BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                            Martha M. Escutia, Chair
                           2001-2002 Regular Session


          AB 2922                                                A
          Assembly Member Simitian                               B
          As Amended May 6, 2002
          Hearing Date:  June 18, 2002                           2
          Business and Professions Code                          9
          CJW                                                    2
                                                                 2

                                     SUBJECT
                                         
                  Personal Information:  State Agency Records

                                   DESCRIPTION  

          This bill would require the Office of Privacy Protection  
          (OPP) to create a State Personal Information Inventory for  
          access by the public, indicating the types of personal  
          information contained in each state agency's records, how  
          the state uses the information, and how individuals may  
          gain access to specific records in which they are  
          identified.

          The bill would require the OPP to provide state agencies  
          with a format for reporting on the categories of personal  
          information in their possession, and would require each  
          agency to provide that information to the OPP by a  
          specified date, and to provide annual updates regarding any  
          changes in the information.

                                    BACKGROUND  

          In 1977, the Legislature enacted the Information Practices  
          Act, declaring that the individual right to privacy was  
          threatened by "the indiscriminate collection, maintenance,  
          and dissemination of personal information."  The Act set  
          standards for government collection, retention, and  
          disclosure of information pertaining to individuals, and  
          established an Office of Information Practices, with which  
          state agencies were required to file annual notices  
          describing the types of records kept,  and their  
                                                                 
          (more)



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          collection, retention, disclosure, and protection policies  
          for records containing personal information.

          Although other provisions of the Act still control agency  
          practices regarding personal information, the provisions  
          establishing the Office of Information Practices and  
          requiring annual filings by state agencies were repealed in  
          1992.  
          (The 1992 statute repealed scores of laws in various state  
          codes without comment or explanation, which might imply a  
          budgetary rationale for the repeals, or at least a reason  
          unrelated to the merits of the laws themselves.)  

          This bill would establish a central repository for general  
          information regarding state government record retention,  
          including an annual state agency filing requirement similar  
          to the one that existed from 1977-92 under the Information  
          Practices Act.   The bill is modeled on a similar federal  
          statute, as well as on the former California law. 

                             CHANGES TO EXISTING LAW
           
           Existing law  , the Information Practices Act of 1977,  
          establishes standards for state agency collection,  
          retention, protection, and disclosure of records containing  
          personal information relating to individuals.  [Civ. Code  
          Sec. 1798.14  et   seq  .]

           Existing federal law  requires federal agencies to file  
          annual notices regarding their records containing personal  
          information (including categories of individuals on whom  
          records are kept, routine uses of the information,  
          retention, retrieval, and safeguarding policies, disclosure  
          policies, and access procedures), which are published in  
          the Federal Register.  [5 U.S.C. Sec. 552(a)].

           This bill  would declare the intent of the Legislature:

               to create a central catalogue that will allow the  
               public to observe the categories of personal  
               information that are collected by the state, how the  
               state uses that information, and the process by which  
               individuals may access specific records in which they  
               are identified.  This inventory is also intended to  
               help the state assess the appropriateness of the  
                                                                       




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               regulatory and statutory privacy protection measures  
               currently in place.

           This bill  would require the OPP to create the State  
          Personal Information Inventory, and to develop the format  
          for state agency filings for inclusion in the Inventory by  
          July 1, 2003.

           This bill  would require each state agency, using the format  
          provided by the OPP, to file with the OPP by January 1,  
          2004, a description of general categories or classes of  
          personal information contained in its system of records,  
          including but not limited to the system's name and  
          location; how to contact its record keeper; the categories  
          of individuals on whom records are kept; the sources of the  
          information in the records; the routine uses of the  
          records; and the circumstances under which the information  
          is disclosed to people outside the agency. 
           


          This bill  would require the OPP to make the Inventory  
          available to the general public by March 1, 2004.

           This bill  further would require each agency to provide  
          annual updates to the OPP regarding changes to the  
          information provided in their initial filings.

                                     COMMENT
           
          1.   Stated need for legislation  

            The author states:

               Given the public's increased concern about privacy and  
               identity theft, the California Legislature has begun  
               to ask questions about how personal information is  
               used, stored and shared.  Because the State itself is  
               a repository of personal information, it makes sense  
               to look at what information is collected by various  
               State agencies, whether that information is shared,  
               and if it is shared, under what conditions.

           2.   Compliance with similar inventories does not appear  
            unduly burdensome  
                                                                       




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            This bill would require the OPP to develop a "process and  
            format" for state agencies to use to describe the sorts  
            of records they keep, how they are used, stored,  
            protected, and disclosed, and how individuals might gain  
            access to records containing their personal information.   
            The information provided by the agencies would be  
            compiled in a "central catalogue" and made available to  
            the general public by March 1, 2004.

            The author has supplied an example of the format federal  
            agencies use to comply with the federal record inventory  
            law.  The example lists six "record systems" stored by  
            the federal Court Services and Offender Supervision  
            Agency, dealing with bail, drug testing, treatment,  
            probation/parole, employee payroll, and employee  
            attendance, respectively.  Each system inventory  
            describes the sorts of records kept, routine uses,  
            safeguarding and disclosure policies, and instructions on  
            how to gain access to one's personal records, in a manner  
            similar to that proposed by this bill.  Each of the six  
            inventories takes up less than one page of the Federal  
            Register.  

