BILL NUMBER: AB 1993	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Irwin

                        FEBRUARY 16, 2016

   An act to add Section 1502.7 to the Corporations Code, and to add
Section 1524.4 to the Penal Code, relating to law enforcement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1993, as introduced, Irwin. Corporate law enforcement contacts.

   (1) Existing law authorizes a court or magistrate to issue a
warrant for the search of a place and the seizure of property or
things identified in the warrant where there is probable cause to
believe that specified grounds exist. Existing law also establishes
procedures for certain California corporations when served with a
warrant issued by a court in another state.
   This bill would require the Attorney General to, by July 1, 2017,
establish minimum qualifications for a corporate law enforcement
contact and would require specified corporations to designate a
corporate law enforcement contact that meets those minimum
qualifications. The bill would require those corporations to file a
statement with the Secretary of State identifying the corporate law
enforcement contact, as specified, and would prohibit the public
disclosure of that statement. The bill would require the Secretary of
State, on or before October 1, 2017, and annually thereafter, to
transmit to the Attorney General, in the manner prescribed by the
Attorney General, a copy of the current statement for each
corporation, and would require the Attorney General to distribute to
local law enforcement agencies a list of corporate law enforcement
contacts created from the statements that he or she receives from the
Secretary of State. The bill would require a corporation subject to
these provisions to respond to a properly served warrant within 5
business days.
   (2) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
   This bill would make legislative findings to that effect.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1502.7 is added to the Corporations Code, to
read:
   1502.7.  (a) Every corporation described in subdivision (a) of
Section 1524.4 of the Penal Code shall file, within 90 days after the
filing of its original articles and annually thereafter during the
applicable filing period, a statement identifying the corporate law
enforcement contact designated pursuant to Section 1524.4 of the
Penal Code.
   (b) For the purposes of this section, the applicable filing period
for a corporation shall be the calendar month during which its
original articles were filed and the immediately preceding five
calendar months. The Secretary of State shall provide a notice to
each corporation to comply with this section approximately three
months prior to the close of the applicable filing period. The notice
shall state the due date for compliance and shall be sent to the
last address of the corporation according to the records of the
Secretary of State or to the last electronic mail address according
to the records of the Secretary of State if the corporation has
elected to receive notices from the Secretary of State by electronic
mail. The failure of the corporation to receive the notice is not an
excuse for failure to comply with this section.
   (c) The Secretary of State may destroy or otherwise dispose of any
statement filed pursuant to this section after it has been
superseded by the filing of a new statement.
   (d) On or before October 1, 2017, and annually thereafter, the
Secretary of State shall transmit to the Attorney General, in the
manner prescribed by the Attorney General, a copy of the current
statement made pursuant to this section for each corporation.
   (e) If the corporate law enforcement contact is no longer employed
by the corporation, the corporation shall forthwith file a statement
identifying the new corporate law enforcement contact designated
pursuant to Section 1524.4 of the Penal Code.
   (f) A statement filed pursuant to this section is confidential and
shall not be disclosed pursuant to any state law, including, but not
limited to, the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1).
  SEC. 2.  Section 1524.4 is added to the Penal Code, to read:
   1524.4.  (a) This section applies to a corporation that generates
customer data for 1,000,000 or more people annually from any of the
following:
   (1) Data searches.
   (2) Geolocation data.
   (3) Social media, as defined in Section 980 of the Labor Code.
   (b) (1) A corporation described in subdivision (a) shall designate
a corporate law enforcement contact that meets the qualifications
established pursuant to paragraph (1) of subdivision (c). If the
corporate law enforcement contact is no longer employed by the
corporation, the corporation shall forthwith designate a new
corporate law enforcement contact.
   (2) When properly served with a search warrant issued by the
California court, a corporation described in subdivision (a) shall
provide to the peace officer to whom the search warrant was issued
pursuant to subdivision (a) of Section 1528, all records sought
pursuant to that warrant within five business days of receipt,
including those records maintained or located outside this state.
   (c) (1) The Attorney General shall, by July 1, 2017, establish
minimum qualifications for a corporate law enforcement contact,
including, but not limited to, a requirement that the contact have
continual availability and authority to make decisions regarding
warrants and the disclosure of information and data.
   (2) The Attorney General shall, annually, distribute a list of
corporate law enforcement contacts created from the statements that
he or she receives from the Secretary of State pursuant to Section
1502.7 of the Corporations Code to local law enforcement agencies.
  SEC. 3.  The Legislature finds and declares that Section 1 of this
act, which adds Section 1502.7 of the Corporations Code, imposes a
limitation on the public's right of access to the meetings of public
bodies or the writings of public officials and agencies within the
meaning of Section 3 of Article I of the California Constitution.
Pursuant to that constitutional provision, the Legislature makes the
following findings to demonstrate the interest protected by this
limitation and the need for protecting that interest:
   Prohibiting the disclosure of statements filed by corporations
that designate a corporate law enforcement contact protects the
internal business processes of private businesses from unnecessary
intrusion and facilities communication between law enforcement and
private businesses regarding necessary information that protects
public health and safety.