BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 28, 2015


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          AB 691  
          Calderon - As Amended April 20, 2015


                              As Proposed to be Amended


          SUBJECT:  THE PRIVACY EXPECTATION AFTERLIFE AND CHOICES ACT  
          (PEAC)


          KEY ISSUES:  


          1)should CALIFORNIA PROVIDE PROBATE COURTS WITH MORE clear  
            GUIDANCE ABOUT HOW TO HANDLE REQUESTS FROM ADMINISTRATORS OF  
            DECEDENTS' ESTATES WHO SEEK ELECTRONIC MAIL AND SOCIAL MEDIA  
            cONTENT AND COMMUNICATIONS FROM SERVICE PROVIDERS THAT ARE  
            NECESSARY FOR THE PURPOSE OF SETTLING THOSE ESTATES?


          2)SHOULD SERVICE PROVIDERS ADOPT POLICIES STRONGLY PROTECTIVE OF  
            DECEASED USERS' PRIVACY BY REQUIRING ESTATE ADMINISTRATORS TO  
            PROVIDE EVIDENCE OF A DECEDENT'S EXPRESS CONSENT TO DISCLOSE  
            THE CONTENTS OF COMMUINCATIONS BEFORE A PROBATE COURT MAY  
            ORDER SUCH DISCLOSURE?


                                      SYNOPSIS









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          The number of people who use electronic communication and social  
          media has increased astronomically in recent years, and  
          continues to increase as new services and platforms are  
          developed and introduced to a public hungry to use them.  What  
          happens to our social media and email accounts after we die  
          though? And particularly, what happens when the content of a  
          decedent's electronic communications, stored on a provider's  
          server, is needed by the decedent's representative to properly  
          settle the decedent's estate?  Current state law addresses the  
          disposition of a person's property and assets through a will or  
          through intestate succession, but is still inadequate to address  
          many questions concerning the right to access electronic assets  
          or communications that may be necessary to settle the estate of  
          a deceased user.  Service providers remain constricted by  
          federal electronic communications privacy laws that restrict to  
          whom, other than the account holder, they may disclose the  
          contents or records of communications.  The response of state  
          courts, according to proponents of the bill, is often a  
          confusing mix of contract law, property law, and privacy law.


          This bill, backed by the Internet Association and many online  
          companies, would establish the Privacy Expectation Afterlife and  
          Choices Act (PEAC).  The Act seeks to provide a judicial  
          framework for the disclosure of electronic information from  
          service providers, as defined, to the representative of a  
          deceased user of the service for the purpose of administering  
          the decedent's estate.  The bill adopts a strong approach to  
          protecting privacy by requiring evidence that the decedent  
          expressly consented to disclosure of the contents of  
          communications before the court may authorize such disclosure of  
          the contents. With respect to the record of the communications,  
          the bill authorizes the court to order disclosure if the request  
          for the record does not conflict with the decedent's will or  
          other expression of intent regarding access to such information.  
           The bill requires that the probate court make several  
          additional findings of fact in order to authorize disclosure of  
          either the record or the contents of communications, including  








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          but not limited to: 


          (1) there are no other owners or registered users of the  
          deceased user's account; (2) disclosure is not in violation of  
          another applicable federal or state law; and, importantly, (3)  
          the request for disclosure is narrowly tailored to the purpose  
          of administering the estate.  Proposed author amendments to the  
          bill require the provider to disclose information older than 18  
          months whenever a specific request for that information is made,  
          and clarify that when a court is making a determination of  
          whether a request constitutes an undue burden on the provider,  
          any costs that the requester offers to pay shall not be  
          considered in that determination.  Due to time constraints,  
          these proposed amendments will be taken in the next Committee. 





          The bill is supported by the Internet Association, including  
          Google, Facebook, Yahoo, and AOL, and the California Chamber of  
          Commerce, among others. Productive discussions with the Judicial  
          Council of California have so far yielded two sets of extensive  
          amendments to address various concerns about judicial  
          administration, and there continues to be no known opposition to  
          the bill.  This bill will be referred to the new Assembly  
          Committee on Privacy and Consumer Protection should it be  
          approved by this Committee.





