BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1604
                                                                  Page  1

          Date of Hearing:   March 27, 2012
          Counsel:          Stella Choe


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                    AB 1604 (Campos) - As Amended:  March 22, 2012
           

          SUMMARY  :   Authorizes the interception of an electronic 
          transmission of a computer trespasser transmitted to, through or 
          from a computer system if authorized by the owner of the 
          computer system for the sole purpose of recovering the computer 
          system.  Specifically,  this bill  :

          1)States that it shall not be unlawful for law enforcement 
            officers to use information obtained through the interception 
            of an electronic transmission of a computer trespasser, 
            authorized by the owner of the computer system, for the sole 
            purpose of recovering a computer system.

          2)Defines "computer trespasser" as a person who unlawfully 
            possesses or accesses a computer without authorization and 
            does not include a person known by the owner of the computer 
            to have an existing contractual relationship with the owner or 
            operator of the computer for access to all or part of the 
            protected computer while acting within the scope of the 
            contractual relationship.

          3)States that a computer trespasser has no reasonable 
            expectation of privacy in communications made to, from or 
            through the computer system.

          4)Provides that "computer system" shall refer to a device or 
            collection of devices, including support devices and excluding 
            calculators that are not programmable and capable of being 
            used in conjunction with external files, one or more of which 
            contain computer programs, electronic instructions, input 
            data, and output data, that performs functions including, but 
            not limited to, logic, arithmetic, data storage and retrieval, 
            communication, and control.

           EXISTING LAW:  









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          1)States the finding of the Legislature that the proliferation 
            of computer technology has resulted in a concomitant 
            proliferation of computer crime and other forms of 
            unauthorized access to computers, computer systems, and 
            computer data.  The protection of the integrity of all types 
            and forms of lawfully created computers, computer systems, and 
            computer data is vital to the protection of the privacy of 
            individuals as well as to the well-being of financial 
            institutions, business concerns, governmental agencies, and 
            others within this state that lawfully utilize those 
            computers, computer systems, and data.  �Penal Code Section 
            502(a).]

          2)Provides that any person, who commits any of the following 
            acts is guilty of a public offense, and provides specified 
            penalties for each act:

             a)   Knowingly accesses and without permission alters, 
               damages, deletes, destroys, or otherwise uses any data, 
               computer, computer system, or computer network in order to 
               either:  (i) devise or execute any scheme or artifice to 
               defraud, deceive, or extort, or (ii) wrongfully control or 
               obtain money, property, or data;

             b)   Knowingly accesses and without permission takes, copies, 
               or makes use of any data from a computer, computer system, 
               or computer network, or takes or copies any supporting 
               documentation, whether existing or residing internal or 
               external to a computer, computer system, or computer 
               network;

             c)   Knowingly and without permission uses or causes to be 
               used computer services;

             d)   Knowingly accesses and without permission adds, alters, 
               damages, deletes, or destroys any data, computer software, 
               or computer programs which reside or exist internal or 
               external to a computer, computer system, or computer 
               network;

             e)   Knowingly and without permission disrupts or causes the 
               disruption of computer services or denies or causes the 
               denial of computer services to an authorized user of a 
               computer, computer system, or computer network;









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             f)   Knowingly and without permission provides or assists in 
               providing a means of accessing a computer, computer system, 
               or computer network in violation of this section;

             g)   Knowingly and without permission accesses or causes to 
               be accessed any computer, computer system, or computer 
               network;

             h)   Knowingly introduces any computer contaminant into any 
               computer, computer system, or computer network; and

             i)   Knowingly and without permission uses the Internet 
               domain name of another individual, corporation, or entity 
               in connection with the sending of one or more electronic 
               mail messages, and thereby damages or causes damage to a 
               computer, computer system, or computer network.  �Penal 
               Code Section 502(c) and (d).]

          3)Excludes from criminal liability for committing any of the 
            above listed activities a person who acts within the scope of 
            his or her lawful employment or a person acting outside of his 
            or her lawful employment, provided that the employee's 
            activities do not cause an injury as defined or the value of 
            supplies or computer services does not exceed an accumulated 
            total of $250.  �Penal Code Section 502(h).]

