BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          SCR 54 (Padilla)
          As Introduced
          Hearing Date: July 2, 2013
          Fiscal: Yes
          Urgency: No
          TMW


                                        SUBJECT
                                           
               California Law Revision Commission:  Referral for Study

                                      DESCRIPTION  

          This measure would require the California Law Revision  
          Commission (CLRC) to report to the Legislature recommendations  
          to revise statutes governing access by state and local  
          government agencies to customer information from communications  
          service providers (i.e., telephone, DSL, broadband companies).

                                      BACKGROUND 

          The California Law Revision Commission (CLRC) was created in  
          1953 and tasked with the responsibility for a continuing  
          substantive review of California statutory and decisional law.   
          The CLRC studies the law in order to discover defects and make  
          related recommendations to the Legislature for needed reforms.  

          The CLRC's enabling statute recognizes two types of topics the  
          CLRC is authorized to study:  (1) those that the CLRC identifies  
          for study and lists in the Calendar of Topics that it reports to  
          the Legislature; and (2) those that the Legislature assigns to  
          the CLRC directly, by statute or concurrent resolution.  In the  
          past, the bulk of the CLRC's study topics have come through the  
          first route - matters identified by the CLRC and approved by the  
          Legislature.  Once the CLRC identifies a topic for study, it  
          cannot begin to work on the topic until the Legislature, by  
          concurrent resolution, authorizes the CLRC to conduct the study.  
           Direct legislative assignments have become much more common in  
          recent years, and many of the CLRC's recent studies were  
          directly assigned by the Legislature.
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          This measure would require the California Law Revision  
          Commission (CLRC) to report to the Legislature recommendations  
          to revise statutes governing access by state and local  
          government agencies to customer information from communications  
          service providers.
                                CHANGES TO EXISTING LAW
           
           Existing law  authorizes the California Law Revision Commission  
          to study topics approved by concurrent resolution of the  
          Legislature.  (Gov. Code Sec. 8293.)

           Existing law  prohibits an employee or member of the CLRC, with  
          respect to any proposed legislation concerning matters assigned  
          to the commission for study, advocate for the passage or defeat  
          of the legislation by the Legislature or the approval or veto of  
          the legislation by the Governor or appear before any committee  
          of the Legislature unless requested to do so by the committee or  
          its chairperson. (Gov. Code Sec. 8288.)

           This measure  would require the California Law Revision  
          Commission (CLRC) to report to the Legislature recommendations  
          to revise statutes governing access by state and local  
          government agencies to customer information from communications  
          service providers in order to do all of the following:
           update statutes to reflect 21st Century mobile and  
            Internet-based technologies;
           protect customers' constitutional rights, including, but not  
            limited to, the rights of privacy and free speech, and the  
            freedom from unlawful searches and seizures;
           enable state and local government agencies to protect public  
            safety; and
           clarify the process communications service providers are  
            required to follow in response to requests from state and  
            local agencies for customer information or in order to take  
            action that would affect a customer's service, with a specific  
            description of whether a subpoena, warrant, court order, or  
            other process or documentation is required.

           This measure  would make the following legislative statements:
           widespread use of 21st Century mobile and Internet-based  
            communications technologies and services enable service  
            providers to monitor, collect, and retain large quantities of  
            information regarding customers, including when and with whom  
            a customer communicates or transacts business, location data,  
            and the content of communications;
                                                                      



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           government requests to communications service providers for  
            customer information have increased dramatically in recent  
            years, especially by law enforcement agencies; 
           California statutes governing access to customer information  
            lack clarity and uniform definitions as to the legal standard  
            for government agencies to obtain customer information from  
            communications service providers, and many were enacted prior  
            to the advent of wireless mobile services and the Internet;  
            and
           revising and updating these statutes is necessary to reflect  
            modern technologies and clarify the rights and  
            responsibilities of customers, communications service  
            providers, and government agencies seeking access to customer  
            information.

                                        COMMENT
           
          1.   Stated need for the bill  

          The author writes:
            
            California statutes governing access by state and local  
            government agencies to customer information from  
            communications service providers lack a clear framework and  
            defined legal standard for when government can obtain customer  
            information and from whom.  These statutes are scattered  
            throughout the California Code, lack consistent and clear  
            definitions for what is required when a service provider gets  
            a request for information.  Many of the statutes were enacted  
            in the era of monopoly landline telephone service do not  
            reflect the vast amount of information available with modern  
            technologies from numerous providers.  

