BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 179
          Author:   Bocanegra (D), et al.
          Amended:  6/19/13 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  10-0, 6/18/13
          AYES:  DeSaulnier, Gaines, Beall, Galgiani, Hueso, Lara, Liu,  
            Pavley, Roth, Wyland
          NO VOTE RECORDED:  Cannella

           SENATE JUDICIARY COMMITTEE  :  5-2, 6/25/13
          AYES:  Evans, Corbett, Jackson, Leno, Monning
          NOES:  Walters, Anderson

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  70-1, 5/24/13 - See last page for vote


           SUBJECT  :    Electronic transit fare collection privacy  
          protections

           SOURCE  :     Author


           DIGEST  :    This bill extends privacy protections that state law  
          gives to toll bridge or toll road users to riders of transit  
          systems employing electronic fare collection systems.

           ANALYSIS  :    Agencies operating toll bridge or toll road  
          facilities may employ an automatic vehicle identification system  
          to facilitate toll collection, such as the FasTrak transponder  
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          that is commonly used in California.  These systems, generally  
          referred to as electronic toll collection (ETC) systems, allow  
          subscribers to prepay tolls thereby eliminating the need to stop  
          and pay at a toll plaza.  Subscribers set up an account with the  
          tolling agency and provide personally identifiable information,  
          such as name, address, and bank account information.  In  
          addition, many toll facilities use license plate reading  
          technology to enforce toll collection.

          In 2010, the Legislature passed and Governor Schwarzenegger  
          signed into law SB 1268 (Simitian, Chapter 489) which  
          established a framework guiding how a transportation agency may  
          use the personal information of either an ETC subscriber or user  
          of a tolled facility that employs an ETC system.  The privacy  
          protections enumerated in SB 1268 include: 

             Prohibiting a transportation agency from selling or  
             otherwise providing personally identifiable information of  
             any person that subscribes to or uses an ETC system.

             Requiring a transportation agency to establish a privacy  
             policy and provide it to subscribers as well as post it on  
             their Web site.

             Allowing a transportation agency to store personally  
             identifiable information for no more than four years and six  
             months for purposes of billing, account settlement, or  
             enforcement.  

             Allowing a transportation agency to provide personally  
             identifiable information to a law enforcement agency only  
             pursuant to a search warrant. 

          SB 1268 defines a transportation agency as the Department of  
          Transportation (Caltrans), the Bay Area Toll Authority, any  
          entity operating a toll bridge or toll highway within the state,  
          or any entity under contract with any of the above entities.   
          Finally, SB 1268 allows a transportation agency to impose an  
          administrative fee on its subscribers to cover the cost of the  
          privacy protections contained in the bill.

          Transit operators in California have begun implementing  
          electronic transit fare collection (ETFC) systems, which are  
          systems utilizing reloadable payment cards instead of cash or  

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          tokens to pay transit fares.  Subscribers often purchase the  
          cards and add value to them by providing personally identifiable  
          information such as their names, addresses, telephone numbers,  
          and bank account information.  

          This bill:

           1. Applies existing privacy protection that state law gives to  
             a toll bridge or toll road user to riders of transit system  
             employing electronic fare collection systems.

           2. Permits the sharing of data between transportation agencies,  
             with respect to ETFC systems, for the purpose of  
             interoperability between those agencies.

           3. Permits a transportation agency to communicate, either  
             directly or through a contracted third-party vendor, to  
             subscribers of an ETC system or an ETFC system about products  
             and services offered by the agency, a business partner, or  
             the entity with which it contracts for the system, using  
             personally identifiable information limited to the  
             subscriber's name, address, and electronic mail address,  
             provided that the transportation agency has received the  
             subscriber's express written or oral consent to receive the  
             communications.

           4. Re-defines "transportation agency" to mean the Caltrans, the  
             Bay Area Toll Authority, any entity operating a toll bridge,  
             toll lane, or toll highway within the state, any entity  
             administering an ETFC system and any transit operator  
             participating in that system, or any entity under contract  
             with any of the above entities.

           5. Re-defines "electronic transit fare collection system" to  
             mean a system for issuing an electronic transit pass that  
             enables a transit passenger subscriber to use the transit  
             systems of one or more participating transit operators  
             without having to pay individual fares, where fares are  
             instead deducted from the subscriber's account as loaded onto  
             the electronic transit pass.

           6. Re-defines "person" to mean any person who subscribes to an  
             ETC or ETFC system or any person who uses a toll bridge, toll  
             lane, or toll road that employs an ETC system.

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           7. Re-defines "personally identifiable information" to mean any  
             information that identifies or describes a person including,  
             but not limited to, travel pattern data, address, telephone  
             number, email address, license plate number, photograph, bank  
             account information, or credit card number.  However,  
             "personally identifiable information" would not include  
             photographic or video footage unless that information is used  
             for purposes of assessing a toll or fare.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/12/13)

          American Civil Liberties Union of California
          CALPIRG
          Consumer Federation of California
          Los Angeles County Metropolitan Transportation Authority
          Privacy Rights Clearinghouse

           ARGUMENTS IN SUPPORT  :    According to the author's office, by  
          including subscribers of ETFC systems, this bill addresses a  
          glaring hole in the privacy protections outlined in SB 1268.   
          The author's office contends that someone reviewing data from an  
          ETFC system can create a more robust profile of a subscriber's  
          everyday travels than from ETC systems.  ETFC systems record  
          when and where a traveler boards public transportation, when and  
          where he/she disembarks, and how often he/she makes the trip.   
          This information could be very valuable to marketing companies,  
          and potentially dangerous in the wrong hands.  This bill  
          addresses these concerns for transit riders the way existing law  
          resolves concerns for toll road users.

           ASSEMBLY FLOOR  :  70-1, 5/24/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan,  
            Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth  
            Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hagman,  
            Hall, Harkey, Jones, Jones-Sawyer, Levine, Linder, Logue,  
            Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell,  
            Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan,  
            Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  

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            Salas, Stone, Ting, Wagner, Weber, Wieckowski, Williams,  
            Yamada, John A. Pérez
          NOES:  Donnelly
          NO VOTE RECORDED:  Bonta, Grove, Roger Hernández, Holden,  
            Skinner, Waldron, Wilk, Vacancy, Vacancy


          JA:k  8/12/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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