BILL NUMBER: SB 1409 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 5, 2000
INTRODUCED BY Senator Murray
FEBRUARY 1, 2000
An act to add Title 1.81 (commencing with Section 1798.90) to
Part 4 of Division 3 of the Civil Code, relating to privacy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1409, as amended, Murray. Privacy.
Existing law sets for the provides
various statutory provisions protecting the right of privacy, as
specified.
This bill would state the intention of the Legislature to
enact an act that shall be known and may be cited
as the California Privacy Protection Act of 2000.
The bill would make it a crime for a consumer credit reporting
agency, financial institution, health care provider, or insurance
company to disclose to a third party or parties personal information
relating to an individual without that individual's prior consent.
The bill would also set forth various definitions and create a new
cause of action for a violation. The bill would impose a
state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program:
no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intention of the Legislature to enact an act
that shall be known and may be cited as the "California Privacy
Protection Act of 2000."
SECTION 1. Title 1.81 (commencing with Section 1798.90) is added
to Part 4 of Division 3 of the Civil Code, to read:
TITLE 1.81. THE CALIFORNIA PRIVACY PROTECTION ACT OF 2000
1798.90. This title shall be known, and may be cited, as the
"California Privacy Protection Act of 2000."
1798.91. The following definitions shall govern the provisions of
this title:
(a) "Consumer credit reporting agency" has the same meaning as set
forth in subdivision (d) of Section 1785.3.
(b) "Disclose" means the act of an individual, firm, partnership,
corporation, association, or government agency of disclosing,
releasing, selling, leasing, exchanging, or renting for anything of
value personal information about a victim of identity theft in its
possession, custody, or control to a different individual, firm,
partnership, corporation, association, or government agency, or any
other third party, for direct marketing purposes. "Disclose" does
not include any of the following:
(1) The exchange of information preempted by paragraph (2) of
subdivision (b) of Section 1681t of Title 15 of the United States
Code.
(2) Personal information provided to a third party pursuant to
contracts or arrangements pertaining solely to any of the following:
(A) The storage, management, or organization of personal
information, where the personal information is not disclosed to third
parties.
(B) The creation or distribution of marketing or advertising
materials for products or services to be offered by an individual,
firm, partnership, corporation, or association to its current
customers or members.
(C) Completing a transaction not otherwise in violation of law
between the individual, firm, partnership, corporation, association,
or government agency in the lawful possession, custody, or control of
the personal information and its current members or customers, or a
transaction involving a new member or customer where the new member
or customer has initiated the transaction.
(3) Disclosures by an individual, firm, partnership, corporation,
association, or government agency of payment history or other
information pertaining to transactions or experiences between it and
an individual, together with identifying information, to a consumer
reporting agency where those transactions or experiences, together
with identifying information, is defined as a consumer report in
subdivision (d) of Section 1681a of Title 15 of the United States
Code and the use is limited by the federal Fair Credit Reporting Act.
(c) "Financial institution" has the same meaning as set forth in
Section 5107 of the Financial Code.
(d) "Health care provider" has the same meaning as set forth in
subdivision (b) of Section 1714.8.
(e) "Insurance company" means an insurer, as defined in Section 23
of the Insurance Code, that is incorporated.
(f) "Personal information" means any data or information
pertaining to a person that could be used to violate Section 530.5 of
the Penal Code or any provision of this title, and includes a social
security number or any information describing or setting forth a
person's income, assets, liabilities, purchases, leases, or rentals
of goods, services, or real property if the information was
disclosed, is disclosed, or is intended to be disclosed, with any
identifying information, such as a name, address, telephone number,
date of birth, or age.
(g) "Third party or parties" means an individual, firm,
partnership, corporation, or association where more than 50 percent
of the ownership either is not owned or not controlled by the
individual, firm, partnership, corporation, or association that has
duties and obligations that arise under this title, has a chief
executive officer or corporate president that differs from the chief
executive officer or corporate president of the individual, firm,
partnership, corporation, or association that has duties and
obligations that arise under this title, or is a separate legal
entity from the individual, firm, partnership, corporation, or
association that has duties and obligations that arise under this
title. "Third party or parties," when applied to a government
agency, means any agency that is funded by its own appropriation
distinct from an agency that has duties and obligations that arise
under this title, or which has statutory or other legally imposed
duties that differ from an agency that has duties and obligations
that arise under this title.
1798.92. (a) No consumer credit reporting agency, financial
institution, health care provider, or insurance company may disclose
to a third party or parties personal information relating to an
individual without that individual's prior consent.
(b) A violation of this section constitutes a felony or
misdemeanor, punishable by imprisonment in the state prison for two
or three years, or in a county jail not to exceed one year, or by a
fine not exceeding twenty-five thousand dollars ($25,000), or by both
the fine and imprisonment.
(c) A violation of this section shall also give rise to a cause of
action on behalf of the individual for damages not exceeding five
thousand dollars ($5,000) per violation.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.