BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1268 (Simitian)
          
          Hearing Date:  05/24/2010           Amended: 05/19/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: T&H 8-0,   
          Judiciary 3-1
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          ____
          BILL SUMMARY: SB 1268 prohibits, with some exceptions, a  
          transportation agency from selling or otherwise providing  
          personally identifiable information of a person who subscribes  
          to an electronic toll collection system or who uses a toll  
          facility that employs such system and establishes time periods  
          up to which an agency may retain that information. This bill  
          would specify several exceptions to this prohibition and include  
          a privacy-policy notice requirement to subscribers, as  
          specified. This bill authorizes local transportation authorities  
          to charge a fee to electronic toll collection system users  
          recover the costs of implementing these provisions. This bill  
          also provides that a transportation agency may only make  
          personally identifiable information available to a law  
          enforcement agency pursuant to a search warrant, with specified  
          exceptions and notification requirements.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions                    2010-11                  2011-12   
                   2012-13                   Fund
           
          User privacy protections
          Prohibits sales/sharing                         $0                
                $0                    $0               Local*
          Retention restrictions                     Unknown potential  
          costs, recovered by fees     Local*

          *Transit authorities                          
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          ____
          STAFF COMMENTS: 

          This bill places new requirements on entities that administer  
          electronic toll collection systems, which are primarily local  
          transit authorities. Fee authority is provided in the bill to  










          allow any transportation agency affected by this bill to charge  
          fees to electronic toll collection system users to recover the  
          costs of implementing the privacy protections afforded by this  
          bill.

          Transportation agencies would be prohibited a transportation  
          agency from selling or otherwise providing to any other person  
          or entity personally identifiable information of any person who  
          subscribes to an electronic toll collection system or who uses a  
          toll bridge, toll lane, or toll highway that employs an  
          electronic toll collection system. CalTrans is already  
          statutorily prohibited from these activities, and local transit  
          authorities have indicated that they do not sell or share users'  
          personally identifiable information.

          This bill would require a transportation agency that uses an  
          electronic toll collection system to establish a privacy policy  
          concerning the collection and use of personally identifiable  
          information and to post the policy on its website. The policy  
          must include: 

          Page 2
          SB 1268 (Simitian)

          1) The types of personally identifiable information collected by  
          the agency; 2) the categories of third-party persons or entities  
          with whom the agency may share personally 
          identifiable information; 3) the process by which a  
          transportation agency notifies subscribers of material changes  
          to its privacy policy; 4) the effective date of the privacy  
          policy; and 5) the process by which a subscriber may review and  
          request changes to any of his or her personally identifiable  
          information. 

          This bill would further require that transportation agencies  
          "within practical business and cost constraints," store only  
          personally identifiable information of a person such as the  
          account name, credit card number, billing address, vehicle  
          information, and other basic account information required to  
          perform account functions such as billing, account settlement,  
          or enforcement activities. All other information must be  
          discarded six months after the closure date of the billing cycle  
          or 60 days after the bill has been paid, whichever occurs last.  
          Additionally, this bill provides that a transportation agency  
          shall "within practical business and cost constraints," purge  
          the personal account information of an account within 60 days  










          after the date the account is closed or terminated. 

          The cost of purging information will vary by transportation  
          agency, and depend largely on the agency's data system. For more  
          advanced, modern systems, purging specified information should  
          be a relatively simple process addition to the computer system.  
          For antiquated systems, a new platform maybe need to be  
          constructed to allow for continual purging, based on activity  
          dates. In either case, this bill allows fees to be charged to  
          electronic toll system users to cover the cost of implementing  
          this bill. Because the bill employs subjective language stating  
          the requirement is for the tasks to be completed "within  
          practical business and cost constraints", it is unclear whether  
          expensive system fixes would be able to be enforced.

          The bill provides for civil penalties and civil actions against  
          an entity that sells a user's personally identifiable  
          information that is protected by these provisions.