AB 2877: California Consumer Privacy Act of 2018: artificial intelligence: training.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-06-27
Current Status:
Failed
(2024-08-15: In committee: Held under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
The California Consumer Privacy Act of 2018 (CCPA) grants to a consumer various rights with respect to personal information, as defined, that is collected by a business, as defined, including a requirement that a business have the affirmative authorization of the consumer or the consumers parent or guardian, as provided, before selling or sharing the personal information of a consumer that the business has actual knowledge is less than 16 years of age. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. The CCPA establishes the California Privacy Protection Agency and vests it with full administrative power, authority, and jurisdiction to implement and enforce the CCPA.
This bill would would, except if certain conditions are met, prohibit a developer, as defined, from using the personal information of a consumer less than 16 years of age, as specified, to train or retrain fine-tune, as defined, an artificial intelligence system or service unless the consumer or the consumers parent or guardian, as specified, has affirmatively authorized that use of the consumers personal information. The bill would require, if affirmative authorization is given, a developer to deidentify and aggregate the personal information subject to the authorization before using the personal information to train or retrain an artificial intelligence system or service. The bill would define artificial intelligence to mean an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments and would define train to mean to expose artificial intelligence to data in order to alter the relationship between inputs and outputs.
The California Privacy Rights Act of 2020 authorizes the Legislature to amend the act to further the purposes and intent of the act by a majority vote of both houses of the Legislature, as specified.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
The California Consumer Privacy Act of 2018 (CCPA) grants to a consumer various rights with respect to personal information, as defined, that is collected by a business, as defined, including a requirement that a business have the affirmative authorization of the consumer or the consumers parent or guardian, as provided, before selling or sharing the personal information of a consumer that the business has actual knowledge is less than 16 years of age. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. The CCPA establishes the California Privacy Protection Agency and vests it with full administrative power, authority, and jurisdiction to implement and enforce the CCPA.
This bill would prohibit a developer, as defined, from using the personal information of a consumer less than 16 years of age, as specified, to train or retrain an artificial intelligence system or service unless the consumer or the consumers parent or guardian, as specified, has affirmatively authorized that use of the consumers personal information. The bill would require that, require, if affirmative authorization is given, a developer to deidentify and aggregate the personal information be deidentified and aggregated subject to the authorization before being used using the personal information to train or retrain an artificial intelligence system or service. The bill would define artificial intelligence to mean an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments, environments and would defined define train to mean exposing to expose artificial intelligence to data in order to alter the relationship between inputs and outputs.
The California Privacy Rights Act of 2020 authorizes the Legislature to amend the act to further the purposes and intent of the act by a majority vote of both houses of the Legislature, as specified.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
The California Consumer Privacy Act of 2018 (CCPA) grants to a consumer various rights with respect to personal information, as defined, that is collected by a business, as defined, including a requirement that a business inform consumers if the business collects sensitive personal information, as defined. have the affirmative authorization of the consumer or the consumers parent or guardian, as provided, before selling or sharing the personal information of a consumer that the business has actual knowledge is less than 16 years of age. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. The CCPA establishes the California Privacy Protection Agency and vests it with full administrative power, authority, and jurisdiction to implement and enforce the CCPA.
This bill would prohibit a developer, as defined, from using the sensitive personal information of a natural person under 18 years of age to train an artificial intelligence system or service, and would require the agency to enforce those provisions. personal information of a consumer less than 16 years of age, as specified, to train an artificial intelligence system or service unless the consumer or the consumers parent or guardian, as specified, has affirmatively authorized that use of the consumers personal information. The bill would require that, if affirmative authorization is given, the personal information be deidentified and aggregated before being used to train an artificial intelligence system or service. The bill would define artificial intelligence to mean an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments. environments, and would defined train to mean exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
The California Privacy Rights Act of 2020 authorizes the Legislature to amend the act to further the purposes and intent of the act by a majority vote of both houses of the Legislature, as specified.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
The California Consumer Privacy Act of 2018 (CCPA) grants to a consumer various rights with respect to personal information, as defined, that is collected by a business, as defined, including the right to request a requirement that a business delete personal information about the consumer that the business has collected from the consumer. inform consumers if the business collects sensitive personal information, as defined. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. The CCPA establishes the California Privacy Protection Agency and vests it with full administrative power, authority, and jurisdiction to implement and enforce the CCPA. The CCPA requires the agency to be governed by a 5-member board appointed, as specified, from among Californians with expertise in the areas of privacy, technology, and consumer rights. The CCPA requires members of the board to have qualifications, experience, and skills, in particular in the areas of privacy and technology, required to perform the duties of the agency and exercise its powers.
This bill would require members of the board to additionally have qualifications, experience, and skills in consumer rights. prohibit a developer, as defined, from using the sensitive personal information of a natural person under 18 years of age to train an artificial intelligence system or service, and would require the agency to enforce those provisions. The bill would define artificial intelligence to mean an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments.
The California Privacy Rights Act of 2020 authorizes the Legislature to amend the act to further the purposes and intent of the act by a majority vote of both houses of the Legislature, as specified.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
The California Consumer Privacy Act of 2018 (CCPA) grants to a consumer various rights with respect to personal information, as defined, that is collected by a business, as defined, including the right to request that a business delete personal information about the consumer that the business has collected from the consumer. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. The CCPA establishes the California Privacy Protection Agency and vests it with full administrative power, authority, and jurisdiction to implement and enforce the CCPA. The CCPA requires the agency to be governed by a 5-member board appointed, as specified, from among Californians with expertise in the areas of privacy, technology, and consumer rights. The CCPA requires members of the board to have qualifications, experience, and skills, in particular in the areas of privacy and technology, required to perform the duties of the agency and exercise its powers.
This bill would require members of the board to additionally have qualifications, experience, and skills in consumer rights.
The California Privacy Rights Act of 2020 authorizes the Legislature to amend the act to further the purposes and intent of the act by a majority vote of both houses of the Legislature, as specified.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
(a)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except as specified in subdivision (c).
(b)For purposes of this section:
(1)Business has the same meaning as defined in Section 1798.140.
(2)Collect has the same meaning as defined in Section 1798.140.
(3)Family planning center means a business categorized as a family planning center by the North American Industry Classification System adopted by the United States Census Bureau, including, but not limited to, a clinic or center that provides reproductive health care services as defined in Section 1798.300.
(4)Personal information has the same meaning as defined in Section 1798.140, except as applied to all persons and not limited to consumers and households, as those terms are defined in that section.
(5)Precise geolocation means a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet as derived from a device that is used or intended to be used to locate a person.
(6)Sell has the same meaning as defined in Section 1798.140.
(7)Share has the same meaning as defined in Section 1798.140.
(c)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except only as necessary to perform the services or provide the goods requested by the person. A person or business shall not sell or share this personal information.
(d)(1)An aggrieved person or entity, including a family planning center, may institute and prosecute a civil action against any person or business who violates this section for injunctive and monetary relief and attorneys fees within three years of discovery of the violation.
(2)If the court finds for the petitioner in an action authorized by paragraph (1), recovery shall be in the amount of three times the amount of actual damages and any other expenses, costs, or reasonable attorneys fees incurred in connection with the litigation.
(e)This section does not apply to a provider of health care, a health care service plan, or contractor, as those terms are defined in Section 56.05.
SEC. 2.Section 1798.121 of the Civil Code is amended to read:1798.121.Consumers Right to Limit Use and Disclosure of Sensitive Personal Information
(a)A consumer shall have the right, at any time, to direct a business that collects sensitive personal information about the consumer to limit its use of the consumers sensitive personal information to that use which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services, to perform the services set forth in paragraphs (2), (4), (5), and (8) of subdivision (f) of Section 1798.140, and as authorized by regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185. A business that uses or discloses a consumers sensitive personal information for purposes other than those specified in this subdivision shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be used, or disclosed to a service provider or contractor, for additional, specified purposes and that consumers have the right to limit the use or disclosure of their sensitive personal information.
(b)A business that has received direction from a consumer not to use or disclose the consumers sensitive personal information, except as authorized by subdivision (a), shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from using or disclosing the consumers sensitive personal information for any other purpose after its receipt of the consumers direction unless the consumer subsequently provides consent for the use or disclosure of the consumers sensitive personal information for additional purposes.
(c)A service provider or contractor that assists a business in performing the purposes authorized by subdivision (a) may not use the sensitive personal information after it has received instructions from the business and to the extent it has actual knowledge that the personal information is sensitive personal information for any other purpose. A service provider or contractor is only required to limit its use of sensitive personal information received pursuant to a written contract with the business in response to instructions from the business and only with respect to its relationship with that business.
(d)Sensitive personal information that is collected or processed without the purpose of inferring characteristics about a consumer is not subject to this section, as further defined in regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185, and shall be treated as personal information for purposes of all other sections of this act, including Section 1798.100.
SEC. 3.Section 1798.130 of the Civil Code is amended to read:1798.130.Notice, Disclosure, Correction, and Deletion Requirements
(a)In order to comply with Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125, a business shall, in a form that is reasonably accessible to consumers:
(1)(A)Make available to consumers two or more designated methods for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively, including, at a minimum, a toll-free telephone number. A business that operates exclusively online and has a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or for requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(B)If the business maintains an internet website, make the internet website available to consumers to submit requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(2)(A)Disclose and deliver the required information to a consumer free of charge, correct inaccurate personal information, or delete a consumers personal information, based on the consumers request, within 45 days of receiving a verifiable consumer request from the consumer. The business shall promptly take steps to determine whether the request is a verifiable consumer request, but this shall not extend the businesss duty to disclose and deliver the information, to correct inaccurate personal information, or to delete personal information within 45 days of receipt of the consumers request. The time period to provide the required information, to correct inaccurate personal information, or to delete personal information may be extended once by an additional 45 days when reasonably necessary, provided the consumer is provided notice of the extension within the first 45-day period. The disclosure of the required information shall be made in writing and delivered through the consumers account with the business, if the consumer maintains an account with the business, or by mail or electronically at the consumers option if the consumer does not maintain an account with the business, in a readily useable format that allows the consumer to transmit this information from one entity to another entity without hindrance. The business may require authentication of the consumer that is reasonable in light of the nature of the personal information requested, but shall not require the consumer to create an account with the business in order to make a verifiable consumer request provided that if the consumer, has an account with the business, the business may require the consumer to use that account to submit a verifiable consumer request.
(B)The disclosure of the required information shall cover the 12-month period preceding the business receipt of the verifiable consumer request provided that, upon the adoption of a regulation pursuant to paragraph (9) of subdivision (a) of Section 1798.185, a consumer may request that the business disclose the required information beyond the 12-month period, and the business shall be required to provide that information unless doing so proves impossible or would involve a disproportionate effort. A consumers right to request required information beyond the 12-month period, and a businesss obligation to provide that information, shall only apply to personal information collected on or after January 1, 2022. Nothing in this subparagraph shall require a business to keep personal information for any length of time.
(3)(A)A business that receives a verifiable consumer request pursuant to Section 1798.110 or 1798.115 shall disclose any personal information it has collected about a consumer, directly or indirectly, including through or by a service provider or contractor, to the consumer. A service provider or contractor shall not be required to comply with a verifiable consumer request received directly from a consumer or a consumers authorized agent, pursuant to Section 1798.110 or 1798.115, to the extent that the service provider or contractor has collected personal information about the consumer in its role as a service provider or contractor. A service provider or contractor shall provide assistance to a business with which it has a contractual relationship with respect to the business response to a verifiable consumer request, including, but not limited to, by providing to the business the consumers personal information in the service providers or contractors possession, which the service provider or contractor obtained as a result of providing services to the business, and by correcting inaccurate information or by enabling the business to do the same. A service provider or contractor that collects personal information pursuant to a written contract with a business shall be required to assist the business through appropriate technical and organizational measures in complying with the requirements of subdivisions (d) to (f), inclusive, of Section 1798.100, taking into account the nature of the processing.
(B)For purposes of subdivision (b) of Section 1798.110:
(i)To identify the consumer, associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(ii)Identify by category or categories the personal information collected about the consumer for the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information collected; the categories of sources from which the consumers personal information was collected; the business or commercial purpose for collecting, selling, or sharing the consumers personal information; and the categories of third parties to whom the business discloses the consumers personal information.
(iii)Provide the specific pieces of personal information obtained from the consumer in a format that is easily understandable to the average consumer, and to the extent technically feasible, in a structured, commonly used, machine-readable format that may also be transmitted to another entity at the consumers request without hindrance. Specific pieces of information do not include data generated to help ensure security and integrity or as prescribed by regulation. Personal information is not considered to have been disclosed by a business when a consumer instructs a business to transfer the consumers personal information from one business to another in the context of switching services.
(4)For purposes of subdivision (b) of Section 1798.115:
(A)Identify the consumer and associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(B)Identify by category or categories the personal information of the consumer that the business sold or shared during the applicable period of time by reference to the enumerated category in subdivision (c) that most closely describes the personal information, and provide the categories of third parties to whom the consumers personal information was sold or shared during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information sold or shared. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (C).
(C)Identify by category or categories the personal information of the consumer that the business disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information, and provide the categories of persons to whom the consumers personal information was disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information disclosed. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (B).
(5)Disclose the following information in its online privacy policy or policies if the business has an online privacy policy or policies and in any California-specific description of consumers privacy rights, or if the business does not maintain those policies, on its internet website, and update that information at least once every 12 months:
(A)A description of a consumers rights pursuant to Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125 and two or more designated methods for submitting requests, except as provided in subparagraph (A) of paragraph (1) of subdivision (a).
(B)For purposes of subdivision (c) of Section 1798.110:
(i)A list of the categories of personal information it has collected about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information collected.
(ii)The categories of sources from which consumers personal information is collected.
(iii)The business or commercial purpose for collecting, selling, or sharing consumers personal information.
(iv)The categories of third parties to whom the business discloses consumers personal information.
(C)For purposes of paragraphs (1) and (2) of subdivision (c) of Section 1798.115, two separate lists:
(i)A list of the categories of personal information it has sold or shared about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information sold or shared, or if the business has not sold or shared consumers personal information in the preceding 12 months, the business shall prominently disclose that fact in its privacy policy.
(ii)A list of the categories of personal information it has disclosed about consumers for a business purpose in the preceding 12 months by reference to the enumerated category in subdivision (c) that most closely describes the personal information disclosed, or if the business has not disclosed consumers personal information for a business purpose in the preceding 12 months, the business shall disclose that fact.
(6)Ensure that all individuals responsible for handling consumer inquiries about the business privacy practices or the business compliance with this title are informed of all requirements in Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.125, and this section, and how to direct consumers to exercise their rights under those sections.
(7)Use any personal information collected from the consumer in connection with the business verification of the consumers request solely for the purposes of verification and shall not further disclose the personal information, retain it longer than necessary for purposes of verification, or use it for unrelated purposes.
(b)A business is not obligated to provide the information required by Sections 1798.110 and 1798.115 to the same consumer more than twice in a 12-month period.
(c)The categories of personal information required to be disclosed pursuant to Sections 1798.100, 1798.110, and 1798.115 shall follow the definitions of personal information and sensitive personal information in Section 1798.140 by describing the categories of personal information using the specific terms set forth in subparagraphs (A) to (K), inclusive, of paragraph (1) of subdivision (x) (y) of Section 1798.140 and by describing the categories of sensitive personal information using the specific terms set forth in paragraphs (1) to (9), inclusive, of subdivision (ah) (ai) of Section 1798.140.
SEC. 4.Section 1798.140 of the Civil Code is amended to read:1798.140.Definitions
For purposes of this title:
(a)Advertising and marketing means a communication by a business or a person acting on the business behalf in any medium intended to induce a consumer to obtain goods, services, or employment.
(b)Aggregate consumer information means information that relates to a group or category of consumers, from which individual consumer identities have been removed, that is not linked or reasonably linkable to any consumer or household, including via a device. Aggregate consumer information does not mean one or more individual consumer records that have been deidentified.
(c)Artificial intelligence means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
(d)Biometric information means an individuals physiological, biological, or behavioral characteristics, including information pertaining to an individuals deoxyribonucleic acid (DNA), that is used or is intended to be used singly or in combination with each other or with other identifying data, to establish individual identity. Biometric information includes, but is not limited to, imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, and voice recordings, from which an identifier template, such as a faceprint, a minutiae template, or a voiceprint, can be extracted, and keystroke patterns or rhythms, gait patterns or rhythms, and sleep, health, or exercise data that contain identifying information.
(e)Business means:
(1)A sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that is organized or operated for the profit or financial benefit of its shareholders or other owners, that collects consumers personal information, or on the behalf of which such information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers personal information, that does business in the state, and that satisfies one or more of the following thresholds:
(A)As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.
(B)Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.
(C)Derives 50 percent or more of its annual revenues from selling or sharing consumers personal information.
(2)Any entity that controls or is controlled by a business, as defined in paragraph (1), and that shares common branding with the business and with whom the business shares consumers personal information. Control or controlled means ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company. Common branding means a shared name, servicemark, service mark, or trademark that the average consumer would understand that two or more entities are commonly owned.
(3)A joint venture or partnership composed of businesses in which each business has at least a 40 percent interest. For purposes of this title, the joint venture or partnership and each business that composes the joint venture or partnership shall separately be considered a single business, except that personal information in the possession of each business and disclosed to the joint venture or partnership shall not be shared with the other business.
(4)A person that does business in California, that is not covered by paragraph (1), (2), or (3), and that voluntarily certifies to the California Privacy Protection Agency that it is in compliance with, and agrees to be bound by, this title.
(f)Business purpose means the use of personal information for the business operational purposes, or other notified purposes, or for the service providers or contractors operational purposes, as defined by regulations adopted pursuant to paragraph (11) of subdivision (a) of Section 1798.185, provided that the use of personal information shall be reasonably necessary and proportionate to achieve the purpose for which the personal information was collected or processed or for another purpose that is compatible with the context in which the personal information was collected. Business purposes are:
(1)Auditing related to counting ad impressions to unique visitors, verifying positioning and quality of ad impressions, and auditing compliance with this specification and other standards.
(2)Helping to ensure security and integrity to the extent the use of the consumers personal information is reasonably necessary and proportionate for these purposes.
(3)Debugging to identify and repair errors that impair existing intended functionality.
(4)Short-term, transient use, including, but not limited to, nonpersonalized advertising shown as part of a consumers current interaction with the business, provided that the consumers personal information is not disclosed to another third party and is not used to build a profile about the consumer or otherwise alter the consumers experience outside the current interaction with the business.
(5)Performing services on behalf of the business, including maintaining or servicing accounts, providing customer service, processing or fulfilling orders and transactions, verifying customer information, processing payments, providing financing, providing analytic services, providing storage, or providing similar services on behalf of the business.
(6)Providing advertising and marketing services, except for cross-context behavioral advertising, to the consumer provided that, for the purpose of advertising and marketing, a service provider or contractor shall not combine the personal information of opted-out consumers that the service provider or contractor receives from, or on behalf of, the business with personal information that the service provider or contractor receives from, or on behalf of, another person or persons or collects from its own interaction with consumers.
(7)Undertaking internal research for technological development and demonstration.
(8)Undertaking activities to verify or maintain the quality or safety of a service or device that is owned, manufactured, manufactured for, or controlled by the business, and to improve, upgrade, or enhance the service or device that is owned, manufactured, manufactured for, or controlled by the business.
(g)Collects, collected, or collection means buying, renting, gathering, obtaining, receiving, or accessing any personal information pertaining to a consumer by any means. This includes receiving information from the consumer, either actively or passively, or by observing the consumers behavior.
(h)Commercial purposes means to advance a persons commercial or economic interests, such as by inducing another person to buy, rent, lease, join, subscribe to, provide, or exchange products, goods, property, information, or services, or enabling or effecting, directly or indirectly, a commercial transaction.
(i)Consent means any freely given, specific, informed, and unambiguous indication of the consumers wishes by which the consumer, or the consumers legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement to the processing of personal information relating to the consumer for a narrowly defined particular purpose. Acceptance of a general or broad terms of use, or similar document, that contains descriptions of personal information processing along with other, unrelated information, does not constitute consent. Hovering over, muting, pausing, or closing a given piece of content does not constitute consent. Likewise, agreement obtained through use of dark patterns does not constitute consent.
(j)Consumer means a natural person who is a California resident, as defined in Section 17014 of Title 18 of the California Code of Regulations, as that section read on September 1, 2017, however identified, including by any unique identifier.
(k)(1)Contractor means a person to whom the business makes available a consumers personal information for a business purpose, pursuant to a written contract with the business, provided that the contract:
(A)Prohibits the contractor from:
(i)Selling or sharing the personal information.
(ii)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract, or as otherwise permitted by this title.
(iii)Retaining, using, or disclosing the information outside of the direct business relationship between the contractor and the business.
(iv)Combining the personal information that the contractor receives pursuant to a written contract with the business with personal information that it receives from or on behalf of another person or persons, or collects from its own interaction with the consumer, provided that the contractor may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (f) and in regulations adopted by the California Privacy Protection Agency.
(B)Includes a certification made by the contractor that the contractor understands the restrictions in subparagraph (A) and will comply with them.
(C)Permits, subject to agreement with the contractor, the business to monitor the contractors compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a contractor engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the contractor engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(l)Cross-context behavioral advertising means the targeting of advertising to a consumer based on the consumers personal information obtained from the consumers activity across businesses, distinctly-branded websites, applications, or services, other than the business, distinctly-branded website, application, or service with which the consumer intentionally interacts.
(m)Dark pattern means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decisionmaking, or choice, as further defined by regulation.
(n)Deidentified means information that cannot reasonably be used to infer information about, or otherwise be linked to, a particular consumer provided that the business that possesses the information:
(1)Takes reasonable measures to ensure that the information cannot be associated with a consumer or household.
(2)Publicly commits to maintain and use the information in deidentified form and not to attempt to reidentify the information, except that the business may attempt to reidentify the information solely for the purpose of determining whether its deidentification processes satisfy the requirements of this subdivision.
(3)Contractually obligates any recipients of the information to comply with all provisions of this subdivision.
(o)Designated methods for submitting requests means a mailing address, email address, internet web page, internet web portal, toll-free telephone number, or other applicable contact information, whereby consumers may submit a request or direction under this title, and any new, consumer-friendly means of contacting a business, as approved by the Attorney General pursuant to Section 1798.185.
(p)Developer means a qualified business that designs, codes, or otherwise produces an artificial intelligence system or service, or substantially modifies an existing artificial intelligence system or service, by training or retraining fine-tuning the artificial intelligence system or service on personal information.
(q)Device means any physical object that is capable of connecting to the internet, directly or indirectly, or to another device.
(r)Fine-tune means to expose a trained artificial intelligence system or service to additional data in order to further adjust the relationship between inputs and outputs.
(r)(s)Homepage means the introductory page of an internet website and any internet web page where personal information is collected. In the case of an online service, such as a mobile application, homepage means the applications platform page or download page, a link within the application, such as from the application configuration, About, Information, or settings page, and any other location that allows consumers to review the notices required by this title, including, but not limited to, before downloading the application.
(s)(t)Household means a group, however identified, of consumers who cohabitate with one another at the same residential address and share use of common devices or services.
(t)(u)Infer or inference means the derivation of information, data, assumptions, or conclusions from facts, evidence, or another source of information or data.
(u)(v)Intentionally interacts means when the consumer intends to interact with a person, or disclose personal information to a person, via one or more deliberate interactions, including visiting the persons website or purchasing a good or service from the person. Hovering over, muting, pausing, or closing a given piece of content does not constitute a consumers intent to interact with a person.
(v)(w)Nonpersonalized advertising means advertising and marketing that is based solely on a consumers personal information derived from the consumers current interaction with the business with the exception of the consumers precise geolocation.
(w)(x)Person means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.
(x)(y)(1)Personal information means information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Personal information includes, but is not limited to, the following if it identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular consumer or household:
(A)Identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, drivers license number, passport number, or other similar identifiers.
(B)Any personal information described in subdivision (e) of Section 1798.80.
(C)Characteristics of protected classifications under California or federal law.
(D)Commercial information, including records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies.
(E)Biometric information.
(F)Internet or other electronic network activity information, including, but not limited to, browsing history, search history, and information regarding a consumers interaction with an internet website application, or advertisement.
(G)Geolocation data.
(H)Audio, electronic, visual, thermal, olfactory, or similar information.
(I)Professional or employment-related information.
(J)Education information, defined as information that is not publicly available personally identifiable information as defined in the Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g; 34 C.F.R. Part 99).
(K)Inferences drawn from any of the information identified in this subdivision to create a profile about a consumer reflecting the consumers preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.
(L)Sensitive personal information.
(2)Personal information does not include publicly available information or lawfully obtained, truthful information that is a matter of public concern. For purposes of this paragraph, publicly available means: information that is lawfully made available from federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public by the consumer or from widely distributed media; or information made available by a person to whom the consumer has disclosed the information if the consumer has not restricted the information to a specific audience. Publicly available does not mean biometric information collected by a business about a consumer without the consumers knowledge.
(3)Personal information does not include consumer information that is deidentified or aggregate consumer information.
(y)(z)Precise geolocation means any data that is derived from a device and that is used or intended to be used to locate a consumer within a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet, except as prescribed by regulations.
(z)(aa)Probabilistic identifier means the identification of a consumer or a consumers device to a degree of certainty of more probable than not based on any categories of personal information included in, or similar to, the categories enumerated in the definition of personal information.
(aa)(ab)Processing means any operation or set of operations that are performed on personal information or on sets of personal information, whether or not by automated means.
(ab)(ac)Profiling means any form of automated processing of personal information, as further defined by regulations pursuant to paragraph (16) of subdivision (a) of Section 1798.185, to evaluate certain personal aspects relating to a natural person and in particular to analyze or predict aspects concerning that natural persons performance at work, economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.
(ac)(ad)Pseudonymize orpseudonymization means the processing of personal information in a manner that renders the personal information no longer attributable to a specific consumer without the use of additional information, provided that the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal information is not attributed to an identified or identifiable consumer.
(ad)(ae)Qualified business means a sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that collects consumers personal information, or on the behalf of which that information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers personal information, that does business in the state, and that satisfies one or more of the following thresholds:
(1)As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.
(2)Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.
(3)Derives 50 percent or more of its annual revenues from selling or sharing consumers personal information.
(4)Provides a system or service for use in schools.
(ae)(af)Research means scientific analysis, systematic study, and observation, including basic research or applied research that is designed to develop or contribute to public or scientific knowledge and that adheres or otherwise conforms to all other applicable ethics and privacy laws, including, but not limited to, studies conducted in the public interest in the area of public health. Research with personal information that may have been collected from a consumer in the course of the consumers interactions with a business service or device for other purposes shall be:
(1)Compatible with the business purpose for which the personal information was collected.
(2)Subsequently pseudonymized and deidentified, or deidentified and in the aggregate, such that the information cannot reasonably identify, relate to, describe, be capable of being associated with, or be linked, directly or indirectly, to a particular consumer, by a business.
(3)Made subject to technical safeguards that prohibit reidentification of the consumer to whom the information may pertain, other than as needed to support the research.
(4)Subject to business processes that specifically prohibit reidentification of the information, other than as needed to support the research.
(5)Made subject to business processes to prevent inadvertent release of deidentified information.
(6)Protected from any reidentification attempts.
(7)Used solely for research purposes that are compatible with the context in which the personal information was collected.
(8)Subjected by the business conducting the research to additional security controls that limit access to the research data to only those individuals as are necessary to carry out the research purpose.
(af)(ag)Security and integrity means the ability of:
(1)Networks or information systems to detect security incidents that compromise the availability, authenticity, integrity, and confidentiality of stored or transmitted personal information.
(2)Businesses to detect security incidents, resist malicious, deceptive, fraudulent, or illegal actions and to help prosecute those responsible for those actions.
(3)Businesses to ensure the physical safety of natural persons.
