Amended IN Assembly April 02, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1281Introduced by Assembly Member ChauFebruary 21, 2019 An act to add Title 1.81.7 (commencing with Section 1798.300) to Part 4 of Division 3 of the Civil Code, relating to privacy. LEGISLATIVE COUNSEL'S DIGESTAB 1281, as amended, Chau. Privacy: facial recognition technology: disclosure.Existing law, the California Consumer Privacy Act of 2018, grants, commencing on January 1, 2020, a consumer various rights with regard to personal information relating to that consumer that is held by a business. The act requires a business that collects personal information about a consumer to disclose the consumers right to delete personal information in a form that is reasonably accessible to consumers and in accordance with a specified process. Existing law makes the engagement in unfair competition punishable by civil penalties or injunctions, as specified.Existing law, the Unfair Competition Law, makes various business practices unlawful and provides statutory penalties for any person who engages, has engaged, or proposes to engage in unfair competition.This bill would require a business in California that uses facial recognition technology to disclose that usage in a physical sign that is clear and conspicuous at the entrance of every location that uses facial recognition technology, as defined. The bill would consider a violation of these provisions to be unfair competition within the meaning of the Unfair Competition Law, and would authorize these provisions to be enforced consistent with that law. make a business that violates these provisions liable for specified civil penalties. The bill would authorize the Attorney General, a district attorney, a county counsel, a city attorney, or a city prosecutor to bring a civil action to collect these penalties, as specified, and if the Attorney General brings the action, would require that one-half of the penalties collected be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Title 1.81.7 (commencing with Section 1798.300) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.7. Facial Recognition Technology Disclosure1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. Amended IN Assembly April 02, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1281Introduced by Assembly Member ChauFebruary 21, 2019 An act to add Title 1.81.7 (commencing with Section 1798.300) to Part 4 of Division 3 of the Civil Code, relating to privacy. LEGISLATIVE COUNSEL'S DIGESTAB 1281, as amended, Chau. Privacy: facial recognition technology: disclosure.Existing law, the California Consumer Privacy Act of 2018, grants, commencing on January 1, 2020, a consumer various rights with regard to personal information relating to that consumer that is held by a business. The act requires a business that collects personal information about a consumer to disclose the consumers right to delete personal information in a form that is reasonably accessible to consumers and in accordance with a specified process. Existing law makes the engagement in unfair competition punishable by civil penalties or injunctions, as specified.Existing law, the Unfair Competition Law, makes various business practices unlawful and provides statutory penalties for any person who engages, has engaged, or proposes to engage in unfair competition.This bill would require a business in California that uses facial recognition technology to disclose that usage in a physical sign that is clear and conspicuous at the entrance of every location that uses facial recognition technology, as defined. The bill would consider a violation of these provisions to be unfair competition within the meaning of the Unfair Competition Law, and would authorize these provisions to be enforced consistent with that law. make a business that violates these provisions liable for specified civil penalties. The bill would authorize the Attorney General, a district attorney, a county counsel, a city attorney, or a city prosecutor to bring a civil action to collect these penalties, as specified, and if the Attorney General brings the action, would require that one-half of the penalties collected be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Amended IN Assembly April 02, 2019 Amended IN Assembly April 02, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1281 Introduced by Assembly Member ChauFebruary 21, 2019 Introduced by Assembly Member Chau February 21, 2019 An act to add Title 1.81.7 (commencing with Section 1798.300) to Part 4 of Division 3 of the Civil Code, relating to privacy. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1281, as amended, Chau. Privacy: facial recognition technology: disclosure. Existing law, the California Consumer Privacy Act of 2018, grants, commencing on January 1, 2020, a consumer various rights with regard to personal information relating to that consumer that is held by a business. The act requires a business that collects personal information about a consumer to disclose the consumers right to delete personal information in a form that is reasonably accessible to consumers and in accordance with a specified process. Existing law makes the engagement in unfair competition punishable by civil penalties or injunctions, as specified.Existing law, the Unfair Competition Law, makes various business practices unlawful and provides statutory penalties for any person who engages, has engaged, or proposes to engage in unfair competition.This bill would require a business in California that uses facial recognition technology to disclose that usage in a physical sign that is clear and conspicuous at the entrance of every location that uses facial recognition technology, as defined. The bill would consider a violation of these provisions to be unfair competition within the meaning of the Unfair Competition Law, and would authorize these provisions to be enforced consistent with that law. make a business that violates these provisions liable for specified civil penalties. The bill would authorize the Attorney General, a district attorney, a county counsel, a city attorney, or a city prosecutor to bring a civil action to collect these penalties, as specified, and if the Attorney General brings the action, would require that one-half of the penalties collected be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. Existing law, the California Consumer Privacy Act of 2018, grants, commencing on January 1, 2020, a consumer various rights with regard to personal information relating to that consumer that is held by a business. The act requires a business that collects personal information about a consumer to disclose the consumers right to delete personal information in a form that is reasonably accessible to consumers and in accordance with a specified process. Existing law makes the engagement in unfair competition punishable by civil penalties or injunctions, as specified. Existing law, the Unfair Competition Law, makes various business practices unlawful and provides statutory penalties for any person who engages, has engaged, or proposes to engage in unfair competition. This bill would require a business in California that uses facial recognition technology to disclose that usage in a physical sign that is clear and conspicuous at the entrance of every location that uses facial recognition technology, as defined. The bill would consider a violation of these provisions to be unfair competition within the meaning of the Unfair Competition Law, and would authorize these provisions to be enforced consistent with that law. make a business that violates these provisions liable for specified civil penalties. The bill would authorize the Attorney General, a district attorney, a county counsel, a city attorney, or a city prosecutor to bring a civil action to collect these penalties, as specified, and if the Attorney General brings the action, would require that one-half of the penalties collected be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Title 1.81.7 (commencing with Section 1798.300) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.7. Facial Recognition Technology Disclosure1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Title 1.81.7 (commencing with Section 1798.300) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 1.81.7. Facial Recognition Technology Disclosure1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. SECTION 1. Title 1.81.7 (commencing with Section 1798.300) is added to Part 4 of Division 3 of the Civil Code, to read: ### SECTION 1. TITLE 1.81.7. Facial Recognition Technology Disclosure1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. TITLE 1.81.7. Facial Recognition Technology Disclosure1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. TITLE 1.81.7. Facial Recognition Technology Disclosure TITLE 1.81.7. Facial Recognition Technology Disclosure 1798.300. (a) For the purposes of this title:(1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames.(b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous.(c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.(c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction.(2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered.(2)(3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made. 1798.300. (a) For the purposes of this title: (1) Clear and conspicuous means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols and other marks that call attention to the language. (2) Facial recognition technology means a software application used to automatically identify an individual from a digital image or video frames. (b) A business in California that uses facial recognition technology shall disclose the usage of facial recognition technology in a physical sign at the entrance of every location that uses facial recognition technology. This sign shall be clear and conspicuous. (c)(1)A violation of this section shall be considered unfair competition within the meaning of Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code. (c) (1) A business that fails to comply with subdivision (b) shall be liable for a civil penalty of up to seventy-five dollars ($75) for each violation, not to exceed seven thousand five hundred dollars ($7,500) annually or 1 percent of the net income of the business, whichever is higher. That penalty shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General, by a district attorney, county counsel, or city attorney, or by a city prosecutor in a city having a full-time city prosecutor, in a court of competent jurisdiction. (2) If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half to the treasurer of the county in which the judgment was entered. (2) (3) One violation of this section shall occur for each day the disclosure required under subdivision (b) is not made.