BILL ANALYSIS SENATE JUDICIARY COMMITTEE Senator Ellen M. Corbett, Chair 2009-2010 Regular Session AB 524 Speaker Bass As Amended June 29, 2009 Hearing Date: July 14, 2009 Civil Code KB:jd SUBJECT Privacy DESCRIPTION This bill would amend existing law so that a person who sells, transmits, publishes, or broadcasts an image, recording, or physical impression of someone engaged in a personal or familial activity violates the state's "invasion of privacy" statute if that person has actual knowledge that the image, recording, or impression was unlawfully obtained, and provided compensation, consideration, or remuneration, monetary or otherwise, for the use of, or rights to, the unlawfully obtained images or recordings. This bill would also provide that a person who violates the statute, or who directs, solicits, actually induces, or actually causes another person to violate any of those provisions would be subject to a civil fine of not less than $5,000 and not more than $50,000. This bill would further authorize a county counsel or a city attorney to bring a civil action in the name of the people whenever that attorney has reasonable cause to believe that a violation of these provisions has occurred, and specify the allocation of the recovered fines. BACKGROUND In 1998, in response to the tragic death of Princess Diana, California became the first state in the nation to pass legislation to attempt to rein in overzealous and aggressive photographers and reporters, known as "paparazzi." In order to supplement the common law tort of invasion of privacy, the (more) AB 524 (Bass) Page 2 of ? Legislature created a statutory cause of action for "invasion of privacy" that imposes liability on any person who: (1) intrudes upon the private space of another person; (2) in order to capture images or recordings of that person engaging in a personal or familial activity, (3) in a manner that is offensive to a reasonable person. (Civ. Code Sec. 1708.8; SB 262 (Burton, Chapter 1000, Statutes of 1998).) The statute was subsequently amended in 2005 to additionally provide that assault committed with intent to photograph or record a person is subject to the same remedies available for physical or constructive invasion of privacy. (AB 381 (Montanez, Chapter 424, Statutes of 2005).) Despite the enactment of these statutory remedies, there continue to be a flurry of news reports on the increasing tension between celebrities and photographers, which at times have escalated to the point of physical confrontations. Defenders of the paparazzi allege that the problem is not the paparazzi, but rather the public's appetite to learn about even the most mundane details of the celebrities' lives. Some also assert that celebrities themselves want the best of both worlds, seeking out the cameras when they want to bask in the limelight, and smashing those same cameras on the ground when they find them annoying. This bill seeks to increase privacy protections for individuals by broadening the reach of the state's "invasion of privacy" statute, imposing civil fines for violations, and authorizing city attorneys and county counsels to bring actions under the statute. CHANGES TO EXISTING LAW Existing common law recognizes four distinct categories of the tort of "invasion of privacy:" (a) intrusion upon a plaintiff's seclusion or solitude; (b) public disclosure of private facts; (c) publicity that places the plaintiff in a "false light;" and (d) appropriation of a plaintiff's likeness or image for the defendant's advantage. (Turnbull v. American Broadcasting Companies, (2004) 32 Media L. Rep. 2442.) Existing law makes a person liable for "physical invasion of privacy" for knowingly entering onto the land of another person or otherwise committing a trespass in order to physically invade the privacy of another person with the intent to capture any type of visual image, sound recording, or other physical impression of that person engaging in a personal or familial AB 524 (Bass) Page 3 of ? activity, and the physical invasion occurs in a manner that is offensive to a reasonable person. (Civ. Code Sec. 1708.8 (a).) Existing law makes a person liable for "constructive invasion of privacy" for attempting to capture, in a manner highly offensive to a reasonable person, any type of visual image, sound recording, or other physical impression of another person engaging in a personal or familial activity under circumstances in which the plaintiff had a reasonable expectation of privacy, through the use of a visual or auditory enhancing device, regardless of whether there was a physical trespass, if the image or recording could not have been achieved without a trespass unless the visual or auditory enhancing device was used. (Civ. Code Sec. 1708.8 (b).) Existing law defines "personal or familial activity" as including, but not limited to, intimate details of the plaintiff's personal life, interactions with family or significant others, or other aspects of the plaintiff's private affairs or concerns. (Civ. Code Sec. 1708.8 (l).) Existing law provides that the sale, transmission, publication, broadcast, or use of any image or recording shall not itself constitute a violation of the statute, but neither shall anything in the statute be construed to limit any other rights or remedies that a plaintiff may have in law and equity. (Civ. Code Sec. 1708.8 (f).) Existing law provides that an assault committed with the intent to capture any type of visual image, sound recording, or other physical impression is subject to enhanced statutory penalties and remedies prescribed. (Civ. Code Sec. 1708.8 (c).) Existing law provides that a person who violates the statute for a commercial purpose shall, in addition to any other damages or remedies provided, be subject