(ag)(ah)(1)Sell, selling, sale, or sold, means selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for monetary or other valuable consideration.
(2)For purposes of this title, a business does not sell personal information when:
(A)A consumer uses or directs the business to intentionally:
(i)Disclose personal information.
(ii)Interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(ah)(ai)Sensitive personal information means:
(1)Personal information that reveals:
(A)A consumers social security, drivers license, state identification card, or passport number.
(B)A consumers account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.
(C)A consumers precise geolocation.
(D)A consumers racial or ethnic origin, citizenship or immigration status, religious or philosophical beliefs, or union membership.
(E)The contents of a consumers mail, email, and text messages unless the business is the intended recipient of the communication.
(F)A consumers genetic data.
(2)(A)The processing of biometric information for the purpose of uniquely identifying a consumer.
(B)Personal information collected and analyzed concerning a consumers health.
(C)Personal information collected and analyzed concerning a consumers sex life or sexual orientation.
(3)Sensitive personal information that is publicly available pursuant to paragraph (2) of subdivision (x) (y) shall not be considered sensitive personal information or personal information.
(ai)(aj)Service or services means work, labor, and services, including services furnished in connection with the sale or repair of goods.
(aj)(ak)(1)Service provider means a person that processes personal information on behalf of a business and that receives from or on behalf of the business consumers personal information for a business purpose pursuant to a written contract, provided that the contract prohibits the person from:
(A)Selling or sharing the personal information.
(B)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract for the business, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract with the business, or as otherwise permitted by this title.
(C)Retaining, using, or disclosing the information outside of the direct business relationship between the service provider and the business.
(D)Combining the personal information that the service provider receives from, or on behalf of, the business with personal information that it receives from, or on behalf of, another person or persons, or collects from its own interaction with the consumer, provided that the service provider may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (f) of this section and in regulations adopted by the California Privacy Protection Agency. The contract may, subject to agreement with the service provider, permit the business to monitor the service providers compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a service provider engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the service provider engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(ak)(al)(1)Share, shared, or sharing means sharing, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for cross-context behavioral advertising, whether or not for monetary or other valuable consideration, including transactions between a business and a third party for cross-context behavioral advertising for the benefit of a business in which no money is exchanged.
(2)For purposes of this title, a business does not share personal information when:
(A)A consumer uses or directs the business to intentionally disclose personal information or intentionally interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(al)(am)Third party means a person who is not any of the following:
(1)The business with whom the consumer intentionally interacts and that collects personal information from the consumer as part of the consumers current interaction with the business under this title.
(2)A service provider to the business.
(3)A contractor.
(am)(an)Train means to expose an artificial intelligence system or service to data in order to alter the relationship between inputs and outputs.
(an)(ao)Unique identifier or unique personal identifier means a persistent identifier that can be used to recognize a consumer, a family, or a device that is linked to a consumer or family, over time and across different services, including, but not limited to, a device identifier; an Internet Protocol address; cookies, beacons, pixel tags, mobile ad identifiers, or similar technology; customer number, unique pseudonym, or user alias; telephone numbers, or other forms of persistent or probabilistic identifiers that can be used to identify a particular consumer or device that is linked to a consumer or family. For purposes of this subdivision, family means a custodial parent or guardian and any children under 18 years of age over which the parent or guardian has custody.
(ao)(ap)Verifiable consumer request means a request that is made by a consumer, by a consumer on behalf of the consumers minor child, by a natural person or a person registered with the Secretary of State, authorized by the consumer to act on the consumers behalf, or by a person who has power of attorney or is acting as a conservator for the consumer, and that the business can verify, using commercially reasonable methods, pursuant to regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185 to be the consumer about whom the business has collected personal information. A business is not obligated to provide information to the consumer pursuant to Sections 1798.110 and 1798.115, to delete personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, if the business cannot verify, pursuant to this subdivision and regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185, that the consumer making the request is the consumer about whom the business has collected information or is a person authorized by the consumer to act on such consumers behalf.
SEC. 5.Section 1798.145 of the Civil Code is amended to read:1798.145.Exemptions
(a)(1)The obligations imposed on businesses by this title shall not restrict a businesss ability to:
(A)Comply with federal, state, or local laws or comply with a court order or subpoena to provide information.
(B)Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, or local authorities. Law enforcement agencies, including police and sheriffs departments, may direct a business pursuant to a law enforcement agency-approved investigation with an active case number not to delete a consumers personal information, and, upon receipt of that direction, a business shall not delete the personal information for 90 days in order to allow the law enforcement agency to obtain a court-issued subpoena, order, or warrant to obtain a consumers personal information. For good cause and only to the extent necessary for investigatory purposes, a law enforcement agency may direct a business not to delete the consumers personal information for additional 90-day periods. A business that has received direction from a law enforcement agency not to delete the personal information of a consumer who has requested deletion of the consumers personal information shall not use the consumers personal information for any purpose other than retaining it to produce to law enforcement in response to a court-issued subpoena, order, or warrant unless the consumers deletion request is subject to an exemption from deletion under this title.
(C)Cooperate with law enforcement agencies concerning conduct or activity that the business, service provider, or third party reasonably and in good faith believes may violate federal, state, or local law.
(D)(i)Cooperate with a government agency request for emergency access to a consumers personal information if a natural person is at risk or danger of death or serious physical injury provided that:
(I)The request is approved by a high-ranking agency officer for emergency access to a consumers personal information.
(II)The request is based on the agencys good faith determination that it has a lawful basis to access the information on a nonemergency basis.
(III)The agency agrees to petition a court for an appropriate order within three days and to destroy the information if that order is not granted.
(ii)For purposes of this subparagraph, a consumer accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services, shall not constitute a natural person being at risk or danger of death or serious physical injury.
(E)Exercise or defend legal claims.
(F)Collect, use, retain, sell, share, or disclose consumers personal information that is deidentified or aggregate consumer information.
(G)Collect, sell, or share a consumers personal information if every aspect of that commercial conduct takes place wholly outside of California. For purposes of this title, commercial conduct takes place wholly outside of California if the business collected that information while the consumer was outside of California, no part of the sale of the consumers personal information occurred in California, and no personal information collected while the consumer was in California is sold. This paragraph shall not prohibit a business from storing, including on a device, personal information about a consumer when the consumer is in California and then collecting that personal information when the consumer and stored personal information is outside of California.
(2)(A)This subdivision shall not apply if the consumers personal information contains information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services.
(B)This paragraph does not alter the use of aggregated or deidentified personal information consistent with a business purpose as defined in paragraphs (1), (2), (3), (4), (5), (7), or (8) of subdivision (f) of Section 1798.140, provided that the personal information is only retained in aggregated and deidentified form and is not sold or shared.
(C)This paragraph does not alter the duty of a business to preserve or retain evidence pursuant to California or federal law in an ongoing civil proceeding.
(b)The obligations imposed on businesses by Sections 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, and 1798.135 shall not apply where compliance by the business with the title would violate an evidentiary privilege under California law and shall not prevent a business from providing the personal information of a consumer to a person covered by an evidentiary privilege under California law as part of a privileged communication.
(c)(1)This title shall not apply to any of the following:
(A)Medical information governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or protected health information that is collected by a covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the Health Information Technology for Economic and Clinical Health Act (Public Law 111-5).
(B)A provider of health care governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or a covered entity governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191), to the extent the provider or covered entity maintains patient information in the same manner as medical information or protected health information as described in subparagraph (A) of this section.
(C)Personal information collected as part of a clinical trial or other biomedical research study subject to, or conducted in accordance with, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule, pursuant to good clinical practice guidelines issued by the International Council for Harmonisation or pursuant to human subject protection requirements of the United States Food and Drug Administration, provided that the information is not sold or shared in a manner not permitted by this subparagraph, and, if it is inconsistent, that participants be informed of that use and provide consent.
(2)For purposes of this subdivision, the definitions of medical information and provider of health care in Section 56.05 shall apply and the definitions of business associate, covered entity, and protected health information in Section 160.103 of Title 45 of the Code of Federal Regulations shall apply.
(d)(1)This title shall not apply to an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumers creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in subdivision (f) of Section 1681a of Title 15 of the United States Code, by a furnisher of information, as set forth in Section 1681s-2 of Title 15 of the United States Code, who provides information for use in a consumer report, as defined in subdivision (d) of Section 1681a of Title 15 of the United States Code, and by a user of a consumer report as set forth in Section 1681b of Title 15 of the United States Code.
(2)Paragraph (1) shall apply only to the extent that such activity involving the collection, maintenance, disclosure, sale, communication, or use of such information by that agency, furnisher, or user is subject to regulation under the Fair Credit Reporting Act, Section 1681 et seq., Title 15 of the United States Code and the information is not collected, maintained, used, communicated, disclosed, or sold except as authorized by the Fair Credit Reporting Act.
(3)This subdivision shall not apply to Section 1798.150.
(e)This title shall not apply to personal information collected, processed, sold, or disclosed subject to the federal Gramm-Leach-Bliley Act (Public Law 106-102), and implementing regulations, or the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050) of the Financial Code), or the federal Farm Credit Act of 1971 (as amended in 12 U.S.C. 2001-2279cc and implementing regulations, 12 C.F.R. 600, et seq.). This subdivision shall not apply to Section 1798.150.
(f)This title shall not apply to personal information collected, processed, sold, or disclosed pursuant to the Drivers Privacy Protection Act of 1994 (18 U.S.C. Sec. 2721 et seq.). This subdivision shall not apply to Section 1798.150.
(g)(1)Section 1798.120 shall not apply to vehicle information or ownership information retained or shared between a new motor vehicle dealer, as defined in Section 426 of the Vehicle Code, and the vehicles manufacturer, as defined in Section 672 of the Vehicle Code, if the vehicle information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vehicle repair covered by a vehicle warranty or a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code, provided that the new motor vehicle dealer or vehicle manufacturer with which that vehicle information or ownership information is shared does not sell, share, or use that information for any other purpose.
(2)Section 1798.120 shall not apply to vessel information or ownership information retained or shared between a vessel dealer and the vessels manufacturer, as defined in Section 651 of the Harbors and Navigation Code, if the vessel information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vessel repair covered by a vessel warranty or a recall conducted pursuant to Section 4310 of Title 46 of the United States Code, provided that the vessel dealer or vessel manufacturer with which that vessel information or ownership information is shared does not sell, share, or use that information for any other purpose.
(3)For purposes of this subdivision:
(A)Ownership information means the name or names of the registered owner or owners and the contact information for the owner or owners.
(B)Vehicle information means the vehicle information number, make, model, year, and odometer reading.
(C)Vessel dealer means a person who is engaged, wholly or in part, in the business of selling or offering for sale, buying or taking in trade for the purpose of resale, or exchanging, any vessel or vessels, as defined in Section 651 of the Harbors and Navigation Code, and receives or expects to receive money, profit, or any other thing of value.
(D)Vessel information means the hull identification number, model, year, month and year of production, and information describing any of the following equipment as shipped, transferred, or sold from the place of manufacture, including all attached parts and accessories:
(i)An inboard engine.
(ii)An outboard engine.
(iii)A stern drive unit.
(iv)An inflatable personal floatation device approved under Section 160.076 of Title 46 of the Code of Federal Regulations.
(h)Notwithstanding a businesss obligations to respond to and honor consumer rights requests pursuant to this title:
(1)A time period for a business to respond to a consumer for any verifiable consumer request may be extended by up to a total of 90 days where necessary, taking into account the complexity and number of the requests. The business shall inform the consumer of any such extension within 45 days of receipt of the request, together with the reasons for the delay.
(2)If the business does not take action on the request of the consumer, the business shall inform the consumer, without delay and at the latest within the time period permitted of response by this section, of the reasons for not taking action and any rights the consumer may have to appeal the decision to the business.
(3)If requests from a consumer are manifestly unfounded or excessive, in particular because of their repetitive character, a business may either charge a reasonable fee, taking into account the administrative costs of providing the information or communication or taking the action requested, or refuse to act on the request and notify the consumer of the reason for refusing the request. The business shall bear the burden of demonstrating that any verifiable consumer request is manifestly unfounded or excessive.
(i)(1)A business that discloses personal information to a service provider or contractor in compliance with this title shall not be liable under this title if the service provider or contractor receiving the personal information uses it in violation of the restrictions set forth in the title, provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the service provider or contractor intends to commit such a violation. A service provider or contractor shall likewise not be liable under this title for the obligations of a business for which it provides services as set forth in this title provided that the service provider or contractor shall be liable for its own violations of this title.
(2)A business that discloses personal information of a consumer, with the exception of consumers who have exercised their right to opt out of the sale or sharing of their personal information, consumers who have limited the use or disclosure of their sensitive personal information, and minor consumers who have not opted in to the collection or sale of their personal information, to a third party pursuant to a written contract that requires the third party to provide the same level of protection of the consumers rights under this title as provided by the business shall not be liable under this title if the third party receiving the personal information uses it in violation of the restrictions set forth in this title provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the third party intends to commit such a violation.
(j)This title shall not be construed to require a business, service provider, or contractor to:
(1)Reidentify or otherwise link information that, in the ordinary course of business, is not maintained in a manner that would be considered personal information.
(2)Retain any personal information about a consumer if, in the ordinary course of business, that information about the consumer would not be retained.
(3)Maintain information in identifiable, linkable, or associable form, or collect, obtain, retain, or access any data or technology, in order to be capable of linking or associating a verifiable consumer request with personal information.
(k)The rights afforded to consumers and the obligations imposed on the business in this title shall not adversely affect the rights and freedoms of other natural persons. A verifiable consumer request for specific pieces of personal information pursuant to Section 1798.110, to delete a consumers personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, shall not extend to personal information about the consumer that belongs to, or the business maintains on behalf of, another natural person. A business may rely on representations made in a verifiable consumer request as to rights with respect to personal information and is under no legal requirement to seek out other persons that may have or claim to have rights to personal information, and a business is under no legal obligation under this title or any other provision of law to take any action under this title in the event of a dispute between or among persons claiming rights to personal information in the businesss possession.
(l)The rights afforded to consumers and the obligations imposed on any business under this title shall not apply to the extent that they infringe on the noncommercial activities of a person or entity described in subdivision (b) of Section 2 of Article I of the California Constitution.
(m)(1)This title shall not apply to any of the following:
(A)Personal information that is collected by a business about a natural person in the course of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the natural persons personal information is collected and used by the business solely within the context of the natural persons role or former role as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or an independent contractor of, that business.
(B)Personal information that is collected by a business that is emergency contact information of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of having an emergency contact on file.
(C)Personal information that is necessary for the business to retain to administer benefits for another natural person relating to the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of administering those benefits.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Medical staff member means a licensed physician and surgeon, dentist, or podiatrist, licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code and a clinical psychologist as defined in Section 1316.5 of the Health and Safety Code.
(D)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(E)Owner means a natural person who meets one of the following criteria:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall not apply to subdivision (a) of Section 1798.100 or Section 1798.150.
(4)This subdivision shall become inoperative on January 1, 2023.
(n)(1)The obligations imposed on businesses by Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.121, 1798.130, and 1798.135 shall not apply to personal information reflecting a written or verbal communication or a transaction between the business and the consumer, where the consumer is a natural person who acted or is acting as an employee, owner, director, officer, or independent contractor of a company, partnership, sole proprietorship, nonprofit, or government agency and whose communications or transaction with the business occur solely within the context of the business conducting due diligence regarding, or providing or receiving a product or service to or from such company, partnership, sole proprietorship, nonprofit, or government agency.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as such or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, such as a chief executive officer, president, secretary, or treasurer.
(D)Owner means a natural person who meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall become inoperative on January 1, 2023.
(o)(1)Sections 1798.105 and 1798.120 shall not apply to a commercial credit reporting agencys collection, processing, sale, or disclosure of business controller information to the extent the commercial credit reporting agency uses the business controller information solely to identify the relationship of a consumer to a business that the consumer owns or contact the consumer only in the consumers role as the owner, director, officer, or management employee of the business.
(2)For the purposes of this subdivision:
(A)Business controller information means the name or names of the owner or owners, director, officer, or management employee of a business and the contact information, including a business title, for the owner or owners, director, officer, or management employee.
(B)Commercial credit reporting agency has the meaning set forth in subdivision (b) of Section 1785.42.
(C)Owner means a natural person that meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(D)Director means a natural person designated in the articles of incorporation of a business as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(E)Officer means a natural person elected or appointed by the board of directors of a business to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(F)Management employee means a natural person whose name and contact information is reported to or collected by a commercial credit reporting agency as the primary manager of a business and used solely within the context of the natural persons role as the primary manager of the business.
(p)The obligations imposed on businesses in Sections 1798.105, 1798.106, 1798.110, and 1798.115 shall not apply to household data.
(q)(1)This title does not require a business to comply with a verifiable consumer request to delete a consumers personal information under Section 1798.105 to the extent the verifiable consumer request applies to a students grades, educational scores, or educational test results that the business holds on behalf of a local educational agency, as defined in subdivision (d) of Section 49073.1 of the Education Code, at which the student is currently enrolled. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(2)This title does not require, in response to a request pursuant to Section 1798.110, that a business disclose on educational standardized assessment or educational assessment or a consumers specific responses to the educational standardized assessment or educational assessment if consumer access, possession, or control would jeopardize the validity and reliability of that educational standardized assessment or educational assessment. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(3)For purposes of this subdivision:
(A)Educational standardized assessment or educational assessment means a standardized or nonstandardized quiz, test, or other assessment used to evaluate students in or for entry to kindergarten and grades 1 to 12, inclusive, schools, postsecondary institutions, vocational programs, and postgraduate programs that are accredited by an accrediting agency or organization recognized by the State of California or the United States Department of Education, as well as certification and licensure examinations used to determine competency and eligibility to receive certification or licensure from a government agency or government certification body.
(B)Jeopardize the validity and reliability of that educational standardized assessment or educational assessment means releasing information that would provide an advantage to the consumer who has submitted a verifiable consumer request or to another natural person.
(r)Sections 1798.105 and 1798.120 shall not apply to a businesss use, disclosure, or sale of particular pieces of a consumers personal information if the consumer has consented to the businesss use, disclosure, or sale of that information to produce a physical item, including a school yearbook containing the consumers photograph if:
(1)The business has incurred significant expense in reliance on the consumers consent.
(2)Compliance with the consumers request to opt out of the sale of the consumers personal information or to delete the consumers personal information would not be commercially reasonable.
(3)The business complies with the consumers request as soon as it is commercially reasonable to do so.
SEC. 6.Section 1798.185 of the Civil Code is amended to read:1798.185.Regulations
(a)On or before July 1, 2020, the Attorney General shall solicit broad public participation and adopt regulations to further the purposes of this title, including, but not limited to, the following areas:
(1)Updating or adding categories of personal information to those enumerated in subdivision (c) of Section 1798.130 and subdivision (x) (y) of Section 1798.140, and updating or adding categories of sensitive personal information to those enumerated in subdivision (ag) (ai) of Section 1798.140 in order to address changes in technology, data collection practices, obstacles to implementation, and privacy concerns.
(2)Updating as needed the definitions of deidentified and unique identifier to address changes in technology, data collection, obstacles to implementation, and privacy concerns, and adding, modifying, or deleting categories to the definition of designated methods for submitting requests to facilitate a consumers ability to obtain information from a business pursuant to Section 1798.130. The authority to update the definition of deidentified shall not apply to deidentification standards set forth in Section 164.514 of Title 45 of the Code of Federal Regulations, where such information previously was protected health information as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.
(3)Establishing any exceptions necessary to comply with state or federal law, including, but not limited to, those relating to trade secrets and intellectual property rights, within one year of passage of this title and as needed thereafter, with the intention that trade secrets should not be disclosed in response to a verifiable consumer request.
(4)Establishing rules and procedures for the following:
(A)To facilitate and govern the submission of a request by a consumer to opt out of the sale or sharing of personal information pursuant to Section 1798.120 and to limit the use of a consumers sensitive personal information pursuant to Section 1798.121 to ensure that consumers have the ability to exercise their choices without undue burden and to prevent business from engaging in deceptive or harassing conduct, including in retaliation against consumers for exercising their rights, while allowing businesses to inform consumers of the consequences of their decision to opt out of the sale or sharing of their personal information or to limit the use of their sensitive personal information.
(B)To govern business compliance with a consumers opt-out request.
(C)For the development and use of a recognizable and uniform opt-out logo or button by all businesses to promote consumer awareness of the opportunity to opt out of the sale of personal information.
(5)Adjusting the monetary thresholds, in January of every odd-numbered year to reflect any increase in the Consumer Price Index, in: subparagraph (A) of paragraph (1) of subdivision (e) of Section 1798.140; subparagraph (A) of paragraph (1) of subdivision (a) of Section 1798.150; subdivision (a) of Section 1798.155; Section 1798.199.25; and subdivision (a) of Section 1798.199.90.
(6)Establishing rules, procedures, and any exceptions necessary to ensure that the notices and information that businesses are required to provide pursuant to this title are provided in a manner that may be easily understood by the average consumer, are accessible to consumers with disabilities, and are available in the language primarily used to interact with the consumer, including establishing rules and guidelines regarding financial incentives within one year of passage of this title and as needed thereafter.
(7)Establishing rules and procedures to further the purposes of Sections 1798.105, 1798.106, 1798.110, and 1798.115 and to facilitate a consumers or the consumers authorized agents ability to delete personal information, correct inaccurate personal information pursuant to Section 1798.106, or obtain information pursuant to Section 1798.130, with the goal of minimizing the administrative burden on consumers, taking into account available technology, security concerns, and the burden on the business, to govern a businesss determination that a request for information received from a consumer is a verifiable consumer request, including treating a request submitted through a password-protected account maintained by the consumer with the business while the consumer is logged into the account as a verifiable consumer request and providing a mechanism for a consumer who does not maintain an account with the business to request information through the businesss authentication of the consumers identity, within one year of passage of this title and as needed thereafter.
(8)Establishing how often, and under what circumstances, a consumer may request a correction pursuant to Section 1798.106, including standards governing the following:
(A)How a business responds to a request for correction, including exceptions for requests to which a response is impossible or would involve disproportionate effort, and requests for correction of accurate information.
(B)How concerns regarding the accuracy of the information may be resolved.
(C)The steps a business may take to prevent fraud.
(D)If a business rejects a request to correct personal information collected and analyzed concerning a consumers health, the right of a consumer to provide a written addendum to the business with respect to any item or statement regarding any such personal information that the consumer believes to be incomplete or incorrect. The addendum shall be limited to 250 words per alleged incomplete or incorrect item and shall clearly indicate in writing that the consumer requests the addendum to be made a part of the consumers record.
(9)Establishing the standard to govern a businesss determination, pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 1798.130, that providing information beyond the 12-month period in a response to a verifiable consumer request is impossible or would involve a disproportionate effort.
(10)Issuing regulations further defining and adding to the business purposes, including other notified purposes, for which businesses, service providers, and contractors may use consumers personal information consistent with consumers expectations, and further defining the business purposes for which service providers and contractors may combine consumers personal information obtained from different sources, except as provided for in paragraph (6) of subdivision (f) of Section 1798.140.
(11)Issuing regulations identifying those business purposes, including other notified purposes, for which service providers and contractors may use consumers personal information received pursuant to a written contract with a business, for the service providers or contractors own business purposes, with the goal of maximizing consumer privacy.
(12)Issuing regulations to further define intentionally interacts, with the goal of maximizing consumer privacy.
(13)Issuing regulations to further define precise geolocation, including if the size defined is not sufficient to protect consumer privacy in sparsely populated areas or when the personal information is used for normal operational purposes, including billing.
(14)Issuing regulations to define the term specific pieces of information obtained from the consumer with the goal of maximizing a consumers right to access relevant personal information while minimizing the delivery of information to a consumer that would not be useful to the consumer, including system log information and other technical data. For delivery of the most sensitive personal information, the regulations may require a higher standard of authentication provided that the agency shall monitor the impact of the higher standard on the right of consumers to obtain their personal information to ensure that the requirements of verification do not result in the unreasonable denial of verifiable consumer requests.
(15)Issuing regulations requiring businesses whose processing of consumers personal information presents significant risk to consumers privacy or security, to:
(A)Perform a cybersecurity audit on an annual basis, including defining the scope of the audit and establishing a process to ensure that audits are thorough and independent. The factors to be considered in determining when processing may result in significant risk to the security of personal information shall include the size and complexity of the business and the nature and scope of processing activities.
(B)Submit to the California Privacy Protection Agency on a regular basis a risk assessment with respect to their processing of personal information, including whether the processing involves sensitive personal information, and identifying and weighing the benefits resulting from the processing to the business, the consumer, other stakeholders, and the public, against the potential risks to the rights of the consumer associated with that processing, with the goal of restricting or prohibiting the processing if the risks to privacy of the consumer outweigh the benefits resulting from processing to the consumer, the business, other stakeholders, and the public. Nothing in this section shall require a business to divulge trade secrets.
(16)Issuing regulations governing access and opt-out rights with respect to businesses use of automated decisionmaking technology, including profiling and requiring businesses response to access requests to include meaningful information about the logic involved in those decisionmaking processes, as well as a description of the likely outcome of the process with respect to the consumer.
(17)Issuing regulations to further define a law enforcement agency-approved investigation for purposes of the exception in subparagraph (B) of paragraph (1) of subdivision (a) of Section 1798.145.
(18)Issuing regulations to define the scope and process for the exercise of the agencys audit authority, to establish criteria for selection of persons to audit, and to protect consumers personal information from disclosure to an auditor in the absence of a court order, warrant, or subpoena.
(19)(A)Issuing regulations to define the requirements and technical specifications for an opt-out preference signal sent by a platform, technology, or mechanism, to indicate a consumers intent to opt out of the sale or sharing of the consumers personal information and to limit the use or disclosure of the consumers sensitive personal information. The requirements and specifications for the opt-out preference signal should be updated from time to time to reflect the means by which consumers interact with businesses, and should:
(i)Ensure that the manufacturer of a platform or browser or device that sends the opt-out preference signal cannot unfairly disadvantage another business.
(ii)Ensure that the opt-out preference signal is consumer-friendly, clearly described, and easy to use by an average consumer and does not require that the consumer provide additional information beyond what is necessary.
(iii)Clearly represent a consumers intent and be free of defaults constraining or presupposing that intent.
(iv)Ensure that the opt-out preference signal does not conflict with other commonly used privacy settings or tools that consumers may employ.
(v)Provide a mechanism for the consumer to selectively consent to a businesss sale of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, without affecting the consumers preferences with respect to other businesses or disabling the opt-out preference signal globally.
(vi)State that in the case of a page or setting view that the consumer accesses to set the opt-out preference signal, the consumer should see up to three choices, including:
(I)Global opt out from sale and sharing of personal information, including a direction to limit the use of sensitive personal information.
(II)Choice to Limit the Use of My Sensitive Personal Information.
(III)Choice titled Do Not Sell/Do Not Share My Personal Information for Cross-Context Behavioral Advertising.
(B)Issuing regulations to establish technical specifications for an opt-out preference signal that allows the consumer, or the consumers parent or guardian, to specify that the consumer is less than 13 years of age or at least 13 years of age and less than 16 years of age.
(C)Issuing regulations, with the goal of strengthening consumer privacy while considering the legitimate operational interests of businesses, to govern the use or disclosure of a consumers sensitive personal information, notwithstanding the consumers direction to limit the use or disclosure of the consumers sensitive personal information, including:
(i)Determining any additional purposes for which a business may use or disclose a consumers sensitive personal information.
(ii)Determining the scope of activities permitted under paragraph (8) of subdivision (f) of Section 1798.140, as authorized by subdivision (a) of Section 1798.121, to ensure that the activities do not involve health-related research.
(iii)Ensuring the functionality of the businesss operations.
(iv)Ensuring that the exemption in subdivision (d) of Section 1798.121 for sensitive personal information applies to information that is collected or processed incidentally, or without the purpose of inferring characteristics about a consumer, while ensuring that businesses do not use the exemption for the purpose of evading consumers rights to limit the use and disclosure of their sensitive personal information under Section 1798.121.
