BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  June 13, 2006

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Dave Jones, Chair
                   SB 1078 (Simitian) - As Amended:  April 6, 2006

           SENATE VOTE :   Vote not relevant
           
          SUBJECT  :   Pupil attendance: electronic monitoring 

           KEY ISSUES  :  

          1)Should public schools be prohibited from using RAdio frequency  
            identification (RFID) technology to monitor student's  
            movements and record attendance?

          2)SHOULD THIS BILL INCLUDE A SUNSET PROVISION? 

                                      SYNOPSIS
          
          This bill is one of three sponsored by the author that deals  
          with limiting the use of RFID devices in government-issued  
          documents.  SB 1078, however, was spawned by revelations that a  
          school in Sutter, California, forced students to wear RFID  
          devices in order to monitor student movements on campus and  
          record attendance.  According to the author, forcing students to  
          wear RFID intrudes upon the privacy rights of students and  
          parents, subjects students to potential stalking, and increases  
          the threat of identity theft.  Whatever small gains are to be  
          had from the use of this technology is offset by the troubling  
          message that we send to students when we tag them "like sheep."   
          Opponents of this bill - mostly representatives of the high tech  
          industry - claim that the author and sponsor overstate the  
          threats to privacy and too readily dismisses its benefits to  
          both schools and students.  The analysis recommends  
          consideration of a sunset so the Legislature can revisit this  
          issue in the future.

           SUMMARY  :   Prohibits the use of student-issued RFID (radio  
          frequency identification) devices to monitor students or record  
          student attendance in public schools.  Specifically,  this bill  :

          1)Prohibits a public school, school district, or county office  
            of education from using any device that uses radio waives  
            either to transmit personal information remotely or to enable  








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            personal information to be read remotely for the purposes of  
            recording attendance or establishing or tracking the location  
            of a pupil on school grounds. 

          2)Defines "personal information" to mean any of the following:  
            the name, address, telephone number, e-mail address, date of  
            birth, religion, ethnicity, photograph, fingerprint or other  
            biometric identifier, school identification number, California  
            Identification Card number, social security, or any other  
            unique identifier of the pupil. 

           EXISTING LAW:

           1)Requires school officials to require attendance in all schools  
            and classes and to record student attendance in a manner  
            prescribed by the State Board of Education.

          2)Provides that no agency may disclose personal information in a  
            manner that would link the information disclosed to the  
            individual to whom it pertains, subject to certain exceptions.  
             Further provides that each agency shall keep an accurate  
            accounting of the date, nature, and purpose of each disclosure  
            made pursuant to one of the authorized exceptions.  (Civil  
            Code sections 1798.24 and 1798.25.) 

          3)Grants to all persons within this state a constitutional right  
            to privacy, and provides that government may not intrude upon  
            this privacy unless (a) it is necessary to further a  
            compelling state interest and (b) there is no feasible and  
            effective alternative that would have a lesser impact on  
            privacy interests.  (Cal. Const., Art. I, Sec. 1; Academy of  
            Pediatrics v. Lungren (1997) 16 Cal. 4th 307.)

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :   According to the author, the use of RFID technology  
          to monitor students' movements on campus and record attendance  
          violates the privacy rights of students and parents alike, and  
          it sends the wrong message to our children.  This bill grew out  
          revelations last year that a public school in the small town of  
          Sutter, California, required students in its K-8 school to wear  
          badges that used radio frequency identification (RFID)  
          technology to monitor students' movements and record attendance.  
           Although all students in all grades wore the badges, the  








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          devices were mainly used to track junior high students as they  
          moved from class-to-class during the school day.  The badges  
          contained an RFID "tag" that could be read by remote "readers"  
          positioned throughout the school, but in particular in doorways  
          to record students as they walked in and out of the classrooms.   
          A local company that manufactured RFID technology provided the  
          technology to the school.  Not only did the company provide the  
          badges and reading equipment free of charge, it made a donation  
          to the school.  

          The experiment went sour when outraged parents organized a  
          protest and demanded an explanation from the school.  Not only  
          were the students compelled to wear the RFID devices under  
          threat of suspension, the school never notified the parents  
          about the experiment with their children until one parent  
          learned of the policy from her 13-year old daughter.  School  
          officials told the parents the school benefited from the  
          donations provided by the company.  In addition, using RFID to  
          record student attendance in each class saved teachers time at  
          the beginning of each class period usually devoted to taking  
          roll.  Parents continued their protest.  When a number of  
          newspapers began to cover the protest, the company pulled the  
          plug on the experiment.  (See e.g., Town Gives Brave New World  
          an F, Los Angeles Times, Feb. 22, 2005; Firm Cancels ID Deal,  
          San Jose Mercury News, Feb. 17, 2005; School First in State to  
          Track Students with Radio ID Tags, Id. Feb. 9, 2005.)

