State Contractor Spyware (S.5398) | 2019

May 10th, 2019

AN ACT to amend the state finance law, in relation to utilizing software to verify hours worked on computers and billed to the government for certain contracts

S.5398 (Savino)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York, opposes this legislation.

This legislation would amend the state finance law to require contractors performing work for a state agency with the use of a computer to track such computer usage.

Under this proposal, state government contracts greater than $250,000 would be required to install and use third-party tracking software to verify hours worked and billed.  This software would allow for the recording of key strokes, track mouse activity and take screen shots at least every three minutes.

This legislation opens state contractors to significant security risks. Any data breach could expose sensitive and potentially proprietary information on a business, including items that have nothing to do with the performance of a state contract. That risk is increased by introducing a third party that is responsible for the installation of this software. Any security issues with the third party pose a potential risk to the state and the contractor.

This legislation also results in additional cost on any agency wishing to contract with the state require the purchase of Billing Verification Software. This burden will be felt most significantly by the state’s small businesses, who may not be able to incur this additional cost.

Lastly, this legislation represents a troubling precedent for government data collection. While we support the goal of ensuring business are properly preforming work on government contracts, the collection requirements put forward in this bill are a concerning step for all employers.

For these reasons, we oppose the enactment of this legislation.