BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2013-2014 Regular Session               B

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          SB 467 (Leno)                                               
          As Amended April 1, 2013
          Hearing date:  April 30, 2013
          Penal Code
          MK:jr


                                       PRIVACY: 

                         ELECTRONIC COMMUNICATIONS; WARRANTS  



                                       HISTORY

          Source:  Electronic Frontier Foundation

          Prior Legislation: SB 662 (Figueroa) Chapter 896, Stats. 1999

          Support: American Civil Liberties Union; California Attorneys  
          for Criminal Justice;                                        
          California Public Defenders Association

          Opposition:California State Sheriffs' Association; California  
          District Attorneys Association 



                                         KEY ISSUE
           
          SHOULD THE LAW REQUIRE A SEARCH WARRANT WHEN A GOVERNMENTAL AGENCY  
          IS SEEKING THE CONTENTS OF A WIRE OR ELECTRONIC COMMUNICATION THAT  
          IS STORED, HELD OR MAINTAINED BY A PROVIDER?




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                                       PURPOSE

          The purpose of this bill is to require a search warrant when a  
          governmental agency is seeking the contents of a wire or  
          electronic communication that is stored, held or maintained by a  
          provider.
          
           The US Constitution  provides that "the right of the people to be  
          secure in their persons, houses, papers, and effects, against  
          unreasonable searches and seizures, shall not be violated, and  
          no warrants shall issue, but upon probable cause, supported by  
          Oath or affirmation, and particularly describing the place to be  
          searched and the persons or things to be seized." (4th Amendment  
          of the U.S. Constitution.)

           The California Constitution  provides that "the right of the  
          people to be secure in their persons, houses, papers and effects  
          against unreasonable seizures and searches may not be violated;  
          and a warrant may not issue except on probable cause, supported  
          by oath or affirmation, particularly describing the place to be  
          searched and the persons and things to be seized." (Article I,  
          Section 13 of the California Constitution.)
           
          Existing law  defines a "search warrant" as an order in writing  
          in the name of the People, signed by a magistrate, directed to a  
          peace officer, commanding him or her to search for a person or  
          persons, a thing or things, or personal property, and in the  
          case of a thing or things or personal property, bring the same  
          before the magistrate.  (Penal Code � 1523.)

           Existing law  provides that a search warrant may be issued upon  
          any of the following grounds:

                a)   When the property was stolen or embezzled.

                b)   When the property or things were used as the means of  
          committing a felony.





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                 c)   When the property or things are in the possession of  
                any person with the intent to use them as a means of  
                committing a public offense, or in the possession of  
                another to whom he or she may have delivered them for the  
                purpose of concealing them or preventing them from being  
                discovered.

                d)   When the property or things to be seized consist of  
                any item or constitute any evidence that tends to show a  
                felony has been committed, or tends to show that a  
                particular person has committed a felony.

                e)   When the property or things to be seized consist of  
                evidence that tends to show that    sexual exploitation of  
                a child, or possession of matter depicting sexual conduct  
                of a person under the age of 18 years, has occurred or is  
                occurring.

                       f)   When there is a warrant to arrest a person.

                       g)   When a provider of electronic communication  
          service or remote computing service   
                has records or evidence, showing that property was stolen  
                or embezzled constituting a         misdemeanor, or that  
                property or things are in the possession of any person  
                with the intent to use them as a means of committing a  
                misdemeanor public offense, or in the possession of  
                another to whom he or she may have delivered them for the  
                purpose of concealing them or preventing their discovery.   
                (Penal Code � 1524(a).)
           Exiting law  provides that a search warrant cannot be issued but  
          upon probable cause, supported by affidavit, naming or  
          describing the person to be searched or searched for, and  
          particularly describing the property, thing or things and the  
          place to be searched. (Penal Code � 1525.)

           Existing federal law  provides that a governmental entity may  
          require the disclosure by the provider of the contents  of  
          electronic communications in electronic storage for one hundred  
          and eighty days or less only pursuant to a warrant under the  




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          Federal Rules or under an equivalent state warrant. (18 USCS  
          2701 et seq)

           Existing law provides for a process for a search warrant for  
          records that are in the actual or constructive possession of a  
          foreign corporation that provides electronic communication  
          services or remote computing services to the general public,  
          where the records would reveal the identity of the customers  
          using those services, data stored by, or on behalf of, the  
          customer, the customer's usage of those services, the recipient  
          or destination of communications sent or from those customers,  
          or the content of those communications. (Penal Code � 1524.2)

           This bill  removes the requirement that to be subject to these  
          warrant procedures the corporation must provide services to the  
          general public.

