BILL ANALYSIS
AB 1971
Page 1
Date of Hearing: April 13, 2010
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 1971 (Lowenthal) - As Introduced: February 17, 2010
PROPOSED CONSENT
SUBJECT : CSU AND UC: ALUMNI DISCLOSURES
KEY ISSUE : SHOULD the sunset on the law that permits our state
universities TO DISCLOSE NAMES AND ADDRESSES OF ALUMNI to
certain business partners, UNDER LIMITED CIRCUMSTANCES, BE
EXTENDED?
FISCAL EFFECT : As currently in print this bill is keyed fiscal.
SYNOPSIS
Current law permits California State University, University of
California, and Hasting College of Law to release the names and
addresses of alumni to businesses with whom the universities
have an "affinity partnership" agreement. These "affinity
partners" are generally businesses that have signed an agreement
with the universities to offer alumni certain goods or services
at discounted rates. The affinity partners pay a fee to the
university or alumni foundation to obtain the names and
addresses of the alumni. The partners must also agree not to
share the information or to use it for any purpose other than
offering the service. The universities are only allowed to
release such information if the alumni are given multiple
opportunities to opt out of having their information released.
The current provisions will sunset on January 1, 2011. This
non-controversial bill seeks to extend the sunset date to
January 1, 2016. In addition, this bill would require that the
required opt-out form be available through an electronic link on
the homepage of the alumni association's Internet Web site or in
the site's privacy policy. Last year's AB 1222, by the same
author, was identical to this measure. That bill passed out of
this Committee on consent and did not receive a single "No" vote
in any subsequent committee or floor vote. However, the
Governor vetoed the bill because the existing law was not due to
expire until January of 2011 and the bill was therefore
premature. Obviously that argument is no longer germane. This
bill passed out of the Assembly Higher Education Committee last
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week on 9-0 vote. There is no known opposition to the bill.
SUMMARY : Extends until January 1, 2016, the sunset on an
existing law that permits California State University (CSU), the
University of California (UC), and the Hastings College of Law
(HCL) to release the names and addresses of alumni to certain
business partners and requires that an electronic link to a
required opt-out form be located on either the homepage of the
alumni association's Internet Web site or in the association's
privacy policy.
EXISTING LAW :
1)Prohibits any state officer or state agency from disclosing an
individual's name and address for commercial purposes, unless
such action is specifically authorized by law. (Civil Code
section 1798.60.)
2)Requires that a financial institution, when it has an
agreement to release customer information to an "affinity
partner," as defined, provide its customers with an annual
written opportunity to opt out of the disclosure of the
customer's nonpublic personal information. (Financial Code
sections 4053(b), 4053(d), 4054.6.)
3)Requires the State Bar to give its members, in the annual dues
statement, an opportunity to opt out of the sale or disclosure
of member information not reasonably related to regulatory
purposes. (Business and Professions Code section 6001.)
4)Permits the trustees, regents, directors, and alumni
association of CSU and UC to distribute the names, addresses,
and email addresses of alumni for the following purposes:
a) To provide informational materials relating to the
university;
b) To provide commercial opportunities; or
c) To promote and support the educational mission of the
university. (Education Code sections 89090(a), 92630(a).)
5)Permits the names, addresses, and email addresses of CSU and
UC alumni to be distributed to a business with whom the
universities have a contractual agreement as long as:
a) The business must maintain the confidentiality of alumni
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names and addresses;
b) CSU and UC must retain the right to approve or reject
any purpose for which the information is to be used;
c) CSU and UC must retain the right to review and approve
the text of mailings; and
d) The agreement must prohibit the business from using the
information for any purposes other than those specifically
allowed. (Education Code sections 89090(b)(1)(A),
92630(b)(1)(A).)
6)Prohibits the disclosure of the following:
a) Names, addresses, and email addresses of alumni who have
directed the trustee or an alumni association not to
disclose their names or addresses;
b) Any information regarding current students of CSU or UC;
and
c) Any information regarding alumni who as students
indicated they did not want their information disclosed.
(Education Code sections 89090(b)(3)-(4), 92630(b)(3)-(4).)
7)Requires CSU and UC to provide alumni with multiple
opportunities to opt out of having their information shared
with affinity partners, including:
a) Upon graduation;
b) In the alumni association magazine or newsletter on an
annual basis;
c) A one-time mailing to all alumni on the university
mailing list as of January 1, 2006;
d) A website link; and
e) An annual electronic email notice to alumni whose email
addresses are available. (Education Code sections
89090(c)(3)(B), 92630(c)(3).)
8)Requires CSU to provide at least two cost-free means for
alumni to communicate their privacy choice. (Education Code
sections 89090(c)(4), 92630(c)(4).)
9)Provides that the provisions relating to UC (which include UC
Hastings College of Law as well as other UC campuses) apply
only to the extent that the UC Regents or UC Hastings Board of
Directors act by resolution to make them applicable.
(Education Code section 92630.5.)