            An update is needed because widespread use of 21st Century  
            mobile and Internet-based communications technologies and  
            services enable service providers to monitor, collect and  
            retain large quantities of information about customers,  
            including when and with whom a customer communicates or  
            transacts business, location data, and the content of  
            communications.  Nearly all Californians (92 [percent]) have a  
            cell phone, 58 percent of them have a smartphone, and nearly  
            all (86 [percent]) use the Internet at least occasionally,  
            according to a new survey by the Public Policy Institute of  
            California released June 26, 2013.  As use of these services  
            increases, so have law enforcement requests to providers for  
            customer information.  A Congressional inquiry last year found  
                                                                      



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            that requests to service providers from law enforcement  
            increased between 12 percent and 16 percent in each of the  
            previous five years.  The time is now to update California law  
            to reflect when and how state and local government can obtain  
            customer information related to the ever-expanding use of  
            modern communications services.

           2.Increased cellphone data collection by law enforcement and  
            need to update consumer privacy protections

           This Senate Concurrent Resolution seeks to require the  
          California Law Revision Commission (CLRC) to report to the  
          Legislature recommendations to revise statutes governing access  
          by state and local government agencies to customer information  
          from communications service providers (i.e., telephone, DSL,  
          broadband companies).

          Last year, a Congressional inquiry made by Congressman Ed Markey  
          (D-Massachusetts), senior member of the United States House of  
          Representatives Energy and Commerce Committee and Co-Chair of  
          the Congressional Bi-Partisan Privacy Caucus, found that  
          requests to telecommunications service providers from law  
          enforcement officials increased between 12 percent and 16  
          percent in each of the previous five years.  The inquiry also  
          revealed that federal, state, and local law enforcement made  
          approximately 1.3 million requests for cell phone records to  
          wireless carriers in 2011.  The information provided by the  
          wireless carriers to law enforcement included geolocation  
          information, text message content, wiretaps, and "cell tower  
          dumps," in which carriers provide all the phone numbers of cell  
          users that connected with a tower during a discreet period of  
          time.  (See Markey:  Law Enforcement Collecting Information on  
          Millions of Americans from Mobile Phone Carriers (July. 9, 2012)  
           [as of June 27,  
          2013].)

          Furthermore, a recent New York Times article stated that judges  
          and lawmakers across the country are now wrangling over whether  
          and when law enforcement authorities should have access to  
          consumer cellphone data and how the information may be used as  
          evidence in criminal cases.  (Sengupta, Courts Divided over  
          Searches of Cellphones (Nov. 25, 2012) N.Y. Times  
           [as of June 27, 2013].)  In California, a January  
          2013 report of the California Attorney General indicated that  
          the explosion in use of mobile and Internet-based services  
          requires new approaches to protect consumers in connection with  
          service providers' collection, use, and disclosure to third  
          parties of personal information.  (Cal. Atty. Gen., Privacy on  
          the Go, Recommendations for the Mobile Ecosystem (Jan. 2013)  
           [as of June 27, 2013] p. i.)
             
          3.Legislative Counsel Bureau Opinion on government access to  
            private information

           According to a Legislative Counsel Bureau opinion issued at the  
          author's request, there are multiple laws relative to the  
          government's authority to access information conveyed or  
          acquired through or related to the use of technology, or to  
          restrict an individual's use of a communications service.  (Ops.  
          Cal. Legis. Counsel, No. 1304153 (Apr. 25, 2013) p. 1.)  That  
          Opinion noted that the scope of the government's authority is  
          generally dependent on federal and constitutional law, and  
          provided examples of codified state law relevant to the  
          government's authority to access or take action relative to an  
          individual's communications.  (Ibid.)

              a.   Government's authority to access customer information  
               from a communications service provider  

            According to that Opinion, there are numerous provisions of  
            codified state law that relate to the government's authority  
            to access customer information from a communications service  
            provider.  Some examples are as follows:
                 Code of Civil Procedure Section 1985.3 establishes  
               procedures for a law enforcement agency to subpoena a  
               consumer's personal records maintained by a telephone  
               company; this provision requires the consumer's consent to  
               the release of information.
                 The California Public Records Act, Government Code Sec.  
               6250 et seq., generally requires documents maintained by  
               public agencies to be open for public inspection.   
               Government Code Section 6254.16 provides an exemption from  
               public disclosure for information of a public utility  
               customer unless the information is requested by another  
               governmental agency or upon a court order or the request of  
                                                                      