(20)Issuing regulations to govern how a business that has elected to comply with subdivision (b) of Section 1798.135 responds to the opt-out preference signal and provides consumers with the opportunity subsequently to consent to the sale or sharing of their personal information or the use and disclosure of their sensitive personal information for purposes in addition to those authorized by subdivision (a) of Section 1798.121. The regulations should:
(A)Strive to promote competition and consumer choice and be technology neutral.
(B)Ensure that the business does not respond to an opt-out preference signal by:
(i)Intentionally degrading the functionality of the consumer experience.
(ii)Charging the consumer a fee in response to the consumers opt-out preferences.
(iii)Making any products or services not function properly or fully for the consumer, as compared to consumers who do not use the opt-out preference signal.
(iv)Attempting to coerce the consumer to opt in to the sale or sharing of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, by stating or implying that the use of the opt-out preference signal will adversely affect the consumer as compared to consumers who do not use the opt-out preference signal, including stating or implying that the consumer will not be able to use the businesss products or services or that those products or services may not function properly or fully.
(v)Displaying any notification or pop-up in response to the consumers opt-out preference signal.
(C)Ensure that any link to a web page or its supporting content that allows the consumer to consent to opt in:
(i)Is not part of a popup, notice, banner, or other intrusive design that obscures any part of the web page the consumer intended to visit from full view or that interferes with or impedes in any way the consumers experience visiting or browsing the web page or website the consumer intended to visit.
(ii)Does not require or imply that the consumer must click the link to receive full functionality of any products or services, including the website.
(iii)Does not make use of any dark patterns.
(iv)Applies only to the business with which the consumer intends to interact.
(D)Strive to curb coercive or deceptive practices in response to an opt-out preference signal but should not unduly restrict businesses that are trying in good faith to comply with Section 1798.135.
(21)Review existing Insurance Code provisions and regulations relating to consumer privacy, except those relating to insurance rates or pricing, to determine whether any provisions of the Insurance Code provide greater protection to consumers than the provisions of this title. Upon completing its review, the agency shall adopt a regulation that applies only the more protective provisions of this title to insurance companies. For the purpose of clarity, the Insurance Commissioner shall have jurisdiction over insurance rates and pricing.
(22)Harmonizing the regulations governing opt-out mechanisms, notices to consumers, and other operational mechanisms in this title to promote clarity and the functionality of this title for consumers.
(b)The Attorney General may adopt additional regulations as necessary to further the purposes of this title.
(c)The Attorney General shall not bring an enforcement action under this title until six months after the publication of the final regulations issued pursuant to this section or July 1, 2020, whichever is sooner.
(d)Notwithstanding subdivision (a), the timeline for adopting final regulations required by the act adding this subdivision shall be July 1, 2022. Beginning the later of July 1, 2021, or six months after the agency provides notice to the Attorney General that it is prepared to begin rulemaking under this title, the authority assigned to the Attorney General to adopt regulations under this section shall be exercised by the California Privacy Protection Agency. Notwithstanding any other law, civil and administrative enforcement of the provisions of law added or amended by this act shall not commence until July 1, 2023, and shall only apply to violations occurring on or after that date. Enforcement of provisions of law contained in the California Consumer Privacy Act of 2018 amended by this act shall remain in effect and shall be enforceable until the same provisions of this act become enforceable.
SEC. 7.Section 1798.199.40 of the Civil Code is amended to read:1798.199.40.The agency shall perform the following functions:
(a)Administer, implement, and enforce through administrative actions this title.
(b)On and after the later of July 1, 2021, or within six months of the agency providing the Attorney General with notice that it is prepared to assume rulemaking responsibilities under this title, adopt, amend, and rescind regulations pursuant to Section 1798.185 to carry out the purposes and provisions of the California Consumer Privacy Act of 2018, including regulations specifying recordkeeping requirements for businesses to ensure compliance with this title.
(c)Through the implementation of this title, protect the fundamental privacy rights of natural persons with respect to the use of their personal information.
(d)Promote public awareness and understanding of the risks, rules, responsibilities, safeguards, and rights in relation to the collection, use, sale, and disclosure of personal information, including the rights of minors with respect to their own information, and provide a public report summarizing the risk assessments filed with the agency pursuant to paragraph (15) of subdivision (a) of Section 1798.185 while ensuring that data security is not compromised.
(e)Provide guidance to consumers regarding their rights under this title.
(f)Provide guidance to businesses regarding their duties and responsibilities under this title and appoint a Chief Privacy Auditor to conduct audits of businesses to ensure compliance with this title pursuant to regulations adopted pursuant to paragraph (18) of subdivision (a) of Section 1798.185.
(g)Provide technical assistance and advice to the Legislature, upon request, with respect to privacy-related legislation.
(h)Monitor relevant developments relating to the protection of personal information and, in particular, the development of information and communication technologies and commercial practices.
(i)Cooperate with other agencies with jurisdiction over privacy laws and with data processing authorities in California, other states, territories, and countries to ensure consistent application of privacy protections.
(j)Establish a mechanism pursuant to which persons doing business in California that do not meet the definition of business set forth in paragraph (1), (2), or (3) of subdivision (e) of Section 1798.140 may voluntarily certify that they are in compliance with this title, as set forth in paragraph (4) of subdivision (e) of Section 1798.140, and make a list of those entities available to the public.
(k)Solicit, review, and approve applications for grants to the extent funds are available pursuant to paragraph (2) of subdivision (b) of Section 1798.160.
(l)Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction and seek to balance the goals of strengthening consumer privacy while giving attention to the impact on businesses.
SEC. 8.Section 1798.199.41 is added to the Civil Code, to read:1798.199.41.(a)A Except as provided in subdivision (c), a developer shall not use the personal information of a consumer described by subdivision (c) of Section 1798.120 to train or retrain fine-tune an artificial intelligence system or service unless the consumer or the consumers parent or guardian has affirmatively authorized, in the same manner as described in subdivision (c) of Section 1798.120, that use of the consumers personal information.
(b)If affirmative authorization is given pursuant to this section, a developer shall deidentify and aggregate the personal information subject to the authorization before using the personal information to train or retrain fine-tune an artificial intelligence system or service.
(c)A developer shall not be required to obtain affirmative authorization pursuant to subdivision (a) if both of the following conditions are met:
(1)Training or fine-tuning an artificial intelligence system or service using the consumers personal information is necessary to protect the consumer from imminent threats to their physical health or safety.
(2)The developer deidentifies and aggregates the personal information of the consumer prior to training or fine-tuning an artificial intelligence system or service.
SEC. 9.The Legislature finds and declares that this act furthers the purposes and intent of The California Privacy Rights Act of 2020.
(a)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except as specified in subdivision (c).
(b)For purposes of this section, the following definitions apply: section:
(1)Business means has the same meaning as defined in subdivision (e) of Section 1798.140.
(2)Collect means has the same meaning as defined in subdivision (g) of Section 1798.140.
(3)Family planning center means a business categorized as a family planning center by the North American Industry Classification System adopted by the United States Census Bureau, including, but not limited to, a clinic or center that provides reproductive health care services as defined in Section 1798.300 of the Civil Code. 1798.300.
(4)Personal information has the same definition as that term is meaning as defined in subdivision (x) of Section 1798.140, except as applied to all persons and not limited to consumers and households, as those terms are defined in subdivisions (j) and (s), respectively, of that section.
(5)Precise geolocation means a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet as derived from a device that is used or intended to be used to locate a person.
(6)Sell means has the same meaning as defined in subdivision (af) of Section 1798.140.
(7)Share means has the same meaning as defined in subdivision (aj) of Section 1798.140.
(c)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except only as necessary to perform the services or provide the goods requested by the person. A person or business shall not sell or share this personal information.
(d)(1)An aggrieved person or entity, including a family planning center, may institute and prosecute a civil action against any person or business who violates this section for injunctive and monetary relief and attorneys fees within three years of discovery of the violation.
(2)If the court finds for the petitioner in an action authorized by paragraph (1), recovery shall be in the amount of three times the amount of actual damages and any other expenses, costs, or reasonable attorneys fees incurred in connection with the litigation.
(e)This section does not apply to a provider of health care, a health care service plan, or contractor, as those terms are defined in Section 56.05.
SEC. 2.Section 1798.121 of the Civil Code is amended to read:1798.121.Consumers Right to Limit Use and Disclosure of Sensitive Personal Information
(a)A consumer shall have the right, at any time, to direct a business that collects sensitive personal information about the consumer to limit its use of the consumers sensitive personal information to that use which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services, to perform the services set forth in paragraphs (2), (4), (5), and (8) of subdivision (f) of Section 1798.140, and as authorized by regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185. A business that uses or discloses a consumers sensitive personal information for purposes other than those specified in this subdivision shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be used, or disclosed to a service provider or contractor, for additional, specified purposes and that consumers have the right to limit the use or disclosure of their sensitive personal information.
(b)A business that has received direction from a consumer not to use or disclose the consumers sensitive personal information, except as authorized by subdivision (a), shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from using or disclosing the consumers sensitive personal information for any other purpose after its receipt of the consumers direction unless the consumer subsequently provides consent for the use or disclosure of the consumers sensitive personal information for additional purposes.
(c)A service provider or contractor that assists a business in performing the purposes authorized by subdivision (a) may not use the sensitive personal information after it has received instructions from the business and to the extent it has actual knowledge that the personal information is sensitive personal information for any other purpose. A service provider or contractor is only required to limit its use of sensitive personal information received pursuant to a written contract with the business in response to instructions from the business and only with respect to its relationship with that business.
(d)Sensitive personal information that is collected or processed without the purpose of inferring characteristics about a consumer is not subject to this section, as further defined in regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185, and shall be treated as personal information for purposes of all other sections of this act, including Section 1798.100.
SEC. 3.Section 1798.130 of the Civil Code is amended to read:1798.130.Notice, Disclosure, Correction, and Deletion Requirements
(a)In order to comply with Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125, a business shall, in a form that is reasonably accessible to consumers:
(1)(A)Make available to consumers two or more designated methods for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively, including, at a minimum, a toll-free telephone number. A business that operates exclusively online and has a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or for requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(B)If the business maintains an internet website, make the internet website available to consumers to submit requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(2)(A)Disclose and deliver the required information to a consumer free of charge, correct inaccurate personal information, or delete a consumers personal information, based on the consumers request, within 45 days of receiving a verifiable consumer request from the consumer. The business shall promptly take steps to determine whether the request is a verifiable consumer request, but this shall not extend the businesss duty to disclose and deliver the information, to correct inaccurate personal information, or to delete personal information within 45 days of receipt of the consumers request. The time period to provide the required information, to correct inaccurate personal information, or to delete personal information may be extended once by an additional 45 days when reasonably necessary, provided the consumer is provided notice of the extension within the first 45-day period. The disclosure of the required information shall be made in writing and delivered through the consumers account with the business, if the consumer maintains an account with the business, or by mail or electronically at the consumers option if the consumer does not maintain an account with the business, in a readily useable format that allows the consumer to transmit this information from one entity to another entity without hindrance. The business may require authentication of the consumer that is reasonable in light of the nature of the personal information requested, but shall not require the consumer to create an account with the business in order to make a verifiable consumer request provided that if the consumer, has an account with the business, the business may require the consumer to use that account to submit a verifiable consumer request.
(B)The disclosure of the required information shall cover the 12-month period preceding the business receipt of the verifiable consumer request provided that, upon the adoption of a regulation pursuant to paragraph (9) of subdivision (a) of Section 1798.185, a consumer may request that the business disclose the required information beyond the 12-month period, and the business shall be required to provide that information unless doing so proves impossible or would involve a disproportionate effort. A consumers right to request required information beyond the 12-month period, and a businesss obligation to provide that information, shall only apply to personal information collected on or after January 1, 2022. Nothing in this subparagraph shall require a business to keep personal information for any length of time.
(3)(A)A business that receives a verifiable consumer request pursuant to Section 1798.110 or 1798.115 shall disclose any personal information it has collected about a consumer, directly or indirectly, including through or by a service provider or contractor, to the consumer. A service provider or contractor shall not be required to comply with a verifiable consumer request received directly from a consumer or a consumers authorized agent, pursuant to Section 1798.110 or 1798.115, to the extent that the service provider or contractor has collected personal information about the consumer in its role as a service provider or contractor. A service provider or contractor shall provide assistance to a business with which it has a contractual relationship with respect to the business response to a verifiable consumer request, including, but not limited to, by providing to the business the consumers personal information in the service provider providers or contractors possession, which the service provider or contractor obtained as a result of providing services to the business, and by correcting inaccurate information or by enabling the business to do the same. A service provider or contractor that collects personal information pursuant to a written contract with a business shall be required to assist the business through appropriate technical and organizational measures in complying with the requirements of subdivisions (d) to (f), inclusive, of Section 1798.100, taking into account the nature of the processing.
(B)For purposes of subdivision (b) of Section 1798.110:
(i)To identify the consumer, associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(ii)Identify by category or categories the personal information collected about the consumer for the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information collected; the categories of sources from which the consumers personal information was collected; the business or commercial purpose for collecting, selling, or sharing the consumers personal information; and the categories of third parties to whom the business discloses the consumers personal information.
(iii)Provide the specific pieces of personal information obtained from the consumer in a format that is easily understandable to the average consumer, and to the extent technically feasible, in a structured, commonly used, machine-readable format that may also be transmitted to another entity at the consumers request without hindrance. Specific pieces of information do not include data generated to help ensure security and integrity or as prescribed by regulation. Personal information is not considered to have been disclosed by a business when a consumer instructs a business to transfer the consumers personal information from one business to another in the context of switching services.
(4)For purposes of subdivision (b) of Section 1798.115:
(A)Identify the consumer and associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(B)Identify by category or categories the personal information of the consumer that the business sold or shared during the applicable period of time by reference to the enumerated category in subdivision (c) that most closely describes the personal information, and provide the categories of third parties to whom the consumers personal information was sold or shared during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information sold or shared. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (C).
(C)Identify by category or categories the personal information of the consumer that the business disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information, and provide the categories of persons to whom the consumers personal information was disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information disclosed. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (B).
(5)Disclose the following information in its online privacy policy or policies if the business has an online privacy policy or policies and in any California-specific description of consumers privacy rights, or if the business does not maintain those policies, on its internet website, and update that information at least once every 12 months:
(A)A description of a consumers rights pursuant to Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125 and two or more designated methods for submitting requests, except as provided in subparagraph (A) of paragraph (1) of subdivision (a).
(B)For purposes of subdivision (c) of Section 1798.110:
(i)A list of the categories of personal information it has collected about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information collected.
(ii)The categories of sources from which consumers personal information is collected.
(iii)The business or commercial purpose for collecting, selling, or sharing consumers personal information.
(iv)The categories of third parties to whom the business discloses consumers personal information.
(C)For purposes of paragraphs (1) and (2) of subdivision (c) of Section 1798.115, two separate lists:
(i)A list of the categories of personal information it has sold or shared about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information sold or shared, or if the business has not sold or shared consumers personal information in the preceding 12 months, the business shall prominently disclose that fact in its privacy policy.
(ii)A list of the categories of personal information it has disclosed about consumers for a business purpose in the preceding 12 months by reference to the enumerated category in subdivision (c) that most closely describes the personal information disclosed, or if the business has not disclosed consumers personal information for a business purpose in the preceding 12 months, the business shall disclose that fact.
(6)Ensure that all individuals responsible for handling consumer inquiries about the business privacy practices or the business compliance with this title are informed of all requirements in Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.125, and this section, and how to direct consumers to exercise their rights under those sections.
(7)Use any personal information collected from the consumer in connection with the business verification of the consumers request solely for the purposes of verification and shall not further disclose the personal information, retain it longer than necessary for purposes of verification, or use it for unrelated purposes.
(b)A business is not obligated to provide the information required by Sections 1798.110 and 1798.115 to the same consumer more than twice in a 12-month period.
(c)The categories of personal information required to be disclosed pursuant to Sections 1798.100, 1798.110, and 1798.115 shall follow the definitions of personal information and sensitive personal information in Section 1798.140 by describing the categories of personal information using the specific terms set forth in subparagraphs (A) to (K), inclusive, of paragraph (1) of subdivision (x) of Section 1798.140 and by describing the categories of sensitive personal information using the specific terms set forth in paragraphs (1) to (9), inclusive, of subdivision (ag) (ah) of Section 1798.140.
SEC. 4.Section 1798.140 of the Civil Code is amended to read:1798.140.Definitions
For purposes of this title:
(a)Advertising and marketing means a communication by a business or a person acting on the business behalf in any medium intended to induce a consumer to obtain goods, services, or employment.
(b)Aggregate consumer information means information that relates to a group or category of consumers, from which individual consumer identities have been removed, that is not linked or reasonably linkable to any consumer or household, including via a device. Aggregate consumer information does not mean one or more individual consumer records that have been deidentified.
(c)Artificial intelligence means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
(d)Biometric information means an individuals physiological, biological, or behavioral characteristics, including information pertaining to an individuals deoxyribonucleic acid (DNA), that is used or is intended to be used singly or in combination with each other or with other identifying data, to establish individual identity. Biometric information includes, but is not limited to, imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, and voice recordings, from which an identifier template, such as a faceprint, a minutiae template, or a voiceprint, can be extracted, and keystroke patterns or rhythms, gait patterns or rhythms, and sleep, health, or exercise data that contain identifying information.
(e)Business means:
(1)A sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that is organized or operated for the profit or financial benefit of its shareholders or other owners, that collects consumers personal information, or on the behalf of which such information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers personal information, that does business in the State of California, state, and that satisfies one or more of the following thresholds:
(A)As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.
(B)Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.
(C)Derives 50 percent or more of its annual revenues from selling or sharing consumers personal information.
(2)Any entity that controls or is controlled by a business, as defined in paragraph (1), and that shares common branding with the business and with whom the business shares consumers personal information. Control or controlled means ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company. Common branding means a shared name, servicemark, or trademark that the average consumer would understand that two or more entities are commonly owned.
(3)A joint venture or partnership composed of businesses in which each business has at least a 40 percent interest. For purposes of this title, the joint venture or partnership and each business that composes the joint venture or partnership shall separately be considered a single business, except that personal information in the possession of each business and disclosed to the joint venture or partnership shall not be shared with the other business.
(4)A person that does business in California, that is not covered by paragraph (1), (2), or (3), and that voluntarily certifies to the California Privacy Protection Agency that it is in compliance with, and agrees to be bound by, this title.
(f)Business purpose means the use of personal information for the business operational purposes, or other notified purposes, or for the service provider providers or contractors operational purposes, as defined by regulations adopted pursuant to paragraph (11) of subdivision (a) of Section 1798.185, provided that the use of personal information shall be reasonably necessary and proportionate to achieve the purpose for which the personal information was collected or processed or for another purpose that is compatible with the context in which the personal information was collected. Business purposes are:
(1)Auditing related to counting ad impressions to unique visitors, verifying positioning and quality of ad impressions, and auditing compliance with this specification and other standards.
(2)Helping to ensure security and integrity to the extent the use of the consumers personal information is reasonably necessary and proportionate for these purposes.
(3)Debugging to identify and repair errors that impair existing intended functionality.
(4)Short-term, transient use, including, but not limited to, nonpersonalized advertising shown as part of a consumers current interaction with the business, provided that the consumers personal information is not disclosed to another third party and is not used to build a profile about the consumer or otherwise alter the consumers experience outside the current interaction with the business.
(5)Performing services on behalf of the business, including maintaining or servicing accounts, providing customer service, processing or fulfilling orders and transactions, verifying customer information, processing payments, providing financing, providing analytic services, providing storage, or providing similar services on behalf of the business.
(6)Providing advertising and marketing services, except for cross-context behavioral advertising, to the consumer provided that, for the purpose of advertising and marketing, a service provider or contractor shall not combine the personal information of opted-out consumers that the service provider or contractor receives from, or on behalf of, the business with personal information that the service provider or contractor receives from, or on behalf of, another person or persons or collects from its own interaction with consumers.
(7)Undertaking internal research for technological development and demonstration.
(8)Undertaking activities to verify or maintain the quality or safety of a service or device that is owned, manufactured, manufactured for, or controlled by the business, and to improve, upgrade, or enhance the service or device that is owned, manufactured, manufactured for, or controlled by the business.
(g)Collects, collected, or collection means buying, renting, gathering, obtaining, receiving, or accessing any personal information pertaining to a consumer by any means. This includes receiving information from the consumer, either actively or passively, or by observing the consumers behavior.
(h)Commercial purposes means to advance a persons commercial or economic interests, such as by inducing another person to buy, rent, lease, join, subscribe to, provide, or exchange products, goods, property, information, or services, or enabling or effecting, directly or indirectly, a commercial transaction.
(i)Consent means any freely given, specific, informed, and unambiguous indication of the consumers wishes by which the consumer, or the consumers legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement to the processing of personal information relating to the consumer for a narrowly defined particular purpose. Acceptance of a general or broad terms of use, or similar document, that contains descriptions of personal information processing along with other, unrelated information, does not constitute consent. Hovering over, muting, pausing, or closing a given piece of content does not constitute consent. Likewise, agreement obtained through use of dark patterns does not constitute consent.
(j)Consumer means a natural person who is a California resident, as defined in Section 17014 of Title 18 of the California Code of Regulations, as that section read on September 1, 2017, however identified, including by any unique identifier.
(k)(1)Contractor means a person to whom the business makes available a consumers personal information for a business purpose, pursuant to a written contract with the business, provided that the contract:
(A)Prohibits the contractor from:
(i)Selling or sharing the personal information.
(ii)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract, or as otherwise permitted by this title.
(iii)Retaining, using, or disclosing the information outside of the direct business relationship between the contractor and the business.
(iv)Combining the personal information that the contractor receives pursuant to a written contract with the business with personal information that it receives from or on behalf of another person or persons, or collects from its own interaction with the consumer, provided that the contractor may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (f) and in regulations adopted by the California Privacy Protection Agency.
(B)Includes a certification made by the contractor that the contractor understands the restrictions in subparagraph (A) and will comply with them.
(C)Permits, subject to agreement with the contractor, the business to monitor the contractors compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a contractor engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the contractor engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(l)Cross-context behavioral advertising means the targeting of advertising to a consumer based on the consumers personal information obtained from the consumers activity across businesses, distinctly-branded websites, applications, or services, other than the business, distinctly-branded website, application, or service with which the consumer intentionally interacts.
(m)Dark pattern means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decisionmaking, or choice, as further defined by regulation.
(n)Deidentified means information that cannot reasonably be used to infer information about, or otherwise be linked to, a particular consumer provided that the business that possesses the information:
(1)Takes reasonable measures to ensure that the information cannot be associated with a consumer or household.
(2)Publicly commits to maintain and use the information in deidentified form and not to attempt to reidentify the information, except that the business may attempt to reidentify the information solely for the purpose of determining whether its deidentification processes satisfy the requirements of this subdivision.
(3)Contractually obligates any recipients of the information to comply with all provisions of this subdivision.
(o)Designated methods for submitting requests means a mailing address, email address, internet web page, internet web portal, toll-free telephone number, or other applicable contact information, whereby consumers may submit a request or direction under this title, and any new, consumer-friendly means of contacting a business, as approved by the Attorney General pursuant to Section 1798.185.
(p)Developer means a covered qualified business that designs, codes, or otherwise produces an automated decision tool, artificial intelligence system or service, or substantially modifies an existing artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party. service, by training or retraining the artificial intelligence system or service on personal information.
(q)Device means any physical object that is capable of connecting to the Internet, internet, directly or indirectly, or to another device.
(r)Homepage means the introductory page of an internet website and any internet web page where personal information is collected. In the case of an online service, such as a mobile application, homepage means the applications platform page or download page, a link within the application, such as from the application configuration, About, Information, or settings page, and any other location that allows consumers to review the notices required by this title, including, but not limited to, before downloading the application.
(s)Household means a group, however identified, of consumers who cohabitate with one another at the same residential address and share use of common devices or services.
(t)Infer or inference means the derivation of information, data, assumptions, or conclusions from facts, evidence, or another source of information or data.
(u)Intentionally interacts means when the consumer intends to interact with a person, or disclose personal information to a person, via one or more deliberate interactions, including visiting the persons website or purchasing a good or service from the person. Hovering over, muting, pausing, or closing a given piece of content does not constitute a consumers intent to interact with a person.
(v)Nonpersonalized advertising means advertising and marketing that is based solely on a consumers personal information derived from the consumers current interaction with the business with the exception of the consumers precise geolocation.
(w)Person means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.
(x)(1)Personal information means information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Personal information includes, but is not limited to, the following if it identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular consumer or household:
(A)Identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, drivers license number, passport number, or other similar identifiers.
(B)Any personal information described in subdivision (e) of Section 1798.80.
(C)Characteristics of protected classifications under California or federal law.
(D)Commercial information, including records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies.
(E)Biometric information.
(F)Internet or other electronic network activity information, including, but not limited to, browsing history, search history, and information regarding a consumers interaction with an internet website application, or advertisement.
(G)Geolocation data.
(H)Audio, electronic, visual, thermal, olfactory, or similar information.
(I)Professional or employment-related information.
(J)Education information, defined as information that is not publicly available personally identifiable information as defined in the Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g; 34 C.F.R. Part 99).
(K)Inferences drawn from any of the information identified in this subdivision to create a profile about a consumer reflecting the consumers preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.
(L)Sensitive personal information.
(2)Personal information does not include publicly available information or lawfully obtained, truthful information that is a matter of public concern. For purposes of this paragraph, publicly available means: information that is lawfully made available from federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public by the consumer or from widely distributed media; or information made available by a person to whom the consumer has disclosed the information if the consumer has not restricted the information to a specific audience. Publicly available does not mean biometric information collected by a business about a consumer without the consumers knowledge.
(3)Personal information does not include consumer information that is deidentified or aggregate consumer information.
(y)Precise geolocation means any data that is derived from a device and that is used or intended to be used to locate a consumer within a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet, except as prescribed by regulations.
(z)Probabilistic identifier means the identification of a consumer or a consumers device to a degree of certainty of more probable than not based on any categories of personal information included in, or similar to, the categories enumerated in the definition of personal information.
(aa)Processing means any operation or set of operations that are performed on personal information or on sets of personal information, whether or not by automated means.
(ab)Profiling means any form of automated processing of personal information, as further defined by regulations pursuant to paragraph (16) of subdivision (a) of Section 1798.185, to evaluate certain personal aspects relating to a natural person and in particular to analyze or predict aspects concerning that natural persons performance at work, economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.
(ac)Pseudonymize or Pseudonymizationpseudonymization means the processing of personal information in a manner that renders the personal information no longer attributable to a specific consumer without the use of additional information, provided that the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal information is not attributed to an identified or identifiable consumer.
(ad)Qualified business means a sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that collects consumers personal information, or on the behalf of which that information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers personal information, that does business in the state, and that satisfies one or more of the following thresholds:
(1)As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.
(2)Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.
(3)Derives 50 percent or more of its annual revenues from selling or sharing consumers personal information.
(4)Provides a system or service for use in schools.
(ad)(ae)Research means scientific analysis, systematic study, and observation, including basic research or applied research that is designed to develop or contribute to public or scientific knowledge and that adheres or otherwise conforms to all other applicable ethics and privacy laws, including, but not limited to, studies conducted in the public interest in the area of public health. Research with personal information that may have been collected from a consumer in the course of the consumers interactions with a business service or device for other purposes shall be:
(1)Compatible with the business purpose for which the personal information was collected.
(2)Subsequently pseudonymized and deidentified, or deidentified and in the aggregate, such that the information cannot reasonably identify, relate to, describe, be capable of being associated with, or be linked, directly or indirectly, to a particular consumer, by a business.
(3)Made subject to technical safeguards that prohibit reidentification of the consumer to whom the information may pertain, other than as needed to support the research.
