California Senate considers bans on employers collecting neural data through surveillance systems and on businesses disclosing it to third parties

California Senate considers bans on employers collecting neural data through surveillance systems and on businesses disclosing it to third parties

As of August 10, AB 1883 and AB 1542 were before the California Senate Appropriations Committee, with hearings on both bills scheduled for August 13. The first bill would prohibit employers from collecting neural data through a surveillance system. The second would prohibit the sale or disclosure of sensitive personal information to third parties.

AB 1883 is an employment bill. It defines neural data as information derived from measuring activity in an employee’s central or peripheral nervous system. Its protections apply once a device measures such a signal from an employee.

The bill defines a surveillance system as an application, device, or other tool that collects or facilitates the collection of information about an employee’s activities, communications, or behavior without direct human observation. It would stop the first step in this chain by preventing an employer from obtaining data about an employee’s nervous system activity.

AB 1542 addresses the next step, further disclosure of the data. It would prohibit a business, contractor, or service provider from selling sensitive personal information or disclosing it to a third party. California law already classifies neural data as sensitive personal information, so the proposed rule would also cover measured nervous system signals.

Duke University professor Nita Farahany told CalMatters that employees at neurotechnology companies had discussed a choice among a subscription, an expensive device, and a cheaper device whose manufacturer makes money from its data. The two bills regulate different actions. One concerns an employer obtaining neural data through surveillance, while the other concerns a company disclosing sensitive information to a third party.