          SUMMARY:  Establishes the Privacy Expectation Afterlife and  
          Choices Act ("the Act") to provide a judicial framework for the  
          disclosure of electronic information from a communication  
          service provider, as defined, to the executor or administrator  
          of the estate of a deceased user of the service for the purpose  








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          of administering the estate.  Specifically, this bill:   


          1)Authorizes a probate court that has jurisdiction of a deceased  
            user's estate to order an electronic communication service or  
            remote computing service ("provider") to disclose certain  
            types of information pertaining to the account of the deceased  
            user that is stored with the provider, if the court makes all  
            findings of fact specified to enable the disclosure of that  
            type of information.


          2)With respect to a record of communications or other  
            information pertaining to a deceased user's account, but not  
            the contents of communications or stored contents, (hereafter  
            "record" or "catalog of communications"), the probate court  
            must find all of the following facts: 


             a)   The user is deceased.

             b)   The deceased user was the subscriber to or customer of  
               the provider.

             c)   The account belonging to the deceased user has been  
               identified with specificity, including a unique identifier  
               assigned by the provider.

             d)   There are no other owners of, or persons or entities who  
               have registered with the electronic communication service  
               with respect to, the deceased user's account.

             e)   Disclosure is not in violation of another applicable  
               federal or state law.

             f)   The request for disclosure is narrowly tailored to the  
               purpose of administering the estate.

             g)   The executor or administrator demonstrates a good faith  








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               belief that the information requested is relevant to  
               resolve issues regarding assets or liabilities of the  
               estate.

             h)   The request seeks information spanning no more than 18  
               months prior to the date of death, or the requester has  
               made a request for information that specifically requests  
               data older than 18 months prior to the date of death.

             i)   The request is not in conflict with the deceased user's  
               will or other written, electronic, or oral expression of  
               the deceased user's intent regarding access to or  
               disposition of information contained in or regarding the  
               user's account.


          3)With respect to the contents of communications or stored  
            contents ("contents"), the probate court must find all of the  
            following facts:


             a)   The findings required by Item 2(a) through 2(h) above;  
               and

             b)   The will of the decedent, or a choice made by the  
               deceased user within the product or service or otherwise  
               regarding how the user's contents can be treated after a  
               set period of inactivity after the user's death, or other  
               event evidences the decedent's express consent to the  
               disclosure of the requested contents.


          4)Clarifies that the court must make all of the above findings  
            of facts based upon a sworn declaration of the personal  
            representative, or based upon other admissible evidence.


          5)Requires a provider to disclose to the executor or  
            administrator of the estate the contents of the deceased  








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            user's account, to the extent reasonably available, only if  
            the executor or administrator gives the provider all of the  
            following:


             a)   A written request for the contents of the deceased  
               user's account.

             b)   A copy of the death certificate of the deceased user.

             c)   An order of the probate court with jurisdiction over the  
               estate of the deceased that includes all of the findings  
               required for disclosure of contents of communications or  
               stored contents. (see Item (3) above)

             d)   An order that the estate shall first indemnify the  
               provider from any and all liability in complying with the  
               order.


          6)Prohibits a provider from being compelled to disclose a record  
            or the contents of communications if any of the following  
            apply:


             a)   The deceased user expressed an intent to disallow  
               disclosure through either deletion of the records or  
               contents during the user's lifetime, or an affirmative  
               indication, through a setting within the product or  
               service, of how the user's records or the content of  
               communications can be treated after a set period of  
               inactivity or other event.

             b)   The provider is aware of any indication of lawful access  
               to the account after the date of the deceased user's death  
               or that the account is not that of the deceased user.

             c)   Disclosure would violate other applicable law,  
               including, but not limited to, electronic communications  








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               privacy provisions or copyright law.


