BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 928
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          Date of Hearing:   August 19, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                      AB 928 (Olsen) - As Amended: June 16, 2014

                                   FOR CONCURRENCE
           
          SUBJECT  :  State Agencies: Internet Privacy Policies 

           KEY ISSUE  :  Should state agencies be required to post their  
          privacy policies online? 

                                      SYNOPSIS
          
          California's Information Practices Act of 1977 establishes  
          certain standards that a state agency must adhere to as to the  
          collection, maintenance, and disclosure of records that contain  
          an individual's personal information.  Each state agency must  
          develop a privacy policy that adheres to the standards and  
          principles of the Act.  This non-controversial bill would  
          require a state agency to post its privacy policy on its  
          Internet Website, something most state agencies apparently  
          already do.  There is no known opposition to this bill. 

           SUMMARY  :  Requires each state department and state agency to  
          conspicuously post its privacy policy on its Internet Web site.   
          Specifically,  this bill  :  

           1)Requires each state department and state agency to  
            conspicuously post its privacy policy on its Internet Web  
            site.

          2)Specifies that the term "conspicuously post" shall include  
            posting the privacy policy through any of the following means:

             a)   An Internet Web page on which the actual privacy policy  
               is posted if the Internet Web page is the homepage or first  
               significant page after entering the Internet Web site;

             b)   An icon that hyperlinks to an Internet Web page on which  
               the actual privacy policy is posted, if the icon is located  
               on the homepage or the first significant page after  
               entering the Internet Web site, and if the icon contains  
               the word "privacy."  The icon shall also use a color that  








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               contrasts with the background color of the Internet Web  
               page or is otherwise distinguishable; or

             c)   A text link that hyperlinks to an Internet Web page on  
               which the actual privacy policy is posted, as specified.  

          EXISTING LAW  :

          1)Establishes, under the Information Practices Act of 1977,  
            standards for state agency collection, retention, protection,  
            and disclosure of records containing personal information  
            relating to individuals.  (Civil Code Sections 1798 et seq.) 

          2)Requires each state department and state agency to enact and  
            maintain a permanent privacy policy, in adherence with the  
            Information Practices Act of 1977, which includes, but is not  
            limited to, the following principles:

             a)   Personally identifiable information is only obtained  
               through lawful means.

             b)   The purposes for which personally identifiable data are  
               collected are specified at or prior to the time of  
               collection, and any subsequent use is limited to the  
               fulfillment of purposes not inconsistent with those  
               purposes previously specified.

             c)   Personal data shall not be disclosed, made available, or  
               otherwise used for purposes other than those specified,  
               except with the consent or as otherwise expressly exempted.

             d)   Personal data collected must be relevant to the purpose  
               for which it is collected.

             e)   The general means by which personal data is protected  
               against loss, unauthorized access, use modification or  
               disclosure shall be posted, unless that disclosure of  
               general means would compromise legitimate state department  
               or state agency objectives or law enforcement purposes.

             f)   Each state department or state agency shall designate a  
               position within the department or agency, the duties of  
               which shall include, but not be limited to, responsibility  
               for the privacy policy within that department or agency.   
               (Government Code Section 11019.9.)








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           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.  


          COMMENTS  :  Enacted in 1977, California's Information Practices  
          Act (Act) expressed legislative concern that the "indiscriminate  
          collection, maintenance, and dissemination of personal  
          information" by state agencies posed a threat to individual  
          privacy, and that the "increasing use of computers and other  
          sophisticated information technology has greatly magnified the  
          potential risk to personal privacy that can occur from the  
          maintenance of personal information."  (Civil Code Section  
          1798.1 (a)-(b).)  At the risk of stating the obvious, since 1977  
          the "sophisticated information technology" has become  
          exponentially more sophisticated and the corresponding threat to  
          individual privacy more "magnified."  

          Although private entities also collect, maintain, and disclose a  
          vast amount of personal information, the Act only applies to  
          state entities.  The Act establishes principles and set minimum  
          standards relating to the collection, retention, and disclosure  
          of personal information pertaining to individuals by any state  
          departments or agencies.  As a general rule, no state agency may  
          disclose and personal information in a manner that would link  
          the information disclosed to the individual to whom it pertains,  
          unless the individual consents to the disclosure or if the  
          disclosure falls under one of several exemptions to the general  
          rule.  Those principles include limiting collection only to  
          those items of personal information necessary for the agency to  
          carry out its duties, and retaining that information for only as  
          long as is necessary.  A 1999 amendment to the Government Code  
          required each state agency to enact and maintain a permanent  
          privacy policy that conformed to the standards and principles of  
          the Act.  
            
          This bill would require state departments and state agencies to  
          conspicuously post their privacy policies on their Internet Web  
          sites, which apparently many if not most state agencies already  
          do.  Those agencies that do not already post these policies  
          online will be required to do so under this bill.

           Comparison to Privacy Policy Required by Commercial Websites  :   
          The author's background information makes reference to the  
          California Online Privacy Protection Act (Cal OPPA), which  
          requires operators of commercial Web sites to post online  








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          privacy policies.  It should be noted that Cal OPPA requirements  
          only apply to personal information from individual consumers who  
          use or visit the Web site.  This bill, however, would require  
          the state agency to post a privacy policy that relates to the  
          agency's personal information practices more generally, whether  
          the information was collected online or from any other source.   
          However, the overall intent of this bill is similar to Cal OPPA:  
           it will allow those who want to know how their personal  
          information is collected, used, and disclosed to easily discover  
          this by visiting an agency's Internet Website. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file 

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334