BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1584
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1584 (Buchanan)
          As Amended  August 21, 2014
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(May 5, 2014)   |SENATE: |35-0 |(August 25,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    ED.  

           SUMMARY  :  Authorizes a local education agency (LEA), pursuant to  
          a policy adopted by its governing board, to enter into a  
          contract with third parties to provide services, including  
          cloud-based services, for the digital storage, management, and  
          retrieval of pupil records, and to provide digital educational  
          software, provided the contract includes specific provisions  
          about the security, use, ownership, and control of the pupil  
          records.

           The Senate amendments  :
           
           1)Require contracts to include a description of the means by  
            which pupils may retain possession and control of their own  
            pupil-generated content, if appropriate, including options by  
            which a pupil may transfer pupil-generated content to a  
            personal account.  

           2)Delete the requirement that contracts prohibit third parties  
            from using personally identifiable information on pupils for  
            commercial or advertising purposes and instead add a  
            requirement that the contract contain a prohibition against  
            the third party using personally identifiable information in  
            pupil records to engage in targeted advertising.  

           3)Clarify that parents, legal guardians, and eligible pupils may  
            review and correct personally identifiable information in  
            pupil records.  

           4)Delete the requirement that contracts provide for the  
            assignment of liability in the event of the unauthorized  
            disclosure of pupil data and instead require contracts to  
            provide a description of the procedures for notifying the  
            affected pupil and parent or legal guardian.  








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           5)Change from "when that pupil is no longer enrolled in the  
            local education agency" to "upon completion of the terms of  
            the contract" the time beyond which pupil records shall not be  
            retained by or available to the third party.  

           6)Include in the definition of "pupil records" any information  
            acquired directly from the pupil through the use of  
            instructional software or applications assigned to the pupil  
            by a teacher or other local educational agency employee.  

           7)Delete the exemption from the definition of "pupil records"  
            the records of teacher and school administrators that are kept  
            in their sole possession from the definition of "pupil  
            records," and instead provide that "pupil records" does not  
            include deidentified information used for:  

              a)   Improving educational products for adaptive learning  
               purposes and for customizing pupil learning;  

              b)   Demonstrating the effectiveness of the operator's  
               products in the marketing of those products; and  

              c)   Developing and improving educational sites, services, or  
               applications.  

           8)Define "deidentified" information to mean information that  
            cannot be used to identify an individual pupil.  

           9)Define "pupil-generated content" to mean materials created by  
            a pupil, including, but not limited to, essays, research  
            reports, portfolios, creative writing, music or other audio  
            files, photographs, and account information that enables  
            ongoing ownership of pupil content.  

           10)Clarify that "pupil-generated content" does not include pupil  
            responses to standardized assessments where pupil possession  
            and control would jeopardize test validity and reliability.  

           11)Delete the provision that a contract that fails to meet the  
            requirements of the bill is voidable and instead provide that:  

              a)   Such contracts shall be rendered void if, upon notice  
               and a reasonable oppoprtunity to cure, the noncompliant  
               party fails to come into compliance and cure any defect;  








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              b)   Written notice of noncompliance may be provided by any  
               party or intended beneficiary of the contract; and  

              c)   All parties subject to a voided contract shall return  
               all pupil records in their possession to the LEA.  

           12)Delete the reference to the federal Children's Online Privacy  
            Protection Act of 1998.  

           13)Provide that the requirements of this bill shall not be  
            construed to impose liability on a third party for content  
            provided by another person.  

          14)Clarify the means by which a noncompliant contract may be  
            rendered void.  
           
           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the  
          Legislative Counsel.

           COMMENTS  :  According to the author's office, the Senate  
          amendments respond to concerns raised by the industry.  These  
          concerns include the following:

          1)Pupils should be able to retain digital access to their own  
            created content (Senate amendments provide an option for  
            pupils to retain their own content through a personal  
            account).

          2)Software and application developers should be able to use  
            aggregated deidentified information for further product  
            development and improvement and for marketing purposes (Senate  
            amendments define "deidentified information" and specifically  
            permit its use for these purposes).

          3)The prohibition against using personally identifiable  
            information for commercial or advertising purposes is too  
            restrictive, because "commercial" and "advertising" are not  
            defined and could be interpreted too broadly (Senate  
            amendments delete the reference to "commercial" and narrow the  
            restriction to the use of personally identifiable information  
            in pupil records to engage in advertising).
           

          Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087 








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