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The original bill, California S.B. 27, was introduced to the [[California State Senate]] by [[Liz_Figueroa|Liz Figueroa]] in December of 2002.<ref name=sb27>California State Legislature. [http://info.sen.ca.gov/pub/03-04/bill/sen/sb_0001-0050/sb_27_bill_20030925_chaptered.html Senate Bill 27, Chaptered version]. Filed with CA Secretary of State on September 25, 2003. Retrieved on 11-03-01.</ref> The bill's co-authors included State Senators Dede Alpert, [[Sheila Kuehl]], [[Gloria Romero]], and [[Nell Soto]].
 
The bill arose out of increasing concern with business practices in which consumers' personal information, collected by the company with which a consumer engaged in business, was sold to other third-party companies without the knowledge of the consumer. In support of the bill, Figueroa's office offered the State Senate numerous examples of lists of personal information available for purchase on the Internet.<ref name=billanalysis></ref> Figueroa's office wrote, "Transparency is the touchstone of consumer confidence in information handling... Because privacy is, by definition, so intensely personal, for a consumer to make a rational and informed and personal choice to opt-in, opt-out, or simply take their business elsewhere, the consumer must know the 'who, what, where and when' of how a business handles personal information."<ref name=analysisbillanalysis>California Senate Judiciary Committee.[http://info.sen.ca.gov/pub/03-04/bill/sen/sb_0001-0050/sb_27_cfa_20030916_115403_sen_comm.html Bill Analysis, SB 27 Senate Bill], 2003. Retrieved on 2011-03-01.</ref>
 
After approval in the Senate, the bill went to the [[California State Assembly]], where a number of concerns arose regarding "undue burden" placed on businesses.<ref name=billanalysis></ref> The authors made several changes to address business interests, including the addition of a provision granting a business 90 days to "cure a violation" and an exemption for small businesses. Revisions also provided businesses the option to either respond to incoming requests from consumers who want to know how their information is being used or to allow users to opt-out and "stop their information from being shared for marketing purposes."<ref name=billanalysis></ref>