BILL NUMBER: AB 83 AMENDED
AMENDED IN ASSEMBLY APRIL 27, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Gatto
JANUARY 6, 2015
An act to amend Section 1798.81.5 of the Civil Code, relating to
LEGISLATIVE COUNSEL'S DIGEST
AB 83, as amended, Gatto. Information Practices Act of 1977.
Existing law requires a person or business that owns, licenses, or
maintains personal information about a California resident to
implement and maintain reasonable security procedures and practices
appropriate to the nature of the information, to protect the personal
information from unauthorized access, destruction, use,
modification, or disclosure.
This bill would define "reasonable security procedures and
practices" for purposes of these provisions as requiring, at a
the encryption of private data to the degree that
any reasonably prudent business would provide,
security of personal information, including geophysical location
information, to the degree that any reasonably prudent
business would provide, as specified. The bill would
define "private data" to include specified types personally
identifying medical, financial, and geophysical information. The bill
would also authorize the Department of Justice to specify security
procedures, practices, and technical standards that it deems to be
presumptively reasonable within a particular industry.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1798.81.5 of the Civil Code is amended to read:
1798.81.5. (a) (1) It is the intent of the Legislature to ensure
that personal information about California residents is protected. To
that end, the purpose of this section is to encourage businesses
that own, license, or maintain personal information about
Californians to provide reasonable security for that information.
(2) For the purpose of this section, the terms "own" and "license"
include personal information that a business retains as part of the
business' internal customer account or for the purpose of using that
information in transactions with the person to whom the information
relates. The term "maintain" includes personal information that a
business maintains but does not own or license.
(b) A business that owns, licenses, or maintains personal
information about a California resident shall implement and maintain
reasonable security procedures and practices appropriate to the
nature of the information, to protect the personal information from
unauthorized access, destruction, use, modification, or disclosure.
(c) A business that discloses personal information about a
California resident pursuant to a contract with a nonaffiliated third
party that is not subject to subdivision (b) shall require by
contract that the third party implement and maintain reasonable
security procedures and practices appropriate to the nature of the
information, to protect the personal information from unauthorized
access, destruction, use, modification, or disclosure.
(d) For purposes of this section, the following terms have the
(1) "Personal information" means an individual's first name or
first initial and his or her last name in combination with any one or
more of the following data elements, when either the name or the
data elements are not encrypted or redacted:
(A) Social security number.
(B) Driver's license number or California identification card
(C) Account number, credit or debit card number, in combination
with any required security code, access code, or password that would
permit access to an individual's financial account.
(D) Medical information.
(E) Geophysical location information.
(2) "Geophysical location information" means any personally
identifiable information describing or concerning the duration of a
transportation service provided to an individual, the location and
route of a transportation service provided to an individual, or, if
applicable, the monetary exchange associated with a transportation
service provided to an individual.
(3) "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.
(4) "Personal information" does not include publicly
available information that is lawfully made available to the general
public from federal, state, or local government records.
(4) "Private data" means any of the following information:
(A) Medical information.
(B) Personally identifiable financial information, as that term is
defined in subdivision (b) of Section 4052 of the Financial Code.
(C) Geophysical location information.
(D) The combination of an individual's first name or first initial
and his or her last name, with any of the following:
(i) Mother's maiden name.
(ii) Social Security Number.
(iii) Date of birth.
(e) The provisions of this section do not apply to any of the
(1) A provider of health care, health care service plan, or
contractor regulated by the Confidentiality of Medical Information
Act (Part 2.6 (commencing with Section 56) of Division 1).
(2) A financial institution as defined in Section 4052 of the
Financial Code and subject to the California Financial Information
Privacy Act (Division 1.2 (commencing with Section 4050) of the
(3) A covered entity governed by the medical privacy and security
rules issued by the federal Department of Health and Human Services,
Parts 160 and 164 of Title 45 of the Code of Federal Regulations,
established pursuant to the Health Insurance Portability and
Availability Act of 1996 (HIPAA).
(4) An entity that obtains information under an agreement pursuant
to Article 3 (commencing with Section 1800) of Chapter 1 of Division
2 of the Vehicle Code and is subject to the confidentiality
requirements of the Vehicle Code.
(5) A business that is regulated by state or federal law providing
greater protection to personal information than that provided by
this section in regard to the subjects addressed by this section.
Compliance with that state or federal law shall be deemed compliance
with this section with regard to those subjects. This paragraph does
not relieve a business from a duty to comply with any other
requirements of other state and federal law regarding the protection
and privacy of personal information.
(f) For purposes of this section, "reasonable security procedures
and practices" as they pertain to the storage and transmission of
private data personal information shall
require, at a minimum, the encryption
security of that information to the degree that any reasonably
prudent business would provide, taking into account factors,
including, but not limited to, the business' size, available
technology, publically available threat information, generally
accepted standards, and the customs and practices of the specific
industry within which the business operates, to the extent
commercially reasonable. provide. All of the following
shall also apply:
(1) At a minimum, the business shall:
(A) Identify reasonably foreseeable internal and external risks to
the privacy and security of personal information that could result
in the unauthorized disclosure, misuse, alteration, destruction, or
other compromise of the information.
(B) Establish, implement, and maintain safeguards reasonably
designed to ensure the security of the personal information,
including, but not limited to, protecting against unauthorized loss,
misuse, alteration, destruction, access to, or use of the
(C) Regularly assess the sufficiency of any safeguards in place to
control reasonably foreseeable internal and external risks, and
evaluate and adjust those safeguards in light of the assessment.
(D) Evaluate and adjust any material changes in the operations or
business arrangements of the business, or any other circumstances,
that create a material impact on the privacy or security of personal
information under control of the business.
(2) The reasonableness of the security procedures and practices
shall be determined in light of all of the following:
(A) The degree of the privacy risk associated with the personal
information under the business's control.
(B) The foreseeability of threats to the security of the
(C) The existence of widely accepted practices in administrative,
technical, and physical safeguards for protecting personal
(D) The cost of implementing and regularly reviewing the
(g) The Department of Justice may, at its discretion, specify
security procedures and practices, including related technical
standards, that it deems to be presumptively reasonable within a