(4)Subject to business processes that specifically prohibit reidentification of the information, other than as needed to support the research.
(5)Made subject to business processes to prevent inadvertent release of deidentified information.
(6)Protected from any reidentification attempts.
(7)Used solely for research purposes that are compatible with the context in which the personal information was collected.
(8)Subjected by the business conducting the research to additional security controls that limit access to the research data to only those individuals as are necessary to carry out the research purpose.
(ae)(af)Security and integrity means the ability of:
(1)Networks or information systems to detect security incidents that compromise the availability, authenticity, integrity, and confidentiality of stored or transmitted personal information.
(2)Businesses to detect security incidents, resist malicious, deceptive, fraudulent, or illegal actions and to help prosecute those responsible for those actions.
(3)Businesses to ensure the physical safety of natural persons.
(af)(ag)(1)Sell, selling, sale, or sold, means selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for monetary or other valuable consideration.
(2)For purposes of this title, a business does not sell personal information when:
(A)A consumer uses or directs the business to intentionally:
(i)Disclose personal information.
(ii)Interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(ag)(ah)Sensitive personal information means:
(1)Personal information that reveals:
(A)A consumers social security, drivers license, state identification card, or passport number.
(B)A consumers account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.
(C)A consumers precise geolocation.
(D)A consumers racial or ethnic origin, citizenship or immigration status, religious or philosophical beliefs, or union membership.
(E)The contents of a consumers mail, email, and text messages unless the business is the intended recipient of the communication.
(F)A consumers genetic data.
(2)(A)The processing of biometric information for the purpose of uniquely identifying a consumer.
(B)Personal information collected and analyzed concerning a consumers health.
(C)Personal information collected and analyzed concerning a consumers sex life or sexual orientation.
(3)Sensitive personal information that is publicly available pursuant to paragraph (2) of subdivision (x) shall not be considered sensitive personal information or personal information.
(ah)(ai)Service or services means work, labor, and services, including services furnished in connection with the sale or repair of goods.
(ai)(aj)(1)Service provider means a person that processes personal information on behalf of a business and that receives from or on behalf of the business consumers personal information for a business purpose pursuant to a written contract, provided that the contract prohibits the person from:
(A)Selling or sharing the personal information.
(B)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract for the business, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract with the business, or as otherwise permitted by this title.
(C)Retaining, using, or disclosing the information outside of the direct business relationship between the service provider and the business.
(D)Combining the personal information that the service provider receives from, or on behalf of, the business with personal information that it receives from, or on behalf of, another person or persons, or collects from its own interaction with the consumer, provided that the service provider may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (f) of this section and in regulations adopted by the California Privacy Protection Agency. The contract may, subject to agreement with the service provider, permit the business to monitor the service providers compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a service provider engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the service provider engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(aj)(ak)(1)Share, shared, or sharing means sharing, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for cross-context behavioral advertising, whether or not for monetary or other valuable consideration, including transactions between a business and a third party for cross-context behavioral advertising for the benefit of a business in which no money is exchanged.
(2)For purposes of this title, a business does not share personal information when:
(A)A consumer uses or directs the business to intentionally disclose personal information or intentionally interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(ak)(al)Third party means a person who is not any of the following:
(1)The business with whom the consumer intentionally interacts and that collects personal information from the consumer as part of the consumers current interaction with the business under this title.
(2)A service provider to the business.
(3)A contractor.
(al)(am)Train means exposing to expose artificial intelligence to data in order to alter the relationship between inputs and outputs.
(am)(an)Unique identifier or unique personal identifier means a persistent identifier that can be used to recognize a consumer, a family, or a device that is linked to a consumer or family, over time and across different services, including, but not limited to, a device identifier; an Internet Protocol address; cookies, beacons, pixel tags, mobile ad identifiers, or similar technology; customer number, unique pseudonym, or user alias; telephone numbers, or other forms of persistent or probabilistic identifiers that can be used to identify a particular consumer or device that is linked to a consumer or family. For purposes of this subdivision, family means a custodial parent or guardian and any children under 18 years of age over which the parent or guardian has custody.
(an)(ao)Verifiable consumer request means a request that is made by a consumer, by a consumer on behalf of the consumers minor child, by a natural person or a person registered with the Secretary of State, authorized by the consumer to act on the consumers behalf, or by a person who has power of attorney or is acting as a conservator for the consumer, and that the business can verify, using commercially reasonable methods, pursuant to regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185 to be the consumer about whom the business has collected personal information. A business is not obligated to provide information to the consumer pursuant to Sections 1798.110 and 1798.115, to delete personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, if the business cannot verify, pursuant to this subdivision and regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185, that the consumer making the request is the consumer about whom the business has collected information or is a person authorized by the consumer to act on such consumers behalf.
SEC. 5.Section 1798.145 of the Civil Code is amended to read:1798.145.Exemptions
(a)(1)The obligations imposed on businesses by this title shall not restrict a businesss ability to:
(A)Comply with federal, state, or local laws or comply with a court order or subpoena to provide information.
(B)Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, or local authorities. Law enforcement agencies, including police and sheriffs departments, may direct a business pursuant to a law enforcement agency-approved investigation with an active case number not to delete a consumers personal information, and, upon receipt of that direction, a business shall not delete the personal information for 90 days in order to allow the law enforcement agency to obtain a court-issued subpoena, order, or warrant to obtain a consumers personal information. For good cause and only to the extent necessary for investigatory purposes, a law enforcement agency may direct a business not to delete the consumers personal information for additional 90-day periods. A business that has received direction from a law enforcement agency not to delete the personal information of a consumer who has requested deletion of the consumers personal information shall not use the consumers personal information for any purpose other than retaining it to produce to law enforcement in response to a court-issued subpoena, order, or warrant unless the consumers deletion request is subject to an exemption from deletion under this title.
(C)Cooperate with law enforcement agencies concerning conduct or activity that the business, service provider, or third party reasonably and in good faith believes may violate federal, state, or local law.
(D)(i)Cooperate with a government agency request for emergency access to a consumers personal information if a natural person is at risk or danger of death or serious physical injury provided that:
(I)The request is approved by a high-ranking agency officer for emergency access to a consumers personal information.
(II)The request is based on the agencys good faith determination that it has a lawful basis to access the information on a nonemergency basis.
(III)The agency agrees to petition a court for an appropriate order within three days and to destroy the information if that order is not granted.
(ii)For purposes of this subparagraph, a consumer accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services, shall not constitute a natural person being at risk or danger of death or serious physical injury.
(E)Exercise or defend legal claims.
(F)Collect, use, retain, sell, share, or disclose consumers personal information that is deidentified or aggregate consumer information.
(G)Collect, sell, or share a consumers personal information if every aspect of that commercial conduct takes place wholly outside of California. For purposes of this title, commercial conduct takes place wholly outside of California if the business collected that information while the consumer was outside of California, no part of the sale of the consumers personal information occurred in California, and no personal information collected while the consumer was in California is sold. This paragraph shall not prohibit a business from storing, including on a device, personal information about a consumer when the consumer is in California and then collecting that personal information when the consumer and stored personal information is outside of California.
(2)(A)This subdivision shall not apply if the consumers personal information contains information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services.
(B)This paragraph does not alter the use of aggregated or deidentified personal information consistent with a business purpose as defined in paragraphs (1), (2), (3), (4), (5), (7), or (8) of subdivision (f) of Section 1798.140, provided that the personal information is only retained in aggregated and deidentified form and is not sold or shared.
(C)This paragraph does not alter the duty of a business to preserve or retain evidence pursuant to California or federal law in an ongoing civil proceeding.
(b)The obligations imposed on businesses by Sections 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, and 1798.135 shall not apply where compliance by the business with the title would violate an evidentiary privilege under California law and shall not prevent a business from providing the personal information of a consumer to a person covered by an evidentiary privilege under California law as part of a privileged communication.
(c)(1)This title shall not apply to any of the following:
(A)Medical information governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or protected health information that is collected by a covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the Health Information Technology for Economic and Clinical Health Act (Public Law 111-5).
(B)A provider of health care governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or a covered entity governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191), to the extent the provider or covered entity maintains patient information in the same manner as medical information or protected health information as described in subparagraph (A) of this section.
(C)Personal information collected as part of a clinical trial or other biomedical research study subject to, or conducted in accordance with, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule, pursuant to good clinical practice guidelines issued by the International Council for Harmonisation or pursuant to human subject protection requirements of the United States Food and Drug Administration, provided that the information is not sold or shared in a manner not permitted by this subparagraph, and, if it is inconsistent, that participants be informed of that use and provide consent.
(2)For purposes of this subdivision, the definitions of medical information and provider of health care in Section 56.05 shall apply and the definitions of business associate, covered entity, and protected health information in Section 160.103 of Title 45 of the Code of Federal Regulations shall apply.
(d)(1)This title shall not apply to an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumers creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in subdivision (f) of Section 1681a of Title 15 of the United States Code, by a furnisher of information, as set forth in Section 1681s-2 of Title 15 of the United States Code, who provides information for use in a consumer report, as defined in subdivision (d) of Section 1681a of Title 15 of the United States Code, and by a user of a consumer report as set forth in Section 1681b of Title 15 of the United States Code.
(2)Paragraph (1) shall apply only to the extent that such activity involving the collection, maintenance, disclosure, sale, communication, or use of such information by that agency, furnisher, or user is subject to regulation under the Fair Credit Reporting Act, Section 1681 et seq., Title 15 of the United States Code and the information is not collected, maintained, used, communicated, disclosed, or sold except as authorized by the Fair Credit Reporting Act.
(3)This subdivision shall not apply to Section 1798.150.
(e)This title shall not apply to personal information collected, processed, sold, or disclosed subject to the federal Gramm-Leach-Bliley Act (Public Law 106-102), and implementing regulations, or the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050) of the Financial Code), or the federal Farm Credit Act of 1971 (as amended in 12 U.S.C. 2001-2279cc and implementing regulations, 12 C.F.R. 600, et seq.). This subdivision shall not apply to Section 1798.150.
(f)This title shall not apply to personal information collected, processed, sold, or disclosed pursuant to the Drivers Privacy Protection Act of 1994 (18 U.S.C. Sec. 2721 et seq.). This subdivision shall not apply to Section 1798.150.
(g)(1)Section 1798.120 shall not apply to vehicle information or ownership information retained or shared between a new motor vehicle dealer, as defined in Section 426 of the Vehicle Code, and the vehicles manufacturer, as defined in Section 672 of the Vehicle Code, if the vehicle information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vehicle repair covered by a vehicle warranty or a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code, provided that the new motor vehicle dealer or vehicle manufacturer with which that vehicle information or ownership information is shared does not sell, share, or use that information for any other purpose.
(2)Section 1798.120 shall not apply to vessel information or ownership information retained or shared between a vessel dealer and the vessels manufacturer, as defined in Section 651 of the Harbors and Navigation Code, if the vessel information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vessel repair covered by a vessel warranty or a recall conducted pursuant to Section 4310 of Title 46 of the United States Code, provided that the vessel dealer or vessel manufacturer with which that vessel information or ownership information is shared does not sell, share, or use that information for any other purpose.
(3)For purposes of this subdivision:
(A)Ownership information means the name or names of the registered owner or owners and the contact information for the owner or owners.
(B)Vehicle information means the vehicle information number, make, model, year, and odometer reading.
(C)Vessel dealer means a person who is engaged, wholly or in part, in the business of selling or offering for sale, buying or taking in trade for the purpose of resale, or exchanging, any vessel or vessels, as defined in Section 651 of the Harbors and Navigation Code, and receives or expects to receive money, profit, or any other thing of value.
(D)Vessel information means the hull identification number, model, year, month and year of production, and information describing any of the following equipment as shipped, transferred, or sold from the place of manufacture, including all attached parts and accessories:
(i)An inboard engine.
(ii)An outboard engine.
(iii)A stern drive unit.
(iv)An inflatable personal floatation device approved under Section 160.076 of Title 46 of the Code of Federal Regulations.
(h)Notwithstanding a businesss obligations to respond to and honor consumer rights requests pursuant to this title:
(1)A time period for a business to respond to a consumer for any verifiable consumer request may be extended by up to a total of 90 days where necessary, taking into account the complexity and number of the requests. The business shall inform the consumer of any such extension within 45 days of receipt of the request, together with the reasons for the delay.
(2)If the business does not take action on the request of the consumer, the business shall inform the consumer, without delay and at the latest within the time period permitted of response by this section, of the reasons for not taking action and any rights the consumer may have to appeal the decision to the business.
(3)If requests from a consumer are manifestly unfounded or excessive, in particular because of their repetitive character, a business may either charge a reasonable fee, taking into account the administrative costs of providing the information or communication or taking the action requested, or refuse to act on the request and notify the consumer of the reason for refusing the request. The business shall bear the burden of demonstrating that any verifiable consumer request is manifestly unfounded or excessive.
(i)(1)A business that discloses personal information to a service provider or contractor in compliance with this title shall not be liable under this title if the service provider or contractor receiving the personal information uses it in violation of the restrictions set forth in the title, provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the service provider or contractor intends to commit such a violation. A service provider or contractor shall likewise not be liable under this title for the obligations of a business for which it provides services as set forth in this title provided that the service provider or contractor shall be liable for its own violations of this title.
(2)A business that discloses personal information of a consumer, with the exception of consumers who have exercised their right to opt out of the sale or sharing of their personal information, consumers who have limited the use or disclosure of their sensitive personal information, and minor consumers who have not opted in to the collection or sale of their personal information, to a third party pursuant to a written contract that requires the third party to provide the same level of protection of the consumers rights under this title as provided by the business shall not be liable under this title if the third party receiving the personal information uses it in violation of the restrictions set forth in this title provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the third party intends to commit such a violation.
(j)This title shall not be construed to require a business, service provider, or contractor to:
(1)Reidentify or otherwise link information that, in the ordinary course of business, is not maintained in a manner that would be considered personal information.
(2)Retain any personal information about a consumer if, in the ordinary course of business, that information about the consumer would not be retained.
(3)Maintain information in identifiable, linkable, or associable form, or collect, obtain, retain, or access any data or technology, in order to be capable of linking or associating a verifiable consumer request with personal information.
(k)The rights afforded to consumers and the obligations imposed on the business in this title shall not adversely affect the rights and freedoms of other natural persons. A verifiable consumer request for specific pieces of personal information pursuant to Section 1798.110, to delete a consumers personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, shall not extend to personal information about the consumer that belongs to, or the business maintains on behalf of, another natural person. A business may rely on representations made in a verifiable consumer request as to rights with respect to personal information and is under no legal requirement to seek out other persons that may have or claim to have rights to personal information, and a business is under no legal obligation under this title or any other provision of law to take any action under this title in the event of a dispute between or among persons claiming rights to personal information in the businesss possession.
(l)The rights afforded to consumers and the obligations imposed on any business under this title shall not apply to the extent that they infringe on the noncommercial activities of a person or entity described in subdivision (b) of Section 2 of Article I of the California Constitution.
(m)(1)This title shall not apply to any of the following:
(A)Personal information that is collected by a business about a natural person in the course of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the natural persons personal information is collected and used by the business solely within the context of the natural persons role or former role as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or an independent contractor of, that business.
(B)Personal information that is collected by a business that is emergency contact information of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of having an emergency contact on file.
(C)Personal information that is necessary for the business to retain to administer benefits for another natural person relating to the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of administering those benefits.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Medical staff member means a licensed physician and surgeon, dentist, or podiatrist, licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code and a clinical psychologist as defined in Section 1316.5 of the Health and Safety Code.
(D)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(E)Owner means a natural person who meets one of the following criteria:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall not apply to subdivision (a) of Section 1798.100 or Section 1798.150.
(4)This subdivision shall become inoperative on January 1, 2023.
(n)(1)The obligations imposed on businesses by Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.121, 1798.130, and 1798.135 shall not apply to personal information reflecting a written or verbal communication or a transaction between the business and the consumer, where the consumer is a natural person who acted or is acting as an employee, owner, director, officer, or independent contractor of a company, partnership, sole proprietorship, nonprofit, or government agency and whose communications or transaction with the business occur solely within the context of the business conducting due diligence regarding, or providing or receiving a product or service to or from such company, partnership, sole proprietorship, nonprofit, or government agency.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as such or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, such as a chief executive officer, president, secretary, or treasurer.
(D)Owner means a natural person who meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall become inoperative on January 1, 2023.
(o)(1)Sections 1798.105 and 1798.120 shall not apply to a commercial credit reporting agencys collection, processing, sale, or disclosure of business controller information to the extent the commercial credit reporting agency uses the business controller information solely to identify the relationship of a consumer to a business that the consumer owns or contact the consumer only in the consumers role as the owner, director, officer, or management employee of the business.
(2)For the purposes of this subdivision:
(A)Business controller information means the name or names of the owner or owners, director, officer, or management employee of a business and the contact information, including a business title, for the owner or owners, director, officer, or management employee.
(B)Commercial credit reporting agency has the meaning set forth in subdivision (b) of Section 1785.42.
(C)Owner means a natural person that meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(D)Director means a natural person designated in the articles of incorporation of a business as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(E)Officer means a natural person elected or appointed by the board of directors of a business to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(F)Management employee means a natural person whose name and contact information is reported to or collected by a commercial credit reporting agency as the primary manager of a business and used solely within the context of the natural persons role as the primary manager of the business.
(p)The obligations imposed on businesses in Sections 1798.105, 1798.106, 1798.110, and 1798.115 shall not apply to household data.
(q)(1)This title does not require a business to comply with a verifiable consumer request to delete a consumers personal information under Section 1798.105 to the extent the verifiable consumer request applies to a students grades, educational scores, or educational test results that the business holds on behalf of a local educational agency, as defined in subdivision (d) of Section 49073.1 of the Education Code, at which the student is currently enrolled. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(2)This title does not require, in response to a request pursuant to Section 1798.110, that a business disclose on educational standardized assessment or educational assessment or a consumers specific responses to the educational standardized assessment or educational assessment if consumer access, possession, or control would jeopardize the validity and reliability of that educational standardized assessment or educational assessment. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(3)For purposes of this subdivision:
(A)Educational standardized assessment or educational assessment means a standardized or nonstandardized quiz, test, or other assessment used to evaluate students in or for entry to kindergarten and grades 1 to 12, inclusive, schools, postsecondary institutions, vocational programs, and postgraduate programs that are accredited by an accrediting agency or organization recognized by the State of California or the United States Department of Education, as well as certification and licensure examinations used to determine competency and eligibility to receive certification or licensure from a government agency or government certification body.
(B)Jeopardize the validity and reliability of that educational standardized assessment or educational assessment means releasing information that would provide an advantage to the consumer who has submitted a verifiable consumer request or to another natural person.
(r)Sections 1798.105 and 1798.120 shall not apply to a businesss use, disclosure, or sale of particular pieces of a consumers personal information if the consumer has consented to the businesss use, disclosure, or sale of that information to produce a physical item, including a school yearbook containing the consumers photograph if:
(1)The business has incurred significant expense in reliance on the consumers consent.
(2)Compliance with the consumers request to opt out of the sale of the consumers personal information or to delete the consumers personal information would not be commercially reasonable.
(3)The business complies with the consumers request as soon as it is commercially reasonable to do so.
SEC. 6.Section 1798.185 of the Civil Code is amended to read:1798.185.Regulations
(a)On or before July 1, 2020, the Attorney General shall solicit broad public participation and adopt regulations to further the purposes of this title, including, but not limited to, the following areas:
(1)Updating or adding categories of personal information to those enumerated in subdivision (c) of Section 1798.130 and subdivision (x) of Section 1798.140, and updating or adding categories of sensitive personal information to those enumerated in subdivision (ag) of Section 1798.140 in order to address changes in technology, data collection practices, obstacles to implementation, and privacy concerns.
(2)Updating as needed the definitions of deidentified and unique identifier to address changes in technology, data collection, obstacles to implementation, and privacy concerns, and adding, modifying, or deleting categories to the definition of designated methods for submitting requests to facilitate a consumers ability to obtain information from a business pursuant to Section 1798.130. The authority to update the definition of deidentified shall not apply to deidentification standards set forth in Section 164.514 of Title 45 of the Code of Federal Regulations, where such information previously was protected health information as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.
(3)Establishing any exceptions necessary to comply with state or federal law, including, but not limited to, those relating to trade secrets and intellectual property rights, within one year of passage of this title and as needed thereafter, with the intention that trade secrets should not be disclosed in response to a verifiable consumer request.
(4)Establishing rules and procedures for the following:
(A)To facilitate and govern the submission of a request by a consumer to opt out of the sale or sharing of personal information pursuant to Section 1798.120 and to limit the use of a consumers sensitive personal information pursuant to Section 1798.121 to ensure that consumers have the ability to exercise their choices without undue burden and to prevent business from engaging in deceptive or harassing conduct, including in retaliation against consumers for exercising their rights, while allowing businesses to inform consumers of the consequences of their decision to opt out of the sale or sharing of their personal information or to limit the use of their sensitive personal information.
(B)To govern business compliance with a consumers opt-out request.
(C)For the development and use of a recognizable and uniform opt-out logo or button by all businesses to promote consumer awareness of the opportunity to opt out of the sale of personal information.
(5)Adjusting the monetary thresholds, in January of every odd-numbered year to reflect any increase in the Consumer Price Index, in: subparagraph (A) of paragraph (1) of subdivision (e) of Section 1798.140; subparagraph (A) of paragraph (1) of subdivision (a) of Section 1798.150; subdivision (a) of Section 1798.155; Section 1798.199.25; and subdivision (a) of Section 1798.199.90.
(6)Establishing rules, procedures, and any exceptions necessary to ensure that the notices and information that businesses are required to provide pursuant to this title are provided in a manner that may be easily understood by the average consumer, are accessible to consumers with disabilities, and are available in the language primarily used to interact with the consumer, including establishing rules and guidelines regarding financial incentives within one year of passage of this title and as needed thereafter.
(7)Establishing rules and procedures to further the purposes of Sections 1798.105, 1798.106, 1798.110, and 1798.115 and to facilitate a consumers or the consumers authorized agents ability to delete personal information, correct inaccurate personal information pursuant to Section 1798.106, or obtain information pursuant to Section 1798.130, with the goal of minimizing the administrative burden on consumers, taking into account available technology, security concerns, and the burden on the business, to govern a businesss determination that a request for information received from a consumer is a verifiable consumer request, including treating a request submitted through a password-protected account maintained by the consumer with the business while the consumer is logged into the account as a verifiable consumer request and providing a mechanism for a consumer who does not maintain an account with the business to request information through the businesss authentication of the consumers identity, within one year of passage of this title and as needed thereafter.
(8)Establishing how often, and under what circumstances, a consumer may request a correction pursuant to Section 1798.106, including standards governing the following:
(A)How a business responds to a request for correction, including exceptions for requests to which a response is impossible or would involve disproportionate effort, and requests for correction of accurate information.
(B)How concerns regarding the accuracy of the information may be resolved.
(C)The steps a business may take to prevent fraud.
(D)If a business rejects a request to correct personal information collected and analyzed concerning a consumers health, the right of a consumer to provide a written addendum to the business with respect to any item or statement regarding any such personal information that the consumer believes to be incomplete or incorrect. The addendum shall be limited to 250 words per alleged incomplete or incorrect item and shall clearly indicate in writing that the consumer requests the addendum to be made a part of the consumers record.
(9)Establishing the standard to govern a businesss determination, pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 1798.130, that providing information beyond the 12-month period in a response to a verifiable consumer request is impossible or would involve a disproportionate effort.
(10)Issuing regulations further defining and adding to the business purposes, including other notified purposes, for which businesses, service providers, and contractors may use consumers personal information consistent with consumers expectations, and further defining the business purposes for which service providers and contractors may combine consumers personal information obtained from different sources, except as provided for in paragraph (6) of subdivision (f) of Section 1798.140.
(11)Issuing regulations identifying those business purposes, including other notified purposes, for which service providers and contractors may use consumers personal information received pursuant to a written contract with a business, for the service provider providers or contractors own business purposes, with the goal of maximizing consumer privacy.
(12)Issuing regulations to further define intentionally interacts, with the goal of maximizing consumer privacy.
(13)Issuing regulations to further define precise geolocation, including if the size defined is not sufficient to protect consumer privacy in sparsely populated areas or when the personal information is used for normal operational purposes, including billing.
(14)Issuing regulations to define the term specific pieces of information obtained from the consumer with the goal of maximizing a consumers right to access relevant personal information while minimizing the delivery of information to a consumer that would not be useful to the consumer, including system log information and other technical data. For delivery of the most sensitive personal information, the regulations may require a higher standard of authentication provided that the agency shall monitor the impact of the higher standard on the right of consumers to obtain their personal information to ensure that the requirements of verification do not result in the unreasonable denial of verifiable consumer requests.
(15)Issuing regulations requiring businesses whose processing of consumers personal information presents significant risk to consumers privacy or security, to:
(A)Perform a cybersecurity audit on an annual basis, including defining the scope of the audit and establishing a process to ensure that audits are thorough and independent. The factors to be considered in determining when processing may result in significant risk to the security of personal information shall include the size and complexity of the business and the nature and scope of processing activities.
(B)Submit to the California Privacy Protection Agency on a regular basis a risk assessment with respect to their processing of personal information, including whether the processing involves sensitive personal information, and identifying and weighing the benefits resulting from the processing to the business, the consumer, other stakeholders, and the public, against the potential risks to the rights of the consumer associated with that processing, with the goal of restricting or prohibiting the processing if the risks to privacy of the consumer outweigh the benefits resulting from processing to the consumer, the business, other stakeholders, and the public. Nothing in this section shall require a business to divulge trade secrets.
(16)Issuing regulations governing access and opt-out rights with respect to businesses use of automated decisionmaking technology, including profiling and requiring businesses response to access requests to include meaningful information about the logic involved in those decisionmaking processes, as well as a description of the likely outcome of the process with respect to the consumer.
(17)Issuing regulations to further define a law enforcement agency-approved investigation for purposes of the exception in subparagraph (B) of paragraph (1) of subdivision (a) of Section 1798.145.
(18)Issuing regulations to define the scope and process for the exercise of the agencys audit authority, to establish criteria for selection of persons to audit, and to protect consumers personal information from disclosure to an auditor in the absence of a court order, warrant, or subpoena.
(19)(A)Issuing regulations to define the requirements and technical specifications for an opt-out preference signal sent by a platform, technology, or mechanism, to indicate a consumers intent to opt out of the sale or sharing of the consumers personal information and to limit the use or disclosure of the consumers sensitive personal information. The requirements and specifications for the opt-out preference signal should be updated from time to time to reflect the means by which consumers interact with businesses, and should:
(i)Ensure that the manufacturer of a platform or browser or device that sends the opt-out preference signal cannot unfairly disadvantage another business.
(ii)Ensure that the opt-out preference signal is consumer-friendly, clearly described, and easy to use by an average consumer and does not require that the consumer provide additional information beyond what is necessary.
(iii)Clearly represent a consumers intent and be free of defaults constraining or presupposing that intent.
(iv)Ensure that the opt-out preference signal does not conflict with other commonly used privacy settings or tools that consumers may employ.
(v)Provide a mechanism for the consumer to selectively consent to a businesss sale of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, without affecting the consumers preferences with respect to other businesses or disabling the opt-out preference signal globally.
(vi)State that in the case of a page or setting view that the consumer accesses to set the opt-out preference signal, the consumer should see up to three choices, including:
(I)Global opt out from sale and sharing of personal information, including a direction to limit the use of sensitive personal information.
(II)Choice to Limit the Use of My Sensitive Personal Information.
(III)Choice titled Do Not Sell/Do Not Share My Personal Information for Cross-Context Behavioral Advertising.
(B)Issuing regulations to establish technical specifications for an opt-out preference signal that allows the consumer, or the consumers parent or guardian, to specify that the consumer is less than 13 years of age or at least 13 years of age and less than 16 years of age.
