BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 129
                                                                  Page  1

          PROPOSED CONFERENCE REPORT NO.  1   - August 28, 2000 
          SB 129 (Peace)
          As Amended  August 26, 1999
          Majority vote

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          |SENATE: |26-5 |(May 20, 1999)  |ASSEMBLY: |53-24|(September 3,  |
          |        |     |                |          |     |1999)          |
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               (vote not relevant)                (vote not relevant)
           
          SENATE CONFERENCE VOTE  :  3-0     ASSEMBLY CONFERENCE VOTE  :2-1  
           
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          |Ayes:|Peace, Johnson, Schiff   |Ayes:|Corbett, Jackson          |
          |     |                         |     |                          |
          |-----+-------------------------+-----+--------------------------|
          |     |                         |Nays:|McClintock                |
          |     |                         |     |                          |
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          Original Committee Reference:   JUD.  

           SUMMARY  :  Creates the Office of Privacy Protection (office)  
          within the Department of Consumer Affairs (DCA), the stated  
          purpose of which is to protect the privacy of individuals'  
          personal information in a manner consistent with the California  
          Constitution.  Specifically,  the conference committee  
          amendments  :

          1)Require the office, in carrying out its mission, to identify  
            consumer problems in the privacy area and facilitate  
            development of fair information practices, with regard to  
            public and private entities, consistent with the Information  
            Practices Act of 1977.

          2)Require the office to inform the public of potential options  
            for protecting the privacy of, and avoiding the misuse of  
            personal information, and to make recommendations to  
            organizations for implementation of privacy policies and  
            practices that promote and protect consumers.

          3)Require DCA, in carrying out the mission of the office, to  
            engage in the following:  

             a)   Receive complaints from individuals concerning the  








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               compilation, use or disclosure of personal information, and  
               provide advice, information, and referral to that  
               individual where appropriate;

             b)   Provide information to consumers on effective ways of  
               handling complaints that involve violations of privacy  
               related laws.  DCA shall refer those complaints to local,  
               state, or federal agencies where appropriate;

             c)   Assist and coordinate in the training of local, state,  
               and federal law enforcement agencies regarding identity  
               theft and other privacy related crimes; and,

             d)   Develop information and educational programs and  
               materials to foster public understanding of privacy issues.

          4)Authorize the office to promote voluntary, mutually agreed  
            upon, nonbinding arbitration and mediation of privacy related  
            disputes, where appropriate

          5)Provide that the provisions of this bill relating to the  
            office shall only be operative for those years in which there  
            is an appropriation from the General Fund in the Budget Act.

          6)Require DCA to report to the Legislature annually, commencing  
            January 31, 2003, regarding DCA's activities under this  
            measure.

          7)Codify budget control language adopted with this year's budget  
            requiring each state department and state agency to enact and  
            maintain a permanent privacy policy in adherence with the  
            Information Practices Act of 1977.

          8)Provides that the permanent policy shall be subject to the  
            following principles:

             a)   The purposes for which personally identifiable data are  
               collected are specified at or prior to the time of  
               collection, and any subsequent use is limited to the  
               fulfillment of those purposes;

             b)   Personal data shall not be disclosed, made available, or  
               otherwise used for purposes other than those specified by  
               the department or agency, without the consent of the  
               consumer; and,








                                                                  SB 129
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             c)   Personally identifiable information shall only be  
               obtained through lawful means.

           EXISTING LAW  :

          1)Provides in the California Constitution that, among other  
            rights, all people have an inalienable right to pursue and  
            obtain privacy.

          2)Declares, as part of the Information Practices Act of 1977,  
            that the right to privacy is a personal and fundamental right  
            protected by the California Constitution and that all  
            individuals have a right of privacy in information pertaining  
            to them. 

          3)Finds, as part of the Information Practices Act of 1977, that  
            the right to privacy is being threatened by the indiscriminate  
            collection, maintenance and dissemination of personal  
            information and the lack of effective laws and legal remedies  
            to protect against such practices. 

          4)Declares, as part of the Information Practices Act of 1977,  
            that in order to protect the privacy of individuals, it is  
            necessary that the maintenance and dissemination of personal  
            information be subject to strict limits. 

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, "present law does not  
          adequately impose restrictions on the collection and disclosure  
          of personal information by government, businesses, or  
          not-for-profit organizations."  Therefore, this conference  
          report creates an office of privacy protection to ensure that  
          private and public entities protect the privacy of personal  
          information.  The protection of personal information by private  
          and public entities shall be performed in a manner consistent  
          with the California Constitution, which states that all  
          individuals have an inalienable right to obtain and pursue  
          privacy. In carrying out its stated mission, the office shall  
          identify consumer problems in the privacy area and facilitate  
          development of fair information practices by both public and  
          private entities.  DCA is charged with the responsibility of  
          developing information and educational programs and materials to  
          foster public understanding of privacy issues, to receive  








                                                                  SB 129
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          complaints from consumers regarding an entity's compilation or  
          disclosure of personal information, to provide information to  
          consumers on how to handle complaints about violations of  
          privacy laws, and to refer complaints to law enforcement  
          agencies, where appropriate.
           
           This conference report also seeks to codify budget control  
          language adopted as part of this year's budget with regard to  
          the responsibility of state departments and state agencies to  
          maintain permanent privacy policies in adherence to the  
          Information Practice Act of 1977, to ensure that state agencies  
          protect personal information from being disclosed, made  
          available or otherwise used without the consent of the  
          individual for purposes other than that for which it was  
          initially collected.  The American Civil Liberties Union (ACLU)  
          has noted that requiring the adoption of such permanent privacy  
          policies by all state agencies and departments, the process for  
          filing complaints with the Office of Privacy Protection, and the  
          office's processing of those complaints will need to be designed  
          in a manner that ensures the personal privacy of those  
          individuals bringing the complaint.  The ACLU comments that  
          regardless of the requirement to adopt a permanent privacy  
          policy, the office would need to ensure the protection of  
          personal privacy so as not to discourage people from filing and  
          pursuing complaints.


           Analysis Prepared by  :  Donna S. Hershkowitz / JUD. / (916)  
          319-2334 


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