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               a law enforcement agency relative to an ongoing  
               investigation.
                 The Penal Code authorizes a government agency to obtain  
               customer information pursuant to a search warrant, without  
               notifying the customer.  (See Pen. Code Secs. 1473 et seq.,  
               1524.3, 4576.)
                 The Public Utilities Code authorizes an employee of a  
               district attorney office to request and receive from  
               telephone, gas, and electric public utilities customer  
               information, as specified, and authorizes release of  
               customer information to the Public Utilities Commission  
               without customer consent.  (Pub. Util Code Secs. 588,  
               2891.)  (Id. at pp. 1-7.)

              a.   Government's authority to restrict communications  
               service to a customer  

            The Opinion also noted that numerous provisions of state law  
            relate to the government's authority to restrict  
            communications service to a customer and provided the  
            following examples:
                 Business and Professions Code Section 149 authorizes a  
               government agency to notify a telephone company to  
               disconnect service to any customer unlawfully advertising  
               in a telephone directory.
                 Penal Code Section 4576 authorizes the Department of  
               Corrections and Rehabilitation to use available technology  
               to restrict communications to or from a wireless device  
               brought by a person, without authorization, within the  
               secure perimeter of a detention facility.
                 Public Utilities Code Section 5322 requires the Public  
               Utilities Commission to disconnect telephone service  
               provided to an unpermitted household goods carrier (moving  
               service).  (Id. at pp. 7-12.)

              a.   Government's authority to use technology to access  
               personal information
           
            The Opinion also identified numerous provisions of state law  
            relating to the government's authority to use technology to  
            access an individual's personal information as follows:
                 Penal Code Section 629.50 et seq. authorizes a law  
               enforcement agency to intercept wire or electronic cellular  
               telephone communications related to a crime.
                 Penal Code Sections 632 and 632.5 authorize a public  
               utility providing communications services to eavesdrop or  
                                                                      



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               record a customer's confidential communication without the  
               consent of all parties, and authorizes a telephonic  
               communication system within a state, county, city and  
               county, and city correctional facility to eavesdrop and  
               record confidential communications.
                 Penal Code Section 633.8 authorizes a peace officer to  
               use or authorize the use of an electronic amplifying or  
               recording device to eavesdrop on or record any oral  
               communication under specified emergency situations.  (Id.  
               at pp. 12-23.)

           1.Report regarding state and local government agency access to  
            communications service provider customer information

           As noted in Comment 3, there are a myriad of state laws relating  
          to government access to communications customer's information  
          and restrictions of customer communications.  This measure would  
          require the CLRC to report to the Legislature recommendations to  
          revise statutes governing access by state and local government  
          agencies to customer information from communications service  
          providers (telephone, DSL, broadband companies).  The concept  
          behind this measure is to update the statutes to reflect current  
          mobile and Internet-based technologies, protect consumer  
          constitutional rights, including privacy, free speech, and  
          freedom from unlawful searches and seizures, address appropriate  
          public safety concerns of state and local government agencies,  
          and clarify the disclosure process when communications companies  
          release information to state and local agencies.


           Support  :  None Known

           Opposition  :  None Known

                                        HISTORY
          
           Source  :  Author

           Related Pending Legislation  :  None Known 

           Prior Legislation  :

          AB 567 (Wagner, Ch. 15, Stats. 2013) repealed the requirement  
          that the CLRC make the decennial recommendations, and retained  
          the CLRC's general authority to study, review, and make  
          recommendations regarding the enforcement of judgments law.
                                                                      



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          ACR 98 (Wagner, Res. Ch. 108, Stats. 2012) required the CLRC,  
          before commencing work on any project within the calendar of  
          topics the Legislature has authorized or directed the CLRC to  
          study, to submit a detailed description to legislative members,  
          as specified, and required the CLRC to provide a copy of a  
          commission recommendation to each member of a policy committee  
          that is hearing a bill that would implement the recommendation.

          ACR 49 (Evans, Res. Ch. 98, Stats. 2009) required the CLRC,  
          prior to commencing work on any project within the list of  
          topics authorized or directed for study by the Legislature, to  
          submit a detailed description of the scope of work to the Chairs  
          and Vice Chairs of the Committees on Judiciary of the Senate and  
          Assembly, and if during the course of the project there is a  
          major change to the scope of work, submit a description of the  
          change.

          ACR 125 (Papan, Ch. 167, Stats. 2002) authorized the CLRC to  
          study, report on, and prepare recommended legislation concerning  
          the issue of financial privacy to address protection and control  
          of a consumer's personal information and provide both  
          administrative and civil penalties.

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