BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2152
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2152 (Levine) - As Amended:  May 7, 2014 

          Policy Committee:                              Higher  
          EducationVote:12-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill places limits and conditions on public postsecondary  
          institutions' contracts with federal intelligence agencies.  
          Specifically, this bill:

             1)   Requires the University of California (UC), the  
               California State University (CSU), and the California  
               Community Colleges (CCC), and any campus or research  
               institution managed by or affiliated with one of these  
               segments, prior to entering into a contract with a federal  
               intelligence agency, to determine whether the contract  
               would involve analysis or processing of personally  
               identifiable information, as defined. If so, the contract  
               must require the federal agency to disclose whether the  
               information was collected with knowledge of the individuals  
               to whom it pertains.

             2)   Requires a contract per (1) to be approved in an open  
               public meeting of the institution's governing board and to  
               disclose the type of research and information sought by the  
               federal intelligence agency if the contract would do any of  
               four specified activities involving analysis or processing  
               of personal information or the conduct of personal  
               surveillance activities.

             3)   Requires each institution to annually disclose the  
               number of contracts where a federal intelligence agency  
               sponsoring the contract limits or restricts the publication  
               of research.

             4)   Prohibits an institution from entering into a contract  








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               with a federal intelligence agency that imposes limits or  
               restricts the publication of research if the contract  
               involves analysis or processing of personally identifiable  
               information collected without the individuals' knowledge.

           FISCAL EFFECT  

          UC indicates that its Grants and Contracts Offices, which  
          negotiate and finalize research grant agreements, would incur  
          increased costs to the extent they would have to provide an  
          additional layer of review to the sizable number of contracts UC  
          routinely enters into with federal intelligence agencies.  
          Specifically, UC believes the requirement to approve in a public  
          meeting contracts that would either (a) potentially assist in  
          the analytical processing of personally identifiable information  
          of individuals, or (b) assist in the conduct of surveillance  
          activities performed by, or on behalf of, a federal intelligence  
          agency "would necessitate reasonably sophisticated analysis and  
          exercise of judgment." These additional costs cannot be readily  
          quantified, but could potentially be absorbable within the  
          operations of each UC campus.
           COMMENTS  

              1)   Purpose  . According to the author, federal intelligence  
               agencies, who often contract with higher education  
               institutions for technical and advanced research, 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 any  
               institution in California is engaged in research that may  
               assist the surveillance activities of a federal  
               intelligence agency. Intelligence research that assists in  
               federal surveillance has proved to push the limits on  
               constitutional privacy protections. This bill is intended  
               to address the obscure and undisclosed nature of  
               intelligence agency sponsored contracts.

            UC, in support of academic freedom and faculty publishing  
            rights, refuses to perform classified research on campuses.  
            UC's policy does, however, allow for exceptions to be made in  
            cases involving national security interest. The authority to  
            approve such exceptions rests with the UC President. The  
            author is awaiting a response from UC to his request for  
            information regarding the extent that UC participates in  
            research contracts utilizing personally identifiable  








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            information.

              2)   Related Legislation  . SB 828 (Lieu and Anderson), pending  
               in Senate Public Safety, prohibits the state from assisting  
               any federal agency attempting the unconstitutional  
               collection of electronic data of any person, without  
               consent and not based on a warrant.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081