(C)Issuing regulations, with the goal of strengthening consumer privacy while considering the legitimate operational interests of businesses, to govern the use or disclosure of a consumers sensitive personal information, notwithstanding the consumers direction to limit the use or disclosure of the consumers sensitive personal information, including:
(i)Determining any additional purposes for which a business may use or disclose a consumers sensitive personal information.
(ii)Determining the scope of activities permitted under paragraph (8) of subdivision (f) of Section 1798.140, as authorized by subdivision (a) of Section 1798.121, to ensure that the activities do not involve health-related research.
(iii)Ensuring the functionality of the businesss operations.
(iv)Ensuring that the exemption in subdivision (d) of Section 1798.121 for sensitive personal information applies to information that is collected or processed incidentally, or without the purpose of inferring characteristics about a consumer, while ensuring that businesses do not use the exemption for the purpose of evading consumers rights to limit the use and disclosure of their sensitive personal information under Section 1798.121.
(20)Issuing regulations to govern how a business that has elected to comply with subdivision (b) of Section 1798.135 responds to the opt-out preference signal and provides consumers with the opportunity subsequently to consent to the sale or sharing of their personal information or the use and disclosure of their sensitive personal information for purposes in addition to those authorized by subdivision (a) of Section 1798.121. The regulations should:
(A)Strive to promote competition and consumer choice and be technology neutral.
(B)Ensure that the business does not respond to an opt-out preference signal by:
(i)Intentionally degrading the functionality of the consumer experience.
(ii)Charging the consumer a fee in response to the consumers opt-out preferences.
(iii)Making any products or services not function properly or fully for the consumer, as compared to consumers who do not use the opt-out preference signal.
(iv)Attempting to coerce the consumer to opt in to the sale or sharing of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, by stating or implying that the use of the opt-out preference signal will adversely affect the consumer as compared to consumers who do not use the opt-out preference signal, including stating or implying that the consumer will not be able to use the businesss products or services or that those products or services may not function properly or fully.
(v)Displaying any notification or pop-up in response to the consumers opt-out preference signal.
(C)Ensure that any link to a web page or its supporting content that allows the consumer to consent to opt in:
(i)Is not part of a popup, notice, banner, or other intrusive design that obscures any part of the web page the consumer intended to visit from full view or that interferes with or impedes in any way the consumers experience visiting or browsing the web page or website the consumer intended to visit.
(ii)Does not require or imply that the consumer must click the link to receive full functionality of any products or services, including the website.
(iii)Does not make use of any dark patterns.
(iv)Applies only to the business with which the consumer intends to interact.
(D)Strive to curb coercive or deceptive practices in response to an opt-out preference signal but should not unduly restrict businesses that are trying in good faith to comply with Section 1798.135.
(21)Review existing Insurance Code provisions and regulations relating to consumer privacy, except those relating to insurance rates or pricing, to determine whether any provisions of the Insurance Code provide greater protection to consumers than the provisions of this title. Upon completing its review, the agency shall adopt a regulation that applies only the more protective provisions of this title to insurance companies. For the purpose of clarity, the Insurance Commissioner shall have jurisdiction over insurance rates and pricing.
(22)Harmonizing the regulations governing opt-out mechanisms, notices to consumers, and other operational mechanisms in this title to promote clarity and the functionality of this title for consumers.
(b)The Attorney General may adopt additional regulations as necessary to further the purposes of this title.
(c)The Attorney General shall not bring an enforcement action under this title until six months after the publication of the final regulations issued pursuant to this section or July 1, 2020, whichever is sooner.
(d)Notwithstanding subdivision (a), the timeline for adopting final regulations required by the act adding this subdivision shall be July 1, 2022. Beginning the later of July 1, 2021, or six months after the agency provides notice to the Attorney General that it is prepared to begin rulemaking under this title, the authority assigned to the Attorney General to adopt regulations under this section shall be exercised by the California Privacy Protection Agency. Notwithstanding any other law, civil and administrative enforcement of the provisions of law added or amended by this act shall not commence until July 1, 2023, and shall only apply to violations occurring on or after that date. Enforcement of provisions of law contained in the California Consumer Privacy Act of 2018 amended by this act shall remain in effect and shall be enforceable until the same provisions of this act become enforceable.
SEC. 7.Section 1798.199.40 of the Civil Code is amended to read:1798.199.40.The agency shall perform the following functions:
(a)Administer, implement, and enforce through administrative actions this title.
(b)On and after the later of July 1, 2021, or within six months of the agency providing the Attorney General with notice that it is prepared to assume rulemaking responsibilities under this title, adopt, amend, and rescind regulations pursuant to Section 1798.185 to carry out the purposes and provisions of the California Consumer Privacy Act of 2018, including regulations specifying recordkeeping requirements for businesses to ensure compliance with this title.
(c)Through the implementation of this title, protect the fundamental privacy rights of natural persons with respect to the use of their personal information.
(d)Promote public awareness and understanding of the risks, rules, responsibilities, safeguards, and rights in relation to the collection, use, sale, and disclosure of personal information, including the rights of minors with respect to their own information, and provide a public report summarizing the risk assessments filed with the agency pursuant to paragraph (15) of subdivision (a) of Section 1798.185 while ensuring that data security is not compromised.
(e)Provide guidance to consumers regarding their rights under this title.
(f)Provide guidance to businesses regarding their duties and responsibilities under this title and appoint a Chief Privacy Auditor to conduct audits of businesses to ensure compliance with this title pursuant to regulations adopted pursuant to paragraph (18) of subdivision (a) of Section 1798.185.
(g)Provide technical assistance and advice to the Legislature, upon request, with respect to privacy-related legislation.
(h)Monitor relevant developments relating to the protection of personal information and, in particular, the development of information and communication technologies and commercial practices.
(i)Cooperate with other agencies with jurisdiction over privacy laws and with data processing authorities in California, other states, territories, and countries to ensure consistent application of privacy protections.
(j)Establish a mechanism pursuant to which persons doing business in California that do not meet the definition of business set forth in paragraph (1), (2), or (3) of subdivision (e) of Section 1798.140 may voluntarily certify that they are in compliance with this title, as set forth in paragraph (4) of subdivision (e) of Section 1798.140, and make a list of those entities available to the public.
(k)Solicit, review, and approve applications for grants to the extent funds are available pursuant to paragraph (2) of subdivision (b) of Section 1798.160.
(l)Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction and seek to balance the goals of strengthening consumer privacy while giving attention to the impact on businesses.
SEC. 8.Section 1798.199.41 is added to the Civil Code, to read:1798.199.41.If the sale or sharing of a consumers personal information requires affirmative authorization under subdivision (c) of Section 1798.120, a (a)A developer shall not use the personal information of that a consumer described by subdivision (c) of Section 1798.120 to train or retrain an artificial intelligence system or service unless the consumer or the consumers parent or guardian has affirmatively authorized, in the same manner as described in subdivision (c) of Section 1798.120, that use of the consumers personal information. If affirmative authorization is given, the personal information shall be deidentified and aggregated before being used to train an artificial intelligence system or service.
(b)If affirmative authorization is given pursuant to this section, a developer shall deidentify and aggregate the personal information subject to the authorization before using the personal information to train or retrain an artificial intelligence system or service.
SEC. 9.The Legislature finds and declares that this act furthers the purposes and intent of The California Privacy Rights Act of 2020.
(a)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except as specified in subdivision (c).
(b)For purposes of this section, the following definitions apply:
(1)Business means the same as defined in subdivision (c) (e) of Section 1798.140.
(2)Collect means the same as defined in subdivision (f) (g) of Section 1798.140.
(3)Family planning center means a business categorized as a family planning center by the North American Industry Classification System adopted by the United States Census Bureau, including, but not limited to, a clinic or center that provides reproductive health care services as defined in Section 1798.300 of the Civil Code.
(4)Personal information has the same definition as that term is defined in subdivision (v) (x) of Section 1798.140, except as applied to all persons and not limited to consumers and households, as those terms are defined in subdivisions (i) and (q), (j) and (s), respectively, of that section.
(5)Precise geolocation means a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet as derived from a device that is used or intended to be used to locate a person.
(6)Sell means the same as defined in subdivision (ad) (af) of Section 1798.140.
(7)Share means the same as defined in subdivision (ah) (aj) of Section 1798.140.
(c)A person or business shall not collect, use, disclose, or retain the personal information of a person who is physically located at, or within a precise geolocation of, a family planning center, except only as necessary to perform the services or provide the goods requested by the person. A person or business shall not sell or share this personal information.
(d)(1)An aggrieved person or entity, including a family planning center, may institute and prosecute a civil action against any person or business who violates this section for injunctive and monetary relief and attorneys fees within three years of discovery of the violation.
(2)If the court finds for the petitioner in an action authorized by paragraph (1), recovery shall be in the amount of three times the amount of actual damages and any other expenses, costs, or reasonable attorneys fees incurred in connection with the litigation.
(e)This section does not apply to a provider of health care, a health care service plan, or contractor, as those terms are defined in Section 56.05.
SEC. 2.Section 1798.121 of the Civil Code is amended to read:1798.121.Consumers Right to Limit Use and Disclosure of Sensitive Personal Information
(a)A consumer shall have the right, at any time, to direct a business that collects sensitive personal information about the consumer to limit its use of the consumers sensitive personal information to that use which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services, to perform the services set forth in paragraphs (2), (4), (5), and (8) of subdivision (e) (f) of Section 1798.140, and as authorized by regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185. A business that uses or discloses a consumers sensitive personal information for purposes other than those specified in this subdivision shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be used, or disclosed to a service provider or contractor, for additional, specified purposes and that consumers have the right to limit the use or disclosure of their sensitive personal information.
(b)A business that has received direction from a consumer not to use or disclose the consumers sensitive personal information, except as authorized by subdivision (a), shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from using or disclosing the consumers sensitive personal information for any other purpose after its receipt of the consumers direction unless the consumer subsequently provides consent for the use or disclosure of the consumers sensitive personal information for additional purposes.
(c)A service provider or contractor that assists a business in performing the purposes authorized by subdivision (a) may not use the sensitive personal information after it has received instructions from the business and to the extent it has actual knowledge that the personal information is sensitive personal information for any other purpose. A service provider or contractor is only required to limit its use of sensitive personal information received pursuant to a written contract with the business in response to instructions from the business and only with respect to its relationship with that business.
(d)Sensitive personal information that is collected or processed without the purpose of inferring characteristics about a consumer is not subject to this section, as further defined in regulations adopted pursuant to subparagraph (C) of paragraph (19) of subdivision (a) of Section 1798.185, and shall be treated as personal information for purposes of all other sections of this act, including Section 1798.100.
SEC. 3.Section 1798.130 of the Civil Code is amended to read:1798.130.Notice, Disclosure, Correction, and Deletion Requirements
(a)In order to comply with Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125, a business shall, in a form that is reasonably accessible to consumers:
(1)(A)Make available to consumers two or more designated methods for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively, including, at a minimum, a toll-free telephone number. A business that operates exclusively online and has a direct relationship with a consumer from whom it collects personal information shall only be required to provide an email address for submitting requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or for requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(B)If the business maintains an internet website, make the internet website available to consumers to submit requests for information required to be disclosed pursuant to Sections 1798.110 and 1798.115, or requests for deletion or correction pursuant to Sections 1798.105 and 1798.106, respectively.
(2)(A)Disclose and deliver the required information to a consumer free of charge, correct inaccurate personal information, or delete a consumers personal information, based on the consumers request, within 45 days of receiving a verifiable consumer request from the consumer. The business shall promptly take steps to determine whether the request is a verifiable consumer request, but this shall not extend the businesss duty to disclose and deliver the information, to correct inaccurate personal information, or to delete personal information within 45 days of receipt of the consumers request. The time period to provide the required information, to correct inaccurate personal information, or to delete personal information may be extended once by an additional 45 days when reasonably necessary, provided the consumer is provided notice of the extension within the first 45-day period. The disclosure of the required information shall be made in writing and delivered through the consumers account with the business, if the consumer maintains an account with the business, or by mail or electronically at the consumers option if the consumer does not maintain an account with the business, in a readily useable format that allows the consumer to transmit this information from one entity to another entity without hindrance. The business may require authentication of the consumer that is reasonable in light of the nature of the personal information requested, but shall not require the consumer to create an account with the business in order to make a verifiable consumer request provided that if the consumer, has an account with the business, the business may require the consumer to use that account to submit a verifiable consumer request.
(B)The disclosure of the required information shall cover the 12-month period preceding the business receipt of the verifiable consumer request provided that, upon the adoption of a regulation pursuant to paragraph (9) of subdivision (a) of Section 1798.185, a consumer may request that the business disclose the required information beyond the 12-month period, and the business shall be required to provide that information unless doing so proves impossible or would involve a disproportionate effort. A consumers right to request required information beyond the 12-month period, and a businesss obligation to provide that information, shall only apply to personal information collected on or after January 1, 2022. Nothing in this subparagraph shall require a business to keep personal information for any length of time.
(3)(A)A business that receives a verifiable consumer request pursuant to Section 1798.110 or 1798.115 shall disclose any personal information it has collected about a consumer, directly or indirectly, including through or by a service provider or contractor, to the consumer. A service provider or contractor shall not be required to comply with a verifiable consumer request received directly from a consumer or a consumers authorized agent, pursuant to Section 1798.110 or 1798.115, to the extent that the service provider or contractor has collected personal information about the consumer in its role as a service provider or contractor. A service provider or contractor shall provide assistance to a business with which it has a contractual relationship with respect to the business response to a verifiable consumer request, including, but not limited to, by providing to the business the consumers personal information in the service provider or contractors possession, which the service provider or contractor obtained as a result of providing services to the business, and by correcting inaccurate information or by enabling the business to do the same. A service provider or contractor that collects personal information pursuant to a written contract with a business shall be required to assist the business through appropriate technical and organizational measures in complying with the requirements of subdivisions (d) to (f), inclusive, of Section 1798.100, taking into account the nature of the processing.
(B)For purposes of subdivision (b) of Section 1798.110:
(i)To identify the consumer, associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(ii)Identify by category or categories the personal information collected about the consumer for the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information collected; the categories of sources from which the consumers personal information was collected; the business or commercial purpose for collecting, selling, or sharing the consumers personal information; and the categories of third parties to whom the business discloses the consumers personal information.
(iii)Provide the specific pieces of personal information obtained from the consumer in a format that is easily understandable to the average consumer, and to the extent technically feasible, in a structured, commonly used, machine-readable format that may also be transmitted to another entity at the consumers request without hindrance. Specific pieces of information do not include data generated to help ensure security and integrity or as prescribed by regulation. Personal information is not considered to have been disclosed by a business when a consumer instructs a business to transfer the consumers personal information from one business to another in the context of switching services.
(4)For purposes of subdivision (b) of Section 1798.115:
(A)Identify the consumer and associate the information provided by the consumer in the verifiable consumer request to any personal information previously collected by the business about the consumer.
(B)Identify by category or categories the personal information of the consumer that the business sold or shared during the applicable period of time by reference to the enumerated category in subdivision (c) that most closely describes the personal information, and provide the categories of third parties to whom the consumers personal information was sold or shared during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information sold or shared. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (C).
(C)Identify by category or categories the personal information of the consumer that the business disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information, and provide the categories of persons to whom the consumers personal information was disclosed for a business purpose during the applicable period of time by reference to the enumerated category or categories in subdivision (c) that most closely describes the personal information disclosed. The business shall disclose the information in a list that is separate from a list generated for the purposes of subparagraph (B).
(5)Disclose the following information in its online privacy policy or policies if the business has an online privacy policy or policies and in any California-specific description of consumers privacy rights, or if the business does not maintain those policies, on its internet website, and update that information at least once every 12 months:
(A)A description of a consumers rights pursuant to Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, and 1798.125 and two or more designated methods for submitting requests, except as provided in subparagraph (A) of paragraph (1) of subdivision (a).
(B)For purposes of subdivision (c) of Section 1798.110:
(i)A list of the categories of personal information it has collected about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information collected.
(ii)The categories of sources from which consumers personal information is collected.
(iii)The business or commercial purpose for collecting, selling, or sharing consumers personal information.
(iv)The categories of third parties to whom the business discloses consumers personal information.
(C)For purposes of paragraphs (1) and (2) of subdivision (c) of Section 1798.115, two separate lists:
(i)A list of the categories of personal information it has sold or shared about consumers in the preceding 12 months by reference to the enumerated category or categories in subdivision (c) that most closely describe the personal information sold or shared, or if the business has not sold or shared consumers personal information in the preceding 12 months, the business shall prominently disclose that fact in its privacy policy.
(ii)A list of the categories of personal information it has disclosed about consumers for a business purpose in the preceding 12 months by reference to the enumerated category in subdivision (c) that most closely describes the personal information disclosed, or if the business has not disclosed consumers personal information for a business purpose in the preceding 12 months, the business shall disclose that fact.
(6)Ensure that all individuals responsible for handling consumer inquiries about the business privacy practices or the business compliance with this title are informed of all requirements in Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.125, and this section, and how to direct consumers to exercise their rights under those sections.
(7)Use any personal information collected from the consumer in connection with the business verification of the consumers request solely for the purposes of verification and shall not further disclose the personal information, retain it longer than necessary for purposes of verification, or use it for unrelated purposes.
(b)A business is not obligated to provide the information required by Sections 1798.110 and 1798.115 to the same consumer more than twice in a 12-month period.
(c)The categories of personal information required to be disclosed pursuant to Sections 1798.100, 1798.110, and 1798.115 shall follow the definitions of personal information and sensitive personal information in Section 1798.140 by describing the categories of personal information using the specific terms set forth in subparagraphs (A) to (K), inclusive, of paragraph (1) of subdivision (v) (x) of Section 1798.140 and by describing the categories of sensitive personal information using the specific terms set forth in paragraphs (1) to (9), inclusive, of subdivision (ae) (ag) of Section 1798.140.
SEC. 4.Section 1798.140 of the Civil Code is amended to read:1798.140.Definitions
For purposes of this title:
(a)Advertising and marketing means a communication by a business or a person acting on the business behalf in any medium intended to induce a consumer to obtain goods, services, or employment.
(b)Aggregate consumer information means information that relates to a group or category of consumers, from which individual consumer identities have been removed, that is not linked or reasonably linkable to any consumer or household, including via a device. Aggregate consumer information does not mean one or more individual consumer records that have been deidentified.
(c)Artificial intelligence means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
(c)(d)Biometric information means an individuals physiological, biological, or behavioral characteristics, including information pertaining to an individuals deoxyribonucleic acid (DNA), that is used or is intended to be used singly or in combination with each other or with other identifying data, to establish individual identity. Biometric information includes, but is not limited to, imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, and voice recordings, from which an identifier template, such as a faceprint, a minutiae template, or a voiceprint, can be extracted, and keystroke patterns or rhythms, gait patterns or rhythms, and sleep, health, or exercise data that contain identifying information.
(d)(e)Business means:
(1)A sole proprietorship, partnership, limited liability company, corporation, association, or other legal entity that is organized or operated for the profit or financial benefit of its shareholders or other owners, that collects consumers personal information, or on the behalf of which such information is collected and that alone, or jointly with others, determines the purposes and means of the processing of consumers personal information, that does business in the State of California, and that satisfies one or more of the following thresholds:
(A)As of January 1 of the calendar year, had annual gross revenues in excess of twenty-five million dollars ($25,000,000) in the preceding calendar year, as adjusted pursuant to paragraph (5) of subdivision (a) of Section 1798.185.
(B)Alone or in combination, annually buys, sells, or shares the personal information of 100,000 or more consumers or households.
(C)Derives 50 percent or more of its annual revenues from selling or sharing consumers personal information.
(2)Any entity that controls or is controlled by a business, as defined in paragraph (1), and that shares common branding with the business and with whom the business shares consumers personal information. Control or controlled means ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company. Common branding means a shared name, servicemark, or trademark that the average consumer would understand that two or more entities are commonly owned.
(3)A joint venture or partnership composed of businesses in which each business has at least a 40 percent interest. For purposes of this title, the joint venture or partnership and each business that composes the joint venture or partnership shall separately be considered a single business, except that personal information in the possession of each business and disclosed to the joint venture or partnership shall not be shared with the other business.
(4)A person that does business in California, that is not covered by paragraph (1), (2), or (3), and that voluntarily certifies to the California Privacy Protection Agency that it is in compliance with, and agrees to be bound by, this title.
(e)(f)Business purpose means the use of personal information for the business operational purposes, or other notified purposes, or for the service provider or contractors operational purposes, as defined by regulations adopted pursuant to paragraph (11) of subdivision (a) of Section 1798.185, provided that the use of personal information shall be reasonably necessary and proportionate to achieve the purpose for which the personal information was collected or processed or for another purpose that is compatible with the context in which the personal information was collected. Business purposes are:
(1)Auditing related to counting ad impressions to unique visitors, verifying positioning and quality of ad impressions, and auditing compliance with this specification and other standards.
(2)Helping to ensure security and integrity to the extent the use of the consumers personal information is reasonably necessary and proportionate for these purposes.
(3)Debugging to identify and repair errors that impair existing intended functionality.
(4)Short-term, transient use, including, but not limited to, nonpersonalized advertising shown as part of a consumers current interaction with the business, provided that the consumers personal information is not disclosed to another third party and is not used to build a profile about the consumer or otherwise alter the consumers experience outside the current interaction with the business.
(5)Performing services on behalf of the business, including maintaining or servicing accounts, providing customer service, processing or fulfilling orders and transactions, verifying customer information, processing payments, providing financing, providing analytic services, providing storage, or providing similar services on behalf of the business.
(6)Providing advertising and marketing services, except for cross-context behavioral advertising, to the consumer provided that, for the purpose of advertising and marketing, a service provider or contractor shall not combine the personal information of opted-out consumers that the service provider or contractor receives from, or on behalf of, the business with personal information that the service provider or contractor receives from, or on behalf of, another person or persons or collects from its own interaction with consumers.
(7)Undertaking internal research for technological development and demonstration.
(8)Undertaking activities to verify or maintain the quality or safety of a service or device that is owned, manufactured, manufactured for, or controlled by the business, and to improve, upgrade, or enhance the service or device that is owned, manufactured, manufactured for, or controlled by the business.
(f)(g)Collects, collected, or collection means buying, renting, gathering, obtaining, receiving, or accessing any personal information pertaining to a consumer by any means. This includes receiving information from the consumer, either actively or passively, or by observing the consumers behavior.
(g)(h)Commercial purposes means to advance a persons commercial or economic interests, such as by inducing another person to buy, rent, lease, join, subscribe to, provide, or exchange products, goods, property, information, or services, or enabling or effecting, directly or indirectly, a commercial transaction.
(h)(i)Consent means any freely given, specific, informed, and unambiguous indication of the consumers wishes by which the consumer, or the consumers legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement to the processing of personal information relating to the consumer for a narrowly defined particular purpose. Acceptance of a general or broad terms of use, or similar document, that contains descriptions of personal information processing along with other, unrelated information, does not constitute consent. Hovering over, muting, pausing, or closing a given piece of content does not constitute consent. Likewise, agreement obtained through use of dark patterns does not constitute consent.
(i)(j)Consumer means a natural person who is a California resident, as defined in Section 17014 of Title 18 of the California Code of Regulations, as that section read on September 1, 2017, however identified, including by any unique identifier.
(j)(k)(1)Contractor means a person to whom the business makes available a consumers personal information for a business purpose, pursuant to a written contract with the business, provided that the contract:
(A)Prohibits the contractor from:
(i)Selling or sharing the personal information.
(ii)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract, or as otherwise permitted by this title.
(iii)Retaining, using, or disclosing the information outside of the direct business relationship between the contractor and the business.
(iv)Combining the personal information that the contractor receives pursuant to a written contract with the business with personal information that it receives from or on behalf of another person or persons, or collects from its own interaction with the consumer, provided that the contractor may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (e) (f) and in regulations adopted by the California Privacy Protection Agency.
(B)Includes a certification made by the contractor that the contractor understands the restrictions in subparagraph (A) and will comply with them.
(C)Permits, subject to agreement with the contractor, the business to monitor the contractors compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a contractor engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the contractor engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(k)(l)Cross-context behavioral advertising means the targeting of advertising to a consumer based on the consumers personal information obtained from the consumers activity across businesses, distinctly-branded websites, applications, or services, other than the business, distinctly-branded website, application, or service with which the consumer intentionally interacts.
(l)(m)Dark pattern means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decisionmaking, or choice, as further defined by regulation.
(m)(n)Deidentified means information that cannot reasonably be used to infer information about, or otherwise be linked to, a particular consumer provided that the business that possesses the information:
(1)Takes reasonable measures to ensure that the information cannot be associated with a consumer or household.
(2)Publicly commits to maintain and use the information in deidentified form and not to attempt to reidentify the information, except that the business may attempt to reidentify the information solely for the purpose of determining whether its deidentification processes satisfy the requirements of this subdivision.
(3)Contractually obligates any recipients of the information to comply with all provisions of this subdivision.
(n)(o)Designated methods for submitting requests means a mailing address, email address, internet web page, internet web portal, toll-free telephone number, or other applicable contact information, whereby consumers may submit a request or direction under this title, and any new, consumer-friendly means of contacting a business, as approved by the Attorney General pursuant to Section 1798.185.
(p)Developer means a covered business that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.
(o)(q)Device means any physical object that is capable of connecting to the Internet, directly or indirectly, or to another device.
(p)(r)Homepage means the introductory page of an internet website and any internet web page where personal information is collected. In the case of an online service, such as a mobile application, homepage means the applications platform page or download page, a link within the application, such as from the application configuration, About, Information, or settings page, and any other location that allows consumers to review the notices required by this title, including, but not limited to, before downloading the application.
(q)(s)Household means a group, however identified, of consumers who cohabitate with one another at the same residential address and share use of common devices or services.
(r)(t)Infer or inference means the derivation of information, data, assumptions, or conclusions from facts, evidence, or another source of information or data.
(s)(u)Intentionally interacts means when the consumer intends to interact with a person, or disclose personal information to a person, via one or more deliberate interactions, including visiting the persons website or purchasing a good or service from the person. Hovering over, muting, pausing, or closing a given piece of content does not constitute a consumers intent to interact with a person.
(t)(v)Nonpersonalized advertising means advertising and marketing that is based solely on a consumers personal information derived from the consumers current interaction with the business with the exception of the consumers precise geolocation.
(u)(w)Person means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.
(v)(x)(1)Personal information means information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Personal information includes, but is not limited to, the following if it identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular consumer or household:
(A)Identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, drivers license number, passport number, or other similar identifiers.
(B)Any personal information described in subdivision (e) of Section 1798.80.
(C)Characteristics of protected classifications under California or federal law.
(D)Commercial information, including records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies.
(E)Biometric information.
(F)Internet or other electronic network activity information, including, but not limited to, browsing history, search history, and information regarding a consumers interaction with an internet website application, or advertisement.
(G)Geolocation data.
(H)Audio, electronic, visual, thermal, olfactory, or similar information.
(I)Professional or employment-related information.
(J)Education information, defined as information that is not publicly available personally identifiable information as defined in the Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g; 34 C.F.R. Part 99).
(K)Inferences drawn from any of the information identified in this subdivision to create a profile about a consumer reflecting the consumers preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes.
(L)Sensitive personal information.
(2)Personal information does not include publicly available information or lawfully obtained, truthful information that is a matter of public concern. For purposes of this paragraph, publicly available means: information that is lawfully made available from federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public by the consumer or from widely distributed media; or information made available by a person to whom the consumer has disclosed the information if the consumer has not restricted the information to a specific audience. Publicly available does not mean biometric information collected by a business about a consumer without the consumers knowledge.
(3)Personal information does not include consumer information that is deidentified or aggregate consumer information.
