BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          SB 849 (Anderson)
          As Amended April 21, 2014
          Hearing Date: May 6, 2014
          Fiscal: No
          Urgency: No
          TMW


                                        SUBJECT
                                           
                        Decedents' Estates:  Electronic Mail

                                      DESCRIPTION  

          Existing law authorizes a personal representative to take  
          possession or control of all property of the decedent to be  
          administered in the decedent's estate.  This bill would  
          authorize the decedent's personal representative to request from  
          an electronic communication service or remote computer service,  
          access to, or copies of documents from, the electronic mail  
          account of the decedent, as specified.  This bill would require  
          the personal representative, prior to submitting the request to  
          the electronic communication service or remote computer service,  
          to obtain an order of the probate court designating the executor  
          or administrator as an agent for the subscriber on behalf of his  
          or her estate and ordering that the estate shall first indemnify  
          the electronic communication service or remote computing service  
          from all liability in complying with the order.

          This bill would authorize an electronic communication service or  
          remote computer service to provide access to or copies of  
          documents from the decedent's electronic mail account.  This  
          bill would also provide that access or copies of electronic  
          communications is subject to copyright law, as well as any  
          applicable and enforceable terms of a service agreement.

                                      BACKGROUND  

          Existing law authorizes a decedent's personal representative  
          (which may be an executor, trustee, administrator, administrator  
          with the will annexed, special administrator, successor personal  
                                                                (more)



          SB 849 (Anderson)
          Page 2 of ?



          representative, or public administrator) to take possession and  
          control of the decedent's property to be administered in the  
          estate.

          With the explosion of the various uses of the Internet,  
          including electronic communication through email, social media  
          Web sites, blogs, and electronic media purchases through such  
          Web sites as iTunes and Amazon.com, questions regarding  
          ownership and access to those "digital assets" upon death or  
          incapacity are becoming more common.  According to the National  
          Conference of Commissions on Uniform State Laws, these digital  
          assets, which range from online gaming items to photos, to  
          digital music, to clients, have real value:  American consumers  
          valued their digital assets, on average, at almost $55,000.   
          (National Conference of Commissioners on Uniform State Laws,  
          Draft of Fiduciary Access to Digital Assets Act (Apr. 10, 2014),  
          p. 1, citing Green, Passing Down Digital Assets, Wall Street  
          Journal (Aug. 31, 2012)  
           [as of Apr. 30, 2014].)  The ability of a  
          personal representative to gain access or control over those  
          digital assets is unclear and is subject to both federal privacy  
          and computer "hacking" laws as well as state probate law.   
          Complicating these issues are the terms of service agreements  
          that most Internet service providers and Web sites require their  
          users to agree to in order to use these services and sites.

          To address the issue of personal representative access to a  
          decedent's digital access, this bill would authorize the  
          personal representative to request, and would authorize an  
          electronic communication service or remote computer service to  
          provide, access to the electronic mail account of a decedent or  
          to copies of the content of the account, subject to any  
          applicable service agreement.  This bill would require the  
          personal representative to provide the account's service  
          provider with a certified copy of the court order appointing the  
          personal representative, a copy of the decedent's death  
          certificate, a written request for access or copies, and an  
          order of the probate court designating the executor or  
          administrator as an agent for the subscriber and requiring the  
          estate to indemnify the electronic communication service or  
          remote computing service from all liability in complying with  
          the order.

                                CHANGES TO EXISTING LAW
           
                                                                      



          SB 849 (Anderson)
          Page 3 of ?



           Existing law  authorizes a decedent's personal representative to  
          take possession or control of all of the decedent's property to  
          be administered in the decedent's estate.  (Prob. Code Sec.  
          9650(a)(1).)

           Existing law  requires the personal representative to take all  
          steps reasonably necessary for the management, protection, and  
          preservation of, the estate in his or her possession.  (Prob.  
          Code Sec. 9650(b).)

           Existing law  authorizes the real property or tangible personal  
          property to be left with or surrendered to the person  
          presumptively entitled to it unless or until, in the judgment of  
          the personal representative, possession of the property by the  
          personal representative will be necessary for purposes of  
          administration.  Existing law requires a person holding the  
          decedent's property to surrender it to the personal  
          representative on requires by the personal representative.   
          (Prob. Code Sec. 9650(c).)

