BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                    CONSENT


          Bill No:  AB 1971
          Author:   Bonnie Lowenthal (D), et al
          Amended:  6/15/10 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE :  5-0, 6/10/10
          AYES: Corbett, Harman, Hancock, Leno, Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 4/29/10 (Consent) - See last page  
            for vote


           SUBJECT  :    California State University and University of  
          California: 
                      Disclosure of alumni personal information

           SOURCE  :     California State University and University of  
          California


           DIGEST  :    This bill extends the sunset date on current law  
          which permits the California State University and the  
          University of California to disclose the names, addresses,  
          and e-mail addresses of alumni to their "affinity partners"  
          (nonaffiliated businesses with whom the university has a  
          contractual agreement to, among other things, offer  
          commercial products and services to alumni), subject to  
          specified privacy requirements.  This bill deletes the  
          Hastings College of Law from these provisions.  These  
          provisions are scheduled to sunset on January 1, 2011, this  
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          bill extends the provisions to January 1, 2016.

           ANALYSIS  :   Existing law establishes the California State  
          University (CSU), administered by the Trustees of the CSU,  
          and the University of California (UC), administered by the  
          Regents of the UC, as two of the segments of public  
          postsecondary education in this state.  Existing law  
          establishes the Hastings College of the Law, under the  
          governance of the Board of Directors of the Hastings  
          College of the Law, within the University of California.

          Existing law prescribes criteria for the disclosure of the  
          names and addresses of alumni of the CSU, the UC, and the  
          Hastings College of the Law.  Existing law requires that  
          the names, addresses, and electronic mail addresses of  
          alumni be disclosed only to provide those persons with  
          informational materials relating to the CSU, the UC, and  
          the Hastings College of the Law, and its programs and  
          activities; to provide those persons, or the trustees,  
          auxiliary organizations of the CSU, as defined, or the  
          Regents of the UC, the Board of Directors of the Hastings  
          College of the Law, or the alumni associations with  
          beneficial commercial opportunities; or to promote and  
          support the educational mission of the CSU, the UC, the  
          trustees, the regents, the Board of Directors of the  
          Hastings College of the Law, or the alumni associations.

          Existing law authorizes this disclosure only if the  
          trustees, auxiliary organizations, or the alumni  
          associations, in the case of the CSU, or the regents, the  
          board of directors, or the alumni associations, in the case  
          of the UC and the Hastings College of the Law, have a  
          written agreement with a business, as defined, that  
          maintains control over this data that requires the business  
          to maintain the confidentiality of the names, addresses,  
          and electronic mail addresses of the alumni, that requires  
          that the university or the college retain the right to  
          approve or reject any purpose for which the private  
          information is to be used by the business and to review and  
          approve the text of mailings sent to alumni, and that  
          prohibits the business from using the information for any  
          purposes other than those described, and the disclosure of  
          alumni names, addresses, and electronic mail addresses does  
          not include the names and addresses of alumni who have  

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          directed the trustees, the regents, the board of directors,  
          or an alumni association or auxiliary organization, not to  
          disclose their names, addresses, or electronic mail  
          addresses.

          Existing law requires the CSU, the UC, and the Hastings  
          College of the Law to make available to its alumni a  
          specified form or an alternative notice, including  
          specified information, in a mailing or in an Internet  
          posting, as prescribed, before alumni names, addresses, and  
          electronic mail addresses may be disclosed.

          Under existing law, the above provisions are applicable to  
          the UC and the Hastings College of the Law only to the  
          extent that the regents or the board of directors act, by  
          resolution, to make them applicable.

          This bill deletes the Hastings College of the Law from the  
          above-described provisions.  With respect to the form that  
          these institutions are required to make available to alumni  
          prior to the disclosure of alumni information, this bill  
          would require that form to be provided to alumni through a  
          link on the homepage of the Internet Web site of the alumni  
          association or in the alumni association's privacy policy.

          The bill also expresses the intent of the Legislature that,  
          by July 1, 2014, the California State University, and the  
          UC submit reports to the Legislature regarding compliance  
          with these provisions.

          Existing law specifies that the above provisions are  
          repealed as of January 1, 2011. 

          This bill extends those repeal dates to January 1, 2016.

