BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1708
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1708 (Gatto) - As Amended:  April 19, 2012 

          Policy Committee:                              InsuranceVote:13 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill allows a motorist to show proof of insurance and 
          vehicle registration using a mobile device, rather than carrying 
          an insurance card in their automobile. Specifically, this bill: 

          1)Permits automobile insurers to provide proof of insurance in 
            an electronic format that may be displayed on a mobile 
            electronic device.

          2)Permits the use of vehicle registration in an electronic 
            format on a mobile electronic device in response to a demand 
            for vehicle registration from a peace officer.

          3)Prohibits a peace officer or clerk of the court from viewing 
            any other content on a mobile electronic device when the 
            device is presented to establish proof of insurance or to 
            provide the vehicle registration.

          4)Provides that the owner of the mobile electronic device is 
            liable for any damage to the device when it is presented as 
            proof of insurance.

          5)Permits the use of proof of insurance in an electronic format 
            on a mobile electronic device in response to a demand for 
            proof of insurance from a peace officer and to establish 
            insurance coverage in a court proceeding related to an alleged 
            violation of the Vehicle Code.

           FISCAL EFFECT  

          There are no significant costs associated with this legislation.








                                                                  AB 1708
                                                                  Page  2


           COMMENTS  

           1)Purpose.   According to the author, this bill will bring 
            clarity to the law by expressly permitting the use of cell 
            phones and other mobile devices to be used to display proof of 
            insurance and vehicle registration. This measure would provide 
            greater convenience to motorists by adapting the law to the 
            increasingly common use of cell phones in business 
            transactions and everyday life. The author further argues that 
            this will provide drivers with an additional level of safety 
            by allowing them to remove the paper registration and proof of 
            insurance from their cars, both of which contain personal 
            information, including home addresses.

           2)Developing Trend.   Governors in both Arizona and Idaho have 
            signed similar legislation this year and Alabama is reportedly 
            developing regulations to permit the use of cell phones to 
            provide display proof of insurance as well.  

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081