BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 178|
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                                   THIRD READING 


          Bill No:  SB 178
          Author:   Leno (D) and Anderson (R) et.al.
          Amended:  6/2/15  
          Vote:     27  

           SENATE PUBLIC SAFETY COMMITTEE:  6-1, 3/24/15
           AYES:  Hancock, Anderson, Leno, Liu, McGuire, Monning
           NOES:  Stone

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Privacy:  electronic communications:  search warrant


          SOURCE:    American Civil Liberties Union
                     California Newspaper Publishers Association


          DIGEST:  This bill requires a search warrant or wiretap order  
          for access to all aspects of electronic communications except  
          where federal law allows voluntary disclosure.


          ANALYSIS:   


          Existing law: 

          1)The US Constitution provides that "the right of the people to  
            be secure in their persons, houses, papers, and effects,  
            against unreasonable searches and seizures, shall not be  
            violated, and no Warrants shall issue, but upon probable  








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            cause, supported by Oath or affirmation, and particularly  
            describing the place to be searched an the persons or things  
            to be seized." (4th Amendment of the U.S. Constitution.)

          2)The California Constitution provides that "the right of the  
            people to be secure in their persons, houses, papers and  
            effects against unreasonable seizures and searches may not be  
            violated; and a warrant may not issue except on probable  
            cause, supported by oath or affirmation, particularly  
            describing the place to be searched and the persons and things  
            to be seized." (Article I, Section 13 of the California  
            Constitution.)

          3)Existing law defines a "search warrant" as an order in writing  
            in the name of the People, signed by a magistrate, directed to  
            a peace officer, commanding him or her to search for a person  
            or persons, a thing or things, or personal property, and in  
            the case of a thing or things or personal property, bring the  
            same before the magistrate.  (Penal Code § 1523.)

          4)Provides that a search warrant may be issued  only upon  
            specified grounds. (Penal Code § 1524(a).)
           
          5)Sets forth procedures for a search warrant issued for records  
            of a foreign corporation that provides electronic  
            communication services or remote computing services to the  
            general public, where those records would reveal the identity  
            of the customers using services, data stored by, or on behalf  
            of, the customer, the customer's usage of those services, the  
            recipient or destination of communications sent to or from  
            those customers, or the content of those communications.  
            (Penal Code § 154.2)

          6)Provides that a provider of electronic communication or remote  
            computing service shall disclose to a governmental prosecuting  
            or investigating agency the name, address, local and long  
            distance toll billing records, telephone number or other  
            subscriber number or identity, and length of service of a  
            subscriber to a customer of that service and types of services  
            the subscriber or customer utilized when the governmental  
            entity is granted a search warrant. (Penal Code § 1524.3(a))

          7)Provides that a provider of wire or electronic communication  
            services or a remote computing service, upon the request of a  







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            peace officer, shall take all necessary steps to preserve  
            records and other evidence in its possession pending the  
            issuance of a search warrant or a request in writing and an  
            affidavit declaring an intent to file a warrant to the  
            provider.  Records shall be retained for a period of 90 days  
            which shall be extended for an additional 90-day upon a  
            renewed request by the peace officer. (Penal Code § 1524.3(d))
           
           8)Provides that a search warrant cannot be issued but upon  
            probable cause, supported by affidavit, naming or describing  
            the person to be searched or searched for, and particularly  
            describing the property, thing or things and the place to be  
            searched. (Penal Code § 1525.)

          9)Authorizes the Attorney General, chief deputy attorney  
            general, chief assistant attorney general, district attorney  
            or the district attorney's designee to apply to the presiding  
            judge of the superior court for an order authorizing the  
            interception of wire or electronic communications under  
            specified circumstances.  (Penal Code §§ 629.50 et. seq.)

          This bill: 

            1)  Creates the Electronic Communications Privacy Act.

