BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       SB 1177|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                 UNFINISHED BUSINESS


          Bill No:  SB 1177
          Author:   Steinberg (D)
          Amended:  8/21/14
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  9-0, 3/26/14
          AYES:  Liu, Wyland, Block, Correa, Galgiani, Hancock, Hueso,  
            Huff, Monning

           SENATE JUDICIARY COMMITTEE  :  7-0, 4/29/14
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           SENATE FLOOR  :  35-0, 5/8/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De Le�n, DeSaulnier, Evans, Fuller, Galgiani, Hancock,  
            Hernandez, Hill, Hueso, Huff, Jackson, Lara, Leno, Lieu, Liu,  
            Mitchell, Monning, Morrell, Nielsen, Padilla, Pavley, Roth,  
            Steinberg, Torres, Vidak, Walters, Wolk, Wyland
          NO VOTE RECORDED:  Calderon, Gaines, Knight, Wright, Yee

           ASSEMBLY FLOOR  :  79-0, 8/25/14 - See last page for vote


           SUBJECT  :    Student Online Personal Information Protection Act

           SOURCE  :     Author


           DIGEST  :    This bill establishes the Student Online Personal  
          Information Protection Act (Act) to restrict the use and  
          disclosure of information about K-12 students. 

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          2

           Assembly Amendments  make it clear that Operators of the K-12  
          sites may not target advertising on their K-12 sites and may not  
          use information, including persistent unique identifiers, that  
          they obtain on their K-12 site to target advertising on other  
          on-line sites and services; make it clear that the K-12 site  
          operators may not amass a profile on K-12 students, except in  
          furtherance of a K-12 school purpose; allow appropriate  
          disclosure of student information for operability and  
          functionality of K-12 sites while maintaining protections on  
          that student's information; state K-12 online site is prohibited  
          from sharing student personal information unless the disclosure  
          is made, as specified; and make other technical and clarifying  
          changes.

           ANALYSIS  :    Existing law provides that, among other rights, all  
          people have an inalienable right to pursue and obtain privacy.
           
          Existing law also allows a person to bring an action in tort for  
          an invasion of privacy and provides that in order to state a  
          claim for violation of the constitutional right to privacy, the  
          following three elements must be established:

          1.Legally protected privacy interest.
          2.Reasonable expectation of privacy in the circumstances.
          3.Conduct by the defendant that constitutes a serious invasion  
            of privacy.

          Existing law provides that there is no reasonable expectation of  
          privacy in information posted on an Internet Web site.   
          Additionally, federal law requires an operator on an Internet  
          Web site or online service that has actual knowledge that it is  
          collecting personal information from a child to provide notice  
          of what information is being collected and how that information  
          is being used, and to give the parents of the child the  
          opportunity to refuse to permit the operator's further  
          collection of information from the child.
           
          Existing law requires an operator of a commercial Web site or  
          online service that collects personally identifiable information  
          through the Internet about individual consumers residing in  
          California who use or visit its Web site to conspicuously post  
          its privacy policy.
           
          Existing federal law makes it unlawful for an operator of a Web  

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          3

          site or online service directed to children under the age of 13  
          to collect personal information from a child, including a  
          child's first and last name, home or other physical address  
          including street name and name of a city or town, e-mail  
          address, telephone number, or Social Security number.
           
          The Family Educational Rights and Privacy Act (Act) protects the  
          privacy of student education records.  It applies to all schools  
          that receive funds under an applicable program of the U.S.  
          Department of Education.  Generally, schools must have written  
          permission from the parent or eligible student in order to  
          release any information from a student's education record.   
          However, the Act allows schools to disclose those records,  
          without consent, to the following parties or under the following  
          conditions:

          1.School officials with legitimate educational interest.
          2.Other schools to which a student is transferring.
          3.Specified officials for audit or evaluation purposes.
          4.Appropriate parties in connection with financial aid to a  
            student.
          5.Organizations conducting certain studies for or on behalf of  
            the school.
          6.Accrediting organizations.
          7.To comply with a judicial order or lawfully issued subpoena.
          8.Appropriate officials in cases of health and safety  
            emergencies.
          9.State and local authorities, within a juvenile justice system,  
            pursuant to specific State law.

          Schools may disclose, without consent, "directory" information  
          such as a student's name, address, telephone number, and date  
          and place of birth.  However, schools must tell parents and  
          eligible students about directory information and allow them a  
          reasonable amount of time to request that the school not  
          disclose such information.  Schools must also notify parents and  
          eligible students annually of their rights under Act.

          This bill: 

          1.Prohibits an operator of an Internet Web site, online service,  
            online application, or mobile application with actual  
            knowledge that the site, service, or application is used  
            primarily for K-12 school purposes and was designed and  

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          4

            marketed for K-12 school purposes (Operator) from knowingly  
            engaging in any of the following activities: 

             A.   Engaging in targeted advertising on the operator's site,  
               service, or application; or targeting advertising on any  
               other site, service, or application when the targeting of  
               the advertising is based upon any information, including  
               covered information and persistent unique identifiers, that  
               the operator has acquired because of the use of that  
               Operator's site, service, or application; 

             B.   Using information, including persistent unique  
               identifiers, created or gathered by the operator's site,  
               service, or application, to amass a profile about a K-12  
               student except in furtherance of K-12 school purposes; 

             C.   Selling or disclosing a student's information. This  
               prohibition does not apply to the purchase, merger, or  
               other type of acquisition of an entity that operates an  
               Internet Web site, online service, online application, or  
               mobile application by another entity; and 

             D.   Disclosing covered information, unless the disclosure is  
               made: 

                     In furtherance of the K-12 purpose of the site,  
                 service, or application; 
                     To ensure legal and regulatory compliance; 
                     To respond to or participate in judicial process; 
                     To protect the safety of users or others or security  
                 of the site; or 
                     To a service provider, provided the service provider  
                 is contractually required to comply with specified  
                 security procedures. 

