Gov. Hochul Vetoes Health Data Privacy Bill, Signs New York AI Bill
New York Gov. Kathy Hochul (D) vetoed a controversial state health data privacy bill (S-929) on Friday, an aide to Assembly sponsor Linda Rosenthal (D) told us.
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However, even as President Donald Trump seeks to stop state regulation of AI via executive order, Hochul signed the New York Responsible AI Safety and Education (Raise) Act (S-6953) with chapter amendments, said Hochul and sponsor Assemblymember Alex Bores (D).
It’s possible to modify bills after they're signed by the governor through New York’s chapter amendment process, which some had predicted with the health and AI bills. Under that process, legislators and the governor agree on changes before a bill is signed, and then the governor lets it become law with a commitment from the legislature to amend the measure, which usually happens in January.
On the Raise Act, Bores and Hochul negotiated various changes, including a reduction in penalties, according to a summary by Bores' office. Previously, the penalty was $10 million for the first violation and $30 million for subsequent violations, but the negotiated bill is $1 million for the first and $3 million for the second, it said.
"Today is a major victory in what will soon be a national fight to harness the best of AI’s potential and protect Americans from the worst of its harms," said Bores. "We defeated last-ditch attempts from AI oligarchs to wipe out this bill" and "defeated Trump’s -- and his donors’ -- attempt to stop RAISE through executive action greenlighting a Wild West for AI."
The vetoed New York Health Information Privacy Act goes beyond HIPAA protections to cover wearables and other consumer devices. Privacy attorneys who represent businesses had warned that the bill would be more burdensome for compliance than Washington state’s similar 2023 My Health My Data Act (see 2501280023).
S-929 quickly passed the legislature back in January, but amid intense lobbying at the governor’s office, the New York Senate didn’t deliver the legislation to Hochul until Dec. 8 (see 2512090016).
The health privacy legislation had run into staunch opposition (see 2512030041) from industry groups and companies including Tech:NYC, Partnership for New York City, TechNet, NetChoice, the State Privacy & Security Coalition, DoorDash and Warby Parker. While seeking a veto, they said changes to the bill proposed so far wouldn’t address their concerns (see 2512020069).
But the privacy bill also had many supporters, including the New York Civil Liberties Union, Ben & Jerry’s, more than 200 health care providers and many public advocates. In addition, the bill’s Assembly sponsor had cited support from the New York attorney general’s office.