The SHIELD Act What Boards & Property Managers Need to Know

Last summer, Governor Cuomo signed into law the Stop Hacks and Improve Electronic Data Security (SHIELD) Act, which requires all businesses and organizations in possession of electronic personal information about any resident of New York State to safeguard that information by March 21, 2020; the Act also expands requirements for reporting data breaches. 

Attorney Jay L. Hack of the Manhattan law firm Gallet Dreyer & Berkey, LLP regularly advises clients facing these issues, and says that co-ops and certain incorporated condominiums qualify as ‘businesses’ covered by this law, as well as its predecessors, the General Business Law and the State Technology Law. (Hack says that it could be argued that unincorporated condominiums are not covered, but certainly their managing agents are—and as custodians of the condo’s data, they must comply.)

The existing provisions under these laws already require organizations to protect certain types of personal information, but the SHIELD Act expands on those to include not only identifying information like name and address, but also “private” information such as biometric data; health information protected by the Health Insurance Portability and Accountability Act (HIPAA); and any account number, email address, or identification number and associated password, access code, security question and answer, or other secured access information.   

The Act also expands on the definition of a “breach.” Whereas previous laws determined that the unauthorized acquisition of protected data is considered a breach, the new law defines a breach as unauthorized access to the data, regardless of whether any information was in fact acquired. In this new definition, computerized private information that is viewed by or communicated to an unauthorized person or system is considered a breach, and must be reported. This amendment went into effect in October of 2019.

Ensuring Compliance


Related Articles

Transparency & Community Governance

Are Co-ops & Condos Really Democracies?

The Pandemic, Personal Privacy & the Law

The Legal Rights of Residents

Disease & Disclosure

Preserving Privacy in the Pandemic

A Question of Privacy

NY Law is Unclear When it Comes to Co-op/Condo Residents' Info, Attorneys Say



Helping Out in the Age of Coronavirus

Lending a Hand Without Overreaching



  • My name is Joseph i serfed in my coop as member of its board many years ago.Confidentiality was part of the coop board but sometimes the board would hide many other common discussion to keep practically everything they do confidential and refused to be transparent as they spend our money ,that was 30 years ago. Today we have a member of my board doing and acting of the same manner as 30years ago .No vision , no advancement, its like we are back where i started 30 years ago.Couple of years i ended up in the Court with my Coop only for the judge to discover their misdeed while in the Court the Judge threw thevmember of the board out of her Court Room as they feel they had a right to be there and their case was thrown out without merit I had sent letter to the Governor of NY and dome member of the Legislature requiring management companybto be licensed to manage building in the State of NY to no avail as money talk in this town, yet the shareholder keep on getting screw by the building management and bad dishonest board members.Board member have a duty to be accountable during their time of service .My current Board is out of touch with reality as they are violating the bylaw and its Governance by refusing to hold Election under our coop establish system ,they have no respect for democracy now i received a letter today from the coop lawyer and the president seeking to remove from my apt for asking for accountability and asking for the board election.A president is not for life in our coop must be elected every year by its peer on the board after the annual board election to chose member to represent our interest not the interest of the contractor .We are giving bonuses to the staff every year without due regard to the shareholder consent is that also confidential since we are all paying the bills. Our coop needs major help with the government eye no shareholder elected board member to remove them from their home this is sickening after a coop president hijacked the board took over with no election ,no information we are there to guess no improvement and to top it all they are refraining upon our freedom of speech with their lawyer who is getting a monthly paycheck to secure their post on our board.It's seem to me that the bylaw of the coop only apply to others not them as they reached article after articles on what i have been doingbwrong yet they have been on my coop board with no election for the past 3 years with a system so screwed up now after 3 years and no election.Yes i am concern about money yhat previous managemnt company used without accountability since our Treasurer had no ideas of what was and is happening .The two people aware of the money are the coop lawyer and the illegal president.We need some legal help her in this coop who has been a kitty pot for our contractor.Few years ago a shareholder acting as a friend took 500dollars from me to seek legal advice ahe never told me and the other party what she did with our money and never gave us a report on what the advice was she has since died this is sherwood village.,mind you the current president of our coop had problems of her own wich will ne discussed before a judge after getting on our coop board her first action was to take charge of yhe parking which she messed up she a got a soace a former board memver was removed inder her lion paws the guy has since moved out because of her. She wanted a parking space since my wife was president and she said no because there were issues and my wife as coop president gave the full explanation to our corporate lawyer which now she cant temember ehat a world Its deceit all around as you turn around in this cooperative whic is a community.Any one willing to hrlp i need a good lawyer to suck it to them eith their 3 years no election and an illegal board making bad decision for our investment.