Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2623


Introduced by Assembly Member Gordon

February 19, 2016


begin deleteAn act to amend Section 82016 of the Government Code, relating to the Political Reform Act of 1974. end deletebegin insertAn act to add Section 22575.5 to the Business and Professions Code, relating to privacy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2623, as amended, Gordon. begin deletePolitical Reform Act of 1974: controlled committees. end deletebegin insertInternet privacy policy: commercial operator: short form.end insert

begin insert

Existing law requires an operator, as defined, of a commercial Web site or online service that collects personally identifiable information through the Internet about individual consumers residing in California who use or visit the commercial Web site or online service to conspicuously post, or make available, its privacy policy, as specified. Under existing law, an operator is in violation if the operator fails to post its policy within 30 days after being notified of noncompliance or if the operator’s failure to comply with the requirements, or with the provisions of its posted policy, is knowing and willful or negligent and material.

end insert
begin insert

This bill would additionally require the operator to provide a short form of the privacy policy to a consumer at the beginning of the privacy policy and, if the commercial Internet Web site or online service provides the consumer with a user licensing agreement or terms of service, above the agreement or terms, as specified. The bill would provide that an operator is in violation of this requirement only if the operator knowingly and willfully fails to comply with the requirement or if the operator fails to post its privacy policy short form within 30 days after being notified of noncompliance.

end insert
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The Political Reform Act of 1974 defines various terms for purposes of the reporting and disclosure requirements of the act. The act defines a controlled committee as a committee that is controlled directly or indirectly by a candidate or state measure proponent or that acts jointly with a candidate, controlled committee, or state measure proponent in connection with the making of expenditures. The act provides that a candidate or state measure proponent controls a committee if he or she, or his or her agent, or any other committee he or she controls has a significant influence on the actions or decisions of the committee.

end delete
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This bill would establish a presumption that a committee is significantly influenced by a candidate for purposes of these provisions if any of several specified factors are satisfied. The bill would also make technical, nonsubstantive changes to that provision.

end delete
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The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 23 vote of each house and compliance with specified procedural requirements.

end delete
begin delete

This bill would declare that it furthers the purposes of the act.

end delete

Vote: begin delete23 end deletebegin insertmajorityend insert. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 22575.5 is added to the end insertbegin insertBusiness and
2Professions Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert22575.5.end insert  

(a) An operator of a commercial Internet Web site
4or online service that is required to post or make available its
5privacy policy pursuant to Section 22575 shall provide a short
6form of the privacy policy to a consumer at the beginning of the
7privacy policy and, if the commercial Internet Web site or online
8service provides the consumer with a user licensing agreement or
9terms of service, at the beginning of the agreement or terms.

10(b) The short form required by subdivision (a) shall do all of
11the following:

12(1) List the categories of personally identifiable information
13identified in the privacy policy pursuant to paragraph (1) of
P3    1subdivision (b) of Section 22575, using the following specific
2descriptions:

3(A) For information described in paragraphs (1) to (6),
4inclusive, of subdivision (a) of Section 22577, the descriptions
5used in those paragraphs.

6(B) For information described in paragraph (7) of subdivision
7(a) of Section 22577, the following descriptions:

8(i) Browser history.

9(ii) Phone or text logs.

10(iii) Contact lists.

11(iv) Biometrics.

12(v) Financial information.

13(vi) Health, medical, or therapeutic information.

14(vii) Location.

15(viii) User files.

16(2) (A) List the categories of third-party persons or entities
17identified in the privacy policy pursuant to paragraph (1) of
18subdivision (b) of Section 22575, using the following specific
19descriptions:

20(i) Advertising networks.

21(ii) Telecommunication carriers.

22(iii) Commercial data resellers.

23(iv) Data analytics providers.

24(v) Operating systems and platforms.

25(vi) Social networks.

26(B) Compliance with subparagraph (A) is not required when a
27contract between the commercial Internet Web site or online
28service and the third party explicitly does both of the following:

29(i) Limits the uses of the information provided by the commercial
30Internet Web site or online service to the third party solely to
31provide a service to, or on behalf of, the commercial Internet Web
32site or online service.

33(ii) Prohibits the sharing of the consumer information by that
34third party with subsequent third parties.

35(3) State whether or not the operator maintains a process that,
36if maintained, would be required to be described by the privacy
37policy pursuant to paragraph (2) of subdivision (b) of Section
3822575.

39(4) If the operator satisfies the requirements of paragraph (5)
40of subdivision (b) of Section 22575 by providing a hyperlink
P4    1pursuant to paragraph (7) of subdivision (b) of Section 22575,
2include a hyperlink to the same online location.

3(c) An operator shall be in violation of this section only if the
4operator knowingly and willfully fails to comply with this section
5or if the operator fails to post its privacy policy short form within
630 days after being notified of noncompliance.

end insert
begin delete
7

SECTION 1.  

Section 82016 of the Government Code is
8amended to read:

9

82016.  

(a) “Controlled committee” means a committee that
10is controlled, directly or indirectly, by a candidate or state measure
11proponent or that acts jointly with a candidate, controlled
12committee, or state measure proponent in connection with the
13making of expenditures. A candidate or state measure proponent
14controls a committee if he or she, his or her agent, or any other
15committee he or she controls has a significant influence on the
16actions or decisions of the committee.

17(b) Notwithstanding subdivision (a), a political party committee,
18as defined in Section 85205, is not a controlled committee.

19(c) For purposes of subdivision (a), a committee is presumed
20to be significantly influenced by a candidate, his or her agent, or
21another committee he or she controls if any of the following are
22satisfied:

23(1) The candidate, or his or her agent, is a voting member of
24the committee’s governing body.

25(2) The candidate, or his or her agent, is involved in the
26decisionmaking of the committee, or the development or
27implementation of the committee’s campaign strategy.

28(3) The candidate, or his or her agent, is substantially involved
29in directing the day-to-day operations of the committee.

30

SEC. 2.  

The Legislature finds and declares that this bill furthers
31the purposes of the Political Reform Act of 1974 within the
32meaning of subdivision (a) of Section 81012 of the Government
33Code.

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