodies such as the World Web Consortium, or other similar stand-
4 ards setting bodies as determined by the attorney general; and
5 (c) for other communications, providing information about how an indi-
6 vidual with a disability may access the communication in an alternative
7 format.
8 3. All communications shall be available in the languages in which the
9 regulated entity provides information via its website and services. Any
10 direct communication to an individual shall be provided in the language
11 in which the individual ordinarily interacts with the regulated entity
12 or its service provider.
13 4. A regulated entity shall make any notice for processing pursuant to
14 a permissible purpose, pursuant to subparagraph (ii) of paragraph (b) of
15 subdivision one of section eleven hundred twenty-two of this article, or
16 form for processing pursuant to authorization, pursuant to subparagraph
17 (i) of paragraph (b) of subdivision one of section eleven hundred twen-
18 ty-two of this article, publicly available on its website. If an author-
19 ization form is customized for each individual, the regulated entity may
20 instead publicly post a sample authorization form on its website.
21 § 1122. Lawfulness of processing regulated health information. 1. In
22 general, it shall be unlawful for a regulated entity to:
23 (a) sell an individual's regulated health information to a third
24 party; or
25 (b) otherwise process an individual's regulated health information
26 unless:
27 (i) The individual has provided valid authorization for such process-
28 ing as set forth in paragraph (b) of subdivision two of this section; or
29 (ii) Processing of an individual's regulated health information is
30 strictly necessary for the purpose of:
31 (A) providing or maintaining a specific product or service requested
32 by such individual;
33 (B) conducting the regulated entity's internal business operations,
34 which exclude any activities related to marketing, advertising, research
35 and development, or providing products or services to third parties;
36 (C) protecting against malicious, fraudulent, or illegal activity;
37 (D) detecting, responding to, or preventing security incidents or
38 threats;
39 (E) protecting the vital interests of an individual;
40 (F) investigating, establishing, exercising, preparing for, or defend-
41 ing legal claims; or
42 (G) complying with the regulated entity's legal obligations.
43 2. Unless processing of an individual's regulated health information
44 is strictly necessary pursuant to subparagraph (ii) of paragraph (b) of
45 subdivision one of this section, a regulated entity that processes regu-
46 lated health information pursuant to valid authorization as required by
47 subparagraph (i) of paragraph (b) of subdivision one of this section
48 shall comply with the following:
49 (a) A request for authorization to process an individual's regulated
50 health information shall:
51 (i) be made separately from any other transaction or part of a trans-
52 action;
53 (ii) be made at least twenty-four hours after an individual creates an
54 account or first uses the requested product or service;
A. 2141 4
1 (iii) be made in the absence of any mechanism that has the purpose or
2 substantial effect of obscuring, subverting, or impairing an individ-
3 ual's decision-making regarding authorization for processing;
4 (iv) if requesting authorization for multiple categories of processing
5 activities, allow the individual to provide or withhold authorization
6 separately for each category of processing activity; and
7 (v) not include any request for authorization for a processing activ-
8 ity for which an individual has withheld or revoked authorization within
9 the past calendar year.
10 (b) A valid authorization shall include:
11 (i) the types of regulated health information to be processed;
12 (ii) the nature of the processing activity;
13 (iii) the specific purposes for such processing;
14 (iv) the names where readily available, or categories of service
15 providers and third parties to which the regulated entity may disclose
16 the individual's regulated health information and the purposes for such
17 disclosure, including the circumstances under which the regulated entity
18 may disclose regulated health information to law enforcement;
19 (v) any monetary or other valuable consideration the regulated entity
20 may receive in connection with processing the individual's regulated
21 health information, where applicable;
22 (vi) that failing to provide authorization will not affect the indi-
23 vidual's experience of using the regulated entity's products or
24 services;
25 (vii) the expiration date of the authorization, which may be up to one
26 year from the date authorization was provided;
27 (viii) the mechanism by which the individual may revoke authorization
28 prior to expiration;
29 (ix) the mechanism by which the individual may request access to and
30 deletion of their regulated health information;
31 (x) any other information material to an individual's decision-making
32 regarding authorization for processing; and
33 (xi) the signature, which may be electronic, of the individual who is
34 the subject of the regulated health information, or a parent or guardian
35 authorized by law to take actions of legal consequence on behalf of the
36 individual who is the subject of the regulated health information, and
37 the date.