to disgorgement to the plaintiff of any proceeds or other consideration obtained as a result of the violation of this section. Existing law defines "commercial purpose" to mean any act done with the expectation of sale, financial gain, or other consideration. (Civ. Code Sec. 1708.8 (d), (k).) Existing law provides that a person who directs, solicits, actually induces, or actually causes another person, regardless of whether there is an employer-employee relationship, to commit a violation of the statute, is liable for any general, special, AB 524 (Bass) Page 4 of ? and consequential damages resulting from each violation. (Civ. Code Sec. 1708.8 (e).) Existing law generally exempts from the statute any lawful activities of law enforcement personnel or employees of governmental agencies or other entities, either public or private who, in the course and scope of their employment, and supported by articuable suspicion, attempt to capture any type of visual image, sound recording, or other physical impression as part of an investigation, surveillance, or monitoring of any conduct in order to obtain evidence of suspected unlawful or fraudulent activity or any pattern of practices that affect public health and safety. (Civ. Code Sec. 1708.8 (g).) This bill would provides that the sale, transmission, broadcast, or use of any image or recording that was obtained in violation of California's existing invasion of privacy statute, relating to unreasonable and offensive intrusions into personal and familial matters, constitutes a violation of the statute if the person selling, transmitting, broadcasting, or using the image or recording has actual knowledge the images or recordings were obtained illegally, and provided compensation, consideration, or remuneration, monetary or otherwise, for the use of, or rights to, the unlawfully obtained images or recordings. This bill would provide that a person who violates the "invasion of privacy" statute provisions described above, or who directs, solicits, actually induces, or actually causes another person to violate any of those provisions would be subject to a civil fine of not less than $5,000 and not more than $50,000. This bill would authorize a county counsel or a city attorney to bring a civil action in the name of the people whenever that attorney has reasonable cause to believe that a violation of the "invasion of privacy" statute has occurred. This bill would specify the allocation of the fines collected pursuant to the foregoing provision, including 1/3 to the prosecuting agency and 1/3 to the victim or the victim's designated recipient. This bill would also establish the Arts and Entertainment Fund in the State Treasury for the deposit of 1/3 of the fines, for expenditure by the California Arts Council, upon appropriation by the Legislature, as specified. This bill would make legislative findings and declarations as to the problem of photographers, videographers, and audio recorders AB 524 (Bass) Page 5 of ? harassing, invading the privacy interest, and physically endangering individuals and their families in order to capture images and recordings for commercial purposes. This bill would find and declare further that the right of a free press to report details of an individual's private life must be weighed against the rights of the individual to enjoy liberty and privacy. COMMENT 1.Stated need for the bill According to the author, the conduct of the paparazzi too often goes way beyond reasonable efforts to take pictures of celebrities in public places, to include intrusive and sometimes highly offensive harassment that not only invades personal and familial privacy but, at times, seriously endangers the public at large. This bill seeks to deter invasive paparazzi conduct by attaching liability to publishers who use paparazzi, thereby removing the financial incentive for paparazzi to continue pursuing and photographing celebrities. 1.Balancing the First Amendment and the Right to Privacy This bill invokes one of the most complex areas of constitutional law: the balance between an individual's right to privacy, and the First Amendment's protection of truthful publications of matters of public concern. For those of us who live our lives in relative obscurity, the details of our private lives rarely, if ever, become matters of public concern. But when persons voluntarily interject themselves into the public arena - whether as politicians, movie stars, or professional athletes - the line between what is private and what is a matter of public concern can become increasingly blurred. Government power to protect the privacy interests of citizens by penalizing publication or authorizing causes of action for publication typically is found to implicate First Amendment rights directly. (See e.g. William Prosser, Law of Torts 117 4th ed. 1971.) The United States Supreme Court has held that civil liability for speech, even in the context of private civil litigation, is an interference with free speech and must meet First Amendment scrutiny. (See New York Times v. Sullivan, (1964) 376 U.S. 254, 277 ("What a State may not constitutionally bring about by means AB 524 (Bass) Page 6 of ? of a criminal statute is likewise beyond the reach of its civil law ? The fear of damage awards ? may be markedly more inhibiting than the fear of prosecution under a criminal statute. ").) Thus, liability for common law torts such as invasion of privacy must be consistent with First Amendment standards. (See Florida Star v. B.J.F., (1989) 491 U.S. 524 (holding that where a newspaper publishes truthful information which it has lawfully obtained, punishment may lawfully be imposed, if at all, only when narrowly tailored to a state interest of the highest order).) The issue presented by AB 