            2)  Provides that except as otherwise provided a government  
              entity shall not do any of the following:

                       Compel the production of or access to electronic  
                  device information from any person or entity except the  
                  authorized processor of the device;

                       Compel the production of or access to electronic  
                  device information from any person or entity except the  
                  authorized processor of the device; or,

                       Access electronic device information by means of  
                  physical interaction or electronic communication with  
                  the device, except with the specific consent of the  
                  authorized processor of the device.

            1)  Provides that a government entity may compel the  
              production of or access to electronic communication  
              information or electronic communication with the device  







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              information by means of physical interaction with the device  
              only pursuant to a wiretap order or pursuant to a search  
              warrant provided that the warrant shall not compel the  
              production of or authorize access to the contents of any  
              electronic communication initiated after the issuance of the  
              warrant.

            2)  Provides that a government entity may access electronic  
              device information by means of the physical interaction or  
              electronic communication with the device only as follows:

                       In accordance with a wiretap order or search  
                  warrant issued pursuant to the appropriate Penal Code  
                  provision, provided that a warrant shall not authorize  
                  accessing the contents of any electronic communication  
                  initiated after the issuance of the warrant;

                       With the specific consent of the owner or  
                  authorized possessor of the device, when a government  
                  entity is the intended recipient of an electronic  
                  communication initiated by the owner or authorized  
                  possessor of the device;

                       With the specific consent of the owner of the  
                  device when the device has been reported lost or stolen;

                       If the government entity, in good faith, believes  
                  that an emergency involving imminent danger of death or  
                  serious physical injury to any person requires access to  
                  the electronic device information; and,

                       If the government entity, in good faith, believes  
                  the device to be lost, stolen, or abandoned, provided  
                  that the entity shall only access electronic device  
                  information in order to attempt to identify, verify, or  
                  contact the owner or authorized possessor of the device.

            1)  Provides that the warrant or order shall be limited to  
              only that information necessary to achieve the objective of  
              the warrant or wiretap order, including specifying the  
              target individuals or accounts, the applications or  
              services, the types of information, and the time periods  
              covered.








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            2)  Provides that the warrant or order shall identify the  
              effective date upon which the warrant is to be executed, not  
              to exceed 10 days from the date the warrant is signed, or  
              explicitly state whether the warrant or wiretap order  
              encompasses any information created after its issuance.

            3)  Provides that the warrant or order shall comply with all  
              other provisions of California and federal law, including  
              any provision prohibiting, limiting or imposing additional  
              requirements on the use of search warrants or wiretap  
              orders.

            4)  Provides that when issuing any warrant or wiretap order  
              the court may do any of the following:

                       Appoint a special master to ensure only  
                  information necessary to achieve the objective of the  
                  warrant or order is produced or accessed; or,

                       Require any information obtained through the  
                  execution of the warrant or order that is unrelated be  
                  destroyed.

            1)  Provides that a service provider may disclose, but is not  
              required to disclose, electronic communication information  
              or subscriber information when disclosure is not otherwise  
              prohibited by law.

            2)  Provides that if a government entity receives electronic  
              communication without a warrant or order, it shall delete  
              the information within 90 days unless the entity has or  
              obtains the specific consent or the sender of the sender or  
              recipient about which the information was disclosed or  
              obtains a court order authorizing the retention of the  
              information, and specifies when the court shall order a  
              retention order.

            3)  Provides that if a government entity requests that a  
              service provider disclose information or if the government  
              entity obtains information involving the danger of death or  
              serious physical injury to a person, that requires access to  
              the electronic information without delay, the entity shall  
              within three days after seeking the disclosure, file with  
              the court a motion seeking approval of the requested  







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              emergency disclosures and shall set forth the facts giving  
              rise to the emergency.  If the court finds the facts did not  
              give rise to the emergency the court shall order the  
              information destroyed.