38 (c) (i) A regulated entity that receives authorization for processing
39 shall provide an effective, efficient, and easy-to-use mechanism by
40 which an individual may revoke authorization at any time through an
41 interface the individual regularly uses in connection with the regulated
42 entity's product or service.
43 (ii) Upon an individual's revocation of authorization, the regulated
44 entity shall immediately cease all processing activities for which
45 authorization was revoked, except to the extent necessary to comply with
46 the regulated entity's legal obligations.
47 (iii) For individuals who have an online account with the regulated
48 entity, the regulated entity must provide, in a conspicuous and easily
49 accessible place within the account settings, a list of all processing
50 activities for which the individual has provided authorization and, for
51 each processing activity, allow the individual to revoke authorization
52 in the same place with one motion or action.
53 (d) Upon obtaining valid authorization from an individual, the regu-
54 lated entity shall provide that individual a copy of the authorization.
55 The authorization shall be provided in a manner that is capable of being
56 retained by the individual.
A. 2141 5
1 (e) The regulated entity shall limit its processing to what was clear-
2 ly disclosed to an individual pursuant to paragraph (b) of this subdivi-
3 sion when the regulated entity received authorization from the individ-
4 ual.
5 (f) If the regulated entity seeks to materially alter its processing
6 activities for regulated health information collected pursuant to
7 authorization, the regulated entity shall obtain a new authorization for
8 the new or altered processing activity.
9 (g) Providing a product or service requested by an individual must not
10 be made contingent on providing authorization. The regulated entity must
11 not discriminate against an individual for withholding authorization,
12 such as by charging different prices or rates for products or services,
13 including through the use of discounts or other benefits, imposing
14 penalties, or providing a different level or quality of services or
15 goods to the individual.
16 3. A regulated entity that processes regulated health information
17 pursuant to a permissible purpose pursuant to subparagraph (ii) of para-
18 graph (b) of subdivision one of this section shall comply with the
19 following:
20 (a) A regulated entity shall provide clear and conspicuous notice that
21 describes:
22 (i) the types of regulated health information to be processed;
23 (ii) the nature of the processing activity;
24 (iii) the specific purposes for such processing;
25 (iv) the names where readily available, or categories of service
26 providers and third parties to which the regulated entity may disclose
27 the individual's regulated health information and the purposes for such
28 disclosure, including the circumstances under which the regulated entity
29 may disclose regulated health information to law enforcement; and
30 (v) the mechanism by which the individual may request access to and
31 deletion of their regulated health information.
32 (b) If the regulated entity materially alters its processing activ-
33 ities for regulated health information collected pursuant to a permissi-
34 ble purpose, the regulated entity must provide a clear and conspicuous
35 notice in plain language, separate from a privacy policy, terms of
36 service, or similar document, that describes any material changes to the
37 processing activities and provide the individual with an opportunity to
38 request deletion of their regulated health information.
39 § 1123. Individual rights. 1. (a) A regulated entity shall make avail-
40 able an effective, efficient, and easy-to-use mechanism through an
41 interface the individual regularly uses in connection with the regulated
42 entity's product or service by which an individual may request access to
43 their regulated health information.
44 (b) Within thirty days of receiving an access request, the regulated
45 entity shall make available a copy of all regulated health information
46 about the individual that the regulated entity maintains or that service
47 providers maintain on behalf of the regulated entity.
48 2. (a) A regulated entity shall make available an effective, effi-
49 cient, and easy-to-use mechanism through an interface the individual
50 regularly uses in connection with the regulated entity's product or
51 service by which an individual may request the deletion of their regu-
52 lated health information.
53 (b) An individual's request to delete or cancel their online account
54 shall be treated as a request to delete the individual's regulated
55 health information.