           Existing federal law  , the Electronic Communications Privacy Act  
          (ECPA), defines "electronic communication service" to mean any  
          service which provides to users thereof the ability to send or  
          receive wire or electronic communications.  (18 U.S.C. Sec.  
          2510(15).)  The Stored Communications Act (SCA) defines "remote  
          computing service" to mean the provision to the public of  
          computer storage or processing services by means of an  
          electronic communications system.  (18 U.S.C. Sec. 2711(2).)

           This bill  would authorize the personal representative of a  
          decedent to request access to the electronic mail account of a  
          decedent, or copies of the content of the account, by providing  
          the service provider of the account with all of the following:
           a certified copy of the court order appointing the personal  
            representative;
           a copy of the death certificate of the decedent;
           a written request for access to, or copies of the content of,  
            the electronic mail account; and
           an order of the probate court which, by law, has jurisdiction  
            over the estate of a deceased person, designating the executor  
            or administrator as an agent for the subscriber, as defined in  
            the ECPA, on behalf of his or her estate, and ordering that  
            the estate shall first indemnify the electronic communication  
            service or remote computing service, as defined in the ECPA,  
            from all liability in complying with the order.

                                                                      



          SB 849 (Anderson)
          Page 4 of ?



           This bill  would authorize an electronic communication service or  
          remote computer service, as defined under the ECPA, to provide  
          to the personal representative or administrator of the  
          decedent's estate who was domiciled in California at the time of  
          his or her death access to the electronic mail account of a  
          decedent or copies of the content of the account if the personal  
          representative has provided the above information.

           This bill  would provide that any provision of access or copies  
          of electronic communications is subject to copyright law as well  
          as any applicable and enforceable terms of a service agreement.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            According to the nonpartisan National Conference of  
            Commissioners on Uniform State Laws, "As the number of digital  
            assets held by the average person increases, questions  
            surrounding the disposition of these assets upon the  
            individual's death or incapacity are becoming more common. Few  
            holders of digital assets and accounts consider the fate of  
            their online presences once they are no longer able to manage  
            their assets.  And these assets have real value: according to  
            a 2011 survey from McAfee, Intel's security-technology unit,  
            American consumers valued their digital assets, on average, at  
            almost $55,000.  These assets range from online gaming pieces  
            to photos, to digital music to client lists to bank accounts  
            to bill-paying, etc.  There are 30 million Facebook accounts  
            that belong to dead people. The average individual has 25  
            passwords.  Some service providers have explicit policies on  
            what will happen when an individual dies, others do not; even  
            where these policies are included in the terms of service,  
            most consumers click-through these agreements."

            Senate Bill 849 frees grieving families to enable decedents to  
            act on behalf of the memories and lives of their loved ones,  
            and allowing them the right to treat their legacies and  
            reputations with honor, love, and respect.  This bill provides  
            a pathway so that rights and responsibilities of all involved  
            are not left to guesswork but made reasonably clear.
            
            Time Magazine explained, in its July 27, 2013 issue, "What  
            happens to all your digital possessions-your witty Gmails,  
                                                                      



          SB 849 (Anderson)
          Page 5 of ?



            your candid Facebook snapshots, your exhaustive iTunes  
            collection of Barry White-when you shuffle off this mortal  
            coil?  More than 10 states have considered bills so far this  
            year related to so-called digital assets, and two made it past  
            the governor's desk.  That brings the total to seven states  
            that have laws on the books, addressing an issue that will  
            only become more important as tech-obsessed generations age."

            A grim reality is more than virtual.  Bullying and other  
            struggles are hidden behind the wall of electronic secrecy,  
            lasting longer than do their victims.  Just one example  
            reported by the Washington Post:  "?Ricky Rash's search for  
            answers began almost from the moment he found his son's body  
            in a field a few miles from their Virginia farm.  Why would a  
            15-year-old boy take his own life?  Why especially this boy, a  
            hard-working teenager whose dreams and intelligence seemed  
            sure to take him far beyond his Nottoway County dairy farm?   
            Here was a kid who was big for his age but gentle, who loved  
            to read so much that he carried his Kindle into the woods when  
            he hunted deer and talked of going to Virginia Tech and then  
            maybe Harvard Law School.  After Eric Rash, 15, committed  
            suicide in January 2011, his parents' looked everywhere for  
            clues to explain his act.  But they ran into trouble when they  
            tried to open his Facebook account.  Now Richard and Diane  
            Rash are pushing for laws that would make it easier for  
            parents or guardians to obtain access to a dead child's online  
            accounts.  After Eric's suicide in January 2011, Ricky and  
            Diane Rash hunted for clues to explain their son's death,  
            including his Facebook page.  But they found that the Internet  
            giant, citing state and federal privacy laws, blocked their  
            access until their son's estate was settled. So now the Rashes  
            want to change the law.  'We were just grieving parents  
            reaching out for anything we could,' Ricky Rash said."