            4)  Provides  that it does not limit the authority of a  
              government to use administrative, grand jury, trial or civil  
              discovery subpoena to do either of the following:

                       Require an originator, addressee, or intended  
                  recipient of an electronic communication to disclose any  
                  electronic communication information associated with  
                  that communication; or,

                       Require an entity that provides electronic  
                  communications services to its officers, directors,  
                  employees, or agents to disclose electronic  
                  communication information associated with an electronic  
                  communication to or from an officer, director, employee  
                  or agent of the entity.

            1)  Provides that except as otherwise provided the government  
              entity that executes a warrant or wiretap order or issues  
              and emergency request shall contemporaneously notice the  
              identified targets that the information about the recipient  
              has been compelled or requested and states with reasonable  
              specificity the nature of the government investigation under  
              which the information is sought.

            2)  Provides that when a wire tap order or search warrant is  
              sought the government entity may submit a request supported  
              by an affidavit for an order delaying notification and  
              prohibiting any party from providing information or  
              notifying any party it is being sought.  If the court  
              determines notification may have an adverse impact the court  
              may delay notification for up to 90 days with subsequent  
              extensions for 90 days.

            3)  Provides that except as proof of a violation of this  
              chapter, no evidence obtained or retained in violation of  
              this chapter shall be admissible in a criminal, civil or  
              administrative proceeding or used in an affidavit in an  
              effort to obtain a search warrant or court order.








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            4)  Provides that the Attorney General may commence a civil  
              action to compel any government entity to comply with the  
              provisions of this bill.

            5)  Provides that if a warrant or wiretap order does not  
              comply with this chapter, a service provider, or any other  
              recipient of the warrant or wiretap order, or any individual  
              whose information is target by the warrant or wiretap order,  
              may petition the court to void or modify the warrant or  
              order the destruction of any information obtained in  
              violation of the chapter.

            6)  Defines electronic communication information as any  
              information about an electronic communication or the use of  
              an electronic communication service, including, but not  
              limited to the contents, sender, recipients, format, or  
              location of the sender or recipients at any point during the  
              communication, the time or date the communication was  
              created, sent or received, or any information pertaining to  
              any individual or device participating in the communication  
              including, but not limited to an IP address but does not  
              include subscriber information.

            7)  Defines electronic communication service as a service that  
              provides its subscribers or users the ability to send or  
              receive electronic communications, including any service  
              that acts as an intermediary in the transmission of  
              electronic communications or stores electronic communication  
              information.

            8)  Defines electronic device as a device that stores,  
              generates, or transmits information in electronic form.

          Background

          Search and seizure generally: The 4th Amendment of the US  
          Constitution and Article I, Section 13 of the California  
          Constitution protect people against unreasonable searches and  
          seizures.  Generally, the lawfulness of a search of the items in  
          the arrestee's immediate control is based upon the need to  
          protect the officer and to discover evidence in the case.   This  
          has been found to include search of items when a person is  
          booked into jail on the theories that the time lag is  
          inconsequential;  it is less of an invasion than a public search  







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          at the place of arrest; is necessary for inventory purposes;  
          and, can protect from contraband being brought into the jail.    
          However, if the search is remote in time and the property has  
          been removed from the defendant's possession and is in the  
          control of the police, then a warrantless search has been found  
          not to be reasonable.  Numerous cases have looked at this issue  
          of when a search incident to arrest is valid.  (See for example:  
           U.S v. Robinson (1973) 414 U.S. 218; U.S. V. Edwards (1974) 415  
          U.S. 800; U.S. v. Chadwick (1977) 433 U.S. 1; N.Y. v. Belton   
          (1981) 453 U.S. 454;  People v. Hamilton (1988) 46 C. 3d 123) )  
          After Proposition 8 (June 1982), in California, the scope of a  
          search incident to arrest is based on federal law; thus,  
          California courts will look to the federal courts for precedent  
          when deciding a case.
          
