BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          SB 1330 (Simitian)
          As Amended March 29, 2012
          Hearing Date: April 17, 2012
          Fiscal: Yes
          Urgency: No
           SK:rm
                    

                                        SUBJECT
                                           
             License Plate Recognition Technology: Personal Information 

                                      DESCRIPTION  

          This bill would place restrictions on the use of license plate 
          recognition (LPR) technology by state and local law enforcement 
          agencies and private entities, including restrictions on the 
          retention, use, and sale of such data.  

                                      BACKGROUND  
               
          License plate technology uses cameras and computer technology to 
          record license plate information of vehicles.  The cameras are 
          either mobile (e.g., attached to the outside of a vehicle) or 
          stationary, and the images they collect of license plate numbers 
          are converted into computer-readable data which is then 
          instantly checked against various databases such as the National 
          Crime Information Center (NCIC).  LPR technology captures other 
          data as well, including the geographic location of the vehicle 
          and the time and date that it is scanned.  This information can 
          then be retained in a database.  The technology works at 
          lightning speed; one company, VeriPlate, indicates that its 
          cameras can capture one license plate every second.

          Law enforcement uses LPR technology to identify and locate 
          stolen vehicles or compare the information obtained against 
          databases of outstanding warrants.  Auto repossession companies 
          take advantage of LPR technology to help find debtors who are 
          behind on their car payments.  In January 2012, a California 
          Watch article entitled "Private company hoarding license-plate 
          data on US drivers" noted: 
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              Capitalizing on one of the fastest-growing trends in law 
              enforcement, a private California-based company has compiled 
              a database bulging with more than 550 million license-plate 
              records on both innocent and criminal drivers that can be 
              searched by police.  . . .  �P]olice around the country have 
              been affixing high-tech scanners to the exterior of their 
              patrol cars, snapping a picture of every passing license 
              plate and automatically comparing them to databases of 
              outstanding warrants, stolen cars, and wanted bank robbers.  
              The units work by sounding an in-car alert if the scanner 
              comes across a license plate of interest to police, whereas 
              before, patrol officers generally needed some reason to take 
              an interest in the vehicle, like a traffic violation.

              But when a license plate is scanned, the driver's geographic 
              location is also recorded and saved, along with the date and 
              time, each of which amounts to a record or data point.  Such 
              data collection occurs regardless of whether the driver is a 
              wanted criminal, and the vast majority are not.

              While privacy rules restrict what police can do with their 
              own databases, Vigilant Video, headquartered in Livermore, 
              Calif., offers a loophole.  It's a private business not 
              required to operate by those same rules.  . . .  Vigilant 
              distinguished itself from competitors by going one step 
              further and collecting hundreds of millions of scans to 
              create what's known as the National Vehicle Location 
              Service.  A West Coast sales manager for the company, Randy 
              Robinson, said the scanners - as well as data from them 
              compiled in the location system - do far more than simply 
              help identify stolen vehicles.  Stories abound of the 
              technology also being used by police to stop wanted killers, 
              bank robbers, and drug suspects.  Kidnappers could be 
              intercepted, too.

          Existing law restricts the use of LPR technology by the 
          California Highway Patrol (CHP).  In 2011, the Legislature 
          passed and the Governor signed AB 115 (Committee on Budget, Ch. 
          38, Stats. 2011), the transportation budget trailer bill, which 
          allows the CHP to retain data captured by LPR technology for no 
          more than 60 days except as specified.  AB 115 also prohibited 
          the CHP from selling the data or making it available to anyone 
          other than law enforcement.  

          This bill would apply similar requirements to state and local 
                                                                      



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          law enforcement agencies, and also would impose restrictions on 
          private entities, including restrictions on retention, use, and 
          sale of LPR data.

                                CHANGES TO EXISTING LAW
           
           Existing law  , the California Constitution, provides that all 
          people have inalienable rights, including the right to pursue 
          and obtain privacy.  (Cal. Const. Art. I, Sec. 1.)  

           Existing law  permits the CHP to retain license plate data 
          captured by a license plate reader for no more than 60 days, 
          except in circumstances when the data is being used as evidence 
          or for all felonies being investigated, including, but not 
          limited to, auto theft, homicides, kidnaping, burglaries, elder 
          and juvenile abductions, Amber Alerts, and Blue Alerts.  (Veh. 
          Code Sec. 2413(b).) 

