BILL ANALYSIS
SB 888
Page 1
Date of Hearing: June 23, 2004
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Paul Koretz, Chair
SB 888 (Dunn) - As Amended: June 9, 2004
SENATE VOTE : Vote not relevant.
SUBJECT : Employment: confidential information.
SUMMARY : Prohibits the performance of any work involving
information that is essential to homeland security at a work
site outside of the United States. Specifically, this bill :
1) Prohibits any work involving information that is essential to
homeland security from being performed at a work site outside
of the United States, unless the material or expertise
necessary to perform the work is unavailable in the United
States.
2) Defines "information essential to homeland security" as
either of the following:
a) Information necessary to enhance the capability of state
and local jurisdictions to prepare for and respond to
terrorist acts, including, but not limited to, acts of
terrorism involving weapons of mass destruction and
nuclear, radiological, incendiary, chemical, and explosive
devices; or
b) Information relating to physical and information
infrastructures, including, but not limited to, the
telecommunications, energy, financial services, water, and
transportation sectors.
EXISTING LAW , by executive order of the Governor, establishes
the Office of Homeland Security.
FISCAL EFFECT : Unknown
COMMENTS : According to the author's office, recent media
reports about sensitive and private information being offshored
raise serious concerns about how to best enforce our state's
privacy and security protections in today's global economy.
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According to the author, since September 11, 2001, we have
become increasingly concerned with protecting our state from
terrorist attack. At a time when we are spending hundreds of
millions of federal and state dollars to protect our dams,
bridges, roadways and other infrastructure, it seems foolish to
be allowing engineering schematics relating to the state's
electricity grid to be worked on overseas. Recently, a
container exploded at the Port of Los Angeles after being
inspected at an offshore site. More and more, containers are
not being inspected for their contents once they enter a
California port. This puts the health and safety of port
workers as well as the public at large at risk.
Similarly, the California Labor Federation, AFL-CIO contends
that in these times where we experience the threat of terrorist
attacks, Californians should not have to compromise their
security simply because businesses are looking for a cheaper
bottom line.
The International Longshore and Warehouse Union, AFL-CIO (ILWU)
argues that prior to September 11, 2001, ILWU marine clerks
verified the manifest of cargo containers in California and
elsewhere on the West Coast. The clerks also inspected every
empty container that came to port. The ILWU contends that,
ironically, since September 11th this no longer happens with any
regularity. This bill will ensure that work related to homeland
security at our California ports will be performed in the United
States instead of a foreign country.
Opponents, writing in opposition to an earlier version of the
bill (see discussion below), argued that the damage this bill
will do to Californians attempting to participate in the global
economy outweighs any of the benefits derived. For example, an
individual wishing to purchase property in another country would
be required to individually identify each piece of financial
information to be sent out of the United States. Medical
providers could prohibit individuals from seeking medical
treatment in foreign countries due to the administrative burden
and enhanced liability for the provider. (This opposition was
received before the bill was amended to contain only those
provisions related to information essential to homeland
security).
Legislative History of This Bill : The provisions of this bill
were originally contained in SB 1492 (Dunn) which, in addition
to addressing issues related to homeland security, also
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prohibited health care businesses from transmitting individually
identifiable health information to a site outside of the United
States. However, SB 1492 was recently amended to divide these
provisions into two separate bills. Therefore, SB 1492
currently contains only those provisions related to medical
privacy. The homeland security provisions of SB 1492 were
amended into this bill.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
California Labor Federation, AFL-CIO
California School Employees Association
International Longshore & Warehouse Union
Ship Clerk's Association, Local 34
Opposition
America's Health Insurance Plans
Association of California Life & Health Insurance Companies
California Healthcare Association
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091