524 is whether the state can "punish" the publisher of images or recordings that were unlawfully obtained by another party when the publisher (1) knew the material was unlawfully obtained and (2) paid money or other compensation, for the use of, or rights to, the images or recording. Out of the substantial body of caselaw that has been generated by the tension between privacy and First Amendment rights, there is no decision which directly addresses this issue. However, two cases in particular, which are discussed below, provide some guidance in determining the appropriate parameters of the state's power in this instance to protect its citizens' privacy rights. a) Shulman v. Group W. Productions (1998) 18 Cal.4th 200 In Shulman, the defendants filmed the rescue of Ruth Shulman, who had been seriously injured when her car overturned. The film crew then equipped a nurse on board a rescue helicopter with a microphone, recording her conversation with the patient while en route to the hospital. The film and recordings were later broadcast as a nine-minute segment on a documentary television show called "On Scene: Emergency Response." Ms. Shulman sued the producers of the TV show alleging both (1) an invasion of privacy based on "intrusion" (the filming and recording), and (2) public disclosure of private facts, for the subsequent broadcast. As to the first cause of action, the California Supreme Court noted that the action for intrusion has two elements: (1) intrusion into a private place, conversation, or matter; (2) in a manner highly offensive to a reasonable person. (Id. at 231.) In reaching its conclusion, the Court noted that "all the circumstances of an intrusion, including the motives or justification of the intruder, are pertinent to the offensiveness element." (Id. at 236.) The Court held that AB 524 (Bass) Page 7 of ? the accident victim had a reasonable expectation of privacy in communications once inside the rescue helicopter. The Court further found that a jury could find that the filming, and especially the recording while on the helicopter, was "highly offensive to a reasonable person," and therefore overturned the trial court's summary judgment in favor of the defendants. With respect to the second cause of action, the issue before the Court was whether "the facts disclosed about a private person involuntarily caught up in events of public interest bear a logical relationship to the newsworthy subject of the broadcast and are not intrusive in great disproportion to their relevance." (Id. at 215.) The Court stated: First, the analysis of newsworthiness does involve courts to some degree in a normative assessment of the "social value" of a publication. All material that might attract readers is not, simply by virtue of its attractiveness, of legitimate public interest. Second, the evaluation of newsworthiness depends on the degree of intrusion and the extent to which the plaintiff played an important role in public events and thus on a comparison between the information revealed and the nature of the activity or event that brought the plaintiff to public attention. "Some reasonable proportion is ? to be maintained between the events or activity that makes the individual a public figure and the private facts to which publicity is given." (Id. at 222 (citations omitted).) After determining that the accident and medical treatment were newsworthy, the Court found that Ms. Shulman's appearance and communication were substantially relevant to the broadcast, which was, as a matter of law, of legitimate public concern. Thus, the Court appeared to find in the Shulman case the state can constitutionally punish acts of newsgathering as intrusions upon privacy without offending the First Amendment, depending upon the degree of offensiveness of the newsgathering technique and the newsworthiness of the subject matter. However, as to the broadcasting of the incident, the Court found that the details of the rescue were, as a matter of law, of legitimate public concern and substantially related to the newsworthy subject of the piece. AB 524 (Bass) Page 8 of ? b) Bartnicki v. Vopper (2001) 532 U.S. 514 In Bartnicki, the United States Supreme Court considered for the first time liability for invasion of privacy when the information was illegally obtained from private sources. Bartnicki involved review of a provision of the federal Omnibus Crime Control Act of 1986, which made it a crime to intentionally intercept any wire, oral, or electronic communication without consent of all the parties involved in the communication. The same statute made it unlawful to intentionally disclose the contents of such a communication if the person disclosing it "knew or had reason to know" that the information had been illegally obtained. An unknown person intercepted a cell phone conversation between a union organizer and the president of a teacher's union concerning ongoing negotiations with a local school board. During the course of this unlawfully intercepted conversation, one of the parties suggested that if some of the board members did not change their intransigent stance, then they might have to "blow off the porches" of some of their homes. A tape of the phone conversation found its way to a local radio station that played it twice on the air. When the case reached the Court the parties had stipulated to a number of key issues: (1) that the conversation had been unlawfully obtained; (2) that the radio station played no role in obtaining the recording but did know, or had reason to know, that it had been unlawfully obtained; and (3) that the federal law was a "content neutral" law of general applicability. Thus, the question before the Court was not whether the statute was facially invalid, but whether it was