          Wiretap generally: The United States Supreme Court ruled in Katz  
          v. United States (1967) 389 U.S. 347, 88 S.CT. 507, 19 L.ED.2D  
          576, that telephone conversations were protected by the Fourth  
          Amendment to the United States Constitution.  Intercepting a  
          conversation is a search and seizure similar to the search of a  
          citizen's home.  Thus, law enforcement is constitutionally  
          required to obtain a warrant based on probable cause and to give  
          notice and inventory of the search.
          
          In 1968, Congress authorized wiretapping by enacting Title III  
          of the Omnibus Crime Control and Safe Streets Act. (See 18 USC  
          Section 2510 et seq.)  Out of concern that telephonic  
          interceptions do not limit the search and seizure to only the  
          party named in the warrant, federal law prohibits electronic  
          surveillance except under carefully defined circumstances.  The  
          procedural steps provided in the Act require "strict adherence."  
           (United States v. Kalustian, 529 F.2d 585, 588 (9th Cir.  
          1976)), and "utmost scrutiny must be exercised to determine  
          whether wiretap orders conform to Title III.")
          
          Both Federal and California law requires that each wiretap  
          application include "a full and complete statement as to whether  
          or not other investigative procedures have been tried and failed  
          or why they reasonably appear to be unlikely to succeed if tried  
          or to be too dangerous."  (18 USC Section 2518 (1)(c); Penal  
          Code Section 629.50(d).)  Often referred to as the "necessity  
          requirement," it exists in order to limit the use of wiretaps,  
          which are highly intrusive.  (United States v. Bennett, 219 F.3d  
          1117, 1121 (9th Cir. 2000).)  The original intent of Congress in  







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          enacting such a provision was to ensure that wiretapping was not  
          resorted to in situations where traditional investigative  
          techniques would suffice to expose the crime.

          Recent supreme court cases: The fact that Fourth Amendment  
          protections extends to electronic information has been recently  
          affirmed by the United States Supreme Court.  

          In United States v. Riley, 134 S. Ct. 2473 (2014) involved two  
          cases. In the first case, the defendant (Riley) was stopped for  
          a traffic violation which lead to his arrest on a misdemeanor  
          firearms charge.  In the search incident to his arrest the  
          officer searched his phone and noticed terminology related to  
          gangs. The phone was further searched at the police station and  
          photos and videos on the phone lead to Riley being charged in  
          connection with a shooting and the phone evidence being used to  
          claim a gang enhancement.  In the second case, as a result of  
          his cell phone being searched the defendant's apartment was  
          searched and guns and drugs were found after he was arrested  
          during a drug sale. "These cases require us to decide how the  
          search incident to arrest doctrine applies to modern cell  
          phones, which are now such a pervasive and insistent part of  
          daily life that the proverbial visitor from Mars might conclude  
          they were an important feature of human anatomy. A smart phone  
          of the sort taken from Riley was unheard of ten years ago; a  
          significant majority of American adults now own such phones."  
          (Id. at 2484. )  The Supreme Court refused to apply to cell  
          phone searches the precedents established for the searches of  
          purses and wallets because "that would be like saying a ride on  
          horseback is materially indistinguishable from a flight to the  
          moon." (Id. at 2488.)  Recognizing that modern cell phones'  
          storage capacity and multi-functionality allow them to contain  
          "the privacies of life," the Court required law enforcement to  
          "get a warrant" for cell phone searches. (Id. at 2495.)   

          In the case of U.S. v. Jones (132 S.Ct. 945(2012)), the court  
          found that the government's attachment of a global positioning  
          system (GPS) device to a vehicle and its use of that device to  
          monitor the vehicle's movements constituted a search warrant  
          under the 4th Amendment.  In Jones, all members of the Court  
          found that the law enforcement's attachment and subsequent  
          monitoring of a GPS on a vehicle violated the 4th Amendment,  
          although with two concurring opinions, various judges reached  
          that conclusion using different legal reasoning.







