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Last Updated: Thursday, October 1, 2026 at 04:59 PM
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California governor vetoes privacy bills

California Gov. Arnold Schwarzenegger vetoed bills aimed at giving notice of  e-mail monitoring at work as well as safeguard private medical and financial data.

California Gov. Arnold Schwarzenegger Wednesday vetoed three bills aimed at boosting e-mail privacy at work as well as safeguard private medical and financial data.

One bill would have limited data that medical firms can send abroad for processing without a patient's consent.  The bill's backers had expressed concern that outsourcing of such work could endanger medical privacy because California courts do not have jurisdiction over activities abroad.

Insurers and health care firms opposed the union-backed measure.

"This bill prohibits a health care business from transmitting an individual's health information outside of the United States," the governor wrote in his veto message.  "This bill is unnecessary.  Existing laws prohibit the sharing of an individual's medical information."

Another vetoed bill would have required consumer consent before financial institutions could outsource or share personal information on clients.  Schwarzenegger said it could conflict with present state financial privacy laws.

The former actor and bodybuilder also rejected a bill that would have required the state's employers to give workers written notification if e-mail and other Internet activity was being monitored at work.

"Just because your boss owns the computer and pays for the Internet access doesn't mean he should have the right to spy on you without telling you," Sen. Debra Bowen, the bill's sponsor, said in an e-mail.

One-time written notice
The measure would have required employers to give a one-time written notice of plans to read employee e-mail, track their Internet usage, or use other electronic devices to monitor workers on or off the job.

Supporters of the bill, which was modeled on a state regulation requiring employers to disclose whether they monitor employee telephone calls, said it would make California a leader in the effort to protect employee privacy online and could serve as a model for similar bills in other states.

Critics said it would burden employers and is unnecessary because employees already assume online activities at work are monitored. Business groups also opposed the bill because any violation of it would be considered a misdemeanor.

Late Wednesday Schwarzenegger also vetoed a vaguely worded bill that sought to increase investment in communications infrastructure such as broadband cabling.

"The expansion of broadband access is a critical component for increasing the economic prosperity of California and its citizens," he wrote.  "However, to achieve this important goal, we must have a comprehensive solution to greatly expand broadband access."