BILL ANALYSIS Ó AB 925 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 925 (Low) - As Amended May 11, 2015 ----------------------------------------------------------------- |Policy |Public Safety |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 925 Page 3 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 Page 4