           Existing law  prohibits the CHP from selling LPR data for any 
          purpose and making it available to an agency that is not a law 
          enforcement agency or an individual who is not a law enforcement 
          officer.  The data may be used by a law enforcement agency only 
          for purposes of locating vehicles or persons when either are 
          reasonably suspected of being involved in the commission of a 
          public offense.  (Veh. Code Sec. 2413(c).)

           Existing law  requires the CHP to monitor internal use of the LPR 
          data to prevent unauthorized use.  (Veh. Code Sec. 2413(d).)

           Existing law  requires the CHP to report to the Legislature its 
          LPR practices and usage, including the number of LPR data 
          disclosures, a record of the agencies to which data was 
          disclosed and for what purpose, and any changes in policy that 
          affect privacy concerns.  (Veh. Code Sec. 2413(e).)

           This bill  would apply all of the above to state and local law 
          enforcement agencies, other than the CHP, except that the bill 
          would require the report on the agency's use of LPR to be 
          submitted to the state or local agency that governs the law 
          enforcement agency.

           This bill  would require state and local law enforcement agencies 
          to adopt a privacy policy to ensure that personally identifiable 
          information is not unlawfully disclosed and post that policy on 
          the agency's Internet Web site.

                                                                      



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           This bill  would impose the following restrictions on any person 
          who uses LPR technology other than a state or local law 
          enforcement agency: 

           The person shall not retain license plate data captured by LPR 
            technology for more than 60 days; 
           The person shall not sell LPR data for any purpose and shall 
            not make the data available to an agency or person that is not 
            a law enforcement agency or officer;
           The person shall make data available to a law enforcement 
            agency only pursuant to a search warrant.  Unless the search 
            warrant contains a provision to the contrary, the law 
            enforcement agency shall immediately, but within no more than 
            five days, notify the person whose information was disclosed 
            that his or her records have been obtained.  The bill requires 
            the agency to give a copy of the search warrant to the person 
            and include the identity of the agency or officer who received 
            the records; and
           The person must allow a peace officer who is conducting a 
            criminal or traffic collision investigation to obtain 
            personally identifiable information of a person if the officer 
            has good cause to believe that a delay in obtaining the 
            information by seeking a search warrant would cause an adverse 
            result, as specified. 

           This bill  would require a person using LPR technology to monitor 
          the internal use of LPR data to prevent its unauthorized use.

           This bill  would require a person using LPR technology to adopt a 
          privacy policy to ensure that personally identifiable 
          information is not unlawfully disclosed.
           This bill  would require a person using LPR technology to report 
          annually to the Department of Justice on its LPR practices and 
          usage, including the number of LPR data disclosures, a record of 
          the law enforcement agencies or peace officers to which data was 
          disclosed and for what purpose, and any changes in policy that 
          affect privacy concerns.  

           This bill  would provide that any person whose information is 
          sold or disclosed in violation of the bill's provisions relating 
          to the use of LPR technology by persons other than a state or 
          local law enforcement agency may bring a civil action and shall 
          be entitled to recover any and all consequential and incidental 
          damages, including all costs and attorney's fees.

                                        COMMENT
                                                                      



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           1.Stated need for the bill  

          In support of the bill, the author writes: 

           There is no regulation on the use of license-plate recognition 
           technology and data by local law enforcement, or private 
           entities. While the California Highway Patrol is subject to 
           regulation, local law enforcement and private entities have 
           unfettered access to this technology. The lack of regulation 
           creates significant risks.  The International Association of 
           Chiefs of Police conducted the most thorough examination of law 
           enforcement's use of LPR technology in 2009, and identified 
           privacy risks including improper disclosure of data, chilling 
           effects on social and political activity, restriction of 
           recognized access to anonymous exercise of First Amendment 
           rights, and several dignitary harms. 

           Similarly, a 2010 study from the Center for Evidence-Based 
           Crime Policy at George Mason University argued that law 
           enforcement's use of LPR lacks scrutiny. The study found, 
           "Speculation exists over the legal and legitimacy implications 
           of LPR use. Yet, despite the pressing need for answers to these 
           questions, few agencies or researchers have examined these 
           concerns." The report added, "Our national survey of police 
           agencies indicates that only 28.5% of agencies researched the 
           legal implications of the technology before adopting LPR." 

