BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 859 (Padilla)
          
          Hearing Date: 05/23/2011        Amended: 05/10/2011
          Consultant: Mark McKenzie       Policy Vote: Pub Saf 6-1; Jud 
          4-0
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 859 would authorize the Department of Motor 
          Vehicles (DMV) to disclose the address of electric vehicle 
          owners to electrical corporations and local public utilities 
          only for purposes of tracking electric vehicle charging points.  
          This authority would be subject to the following limitations:
                 DMV may only disclose the type of vehicle and address of 
               the owner, but not the owner's name.
                 DMV must provide a disclosure to the owner at the time 
               of vehicle registration stating that his or her address 
               will be shared with electric utilities.
                 The address information will only be used to identify 
               where an electric vehicle is registered, and not for any 
               other reason.
                 The electric utility would be prohibited from selling, 
               sharing, or disclosing the address information.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           DMV disclosures        over $150  over $300   over $300 Special*
          _____________
          * Motor Vehicle Account
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          ____

          STAFF COMMENTS:  This bill meets the criteria for referral to 
          the Suspense File. 
          
          Existing law requires all residence address information in DMV 
          records confidential and may not be disclosed to any person 
          except a court, law enforcement, or other governmental agency.  
          Existing law provides exceptions to this requirement for 
          insurance companies seeking accident information, vehicle 
          manufacturers issuing safety and warranty information, vehicle 
          dealers for purposes of completing registration transactions, 








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          and for specified statistical research purposes.  DMV has 
          records for approximately 93,000 electric vehicles currently 
          registered in California.

          SB 859 would allow electric vehicle owners' residence address 
          information in DMV records to be disclosed to an electrical 
          corporation or a local publicly owned utility for purposes of 
          tracking vehicle charging points, as specified.  The bill is 
          intended to provide electric utilities with an additional 
          information tool to address impacts to electrical grid safety, 
          reliability, and efficiency prior to any adverse consequences.  
          Specifically, the bill would provide utilities with a tool to 
          monitor and plan for increased demands to electrical 
          distribution systems as more electric vehicle charging stations 
          are installed.

          This bill requires DMV to provide disclosure at the time of 
          registration to electric vehicle owners that their residence 
          address information is required by law to be shared with 
          electric corporations and public utilities.  The current 
          language would require this disclosure to be provided at each 
          annual registration, including initial and renewal transactions, 
          as well as transfers of ownership.  DMV indicates that there is 
          no additional room on the front or back of billing notices or 
          application forms to include the disclosure, and billing 
          envelopes already include the maximum of three mandatory 
          inserts.  Segregating out this specific population of electric 
          vehicle owners and flagging their records with DMV's antiquated 
          computer systems presents other challenges.  Staff estimates 
          that DMV programming costs to identify these records could be 
          over $250,000.  The addition of this disclosure would result in 
          increased postage costs, and adding a page to the billing notice 
          would also come at a substantial cost of well over $100,000.  If 
          DMV determined that programming changes are infeasible, they 
          would likely find it more cost efficient to simply include the 
          disclosure in all vehicle registration notices, thereby 
          increasing printing and postage costs even more.  Either route 
          is likely to result in substantial costs to DMV, likely in 
          excess of $300,000.

          Staff recommends an amendment to require DMV to send an annual 
          disclosure to owners of electric vehicles, rather than requiring 
          the disclosure at the time of registration.  DMV indicates that 
          the increased flexibility of this approach would reduce costs to 








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          approximately $60,000 annually.  Staff notes, however, that the 
          provision to require disclosure at the time of registration, 
          among other protections, was amended into the bill in the Senate 
          Judiciary Committee due to privacy concerns.  The author and 
          Committee may wish to consider whether an annual notice that is 
          not tied to vehicle registration provides sufficient protections 
          without violating the will of the policy committee.  It should 
          be noted that the bill prohibits the release of a vehicle 
          owner's name with the address, and that existing regulations 
          authorize DMV to release confidential address information 
          without disclosure to a vehicle owner under specified 
          circumstances.