New York City, December 12, 2025
A coalition of New York business organizations is calling for Governor Kathy Hochul to veto the Health Information Privacy Act. They argue the legislation could impose significant burdens on small businesses and consumers, stifling innovation and economic growth. The bill aims to strengthen health data protections, but business leaders worry about its potential economic impact and increased compliance costs.
New York Business Groups Urge Veto of Health Data Privacy Bill
New York City, NY – A coalition of business organizations is urging Governor Kathy Hochul to veto the New York Health Information Privacy Act (S.929/A.2141), arguing that the legislation could impose significant burdens on businesses and consumers.
Introduction
The New York Health Information Privacy Act aims to enforce stricter regulations on the handling of personal health data. While the intent behind the legislation is to improve consumer protections, the implications for the state’s small business landscape warrant careful examination. Local entrepreneurs, who demonstrate exceptional resilience and innovation, are concerned that heightened regulatory measures could inhibit their ability to operate effectively and serve their communities.
In an era where economic growth largely hinges on the health of small businesses, the balance between necessary consumer protections and fostering a thriving economic environment cannot be overlooked. Many business leaders are advocating for policies that promote entrepreneurial spirit and reduce unnecessary regulatory hurdles, emphasizing how these factors contribute to job creation and community wellbeing.
Legislation Overview
The New York Health Information Privacy Act aims to extend state protections for personal health information beyond federal HIPAA regulations. Key provisions of the legislation include making it illegal to sell an individual’s regulated health information without consent and imposing restrictions on third-party processing of health data. Notably, the law carries significant penalties for violations, which could further complicate operations for businesses that rely on health data for service delivery.
Business Concerns
Leading business organizations, such as the Business Council of New York State, the National Federation of Independent Business, and the Retail Council of New York, have united in opposition to the bill. They argue that the legislation has morphed from its original intent, potentially escalating costs for consumers and disrupting essential services. Such consequences could disproportionately affect small businesses that do not have the vast resources of larger corporations to navigate increased compliance requirements.
Call to Action
The coalition has formally requested Governor Hochul to veto the bill. Their concerns reflect a broader debate regarding consumer privacy versus economic viability. By reconsidering the implications of this legislation, a more balanced approach could be reached—one that ensures consumer protection while also nurturing the state’s economic landscape.
Impact on the Economy
New York’s economic vitality is closely linked to the effectiveness of its small businesses. Concerns about the New York Health Information Privacy Act highlight the broader theme that excessive regulation can stifle innovation and entrepreneurship. Advocates for limited regulation argue that a less burdensome approach can empower businesses to thrive, allowing them to focus on creating jobs and serving customers without the constant fear of compliance failures.
Conclusion
The ongoing discussions surrounding the New York Health Information Privacy Act are emblematic of the challenges faced in aligning consumer protection with economic development. As the coalition urges a veto, it underscores the importance of reviewing legislation through a lens of both public welfare and economic sustainability. Engaging with local businesses and understanding their perspectives will be key in shaping policies that benefit all New Yorkers.
Frequently Asked Questions (FAQ)
What is the New York Health Information Privacy Act?
The New York Health Information Privacy Act (S.929/A.2141) is legislation aimed at extending state protections for personal health information beyond federal HIPAA regulations. It makes it illegal to sell an individual’s regulated health information without consent and restricts the processing of health data by third-party companies, with violations subject to substantial fines.
Which organizations are opposing the bill?
A coalition of business organizations, including the Business Council of New York State, National Federation of Independent Business, and Retail Council of New York, are urging Governor Kathy Hochul to veto the bill. They argue that its broad scope could impose significant burdens on businesses and consumers.
What are the main concerns raised by business groups?
Business groups express concerns that the bill has expanded beyond its original intent, potentially increasing costs for consumers and disrupting essential services. They believe the legislation could lead to unintended economic consequences and operational challenges for businesses.
What action has the coalition taken regarding the bill?
The coalition has formally requested Governor Hochul to veto the New York Health Information Privacy Act, citing concerns over its broad scope and potential impact on the economy and business operations.
Key Features of the New York Health Information Privacy Act
| Feature | Description |
|---|---|
| Extended Protections | Extends state protections for personal health information beyond federal HIPAA regulations. |
| Consent Requirement | Prohibits the sale of an individual’s regulated health information without their consent. |
| Third-Party Processing Restrictions | Restricts the processing of health data by third-party companies. |
| Penalties | Imposes substantial fines for violations of the act. |
Now Happening on X
- @BLaw (December 11, 2025): Business groups are pressuring New York Gov. Kathy Hochul to veto legislation (S929) that would restrict companies from collecting and sharing sensitive health data, arguing it would ensnare a broad swath of firms with compliance requirements. View on X
- @BigINewYork (December 8, 2025): Gov. Hochul vetoed the Grieving Families Act for the 4th year, citing cost and affordability concerns, with Big I NY supporting the veto due to potential increases in claim costs and insurance premiums. View on X
- @HCS_Homcrest (December 9, 2025): Gov. Hochul’s veto of S7001/A7616 will continue to delay payments and contracts for nonprofits, putting essential services like early childhood education and legal aid at risk. View on X
- @NYLSCoalition (December 9, 2025): Following Gov. Hochul’s veto of S7001/A7616, nonprofits face ongoing delays in receiving millions in payments, threatening vital services from cultural programming to legal support. View on X
- @NYLSCoalition (December 9, 2025): Essential nonprofit services, including early childhood education and cultural programs, remain at risk after Gov. Hochul’s veto of S7001/A7616, which would have addressed contracting delays. View on X
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