          4)States that every person who, intentionally and without the 
            consent of all parties to a confidential communication, by 
            means of any electronic amplifying or recording device, 
            eavesdrops upon or records the confidential communication, 
            whether the communication is carried on among the parties in 
            the presence of one another or by means of a telegraph, 
            telephone, or other device, except a radio, shall be punished 
            by a fine not exceeding $2,500, or imprisonment in the county 
            jail not exceeding one year, or in the state prison, or by 
            both that fine and imprisonment.  If the person has been 
            previously convicted of a crime related to wiretapping and 
            eavesdropping as specified, the person shall be punished by a 
            fine not exceeding $10,000, by imprisonment in the county jail 
            not exceeding one year, or in the state prison, or by both 
            that fine and imprisonment.  �Penal Code Section 631(a).]

          5)Provides that every person who, intentionally and without the 
            consent of all parties to a confidential communication, by 
            means of any electronic amplifying or recording device, 








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            eavesdrops upon or records the confidential communication, 
            whether the communication is carried on among the parties in 
            the presence of one another or by means of a telegraph, 
            telephone, or other device, except a radio, shall be punished 
            by a fine not exceeding $2,500, or imprisonment in the county 
            jail not exceeding one year, or in the state prison, or by 
            both that fine and imprisonment.  If the person has previously 
            been convicted of a crime related to wiretapping and 
            eavesdropping as specified, the person shall be punished by a 
            fine not exceeding $10,000, by imprisonment in the county jail 
            not exceeding one year, or in the state prison, or by both 
            that fine and imprisonment.  �Penal Code Section 632(a).]

          6)States that any person who trespasses on property for the 
            purpose of committing any act, or attempting to commit any 
            act, in violation of laws related to wiretapping and 
            eavesdropping, shall be punished by a fine not exceeding 
            $2,500, by imprisonment in the county jail not exceeding one 
            year or in the state prison, or by both that fine and 
            imprisonment.  If the person has previously been convicted of 
            a crime related to wiretapping and eavesdropping, the person 
            shall be punished by a fine not exceeding $10,000, by 
            imprisonment in the county jail not exceeding one year or in 
            the state prison, or by both that fine and imprisonment.  
            (Penal Code Section 634.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "This is a 
            common sense bill that protects individuals who use a variety 
            of products that are designed to assist them in the recovery 
            of their stolen electronic goods."

           2)Background  :  According to information provided by the author, 
            "Currently a consumer has access to a variety of products that 
            are designed to assist in the recovery of electronic goods if 
            they are stolen or lost.  The products range from 'lojack for 
            computers,' to any 'remote desktop' application, or 'mobile 
            me' application.  All of these products share the ability to 
            remotely access a computer or cellular device.  When a 
            computer or cellular device is stolen, the lawful owner has 
            the ability to track the location of the stolen device, delete 
            or recover files stored on it, or monitor in real time what is 








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            occurring on it.  As a practical matter, monitoring in real 
            time is the most efficient way of determining the identity and 
            location of the individual in possession of the stolen item.

          "California residents are violating California laws by using 
            these commercially available software programs to recover 
            their stolen systems.  In short they are violating wiretap and 
            confidential communication statutes and may be subject to 
            criminal and civil penalties.  (See Pen. Code, section 631 
            (wiretapping) and 632 (recording confidential communication).

          "Unlike California law, federal law has a safe harbor provision 
            that allows an owner of a computer to monitor a trespassers 
            communications (individual using the stolen computer). (See 18 
            U.S.C. section 2511(2)(i).)

          "Purpose of this bill is to include a 'safe harbor' provision 
            that allows an owner of a computer to monitor a trespassers 
            communications.  This bill would also allow law enforcement 
            the ability to assist the victim and use evidence of the 
            trespassers communications in court."