           Background
           
          This bill is a reintroduction of last year's AB 1222  
          (Lowenthal), which was vetoed by the Governor.  In 2005,  
          the Legislature passed and the Governor signed SB 569  
          (Torlakson), Chapter 498, Statutes of 2005, which expressly  
          allowed CSU, UC, and Hastings College of Law to disclose  
          the names, addresses, and e-mail addresses of alumni to  
          businesses with whom the university has an affinity partner  

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          agreement.  Tax-exempt organizations use affinity programs  
          to generate revenue by permitting the use of their name or  
          logo to endorse products or services.  Both CSU and UC use  
          affinity programs to partner with commercial entities so  
          that alumni organizations can offer various financial  
          products and services to alumni.  As part of the agreement,  
          the affinity partner pays a fee to the alumni association  
          in return for allowing access to alumni association mailing  
          lists. 

          Under SB 569, alumni information may only be shared for  
          particular purposes, and the universities must meet  
          specified privacy requirements including that they have a  
          written contractual agreement with the affinity partner  
          business that contains certain privacy protections.  CSU,  
          UC, and Hastings College of Law may not disclose alumni  
          information to affinity partners without first offering  
          alumni an opportunity to opt out of the disclosure.   
          Existing law provides a statutory notice form for this  
          purpose and requires that the form be provided to alumni in  
          certain communications, such as the alumni association  
          magazine and Web site.  These provisions sunset on January  
          1, 2011; this bill extends this sunset date to January 1,  
          2016, and removes Hastings College of Law from these  
          provisions.  This bill also contains related reporting  
          requirements.

           Prior Legislation

           AB 1222 (Lowenthal), passed the Senate with a 39-0 vote on  
          August 24, 2009, which would have extended the sunset date  
          on current law permitting CSU, UC, and Hastings College of  
          Law to disclose alumni personal information.  This bill was  
          vetoed, the Governor stated, "I am returning Assembly Bill  
          1222 without my signature.  This bill extends the sunset  
          date on a statute that is not expiring until January 1,  
          2011.  Therefore, this bill is premature and unnecessary.   
          For these reasons, I am unable to sign this bill."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/29/10)


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          California State University (co-source)
          University of California (co-source)


           ARGUMENTS IN SUPPORT  :    The author's office writes,  
          "Campus alumni associations have been established at all 23  
          California State University (CSU) campuses as well as the  
          10 University of California (UC) campuses.  The primary  
          purpose of these associations is to maintain relationships  
          and build long-term connections to graduates with the  
          ultimate goal to support the University in the form of  
          donations, scholarships, and involvement.  It is common  
          practice among public universities throughout the country,  
          and private institutions in California, to offer benefits  
          and services through affinity partnerships with commercial  
          vendors to alumni as one way to stay connected to their  
          university.  Examples of these affinity partnerships  
          include group rates and discounts for home and auto  
          insurance, mortgage programs and travel programs.

          "In light of California's recent revenue shortfalls and  
          budget reductions to public universities, the role of  
          alumni associations and the need for private funding of  
          public universities is more critical then ever to help  
          University leaders get non-state dollars necessary to  
          maintain program quality.  . . . 

          "Affinity programs must continue to support CSU and UC with  
          donations, scholarships, and community involvement.  All 23  
          CSU campus associations currently use the funding they  
          receive from these programs to further their programming  
          and outreach to alumni as well as to provide both general  
          and athletic scholarships to students."

          Co-sponsor the University of California writes that  
          "affinity programs generated approximately $3.6 million for  
          UC campuses in 2007-08.  Revenues generated from UC campus  
          affinity partnerships generally provide funding to  
          supplement the operational costs of campus alumni programs.  
           The revenues are also used by UC campus alumni  
          associations to provide services and benefits to students.   
          An example is the UC Irvine alumni association's affinity  
          partnership revenues, of which almost 35 percent are used  
          to support the cost of student programs and scholarships.   

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          The funds generated by affinity partnerships allow the UC  
          campus alumni association to provide services and events to  
          alumni and students that the campuses would otherwise not  
          be able to offer." 

          In support of last year's AB 1222 (Lowenthal), an identical  
          bill, co-sponsor California State University noted that  
          "[t]hroughout the first three years of implementation of  
          this statute both public universities have held the privacy  
          of their alumni in the highest regard, keeping meticulous  
          record of all opt-out information obtained from alumni as  
          well as continually following the letter of the law by  
          ensuring ample opportunities for alumni to have their  
          information removed from records."

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Knight, Lieu, Logue, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Tran, Villines,  
            Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Caballero, Jones, Bonnie  
            Lowenthal, Torrico, Vacancy


          RJG:do  6/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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