          7)Provides that a provider served with an order compelling  
            disclosure of subscriber records or contents may make a motion  
            to quash or modify the order within a reasonable time after  
            receiving the order, in which case the court shall do any of  
            the following:



             a)   Modify the order to the extent that the court finds that  
               compliance with the order would cause an undue burden on  
               the provider, or quash the order if the court finds that  
               the order cannot be modified so as to avoid the undue  
               burden.  Further clarifies that a cost that the requester  
               offers to pay shall not be considered when a court is  
               making a determination whether a request constitutes an  
               undue burden.

             b)   Quash the order if any of the applicable required  
               findings of fact (Items 2 and 3, above) are not met.

             c)   Quash the order if the court finds, based upon the  
               preponderance of the evidence submitted by the provider or  
               any other person, that any of the circumstances set forth  
               in Item 6 (above) apply.


          8)Allows a provider to require the requester to pay the direct  
            costs of producing a copy of the record or other information  
            pertaining to the account of the deceased, when those records  
            are not already available for production during the ordinary  
            course of business.  


          9)Provides that disclosure of the contents of the deceased  
            user's account to the executor or administrator of the estate  
            shall be subject to the same license, restrictions, terms of  








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            service, and legal obligations, including copyright law, that  
            applied to the deceased user.


          10)Provides that nothing in this Act shall be construed to  
            require a requesting party to assume control of a deceased  
            user's account.


          11)Protects a provider from liability for good faith compliance  
            with a court order issued pursuant to the Act.


          12)Defines a number of key terms, including "authorized user",  
            "contents", "electronic communication", "record", and "undue  
            burden," among others.


           EXISTING LAW:   


          1)Provides for the disposition of a testator's property by will.  
            (Part 1 of Division 6 of the Probate Code, commencing with  
            Section 6100.)



          2)Provides that any part of the estate of a decedent not  
            effectively disposed of by will passes to the decedent's heirs  
            as prescribed.  (Part 2 of Division 6 of the Probate Code,  
            commencing with Section 6400.)



          3)Provides that title to a decedent's property passes on the  
            decedent's death to the person to whom it is devised in the  
            decedent's last will or, in the absence of such a devise, to  
            the decedent's heirs as prescribed in the laws governing  
            intestate succession. (Probate Code Section 7000.)








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          4)Provides that the decedent's property, including property  
            devised by a will, is generally subject to probate  
            administration, except as specified. (Probate Section 7001.)



          5)Pursuant to the federal Electronic Communications Privacy Act,  
            restricts the ability of an electronic communication service  
            or remote computing service to share information with any  
            party but the user. (18 U.S.C. §§ 2510-22.)
          FISCAL EFFECT:  As currently in print this bill is keyed  
          non-fiscal.


          COMMENTS:  There can be no doubt that the number of people who  
          use electronic communication and social media has increased  
          astronomically in recent years, and continues to increase as new  
          services and platforms are developed and introduced.  In 2014,  
          it was estimated that there are over 900 million Facebook users,  
          over 550 million users of Twitter, and hundreds of millions more  
          who use services like Google or Yahoo to send email, pay their  
          bills electronically, or store important documents or pictures.   
          For many users, social media and electronic communications have  
          expanded into almost every area of daily life, often in ways not  
          previously considered.  As a result, lawmakers are increasingly  
          faced with novel policy questions that arise from ways in which  
          social media and the Internet impact our daily lives.


          In focusing on the impact of social media and the Internet on  
          our daily lives, perhaps not enough attention has been paid to  
          this increasingly important question:  What should happen to all  
          of our email and social media accounts after we die?  Current  
          law addresses the disposition of a person's property and assets  
          through a will or through intestate succession, but is still  
          inadequate to address many questions with respect to rights to  








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          electronic assets or communications that may be necessary to  
          administrate the estate of a deceased user.  For example, under  
          what circumstances should the administrator of an estate be able  
          to access the contents of the decedent's electronic  
          communications? Should the administrator of an estate be able to  
          access the entire history of a decedent's online stored content,  
          potentially even contents not needed to settle the estate?   
          Should a person's privacy settings that restrict the audience  
          that may view a person's content during life be honored after  
          death?  This bill, introduced at the request of the Internet  
          Association and TechNet, seeks to provide a clear legal  
          framework to help courts resolve some of these questions, while  
          attempting to balance competing concerns of privacy protection  
          and efficient settling of decedents' estates.