A. 2141 6
1 (c) Within thirty days of receiving a deletion request, the regulated
2 entity shall:
3 (i) Delete all regulated health information associated with the indi-
4 vidual in the regulated entity's possession or control, except to the
5 extent necessary to comply with the regulated entity's legal obli-
6 gations; and
7 (ii) Unless it proves impossible or involves disproportionate effort
8 that is documented in writing by the regulated entity, communicate such
9 request to each service provider or third party that processed the indi-
10 vidual's regulated health information in connection with a transaction
11 involving the regulated entity occurring within one year preceding the
12 individual's request.
13 (d) Any service provider or third party that receives notice of an
14 individual's deletion request shall within thirty days delete all regu-
15 lated health information associated with the individual in its
16 possession or control, except to the extent necessary to comply with its
17 legal obligations.
18 3. Any right set forth in this section may be exercised at any time by
19 the individual who is the subject of the regulated health information or
20 an agent authorized by such individual.
21 § 1124. Security. 1. In general, a regulated entity shall develop,
22 implement, and maintain reasonable administrative, technical, and phys-
23 ical safeguards to protect the security, confidentiality, and integrity
24 of regulated health information.
25 2. A regulated entity must securely dispose of an individual's regu-
26 lated health information pursuant to a publicly available retention
27 schedule within a reasonable time, and in no event later than sixty
28 days, after it is no longer necessary to maintain for the permissible
29 purpose or purposes identified in the notice or for which the individual
30 provided valid authorization.
31 § 1125. Service providers. 1. In general, any processing of regulated
32 health information by a service provider on behalf of a regulated entity
33 shall be governed by a written, binding agreement. Such agreement shall
34 clearly set forth instructions for processing regulated health informa-
35 tion, the nature and purpose of processing, the duration of processing,
36 and the rights and obligations of both parties.
37 2. An agreement pursuant to subdivision one of this section shall
38 require that the service provider:
39 (a) ensure that each person processing regulated health information is
40 subject to a duty of confidentiality with respect to such information;
41 (b) protect regulated health information in a manner consistent with
42 the requirements of this article;
43 (c) process regulated health information only when and to the extent
44 necessary to comply with its obligations to the regulated entity;
45 (d) not combine the regulated health information which the service
46 provider receives from or on behalf of the regulated entity with any
47 other personal information which the service provider receives from or
48 on behalf of another party or collects from its own relationship with
49 individuals;
50 (e) comply with any exercises of an individual's rights under section
51 eleven hundred twenty-three of this article upon the request of the
52 regulated entity and notify any service providers or third parties to
53 which it disclosed regulated health information of the request;
54 (f) delete or return all regulated health information to the regulated
55 entity at the end of the provision of services, unless retention of the
56 regulated health information is required by law;
A. 2141 7
1 (g) upon the reasonable request of the regulated entity, make avail-
2 able to the regulated entity all data in its possession necessary to
3 demonstrate the service provider's compliance with the obligations in
4 this section;
5 (h) allow, and cooperate with, reasonable assessments by the regulated
6 entity or the regulated entity's designated assessor for purposes of
7 evaluating compliance with the obligations of this article. Alterna-
8 tively, the service provider may arrange for a qualified and independent
9 assessor to conduct an assessment of the service provider's policies and
10 technical and organizational measures in support of the obligations
11 under this article using an appropriate and accepted control standard or
12 framework and assessment procedure for such assessments. The service
13 provider shall provide a report of such assessment to the regulated
14 entity upon request;
15 (i) notify the regulated entity a reasonable time in advance before
16 disclosing or transferring regulated health information to any further
17 service providers, which may be in the form of a regularly updated list
18 of further service providers that may access regulated health informa-
19 tion; and
20 (j) engage any further service provider pursuant to a written, binding
21 agreement that includes the contractual requirements provided in this
22 section, containing at minimum the same obligations that the service
23 provider has entered into with regard to regulated health information.
