BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 925


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          925 (Low) - As Amended May 11, 2015


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          Urgency:  No  State Mandated Local Program:   YesReimbursable:   
          Yes


          SUMMARY:


          This bill exempts the first 20 seconds of a telephonic  
          communication between a person or business and a current or  
          former customer from any illegal non-consensual recording  








                                                                     AB 925


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          prohibitions.  Also requires the Department of Justice (DOJ), by  
          January 1, 2017, to report to the Legislature the number of  
          people charged with violating this section of law during the  
          preceding year. 
          
          FISCAL EFFECT:


          Moderate costs to DOJ in excess to $150,000 (GF) to capture this  
          civil action from 58 different counties; the required  
          information is not currently reported by local law enforcement  
          agencies. 


          Potential reimbursable state mandated cost (GF) on county  
          district attorneys to report the number of people charged with  
          violating the law in a format yet to be developed by DOJ.  If  
          the cost of submitting the information by a county exceeds  
          $10,000 in the largest 15 counties, this mandated cost will  
          exceed $150,000. 


          COMMENTS:


          Purpose  According to the author, "The legislature initially  
          enacted [the California Invasion of Privacy Act] CIPA in 1967  
          and amongst its provisions, made it illegal to intentionally  
          intercept or record confidential communications by means of a  
          telegraph, telephone or other device under Penal Code 632.  With  
          the advent and proliferation of cellular and cordless  
          telephones, the legislature updated CIPA by enacting Penal Code  
          632.7 which applies to mobile phones.  Specifically, it ensured  
          that communications conducted with a cellular device are not  
          intentionally recorded without consent of the parties.  But  
          unlike Penal Code 632, this section does not distinguish between  
          confidential and non-confidential calls.  As such, courts have  
          been compelled by the plain language of Penal Code 632.7 to  
          require consent prior to recording any portion of all calls made  








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          to persons on a mobile phone, regardless of whether confidential  
          information is discussed."  

          "Unfortunately, this has led to illogical outcomes where calls  
          to customers are legal if they are on a land line but not if  
          they're on a mobile phone.  We have recently seen a number of  
          examples of lawsuits filed based on entirely routine and benign  
          conduct. For example, one class action alleged a violation of  
          632.7 based on the recording of a conversation where the  
          answering party stated that the caller had dialed the wrong  
          number and the call ends before any recording disclosure is  
          given. Although the conversation lasted only a few seconds and  
          contained no confidential or private information, plaintiffs  
          sought extensive damages under Section 632.7.

          "AB 925 seeks to harmonize Penal Code 632 and 632.7 by creating  
          a very narrow exception for these non-confidential calls.  It  
          only intends to capture the brief non-confidential communication  
          between a business and a customer prior to providing the  
          recording disclosure.  Practically, this would include an  
          introductory conversation to identify the parties and purpose of  
          the call."  

          "This bill will not remove the CIPA requirement to obtain the  
          consent of a party prior to recording a confidential  
          communication.  AB 925's limited language cleans up the  
          arbitrary distinction between land lines and mobile phones for a  
          very distinct type of call."

          The committee may wish to delay date of the report to July 1,  
          2017 to allow ample time for local agencies to submit the  
          necessary information to DOJ.  




          Analysis Prepared by:Pedro R. Reyes / APPR. / (916)  
          319-2081









                                                                     AB 925


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