          1.Requires the Operator to implement and maintain reasonable  
            security procedures and practices appropriate to the nature of  
            the covered information, to protect the personal information  
            from unauthorized access, destruction, use, modification, or  
            disclosure. 

          2.Requires an Operator to delete a student's covered information  
            if the school or district requests deletion of data under the  
            control of the school or district.   The purpose of this  

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          5

            provision is to ensure that the school or district may request  
            deletion of information and materials that have been provided  
            to or gathered by the Operator for school purposes.  The  
            school's or district's control of the data covered by this Act  
            is not affected by the possession of the data by an Operator.

          3.Provides that an Operator may disclose covered information of  
            a student under the following circumstances: 

             A.   If other provisions of federal or state law require the  
               Operator to disclose the information, and the Operator  
               complies with the requirements of federal and state law in  
               protecting and disclosing that information; 

             B.   For legitimate research purposes as required by state  
               and federal law and subject to the restrictions under state  
               and federal law or as allowed by state and federal law and  
               under the direction of a school, school district, or state  
               department of education, if no covered information is used  
               for any purpose in furtherance of advertising or to amass a  
               profile on the student for purposes other than K-12 school  
               purposes; or 

             C.   To a state or local educational agency as permitted by  
               state or federal law. 

          1.Provides than an Operator may use deidentified student covered  
            information, including aggregated and deidentified student  
            covered information, as follows: 

             A.   Within the Operator's site, service, or application or  
               other sites, services, or applications owned by the  
               Operator to improve educational products, for adaptive  
               learning purposes, and for customizing student learning; 

             B.   To demonstrate the effectiveness of the Operator's  
               products, including in their marketing; and 

             C.   To share aggregated deidentified student covered  
               information for the development and improvement of  
               educational sites, services, or applications. 

          1.Defines "online services" to include cloud computing services.  


                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          6


          2.Defines "covered information" to mean information or materials  
            in any media or format that meets any of the following: 

             A.   Are created or provided by a student, or the student's  
               parent or legal guardian, in the course of the student's,  
               parent's, legal guardian's, use of the site, service, or  
               application for K-12 school purposes; 

             B.   Are created or provided by an employee or agent of the  
               educational institution; and 

             C.   Are gathered by the site, service, or application, that  
               is descriptive of a student or otherwise personally  
               identifies a student, including, but not limited to,  
               information in the student's educational record or email,  
               first and last name, home address, telephone number, email  
               address, or other information that allows physical or  
               online contact, discipline records, test results, special  
               education data, juvenile dependency records, grades,  
               evaluations, criminal records, medical records, health  
               records, social security number, biometric information,  
               disabilities, socioeconomic information, food purchases,  
               political affiliations, religious information, text  
               messages, documents, student identifiers, search activity,  
               photos, voice recordings, or geolocation information. 

          1.Defines "K-12 school purposes" to mean purposes that  
            customarily take place at the direction of the school,  
            teacher, or school district or aid in the administration of  
            school activities, including, but not limited to, instruction  
            in the classroom or at home, administrative activities, and  
            collaboration between students, school personnel, or parents,  
            or are for the use and benefit of the school. 

          2.Provides that these requirements shall not be construed to  
            limit the authority of a law enforcement agency to obtain any  
            content or information from an operator as authorized by law  
            or pursuant to an order of a court of competent jurisdiction  
            or to limit the ability of an Operator to use student data for  
            adaptive learning or customized student learning purposes. 

           3. Provides that these requirements do not apply to general  
             audience Internet Web sites, general audience online  

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          7

             services, general audience online applications, or general  
             audience mobile applications, even if login credentials  
             created for an Operator's site, service or application may be  
             used to access those general audience sites, services, or  
             applications. 

           4. Provides that these requirements do not limit Internet  
             service providers from providing Internet connectivity to  
             schools or students and their families. 

           5. Clarifies that these requirements shall not be construed to  
             prohibit an Operator from marketing educational products  
             directly to parents so long as the marketing was not the  
             result of student covered information obtained by the  
             Operator through the provision of services covered under this  
             section. 

           6. Provides that this Act does not impose a duty upon a  
             provider of an electronic store, gateway, marketplace, or  
             other means of purchasing or downloading software or  
             applications to review or enforce compliance of this section  
             on those applications or software. 

           7. Provides that this Act does not impede the ability of  
             students to download, export, or otherwise save or maintain  
             their own student created data or documents. 

           8. Provides that this Act shall become operative on January 1,  
             2016, and that its provisions are severable. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  8/25/14)

          California Federation of Teachers
          California State PTA
          California Teachers Association
          Citizens for Law and Order
          Common Sense Media
          Crime Victims Action Alliance
          K-12 Inc.
          Klaas Kids Foundation
          McGraw Hill Education

                                                                CONTINUED





                                                                    SB 1177
                                                                     Page  
          8

          Privacy Rights Clearinghouse
          Services Employees International Union

           
          ASSEMBLY FLOOR  :  79-0, 8/25/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.  
            P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED: Vacancy


          PQ:nl  8/26/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****




















                                                                CONTINUED