           This bill  provides that a governmental entity shall not obtain  
          from a provider of electronic communication services or remote  
          computing services the contents of a wire or electronic  
          communication that is stored, held, or maintained by that  
          service provider without a valid search warrant issued by a duly  
          authorized magistrate, with jurisdiction of the offense under  
          investigation.

           This bill  provides that within three days after a governmental  
          entity receives those contents from a service provider, the  
          governmental entity shall serve upon, or deliver by registered  
          or first-class mail, electronic mail, or other means reasonably  
          calculated to be effective as specified by the court issuing the  
          warrant, to the subscriber, customer, or user a copy of the  
          warrant and a notice that includes specified information.

           This bill  defines "governmental entity" as a department or  
          agency of the state or any political subdivision thereof, or any  
          individual acting for or on behalf of the state or any political  
          subdivision thereof.

           This bill  provides that a governmental entity acting under Penal  
          Code Section 1524.5 may, when a search warrant is sought,  




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          include in the application a request, supported by a sworn  
          affidavit, for an order delaying the warrant notification  
          required under this bill.  The court shall grant the request for  
          delayed notification if it determines there is reason to believe  
          that notification of existence of the warrant may have an  
          adverse result.  The delay of the notification shall not be for  
          more than 90 days, with extensions granted in 90 day increments  
          upon a continuing finding of the same grounds.

           This bill  provides that upon expiration of the period of delay  
          of warrant notification, the governmental entity shall serve  
          upon, or deliver by registered or first-class mail, electronic  
          mail, or other means reasonably calculated to be effective as  
          specified but the court issuing the warrant, the customer, user  
          or subscriber a copy of the warrant together with a notice that  
          does both of the following:

                 States with reasonable specificity the nature of the  
               governmental inquiry.
                 Informs the customer, user, or subscriber all of the  
               following:
                  o         That information maintained for the customer  
                    or subscriber by the service provider named in the  
                    process or request was supplied to, or requested by,  
                    that governmental entity and the date on which the  
                    supplying request took place.
                  o         That warrant notification to the customer or  
                    subscriber was delayed.
                  o         The grounds for the court's determination to  
                    grant the delay.
                  o         Which provisions of the Penal Code authorized  
                    the delay.

           This bill  provides that a service provider may divulge the  
          contents of a communication under any of the following  
          circumstances:

                 To an addressee or intended recipient of the  
               communication or an agent of the addressee or intended  
               recipient.




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                 As otherwise authorized by Penal Code Section 1524.2.
                 With the lawful consent of the originator, an addressee  
               or intended recipient of the communication, or the  
               subscriber in the case of remote computing service.
                 To a person employed or authorized or whose facilities  
               are used to forward the communication to its destination.
                 As may be necessary incident to the rendition of the  
               service or to the protection of the rights or property of  
               the provider of that service.
                 To law enforcement agency if the contents were  
               inadvertently obtained by the service provider and appear  
               to pertain to the commission of a crime.
                 To a governmental entity, if the provider, in good  
               faith, believes that an emergency involving the danger of  
               death or serious physical injury to any person requires  
               disclosure without delay of communications relating to the  
               emergency.

           This bill  provides that any provider of electronic communication  
          service or remote computing service, subscriber, or other person  
          aggrieved by any knowing or intentional violation of the warrant  
          and notice provisions may in a civil action, recover from the  
          person, entity, or governmental entity that committed the  
          violation, relief as may be appropriate including but not  
          limited to the following:

                 Preliminary and other equitable or declaratory relief.
                 Actual damages suffered by the plaintiff and any profits  
               made by the violator as a result of the violation but no  
               less than $1,000.
                 Reasonable attorney's fees and other litigation costs  
               reasonably incurred.
                 Punitive damages if the violation is willful and  
               intentional.

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  




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          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy known as "ROCA" (which  
          stands for "Receivership/ Overcrowding Crisis Aggravation"), the  
          Committee held measures which created a new felony, expanded the  
          scope or penalty of an existing felony, or otherwise increased  
          the application of a felony in a manner which could exacerbate  
          the prison overcrowding crisis.  Under these principles, ROCA  
          was applied as a content-neutral, provisional measure necessary  
          to ensure that the Legislature did not erode progress towards  
          reducing prison overcrowding by passing legislation which would  
          increase the prison population.  ROCA necessitated many hard and  
          difficult decisions for the Committee.

