CA Privacy Bills Await Governor’s Signature

The California State Assembly this week is expected to hammer out the final details in legislation that sets procedures for how businesses in the state destroy out-dated or unwanted records that contain detailed information about current and former customers and/or clients before discarding it.

Although the Assembly approved the measure (AB-2246) sponsored by Assemblyman Howard Wayne by a vote of 49-26 on May 18, the state Senate made several minor adjustments to it last week before voting 26-6 for passage.

There has been no indication from Governor Gray Davis’ office as to whether he would sign the measure into law once it reaches his desk, or if he would veto the measure.

The legislation, seen as another way of combating identity theft and personal privacy protection, would require businesses to shred all paper documents containing the personal data of their customers or clients — including names, addresses, telephone numbers, signatures, Social Security Numbers, driver’s license numbers, bank and credit card numbers, other financial data, in addition to educational, and employment data — so they cannot be read.

The measure also would require businesses to erase or otherwise render undecipherable any outdated and unwanted computer tapes and other electronically stored files containing the personal data of their customers or clients.

Companies failing to comply with the law could face civil lawsuits by both individuals and the state.

In another privacy-related matter the Senate last week gave final approval to a bill prohibiting companies from secretly monitoring the e-mails and other computer records of employees. The bill, sponsored by State Senator Debra Bowen, passed by a 27-10 vote.

The measure, SB-1822, which requires employers to obtain permission from their workers before taking such action, was approved 54-20 by the Assembly earlier in the month.

Similar legislation was approved last year by both chambers of the legislature but was subsequently vetoed by Gov. Davis who said it placed an “undue regulatory burden” on employers.”

Gov. Davis has until Sept. 30 to sign, veto, or allow the bill to become law without his signature.