invalidly applied. The majority held that the application of the statute as applied in this case violated the First Amendment. The Court focused on several factors in concluding that the radio program's broadcasts were protected by the First Amendment, even though it knew the recording was unlawfully obtained: (1) it involved a matter of obvious public concern; (2) the radio program had played no role in obtaining the information and had done nothing to encourage the obtaining of the information; and (3) the radio station had itself obtained the information lawfully. "In this case, privacy concerns give way when balanced against the interest in publishing matters of public importance ? The right of privacy does not prohibit any publication of matter which is of public or general AB 524 (Bass) Page 9 of ? interest ? One of the costs associated with participation in public affairs is an attendant loss of privacy." (Id. at 534 (citations omitted).) In addition, the Court rejected the government's claim in support of applying the statute that the government had an interest in deterring illegal activity. The Court found the deterrence argument to be weak, concluding that "[t]he normal method of deterring unlawful conduct is to impose an appropriate punishment on the person who engages in it. If the sanctions that presently attach to a violation ? do not provide sufficient deterrence, perhaps those sanctions should be made more severe. But it would be quite remarkable to hold that speech by a law-abiding possessor of information can be suppressed in order to deter conduct by a non-law-abiding third party." (Id. at 530.) It is important to note that the Court repeatedly emphasized the narrowness of the court's holding as applied directly to the facts before it, and expressly disavowed articulating any broad principles to resolve the complex competing interests at stake. The holdings in Shulman and Bartnicki - although each limited to the narrow facts before their respective Courts - establish several key points relevant to a constitutional analysis of this bill as it proposes to amend existing law: (1) that unlawful actions do not implicate the First Amendment since they are not forms of speech or expression; (2) that publication of even unlawfully obtained information implicates the First Amendment; but (3) that laws that prohibit the disclosure of unlawfully obtained information, where the one disclosing knows or has reason to know that it was unlawfully obtained, are not necessarily facially unconstitutional, but may be found to be unconstitutional as applied, especially where the information is of a matter of genuine public concern. 1. AB 524 and First Amendment implications As demonstrated by the Shulman and Bartnicki decisions, in balancing competing privacy and First Amendment interests, courts will look to the entire facts of each case, including the circumstances of the type and degree of intrusion into a person's privacy, and whether or not the information at issue is AB 524 (Bass) Page 10 of ? a newsworthy matter of public concern. Unlawful newsgathering is not protected by the First Amendment, but truthful publication of information, even if unlawfully obtained, does implicate the First Amendment. In its existing form, Civil Code Section 1708.8 punishes the intrusion of privacy in an attempt to capture images and recordings, but expressly states that the publishing or broadcasting of such information is not a violation of the statute. Section 1708.8 has been applied in a number of cases, some of which involve the media. (See Turnbull v. American Broadcasting Companies (2004) 32 Media L. Rep. 2442 (a television producer who attended a private acting workshop undercover might be liable under Section 1708.8 because she: (1) did not have permission to attend as a reporter and may have trespassed; (2) surreptitiously recorded personal conversations; and (3) did so in a manner that was offensive to a reasonable person).) AB 524 would amend existing law to provide that publishing or broadcasting unlawfully obtained images or recording violates the invasion of privacy statute if the publisher or broadcaster (1) has actual knowledge that the image, recording, or impression was unlawfully obtained, and (2) provided compensation, consideration, or remuneration, monetary or otherwise, for the use of, or rights to, the unlawfully obtained images or recordings. The first provision of AB 524 appears similar to the federal statute in the Bartnicki case, except that this bill adopts a higher standard of "actual knowledge" that the material was obtained unlawfully (as opposed to "knew or should have known"). However, this bill adds an additional element, which conditions the violation on the payment of money or other compensation for the rights to the images or recordings. This is presumably intended to deter the purchase of unlawfully obtained images, thereby removing the paparazzi's financial incentives to intrude into the private lives of celebrities. Under existing law, a person who violates the "invasion of privacy" statute is liable for up to three times the amount of general and special damages, and may be liable for punitive damages. If the plaintiff proves that the invasion of privacy was committed for a commercial purpose, the defendant is also subject to disgorgement to the plaintiff of any proceeds or other consideration obtained as a result of the violation. This bill would further provide that a person who violates the AB 524 (Bass) Page 11 of ? statute is also subject to a civil fine of not less than $5,000 and not more than $50,000. This bill would additionally authorize a county counsel or a city attorney to bring a civil action in the name of the people to obtain any or all appropriate