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Hi Kim,
What you are concerned with here are seperate issues of an individual's right to privacy and the right to publicity. Unlike copyright law, neither privacy or publicity rights are subjects of federal law. My understanding is that both of these rights are regulated by state law. "Privacy" issues involve situations where a subject may or may not be placed in the public eye without consent; "publicity" issues involve situations where a subject's image may or may not be exploited without consent and/or compensation.
This is not legal advice from me, but if I were you I would research state regulations, laws and case law involving privacy and publicity issues. You might just call somebody in the state legal department and see if they are willing to chat with you off the cuff. [A 'copyright issue' involves your own creation (the photograph, your painting, etc.).]
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