BILL ANALYSIS Ó AB 1541 Page 1 Date of Hearing: May 5, 2015 ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION Mike Gatto, Chair AB 1541 (Committee on Privacy and Consumer Protection) - As Amended April 29, 2015 SUBJECT: Privacy: personal information SUMMARY: Makes technical or nonsubstantive corrections and clarification to existing privacy-related law. Specifically, this bill updates the definition of "personal information" in the information security law. EXISTING LAW: 1)Establishes the Data Breach Notification Law (DBNL), which defines "personal information" to include the individual's first name or first initial and last name in combination with one or more of the following data elements, when either the name or the data elements are not encrypted: Social Security number; driver's license number or California Identification Card number; 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; medical information; or health insurance information. (Civil Code (CC) Sections 1798.29(g), (h), 1798.82(h), (i)) AB 1541 Page 2 2)Establishes the information security law, which requires a 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, and which defines "personal information" as 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: Social security number; driver's license number or California identification card number; 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; medical information, but does not include health insurance information or a username or email address, in combination with a password or security question and answer that would permit access to an online account. (CC 1798.81.5) FISCAL EFFECT: None. This bill has been keyed non-fiscal by the Legislative Counsel. COMMENTS: 1)Purpose of this bill . This omnibus bill makes technical or nonsubstantive corrections and clarification to existing law within the Committee's jurisdiction. This bill is sponsored by the Assembly Privacy and Consumer Protection Committee. 2)Author's statement . This bill is the Committee "omnibus" bill, intended to make clarifying and non-controversial changes to the state's privacy protection laws. 3)Updating the definition of "personal information." This bill updates the definition of "personal information" in the AB 1541 Page 3 information security law. The law requires businesses to use reasonable security measures to protect personal information. Historically, the definition of "personal information" in this law has mirrored the definition found in the DBNL. However, in recent years, the Legislature has expanded the definition of "personal information" in the DBNL to include health insurance information as well as a user name and password (or related information allowing access to an online account). This bill adds health insurance information and a username or email address, in combination with a password or security question and answer that would permit access to an online account to the definition of "personal information" in the information security law to keep the statutes consistent. REGISTERED SUPPORT / OPPOSITION: Support None on file. Opposition None on file. AB 1541 Page 4 Analysis Prepared by:Jennie Bretschneider / P. & C.P. / (916) 319-2200