relief whenever that attorney has reasonable cause to believe that a violation has occurred. Fines collected by the county counsel or city attorney would be allocated as follows: one-third to the prosecuting agency, one-third to the victim or the victim's designated recipient, and one-third to the Arts and Entertainment Fund in the State Treasury, which would be created by this bill. "[G]enerally applicable laws do not offend the First Amendment simply because their enforcement against the press has incidental effects on its ability to gather and report the news." (Cohen v. Cowles Media Co., (1991) 501 U.S. 663, 669-670.) However, AB 524, while laudable in its goals, may arguably have the effect of deterring the reporting of matters of genuine public importance or concern simply by making the method of capture, and not the newsworthiness, of an image or recording, the main factor to consider when determining whether to publish or broadcast the material. If the press could prove in a specific instance that the application of AB 524 significantly burdens its ability to function, a court could arguably determine, depending on the specific facts of the case, that the law, while facially constitutional, is unconstitutional as applied. Conversely, a court may also find that a person's purchase and broadcast or publishing of images that he or she knew were unlawfully obtained are not protected by the First Amendment, and as in Shulman, determine that a person's right of privacy outweighs any interest in the public's right to know. These determinations will undoubtedly turn on the intricacies and facts of each specific case. 1. Bill would allow public attorneys to bring actions This bill would allow a county counsel or city attorney to bring actions under the invasion of privacy statute for "any and all appropriate relief" whenever they have reasonable cause to believe that a violation of this section has occurred. This allows a public attorney to bring an action on behalf of a private party whose privacy has been invaded. This committee may wish to consider whether there is a compelling public interest that justifies authorizing city attorneys or county counsels to litigate a tort action pursuant to the statute, and AB 524 (Bass) Page 12 of ? why the remedies already available to private parties are not sufficient. Should this committee determine that the authorization is appropriate, it may wish to consider whether the bill should be amended to limit the actions public prosecutors may bring to the recovery of civil fines where there would be more of a discernable benefit to the public. SHOULD PUBLIC PROSECUTORS BE ALLOWED TO BRING ACTIONS UNDER THE INVASION OF PRIVACY STATUTE? IF SO, SHOULD THE ACTIONS THEY MAY BRING BE LIMITED TO THE RECOVERY OF CIVIL FINES? 1. Opposition Various concerns have been expressed about the potential consequences should this bill be enacted. In particular, in their opposition letter to AB 524, the California Newspaper Publishers Association (CNPA) argues that the enactment of this bill would force the Legislature to tread "into uncharted First Amendment territory, where costs of litigation are excruciatingly expensive." This bill, CNPA says, would allow city and district attorneys to pursue a victim's personal civil action at the expense of taxpayer dollars. Traditionally, CNPA argues, there has not been a societal interest in using taxpayer funds to protect the private property and personal moments of an individual. To use public resources in such a manner would be unjustified. Additionally, in its letter, the CNPA cites to Bartnicki v. Vopper, which held that "the media is constitutionally protected from liability even for the publication of information unlawfully obtained by a third party and then transmitted to the media where the information concerns a matter of public concern and the media did not participate in the unlawful capturing of the information." It is not possible, argues CPNA, to enact AB 524 which would prosecute such persons, and still be consistent with Bartnicki v. Vopper. Another main concern, expressed by the California Broadcasters Association (CBA), is how far liability will be extended and its affect on daily broadcast operations. Specifically, CBA states: AB 524 demands that broadcasters decided on the legality of the photographer's conduct, with few available facts other than the images themselves. If the photographer committed a physical trespass or constructive trespass (telephoto lens), a AB 524 (Bass) Page 13 of ? station cannot purchase the video - unless the taping was consensual, not of a personal or family activity, or captured in an offensive manner. Who do you ask for clarification? The biased person in the video who doesn't want it broadcast or the one who wants to trade it for money? CBA also points to instances where a station purchases a program produced by a third party, and is assured the program contents were obtained legally. CBA questions whether and to what extent may the purchasing station rely on those assurances? Instead of focusing on the newsworthiness of the content, CBA asserts that news broadcasters and program directors will be more concerned with the potential liability that accompanies its broadcast. Support : Screen Actors Guild Opposition : California Newspaper Publishers Association; California Broadcasters Association; Californians Aware; American Civil Liberties Union HISTORY Source : Author Related Pending Legislation : None Known Prior Legislation : SB 262 (Burton, Chapter 1000, Statutes of 1998). See Background. AB 381 (Montanez, Chapter 462, Statues of 2005). See Background. Prior Vote : Assembly Judiciary Committee (Ayes 8, Noes 2) Assembly Floor (Ayes 55, Noes 14) ************** AB 524 (Bass) Page 14 of ?