          SB 1078 would prevent the use of RFID technology for purposes of  
          taking attendance or otherwise monitoring the students'  
          whereabouts on campus.  It would not prohibit the use of RFID  
          technology for other purposes, such as inventory management. 

           Background: What is RFID and How Does it Work  ?   Despite the  
          often jargon-laden language used by both proponents and  
          opponents, the basic outline of how RIFD technology works is  
          fairly easy to understand.  RFID "tags" can be embedded into  
          objects, including documents, clothing, and even people.  The  
          tag consists of a microchip (that stores information) and one or  
          more antennae.  Remote "readers" can then read this tag, via  
          radio waves.  The reader constantly emits radio signals.  As a  
          person or object with an RFID tag moves near the reader - the  
          distance varies depending upon the device - the antennae pick up  
          the signal and transmit the information stored on the microchip  
          to the reader.  (Some RFID tags are "passive," which means that  
          they can only be activated by the radio signal; others are  








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          "active," which means that they can actively search out readers  
          in the area.)  The reader then typically transmits this  
          information to a computer database. 

          In some ways, RFID technology is merely a higher-tech version of  
          bar code and magnetic strip scanning.  However, scanning  
          typically requires direct contact between the scanner and the  
          stored information (or at least the magnetic strip or barcode  
          must be in the direct line of sight of a laser.)  RFID readers,  
          on the other hand, can read the information stored on the RFID  
          tag remotely, through the use of radio waves.  With existing  
          technology, the reader's capacity may range from an inch up to  
          several feet.  Experts disagree on the potential range of RFID  
          readers in the future, but most agree that the current  
          technology allows maximum range of up to as much as thirty feet.  


          A key issue that divides experts on both sides of the debate,  
          however, concerns the nature of the information stored on the  
          RFID tag, and the usefulness of that information to any  
          unauthorized reader.  Sometimes an RFID tag only contains a  
          random number that has no meaning until it is transmitted by the  
          reader to a computer database, where the random number is then  
          matched to other identifiers.  However, in some cases RFID tags  
          apparently contain other information, such as a name, address,  
          social security number, or bank account number.  Experts on both  
          sides of the debate disagree about the value of "encryption" or  
          other security measures that make stored information  
          intelligible only to authorized readers.  Moreover, privacy  
          advocates point out that security measures must address more  
          than the ability of the reader to access intelligible  
          information for the tag; they must also address potential  
          security breaches along the entire transmission process from  
          tag, to reader, to computer database.  Proponents of RFID, on  
          the other hand, claim that RFID applications are confined to a  
          closed system of authorized tags, readers, and databases within  
          that system.  So that even if outsiders with remote readers  
          obtained information from an RFID tag, that information is only  
          intelligible to persons within the system.  

          (The above summary of RFID technology, and the contours of the  
          debate privacy and security issues, is based, in part, on a host  
          of documents representing the opinions of privacy rights and  
          consumer groups, industry representatives, and government  
          agencies.  See for example  








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           www.privacyrights.org/are/RFIDposition.htm  .) 

           RFID and Legitimate Privacy Concerns  :  Proponents of RFID  
          technology claim that privacy advocates and consumer rights  
          groups have portrayed the threat to privacy in exaggerated, and  
          even Orwellian terms.  This may or may not be so.  But policy  
          advocates and consumer rights groups are not the only ones who  
          have expressed serious concerns about the impact of RFID on  
          privacy.  The U.S. Department of Homeland Security - certainly  
          not generally considered a member of the privacy rights camp -  
          recently issued a report that was highly critical of using RFID  
          for purposes of human identification and tracking.  The report  
          admitted the very promising applications of RFID in inventory  
          management - both for private commercial purposes and public  
          procurement purposes.  It also noted possible human  
          applications, such as the use of RFID to determine the movement  
          of miners trapped underground or firefighters trapped in a  
          burning building.  "But for other applications related to human  
          beings," the DHS report concluded, "RFID appears to offer little  
          benefit when compared to the consequences it brings for privacy  
          and data integrity."  (DHS, The Use of RFID for Human  
          Identification, supra 2.)  