           For the private sector, the problems are even more acute. LPR 
           cameras enable private entities to commodify data on the 
           movements and habits of law-abiding citizens. Such entities use 
           "scout cars" that cruise city streets, parking lots, and 
           highways to track all of the surrounding vehicles. A "scout 
           car" of this sort can record data on more than 10,000 license 
           plates in just 8 hours.   As a result, multiple private 
           entities possess well over half a billion LPR records. One 
           company claims to scan 40 percent of the vehicles in the 
           country on an annual basis (Vigilant Video); another says that 
           it captures data on 50 million vehicles each month (MVTrac). 
           This data is typically sold to financial institutions, 
           repossession companies, and private investigators.   

          This bill is supported by the Consumer Federation of California 
          which writes that the measure will "safeguard Californians' 
          constitutional right to individual privacy by reining in the 
          use, and increasing abuse, of license-plate recognition (LPR) 
                                                                      



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          software on both innocent and criminal drivers.  . . .  Innocent 
          Californians should not be having their vehicles monitored, 
          potentially tracked, and that data stored and then sold for 
          profit to third parties like asset recovery companies and 
          financial institutions (among others) - all without their 
          knowledge or consent."

          The California Partnership to End Domestic Violence writes:

            LPR technology could be used by an abusive partner to track 
            the victim's whereabouts.  Research indicates that at least 
            one in four victims of stalking report that the offender used 
            some form of technology.  However, this is likely an 
            underestimate of the actual rates since offenders can use many 
            forms of technologies against a victim without the victim's 
            knowledge, such as LPR technology. 

          Gun Owners of California also supports the bill writing that 
          "LPR records can be sold to any person or organization for any 
          purpose.  This poses public safety risks and threatens 
          Californian's constitutional right to privacy, especially since 
          LPR data is acquired without consent."

          2.  Restrictions on use of LPR technology by state and local law 
            enforcement agencies  

          Under existing law, the California Highway Patrol is restricted 
          in its use of LPR technology.  This bill would place similar 
          restrictions on the use of the technology by state and local law 
          enforcement agencies, including: (1) specifying how long the 
          agencies may retain data obtained using LPR technology; (2) 
          prohibiting the sale of the data and limiting its availability; 
          and (3) ensuring several other privacy-related protections are 
          in place. 
          
              a.   Retention of data captured by LPR technology
           
            Existing law allows the CHP to retain license plate data 
            captured by LPR technology for no more than 60 days, except in 
            circumstances when the data is being used as evidence or for 
            all felonies being investigated, including, but not limited 
            to, auto theft, homicides, kidnaping, burglaries, elder and 
            juvenile abductions, Amber Alerts, and Blue Alerts.  This bill 
            would impose this same restriction on state and local law 
            enforcement agencies when they retain license plate data using 
            LPR technology.  
                                                                      



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            This provision of the bill is meant to address the concern 
            that once license plate information is scanned and searched 
            against a database and no match is made (i.e., the vehicle is 
            not stolen and there are no outstanding warrants on the 
            registered owner), that information should be disposed of and 
            should not be retained.  The bill would allow state and local 
            law enforcement agencies to retain the information for up to 
            60 days which allows time for an investigation to proceed, if 
            necessary.  In addition, the law enforcement agency may keep 
            the information without limitation when it is being used as 
            evidence or for the investigation of a felony.

            Opponents to the measure raise particular concern about this 
            provision.  Specifically, the Association for Los Angeles 
            Deputy Sheriffs writes: 

               This information is used differently by local law 
               enforcement and is often used many months after it is 
               obtained in order to establish an individual's identity or 
               to prove their guilt many months or even years after the 
               commission of a crime.  To require local law enforcement to 
               relinquish, rather than file, this data is a severe 
               hindrance to our public safety obligation.  The CHP is 
               primarily a traffic enforcement office and their obligation 
               to investigate other criminal matters is not the same as 
               that imposed on local law enforcement. 

            While the author has indicated a willingness to work with the 
            opposition to address this concern, at the time of the writing 
            of this analysis, no agreement had been reached by the 
            parties.  Although the author appears open to a more lenient 
            retention requirement to address law enforcement's concerns, 
            the opposition has indicated its desire for no retention 
            period at all.  Such a provision would permit state and local 
            law enforcement to retain information obtained by LPR 
            technology indefinitely, possibly forever, without any real 
            data demonstrating the need for such a lengthy retention 
            period.  The author, in particular, notes that a retention 
            restriction is necessary for the following reasons:

               First, the bill already exempts data that is being used as 
               evidence, or for the investigation of a felony, from the 
               retention period.   Second, the International Association 
               of Chiefs of Police �IACP] conducted a study of LPR 
               technology in 2009 and found that, "there is considerable 
                                                                      



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               need to establish a set of guidelines, including standard 
               criteria" for data retention policies. Currently, there are 
               widely varying retention policies across the state; some 
               departments retain data for just a few weeks, while others 
               retain it indefinitely. 

