BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1541|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
CONSENT
Bill No: AB 1541
Author: Committee on Privacy and Consumer Protection
Amended: 4/29/15 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE: 7-0, 6/16/15
AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,
Wieckowski
ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) - See last page for
vote
SUBJECT: Privacy: personal information
SOURCE: Author
DIGEST: This bill revises the definition of personal
information to include health insurance information, as defined,
and a username or email address combined with a password or
security question and answer for access to an online account.
ANALYSIS:
Existing law:
1)Requires a business that owns or licenses 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,
AB 1541
Page 2
modification, or disclosure. (Civ. Code Sec. 1798.81.5(b).)
2)Provides that a business that discloses personal information
about a California resident pursuant to a contract with a
nonaffiliated third party shall require by contract that the
third party 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. (Civ. Code Sec. 1798.81.5(c).)
3)Defines "personal information" to include: 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; and
medical information. (Civ. Code Sec. 1798.81.5.)
This bill includes in the above definition, 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.
Background
AB 1541 is the Assembly Privacy and Consumer Protection
Committee omnibus bill. By tradition, the provisions included
in an omnibus are generally technical and non-controversial in
nature, so any member of the Committee who objects to a specific
provision may request that it be removed from the measure.
FISCAL EFFECT: Appropriation: No Fiscal
AB 1541
Page 3
Com.:NoLocal: No
SUPPORT: (Verified6/19/15)
None received
OPPOSITION: (Verified6/19/15)
None received
ARGUMENTS IN SUPPORT:
The author writes:
In recent years, the Legislature has expanded the definition
of "personal information" in the Data Breach Notification
Law (DBNL) to include health insurance information as well
as a user name and password (or related information allowing
access to an online account). The DBNL definition no longer
mirrors the information security law definition.
This bill updates the definition of "personal information"
in the information security law (Civ. Code 1798.81.5). 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 (Civ. Code Secs.
1798.29 and 1798.82).
ASSEMBLY FLOOR: 78-0, 5/14/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
AB 1541
Page 4
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Linder, Medina
Prepared by:Nichole Rapier / JUD. / (916) 651-4113
6/19/15 14:34:12
**** END ****