          The DHS report noted that, because RFID tags can be read  
          remotely, they could transmit personal information without  
          giving any notice to the subjects of RFID identification.  In  
          addition, even if people know that their RFID tag is being read,  
          they will not know precisely what information is being  
          broadcast.  (Id. at 8.)  As such, the DHS unequivocally  
          recommended, "RFID should be disfavored for human tracking.  The  
          case for using RFID to track materiel has been made fairly well  
          . . . We are not aware of a similarly strong case for using RFID  
          to track humans."  Offsetting any "small incremental benefits,"  
          the report concluded, "are arrayed a large number of privacy  
          concerns."  (Id. at 10-11.)  Similarly, the U.S. Government  
          Accounting Office concluded in its report on RFID that "Without  
          effective security controls, data on the tag can be read by any  
          compliant reader; data transmitted through the air can be  
          intercepted and read by unauthorized devices; and data stored in  
          the databases can be accessed by unauthorized users."  (U.S.  
          Government Accounting Office, Information Security: Radio  
          Frequency Identification Technology in the Federal Government,  
          GAO Report 05-551 (May 2005), available at  
           http://www.gao.gov/new.itmes/d)5551.pdf  .)
           








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           ARGUMENTS IN SUPPORT  :  According to the author, this bill is  
          needed because "students who go to school should not be forced  
          to be tagged and tracked like cattle."  In addition to  
          infringing upon the privacy rights of students and the parents,  
          experiments like those conducted in Sutter could threaten  
          students' privacy and safety off campus as well.  The author  
          claims that, absent significant protections, RFID tags would  
          make students vulnerable to tracking and stalking off-campus.   
          Furthermore, school-issued RFID tags could be "easily cloned,  
          allowing others to pose as them or steal their identity."   

          In addition, the author contends, "when it comes to student  
          safety, RFID is no substitute for teacher and school staff  
          responsibility."  RFID could create a false sense of security,  
          making teachers and school staff less vigilant in their own  
          responsibility to keep track of the children under their charge.  
           Students could easily figure out ways to subvert the system,  
          such as giving the tag to friends to carry for them.  Also,  
          because RFID technology may be prone to errors, the attendance  
          data that schools are required to report to the state could be  
          misleading, affecting the funding that the state owes to a  
          particular school district.

          The California Federation of Teachers argues that "tracking and  
          monitoring students by RFID chips threatens to erode the  
          autonomy our children our supposed to be learning in schools.   
          In addition, recent government reports indicate that RFID  
          devices are unreliable for identifying individuals absent other  
          measures.  In schools, these devices could be traded, lost, or  
          stolen."  The Consumer Federation of California also fears that  
          students will learn the wrong lessons if forced to wear RFID  
          tags.  The California Commission on the Status of Women adds  
          that RFID tags will pose "a heightened risk for California girls  
          who are more often victims of sexual assault and stalking."  

           ARGUMENTS IN OPPOSITION  :  Although the opponents of this bill  
          had not submitted letters on the measure to the Committee at the  
          time of this writing, their past correspondence on prior related  
          bills and direct communications could be summarized as follows:

          In general, opponents of the bill, and in particular the High  
          Tech Consortium, contend that RFID is "safe, efficient, and cost  
          effective and enhances the safety and security for users in the  
          State of California."  Technology companies who produce RFID  
          chips claim that they have an interest in ensuring customers  








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          that their privacy will not be breached, and they "work very  
          hard to enable [their] customers to protect individual  
          information from inappropriate use."  HID Corporation and Indala  
          Corporation, writing in opposition to last year's SB 682  
          (Simitian) claims that "There continues to be many  
          misconceptions and fears about RFID technology, which simply  
          cannot be substantiated?HID Corp. has over 4 million passive RF  
          cards in California alone, and never has there been a case of  
          somebody being tracked."  

          According to a communication from the High Tech Consortium, many  
          of the fears growing out of the Sutter school case illustrate  
          the tendency to exaggerate in light of the particulars of that  
          case.  First, while the author and sponsor raise the specter of  
          "stalking" students beyond the school grounds, the students  
          never took the RFID tags off campus.  The only persons who could  
          come close enough to the students with an unauthorized reader  
          would be persons who were already authorized to be on campus.   
          InCom Corporation, a California hi tech start up company, also  
          in opposition, states that "RFID attendance systems are designed  
          to be used only on school grounds and the tags are designed so  
          they cannot be read from any great distance. Students pick up  
          their IDs when they come to school and leave them in their  
          lockers when they leave." 

          Second, according to the High Tech Consortium, even if someone  
          were to get close enough to the student to read the tag, that  
          person would only read a random number.  Under the system in  
          place in Sutter, the reader sent the random number to the  
          school's computer database.  The school then sent the teacher,  
          not the reader, the name of the student for purposes of  
          recording attendance.  The computer database would have no  
          capacity to send information back to the reader.  

