BILL ANALYSIS �
SB 750
Page 1
Date of Hearing: June 20, 2011
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 750 (Hernandez) - As Introduced: February 18, 2011
SENATE VOTE : 32-7
SUBJECT : Vehicles: key information access
SUMMARY : Deletes the January 1, 2013, sunset provision exempting
automakers from providing electronic key code information to
locksmiths so long as the manufacturer operates a 24 hours a
day, 7 day a week (24/7) request line whereby vehicle owners can
request replacement keys and receive them within one day of the
request or via the next overnight delivery.
EXISTING LAW :
1)Requires a manufacturer of motor vehicles that are sold or
leased in California in or after 2008 to provide a registered
owner of a vehicle, through a registered locksmith, with
information the locksmith needs to produce a replacement key
or other functionally similar device that will enable the
registered owner to enter, start, and operate the vehicle.
2)Requires the locksmith, when requested to provide a
replacement key by a vehicle owner or the owner's family
member, to:
a) Visually identify the requesting party through the
persons driver's license;
b) Visually identify that the vehicle registration matches
the requesting party's identity and address; and,
c) Visually verify that the vehicle identification number
on the vehicle matches the VIN number on the registration.
1)Requires a locksmith, upon satisfactory verification of the
vehicle and requestor's identity, to sign an affidavit
confirming the visual verification of information and to file
the affidavit with the work order.
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2)Provides for additional security measures, including a
requirement that the locksmith be registered with the
manufacturer and that the locksmith destroy the key code
information once a replacement key or functionally similar
device has been provided to the vehicle owner.
3)Exempts from the requirement to provide key code information
to locksmiths, until January 1, 2013, motor vehicle
manufacturers that do not provide for the production of a
replacement key or other functionally similar device, if the
manufacturer operates a 24/7 telephone or electronic request
line whereby an owner can obtain a key at reasonable cost
within one day of the request or via the next overnight
delivery.
4)Specifies that the exemption would apply to vehicle lines
produced after January 1, 2008.
5)Exempts vehicle manufactures with vehicle lines that sold
between 2,500 and 5,000 in the prior calendar year in
California from the requirement to provide key code
information to locksmiths.
FISCAL EFFECT : Unknown
COMMENTS : SB 1542 (Migden), Chapter 433, Statutes of 2006 was
jointly sponsored by the California State Automobile Association
and the Automobile Club of Southern California (Auto Clubs). At
that time, the sponsors reported that the intent of the
legislation was to provide vehicle owners an effective means of
obtaining replacement ignition keys in a secure and convenient
manner, given that more and more vehicles were being designed
with smart keys that made key duplication by a locksmith
impossible if the necessary information from the vehicle
manufacturer was unavailable. In support of SB 1542, the Auto
Clubs presented a number of examples where consumers were
greatly inconvenienced when locksmiths were unable to create
keys because vehicle manufacturers refused to provide them with
key code information. Some of the more poignant examples
included situations where vehicle owners were left stranded in
unsafe situations, were forced to have their vehicles towed to
dealerships (sometimes over great distances and at great
expense), and were charged between $100 to $3,000 by dealerships
for key replacement (exclusive of towing charges). In many of
these examples, vehicle owners reported being required to wait
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for prolonged periods of time for the replacement key to be
created by dealerships as well as being forced to pay
exceptionally high dealer prices.
A provision was added to SB 1542 exempting auto manufacturers,
until January 1, 2013, from the requirement to provide key code
information to locksmiths, as long as the vehicle manufacturers
provided a 24/7 telephone or electronic request line where the
registered owner, or family member of the registered owner,
could obtain a replacement key or other functionally similar
device within one day of the request or via the next overnight
delivery. Based on the committee analyses prepared for SB 1542
by the Senate Judiciary Committee, it appears that the exemption
and sunset provisions were included to allow automakers time to
develop systems whereby keys could be reproduced by registered
locksmiths. In their analysis of SB 1542, the Senate Judiciary
Committee wrote, "the bill would also sunset this exemption in
five years, thus requiring any automaker selling vehicles in
California after January 1, 2013 to have a key system that
allows for the reproduction of a replacement key by others, such
as a registered locksmith."
This bill would eliminate the January 1, 2013, sunset date,
thereby allowing auto manufacturers who operate a 24/7 key
replacement request line to do so indefinitely, in lieu of
providing key code information to locksmiths.