               Third, the IACP study also pointed out that retaining a 
               vast amount of LPR data "may undermine the usefulness" of 
               an LPR system. The study added, "�n]ot only might it take 
               longer for the system to search its vast repository of 
               data, but the system might also return too much information 
               for a user to sort through effectively." It is also costly 
               for locals to store more data.  Fourth, other states have 
               even shorter retention periods, such as a 21-day retention 
               period in Maine. New Hampshire altogether prohibits public 
               entities from collecting LPR data, and CHP previously had 
               an internal policy of deleting the data after just 72 
               hours. 

            b.    Prohibition on sale of the data and limitations on its 
            availability 
           
            Under existing law, the CHP is prohibited from selling LPR 
            data for any purpose and making it available to an agency that 
            is not a law enforcement agency or an individual who is not a 
            law enforcement officer.  The data may be used by a law 
            enforcement agency only for purposes of locating vehicles or 
            persons when either are reasonably suspected of being involved 
            in the commission of a public offense.    This bill would 
            impose these same restrictions on state and local law 
            enforcement agencies when they retain license plate data using 
            LPR technology.  

            c.    Other privacy protections 
           
            Existing law requires the CHP to monitor internal use of LPR 
            data to prevent unauthorized use and report to the Legislature 
            its LPR practices and usage, including the number of LPR data 
            disclosures, a record of the agencies to which data was 
            disclosed and for what purpose, and any changes in policy that 
            affect privacy concerns.  This bill would impose these same 
            requirements on state and local law enforcement agencies, 
            except that the reporting requirement is revised slightly so 
            that the report on the agency's use of LPR must be submitted 
            to the state or local agency that governs the law enforcement 
            agency.  The League of California Cities submitted a "Notice 
                                                                      



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            of Initial Opposition" to the bill and highlighted its 
            concerns with this reporting requirement, stating ". . . the 
            measure requires on-going tracking, posting, and reporting 
            mechanisms for local (and state) law enforcement agencies, to 
            be reported to the appropriate oversight body, regardless if 
            that body has requested the information.  These are not 
            automatically generated reports but time-consuming and 
            unnecessary steps, duplicative of a local council's ability to 
            request such actions should the need arise."  It would seem, 
            on the other hand, that these reports could contain helpful 
            information that a council, or other governing agency, could 
            use to determine whether any issues exist concerning a state 
            or local law enforcement agency's use of LPR technology.  

            This bill would also require state and local law enforcement 
            agencies that use LPR technology to adopt a privacy policy to 
            ensure that personally identifiable information is not 
            unlawfully disclosed and post that policy on the agency's 
            Internet Web site.

          3. Restrictions on use of LPR technology by non-law enforcement 
            entities  

          This bill would impose restrictions on the use of LPR technology 
          by non-law enforcement entities, including any person, firm, 
          co-partnership, association, limited liability company, or 
          corporation.  Similar to state and local law enforcement 
          agencies, these private entities would be restricted in their 
          use of LPR technology as described in more detail below.


              a.   Retention of data captured by LPR technology
           
            This bill would prohibit any person who is not a state or 
            local enforcement agency and who uses LPR technology from 
            retaining license plate data captured by LPR technology for 
            more than 60 days.  Unlike the similar retention restriction 
            imposed on state and local law enforcement agencies, this 
            provision does not contain an exception if the information is 
            being used as evidence or in the investigation of a felony.  

            This provision of the bill is intended to address the use of 
            LPR technology to capture and retain information about 
            individuals.  A supporter of the bill, the American Civil 
            Liberties Union (ACLU) notes that the technology allows 
            companies to "possess millions of LPR data points establishing 
                                                                      



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            the location of millions of individuals."  The ACLU further 
            writes: 

               This volume of LPR data can provide a roadmap to an 
               individual's personal life including his or her movements, 
               activities, medical conditions, friendships, religious 
               practices, vocation, political beliefs, etc.  This poses a 
               serious risk to Californians' constitutional right to 
               privacy, especially since LPR data is acquired without an 
               individual's knowledge or consent.

            This provision of the bill is also intended to address the 
            profit incentive under existing law-which has no specific 
            restrictions on this kind of behavior-for companies to 
            surreptitiously obtain license plate data using LPR technology 
            and then retain that information in a database that is 
            searchable and the information contained within is made 
            available for a cost to others.  By limiting how long private 
                                  entities may retain this information-and in combination with 
            the restrictions on sale noted below-this bill would have the 
            effect of restricting the practice of using LPR technology to 
            capture individuals' personal information that is then stored 
            in a database for later access.