          Author's Statement.  According to the author:


               As Californians increasingly use online services like  
               YouTube, Twitter, Facebook and even email to produce and  
               store information, it is important to consider what happens  
               to all of these digital assets after we die.  A recent  
               Zogby poll found that 70% of Americans say their online  
               communications and photos should remain private after they  
               die, unless they give prior consent for others to have  
               access. And 65% of Americans say it is a violation of their  
               privacy if that information is shared without such consent.  
                In the same study, only 15% say that estate attorneys  
               should have the discretion to decide what happens to  
               people's private communications and photos. 


               The Privacy Expectations Afterlife Choices Act ("the Act")  
               ensures Californians have the right to decide what happens  
               to their online private lives after they die. Most people  
               expect the contents of online communications like instant  
               messages and photos to remain private even after they pass  
               away. And the recipients of those messages likely expect  








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               the same.  At the same time, loved ones' legitimate efforts  
               to settle a person's affairs should not be unreasonably  
               impeded.  The Act honors individual choices while allowing  
               fiduciaries to get the information they need to settle an  
               estate. . . This bill strikes a balance between providing a  
               clear path for fiduciaries to access relevant information  
               to handle the deceased person's estate, while respecting  
               the privacy choices of not just the deceased person but  
               those with whom the deceased was communicating.


          Stronger privacy interest in contents of communications vs.  
          record of communications.  This bill adopts many key definitions  
          consistent with federal law, the Electronic Communications  
          Privacy Act of 1986 (ECPA).  "Contents" are defined to mean  
          information concerning the substance, purport, or meaning of  
          communications and include the subject line of the  
          communication.  This is distinguished from the "record" of  
          communications, which means the record of a communication sent  
          or received by a user, not including the contents but including  
          things like the account logs that record account usage,  
          cell-site data for mobile phone usage, and online addresses of  
          other persons with whom the user has communicated.  Like ECPA,  
          this bill recognizes the stronger privacy interest that users  
          have in the content of their communications on social media and  
          through email.  This interest is reflected in the requirements  
          in the bill for disclosure of contents compared to disclosure of  
          the record of communications.


          Contents of communications: Evidence of express consent by  
          decedent needed to authorize disclosure of contents of  
          communications.  The bill establishes a checklist of eight  
          findings of fact that the court must make in order to authorize  
          disclosure of information to an estate administrator.  These  
          eight findings (discussed later) apply to both the contents and  
          the record of communications. 










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          With respect only to the contents of communication, the bill  
          requires that the court find that the will of the decedent, or a  
          choice made by the deceased user within the product or service  
          or otherwise regarding how the user's contents can be treated  
          after a set period of inactivity after the user's death, or  
          other event evidences the decedent's express consent to the  
          disclosure of the requested contents.  In other words, there  
          must be some evidence that the decedent expressly consented to  
          disclosure of the contents to authorize disclosure.  Otherwise,  
          there is no disclosure of the contents.  The bill contemplates  
          that evidence of express consent can come in the form of (1) a  
          decedent's will; (2) a choice made by the deceased user within  
          the product or service (e.g. a checkbox or setting within a  
          Facebook account); or (3) some other event.  If any one of these  
          forms evidences the user's express consent to disclosure, then  
          that may be sufficient for the court to make the finding  
          authorizing disclosure.


          The Committee notes the likelihood that in many cases, the  
          decedent will have left either no will, or a will that is silent  
          with respect to electronic communications or digital assets.  In  
          such cases, the only expression of the decedent's wishes may be  
          in the form of the account settings within the service or  
          platform itself.  Proponents note that the account setting may  
          indicate how the user's contents can be treated after there has  
          been a set period of inactivity, rather than a setting directly  
          indicating consent to disclosure after death.  The settings may  
          be more nuanced as well, indicating the user's wishes with  
          respect to some kinds of contents but not other kinds.  The way  
          that settings are set up will certainly differ between service  
          providers, but the bill respects this flexibility and leaves  
          room for innovation by simply looking to any evidence of consent  
          to disclosure.