Arguing in support of this bill, the sponsor, Bayerische Motoren
Werke (BMW), notes that the January 1, 2013, sunset provision
was included to allow BMW to continue the process of providing a
24/7 key replacement request line while it determined if
additional technology could be developed that provided the same
level of security and accommodates customer needs. BMW reports
that since the effective date of SB 1542, they have replaced
4,397 keys and in only one instance was the key not delivered to
the owner consistent with the provisions of that bill.
Therefore, the sponsor concludes that operation of the 24/7 key
replacement request line is as a suitable alternative to
providing key code information to locksmiths and that this
alternative means of providing key code information should be
allowed to continue indefinitely.
The sponsor indicates their preference to continue the 24/7 key
replacement request line rather than provide key code
information to locksmiths because BMWs are one of the most
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frequently stolen vehicles. BMW contends that releasing key
code information, despite existing security measures, could
result in increased theft risks, to the detriment of BMW owners.
BMW also contends that very few locksmiths possess the
sophisticated equipment necessary to create electronic keys for
BMWs and other high-end vehicles and therefore, most BMW owners
would need to use the 24/7 key replacement request line anyway.
Arguing in opposition, the Auto Clubs contend that this bill
would benefit only a narrow group of foreign special interests
and weaken the landmark, bi-partisan consumer protection
legislation that was approved by the California Legislature and
supported by consumer groups, police and fire departments,
cities, insurance companies, and other civic, taxpayer, and
business organizations.
The Auto Clubs also contend that the exemption and sunset clause
included in SB 1542 was provided to give sufficient lead time
for auto manufactures to come into compliance with the law.
They note that even though they were given this lead time, BMW
has failed come into compliance, despite the fact that over 90%
of auto manufacturers now provide key code information as
required by the legislation.
Arguing in opposition, the California Locksmiths Association
(CLA) refutes claims by BMW that very few locksmiths possess the
equipment necessary to create keys for high-end vehicles such as
BMWs. In fact, CLA contends that a large number of locksmiths
(particularly in metropolitan areas) possess the appropriate
equipment and can provide replacement keys or similar device for
high-end vehicles within 1-2 hours at a cost ranging from $100
to $400. The CLA also notes that locksmiths carry a $1 million
liability bond along with other insurance and that for some
vehicles, such as Volvo and Lexus, the transfer of key code data
is done wirelessly in such a way that the locksmith is not able
to view or have access to the key code information at any time.
CLA also notes that transmittal of key code data is tracked, so
if a code were to be used by an unscrupulous locksmith to create
a duplicate key, such activity would be easily traced and the
perpetrator easily identified.
Automotive wholesalers and the automotive after-market industry,
also arguing in opposition to the bill, contend that in some
cases key code information is utilized to affect vehicle repair
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since information contained in electronic keys are used to
communicate with a vehicle's on-board diagnostic system. These
groups claim that if the key code information is faulty or
missing, technicians must create a new key or similar device to
properly diagnose problems and perform repairs. It is argued
that currently, this process cannot be accomplished for BMWs
because the key code information is not released. Therefore,
opponents of this bill contend that by withholding key code
information, BMW is essentially forcing BMW owners to have their
vehicles serviced at dealerships, thereby eliminating the option
for consumers to have their cars serviced at independent repair
shops. The automotive repair industry claims that this practice
violates existing law, SB 1146 (Burton), Chapter 1077, Statutes
of 2000, that ensures essential service, repair information,
parts, and tools are made available by vehicle manufacturers so
that vehicle owners have continued access to a competitive
marketplace for automotive service needs. The automotive repair
industry has expressed concerns that if this bill passes, other
vehicle manufacturers may choose to operate 24/7 key replacement
request lines which would broaden the exemption to other
manufacturers, to the detriment of consumers and the automotive
industry.
Related legislation : SB 1542 (Migden) Chapter 433, Statutes of
2006, established the process whereby a motor vehicle owner or
family member could, through the use of a registered locksmith,
access the needed information from the motor vehicle
manufacturer to enable the locksmith to reproduce a replacement
key that would allow the vehicle owner to enter, start and
operate the motor vehicle.
AB 714 (Ridley-Thomas, 2005) would have required motor vehicle
manufacturers to provide sufficient information for registered
vehicle owners to reproduce the vehicle's key. That bill died in
the Assembly Business & Professions Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Bayerische Motoren Werke (Sponsor)
California New Car Dealers Association
Opposition
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Associated Locksmiths of America, Inc.
Automobile Club of Southern California
Automotive Aftermarket Industry Association
Automotive Service Councils of California
Blue Link Diagnostic Solutions Inc.
California Automotive Business Coalition
California Automotive Wholesalers' Association
California Locksmiths Association
California State Automobile Association
Coalition for Auto Repair Equality
Lock-Man Locksmith
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093