          2.  Confusion regarding effect of bill on probate administration  

          In order to obtain access to the decedent's electronic mail  
          account or copies of the content of that account, this bill  
          would require the decedent's personal representative to obtain  
          an order of the probate court designating the executor or  
          administrator as an agent for the "subscriber," on behalf of his  
          or her estate, and ordering that the estate shall first  
          indemnify the electronic communication service or remote  
          computing service, as defined in the ECPA, from all liability in  
          complying with the order.

                                                                      



          SB 849 (Anderson)
          Page 6 of ?



          California Judges Association (CJA), in opposition, asserts that  
          "the bill contains an indemnification provision that would  
          effectively prevent the court from discharging the personal  
          representative, and would leave cases open indefinitely."   
          Particularly, what would be the duration and amount of the  
          estate's indemnity liability?  How would the indemnity  
          obligation to the electronic communications service or remote  
          computing service, which may not be claimed by the electronic  
          communications service until long after the personal  
          representative accessed the account, affect the estate's other  
          contingent liabilities or the ability of the estate to complete  
          administration?  And would this liability obligation be covered  
          by the personal representative's bond? Would this bill apply to  
          conservators and attorneys-in-fact under powers of attorney,  
          and, if not, should it?  These are just a few questions about  
          how the bill would operate in probate cases, yet these questions  
          merely scratch the surface of the complex area of law.

          Another area of concern with this bill is privacy.  The Internet  
          Association (TIA), in support, argues that the federal Stored  
          Communication Act imposes clear duties on providers of  
          electronic communications services, "[a]nd while federal law has  
          taken a strong policy position in favor of the privacy of the  
          contents of electronic communications, there are currently a  
          number of states considering a different approach that would  
          require full disclosure without taking into consideration the  
          privacy of other individuals, such as a living person who  
          happens to be a party to, or is discussed without, a decedent's  
          email.  SB 849 takes an approach that favors privacy."  Staff  
          notes that this bill does not require any consent from a living  
          person who was a party to the decedent's email, nor any stated  
          desire of the decedent that his or her email should be accessed  
          and read upon the death of the decedent.  TIA asserts that "SB  
          849 helps answer the question of who should be able to obtain  
          access to the contents of a user's digital assets -- such as an  
          email or social media account - upon the death of that user.   
          The bill would clarify that such digital assets should not be  
          granted to any third party or fiduciary absent strong  
          verification and authentication requirements, court supervision,  
          or the consent of the decedent."  Staff notes that this bill  
          does not authorize access to "digital assets" - only access to  
          the decedent's electronic mail account - and does not provide  
          for the consent of the decedent. Arguably, the only provisions  
          in this bill that TIA would support are (1) indemnification for  
          the account services, and (2) the savings clause in this bill  
          that states that any provision of access or copies of the  
                                                                      



          SB 849 (Anderson)
          Page 7 of ?



          electronic communications is subject to copyright law as well as  
          any applicable and enforceable terms of a service agreement  
          (presumably between the service and the decedent).

          Contrary to the opinion of TIA, the American Civil Liberties  
          Union (ACLU) has expressed concern that this bill may not  
          properly protect the decedent's privacy.  The ACLU has suggested  
          an amendment to the bill to also require the personal  
          representative to provide a copy of the decedent's will granting  
          the executor or administrator access to, or copies of the  
          content of, the decedent's electronic mail account.  However,  
          that amendment would not further the author's intent to help  
          parents gain access to their deceased child's electronic  
          communications because the child would not have created a will  
          authorizing the parents to gain access to his or her online  
          accounts.  These concerns regarding the decedent's privacy  
          demonstrates another problem with this bill in that it fails to  
          take into account the appropriate level of access to the account  
          of the decedent, who has not planned, or is too young to have  
          considered planning, for providing access to his or her account,  
          whether the personal representative named for handling the  
          estate assets is the person the decedent would have wanted  
          reading their private email communications, and what level of  
          control or distribution of those private communications the  
          personal representative is authorized to assert.