          While the account settings provide a valuable opportunity to  
          indicate the user's wishes, it is also axiomatic that many users  
          of social media and email services do not closely monitor these  








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          settings or make affirmative decisions with respect to every  
          checkbox within a list of account settings.  As a result, in the  
          absence of a will or other event, it may be that the default  
          setting-either a checked box or an unchecked box, as determined  
          by the service provider-is the only indication of a user's  
          wishes with respect to the disclosure of information.  Under the  
          bill, the default setting would have to "evidence express  
          consent to disclosure."  Because the author seeks to establish a  
          standard that is strongly protective of privacy and to limit  
          disclosure of the contents of communications, this approach  
          appears consistent with the intent of the legislation.


          Record of communications:  Disclosure authorized if request for  
                                                                record does not conflict with decedent's will or other  
          expression of intent regarding access to such information.  With  
          respect to the record of communications, the bill requires that  
          the court find that the request for disclosure is not in  
          conflict with the deceased user's will or other written,  
          electronic, or oral expression of the deceased user's intent  
          regarding access to or disposition of information contained in  
          or regarding the user's account.  In contrast to the more  
          protective rule for contents of communications (which have a  
          greater expectation of privacy), the bill does not specifically  
          require express consent of the decedent to authorize disclosure  
          of the record of communications, and recognizes that an  
          expression of intent in the decedent's will controls if there  
          are any conflicting indications.


          The bill also provides that a provider shall not be compelled to  
          disclose either the record or the contents under certain  
          circumstances.  If disclosure would violate other applicable  
          privacy law or copyright law, then disclosure is not compelled.   
          Similarly, if the provider becomes aware that the account does  
          not belong to the deceased user, or that there is other lawful  
          access to the account after the user's death (indicating a  
          shared account with at least one other authorized, living user),  
          then disclosure would not be compelled.








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          Finally, disclosure is not compelled under the bill if the  
          deceased user expressed an intent to disallow disclosure through  
          either deletion of the records or contents during the user's  
          lifetime, or an affirmative indication, through a setting within  
          the product or service, of how the user's records or the content  
          of communications can be treated after a set period of  
          inactivity or other event.  According to the author, this treats  
          any evidence that the user, while alive, took affirmative steps  
          to delete either the records or contents as sufficient to (1)  
          establish that the user did not expressly consent to disclosure,  
          in the case of contents; or (2) establish that disclosure would  
          conflict with an expression of the user's intent not to  
          disclose, in the case of communications. 


          Findings of fact needed to authorize disclosure of either  
          contents or records.  The bill requires that the probate court  
          make all of the following findings of fact in order to authorize  
          disclosure of either the record or the contents of  
          communications:


            (1) The user is deceased.


            (2) The deceased user was the subscriber to or customer of the  
            provider.


            (3) The account belonging to the deceased user has been  
            identified with specificity, including a unique identifier  
            assigned by the provider.


            (4) There are no other owners of, or persons or entities who  
            have registered with the electronic communication service with  
            respect to, the deceased user's account.








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            (5) Disclosure is not in violation of another applicable  
            federal or state law.


            (6) The request for disclosure is narrowly tailored to the  
            purpose of administering the estate.


            (7) The executor or administrator demonstrates a good faith  
            belief that the information requested is relevant to resolve  
            issues regarding assets or liabilities of the estate.


            (8) The request seeks information spanning no more than 18  
            months prior to the date of death, or the requester has made a  
            specific request for information older than 18 months prior to  
            the date of death.


          Author's amendment to clarify that a specific request for  
          information older than 18 months must be honored, if made.  As  
          currently in print, the bill requires a finding of fact that the  
          estate administrator's request seeks information spanning no  
          more than 18 months prior to the decedent's date of death, or  
          that the requester has provided evidence of a need to obtain  
          information going back more than 18 months.  Because the request  
          for disclosure already must be narrowly tailored to the purpose  
          of administering the estate, there is less justification to  
          impose an arbitrary 18-month time limit on the information that  
          may be disclosed without requiring presentation of evidence not  
          otherwise defined in the bill.  Accordingly, the author proposes  
          to amend the bill to remove the presentation of evidence  
          requirement, and instead require the provider to disclose  
          information older than 18 months whenever a specific request for  
          information older than 18 months is made.  The amendment is:










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               On page 3, lines 12-13, strike "provided evidence of a need  
               to obtain information more than" and replace with "made a  
               request for information that specifically requests data  
               older than"


          Author's amendments clarify rules for determining that a request  
          for information creates an undue burden for the provider.  The  
          bill authorizes a court, in response to a motion to quash or  
          modify an order compelling disclosure of a user's records or  
          contents, to modify the order to the extent that it finds that  
          compliance with the order would cause an undue burden on the  
          provider.  The bill provides that the term "undue burden" shall  
          be interpreted consistently with Section 2031.310 of the Code of  
          Civil Procedure, relating to undue burden in response to a  
          demand for inspection in civil discovery. According to the  
          author, the intent of the undue burden provision is "to address  
          scenarios where [the estate] demands production of an  
          overwhelming amount of contents, for example, dozens of  
          terabytes." 


          Requests for large amounts of information obviously pose cost  
          and inconvenience problems for service providers, and under this  
          bill, such requests should be rare since any request must also  
          be narrowly tailored to the purpose of administering the estate.  
           Such concerns are mitigated, however, when the requester is  
          willing to pay the costs of obtaining the information.  In  
          response to concerns that the undue burden provision should not  
          be construed to prevent disclosure when the requester will pay  
          the provider's costs, the author proposes the following  
          amendments:


               On page 4, line 13, after "burden," insert the following:


               "However, a cost that the requester offers to pay pursuant  
               to subdivision (3) shall not be considered when a court is  








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               making a determination whether a request constitutes an  
               undue burden."


               On page 4, line 20, insert the following: 


               "(e) A provider may require the requester to pay the direct  
               costs of producing a copy of the record or other  
               information pertaining to the account of the deceased, when  
               those records are not already available for production  
               during the ordinary course of business."


          ARGUMENTS IN SUPPORT:  NetChoice, a trade association of  
          e-Commerce and online businesses based in Washington, DC, writes  
          in support of the bill:





               We recognize the need of fiduciaries to wrap up estates  
               and some of the challenges fiduciaries face when it comes  
               to accessing electronic communications of the deceased.  
               At the same time we need to respect the privacy  
               expectations of the deceased, the privacy of those with  
               whom they communicated, and federal privacy law. To that  
               end, the PEAC Act achieves a balance for all these  
               concerns.


               That is why the PEAC Act is supported by the online  
               industry and was created with input from privacy  
               advocates such as the ACLU, Center for Democracy and  
               Technology, and Electronic Frontier Foundation.  Under  
               the PEAC Act, California would allow its citizens to  
               choose their afterlife privacy while allowing the  
               fiduciary to wrap up the estate and comply with federal  








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               law.  


               It's not just our view that AB 691 is the correct  
               approach. It's also what your constituents believe. The  
               national polling firm Zogby Analytics surveyed adults  
               across age, demographics, and political spectrums on this  
               issue. Zogby's poll found by nearly 5 to 1 that Americans  
               support the approach of the PEAC Act. Over 70% of  
               Americans say their private online communications and  
               photos should remain private after they die, unless they  
               gave prior consent for others to access. Only 15% say  
               that estate attorneys should control their private  
               communications and photos, even if they gave no prior  
               consent for sharing.


               The PEAC Act gives users the privacy defaults they want.  
               Just 15% said an estate attorney should make the decision  
               about sharing their private communications and photos.  
               43% say these items should be deleted upon proof of  
               death. 30% say their estate could access these items only  
               if they gave prior consent. These results match the  
               approach found in the PEAC Act.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Online (AOL)


          California Chamber of Commerce









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          Civil Justice Association of California (CJAC)


          Facebook


          Internet Association


          NetChoice


          Service Employees International Union (SEIU)


          State Privacy and Security Coalition, Inc.


          TechAmerica


          Yahoo




          Opposition


          None on file




          Analysis Prepared by:Anthony Lew / JUD. / (916) 319-2334











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