(w)(y)Precise geolocation means any data that is derived from a device and that is used or intended to be used to locate a consumer within a geographic area that is equal to or less than the area of a circle with a radius of 1,850 feet, except as prescribed by regulations.
(x)(z)Probabilistic identifier means the identification of a consumer or a consumers device to a degree of certainty of more probable than not based on any categories of personal information included in, or similar to, the categories enumerated in the definition of personal information.
(y)(aa)Processing means any operation or set of operations that are performed on personal information or on sets of personal information, whether or not by automated means.
(z)(ab)Profiling means any form of automated processing of personal information, as further defined by regulations pursuant to paragraph (16) of subdivision (a) of Section 1798.185, to evaluate certain personal aspects relating to a natural person and in particular to analyze or predict aspects concerning that natural persons performance at work, economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.
(aa)(ac)Pseudonymize or Pseudonymization means the processing of personal information in a manner that renders the personal information no longer attributable to a specific consumer without the use of additional information, provided that the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal information is not attributed to an identified or identifiable consumer.
(ab)(ad)Research means scientific analysis, systematic study, and observation, including basic research or applied research that is designed to develop or contribute to public or scientific knowledge and that adheres or otherwise conforms to all other applicable ethics and privacy laws, including, but not limited to, studies conducted in the public interest in the area of public health. Research with personal information that may have been collected from a consumer in the course of the consumers interactions with a business service or device for other purposes shall be:
(1)Compatible with the business purpose for which the personal information was collected.
(2)Subsequently pseudonymized and deidentified, or deidentified and in the aggregate, such that the information cannot reasonably identify, relate to, describe, be capable of being associated with, or be linked, directly or indirectly, to a particular consumer, by a business.
(3)Made subject to technical safeguards that prohibit reidentification of the consumer to whom the information may pertain, other than as needed to support the research.
(4)Subject to business processes that specifically prohibit reidentification of the information, other than as needed to support the research.
(5)Made subject to business processes to prevent inadvertent release of deidentified information.
(6)Protected from any reidentification attempts.
(7)Used solely for research purposes that are compatible with the context in which the personal information was collected.
(8)Subjected by the business conducting the research to additional security controls that limit access to the research data to only those individuals as are necessary to carry out the research purpose.
(ac)(ae)Security and integrity means the ability of:
(1)Networks or information systems to detect security incidents that compromise the availability, authenticity, integrity, and confidentiality of stored or transmitted personal information.
(2)Businesses to detect security incidents, resist malicious, deceptive, fraudulent, or illegal actions and to help prosecute those responsible for those actions.
(3)Businesses to ensure the physical safety of natural persons.
(ad)(af)(1)Sell, selling, sale, or sold, means selling, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for monetary or other valuable consideration.
(2)For purposes of this title, a business does not sell personal information when:
(A)A consumer uses or directs the business to intentionally:
(i)Disclose personal information.
(ii)Interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sale of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(ae)(ag)Sensitive personal information means:
(1)Personal information that reveals:
(A)A consumers social security, drivers license, state identification card, or passport number.
(B)A consumers account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.
(C)A consumers precise geolocation.
(D)A consumers racial or ethnic origin, citizenship or immigration status, religious or philosophical beliefs, or union membership.
(E)The contents of a consumers mail, email, and text messages unless the business is the intended recipient of the communication.
(F)A consumers genetic data.
(2)(A)The processing of biometric information for the purpose of uniquely identifying a consumer.
(B)Personal information collected and analyzed concerning a consumers health.
(C)Personal information collected and analyzed concerning a consumers sex life or sexual orientation.
(3)Sensitive personal information that is publicly available pursuant to paragraph (2) of subdivision (v) (x) shall not be considered sensitive personal information or personal information.
(af)(ah)Service or services means work, labor, and services, including services furnished in connection with the sale or repair of goods.
(ag)(ai)(1)Service provider means a person that processes personal information on behalf of a business and that receives from or on behalf of the business consumers personal information for a business purpose pursuant to a written contract, provided that the contract prohibits the person from:
(A)Selling or sharing the personal information.
(B)Retaining, using, or disclosing the personal information for any purpose other than for the business purposes specified in the contract for the business, including retaining, using, or disclosing the personal information for a commercial purpose other than the business purposes specified in the contract with the business, or as otherwise permitted by this title.
(C)Retaining, using, or disclosing the information outside of the direct business relationship between the service provider and the business.
(D)Combining the personal information that the service provider receives from, or on behalf of, the business with personal information that it receives from, or on behalf of, another person or persons, or collects from its own interaction with the consumer, provided that the service provider may combine personal information to perform any business purpose as defined in regulations adopted pursuant to paragraph (10) of subdivision (a) of Section 1798.185, except as provided for in paragraph (6) of subdivision (e) (f) of this section and in regulations adopted by the California Privacy Protection Agency. The contract may, subject to agreement with the service provider, permit the business to monitor the service providers compliance with the contract through measures, including, but not limited to, ongoing manual reviews and automated scans and regular assessments, audits, or other technical and operational testing at least once every 12 months.
(2)If a service provider engages any other person to assist it in processing personal information for a business purpose on behalf of the business, or if any other person engaged by the service provider engages another person to assist in processing personal information for that business purpose, it shall notify the business of that engagement, and the engagement shall be pursuant to a written contract binding the other person to observe all the requirements set forth in paragraph (1).
(ah)(aj)(1)Share, shared, or sharing means sharing, renting, releasing, disclosing, disseminating, making available, transferring, or otherwise communicating orally, in writing, or by electronic or other means, a consumers personal information by the business to a third party for cross-context behavioral advertising, whether or not for monetary or other valuable consideration, including transactions between a business and a third party for cross-context behavioral advertising for the benefit of a business in which no money is exchanged.
(2)For purposes of this title, a business does not share personal information when:
(A)A consumer uses or directs the business to intentionally disclose personal information or intentionally interact with one or more third parties.
(B)The business uses or shares an identifier for a consumer who has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information for the purposes of alerting persons that the consumer has opted out of the sharing of the consumers personal information or limited the use of the consumers sensitive personal information.
(C)The business transfers to a third party the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided that information is used or shared consistently with this title. If a third party materially alters how it uses or shares the personal information of a consumer in a manner that is materially inconsistent with the promises made at the time of collection, it shall provide prior notice of the new or changed practice to the consumer. The notice shall be sufficiently prominent and robust to ensure that existing consumers can easily exercise their choices consistently with this title. This subparagraph does not authorize a business to make material, retroactive privacy policy changes or make other changes in their privacy policy in a manner that would violate the Unfair and Deceptive Practices Act (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
(ai)(ak)Third party means a person who is not any of the following:
(1)The business with whom the consumer intentionally interacts and that collects personal information from the consumer as part of the consumers current interaction with the business under this title.
(2)A service provider to the business.
(3)A contractor.
(al)Train means exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
(aj)(am)Unique identifier or unique personal identifier means a persistent identifier that can be used to recognize a consumer, a family, or a device that is linked to a consumer or family, over time and across different services, including, but not limited to, a device identifier; an Internet Protocol address; cookies, beacons, pixel tags, mobile ad identifiers, or similar technology; customer number, unique pseudonym, or user alias; telephone numbers, or other forms of persistent or probabilistic identifiers that can be used to identify a particular consumer or device that is linked to a consumer or family. For purposes of this subdivision, family means a custodial parent or guardian and any children under 18 years of age over which the parent or guardian has custody.
(ak)(an)Verifiable consumer request means a request that is made by a consumer, by a consumer on behalf of the consumers minor child, by a natural person or a person registered with the Secretary of State, authorized by the consumer to act on the consumers behalf, or by a person who has power of attorney or is acting as a conservator for the consumer, and that the business can verify, using commercially reasonable methods, pursuant to regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185 to be the consumer about whom the business has collected personal information. A business is not obligated to provide information to the consumer pursuant to Sections 1798.110 and 1798.115, to delete personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, if the business cannot verify, pursuant to this subdivision and regulations adopted by the Attorney General pursuant to paragraph (7) of subdivision (a) of Section 1798.185, that the consumer making the request is the consumer about whom the business has collected information or is a person authorized by the consumer to act on such consumers behalf.
SEC. 5.Section 1798.145 of the Civil Code is amended to read:1798.145.Exemptions
(a)(1)The obligations imposed on businesses by this title shall not restrict a businesss ability to:
(A)Comply with federal, state, or local laws or comply with a court order or subpoena to provide information.
(B)Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, or local authorities. Law enforcement agencies, including police and sheriffs departments, may direct a business pursuant to a law enforcement agency-approved investigation with an active case number not to delete a consumers personal information, and, upon receipt of that direction, a business shall not delete the personal information for 90 days in order to allow the law enforcement agency to obtain a court-issued subpoena, order, or warrant to obtain a consumers personal information. For good cause and only to the extent necessary for investigatory purposes, a law enforcement agency may direct a business not to delete the consumers personal information for additional 90-day periods. A business that has received direction from a law enforcement agency not to delete the personal information of a consumer who has requested deletion of the consumers personal information shall not use the consumers personal information for any purpose other than retaining it to produce to law enforcement in response to a court-issued subpoena, order, or warrant unless the consumers deletion request is subject to an exemption from deletion under this title.
(C)Cooperate with law enforcement agencies concerning conduct or activity that the business, service provider, or third party reasonably and in good faith believes may violate federal, state, or local law.
(D)(i)Cooperate with a government agency request for emergency access to a consumers personal information if a natural person is at risk or danger of death or serious physical injury provided that:
(I)The request is approved by a high-ranking agency officer for emergency access to a consumers personal information.
(II)The request is based on the agencys good faith determination that it has a lawful basis to access the information on a nonemergency basis.
(III)The agency agrees to petition a court for an appropriate order within three days and to destroy the information if that order is not granted.
(ii)For purposes of this subparagraph, a consumer accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services, shall not constitute a natural person being at risk or danger of death or serious physical injury.
(E)Exercise or defend legal claims.
(F)Collect, use, retain, sell, share, or disclose consumers personal information that is deidentified or aggregate consumer information.
(G)Collect, sell, or share a consumers personal information if every aspect of that commercial conduct takes place wholly outside of California. For purposes of this title, commercial conduct takes place wholly outside of California if the business collected that information while the consumer was outside of California, no part of the sale of the consumers personal information occurred in California, and no personal information collected while the consumer was in California is sold. This paragraph shall not prohibit a business from storing, including on a device, personal information about a consumer when the consumer is in California and then collecting that personal information when the consumer and stored personal information is outside of California.
(2)(A)This subdivision shall not apply if the consumers personal information contains information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including, but not limited to, abortion services.
(B)This paragraph does not alter the use of aggregated or deidentified personal information consistent with a business purpose as defined in paragraphs (1), (2), (3), (4), (5), (7), or (8) of subdivision (e) (f) of Section 1798.140, provided that the personal information is only retained in aggregated and deidentified form and is not sold or shared.
(C)This paragraph does not alter the duty of a business to preserve or retain evidence pursuant to California or federal law in an ongoing civil proceeding.
(b)The obligations imposed on businesses by Sections 1798.110, 1798.115, 1798.120, 1798.121, 1798.130, and 1798.135 shall not apply where compliance by the business with the title would violate an evidentiary privilege under California law and shall not prevent a business from providing the personal information of a consumer to a person covered by an evidentiary privilege under California law as part of a privileged communication.
(c)(1)This title shall not apply to any of the following:
(A)Medical information governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or protected health information that is collected by a covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the Health Information Technology for Economic and Clinical Health Act (Public Law 111-5).
(B)A provider of health care governed by the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1) or a covered entity governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, Parts 160 and 164 of Title 45 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191), to the extent the provider or covered entity maintains patient information in the same manner as medical information or protected health information as described in subparagraph (A) of this section.
(C)Personal information collected as part of a clinical trial or other biomedical research study subject to, or conducted in accordance with, the Federal Policy for the Protection of Human Subjects, also known as the Common Rule, pursuant to good clinical practice guidelines issued by the International Council for Harmonisation or pursuant to human subject protection requirements of the United States Food and Drug Administration, provided that the information is not sold or shared in a manner not permitted by this subparagraph, and, if it is inconsistent, that participants be informed of that use and provide consent.
(2)For purposes of this subdivision, the definitions of medical information and provider of health care in Section 56.05 shall apply and the definitions of business associate, covered entity, and protected health information in Section 160.103 of Title 45 of the Code of Federal Regulations shall apply.
(d)(1)This title shall not apply to an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumers creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in subdivision (f) of Section 1681a of Title 15 of the United States Code, by a furnisher of information, as set forth in Section 1681s-2 of Title 15 of the United States Code, who provides information for use in a consumer report, as defined in subdivision (d) of Section 1681a of Title 15 of the United States Code, and by a user of a consumer report as set forth in Section 1681b of Title 15 of the United States Code.
(2)Paragraph (1) shall apply only to the extent that such activity involving the collection, maintenance, disclosure, sale, communication, or use of such information by that agency, furnisher, or user is subject to regulation under the Fair Credit Reporting Act, Section 1681 et seq., Title 15 of the United States Code and the information is not collected, maintained, used, communicated, disclosed, or sold except as authorized by the Fair Credit Reporting Act.
(3)This subdivision shall not apply to Section 1798.150.
(e)This title shall not apply to personal information collected, processed, sold, or disclosed subject to the federal Gramm-Leach-Bliley Act (Public Law 106-102), and implementing regulations, or the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050) of the Financial Code), or the federal Farm Credit Act of 1971 (as amended in 12 U.S.C. 2001-2279cc and implementing regulations, 12 C.F.R. 600, et seq.). This subdivision shall not apply to Section 1798.150.
(f)This title shall not apply to personal information collected, processed, sold, or disclosed pursuant to the Drivers Privacy Protection Act of 1994 (18 U.S.C. Sec. 2721 et seq.). This subdivision shall not apply to Section 1798.150.
(g)(1)Section 1798.120 shall not apply to vehicle information or ownership information retained or shared between a new motor vehicle dealer, as defined in Section 426 of the Vehicle Code, and the vehicles manufacturer, as defined in Section 672 of the Vehicle Code, if the vehicle information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vehicle repair covered by a vehicle warranty or a recall conducted pursuant to Sections 30118 to 30120, inclusive, of Title 49 of the United States Code, provided that the new motor vehicle dealer or vehicle manufacturer with which that vehicle information or ownership information is shared does not sell, share, or use that information for any other purpose.
(2)Section 1798.120 shall not apply to vessel information or ownership information retained or shared between a vessel dealer and the vessels manufacturer, as defined in Section 651 of the Harbors and Navigation Code, if the vessel information or ownership information is shared for the purpose of effectuating, or in anticipation of effectuating, a vessel repair covered by a vessel warranty or a recall conducted pursuant to Section 4310 of Title 46 of the United States Code, provided that the vessel dealer or vessel manufacturer with which that vessel information or ownership information is shared does not sell, share, or use that information for any other purpose.
(3)For purposes of this subdivision:
(A)Ownership information means the name or names of the registered owner or owners and the contact information for the owner or owners.
(B)Vehicle information means the vehicle information number, make, model, year, and odometer reading.
(C)Vessel dealer means a person who is engaged, wholly or in part, in the business of selling or offering for sale, buying or taking in trade for the purpose of resale, or exchanging, any vessel or vessels, as defined in Section 651 of the Harbors and Navigation Code, and receives or expects to receive money, profit, or any other thing of value.
(D)Vessel information means the hull identification number, model, year, month and year of production, and information describing any of the following equipment as shipped, transferred, or sold from the place of manufacture, including all attached parts and accessories:
(i)An inboard engine.
(ii)An outboard engine.
(iii)A stern drive unit.
(iv)An inflatable personal floatation device approved under Section 160.076 of Title 46 of the Code of Federal Regulations.
(h)Notwithstanding a businesss obligations to respond to and honor consumer rights requests pursuant to this title:
(1)A time period for a business to respond to a consumer for any verifiable consumer request may be extended by up to a total of 90 days where necessary, taking into account the complexity and number of the requests. The business shall inform the consumer of any such extension within 45 days of receipt of the request, together with the reasons for the delay.
(2)If the business does not take action on the request of the consumer, the business shall inform the consumer, without delay and at the latest within the time period permitted of response by this section, of the reasons for not taking action and any rights the consumer may have to appeal the decision to the business.
(3)If requests from a consumer are manifestly unfounded or excessive, in particular because of their repetitive character, a business may either charge a reasonable fee, taking into account the administrative costs of providing the information or communication or taking the action requested, or refuse to act on the request and notify the consumer of the reason for refusing the request. The business shall bear the burden of demonstrating that any verifiable consumer request is manifestly unfounded or excessive.
(i)(1)A business that discloses personal information to a service provider or contractor in compliance with this title shall not be liable under this title if the service provider or contractor receiving the personal information uses it in violation of the restrictions set forth in the title, provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the service provider or contractor intends to commit such a violation. A service provider or contractor shall likewise not be liable under this title for the obligations of a business for which it provides services as set forth in this title provided that the service provider or contractor shall be liable for its own violations of this title.
(2)A business that discloses personal information of a consumer, with the exception of consumers who have exercised their right to opt out of the sale or sharing of their personal information, consumers who have limited the use or disclosure of their sensitive personal information, and minor consumers who have not opted in to the collection or sale of their personal information, to a third party pursuant to a written contract that requires the third party to provide the same level of protection of the consumers rights under this title as provided by the business shall not be liable under this title if the third party receiving the personal information uses it in violation of the restrictions set forth in this title provided that, at the time of disclosing the personal information, the business does not have actual knowledge, or reason to believe, that the third party intends to commit such a violation.
(j)This title shall not be construed to require a business, service provider, or contractor to:
(1)Reidentify or otherwise link information that, in the ordinary course of business, is not maintained in a manner that would be considered personal information.
(2)Retain any personal information about a consumer if, in the ordinary course of business, that information about the consumer would not be retained.
(3)Maintain information in identifiable, linkable, or associable form, or collect, obtain, retain, or access any data or technology, in order to be capable of linking or associating a verifiable consumer request with personal information.
(k)The rights afforded to consumers and the obligations imposed on the business in this title shall not adversely affect the rights and freedoms of other natural persons. A verifiable consumer request for specific pieces of personal information pursuant to Section 1798.110, to delete a consumers personal information pursuant to Section 1798.105, or to correct inaccurate personal information pursuant to Section 1798.106, shall not extend to personal information about the consumer that belongs to, or the business maintains on behalf of, another natural person. A business may rely on representations made in a verifiable consumer request as to rights with respect to personal information and is under no legal requirement to seek out other persons that may have or claim to have rights to personal information, and a business is under no legal obligation under this title or any other provision of law to take any action under this title in the event of a dispute between or among persons claiming rights to personal information in the businesss possession.
(l)The rights afforded to consumers and the obligations imposed on any business under this title shall not apply to the extent that they infringe on the noncommercial activities of a person or entity described in subdivision (b) of Section 2 of Article I of the California Constitution.
(m)(1)This title shall not apply to any of the following:
(A)Personal information that is collected by a business about a natural person in the course of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the natural persons personal information is collected and used by the business solely within the context of the natural persons role or former role as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or an independent contractor of, that business.
(B)Personal information that is collected by a business that is emergency contact information of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of having an emergency contact on file.
(C)Personal information that is necessary for the business to retain to administer benefits for another natural person relating to the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or independent contractor of, that business to the extent that the personal information is collected and used solely within the context of administering those benefits.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Medical staff member means a licensed physician and surgeon, dentist, or podiatrist, licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code and a clinical psychologist as defined in Section 1316.5 of the Health and Safety Code.
(D)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(E)Owner means a natural person who meets one of the following criteria:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall not apply to subdivision (a) of Section 1798.100 or Section 1798.150.
(4)This subdivision shall become inoperative on January 1, 2023.
(n)(1)The obligations imposed on businesses by Sections 1798.100, 1798.105, 1798.106, 1798.110, 1798.115, 1798.121, 1798.130, and 1798.135 shall not apply to personal information reflecting a written or verbal communication or a transaction between the business and the consumer, where the consumer is a natural person who acted or is acting as an employee, owner, director, officer, or independent contractor of a company, partnership, sole proprietorship, nonprofit, or government agency and whose communications or transaction with the business occur solely within the context of the business conducting due diligence regarding, or providing or receiving a product or service to or from such company, partnership, sole proprietorship, nonprofit, or government agency.
(2)For purposes of this subdivision:
(A)Independent contractor means a natural person who provides any service to a business pursuant to a written contract.
(B)Director means a natural person designated in the articles of incorporation as such or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(C)Officer means a natural person elected or appointed by the board of directors to manage the daily operations of a corporation, such as a chief executive officer, president, secretary, or treasurer.
(D)Owner means a natural person who meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(3)This subdivision shall become inoperative on January 1, 2023.
(o)(1)Sections 1798.105 and 1798.120 shall not apply to a commercial credit reporting agencys collection, processing, sale, or disclosure of business controller information to the extent the commercial credit reporting agency uses the business controller information solely to identify the relationship of a consumer to a business that the consumer owns or contact the consumer only in the consumers role as the owner, director, officer, or management employee of the business.
(2)For the purposes of this subdivision:
(A)Business controller information means the name or names of the owner or owners, director, officer, or management employee of a business and the contact information, including a business title, for the owner or owners, director, officer, or management employee.
(B)Commercial credit reporting agency has the meaning set forth in subdivision (b) of Section 1785.42.
(C)Owner means a natural person that meets one of the following:
(i)Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a business.
(ii)Has control in any manner over the election of a majority of the directors or of individuals exercising similar functions.
(iii)Has the power to exercise a controlling influence over the management of a company.
(D)Director means a natural person designated in the articles of incorporation of a business as director, or elected by the incorporators and natural persons designated, elected, or appointed by any other name or title to act as directors, and their successors.
(E)Officer means a natural person elected or appointed by the board of directors of a business to manage the daily operations of a corporation, including a chief executive officer, president, secretary, or treasurer.
(F)Management employee means a natural person whose name and contact information is reported to or collected by a commercial credit reporting agency as the primary manager of a business and used solely within the context of the natural persons role as the primary manager of the business.
(p)The obligations imposed on businesses in Sections 1798.105, 1798.106, 1798.110, and 1798.115 shall not apply to household data.
(q)(1)This title does not require a business to comply with a verifiable consumer request to delete a consumers personal information under Section 1798.105 to the extent the verifiable consumer request applies to a students grades, educational scores, or educational test results that the business holds on behalf of a local educational agency, as defined in subdivision (d) of Section 49073.1 of the Education Code, at which the student is currently enrolled. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(2)This title does not require, in response to a request pursuant to Section 1798.110, that a business disclose on educational standardized assessment or educational assessment or a consumers specific responses to the educational standardized assessment or educational assessment if consumer access, possession, or control would jeopardize the validity and reliability of that educational standardized assessment or educational assessment. If a business does not comply with a request pursuant to this section, it shall notify the consumer that it is acting pursuant to this exception.
(3)For purposes of this subdivision:
(A)Educational standardized assessment or educational assessment means a standardized or nonstandardized quiz, test, or other assessment used to evaluate students in or for entry to kindergarten and grades 1 to 12, inclusive, schools, postsecondary institutions, vocational programs, and postgraduate programs that are accredited by an accrediting agency or organization recognized by the State of California or the United States Department of Education, as well as certification and licensure examinations used to determine competency and eligibility to receive certification or licensure from a government agency or government certification body.
(B)Jeopardize the validity and reliability of that educational standardized assessment or educational assessment means releasing information that would provide an advantage to the consumer who has submitted a verifiable consumer request or to another natural person.
(r)Sections 1798.105 and 1798.120 shall not apply to a businesss use, disclosure, or sale of particular pieces of a consumers personal information if the consumer has consented to the businesss use, disclosure, or sale of that information to produce a physical item, including a school yearbook containing the consumers photograph if:
(1)The business has incurred significant expense in reliance on the consumers consent.
(2)Compliance with the consumers request to opt out of the sale of the consumers personal information or to delete the consumers personal information would not be commercially reasonable.
(3)The business complies with the consumers request as soon as it is commercially reasonable to do so.
SEC. 6.Section 1798.185 of the Civil Code is amended to read:1798.185.Regulations
(a)On or before July 1, 2020, the Attorney General shall solicit broad public participation and adopt regulations to further the purposes of this title, including, but not limited to, the following areas:
(1)Updating or adding categories of personal information to those enumerated in subdivision (c) of Section 1798.130 and subdivision (v) (x) of Section 1798.140, and updating or adding categories of sensitive personal information to those enumerated in subdivision (ae) (ag) of Section 1798.140 in order to address changes in technology, data collection practices, obstacles to implementation, and privacy concerns.
(2)Updating as needed the definitions of deidentified and unique identifier to address changes in technology, data collection, obstacles to implementation, and privacy concerns, and adding, modifying, or deleting categories to the definition of designated methods for submitting requests to facilitate a consumers ability to obtain information from a business pursuant to Section 1798.130. The authority to update the definition of deidentified shall not apply to deidentification standards set forth in Section 164.514 of Title 45 of the Code of Federal Regulations, where such information previously was protected health information as defined in Section 160.103 of Title 45 of the Code of Federal Regulations.
(3)Establishing any exceptions necessary to comply with state or federal law, including, but not limited to, those relating to trade secrets and intellectual property rights, within one year of passage of this title and as needed thereafter, with the intention that trade secrets should not be disclosed in response to a verifiable consumer request.
(4)Establishing rules and procedures for the following:
(A)To facilitate and govern the submission of a request by a consumer to opt out of the sale or sharing of personal information pursuant to Section 1798.120 and to limit the use of a consumers sensitive personal information pursuant to Section 1798.121 to ensure that consumers have the ability to exercise their choices without undue burden and to prevent business from engaging in deceptive or harassing conduct, including in retaliation against consumers for exercising their rights, while allowing businesses to inform consumers of the consequences of their decision to opt out of the sale or sharing of their personal information or to limit the use of their sensitive personal information.
(B)To govern business compliance with a consumers opt-out request.
(C)For the development and use of a recognizable and uniform opt-out logo or button by all businesses to promote consumer awareness of the opportunity to opt out of the sale of personal information.
(5)Adjusting the monetary thresholds, in January of every odd-numbered year to reflect any increase in the Consumer Price Index, in: subparagraph (A) of paragraph (1) of subdivision (d) (e) of Section 1798.140; subparagraph (A) of paragraph (1) of subdivision (a) of Section 1798.150; subdivision (a) of Section 1798.155; Section 1798.199.25; and subdivision (a) of Section 1798.199.90.
(6)Establishing rules, procedures, and any exceptions necessary to ensure that the notices and information that businesses are required to provide pursuant to this title are provided in a manner that may be easily understood by the average consumer, are accessible to consumers with disabilities, and are available in the language primarily used to interact with the consumer, including establishing rules and guidelines regarding financial incentives within one year of passage of this title and as needed thereafter.
(7)Establishing rules and procedures to further the purposes of Sections 1798.105, 1798.106, 1798.110, and 1798.115 and to facilitate a consumers or the consumers authorized agents ability to delete personal information, correct inaccurate personal information pursuant to Section 1798.106, or obtain information pursuant to Section 1798.130, with the goal of minimizing the administrative burden on consumers, taking into account available technology, security concerns, and the burden on the business, to govern a businesss determination that a request for information received from a consumer is a verifiable consumer request, including treating a request submitted through a password-protected account maintained by the consumer with the business while the consumer is logged into the account as a verifiable consumer request and providing a mechanism for a consumer who does not maintain an account with the business to request information through the businesss authentication of the consumers identity, within one year of passage of this title and as needed thereafter.
(8)Establishing how often, and under what circumstances, a consumer may request a correction pursuant to Section 1798.106, including standards governing the following:
(A)How a business responds to a request for correction, including exceptions for requests to which a response is impossible or would involve disproportionate effort, and requests for correction of accurate information.
(B)How concerns regarding the accuracy of the information may be resolved.
(C)The steps a business may take to prevent fraud.