           3.Concerns regarding stated intent and actual scope of the bill 

          This bill would authorize a decedent's personal representative  
          to request access to or copies of content of electronic  
          communication services or remote computer services used by the  
          decedent.  The author asserts that this bill would free grieving  
          families to act on behalf of the memories and lives of their  
          deceased loved ones, and would allow the families the right to  
          treat the decedents' legacies and reputations with honor, love,  
          and respect.  The author points to a 2007 Time Magazine article  
          discussing the issue of a decedent's "digital assets" (which may  
          include, among other things, G-mails, Facebook photos, and  
          iTunes music collections purchased by the decedent) and the  
          concerns regarding how an estate administrator can manage those  
          digital assets.

          Yet, this bill addresses only access to the decedent's  
          electronic mail account and relies on definitions provided under  
          federal law.  CJA raises the concern that this bill does not  
          speak to the larger issues of defining "digital assets" or how  
                                                                      



          SB 849 (Anderson)
          Page 8 of ?



          state law should properly provide the decedent's personal  
          representative with access to and control over digital music  
          collections, social media content posted by the decedent, blogs,  
          or other electronic assets that are continually created as the  
          Internet and Web site services evolve. 

          Although a few states have enacted legislation on providing  
          personal representative access to digital assets, these laws  
          authorize varying degrees of access to different types of  
          digital assets.  Further, the rights of a person's fiduciary,  
          the category of fiduciary included (i.e., personal  
          representative, conservator, trustee), and whether the person's  
          incapacity should be included, are among the general concerns  
          raised when enacting this type of legislation.
          
          As an alternative to this bill, CJA notes that "the National  
          Conference of Commissioners on Uniform State Laws (NCCUSL) has  
          been working on a Model Act, the Fiduciary Access to Digital  
          Assets Act, which proposes to address in a comprehensive manner  
          these and related issues.  We understand the draft Act will be  
          available later this year.  At that time, the Act's provisions,  
          designed to promote consistent and predictable standards and  
          which we are told have included a number of California  
          stakeholders, can be more fully considered to address the many  
          issues related to email as well as to social media accounts, and  
          afford the opportunity to consider how those provisions might  
          apply not only to administrators of estates of decedents, but  
          also to trustees, conservators, and attorneys-in-fact under  
          powers of attorney."  Another option is to request that the  
          California Law Revision Commission (CLRC) study fiduciary access  
          to digital assets, which would properly determine the interplay  
          between federal digital assets laws and California's probate  
          scheme in order to craft appropriate legislation for the needs  
          of California's residents.

          Apart from the obvious preference of using a proposed uniform  
          law or enacting legislation properly researched by the CLRC with  
          public comment, this bill has some drafting issues.  This bill  
          would rely on the ECPA definition of "electronic communication,"  
          which means any transfer of signs, signals, writing, images,  
          sounds, data, or intelligence of any nature transmitted in whole  
          or in part by a wire, radio, electromagnetic, photoelectronic or  
          photooptical system that affects interstate or foreign commerce.  
           (18 U.S.C. Sec. 2510(12).  This bill also purports to rely on  
          the ECPA definition of "remote computer service," but that act  
          does not provide such a definition.  However, the Stored  
                                                                      



          SB 849 (Anderson)
          Page 9 of ?



          Communications Act (SCA) defines "remote computing service" to  
          mean the provision to the public of computer storage or  
          processing services by means of an electronic communications  
          system.  (18 U.S.C. Sec. 2711(2).)  Notably, this bill does not  
          utilize the same term as in the SCA, so it is unclear whether  
          "remote computer service" would be interpreted to mean "remote  
          compute service" under the SCA.  Additionally, this bill would  
          provide that "subscriber" is defined under the ECPA, but neither  
          the ECPA nor the SCA provide a definition for "subscriber."


           Support  :  The Internet Association

           Opposition  :  California Judges Association

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :  None Known

                                   **************