Assembly Bill A7559

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7559
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BLUMENCRANZ -- read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to prohibiting the
   sale, transfer, or continued use of consumer genetic data upon  finan-
   cial  distress,  bankruptcy, or dissolution of a company handling such
   data

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "genetic privacy and protection act."
   § 2. The general business law is amended by adding a new article  42-A
 to read as follows:
                                ARTICLE 42-A
         PROTECTION OF CONSUMER GENETIC DATA IN FINANCIAL DISTRESS
 SECTION 1200. DEFINITIONS.
         1201. MANDATORY DELETION OF GENETIC DATA UPON FINANCIAL DISTRESS
                 OR BANKRUPTCY.
         1202. PROHIBITION ON SALE, TRANSFER, OR CONTINUED USE OF GENETIC
                 DATA.
         1203. ANNUAL FINANCIAL HEALTH DISCLOSURES.
         1204. ENFORCEMENT AND PENALTIES.
   §  1200.  DEFINITIONS.  AS  USED  IN THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "GENETIC DATA" MEANS ANY DATA, ANALYSIS, OR INFORMATION  CONCERNING
 AN  INDIVIDUAL'S  DNA, INHERITED CHARACTERISTICS, OR GENETIC PREDISPOSI-
 TIONS DERIVED FROM TESTING, SEQUENCING, OR OTHER MEANS.
   2. "GENETIC DATA HOLDER" MEANS ANY COMPANY,  ENTITY,  OR  ORGANIZATION
 THAT COLLECTS, STORES, OR PROCESSES CONSUMER GENETIC DATA.
   3. "FINANCIAL DISTRESS" MEANS ANY OF THE FOLLOWING CONDITIONS:
   (A) A PUBLIC ANNOUNCEMENT OF A MERGER, ACQUISITION, OR SALE OF ASSETS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11353-01-5
 A. 7559                             2
              

 
   (B)  A  COMPANY'S  FILING  FOR PROTECTION UNDER TITLE 11 OF THE UNITED
 STATES CODE (BANKRUPTCY CODE); OR
   (C)  NOTICE  OF  MATERIAL FINANCIAL INSTABILITY AS DETERMINED BY STATE
 REGULATORS.
   § 1201. MANDATORY DELETION OF GENETIC DATA UPON FINANCIAL DISTRESS  OR
 BANKRUPTCY.  1. A GENETIC DATA HOLDER SHALL, WITHIN THIRTY DAYS OF EXPE-
 RIENCING FINANCIAL DISTRESS THAT IS LIKELY TO LEAD TO SEEKING BANKRUPTCY
 PROTECTION,  PERMANENTLY  DELETE  ALL  CONSUMER  GENETIC  DATA  IN   ITS
 POSSESSION.
   2.  A  GENETIC  DATA  HOLDER SHALL PROVIDE WRITTEN NOTIFICATION TO ALL
 AFFECTED CONSUMERS REGARDING THE DELETION OF THEIR DATA  WITHIN  FIFTEEN
 DAYS OF SUCH DELETION.
   §  1202.  PROHIBITION  ON  SALE, TRANSFER, OR CONTINUED USE OF GENETIC
 DATA.  1. NO GENETIC DATA HOLDER MAY SELL, LEASE,  SHARE,  OR  OTHERWISE
 TRANSFER  CONSUMER  GENETIC  DATA  AS  PART  OF A BANKRUPTCY PROCEEDING,
 FINANCIAL RESTRUCTURING, OR ASSET LIQUIDATION.
   2. NO THIRD-PARTY ACQUIRING ASSETS OF A GENETIC DATA HOLDER MAY USE OR
 RETAIN CONSUMER GENETIC DATA FOR ANY PURPOSE UNLESS THE ORIGINAL CONSUM-
 ER PROVIDES EXPLICIT AND RENEWED CONSENT.
   § 1203. ANNUAL FINANCIAL HEALTH DISCLOSURES. 1. ANY GENETIC DATA HOLD-
 ER DOMICILED OR DOING BUSINESS OR OPERATING  IN  NEW  YORK  STATE  SHALL
 SUBMIT AN ANNUAL FINANCIAL STABILITY DISCLOSURE REPORT TO THE DEPARTMENT
 OF  STATE  SUBJECT  TO  LEGISLATIVE OVERSIGHT BY THE GOVERNOR, TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, AND  MINORITY  LEADERS
 OF THE SENATE AND THE ASSEMBLY.
   2. IF SUCH REPORT INDICATES MATERIAL FINANCIAL INSTABILITY, THE COMPA-
 NY SHALL BE REQUIRED TO IMMEDIATELY HALT ALL NEW COLLECTION AND PROCESS-
 ING OF CONSUMER GENETIC DATA PENDING REVIEW AND NOTIFY CONSUMERS OF SUCH
 INSTABILITY.
   §  1204.  ENFORCEMENT  AND  PENALTIES.  1.  WHENEVER IT APPEARS TO THE
 ATTORNEY GENERAL, EITHER UPON COMPLAINT OR OTHERWISE, THAT  ANY  GENETIC
 HOLDER DOMICILED OR DOING BUSINESS OR OPERATED IN THIS STATE HAS ENGAGED
 IN  OR  IS  ABOUT TO ENGAGE IN ANY OF THE ACTS OR PRACTICES STATED TO BE
 UNLAWFUL UNDER THIS ARTICLE, THE ATTORNEY GENERAL MAY BRING AN ACTION OR
 SPECIAL PROCEEDING IN THE NAME AND ON BEHALF OF THE PEOPLE OF THE  STATE
 OF NEW YORK TO ENJOIN ANY VIOLATION OF THIS ARTICLE.
   2.  ANY  VIOLATION OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY
 OF UP TO FIFTY THOUSAND DOLLARS PER AFFECTED CONSUMER,  PAYABLE  TO  THE
 NEW YORK STATE OFFICE OF VICTIM SERVICES.
   § 2. This act shall take effect immediately.