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          In Jones, the United States Supreme Court held that attaching a  
          GPS device to a person's vehicle to track his or her movements  
          constitutes a search within the meaning of the Fourth Amendment.  
           Authorities obtained a search warrant to install a GPS device  
          on defendant's car as part of a drug trafficking investigation.  
          But, the authorities did not install the device until after the  
          warrant expired.  The device was used to track the defendant's  
          movements for almost one month.  When charges were filed against  
          defendant, he moved to suppress the GPS evidence as the product  
          of an illegal search.  The prosecution argued at trial and on  
          appeal that a search within the meaning of the Fourth Amendment  
          had not occurred  because Jones did not have a reasonable  
          expectation of privacy in the location of his vehicle on public  
          streets, which was visible to all.  

          The Supreme Court found the government's use of a GPS monitoring  
          device was a search within the meaning of the Fourth Amendment,  
          and therefore must be reasonable.  The majority decision was not  
          based on the reasonable expectation of privacy test for  
          challenges to law enforcement surveillance, which is generally  
          employed.  (Katz v. U.S. (1967) 389 U.S. 347.)  Instead, the  
          majority based its decision on common law trespass principals,  
          holding that attaching a GPS device to a vehicle (an "effect")  
          for purposes of data collection constitutes a search because the  
          government physically occupied private property for the purpose  
          of information gathering.  But five of the justices (the four  
          members of the Alito concurrence, plus Justice Sotomayor) were  
          critical of the trespass theory, stating the majority should  
          have used the reasonable expectation of privacy test.

          Comments
          
          Unless a search warrant or wiretap order is obtained, this  
          bill prohibits a government entity from: compelling the  
          production of or access to  electronic communications from  
          an information service provider; compelling the production  
          of or access to electronic device information from any  
          person or entity except the authorized possessor of the  
                                                                device; or, accessing electronic device information by means  
          of physical interaction or electronic communication with the  
          device except with the specific consent of the authorized  
          user.








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          Exceptions exist to the warrant requirement including  
          consent of the owner of a device and when the government in  
          good faith believes that an emergency involving imminent  
          danger of death or serious physical injury requires access  
          to the electronic device information or the entity  
          reasonably believes the device is stolen.

          This bill further requires notice to the targets of warrant  
          or wiretap contemporaneously with the execution of the  
          warrant unless a court ordered delay of notice is granted  
          for a renewable period up to 90 days.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee analysis:

           Noticing requirements:  Ongoing potentially significant costs  
            to state and local law enforcement agencies for those noticing  
            provisions in the bill that exceed requirements under federal  
            law. To the extent local agency expenditures qualify as a  
            reimbursable state mandate, agencies could claim reimbursement  
            of those costs (General Fund). Costs would be dependent on  
            various factors including but not limited to the number of  
            persons requiring notice, both contemporaneously and under the  
            delayed noticing provisions, time/workload required per  
            notice, and the method of noticing used. 
           Information deletion:  Unknown, but potentially significant  
            costs to government entities for the required deletion of  
            information within the specified time period. To the extent  
            local agency expenditures qualify as a reimbursable state  
            mandate, agencies could claim reimbursement of those costs  
            (General Fund).    
           DOJ impact:  Significant ongoing costs potentially in excess  
            of $300,000 (General Fund) for resources to meet the noticing  
            requirements of the bill. Minor, absorbable impact to  
            aggregate and post annual reports received to its website.