            In addition, the author has provided a copy of a  
            privately published state record inventory for the State  
            of Wisconsin.  Produced by the ACLU, the publication is  
            titled "Data Surveillance:  A Citizens' Guide to  
            Government Registries and Reporting Systems," and  
            contains a summary of state record retention and  
            disclosure practices, followed by a table of agencies and  
            their record categories.  The entire document (which  
            concludes that Wisconsin "has not become Big Brother in  
            the Orwellian sense") is 27 pages long.
           3.   Bill would seek information readily provided by state  
            agencies

             The types of information agencies would have to provide  
            under this bill's provisions should be easily prepared -  
            particularly as agencies complied with a similar mandate  
            from 1977 to 1992.  Other than summary descriptions of  
            "categories" of individuals on whom records are kept,  
            "routine use" of records, etc., the bill would require  
            agencies to state the sources of the information in their  
            records, which is information they already are required  
                                                                       




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            to maintain pursuant to the Information Practices Act.   
            [Civ. Code Sec. 1798.16.]

            Accordingly, the high cost projections for compliance  
            that have been made in some agency reviews of this bill  
            may represent misunderstandings of the bill's intent that  
            could be corrected with clarifying amendments.  The  
            Secretary of State's Office, for example, estimates that  
            it would require "660 staff years" to locate and index  
            every personal reference in its archives, although the  
            bill seems to require only general descriptions of  
            categories of records maintained on individuals - not the  
            cataloguing of every incidental personal reference made  
            in any document.

            Similarly, the Department of Finance estimates a  
            preliminary implementation cost of "$48,000 and .6  
            personnel years."  While this estimate is considerably  
            less hysterical than that of the Secretary of State's  
            Office, it seems to anticipate a level of effort that  
            would not appear intended by the bill.  

           4.   Suggested amendments
           
            To clarify that the information required to be provided  
            to the OPP would be general and categorical, rather than  
            specific or detailed, the author may wish to amend the  
            bill as follows:

            (1)  On page 2, lines 21-24:

                 The office, no later than July 1, 2003, shall  
               develop the process and format for the reporting of  
                personal information   categories of records maintained  
               on individuals  by state agencies, (etc.) 

            (2)  On page 3, lines 10-22:

               (2)  The categories of individuals on whom records are  
               maintained in the system  (for example, "agency  
               employees," "taxpayers," "holders of driver's  
               licenses," etc.)  .

               (3)  The categories of records maintained in the  
               system  (for example, "payroll records," "tax forms,"  
                                                                       




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               "vehicle code violation histories," etc.)  .

                                    .  .  .  .

               (6)  The categories of sources of records in the  
               system  (for example, "employee time cards,"  
               "taxpayers," "law enforcement records," etc.)  .
                 
               (7)  Whether the  categories of information contained   
                records  in the system are  personal information or  
               public information   open to public access or  
               restricted, and the nature of any restrictions  .

            The bill also would benefit from additional and clarified  
            definitions.  The term "personal information," which  
            under the 1977 law specifically  excluded  addresses and  
            telephone numbers as information that "could not, in any  
            reasonable way, be used to an individual's detriment,"  
            obviously needs an updated and expanded definition here.   
            Similarly, a definition of "record" would help agencies  
            exclude files and documents not specifically maintained  
            with reference to individuals.  The definitions suggested  
            below are updated versions of the definitions in the 1977  
            statute:  

            (3)  On page 3, line 24, after "in the system." insert:

                (b)  "Personal information" means any information  
               about an individual in any record, as defined,  
               including but not limited to identifying information  
               (such as name, address, telephone number, social  
               security number, or other identifying number or code);  
               education, financial, medical or employment history;  
               other employment data (such as payroll and attendance  
               records, retirement account information, or  
               disciplinary information); insurance information; real  
               estate records; business, professional, or driver's  
               license information; tax information; or criminal  
               history.
            
                  (c)  "Record" means any file or grouping of  
               information about an individual that is maintained by  
               an agency and that contains the individual's name,  
               identifying number, symbol, fingerprint, or other  
               means of identification assigned to the individual,  
                                                                       




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               and is maintained by reference to such a means of  
               identification.    
             
                (d)    As used in this section, a   "S  ystem of records  "   
               means  a group of any   one or more  records,  as defined,   
               under the control of an agency from which information  
               is retrieved by the name of an individual, by some  
               identifying number, symbol, or other identifying  
               designation assigned to an individual.




            Finally, the author may wish to clarify whether an annual  
            filing would be required only if the agency had changes  
            to report, or if a "no changes" notice would be required,  
            as follows:

            (4)  On page 3, line 35:

                (b)   (e)   Each state agency shall provide annual  
               updates, no later than January 1, to the Office of  
               Privacy Protection  regarding   specifying any  changes to  
               the information in subdivision (a  ), or indicating that  
               there have been no changes  .  



          Support:  ACLU; California Public Interest Research Group  
                 (CalPIRG); Privacy Rights Clearinghouse

          Opposition:  None Known

                                     HISTORY
           
          Source:  Author

          Related Pending Legislation:  None Known

           Prior Legislation:  SB 170 (Roberti), Ch. 709, Stats. of  
                        1977, established the Office of Information  
                        Practices within the State Personnel Board,  
                        which required state agencies to file annual  
                        notices describing the categories and uses of  
                        their records pertaining to individuals (the  
                                                                       




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                        office was dissolved in 1992)

          Prior Vote:  Assembly Jobs, Economic Development, and  
          Economy Committee 6-5
                        Assembly Appropriations Committee 16-5
                        Assembly Floor 50-25

          
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