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10)Provides that the information-sharing provisions shall remain
in effect until January 1, 2011, and as of that date is
repealed, unless a later enacted statute deletes or extends
that date. (Education Code sections 89090.5, 92630.9.)
COMMENTS : SB 569 (Chapter, Stats. of 2005) enacted the existing
provisions giving authority to CSU, UC, and HCL to disclose the
names and addresses of alumni to so-called "affinity partners."
Under these affinity partnerships, a business obtains the names
and addresses of alumni for a fee and, in return, offers
specified goods and services to alumni, typically at discounted
rates or on favorable terms. As part of the affinity agreement,
the business must agree to keep the names and addresses of
alumni confidential and to only use those names for the purpose
of offering its commercial goods or services. In addition,
existing law requires universities or alumni associations to
provide alumni with an "opt-out" form that allows them to
prohibit the disclosure of their names and addresses to affinity
partners. The opt-out form must be communicated to the alumni
on an annual basis and in a variety of forms. Alumni must have
at least two cost-free means for communicating their privacy
wishes (e.g. a toll-free number or electronic communication.)
These arrangements help universities and alumni associations
raise money, give affinity partners access to a list of
potential consumers, and give interested alumni access to
discounted goods and services. The provisions of the existing
law are scheduled to sunset on January 1, 2011.
This bill would extend the sunset on existing law until January
1, 2016. In addition, this bill would require that the
"opt-out" form that permits alumni to prevent the disclosure of
their information be accessible on the homepage of the alumni
association's Internet Web site or in the site's privacy policy.
Existing law already requires that this form be made available
in various ways, including through a link on the alumni
associations Internet Web site. This bill would simply specify
that the link must be either on the alumni association's home
page or in the privacy policy posted on the association's Web
site.
Privacy concerns were addressed in prior legislation . Opponents
of the original legislation - mainly privacy rights groups -
voiced concerns about possible identity theft and argued that
personal information should only be disclosed on an opt-in
(rather than opt-out) basis. However, the existing legislation
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limits the conditions under which information may be issued and
agreements must require the affinity partner to keep the names
and addresses confidential and to only use information for the
agreed upon purpose. As to the "opt in" versus "opt out" issue,
the sponsors countered that an opt-in provision would be too
expensive and, as a practical matter, would exclude many alumni
who might not necessarily object to this use of their
information but who never take the time to opt in. As a
compromise on this later point, the original legislation was
amended to require CSU, UC, and HCL to annually provide alumni
with the opportunity to opt out and to communicate this option
to alumni in a variety of ways. This year's measure, in
addition to extending the sunset date, will presumably make it
somewhat easier for alumni to opt-out by requiring that a link
to the opt-out form be available in an accessible and logical
place on the alumni association's Internet Web site.
ARGUMENTS IN SUPPORT : The author states that it is common
practice for public universities nationwide, as well as private
institutions in California, to offer benefits and services to
alumni through affinity partnerships with commercial vendors as
a way to stay connected with alumni. Affinity partnerships
include group rates and discounts for home and auto insurance,
mortgage programs, and travel programs. The ultimate goal of
these programs is to support the university in the form of
donations, scholarships, and involvement. The author states
that in light of recent revenue problems in California, the need
for private funding through programs such as these is more
critical than ever. The author states that the campuses that
have these programs use the funding to further their programming
and outreach to alumni, as well as to provide scholarships to
students.
The author states that for the three years the statute has been
in place, the universities "have held the privacy of their
alumni in the highest regard, keeping meticulous record of all
opt-out information obtained from alumni as well as continually
following the letter of the law by ensuring ample opportunities
for alumni to have their information removed from records."
Prior Related Legislation . SB 1 (Speier), Chapter 241, 2003:
Established the California Financial Information Privacy Act
(IPA), which focused on privacy and broader consumer protections
and inadvertently impacted the ability of public university
alumni associations to develop these affinity programs.
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Specifically, the IPA prohibited public institutions (including
CSU) from distributing the names or contact information for any
individuals, including their alumni.
SB 569 (Torlakson), Chapter 498, 2005: Until January 1, 2011,
permits the California State University (CSU), the University of
California (UC), and Hastings College of the Law (HCL) to
release the names and addresses of their alumni to businesses
with whom they have affinity-partner agreements (i.e. commercial
vendors that have contracts with the institutions to offer
alumni commercial products and services, often at discounted
rates). The bill requires certain privacy requirements to be
met, including requiring the businesses to maintain the
confidentiality of the names and addresses of the alumni. The
institutions must provide their alumni with the opportunity to
opt-out of having their information shared.
AB 1222 (Lowenthal), 2009: Identical to this bill. As noted
above, this measure was vetoed by the Governor on the grounds
that, at that time, it was premature to extend the sunset on a
bill that was not set to expire until January 1, 2011.
REGISTERED SUPPORT / OPPOSITION :
Support
California Postsecondary Education Committee
California State University
University of California
Opposition
None on file
Analysis Prepared by : Thomas Clark / JUD. / (916) 319-2334