BILL NUMBER: SB 602	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Yee

                        FEBRUARY 17, 2011

   An act to amend Section 1798.91 of the Civil Code, relating to
consumer privacy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 602, as introduced, Yee. Consumer privacy: medical information.

   Existing law prohibits a business from requesting medical
information directly from an individual and disclosing it for direct
marketing purposes, as defined, without first informing the
individual that the information will be used to market or advertise
products to him or her and obtaining the individual's consent to use
the information for that purpose.
   This bill would make nonsubstantive changes to this provision
regarding obtaining and disclosing medical information for direct
marketing purposes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1798.91 of the Civil Code is amended to read:
   1798.91.  (a) For purposes of this title, the following
definitions shall apply:
   (1) "Direct marketing purposes" means the use of personal
information for marketing or advertising products, goods, or services
directly to individuals. "Direct marketing purposes" does not
include the use of personal information  (A) by 
in either of the following circumstances: 
    (A)     By  bona fide tax exempt
charitable or religious organizations to solicit charitable
contributions  or (B) to   . 
    (B)     To  raise funds from  ,
 and communicate with ,  individuals regarding politics
and government.
   (2) "Medical information" means any individually identifiable
information, in electronic or physical form, regarding the individual'
s medical history, or medical treatment or diagnosis by a health care
professional. "Individually identifiable" means that the medical
information includes or contains any element of personal identifying
information sufficient to allow identification of the individual,
such as the individual's name, address, electronic mail address,
telephone number, or social security number, or other information
that, alone or in combination with other publicly available
information, reveals the individual's identity. For purposes of this
section, "medical information" does not mean a subscription to,
purchase of, or request for a periodical, book, pamphlet, video,
audio, or other multimedia product or nonprofit association
information.
   (3) "Clear and conspicuous" means in larger type than the
surrounding text, or in contrasting type, font, or color to the
surrounding text of the same size, or set off from the surrounding
text of the same size by symbols or other marks that call attention
to the language.
   (4) For purposes of this section, the collection of medical
information online constitutes "in writing." For purposes of this
section, "written consent" includes consent obtained online.
   (b) A business may not orally request medical information directly
from an individual regardless of whether the information pertains to
the individual or not, and use, share, or otherwise disclose that
information for direct marketing purposes, without doing both of the
following prior to obtaining that information:
   (1) Orally disclosing to the individual in the same conversation
during which the business seeks to obtain the information, that it is
obtaining the information to market or advertise products, goods, or
services to the individual.
   (2) Obtaining the consent of either the individual to whom the
information pertains or a person legally authorized to consent for
the individual, to permit his or her medical information to be used
or shared to market or advertise products, goods, or services to the
individual, and making and maintaining for two years after the date
of the conversation, an audio recording of the entire conversation.
   (c) A business may not request in writing medical information
directly from an individual regardless of whether the information
pertains to the individual or not, and use, share, or otherwise
disclose that information for direct marketing purposes, without
doing both of the following prior to obtaining that information:
   (1) Disclosing in a clear and conspicuous manner that it is
obtaining the information to market or advertise products, goods, or
services to the individual.
   (2) Obtaining the written consent of either the individual to whom
the information pertains or a person legally authorized to consent
for the individual, to permit his or her medical information to be
used or shared to market or advertise products, goods, or services to
the individual.
   (d) This section does not apply to a provider of health care,
health care service plan, or contractor, as defined in Section 56.05.

   (e) This section shall not apply to an insurance institution,
agent, or support organization, as defined in Section 791.02 of the
Insurance Code, when engaged in an insurance transaction, as defined
in subdivision (m) of Section 791.02 of the Insurance Code, pursuant
to all the requirements of Article 6.6 (commencing with Section 791)
of Chapter 1 of Part 2 of Division 1 of the Insurance Code, and the
regulations promulgated thereunder.
   (f) This section does not apply to a telephone corporation, as
defined in Section 234 of the Public Utilities Code, when that
corporation is engaged in providing telephone services and products
pursuant to Sections 2881, 2881.1, and 2881.2 of the Public Utilities
Code, if the corporation does not share or disclose medical
information obtained as a consequence of complying with those
sections of the Public Utilities Code, to third parties for direct
marketing purposes.