(D)If a business rejects a request to correct personal information collected and analyzed concerning a consumers health, the right of a consumer to provide a written addendum to the business with respect to any item or statement regarding any such personal information that the consumer believes to be incomplete or incorrect. The addendum shall be limited to 250 words per alleged incomplete or incorrect item and shall clearly indicate in writing that the consumer requests the addendum to be made a part of the consumers record.
(9)Establishing the standard to govern a businesss determination, pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 1798.130, that providing information beyond the 12-month period in a response to a verifiable consumer request is impossible or would involve a disproportionate effort.
(10)Issuing regulations further defining and adding to the business purposes, including other notified purposes, for which businesses, service providers, and contractors may use consumers personal information consistent with consumers expectations, and further defining the business purposes for which service providers and contractors may combine consumers personal information obtained from different sources, except as provided for in paragraph (6) of subdivision (e) (f) of Section 1798.140.
(11)Issuing regulations identifying those business purposes, including other notified purposes, for which service providers and contractors may use consumers personal information received pursuant to a written contract with a business, for the service provider or contractors own business purposes, with the goal of maximizing consumer privacy.
(12)Issuing regulations to further define intentionally interacts, with the goal of maximizing consumer privacy.
(13)Issuing regulations to further define precise geolocation, including if the size defined is not sufficient to protect consumer privacy in sparsely populated areas or when the personal information is used for normal operational purposes, including billing.
(14)Issuing regulations to define the term specific pieces of information obtained from the consumer with the goal of maximizing a consumers right to access relevant personal information while minimizing the delivery of information to a consumer that would not be useful to the consumer, including system log information and other technical data. For delivery of the most sensitive personal information, the regulations may require a higher standard of authentication provided that the agency shall monitor the impact of the higher standard on the right of consumers to obtain their personal information to ensure that the requirements of verification do not result in the unreasonable denial of verifiable consumer requests.
(15)Issuing regulations requiring businesses whose processing of consumers personal information presents significant risk to consumers privacy or security, to:
(A)Perform a cybersecurity audit on an annual basis, including defining the scope of the audit and establishing a process to ensure that audits are thorough and independent. The factors to be considered in determining when processing may result in significant risk to the security of personal information shall include the size and complexity of the business and the nature and scope of processing activities.
(B)Submit to the California Privacy Protection Agency on a regular basis a risk assessment with respect to their processing of personal information, including whether the processing involves sensitive personal information, and identifying and weighing the benefits resulting from the processing to the business, the consumer, other stakeholders, and the public, against the potential risks to the rights of the consumer associated with that processing, with the goal of restricting or prohibiting the processing if the risks to privacy of the consumer outweigh the benefits resulting from processing to the consumer, the business, other stakeholders, and the public. Nothing in this section shall require a business to divulge trade secrets.
(16)Issuing regulations governing access and opt-out rights with respect to businesses use of automated decisionmaking technology, including profiling and requiring businesses response to access requests to include meaningful information about the logic involved in those decisionmaking processes, as well as a description of the likely outcome of the process with respect to the consumer.
(17)Issuing regulations to further define a law enforcement agency-approved investigation for purposes of the exception in subparagraph (B) of paragraph (1) of subdivision (a) of Section 1798.145.
(18)Issuing regulations to define the scope and process for the exercise of the agencys audit authority, to establish criteria for selection of persons to audit, and to protect consumers personal information from disclosure to an auditor in the absence of a court order, warrant, or subpoena.
(19)(A)Issuing regulations to define the requirements and technical specifications for an opt-out preference signal sent by a platform, technology, or mechanism, to indicate a consumers intent to opt out of the sale or sharing of the consumers personal information and to limit the use or disclosure of the consumers sensitive personal information. The requirements and specifications for the opt-out preference signal should be updated from time to time to reflect the means by which consumers interact with businesses, and should:
(i)Ensure that the manufacturer of a platform or browser or device that sends the opt-out preference signal cannot unfairly disadvantage another business.
(ii)Ensure that the opt-out preference signal is consumer-friendly, clearly described, and easy to use by an average consumer and does not require that the consumer provide additional information beyond what is necessary.
(iii)Clearly represent a consumers intent and be free of defaults constraining or presupposing that intent.
(iv)Ensure that the opt-out preference signal does not conflict with other commonly used privacy settings or tools that consumers may employ.
(v)Provide a mechanism for the consumer to selectively consent to a businesss sale of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, without affecting the consumers preferences with respect to other businesses or disabling the opt-out preference signal globally.
(vi)State that in the case of a page or setting view that the consumer accesses to set the opt-out preference signal, the consumer should see up to three choices, including:
(I)Global opt out from sale and sharing of personal information, including a direction to limit the use of sensitive personal information.
(II)Choice to Limit the Use of My Sensitive Personal Information.
(III)Choice titled Do Not Sell/Do Not Share My Personal Information for Cross-Context Behavioral Advertising.
(B)Issuing regulations to establish technical specifications for an opt-out preference signal that allows the consumer, or the consumers parent or guardian, to specify that the consumer is less than 13 years of age or at least 13 years of age and less than 16 years of age.
(C)Issuing regulations, with the goal of strengthening consumer privacy while considering the legitimate operational interests of businesses, to govern the use or disclosure of a consumers sensitive personal information, notwithstanding the consumers direction to limit the use or disclosure of the consumers sensitive personal information, including:
(i)Determining any additional purposes for which a business may use or disclose a consumers sensitive personal information.
(ii)Determining the scope of activities permitted under paragraph (8) of subdivision (e) (f) of Section 1798.140, as authorized by subdivision (a) of Section 1798.121, to ensure that the activities do not involve health-related research.
(iii)Ensuring the functionality of the businesss operations.
(iv)Ensuring that the exemption in subdivision (d) of Section 1798.121 for sensitive personal information applies to information that is collected or processed incidentally, or without the purpose of inferring characteristics about a consumer, while ensuring that businesses do not use the exemption for the purpose of evading consumers rights to limit the use and disclosure of their sensitive personal information under Section 1798.121.
(20)Issuing regulations to govern how a business that has elected to comply with subdivision (b) of Section 1798.135 responds to the opt-out preference signal and provides consumers with the opportunity subsequently to consent to the sale or sharing of their personal information or the use and disclosure of their sensitive personal information for purposes in addition to those authorized by subdivision (a) of Section 1798.121. The regulations should:
(A)Strive to promote competition and consumer choice and be technology neutral.
(B)Ensure that the business does not respond to an opt-out preference signal by:
(i)Intentionally degrading the functionality of the consumer experience.
(ii)Charging the consumer a fee in response to the consumers opt-out preferences.
(iii)Making any products or services not function properly or fully for the consumer, as compared to consumers who do not use the opt-out preference signal.
(iv)Attempting to coerce the consumer to opt in to the sale or sharing of the consumers personal information, or the use or disclosure of the consumers sensitive personal information, by stating or implying that the use of the opt-out preference signal will adversely affect the consumer as compared to consumers who do not use the opt-out preference signal, including stating or implying that the consumer will not be able to use the businesss products or services or that those products or services may not function properly or fully.
(v)Displaying any notification or pop-up in response to the consumers opt-out preference signal.
(C)Ensure that any link to a web page or its supporting content that allows the consumer to consent to opt in:
(i)Is not part of a popup, notice, banner, or other intrusive design that obscures any part of the web page the consumer intended to visit from full view or that interferes with or impedes in any way the consumers experience visiting or browsing the web page or website the consumer intended to visit.
(ii)Does not require or imply that the consumer must click the link to receive full functionality of any products or services, including the website.
(iii)Does not make use of any dark patterns.
(iv)Applies only to the business with which the consumer intends to interact.
(D)Strive to curb coercive or deceptive practices in response to an opt-out preference signal but should not unduly restrict businesses that are trying in good faith to comply with Section 1798.135.
(21)Review existing Insurance Code provisions and regulations relating to consumer privacy, except those relating to insurance rates or pricing, to determine whether any provisions of the Insurance Code provide greater protection to consumers than the provisions of this title. Upon completing its review, the agency shall adopt a regulation that applies only the more protective provisions of this title to insurance companies. For the purpose of clarity, the Insurance Commissioner shall have jurisdiction over insurance rates and pricing.
(22)Harmonizing the regulations governing opt-out mechanisms, notices to consumers, and other operational mechanisms in this title to promote clarity and the functionality of this title for consumers.
(b)The Attorney General may adopt additional regulations as necessary to further the purposes of this title.
(c)The Attorney General shall not bring an enforcement action under this title until six months after the publication of the final regulations issued pursuant to this section or July 1, 2020, whichever is sooner.
(d)Notwithstanding subdivision (a), the timeline for adopting final regulations required by the act adding this subdivision shall be July 1, 2022. Beginning the later of July 1, 2021, or six months after the agency provides notice to the Attorney General that it is prepared to begin rulemaking under this title, the authority assigned to the Attorney General to adopt regulations under this section shall be exercised by the California Privacy Protection Agency. Notwithstanding any other law, civil and administrative enforcement of the provisions of law added or amended by this act shall not commence until July 1, 2023, and shall only apply to violations occurring on or after that date. Enforcement of provisions of law contained in the California Consumer Privacy Act of 2018 amended by this act shall remain in effect and shall be enforceable until the same provisions of this act become enforceable.
SEC. 7.Section 1798.199.40 of the Civil Code is amended to read:1798.199.40.The agency shall perform the following functions:
(a)Administer, implement, and enforce through administrative actions this title.
(b)On and after the later of July 1, 2021, or within six months of the agency providing the Attorney General with notice that it is prepared to assume rulemaking responsibilities under this title, adopt, amend, and rescind regulations pursuant to Section 1798.185 to carry out the purposes and provisions of the California Consumer Privacy Act of 2018, including regulations specifying recordkeeping requirements for businesses to ensure compliance with this title.
(c)Through the implementation of this title, protect the fundamental privacy rights of natural persons with respect to the use of their personal information.
(d)Promote public awareness and understanding of the risks, rules, responsibilities, safeguards, and rights in relation to the collection, use, sale, and disclosure of personal information, including the rights of minors with respect to their own information, and provide a public report summarizing the risk assessments filed with the agency pursuant to paragraph (15) of subdivision (a) of Section 1798.185 while ensuring that data security is not compromised.
(e)Provide guidance to consumers regarding their rights under this title.
(f)Provide guidance to businesses regarding their duties and responsibilities under this title and appoint a Chief Privacy Auditor to conduct audits of businesses to ensure compliance with this title pursuant to regulations adopted pursuant to paragraph (18) of subdivision (a) of Section 1798.185.
(g)Provide technical assistance and advice to the Legislature, upon request, with respect to privacy-related legislation.
(h)Monitor relevant developments relating to the protection of personal information and, in particular, the development of information and communication technologies and commercial practices.
(i)Cooperate with other agencies with jurisdiction over privacy laws and with data processing authorities in California, other states, territories, and countries to ensure consistent application of privacy protections.
(j)Establish a mechanism pursuant to which persons doing business in California that do not meet the definition of business set forth in paragraph (1), (2), or (3) of subdivision (d) (e) of Section 1798.140 may voluntarily certify that they are in compliance with this title, as set forth in paragraph (4) of subdivision (d) (e) of Section 1798.140, and make a list of those entities available to the public.
(k)Solicit, review, and approve applications for grants to the extent funds are available pursuant to paragraph (2) of subdivision (b) of Section 1798.160.
(l)Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction and seek to balance the goals of strengthening consumer privacy while giving attention to the impact on businesses.
SEC. 8.Section 1798.199.41 is added to the Civil Code, to read:1798.199.41.If the sale or sharing of a consumers personal information requires affirmative authorization under subdivision (c) of Section 1798.120, a developer shall not use the personal information of that consumer to train an artificial intelligence system or service unless the consumer or the consumers parent or guardian has affirmatively authorized, in the same manner as subdivision (c) of Section 1798.120, that use of the consumers personal information. If affirmative authorization is given, the personal information shall be deidentified and aggregated before being used to train an artificial intelligence system or service.
SEC. 2.SEC. 9.The Legislature finds and declares that this act furthers the purposes and intent of The California Privacy Rights Act of 2020.
(a)For purposes of this section, the following definitions shall apply:
(1)Artificial intelligence means an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments.
(2)Developer means a person, partnership, state or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.
(3)Minor means a natural person under 18 years of age.
(b)A developer shall not use a minors sensitive personal information to train an artificial intelligence system or service.
(c)This section shall be enforced by the agency.
SEC. 3.SEC. 2.The Legislature finds and declares that this act furthers the purposes and intent of The California Privacy Rights Act of 2020.
(a)There is hereby established in state government the California Privacy Protection Agency, which is vested with full administrative power, authority, and jurisdiction to implement and enforce the California Consumer Privacy Act of 2018. The agency shall be governed by a five-member board, including the chairperson. The chairperson and one member of the board shall be appointed by the Governor. The Attorney General, Senate Rules Committee, and Speaker of the Assembly shall each appoint one member. These appointments should shall be made from among Californians with expertise in the areas of privacy, technology, and consumer rights.
(b)The initial appointments to the agency shall be made within 90 days of the effective date of the act adding this section.
SEC. 2.Section 1798.199.15 of the Civil Code is amended to read:1798.199.15.Members of the agency board shall:
(a)Have qualifications, experience, and skills, in particular in the areas of privacy and technology, privacy, technology, and consumer rights, required to perform the duties of the agency and exercise its powers.
(b)Maintain the confidentiality of information which that has come to their knowledge in the course of the performance of their tasks or exercise of their powers, except to the extent that disclosure is required by the Public Records Act.
(c)Remain free from external influence, whether direct or indirect, and shall neither seek nor take instructions from another.
(d)Refrain from any action incompatible with their duties and engaging in any incompatible occupation, whether gainful or not, during their term.
(e)Have the right of access to all information made available by the agency to the chairperson.
(f)Be precluded, for a period of one year after leaving office, from accepting employment with a business that was subject to an enforcement action or civil action under this title during the members tenure or during the five-year period preceding the members appointment.
(g)Be precluded for a period of two years after leaving office from acting, for compensation, as an agent or attorney for, or otherwise representing, any other person in a matter pending before the agency if the purpose is to influence an action of the agency.
SEC. 3.The Legislature finds and declares that this act furthers the purposes and intent of The California Privacy Rights Act of 2020.
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Date
|
Status
|
|---|---|
| Aug 15, 2024 | In committee: Held under submission. |
| Aug 5, 2024 | In committee: Referred to APPR suspense file. |
| Jun 27, 2024 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 26, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (June 25). |
| Jun 17, 2024 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| May 29, 2024 | Referred to Com. on JUD. |
| May 21, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 20, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 5319.) |
| May 9, 2024 | Read second time. Ordered to third reading. |
| May 8, 2024 | From committee: Do pass. (Ayes 15. Noes 0.) (May 8). |
| May 1, 2024 | Re-referred to Com. on APPR. |
| Apr 30, 2024 | Read second time and amended. |
| Apr 29, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 23). |
| Apr 22, 2024 | Re-referred to Com. on P. & C.P. |
| Apr 18, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended. |
| Mar 4, 2024 | Referred to Com. on P. & C.P. |
| Feb 16, 2024 | From printer. May be heard in committee March 17. |
| Feb 15, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 5, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2024 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Judiciary |
Passed |
|
| May 20, 2024 | AB 2877 Bauer-Kahan Assembly Third Reading | Assembly Floor |
Passed |
|
| May 8, 2024 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 23, 2024 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Cal Chamber | * Against | Jun 25, 2024 |
| Common Sense Media | * Support | Jun 25, 2024 |
| Perk Advocacy | ** Support | |
| Technet | * Against | Jun 25, 2024 |
| Transparency Coalition | * Support | Jun 25, 2024 |
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
AB 2877 (Bauer-Kahan) - California Consumer Privacy Act of 2018: artificial intelligence: training
Version: June 27, 2024 | Policy Vote: JUD. 11 - 0 |
Urgency: No | Mandate: No |
Hearing Date: August 5, 2024 | Consultant: Liah Burnley |
Bill Summary:
AB 2877 would prohibit developers of AI systems or tools from using the personal information of children under 16 to train AI systems or services without first obtaining affirmative authorization, and even with authorization, the data must be de-identified and aggregated before it is used to train AI.
Fiscal Impact:
- Unknown, potentially significant cost pressure to the state funded trial court system (Trial Court Trust Fund, General Fund) to adjudicate additional claims of violations of this bill. Existing law establishes civil penalties for violations of the California Consumer Privacy Act (CCPA), to be recovered through a civil action brought on behalf of the people of the state of California by the Attorney General. The fiscal impact of this bill to the courts will depend on many unknown factors, including the numbers of violations alleged to have occurred, if parties settle the matter before the filing of an action, and the factors unique to each case. An eight-hour court day costs approximately $8,000 in staff in workload. If the bill results in only 12 or more days spent in court, trial court costs could be in the hundreds of thousands of dollars. While the courts are not funded on a workload basis, an increase in workload could result in delayed court services and would put pressure on the General Fund to fund additional staff and resources and to increase the amount appropriated to backfill for trial court operations. The Budget Act of 2024, for the fiscal year beginning July 1, 2024, includes a $97 million reduction to the trial courts, a commensurate reduction of up to 7.95 percent to the budget for the state-level judiciary, and a reduction of the trial court state-level emergency reserve in the Trial Court Trust Fund from $10 million to $5 million. The Budget Act also includes a $37.3 million General Fund backfill for the Trial Court Trust Fund to address the continued decline in civil fee and criminal fine and penalty revenues expected in fiscal year 2024‒25.
- Department of Justice (DOJ) indicates significant ongoing costs (Unfair Competition Law Fund) of approximately $1 million or less for the increased workload associated with this bill. DOJ reports that the Consumer Protection Section (CPS) within the Public Rights Division anticipates increased workloads involving investigating and prosecuting of violations of the requirements of this bill. The Section would require the following resources, beginning on January 1, 2025 and ongoing: 1.0 Deputy Attorney General (DAG); 1.0 Legal Secretary as a legal complement for the DAG; and, $250,000 expert costs annually.
- California Privacy Protection Agency (PPA) indicates minor and absorbable costs.
Background:
Generally, the California Consumer Privacy Act (CCPA) prohibits a business from collecting and selling the personal information of a user who is under the age of 16 if the business has actual knowledge that the consumer under 16. This prohibition applies unless a user over the age of 13, or the parent of a user under the age of 13, opts into the sale of the user’s data.
Proposed Law:
This bill prohibits a developer from using the personal information of a consumer the developer knows is a child under 16 years of age to train an AI system or service, unless the consumer or their parent or guardian provides affirmative authorization for such use, in the same manner as provided in the CCPA. However, before using the information to train the model, the personal information must be de-identified and aggregated.
Related Legislation:
AB 1949 (Wicks) would limit a business’s ability to collect and disclose a child’s personal information under the CCPA. AB 1949 is pending in this Committee.
-- END --
Senator Thomas Umberg, Chair
2023-2024 Regular Session
Bill No: AB 2877 (Author:Bauer-Kahan)
Version: June 17, 2024
Hearing Date: June 25, 2024
Fiscal: Yes
Urgency: No
Consultant: CK
SUBJECT
California Consumer Privacy Act of 2018: artificial intelligence: training
DIGEST
This bill prohibits California Consumer Privacy Act (CCPA) covered-businesses that are the developers of artificial intelligence (AI) systems or tools from using the personal information of consumers under the age of 16 to train AI systems or services without first obtaining affirmative authorization, and even with such authorization the data must be de-identified and aggregated before it is used to train.
EXECUTIVE SUMMARY
The CCPA grants consumers certain rights with regard to their personal information, including enhanced notice, access, and disclosure; the right to deletion; the right to restrict the sale or sharing of information; and protection from discrimination for exercising these rights. (Civ. Code § 1798.100 et seq.) In the November 3, 2020 election, voters approved Proposition 24, which established the California Privacy Rights Act of 2020 (CPRA). The CPRA amends the CCPA, limits further amendment, and creates the California Privacy Protection Agency (PPA). The CCPA has special protections for children the business knows are under 16 years old, prohibiting the selling or sharing of their information without affirmative authorization, as provided.
In response to privacy concerns related to the training of AI systems, the bill amends the CCPA to prohibit using the personal information of the same population discussed above, unless the developer of the AI system or service gets affirmative authorization in the same manner as above. Even when such authorization is granted, the personal information shall be deidentified and aggregated before being used to train an AI system or service. This bill is sponsored by Common Sense Media. It is supported by Protection of the Educational Rights of Kids (PERK) Advocacy. The Committee received no timely opposition.
PROPOSED CHANGES TO THE LAW
Existing law:
- Establishes the CCPA, which grants consumers certain rights with regard to their personal information, including enhanced notice, access, and disclosure; the right to deletion; the right to restrict the sale of information; and protection from discrimination for exercising these rights. It places attendant obligations on businesses to respect those rights. (Civ. Code § 1798.100 et seq.)
- Provides a consumer the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer’s personal information. It requires such a business to provide notice to consumers, as specified, that this information may be sold or shared and that consumers have the right to opt out of that selling and sharing. (Civ. Code § 1798.120(a)-(b).)
- Prohibits a business, notwithstanding the above, from selling or sharing the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumer’s parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumer’s personal information. A business that willfully disregards the consumer’s age shall be deemed to have had actual knowledge of the consumer’s age. (Civ. Code § 1798.120(c).)
- Provides that the obligations imposed by the CCPA shall not restrict a business’s ability to carry out certain conduct, including complying with federal, state, or local laws or to cooperate with law enforcement. This also includes cooperating with a government agency’s request for emergency access to a consumer’s personal information if a natural person is at risk or danger of death or serious physical injury where certain circumstances are met. (Civ. Code § 1798.145(a).)
- Defines “personal information” as information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. The CCPA provides a nonexclusive series of categories of information deemed to be personal information, including identifiers, biometric information, and geolocation data. (Civ. Code § 1798.140(v).) The CCPA defines and provides additional protections for sensitive personal information, as defined, that reveals specified personal information about consumers. (Civ. Code § 1798.140(ae).)
- Establishes the CPRA, which amends the CCPA and creates the PPA, which is charged with implementing these privacy laws, promulgating regulations, and carrying out enforcement actions. (Civ. Code § 798.100 et seq.; Proposition 24 (2020).)
- Permits amendment of the CPRA by a majority vote of each house of the Legislature and the signature of the Governor, provided such amendments are consistent with and further the purpose and intent of this act as set forth therein. (Proposition 24 § 25 (2020).)
This bill:
- Provides that if the sale or sharing of a consumer’s personal information requires affirmative authorization under subdivision (c) of Section 1798.120, a developer shall not use the personal information of that consumer to train an AI system or service unless the consumer or the consumer’s parent or guardian has affirmatively authorized, in the same manner as above, that use of the consumer’s personal information. If affirmative authorization is given, the personal information shall be deidentified and aggregated before being used to train an AI system or service.
- States that the Legislature finds and declares that this act furthers the purposes and intent of the CPRA.
- Defines the relevant terms, including:
- “Artificial intelligence” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
- “Train” means exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
- “Developer” means a covered business that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.
COMMENTS
- California’s landmark privacy protection law
As stated, the CCPA grants consumers certain rights with regard to their personal information, as defined. With passage of the CPRA in 2020, the CCPA got an overhaul. Consumers are afforded the right to receive notice from businesses at the point of collection of personal information and the right to access that information at any time. The CCPA also grants a consumer the right to request that a business delete any personal information about the consumer the business has collected from the consumer. However, a business is not required to comply with such a request to delete if it is necessary for the business to maintain the consumer’s personal information in order to carry out certain obligations or other conduct. (Civ. Code § 1798.105(d).)
The CCPA provides adult consumers the right, at any time, “to direct a business that sells personal information about the consumer to third parties not to sell the consumer’s personal information. This right may be referred to as the right to opt-out.” Changes made by the CPRA extend this to opting out of the “sharing” of the personal information as well. A business is thereafter prohibited from selling (or sharing) that information unless consent is subsequently provided. A business that sells or shares personal information to third parties is required to notify consumers that this information may be sold and that they have the right to opt out of such sales. (Civ. Code § 1798.120(b).) The CPRA added a new category of information, sensitive information, which includes data such as precise geolocation and genetic information. Consumers are additionally empowered to limit businesses’ use of such information.
- Protecting the integrity of consumer opt outs
Owing to recent advances in processing power and the rise of big data, AI’s capacity and the scope of its applications have expanded rapidly, impacting every facet of our lives. Ultimately, AI systems are only as good as the data used to train them. AI system training is an iterative process whose success depends on the quality and depth of the input: “An AI model is a program that has been trained on a set of data to recognize certain patterns or make certain decisions without further human intervention. Artificial intelligence models apply different algorithms to relevant data inputs to achieve the tasks, or output, they’ve been programmed for.”[1]
However, there is very little transparency in what data is used to train these systems and that lack of transparency hamstrings efforts to address and adequately identify many of the issues being raised by AI’s rapid development.
One area of particular concern is the use of personal information to train AI systems and the privacy implications of such training. This bill tackles the use of children’s personal information in the training of such models by placing restrictions on developers, defined as covered businesses that design, code, or produce an automated decision tool, or substantially modify an AI system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.
The CCPA currently provides heightened protections for children. If a business has actual knowledge that a consumer is less than 16 years of age, it is prohibited from selling or sharing the child’s personal information, with one exception. If the business gets affirmative authorization from a child over 13, or the child’s parent or guardian if they are younger than 13 years old, the business can sell or share the child’s personal information. A business that willfully disregards the consumer’s age shall be deemed to have had actual knowledge of the consumer’s age.
This bill prohibits a developer from using the personal information of a consumer the developer knows is a child under 16 years of age to train an AI system or service, unless the consumer or their parent or guardian provides affirmative authorization for such use, in the same manner as provided in the CCPA. However, before using the information to train the model, the personal information must be deidentified and aggregated.
According to the author:
As AI becomes ever more present in our lives, we must be especially cautious about AI designed to interact primarily with children and teenagers. Currently, businesses can use minors’ personal data to train AI without any safeguards or the consent or even knowledge of the child or their parents. AB 2877 establishes rules around who can use children’s personal data to better protect vulnerable young people from businesses that use their data to train AI systems.
- Stakeholder positions
Common Sense Media, the sponsor of the bill, writes:
While education and awareness about AI is valuable and necessary, the state must also ensure needed protections and guardrails are in place for kids, teens, and other users. When social media platforms launched 20 years ago, policymakers in California and the U.S., much like most people across the country, did not understand or foresee the consequences of this soon-to-be dominant technology. The results of that indifference are now clear, as research shows that, for young people in particular, the influence of social media platforms, the constant pull to be online 24/7, and the collection and sharing of vast amounts of data on young people has had, and continues to have, significant consequences for the mental and physical well-being of young users and broader aspects of all of our civic and social lives.
Now, with the advent of AI and generative AI, we should all have learned our lesson. Again, there are clearly significant benefits but also great risks from AI products and services. Among the many risks, one of them is the potential to weaken or evade data privacy protections for minors. AB 2877 takes a simple but important step in ensuring that data collection through AI training models is aligned with the
California Privacy Protection Act (CCPA).
The California Chamber of Commerce argues in opposition:
Certainly, on its face, a law that prohibits developers from using children’s data to train AI absent first obtaining affirmative authorization and then both deidentifying and aggregating their data, appears more privacy protective than the status quo. In practice, because individualized data can significantly enhance the performance, personalization, and accuracy of an AI model, it is entirely likely that such restrictions will undermine the ability of developers to train their AI to, among other things, be privacy protective. By that same token, it is also likely that such restrictions will significantly constrain the ability of developers to properly and adequately train their AI to avoid or mitigate certain outcomes, such as those that result in bias and discrimination. Of course, while Californians certainly have a constitutional right of privacy, they also are constitutionally protected against discrimination as well. Thus, by failing to balance competing interests and rights, Californians may not actually benefit from the additional restrictions placed by AB 2877 on the usage of minors PI.