          SUPPORT:   (5/31/15)


          American Civil Liberties Union (co-source)







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          California Newspaper Publishers Association (co-source)
          Adobe
          Airbnb
          Apple Inc.
          Asian Americans Advancing Justice
          Bay Area Civil Liberties Coalition
          California Attorneys for Criminal Justice
          California Chamber of Commerce
          The California Chapter of the Council on American-Islamic  
          Relations
          California Correctional Peace Officers Association
          California Immigrant Policy Center
          California Library Association
          California Public Defenders Association
          Center for Democracy and Technology
          Center for Media Justice
          Centro Legal de la Raza
          Citizens for Criminal Justice Reform
          Civil Justice Association of California
          Color of Change
          Consumer Action
          Consumer Federation of California
          Council on American-Islamic Relations
          Dropbox
          Drug Policy Alliance
          Electronic Frontier Foundation
          Ella Baker Center for Human Rights
          Engine
          Facebook
          Foursquare
          Google
          The Internet Archive
          Internet Association
          Legal Services for Prisoners with Children
          LinkedIn
          Media Alliance
          Microsoft
          Mozilla
          Namecheap, Inc.
          National Center for Lesbian Rights
          New America: Open Technology Institute
          Oakland Privacy Working Group
          Privacy Rights Clearinghouse
          Restore the Fourth Bay Area Chapter







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          Small Business California
          Twitter
          TechFreedom
          Technet
          TURN (the Utility Reform Network)
          Sixteen law professors.


          OPPOSITION:   (5/31/15)


          California District Attorneys Association
          California Police Chiefs Association
          California State Sheriffs Associaiton


          ARGUMENTS IN SUPPORT:     

          In support California Newspaper Publishers Association, a  
          co-source of this bill, states:

               The threat of law enforcement obtaining protected,  
               personal information from third parties without a  
               warrant presents serious problems for newspaper  
               publishers, editors and working journalists.   
               California has unique protections that allow  
               publishers, editors, and working journalists to  
               maintain sensitive source information and unpublished  
               notes without being subject to routine access by law  
               enforcement and litigants.

          Twitter supports this bill, stating:

               Current federal law that extends fourth amendment  
               right to electronic communications is nearly 30 years  
               out of date.  As technology and the nature of data  
               transmission and storage has changed, the protections  
               afforded by the Federal ECPA law has largely lapsed.   
               Although there is broad support to ECPA reform in  
               Washington, it is unclear if Congress will act in  
               timely fashion to clarify Federal law. This leaves the  
               responsibility of protecting consumer's rights in the  
               hands of private communication service providers.








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               SB 178 will modernize electronic communications  
               protections and ensure that, in California, an  
               individual's digital property cannot be seized without  
               a warrant.  By acting in a timely fashion, SB 178 will  
               set a standard for protecting the rights of users  
               everywhere that can and should be replicated across  
               the country.

          Privacy Rights Clearinghouse states in support of this bill:

               SB 178 follows the spirit of Riley and extends the  
               warrant requirements to digital information that  
               reveals personal and sensitive details about who we  
               are, whom we communicate and associate with, and where  
               we've been.  While law enforcement will still be able  
               to obtain this information and utilize it to solve  
               crimes, SB 178 provides needed oversight by requiring  
               law enforcement obtain a search warrant in order to  
               access this wealth of information.  The bill contains  
               reasonable exceptions that allow law enforcement to  
               obtain digital information without a warrant in an  
               emergency.



          ARGUMENTS IN OPPOSITION:     

          The California District Attorneys Association opposes this bill,  
          stating:

              This bill, the Electronic Communications Privacy Act,  
              would establish a number of new procedures and reporting  
              requirements for law enforcement agencies to comply with  
              when seeking a search warrant for electronic  
              communications.  Unfortunately, in doing so, it  
              undermines critical efforts to stop child exploitation,  
              mandates the destruction of evidence by law enforcement,  
              and violates the California Constitution.

          The California State Sheriffs' Association opposes this bill,  
          stating:

              This measure has a myriad of problems: it conflates  
              existing procedures for obtaining certain electronic  







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              information under state and federal law, contains  
              burdensome and unnecessary reporting requirements, and  
              will undermine investigations that are fully compliant  
              with the Fourth Amendment.

          Prepared by:Mary Kennedy / PUB. S. / 
          6/2/15 21:27:02


                                   ****  END  ****