BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2799


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2799 (Chau)


          As Amended  June 21, 2016


          Majority vote


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          Original Committee Reference:  P. & C.P.


          SUMMARY:  Prohibits operators of Internet Web sites, online  
          services, and mobile apps that are designed, marketed and used  
          primarily for prekindergarten and preschool pupils, from using  
          data about those pupils for targeting, marketing or profiling,  
          and prohibits selling or disclosing a pupil's information with  
          limited exceptions.  


          The Senate amendments make technical and clarifying changes. 


          EXISTING LAW:  


          1)Establishes the Student Online Privacy Protection Act  
            (SOPIPA), which prohibits an operator of a Web site, online  
            service, online application, or mobile application from  
            knowingly engaging in targeted advertising to students or  








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            their parents or legal guardians using covered information, as  
            defined, amassing a profile of a K-12 student, selling a  
            student's information, or disclosing covered information, as  
            provided.  (Business and Professions Code Section (BPC)  
            22584-85)


          2)Defines an "Operator" as the operator of a Web site, online  
            service, online application, or mobile application with actual  
            knowledge that the site, service, or application is used  
            primarily for K-12 school purposes and was designed and  
            marketed for K-12 school purposes.  (BPC 22584(a))


          3)Requires an Operator 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 its Web site to conspicuously post  
            its privacy policy.  (BPC 22575)


          4)Protects, pursuant to the federal Family Educational Rights  
            and Privacy Act (FERPA), the confidentiality of educational  
            records (and personally identifiable information contained  
            therein) by prohibiting the funding of schools that permit the  
            release of those records.  It applies to all schools that  
            receive funds under an applicable program of the United States  
            (U.S.) Department of Education.  Generally, schools must have  
            written permission from the parent or eligible student in  
            order to release any information from a student's education  
            record.  FERPA's prohibition only applies to the school itself  
            and contains various exemptions where the data may be released  
            without the written consent of the parents.  (20 United States  
            Code Section (U.S.C.) 1232g(b)(1))


          5)Prohibits, pursuant to the federal Children's Online Privacy  
            Protection Act of 1998, an Operator of a Web site or online  
            service directed to pupils under the age of 13 from collecting  
            personal information from a pupil, including a pupil's first  
            and last name, home or other physical address including street  
            name and name of a city or town, e-mail address, telephone  








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            number, or Social Security number.  (5 U.S.C. 6501-6505)


          FISCAL EFFECT:  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.  


          COMMENTS:  In 2014, California became the national leader on  
          student privacy protections with the unanimous passage of SB  
          1177 (Steinberg), Chapter 839, known as SOPIPA.  SOPIPA went  
          into effect on January 1, 2016, and mandates privacy and data  
          security requirements on Web sites, online services, and mobile  
          apps that are designed, marketed and used primarily for K-12  
          students.  


          SOPIPA was passed in response to the massive amounts of  
          sensitive student data that online educational products and  
          services were collecting about students, including academic  
          performance, health records, and personal interests.  However,  
          SOPIPA only applies to K-12 students, leaving younger children  
          in preschool and pre-kindergarten classrooms without the same  
          privacy protections, despite the fact that many were using  
          educational technology.


          This bill, dubbed the "Early Learning Personal Information  
          Protection Act," is modeled on SOPIPA and expands the same  
          privacy and data security requirements that exist today for K-12  
          oriented Web sites, online services, and mobile apps to those  
          designed primarily for prekindergarten and preschool pupils. 


          The major provisions of this bill would:


          1)Prohibit using pupils' personal information for targeted  
            advertising;


          2)Prohibit using pupils' personal information for profiling  
            (except for school purposes);








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          3)Prohibit selling pupils' personal information;


          4)Prohibit disclosing pupils' personal information (with limited  
            exceptions to permit site functionality or as required by  
            law);


          5)Require reasonable data security for the pupils' information;  
            and


          6)Require companies to delete pupils' information upon the  
            school's request.


          Analysis Prepared by:                                             
                          Jennie Bretschneider / P. & C.P. / (916)  
                          319-2200                                         
          FN: 0003608