AB 1542

Bill Text  - AB-1542 Sensitive personal information.
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                      |  Add To My Favorites   |  Track Bill   |   Version:  	 08/21/26 - Amended Senate
	 06/25/26 - Amended Senate
	 01/05/26 - Introduced
                     AB-1542 Sensitive personal information. (2025-2026)
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               Date Published: 08/22/2026 04:00 AM
AB1542:v97#DOCUMENT
       Bill Start
                Amended
               IN 
                Senate
                 August 21, 2026
                Amended
               IN 
                Senate
                 June 25, 2026
                    CALIFORNIA LEGISLATURE—
                    2025–2026 REGULAR SESSION
                Assembly Bill
                    No. 1542  Introduced by Assembly Member Ward       January 05, 2026  An act to amend Sections 1798.100 and 1798.121 of the Civil Code, relating to privacy.      LEGISLATIVE COUNSEL'S DIGEST     AB 1542, as amended, Ward.
                          Sensitive personal information.     The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information, as defined, that is collected or sold by a business, as defined, including the right to direct a business that collects sensitive personal information, as defined, about the consumer to limit its use, as prescribed. 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.  This bill would, under the CCPA, prohibit a business, service provider, or contractor from selling or sharing sensitive personal information to a third party,
			 except   as specified.  This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.     Digest Key
      Vote:
       MAJORITY   
      Appropriation:
       NO   
      Fiscal Committee:
       YES   
      Local Program:
       NO        Bill Text     The people of the State of California do enact as follows:      SECTION 1.  Section 1798.100 of the Civil Code is amended to read:       1798.100.  General Duties of Businesses that Collect Personal Information  (a) A business that controls the collection of a consumer’s personal information shall, at or before the point of collection, inform consumers of the following:  (1) The categories of personal information to be collected and the purposes for which the categories of personal information are collected or used and whether that information is sold or shared. A business shall not collect additional categories of personal information or use personal information collected for additional purposes that are incompatible with the disclosed purpose for which the personal information was
						collected without providing the consumer with notice consistent with this section.  (2) If the business collects sensitive personal information, the categories of sensitive personal information to be collected and the purposes for which the categories of sensitive personal information are collected or used. A business shall not collect additional categories of sensitive personal information or use sensitive personal information collected for additional purposes that are incompatible with the disclosed purpose for which the sensitive personal information was collected without providing the consumer with notice consistent with this section.  (3) The length of time the business intends to retain each category of personal information, including sensitive personal information, or if
						that is not possible, the criteria used to determine that period provided that a business shall not retain a consumer’s personal information or sensitive personal information for each disclosed purpose for which the personal information was collected for longer than is reasonably necessary for that disclosed purpose.  (b) A business that, acting as a third party, controls the collection of personal information about a consumer may satisfy its obligation under subdivision (a) by providing the required information prominently and conspicuously on the homepage of its internet website. In addition, if a business acting as a third party controls the collection of personal information about a consumer on its premises, including in a vehicle, then the business shall, at or before the point of collection, inform consumers as to the categories of personal
						information to be collected and the purposes for which the categories of personal information are used, and whether that personal information is sold, in a clear and conspicuous manner at the location.  (c) A business’ collection, use, retention, and sharing of a consumer’s personal information shall be 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.  (d) A business that collects a consumer’s personal information and that sells that personal information to, or shares it with, a third party or that discloses it to a
						service provider or contractor for a business purpose shall enter into an agreement with the third party, service provider, or contractor, that:  (1) Specifies that the personal information is sold or disclosed by the business only for limited and specified purposes.  (2) Obligates the third party, service provider, or contractor to comply with applicable obligations under this title and obligate those persons to provide the same level of privacy protection as is required by this title.  (3) Grants the business rights to take reasonable and appropriate steps to help ensure that the third party, service provider, or contractor uses the personal information transferred in a manner consistent with the business’ obligations under
						this title.  (4) Requires the third party, service provider, or contractor to notify the business if it makes a determination that it can no longer meet its obligations under this title.  (5) Grants the business the right, upon notice, including under paragraph (4), to take reasonable and appropriate steps to stop and remediate unauthorized use of personal information.  (e) A business that collects a consumer’s personal information shall implement reasonable security procedures and practices appropriate to the nature of the personal information to protect the personal information from unauthorized or illegal access, destruction, use, modification, or disclosure in accordance with Section 1798.81.5.  (f) Nothing in this section shall require a business to disclose trade secrets, as specified in regulations adopted pursuant to paragraph (3) of subdivision (a) of Section 1798.185.  SEC. 2.  Section 1798.121 of the Civil Code is amended to read:       1798.121.  Consumers’ 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 consumer’s sensitive personal information to that use that 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) of Section 1798.140, and as authorized by regulations adopted pursuant to subparagraph (C) of paragraph (18) of subdivision (a) of Section 1798.185. A business that uses or discloses a consumer’s 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 consumer’s sensitive personal information, except as authorized by subdivision (a), shall not, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, use or disclose the consumer’s sensitive personal information for any other purpose after its receipt of the consumer’s direction unless the consumer subsequently provides consent for the use or disclosure of the
						consumer’s sensitive personal information for additional purposes.  (c) A service provider or contractor that assists a business in performing the purposes authorized by subdivision (a) shall 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 (18) 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.  (e)   (1)       Subject to subparagraph (A) of paragraph (2) of subdivision (ad) of Section   1798.140 and     1798.140,   subparagraph   (B)
						(A)   of paragraph (2) of subdivision (ah) of Section 1798.140,   and paragraph (2),   a business,
						service provider, or contractor shall not sell or share sensitive personal information to a third party.    (2) A commercial credit reporting agency may sell a consumer’s social security number to the extent the commercial credit reporting agency uses that information solely to identify the relationship of a consumer to a business that the consumer owns.  SEC. 3.  The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020.