BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1541


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          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))










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          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  








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            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


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          Analysis Prepared by:Jennie Bretschneider / P. & C.P. / (916)  
          319-2200