NY Privacy Act Stalls, Would Escalate Protections Above Other State & International Regulations

Of greatest interest, from an innovation standpoint, was the New York Privacy Act (NYPA), S.6701/A.680-A, which had returned from the previous session, albeit in updated form. NYPA, which had previously not made it out of committee, advanced out of the consumer protection committee in a matter of days and proceeded to its third reading on May 24, 2021. After the third reading, NYPA could have proceeded to a vote. It failed to make the Senate floor calendar in the flurry of session-end activity in early June, however, and has been committed to rules, which means it will likely return to the consumer protection committee, when the next session begins on Jan. 4, 2022. A companion bill was introduced in the Assembly, but it did not move this session.

In itself, the failure of NYPA to proceed to a Senate vote is not exceptionally noteworthy. In context, however, the fact that it proceeded through consumer protection and was eligible for a Senate vote is. This is because NYPA marks an escalation of data privacy protections and restrictions not seen in other major regulatory regimes, whether in the United States or abroad. Moreover, there is no indication that NYPA failed to reach a vote because of anything other than the crush of activity that occupied the Senate as the session drew to a close. For example, there was no loud, organized opposition to the bill upon its introduction. Hence, when the legislature returns in January 2022, and budget negotiations occur in the spring, NYPA may proceed further than it has in the past. Or its groundbreaking protections may be adopted in other proposals, like the executive budget.