BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2152
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          Date of Hearing:   April 29, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                    AB 2152 (Levine) - As Amended:  April 23, 2014
           
          SUBJECT  :   Public postsecondary education: federal contracts.

          SUMMARY  :   Establishes requirements governing the University of  
          California (UC), California State University (CSU), the  
          California Community Colleges (CCC) and private or independent  
          higher education institutions entering into federal contracts  
          with federal intelligence agencies.  Specifically,  this bill  :  

          1)Requires the UC, CSU, CCC, and private or independent  
            institutions of higher education, and research institutions  
            managed by or affiliated with those entities, to, prior to  
            entering into a contract with a federal intelligence agency,  
            determine whether the proposed contract would involve the  
            analysis or processing of personally identifiable information,  
            and if so, it must require the agency to disclose whether the  
            information was collected with the knowledge of the  
            individuals to whom it pertains.

          2)Provides that institutions must require a proposed contract to  
            be approved at an open and public meeting of the governing  
            board of the institution and must disclose the type of  
            research and information sought by the federal intelligence  
            agency, if the contract would:

             a)   Involve the analysis or processing of personally  
               identifiable information that was collected without the  
               knowledge of the individuals to whom it pertains;

             b)   Involve the analysis or processing of disaggregated  
               personally identifiable information, or de-identified but  
               re-identifiable information, about individuals;

             c)   Potentially assist in the analytical processing of  
               personally identifiable information of individuals; or

             d)   Assist in the conduct of surveillance activities  
               performed by, or on behalf of, a federal intelligence  
               agency.









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          3)Requires institutions to disclose, on an annual basis, the  
            number of contracts with federal intelligence agencies where  
            the agency sponsoring the contract imposes a limit or  
            restriction on the publication of the research.

          4)Prohibits an institution from entering into a contract with a  
            federal intelligence agency that imposes limits or  
            restrictions on the publication of research if the contract  
            would involve the analysis or processing of personally  
            identifiable information collected without the knowledge of  
            the individuals to whom it pertains.  

          5)Defines "individual" to mean a natural person, regardless of  
            citizenship.

          6)Defines "personally identifiable information" to mean  
            information that can be used to distinguish or trace an  
            individual's identity, including, but not limited to, an  
            individual's name, social security number, or biometric  
            records, whether alone or when combined with other personal or  
            identifying information that is linked or linkable to a  
            specific individual.  

           EXISTING LAW  establishes CCC managed by locally elected  
          governing boards, with oversight provided by the CCC Board of  
          Governors.  Establishes the UC as a public trust under the  
          control of the UC Regents, and provides that statutes are  
          applicable to UC only to the extent that the UC Regents make  
          such provisions applicable.  Confers upon the CSU Trustees the  
          powers, duties, and functions with respect to the management,  
          administration, and control of the CSU system.

           FISCAL EFFECT  :  Unknown

           COMMENTS :   Purpose of this bill  .  According to the author,  
          federal intelligence agencies often contract with institutions  
          of higher education for technical and advanced research; these  
          same intelligence agencies engage in bulk metadata collection  
          practices that violate fundamental privacy expectations.  Given  
          the nature of intelligence activities, it is difficult to know  
          the extent to which a higher education institution in California  
          is engaged, or has engaged in research that may assist, directly  
          or indirectly, with the surveillance activities of a federal  
          intelligence agency.  There is currently no accountability or  
          disclosure process for a California institution seeking to  








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          engage in intelligence research contracts. Intelligence research  
          that assists in federal surveillance activities has proven to  
          push the limits of constitutional privacy protections. The  
          current lack of accountability provides state lawmakers no  
          oversight role in potential intelligence activities; this is  
          especially troubling in the case of public institutions, such as  
          the UC.  

          According to the author, this bill is intended to address the  
          obscure and undisclosed nature of intelligence agency sponsored  
          contracts by (1) requiring public disclosure when personally  
          identifiable information is used in research, and (2)  
          prohibiting contracts that use personally identifiable  
          information collected without consent when the intelligence  
          agency places restrictions on the publication of that research.   


           UC and matters of statewide concern.   The California  
          Constitution (Section 9 of Article IX) establishes UC as a  
          public trust and confers the full powers of the UC upon the UC  
          Regents.  The Constitution establishes that the UC is subject to  
          legislative control only to the degree necessary to ensure the  
          security of its funds and compliance with the terms of its  
          endowments.  Judicial decisions have held that there are three  
          additional areas in which there may be limited legislative  
          intrusion into university operations: authority over the  
          appropriation of state moneys; exercise of the general police  
          power to provide for the public health, safety and welfare; and,  
          legislation on matters of general statewide concern not  
          involving internal university affairs.  While potentially  
          subject to judicial review, arguably, by placing requirements  
          and prohibitions on research activities conducted at all  
          California institutions in order to protect the constitutional  
          right to privacy, this bill addresses a matter of statewide  
          concern.  

          The author may wish to establish findings and declarations that  
          outline the reasons why this legislation addresses a matter of  
          statewide concern regarding constitutional privacy protections.   


           UC research and author request for information  .  UC practice, in  
          support of academic freedom and faculty publishing rights, is to  
          refuse to perform classified research on campuses.  UC's policy,  
          however, allows for exceptions to be made in cases involving  








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          national security interest.  Committee staff understands that  
          the authority to approve an exception to the classified research  
          prohibition rests with the UC President.  In March 2014, the  
          author wrote to President Napolitano requesting information  
          regarding the extent to which UC participates in research  
          contracts that utilizes personally identifiable information.   
          Committee staff understands that UC is in the process of  
          reviewing and formally replying to the author's request for  
          information.   

           Impact on legitimate private institution research activities  .   
          As drafted, this bill would place reporting requirements and  
          contract restrictions on both public and private postsecondary  
          educational institutions.  The Association for Independent  
          California Colleges and Universities (AICCU) has expressed  
          concerns that it is difficult for their member institutions to  
          determine in advance of entering a contract whether research may  
          be indirectly linked to federal government surveillance.  AICCU  
          argues that this bill would make it difficult for member  
          institutions to conduct any classified research from the  
          intelligence community because of the impossibility to  
          predetermine whether personally identifiable information will be  
          analyzed or processed.     

           Limitations of enforcement  . As drafted, this bill would apply to  
          higher education institutions in California and research  
          institutions managed by or affiliated with these institutions.   
          However, it is unclear how this requirement would be enforced in  
          cases where the higher education institution does not have  
          management control over the affiliated research entity.  For  
          example, UC is arguably still "affiliated" with Los Alamos  
          National Laboratory, but since 2006 has had no direct authority  
          over operations or contracting decisions.    

           Related legislation .  SB 828 (Lieu and Anderson) would prohibit  
          the state from providing material support, participation, or  
          assistance to any federal agency attempting the illegal  
          unconstitutional collection of electronic data, without consent,  
          of any person not based on a warrant that particularly describes  
          the person, place, and thing to be searched or seized, or in  
          accordance with judicially recognized exceptions to warrant  
          requirements.  SB 828 is scheduled for hearing in the Senate  
          Public Safety Committee on April 29, 2014.  
           
           REGISTERED SUPPORT / OPPOSITION  :   








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           Support 
           
          American Civil Liberties Union of California

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960