CCPA Definition of Consumer
The CCPA definition of consumer applies the new California privacy law’s terms broadly to protect almost everyone living in the state. With this definition, the California Consumer Privacy Act will apply to approximately 40 million people.
The CCPA defines consumer to mean “a natural person who is a California resident, as defined in Section 17014 of Title 18 of the California Code of Regulations ….” This text was present in the first version of the California Consumer Privacy Act introduced in June 2018 and did not change when the CCPA Amendment SB-1121 passed in August 2018 (signed into law by the California Governor in September 2018).
The definition references Section 17014, which is located in California’s Personal Income Tax code. According to that section:
(a) “Resident” includes:
(1) Every individual who is in this state for other than a temporary or transitory purpose.
(2) Every individual domiciled in this state who is outside the state for a temporary or transitory purpose.
The section goes on to define the maximum temporary or transitory purpose outside the state with regard to individuals outside the state.
(d) For any taxable year beginning on or after January 1, 1994, any individual domiciled in this state who is absent from the state for an uninterrupted period of at least 546 consecutive days under an employment-related contract shall be considered outside this state for other than a temporary or transitory purpose.
(1)For purposes of this subdivision, returns to this state, totaling in the aggregate not more than 45 days during a taxable year, shall be disregarded.
(2)This subdivision shall not apply to any individual, including any spouse described in paragraph (3), who has income from stocks, bonds, notes, or other intangible personal property in excess of two hundred thousand dollars ($200,000) in any taxable year in which the employment-related contract is in effect. In the case of an individual who is married, this paragraph shall be applied to the income of each spouse separately.
(3)Any spouse who is absent from the state for an uninterrupted period of at least 546 consecutive days to accompany a spouse who, under this subdivision, is considered outside this state for other than a temporary or transitory purpose shall, for purposes of this subdivision, also be considered outside this state for other than a temporary or transitory purpose.
(4) This subdivision shall not apply to any individual if the principal purpose of the individual’s absence from this state is to avoid any tax imposed by this part.
The definition of resident also includes certain elected government officials as outside the state for a temporary or transitory purpose:
(b) Any individual (and spouse) who is domiciled in this state shall be considered outside this state for a temporary or transitory purpose while that individual:
(1) Holds an elective office of the government of the United States, or
(2) Is employed on the staff of an elective officer in the legislative branch of the government of the United States as described in paragraph (1), or
(3) Holds an appointive office in the executive branch of the government of the United States (other than the armed forces of the United States or career appointees in the United States Foreign Service) if the appointment to that office was by the President of the United States and subject to confirmation by the Senate of the United States and whose tenure of office is at the pleasure of the President of the United States.
The Controversy over the Definition of a Consumer
Because of the breadth of the term, there has been concern from the business community about the possible application of the law to the personal information of employees. The sponsor of the California Consumer Privacy Act in the California State Assembly has introduced bill AB-25 to amend the CCPA to make clear that it does not apply to employee data within an the scope of an individual acting as an employee. As currently drafted, it would also apply to independent contractors, agents and prospective employees. AB-25 has cleared the Privacy and Consumer Protection Committee and is before the Assembly Appropriations Committee. In addition to receiving the necessary votes from the Assembly, it must also complete the process in the Senate before it could become law. It is one of almost a dozen bills proposing changes to the CCPA.
GET OUR FREE WHITE PAPER ON THE NEW CALIFORNIA LAW:
Data Portability for CCPA DSAR Access Responses
What is a CCPA business purpose or commercial purpose?
The Broad CCPA Definition of Sale
CCPA Look Back Period Requirement
CCPA Household Definition & Challenges
CCPA Training Requirement – Section 1798.130(a)(6)
CCPA Regulations: Coming Soon from the California Attorney General
Loyalty Programs, AB-846, and the CCPA Anti-Discrimination Clause