          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order issued by the Three-Judge Court three years  
          earlier to reduce the state's prison population to 137.5 percent  
          of design capacity.  The State submitted in part that the, ". .  
          .  population in the State's 33 prisons has been reduced by over  
          24,000 inmates since October 2011 when public safety realignment  
          went into effect, by more than 36,000 inmates compared to the  
          2008 population . . . , and by nearly 42,000 inmates since 2006  
          . . . ."  Plaintiffs, who opposed the state's motion, argue in  
          part that, "California prisons, which currently average 150% of  
          capacity, and reach as high as 185% of capacity at one prison,  
          continue to deliver health care that is constitutionally  
          deficient."  In an order dated January 29, 2013, the federal  
          court granted the state a six-month extension to achieve the  
          137.5 % prisoner population cap by December 31st of this year.  

          In an order dated April 11, 2013, the Three-Judge Court denied  
          the state's motions, and ordered the state of California to  




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          "immediately take all steps necessary to comply with this  
          Court's . . . Order . . . requiring defendants to reduce overall  
          prison population to 137.5% design capacity by December 31,  
          2013."         

          The ongoing litigation indicates that prison capacity and  
          related issues concerning conditions of confinement remain  
          unresolved.  However, in light of the real gains in reducing the  
          prison population that have been made, although even greater  
          reductions are required by the court, the Committee will review  
          each ROCA bill with more flexible consideration.  The following  
          questions will inform this consideration:


                 whether a measure erodes realignment;
                 whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and
                 whether a bill addresses a major area of public safety  
               or criminal activity for which there is no other  
               reasonable, appropriate remedy.

                                      COMMENTS

          1.  Need for the bill  

          According to the author:

               SB 467 updates California's electronic privacy law into  
               the modern age, ensuring emails and other electronic  
               communications content are protected from warrantless  
               government intrusion when stored online and in the  
               cloud.

               Under SB 467, no government entity shall obtain the  




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               contents of an electronic communication without a  
               warrant issued by an officer of the court, regardless  
               of how long it has been in electronic storage or  
               whether it has been opened or unopened. 

               Law enforcement's ability to investigate and solve  
               crimes with the aid of electronic communications will  
               not be harmed by SB 467. First, the federal Department  
               of Justice recently announced for the first time that  
               it supports a requirement that law enforcement obtain a  
               search warrant before accessing the contents of  
               electronic communications from a service provider.<1>

               Second, SB 467 codifies the practices of some of the  
               biggest technology companies in California, including  
               Google, Facebook, Microsoft and Yahoo!, all of whom  
               require a search warrant before disclosing the contents  
               of electronic communications.<2> 

               Third, SB 467 allows police to obtain the contents of  
               electronic communications without a warrant if they  
               have the consent of the user, or an emergency involving  
               the risk of death or serious injury requires immediate  
               disclosure of electronic communications without a  
               search warrant.

          2.  Existing Law for Obtaining Electronic Communications  

          Congress enacted the Electronic Communications Privacy Act in  
          ---------------------------
          <1>
           See "Justice Dept. drops fight against tougher rules to access  
          e-mail," Washington Post, Mar. 19, 2013,  
          http://www.washingtonpost.com/world/national-security/justice-dep 
          t-drops-fight-against-tougher-rules-to-access-e-mail/2013/03/19/8 
          90edc5c-90c4-11e2-9abd-e4c5c9dc5e90_story.html
          <2> See "Google, Microsoft, Yahoo, and Facebook say they require  
          warrants to give over private content," The Verge, Jan. 26,  
          2013,  
          http://www.theverge.com/2013/1/26/3917684/google-microsoft-yahoo- 
          facebook-require-warrants-private-content



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          1986 to govern how law enforcement can access our personal  
          electronic communications which are stored by a service  
          provider.  No warrant is needed if the information is more than  
          180 days old.  In 1999, California enacted a provision to  
          provide a process for a California search warrant to be served  
          on an out of state corporation providing electronic  
          communications services or remote computing services to the  
          general public. The section explicitly states it should be  
          construed to be consistent with the federal act.

          3.  Warrant Requirement for Obtaining Electronic Communication or  
          Remote Computing Services  

          The author and sponsor note that the ability and use of  
          electronic communications has changed substantially since  
          Congress passed the Electronic Communications Privacy Act.  On  
          his website   Senator Leno summarizes the change:

               In 1986, Congress enacted the Electronic Communications  
               Privacy Act (ECPA), which currently governs how law  
               enforcement can access our personal electronic  
               communications, which are stored online by service  
               providers such as Google, Microsoft, Facebook and  
               Twitter. As it stands today, law enforcement can obtain  
               the content of all opened email and unopened email 180  
               days or older without user notice or the oversight  
               protections afforded by a search warrant. When ECPA was  
               drafted, the internet was still in its  
               infancy--personal computers were not yet widely adopted  
               and we still predominately communicated by landline  
               telephones. At the time, ECPA may have made sense, but  
               our current technology has far outpaced the law. Just  
               as we have evolved to keep pace with advances in  
               technology, so too must our privacy laws adapt to  
               accurately reflect our modern electronic age.  
           