           3)Privacy Issues  :  

              a)   Existing Privacy Laws  :  This bill specifies that the 
               interception of an electronic transmission (e-mail) is to 
               be used solely for the recovery of a stolen computer 
               system.  Anti-theft products such as "Prey Project" and 
               "GadgetTrak" allow the owner of a laptop or smartphone to 
               track down the location of their laptop or smartphone and 
               to remotely take screen shots and photographs of activity 
               on their devices.  While these features may be helpful in 
               gathering information regarding a computer thief, they go 
               beyond merely locating a stolen or lost laptop for recovery 
               purposes.  These features allow access into contents on the 
               computer and any Internet sites visited by the user, 
               including e-mails.  In a recent federal case involving 
               federal wiretapping laws and a "Lojack for Laptops" device, 
               the district court made a crucial distinction stating, "It 
               is one thing to cause a stolen computer to report its IP 
               �Internet Protocol] address or its geographical location in 
               an effort to track it down.  It is something entirely 
               different to violate federal wiretapping laws by 
               intercepting the electronic communications of the person 
               using the stolen laptop."  �Clements-Jeffrey v. City of 








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               Springfield (S.D. Ohio 2011) 810 F. Supp. 2d 857, 874.]

             A person, unaware that the laptop is stolen, may use the 
               laptop to perform everyday tasks such as accessing bank 
               records or medical records.  Allowing the owner of the 
               laptop to take screen shots or photographs and view other 
               contents violates existing privacy laws such as federal 
               laws that protect bank records and medical records. 

              b)   Legitimate Expectation to Privacy  :  This bill states 
               that a computer trespasser has no reasonable expectation of 
               privacy in communications made to, from or through the 
               computer system.  While a person who steals a computer has 
               no legitimate expectation of privacy to the contents of its 
               hard drive (United States v. Caymen (9th Cir. 2005) 404 
               F.3d 1196, 1201), there are instances where an innocent 
               purchaser may be in possession of a stolen laptop.  An 
               innocent purchaser, unlike a thief, has a legitimate 
               expectation of privacy.  Whether a person knew or should 
               have known that the item in their possession was stolen is 
               a question of fact for a jury to determine.  
               (Clements-Jeffrey v. City of Springfield, supra, 404 F.3d 
               at p. 866.)

           4)Argument in Support  :  According to the  Department of Justice  , 
            "Currently a consumer has access to a variety of products that 
            are designed to assist in the recovery of electronic goods if 
            they are stolen or lost. . . When a computer or cellular 
            device is stolen, the lawful owner has the ability to track 
            the location of the stolen device, delete or recover files 
            stored on it, or monitor in real time what is occurring on it. 
             As a practical matter, monitoring in real time is the most 
            efficient way of determining the identity and the location of 
            the individual in possession of the stolen item.

          "Unfortunately, California residents are violating California 
            laws by using these commercially available software programs 
            to recover their stolen systems.  In short, they are violating 
            wiretap and confidentiality communication statutes and may be 
            subject to criminal and civil penalties. . . This legislation 
            will update our law to include a "safe harbor" provision that 
            allows an owner of a computer to monitor a trespassers 
            communication."

           5)Argument in Opposition  :  According to  Electronic Frontier 








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            Foundation  , "Location data is sensitive information, and 
            should be zealously protected.  Earlier this year, the United 
            States Supreme Court issued its landmark opinion in United 
            States v. Jones, which reiterated that the Fourth Amendment 
            protects against prolonged warrantless tracking and 
            surveillance.  While the ramifications of that case are only 
            beginning to work their way through the judicial system, it is 
            clear that at a minimum, there is a growing recognition for 
            the need to safeguard against unnecessary tracking and 
            surveillance conducted without a search warrant.

          "Permitting the use of applications that track a cell phone's 
            location is one thing; but authorizing the ability to capture 
            all electronic communications, including content (emails, text 
            messages, social media postings), is a dramatic expansion of 
            the law, and more than what is reasonably necessary for the 
            bill to accomplish its goal of aiding the recovery of stolen 
            electronic devices.  And while the thief of an electronic 
            device may not have any privacy rights in this context, anyone 
            they communicate with who is unaware that the device is stolen 
            still maintains their expectation to privacy in the 
            confidentiality of their communications.  The proposed text of 
            AB 1604 does not take this privacy right into account."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Attorney General's Office (Sponsor)
          TechNet

           Opposition 
           
          American Civil Liberties Union
          Electronic Frontier Foundation
           

          Analysis Prepared by  :    Stella Choe / PUB. S. / (916) 319-3744