In response to these concerns, the author has agreed to amendments that allow for use of such personal information if the training on such data is necessary to protect the consumer from imminent threats to their physical health or safety and the information is deidentified and aggregated prior to training. The amends also provide more clarity on the later training or fine-tuning that is done on models after the initial training.
Writing in support, Oakland Privacy asserts:
The premise of Assembly Bill 2877 is that the infusion of personal data into an artificial intelligence system for the purposes of training the system *is* a sale or share of personal information under the California Privacy Rights Act.
Given that information put into an artificial intelligence system to train it cannot be easily removed and remains in the system for the remainder of its practical life, and can be deployed for a variety of uses and applications, including some that may not have been anticipated in the training phase, this premise does not seem controversial. It does not upend the fundamental regulatory structure of the CCPA and CPRA and the federal COPPA Act from whose language the guidelines in CPPA/CPRA relating to minor’s personal information was drawn from.
It is clear to us that the training and development of artificial intelligence systems has not been COPPA and CPRA-compliant to date e.g. OpenAI and Google have confirmed using transcriptions of Youtube videos, a platform heavily used by minors and teens, to train their generative AI models.
- Furthering the purpose and intent of the CPRA
Section 25 of the CPRA requires any amendments thereto to be “consistent with and further the purpose and intent of this act as set forth in Section 3.” Section 3 declares that “it is the purpose and intent of the people of the State of California to further protect consumers’ rights, including the constitutional right of privacy.” It then lays out a series of guiding principles. These include various consumer rights such as:
- consumers should know who is collecting their personal information;
- consumers should have control over how their personal information is used; and
- consumers should benefit from businesses’ use of their personal information.
Section 3 also includes a series of responsibilities that businesses should have. These include:
- businesses should specifically and clearly inform consumers about how they use personal information; and
- businesses should only collect consumers’ personal information for specific, explicit, and legitimate disclosed purposes.
Section 3 also lays out various guiding principles about how the law should be implemented.
This bill strengthens protections for children and their personal information. Therefore, as it explicitly states, this bill “furthers the purposes and intent of the California Privacy Rights Act of 2020.”
SUPPORT
Common Sense Media (sponsor)
Oakland Privacy
PERK Advocacy
OPPOSITION
California Chamber of Commerce
Technet
RELATED LEGISLATION
Pending Legislation:
SB 1223 (Becker, 2024) includes “neural data,” as defined, within the definition of “sensitive personal information” for purposes of the CCPA. SB 1223 is currently in the Assembly Privacy and Consumer Protection Committee.
AB 1824 (Valencia, 2024) requires a business that assumes control of all or some part of a transferor business that includes the transfer of a consumer’s personal information to comply with a consumer’s direction to the transferor pursuant to the CCPA. AB 1824 is currently on the Senate Floor.
AB 1949 (Wicks, 2024) prohibits the collection, sharing, selling, using, or disclosing the personal information of minors without affirmative consent from either the minor or their parent or guardian, as provided. The bill provides for regulations to be promulgated by the PPA. AB 1949 is currently in this Committee.
AB 2013 (Irwin, 2024) requires developers of AI systems or services that are made available for Californians to use to post on their website documentation regarding the data used to train the system or service, including high-level summaries of the datasets used. AB 2013 is currently in this Committee.
AB 3048 (Lowenthal, 2024) requires that internet browsers include an opt-out preference signal allowing consumers interacting with businesses online to automatically exercise their right to opt-out of the selling and sharing of their personal information. AB 3048 is currently in this Committee.
Prior Legislation:
AB 947 (Gabriel, Ch. 551, Stats. 2023) included personal information that reveals a consumer’s citizenship or immigration status in the definition of “sensitive personal information” for purposes of the CCPA.
AB 1194 (Wendy Carrillo, Ch. 567. Stats. 2023) provided stronger privacy protections pursuant to the CCPA where the consumer information contains information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, and perinatal care, including abortion services.
AB 375 (Chau, Ch. 55, Stats. 2018) established the CCPA.
PRIOR VOTES:
Assembly Floor (Ayes 73, Noes 0)
Assembly Appropriations Committee (Ayes 15, Noes 0)
Assembly Privacy and Consumer Protection Committee (Ayes 11, Noes 0)
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IBM, What is an AI model?, https://www.ibm.com/topics/ai-model. ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 2877
Author:(Bauer-Kahan)
As Amended Ver:April 30, 2024
Majority vote
SUMMARY
Prohibits a developer, as defined, from collecting and using the personal information of consumers under 16 years of age to train an artificial intelligence system.
Major Provisions
- Defines the following terms in the California Consumer Privacy Act (CCPA):
- "Artificial intelligence" to mean an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
- "Developer" to mean a business that designs, codes, or produces an artificial intelligence system or service or that substantially modifies an existing artificial intelligence system or service by training on personal information.
- "Training" or "trains" to mean exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
- Prohibits a developer from using the personal information of a consumer under the age of 16 to train an artificial intelligence system or service unless a consumer's parent or guardian, if the consumer is under 13, or the consumer authorizes the collection and use of their personal information for this purpose.
- Limits the use of young consumers' personal information, after the consumer allows its use, the data must be de-identified and aggregated.
COMMENTS
Artificial intelligence (AI) uses algorithms – sets of rules – to transform inputs into outputs. In order to function, AI tools first need to be trained. During this period of machine learning, an AI tool is exposed to data and allowed to explore its structure. Machine learning tools develop their algorithms automatically. The process of exposing a machine learning tool to data is known as "training." The algorithm that a machine learning tool develops during training is known as its "model."
Just as humans cannot intentionally forget information they have learned, it is not currently possible to remove data from a trained AI tool. Unlike an Excel spreadsheet, which stores data in neat columns, AI tools store data in the connections between neurons in a deep neural network. Every connection is influenced by every piece of training data, and a large model like ChatGPT-4 is reported to have more than 1.7 trillion connections. It is not possible to specifically alter these connections in order to remove data without fundamentally changing the model; as a result, for data to be removed, the model must be retrained from scratch. ChatGPT-4 is estimated to have taken four to seven months to train in the first place. Any legislative efforts seeking to grant Californians a "right to be forgotten" by AI tools should consider targeting training data before it has been incorporated into a model.
This bill intends to do that for children. Specifically, it prohibits California Consumer Privacy Act (CCPA) covered-businesses that are the developers of AI tools from collecting and using the personal information of consumers under the age of 16 to train AI tools without first obtaining express consent, and even with consent the data must be de-identified and aggregated. Under the CCPA currently, the restrictions for the personal information of consumers under the age of 16 pertain to the selling and sharing of that information, not its collection and use. For specific businesses that are developing AI tools, this bill ensures that young consumers' personal information is not collected and used to train these tools without first obtaining authorization.
The California Consumer Privacy Act and the California Privacy Rights Act (CPRA). In 2018, the Legislature enacted the CCPA (AB 375 (Chau) Chapter 55, Statutes of 2018), which gives consumers certain rights regarding their personal information, such as the right to: 1) know what personal information about them is collected and sold; 2) request the categories and specific pieces of personal information the business collects about them; and 3) opt out of the sale of their personal information, or opt in, in the case of minors under 16 years of age.
Subsequently, in 2020, California voters passed Proposition 24, the California Privacy Rights Act (CPRA), which established additional privacy rights for Californians. With the passage of the CCPA and the CPRA, California now has the most comprehensive laws in the country when it comes to protecting consumers' rights to privacy.
In addition, Proposition 24 created the California Privacy Protection Agency (Privacy Agency) in California, vested with full administrative power, authority, and jurisdiction to implement and enforce the CCPA and the CPRA. The Agency's responsibilities include updating existing regulations, and adopting new regulations.
To protect Californians from any future legislative efforts to weaken statutory protections in the CPRA, Proposition 24 provided that the CPRA's contents may be amended by a majority vote of the Legislature only if the amendments are consistent with and further the purpose and intent of the CPRA, which is to further protect consumers' rights, including the constitutional right of privacy.
The provisions contained in this bill clearly further the goals of the CPRA by increasing restrictions on the collection and use of young people's personal information.
According to the Author
As AI becomes ever more present in our lives, we must be especially cautious about AI that is designed to primarily interact with children. Businesses can use children's personal data to train AI without any safeguards and without the consent or even knowledge of the child or their parents. With AB 2877 I am committed to establishing rules around who can use children's personal data to better protect vulnerable young people from businesses that use their data to train AI systems.
Arguments in Support
Common Sense Media, the sponsors of this bill, write in support:
There are clearly significant benefits but also great risks from AI products and services. Among the many risks, one of them is the potential to weaken or evade data privacy protections for minors. AB 2877 takes a simple but important step in ensuring that data collection through AI training models is aligned with the California Privacy Protection Act (CCPA).
Arguments in Opposition
None.
FISCAL COMMENTS
Minor and absorbable costs to the California Privacy Protection Agency (CPPA) to enforce the bill's prohibition. However, the Legislature is currently considering a number of measures that add to CPPA's enforcement responsibilities; depending on overall enforcement needs, CPPA may need additional General Fund resources in the future.
VOTES
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Irwin, Lowenthal, Ortega, Ward, Wicks, Wilson
ASM APPROPRIATIONS: 15-0-0
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Friedman, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua
UPDATED
VERSION: April 30, 2024
CONSULTANT: Julie Salley / P. & C.P. / (916) 319-2200 FN: 0002919
Date of Hearing: May 8, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2877
Author:(Bauer-Kahan) – As Amended Ver:April 30, 2024
Policy Committee: | Privacy and Consumer Protection | Vote: | 11 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill prohibits a developer from using a child’s personal information to train an artificial intelligence (AI) system unless the child’s parent of guardian (if the child is under age 13) or the child (if the child is 13 to 16 years old) affirmatively authorizes such use. If authorization for such use is granted, the developer must deidentify and aggregate the child’s personal information before using it to train an AI system.
Under the bill, “developer” means a business entity covered by the California Consumer Privacy Act (CCPA) that designs, codes, or produces an automated decision tool, or substantially modifies an AI system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for the developer’s own use or for use by a third party.
FISCAL EFFECT:
Minor and absorbable costs to the California Privacy Protection Agency (CPPA) to enforce the bill’s prohibition. However, the Legislature is currently considering a number of measures that add to CPPA’s enforcement responsibilities; depending on overall enforcement needs, CPPA may need additional General Fund resources in the future.
COMMENTS:
- Purpose. According to the author:
Internet users, including children, are part of a vast economic system for collecting, buying, and selling personal data. Any time a person uses the internet, they leave behind a trail of personal information that is collected, aggregated, and monetized by internet browsers, websites, and social media platforms. Currently, the CCPA generally prohibits a business from collecting and selling the personal information of a user who is under the age of 16 if the business has actual knowledge that the consumer is less than 16 years old. This prohibition applies unless a user over the age of 13 or the parent of a user under the age of 13 opts into the sale of the user’s data.
- Background. This bill prohibits a developer from using a child’s personal information to train an AI system unless the developer is affirmatively authorized to do so. The bill applies the same authorization guidelines for child users in the CCPA’s existing provisions, permitting the child or the child’s parent or guardian to provide authorization, depending on the child’s age.
- Related Legislation. AB 1949 (Wicks) eliminates the CCPA’s “actual knowledge” standard, which governs a covered entity’s treatment of child users, and requires CPPA to promulgate regulations on age verification measures. AB 1949 is pending on this committee’s suspense file.
Analysis Prepared by: Annika Carlson / APPR. / (916) 319-2081
Date of Hearing: April 23, 2024
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Rebecca Bauer-Kahan, Chair
ABPCA Bill Id:AB 2877 (
Author:Bauer-Kahan) – As Amended Ver:April 18, 2024
AS PROPOSED TO BE AMENDED
SUBJECT: California Consumer Privacy Act of 2018: California Privacy Protection Agency
SYNOPSIS
Artificial intelligence (AI) uses algorithms – sets of rules – to transform inputs into outputs. In order to function, AI tools first need to be trained. During this period of machine learning, an AI tool is exposed to data and allowed to explore its structure. Machine learning tools develop their algorithms automatically. The process of exposing a machine learning tool to data is known as “training.” The algorithm that a machine learning tool develops during training is known as its “model.”
Just as humans cannot intentionally forget information they have learned, it is not currently possible to remove data from a trained AI tool. Unlike an Excel spreadsheet, which stores data in neat columns, AI tools store data in the connections between neurons in a deep neural network. Every connection is influenced by every piece of training data, and a large model like ChatGPT-4 is reported to have more than 1.7 trillion connections. It is not possible to specifically alter these connections in order to remove data without fundamentally changing the model; as a result, for data to be removed, the model must be retrained from scratch. ChatGPT-4 is estimated to have taken 4-7 months to train in the first place. Any legislative efforts seeking to grant Californians a “right to be forgotten” by AI tools should consider targeting training data before it has been incorporated into a model.
This bill intends to do that for children. Specifically, it prohibits California Consumer Privacy Act (CCPA) covered-businesses that are the developers of AI tools from collecting and using the personal information of consumers under the age of 16 to train AI tools without first obtaining express consent, and even with consent the data must be de-identified and aggregated.
According to the sponsors of the bill, Common Sense Media, “There are clearly significant benefits but also great risks from AI products and services. Among the many risks, one of them is the potential to weaken or evade data privacy protections for minors.” Under the CCPA currently, the restrictions for the personal information of consumers under the age of 16 pertain to the selling and sharing of that information, not its collection and use. For specific businesses that are developing AI tools, this bill ensures that young consumers’ personal information is not collected and used to train this tools without first obtaining authorization.
SUMMARY: Prohibits a developer, as defined, from collecting and using the personal information of consumers under 16 years of age to train an artificial intelligence system. Specifically, this bill:
- Defines the following terms in the California Consumer Privacy Act (CCPA):
- “Artificial intelligence” to mean an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
- “Developer” to mean a business that designs, codes, or produces an artificial intelligence system or service or that substantially modifies and existing artificial intelligence system or service by training on personal information.
- “Training” or “trains” to mean exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
- Prohibits a developer form using the personal information of a consumer under the age of 16 to train an artificial intelligence system or service unless a consumer’s parent or guardian, if the consumer is under 13, or the consumer authorizes the collection and use of their personal information for this purpose.
- Limits the use of young consumers’ personal information, after the consumer allows its use, the data must be de-identified and aggregated.
EXISTING LAW:
- Provides, pursuant to the California Constitution, that all people are by nature free and independent and have inalienable rights. Among these the fundamental right to privacy. (Cal. Const. art. I, § 1.)
- States that the “right to privacy is a personal and fundamental right protected by Section 1 of Article I of the Constitution of California and by the United States Constitution and that all individuals have a right of privacy in information pertaining to them.” Further states these findings of the Legislature:
- 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.
- The increasing use of computers and other sophisticated information technology has greatly magnified the potential risk to individual privacy that can occur from the maintenance of personal information.
- In order to protect the privacy of individuals, it is necessary that the maintenance and dissemination of personal information be subject to strict limits. (Civ. Code § 1798.1.)
- Establishes the California Consumer Privacy Act. (Civ. Code §§ 1798.100-1798.199.100.)
- Limits a business’ collection, use, retention, and sharing of a consumer’s personal information to that which is reasonably necessary and proportionate to achieve the purposes for which the personal information was collected or processed, or for another disclosed purpose that is compatible with the context in which the personal information was collected, and not further processed in a manner that is incompatible with those purposes. (Civ. Code § 1798.100(c).)
- Prohibits a business from selling or sharing the personal information of a child that is 16 years of age or younger, if the business has actual knowledge of the child’s age, unless the child, or the child’s parent or guardian in the case of children less than 13 years old, has affirmatively authorized the sharing of selling of the personal information. (Civ. Code § 1798.120(c).)
- Provides that consumers have the right, at any time, to direct a business that collects sensitive personal information about the consumer to restrict the use of that information to only that use which is necessary to perform the services or provide the goods reasonably expected by an average consumer who requests those goods or services. (Civ. Code § 1798.121(a).)
- Establishes the California Privacy Protection Agency (Privacy Agency), vested with full administrative power, authority, and jurisdiction to implement and enforce the CCPA. The Privacy Agency is governed by a five-member board, with the chairperson and one member appointed by the Governor, and the three remaining members are appointed by the Attorney General, the Senate Rules Committee, and the Speaker of the Assembly. (Civ. Code § 1798.199.10.)
- Defines the following terms under the CCPA:
- “Business” means a for-profit entity that collects consumers’ personal information, does business in California, and meets one or more of the following criteria:
- It had gross annual revenue of over $25 million in the previous calendar year.
- It buys, receives, or sells the personal information of 100,000 or more California residents, households, or devices annually.
- It derives 50% or more of its annual revenue from selling California residents’ personal information. (Civ. Code § 1798.140(d).)
- “Personal information” means information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Personal information includes such information as:
- Name, alias, postal address, unique personal identifier, online identifier, IP address, email address, account name, social security number, driver’s license number, passport number, or other identifier.
- Commercial information, including records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies.
- Biometric information.
- Internet activity information, including browsing history and search history.
- Geolocation data.
- Audio, electronic, visual, thermal, olfactory, or similar information.
- Professional or employment-related information. (Civ. Code § 1798.140(v).)
- “Sensitive personal information” means personal information that reveals a person’s:
- Social security, driver’s license, state identification card, or passport number.
- Account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials.
- Precise geolocation.
- Racial or ethnic origin, citizenship or immigration status, religious or philosophical beliefs, or union membership.
- Email, mail and text messages.
- Genetic data.
- Information collected and analyzed relating to health.
- Information concerning sex life or sexual orientation. (Civ. Code § 1798.140(ae).)
- “Business” means a for-profit entity that collects consumers’ personal information, does business in California, and meets one or more of the following criteria:
FISCAL EFFECT: As currently in print, this bill is keyed fiscal.
COMMENTS:
1) Background. Artificial intelligence (AI) uses algorithms – sets of rules – to transform inputs into outputs. Inputs and outputs can be anything a computer can process: numbers, text, audio, video, or movement. This is because AI is not fundamentally different from other computer functions. Its novelty lies in its application: unlike normal computer functions, AI is able to accomplish tasks that are normally performed by humans. Calculation and data storage are normal computer functions. Software that interprets emotions in human faces is AI.[1]
Machine learning. In order to function, AI tools first need to be trained. During this period of machine learning, an AI tool is exposed to data and allowed to explore its structure. Machine learning tools develop their algorithms automatically.[2] The process of exposing a machine learning tool to data is known as “training.” The algorithm that a machine learning tool develops during training is known as its “model.”
Models that are trained on small, specific datasets in order to make recommendations and predictions are sometimes referred to as “predictive AI.” This differentiates them from “generative AI,” which are trained on massive datasets in order to produce detailed text and images. When Netflix suggests a TV show to a viewer, the recommendation is produced by predictive AI that has been trained on the viewing habits of Netflix users.[3] When ChatGPT generates text in clear, concise paragraphs, it uses generative AI that has been trained on the entire written contents of the internet.[4] These systems’ architecture and training data differ, but their core concept is the same.
Removing data from a trained model. Just as humans cannot intentionally forget information they have learned, it is not currently possible to remove data from a trained AI tool.[5] Unlike an Excel spreadsheet, which stores data in neat columns, AI tools store data in the connections between neurons in a deep neural network. Every connection is influenced by every piece of training data, and a large model like ChatGPT-4 is reported to have more than 1.7 trillion connections.[6] It is not possible to specifically alter these connections in order to remove data without fundamentally changing the model; as a result, for data to be removed, the model must be retrained from scratch. ChatGPT-4 is estimated to have taken 4-7 months to train in the first place.[7] Any legislative efforts seeking to grant Californians a “right to be forgotten” by AI tools should consider targeting training data before it has been incorporated into a model. This bill seeks to do that for children.
2) Need for this bill. In California, the CCPA secures increased privacy rights for consumers, including the right to know what personal information businesses collect and sell and the right to stop those sales to third parties. With respect to young users, the CCPA prohibits businesses from selling the personal information of a child that they know to be under the age of 16 unless they get affirmative authorization (“opt-in”) for the sale of the child’s personal information. Importantly, the current restrictions on children’s information under the CCPA relate to the selling and sharing of personal information. It does not prohibit the collection and use of that information.
It is reasonable for consumers to expect that the personal information related to children that is being collected and used to train AI tools deserves the same strict protections as the selling and sharing of that same information. The parent or guardian, for the youngest consumer, or the consumer themselves for teenagers, should be able to prohibit the use of their personal information and authorize its use for specific purposes with specific restrictions.
The purpose of this bill is to prohibit CCPA covered-businesses that are the developers of AI tools from collecting and using children’s personal information to train AI tools without first obtaining express consent and even with consent, the data must be de-identified and aggregated.
3) Author’s statement. According to the author:
As AI becomes ever more present in our lives, we must be especially cautious about AI that is designed to primarily interact with children. Businesses can use children’s personal data to train AI without any safeguards and without the consent or even knowledge of the child or their parents. With AB 2877 I am committed to establishing rules around who can use children’s personal data to better protect vulnerable young people from businesses that use their data to train AI systems.
4) The California Consumer Privacy Act and the California Privacy Rights Act (CPRA). In 2018, the Legislature enacted the CCPA (AB 375 (Chau, Chap. 55, Stats. 2018)), which gives consumers certain rights regarding their personal information, such as the right to: (1) know what personal information about them is collected and sold; (2) request the categories and specific pieces of personal information the business collects about them; and (3) opt out of the sale of their personal information, or opt in, in the case of minors under 16 years of age.
Subsequently, in 2020, California voters passed Proposition 24, the California Privacy Rights Act (CPRA), which established additional privacy rights for Californians. With the passage of the CCPA and the CPRA, California now has the most comprehensive laws in the country when it comes to protecting consumers’ rights to privacy.
In addition, Proposition 24 created the California Privacy Protection Agency (Privacy Agency) in California, vested with full administrative power, authority, and jurisdiction to implement and enforce the CCPA and the CPRA. The Agency’s responsibilities include updating existing regulations, and adopting new regulations.
To protect Californians from any future legislative efforts to weaken statutory protections in the CPRA, Proposition 24 provided that the CPRA’s contents may be amended by a majority vote of the Legislature only if the amendments are consistent with and further the purpose and intent of the CPRA, which is to further protect consumers’ rights, including the constitutional right of privacy.[8]
The provisions contained in this bill clearly further the goals of the CPRA by increasing restrictions on the collection and use of young people’s personal information.
5) Proposed Committee amendments. The suggested Committee amendments are intended to clarify the bill and create consistency within the CCPA.
Amendment #1: The definitions included in this bill will be moved to the general definitions section of the CCPA, rather than being confined to the new section proposed by this bill.
Amendment #2: The author of the bill, who chairs this Committee, has proposed, in another bill, a standard definition of AI that is intended to be used throughout the state’s statutes. The definition is updated in this bill to reflect that definition:
“Artificial intelligence” means an engineered or machine-based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs that can influence physical or virtual environments. an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
Amendment # 2: The bill as it is currently in print includes in the definition of “developer” parties that are not covered by the CCPA. In order to address this inconsistencies, the amendments do the following:
“Developer” means a person, partnership, state or local government agency, or corporation covered business that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.
Amendment #3: Adds the definition of “training” and “trains” to the CCPA:
“Training” or “trains” to mean exposing artificial intelligence to data in order to alter the relationship between inputs and outputs.
Amendment #4: Consistent with the current age demarcations in the CCPA, the following definition will be deleted, and instead, the first sentence in (b) will be updated to reflect the CCPA covered entities. In addition (b) removes the reference to “sensitive” in order to broaden the scope of the bill to include all personal information:
(3) “Minor” means a natural person under 18 years of age.
(b) A developer shall not use a minor’s sensitive the personal information of a consumer whose personal information is restricted under 1798.120(c) to train an artificial intelligence system or service.
Amendment #5: In addition to the above amendments, the author understands that there are specific instances when it is important to have access, with permission, to the personal information of children for the training of beneficial AI. The following will be added to (b) in amendment #4:
. . , unless the consumer or consumer’s parent or guardian, as described in 1798.120(c), authorizes its collection and use. If authorization is given, the data must be de-identified and aggregated before being used to train an artificial intelligence system or service.
5) Related legislation. Over the last 5 years numerous bills have attempted to modify the CCPA and many have been successful in furthering its goals. This year alone, this Committee has heard five bills, including this one, that propose modifications to the CCPA. Specifically:
AB 1824 (Valencia, 2024) requires, under the CCPA, that businesses that are acquiring the personal data of consumers through the acquisition of another business, honor the previous decisions of consumers who have not given permission for the business to sell or share their personal information. That bill is currently pending in the Appropriations Committee.
AB 1949 (Wicks, 2024) amends the CCPA to prohibit a business from collecting the personal information of a consumer under 18 years of age unless the consumer, or the consumer’s parent or guardian if under 13, affirmatively authorizes the collection. That bill is currently pending in the Appropriations Committee.
AB 3048 (Lowenthal, 2024) proposes prohibiting a business from developing or maintaining an internet browser through which a consumer interacts with a business that does not include a setting that enables the consumer to send an opt-out preference signal to that business. That bill is currently pending in the Appropriations Committee.
AB 3204 (Bauer-Kahan, 2024) requires data digesters to register with the Privacy Agency. In addition, defines a “data digester” as an organization or enterprise, including, but not limited to, a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, association, or nonprofit that designs, codes, or produces an artificial intelligence system or service, or that substantially modifies an existing artificial intelligence system or service, by training the system or service on the personal data of 1,000 or more individuals or households. This bill is currently pending before this Committee.
ARGUMENTS IN SUPPORT:
Common Sense Media, the sponsors of this bill, write in support:
There are clearly significant benefits but also great risks from AI products and services. Among the many risks, one of them is the potential to weaken or evade data privacy protections for minors. AB 2877 takes a simple but important step in ensuring that data collection through AI training models is aligned with the California Privacy Protection Act (CCPA).
REGISTERED SUPPORT / OPPOSITION:
Support
Common Sense Media
Perk Advocacy
Opposition
None on file.
Analysis Prepared by: Julie Salley / P. & C.P. / (916) 319-2200
Tate Ryan-Mosley, “AI isn’t great at decoding human emotions. So why are regulators targeting the tech?,” MIT Technology Review, August 14, 2023, https://www.technologyreview.com/2023/08/14/1077788/ai-decoding-human-emotions-target-for-regulators/. ↑
IBM, “What is machine learning?,” www.ibm.com/topics/machine-learning.
. ↑
Netflix, “How Netflix’s Recommendations System Works,” help.netflix.com/en/node/100639. ↑
OpenAI, “How ChatGPT and Our Language Models Are Developed,” help.openai.com/en/articles/7842364-how-chatgpt-and-our-language-models-are-developed. ↑
Stephen Pastis, “A.I.’s un-learning problem: Researchers say it’s virtually impossible to make an A.I. model ‘forget’ the things it learns from private user data,” Yahoo! Finance, August 30, 2023, finance.yahoo.com/news/un-learning-problem-researchers-virtually-164342971.html. ↑
Reed Albergotti, “Microsoft pushes the boundaries of small AI models with big breakthrough,” SEMAFOR, November 1, 2023, www.semafor.com/article/11/01/2023/microsoft-pushes-the-boundaries-of-small-ai-models. ↑
Stephen McAleese, “Retrospective on ‘GPT-4 Predictions’ After the Release of GPT-4,” LESSWRONG, March 17, 2023, https://www.lesswrong.com/posts/iQx2eeHKLwgBYdWPZ/retrospective-on-gpt-4-predictions-after-the-release-of-gpt. ↑
Ballot Pamphlet. Primary Elec. (Nov. 3, 2020) text of Prop. 24, p. 74 ↑
Discussed in Hearing
Senate Standing Committee on Appropriations
Senate Standing Committee on Judiciary
Assembly Floor
Assembly Standing Committee on Appropriations
Assembly Standing Committee on Privacy and Consumer Protection
Assembly Standing Committee on Privacy and Consumer Protection
Bill Author
Bill Co-Author(s):