          This bill requires a government agency to obtain a search  
          warrant before accessing all personally identifiable  
          communications stored by online service providers. Specifically  
          this bill requires:




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                 That a warrant must be obtained for the contents of wire  
               or, electronic communications that is stored, held or  
               maintained by a service provider.



                 Within 3 days after a governmental entity shall serve to  
               the subscriber, customer or user a copy of the warrant that  
               includes information the nature of the inquiry and the  
               information that was supplied to the governmental entity.
                 The governmental entity can delay notification for up to  
               90 days if the court finds there is a reason to believe  
               that the warrant notification may have an adverse result.
                 Provides for extensions of the notification delays in 90  
               day increments with the same findings by the court.
                 When the delay expires the customer, user, or subscriber  
               shall be notified regarding the nature of the governmental  
               inquiry; what information was supplied to or requested by  
               the governmental entity and the date of the request; that  
               the notice was delayed and the reasons for that delay.























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           This bill  also provides that a person or entity providing  
          electronic communication service or remote computing devices  
          shall not knowingly divulge to any person or entity the contents  
          of a wire or electronic communication that is stored, held, or  
          maintained except under the following circumstances:

                 To an addressee or recipient of the communication.
                 As authorized by a warrant.
                 With the lawful consent of the originator, and addressee  
               or the intended recipient of the communication, or the  
               subscriber in the case of remote computing service.
                                                                                              To a person employed or authorized whose facilities are  
               used to forward the communication to its destination.
                 As may be necessary incident to the rendition of the  
               service or to the protection of the rights or property of  
               the provider of that services.
                 To a law enforcement agency if the contents were  
               inadvertently obtained by the service provider and appear  
               to pertain to the commission of a crime.
                 To a governmental entity, if the provider, in good  
               faith, believes that an emergency involving the danger of  
               death or serious physical injury to any person requires the  
               disclosure without delay.

          A provider of electronic communication services or remote  
          computing service, subscriber or other person aggrieved by any  
          knowing or intentional release of information in violation of  
          the law shall in a civil action recover from the person, entity  
          or governmental action appropriate relief that may be, but is  
          not limited to the following:

                 Preliminary and other equitable or declaratory relief;
                 Damages including the sum of actual damages suffered by  
               the plaintiff and any profits made by the violator, but no  
               less than $1,000; and
                 Reasonable attorney's fees and other litigation costs.








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          4.  Potential Conflict with Wiretap Provisions  

          Existing law sets forth detailed requirements going beyond a  
          simple warrant for law enforcement to intercept communications.   
          Included in those provisions are electronic communications.   
          While this bill appears to be intended to address the search of  
          stored communications and thus should not overlap with the  
          provisions dealing with intercepting communications, it may be  
          appropriate to clarify that Penal Code Sections 629.50 et seq  
          still apply when an electronic communication is being  
          intercepted as it occurs.

          5  .  Support  

          The ACLU supports the requirement that government agencies  
          obtain a warrant prior to accessing electronic communications  
          held by third parties. Specifically:

               The Founding Fathers recognized that citizens in a  
               democracy are entitled to privacy, writing in the  
               Fourth Amendment that "[t] right of the people to be  
               secure in their persons, houses, papers, and effects,  
               against unreasonable searches and seizures shall not be  
               violated, and no warrants shall issue, but upon  
               probable cause."  That remains as true as ever. But our  
               privacy laws have not kept up as technology has changed  
               the way we hold information.

               The warrant and probable cause requirements are  
               especially important today given the extraordinary  
               intrusiveness of modern-day electronic surveillance. As  
               technology has changed the way we hold information.

               The warrant and probable cause requirements are  
               especially important today given the extraordinary  
               intrusiveness of modern-day electronic surveillance. As  
               technology has advanced and we have entered the digital  
               age, more and more of our personal information has been  
               gathered, compiled, and stored in easily accessible  
               forms. Private correspondence once took the form only  












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               of letters sent through the postal service. They were  
               typically stored within the home, and were often  
               irretrievable discarded after a few days. By contrast  
               an individual's emails are typically sorted by a third  
               party on a centralized, remote, server, can be searched  
               easily for key terms and may never be deleted  
               permanently.

               Current law arguably authorized government agencies to  
               access many of these private communications without  
               obtaining a probable cause warrant if they have been  
               opened and stored on a server for 180 days. SB 467  
               repairs and updates existing laws by ensuring the  
               electronic communications, including emails, can be  
               accessed only with a warrant regardless of how long it  
               is held by third parties.


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