BILL NUMBER: AB 2623	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Gordon

                        FEBRUARY 19, 2016

    An act to amend Section 82016 of the Government Code,
relating to the Political Reform Act of 1974.   An act
to add Section 22575.5 to the Business and Professions Code, relating
to privacy. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2623, as amended, Gordon.  Political Reform Act of
1974: controlled committees.   Internet privacy policy:
commercial operator: short form.  
   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.  
   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.  
   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.  
   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.  
   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 2/3 vote of each house and compliance with specified
procedural requirements.  
   This bill would declare that it furthers the purposes of the act.

   Vote:  2/3   majority . Appropriation:
no. Fiscal committee: no. State-mandated local program: no.


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

   SECTION 1.    Section 22575.5 is added to the 
 Business and Professions Code   , to read:  
   22575.5.  (a) An operator of a commercial Internet Web site or
online service that is required to post or make available its privacy
policy pursuant to Section 22575 shall 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, at
the beginning of the agreement or terms.
   (b) The short form required by subdivision (a) shall do all of the
following:
   (1) List the categories of personally identifiable information
identified in the privacy policy pursuant to paragraph (1) of
subdivision (b) of Section 22575, using the following specific
descriptions:
   (A) For information described in paragraphs (1) to (6), inclusive,
of subdivision (a) of Section 22577, the descriptions used in those
paragraphs.
   (B) For information described in paragraph (7) of subdivision (a)
of Section 22577, the following descriptions:
   (i) Browser history.
   (ii) Phone or text logs.
   (iii) Contact lists.
   (iv) Biometrics.
   (v) Financial information.
   (vi) Health, medical, or therapeutic information.
   (vii) Location.
   (viii) User files.
   (2) (A) List the categories of third-party persons or entities
identified in the privacy policy pursuant to paragraph (1) of
subdivision (b) of Section 22575, using the following specific
descriptions:
   (i) Advertising networks.
   (ii) Telecommunication carriers.
   (iii) Commercial data resellers.
   (iv) Data analytics providers.
   (v) Operating systems and platforms.
   (vi) Social networks.
   (B) Compliance with subparagraph (A) is not required when a
contract between the commercial Internet Web site or online service
and the third party explicitly does both of the following:
   (i) Limits the uses of the information provided by the commercial
Internet Web site or online service to the third party solely to
provide a service to, or on behalf of, the commercial Internet Web
site or online service.
   (ii) Prohibits the sharing of the consumer information by that
third party with subsequent third parties.
   (3) State whether or not the operator maintains a process that, if
maintained, would be required to be described by the privacy policy
pursuant to paragraph (2) of subdivision (b) of Section 22575.
   (4) If the operator satisfies the requirements of paragraph (5) of
subdivision (b) of Section 22575 by providing a hyperlink pursuant
to paragraph (7) of subdivision (b) of Section 22575, include a
hyperlink to the same online location.
   (c) An operator shall be in violation of this section only if the
operator knowingly and willfully fails to comply with this section or
if the operator fails to post its privacy policy short form within
30 days after being notified of noncompliance.  
  SECTION 1.    Section 82016 of the Government Code
is amended to read:
   82016.  (a) "Controlled committee" means 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. A candidate or state measure proponent controls a
committee if he or she, his or her agent, or any other committee he
or she controls has a significant influence on the actions or
decisions of the committee.
   (b) Notwithstanding subdivision (a), a political party committee,
as defined in Section 85205, is not a controlled committee.
   (c) For purposes of subdivision (a), a committee is presumed to be
significantly influenced by a candidate, his or her agent, or
another committee he or she controls if any of the following are
satisfied:
   (1) The candidate, or his or her agent, is a voting member of the
committee's governing body.
   (2) The candidate, or his or her agent, is involved in the
decisionmaking of the committee, or the development or implementation
of the committee's campaign strategy.
   (3) The candidate, or his or her agent, is substantially involved
in directing the day-to-day operations of the committee. 

  SEC. 2.    The Legislature finds and declares that
this bill furthers the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.