          According to the High Tech Consortium, use of RFID tags in this  
          very limited way provides for a more efficient method of  
          recording student attendance and monitoring the student's  
          whereabouts.  Less time devoted to taking roll means more time  
          devoted to teaching.  InCom Corporation notes that "Randy Page,  
          Director of the Tri Counties (ROP), states that ROP programs are  
          funded according to each minute a student is in class, and so  
          ROP teachers are forced to take attendance many times during  
          class, instead of teaching, in order to secure funding.   
          Director Page states that RFID attendance systems save huge  
          amounts of time for ROP teachers, freeing them up to teach."








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          Furthermore, the High Tech Consortium states that the use of  
          RFID might actually help to guard against stalking or  
          abductions.  For example, if a student is missing, the RFID  
          technology could help school officials reconstruct the student's  
          movement on campus, which could provide helpful evidence in  
          determining what had happened to the child.  InCom Corporation  
          notes that "RFID attendance systems give schools the power to  
          inform parents within minutes of the start of school if a child  
          didn't make it to class."

           Conclusion  :  The debate over the potential benefits and dangers  
          of RFID technology, both in California and throughout the  
          nation, display a great deal of disagreement over the critical  
          questions of privacy and security.  Nonetheless, there are a few  
          areas of consensus.  For example, both supporters and opponents  
          of this bill generally agree that there are many useful and very  
          promising uses of RFID.  Disagreements quickly arise, however,  
          when RFID is used to store personal information or track human  
          movements.  The concerns seem even greater when it comes to  
          tagging our children, for this implicates not only the child's  
          privacy rights, but also the equally fundamental child-rearing  
          rights of parents.  Placing RFID tags on pallets destined for  
          Wal-Mart is one thing; forcing our children to wear them is  
          something else entirely.  For the parents in Sutter, the few  
          minutes saved by eliminating roll taking was not worth the  
          price.  Without recourse to formal legal or policy arguments,  
          one parent at the Sutter school put it aptly and prosaically:  
          "It's creepy."  

           The Committee May Wish to Consider a Three-Year Sunset Provision  
          For This Bill  :  In light of the legislative history of this bill  
          and the extensive discussions that have already taken place  
          between the supporters and opponents, the Committee may conclude  
          it is appropriate to amend the bill to include a three-year  
          sunset provision.  Last year's SB 682 (Simitian), for example,  
          called for greater security measures for all government-issued  
          documents containing RFID and a three-year moratorium in four  
          specific areas: driver's licenses, public schools, public  
          libraries, and government-issued health benefit cards.  In  
          response to SB 682, the industry sponsored AB 2561 (Torrico),  
          which calls for a study on existing security standards related  
          to RFID use.  An amended version of that bill recently passed in  
          the Assembly with a provision stipulating that nothing in the  
          bill would be construed to suggest that the Legislature must  








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          await the study's final report before taking action.  In short,  
          AB 2561 assumed that the Legislature would need to enact interim  
          standards for RFID use pending receipt of the report, at which  
          time the Legislature could revisit the issue if necessary.  It  
          would seem fully consistent, with the intent of both SB 682 and  
          AB 2561, to impose a three-year sunset on this bill. 
           
           Recent Related Legislation  :  SB 682 (Simitian) - 2005: Would  
          require a 3-year timeout for the use of RFID in four kinds of  
          government IDs.  Would require various security and privacy  
          protections for other government IDs that use RFID.  Assembly  
          Appropriations Committee (suspense file).

          SB 768 (Simitian) - 2005/2006: Would require a 3-year timeout  
          for the use of RFID in four kinds of government IDs.  Would  
          require various security and privacy protections for other  
          government IDs that use RFID.   Assembly Floor.

          SB 433 (Simitian) - 2006: Would prohibit the use of RFID devices  
          in driver's license and identification cards issued by the DMV.   
          Being heard in Assembly Judiciary Committee.

          SB 1834 (Bowen) - 2004: Would prohibit companies and libraries  
          from using RFID in order to gather, store, or share  
          personally-identifiable information.  Assembly Business and  
          Professions Committee (failed passage).

          AB 2561 (Torrico) - 2006 (previously analyzed by the Assembly  
          Judiciary Committee): Would request the California Research  
          Bureau to conduct a study.  Passed off Assembly Floor.

           REGISTERED SUPPORT/OPPOSTION  :

           Support 
           
          ACLU (co-sponsor)
          Electronic Frontier Foundation (co-sponsor)
          Privacy Rights Clearing House (co-sponsor)
          California Commission on the Status of Women 
          California Federation of Teachers
          Consumer Federation of America
           
           
           Opposition 
           








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          Hi-Tech Trust Coalition
          InCom Corporation


           Analysis Prepared by  :  Thomas Clark / JUD. / (916) 319-2334