24 § 1126. Exemptions. Nothing in this article shall apply to:
25 1. information processed by local, state, and federal governments, and
26 municipal corporations;
27 2. protected health information that is collected by a covered entity
28 or business associate governed by the privacy, security, and breach
29 notification rules issued by the United States Department of Health and
30 Human Services, Parts 160 and 164 of Title 45 of the Code of Federal
31 Regulations, established pursuant to the Health Insurance Portability
32 and Accountability Act of 1996 (Public Law 104-191) and the Health
33 Information Technology for Economic and Clinical Health Act (Public Law
34 111-5);
35 3. any covered entity governed by the privacy, security, and breach
36 notification rules issued by the United States Department of Health and
37 Human Services, Parts 160 and 164 of Title 45 of the Code of Federal
38 Regulations, established pursuant to the Health Insurance Portability
39 and Accountability Act of 1996 (Public Law 104-191), to the extent the
40 covered entity maintains patient information in the same manner as
41 protected health information as described in subdivision two of this
42 section; and
43 4. information collected as part of a clinical trial subject to the
44 Federal Policy for the Protection of Human Subjects, also known as the
45 Common Rule, pursuant to good clinical practice guidelines issued by the
46 International Council for Harmonisation or pursuant to human subject
47 protection requirements of the United States Food and Drug Adminis-
48 tration.
49 § 1127. Enforcement. 1. Whenever it appears to the attorney general,
50 either upon complaint or otherwise, that any person or persons, within
51 or outside the state, has engaged in or is about to engage in any of the
52 acts or practices stated to be unlawful under this article, the attorney
53 general may bring an action or special proceeding in the name and on
54 behalf of the people of the state of New York to enjoin any violation of
55 this article, to obtain restitution of any moneys or property obtained
56 directly or indirectly by any such violation, to obtain disgorgement of
A. 2141 8
1 any profits obtained directly or indirectly by any such violation, to
2 obtain civil penalties of not more than fifteen thousand dollars per
3 violation or twenty percent of revenue obtained from New York consumers
4 within the past fiscal year, whichever is greater, and to obtain any
5 such other and further relief as the court may deem proper, including
6 preliminary relief.
7 2. The remedies provided by this section shall be in addition to any
8 other lawful remedy available.
9 3. Any action or special proceeding brought by the attorney general
10 pursuant to this section must be commenced within six years of the date
11 on which the attorney general became aware of the violation.
12 4. In connection with any proposed action or special proceeding under
13 this section, the attorney general is authorized to take proof and make
14 a determination of the relevant facts, and to issue subpoenas in accord-
15 ance with the civil practice law and rules. The attorney general may
16 also require such other data and information as they may deem relevant
17 and may require written responses to questions under oath. Such power of
18 subpoena and examination shall not abate or terminate by reason of any
19 action or special proceeding brought by the attorney general under this
20 article.
21 5. This section shall apply to all acts declared to be unlawful in
22 this article, whether or not subject to any other law of this state, and
23 shall not supersede, amend or repeal any other law of this state under
24 which the attorney general is authorized to take any action or conduct
25 any inquiry.
26 6. The attorney general may promulgate such rules and regulations as
27 are necessary to effectuate and enforce the provisions of this section.
28 § 1128. Contracts and waivers void and unenforceable. 1. Any contrac-
29 tual provision inconsistent with this article shall be void and unen-
30 forceable.
31 2. Any waiver by any individual of the provisions of this article
32 shall be void and unenforceable.
33 § 2. Severability. If any clause, sentence, paragraph, subdivision,
34 section or part of this act shall be adjudged by any court of competent
35 jurisdiction to be invalid, such judgment shall not affect, impair, or
36 invalidate the remainder thereof, but shall be confined in its operation
37 to the clause, sentence, paragraph, subdivision, section or part thereof
38 directly involved in the controversy in which such judgment shall have
39 been rendered. It is hereby declared to be the intent of the legislature
40 that this act would have been enacted even if such invalid provisions
41 had not been included herein.
42 § 3. This act shall take effect one year after it shall have become a
43 law. Effective immediately, the addition, amendment and/or repeal of any
44 rule or regulation necessary for the implementation of this act on its
45 effective date are authorized to be made and completed on or before such
46 effective date.
