BILL ANALYSIS �
AB 2147
Page 1
Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2147 (Melendez) - As Amended: May 1, 2014
Policy Committee:
JudiciaryVote:10-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires all state agencies that use a website to obtain
information and share that information with another state
agency or a private party to include a specified disclosure
notice that, by submitting the form, the person acknowledges
the information they provide may be shared with another agency
or private party consistent with Information Practices Act.
2)Prohibits an agency from using or sharing information provided
on an online form until the person specifically acts to submit
the form.
FISCAL EFFECT
This bill would impact any state agency using online forms to
obtain personal information. Costs would be one-time and involve
programming, and generally will vary depending on the number of
online applications to be modified. Examples of estimated costs
are $50,000 for the Secretary of State, $75,000 for the DMV,
minor and absorbable at the California State University,
$500,000 for the Department of Consumer Affairs and its
associated boards, and a few hundred thousand dollars for the
Department of Social Services. Costs would be to the General
Fund, various special funds, and federal funds.
COMMENTS
Purpose . According to the author, this bill was in response to a
Los Angeles Times report at the end of last year that the
AB 2147
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California Health Benefits Exchange, known as Covered
California, raised consumer privacy concerns by sharing personal
information from partially completed online applications with
insurance agents. These agents, in turn, subsequently contacted
the persons who had failed to complete the process to provide
them with more information about health insurance options under
Covered California.
AB 2147 does two things. First, it requires any state agency
that collects information through the use of an online form to
disclose to the person completing the form that information may
be shared with other state agencies and private parties, so long
as those disclosures comply with the Information Practices Act.
Second, the bill prohibits the state agency from using or
sharing any information from a partially completed form or a
form that had not yet been formally submitted. This latter
provision is apparently in direct response to reports that
Covered California provided insurance agents with the
information of persons who had visited the website and begun,
but who had not actually completed, the application process.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081