            In fact, the author indicates that two private entities that 
            currently use LPR technology, MVTrac and Vigilant Video, have 
            raised concerns that the bill would "eliminate their ability 
            to use LPR to locate vehicles and individuals on behalf of 
            financial institutions, repossession companies, and other 
            purchasers of LPR data."  The author responds to this concern, 
            stating: 

               We should not accept a business practice just because it 
               facilitates asset recovery or private investigations. 
               Attaching a GPS to every vehicle would, for example, make 
               asset recovery even simpler; but because it violates our 
               right to privacy and creates serious risks, we don't allow 
               it.

               Widespread use of LPR creates similar risks. The privacy 
               risks associated with law enforcement's acquisition of LPR 
               data are more acute in the private sector; LPR data may be 
               improperly disclosed, improperly used, sold to private 
               investigators or bad actors, and its acquisition creates 
               chilling effects on behaviors including political, 
               religious, and personal activities. 
                                                                      



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               More generally, this practice commodifies our everyday 
               movements, and creates a profit incentive to track 
               law-abiding citizens without their knowledge or consent.   

            b.    Prohibition on sale of the data and limitations on its 
            availability 
          
            Under this bill, any person who is not a state or local 
            enforcement agency and who uses LPR technology may not sell 
            LPR data for any purpose and shall not make the data available 
            to an agency or person that is not a law enforcement agency or 
            officer.  In addition, the LPR data can only be turned over to 
            a law enforcement agency pursuant to a search warrant.  The 
            bill provides that, unless the search warrant contains a 
            provision to the contrary, the law enforcement agency shall 
            immediately, but within no more than five days, notify the 
            person whose information was disclosed that his or her records 
            have been obtained.  The bill requires the agency to give a 
            copy of the search warrant to the person and include the 
            identity of the agency or officer who received the records.  

            The California District Attorneys Association objects to this 
            provision of the bill, writing:

               Our opposition stems from the fact that district attorneys 
               presently obtain the data in question without the use of a 
               search warrant and that adding a search warrant requirement 
               is unduly burdensome.  Additionally, we are concerned about 
               the requirement that mandates law enforcement to notify the 
               person whose information has been disclosed unless each 
               search warrant contains a provision to the contrary.  This 
               requirement, notwithstanding the exigent circumstance 
               provision in the bill, could have the effect of 
               jeopardizing and/or delaying an ongoing criminal 
               investigation and/or prosecution. 

            Staff notes that the provision at issue is based on existing 
            law.  In 2010,  SB 1268 (Simitian, Ch. 489, Stats. 2010) was 
            enacted to prohibit transportation agencies from selling, or 
            providing to any other person, the personally identifiable 
            information of either subscribers of an electronic toll 
            collection system or anyone who uses a toll bridge, lane, or 
            highway that utilizes an electronic toll collection system.  
            SB 1268 provided that the personal information could only be 
            given to a law enforcement agency pursuant to a search 
                                                                      



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            warrant.  The measure also specified that absent a provision 
            in the search warrant to the contrary, the law enforcement 
            agency shall immediately, but in any event within no more than 
            five days, notify the person that his or her records have been 
            obtained.  SB 1268 also required the law enforcement agency to 
            provide the person with a copy of the search warrant and the 
            identity of the law enforcement agency or peace officer to 
            whom the records were provided.  This bill uses this same 
            language. 
            In addition, this bill also would permit a peace officer who 
            is conducting a criminal or traffic collision investigation to 
            obtain personally identifiable information of a person if the 
            officer has good cause to believe that a delay in obtaining 
            the information by seeking a search warrant would cause an 
            adverse result.  As a result, in appropriate circumstances, 
            the bill would allow information to be disclosed without a 
            search warrant.  

            c.    Other privacy protections 
           
            This bill also would impose other privacy protections on 
            persons who use LPR technology to capture license plate data, 
            including that the person must monitor the internal use of LPR 
            data to prevent its unauthorized use.  The bill would require 
            the person to adopt a privacy policy to ensure that personally 
            identifiable information is not unlawfully disclosed.  And, 
            the person would be required to report annually to the 
            Department of Justice on its LPR practices and usage, 
            including the number of LPR data disclosures, a record of the 
            law enforcement agencies or peace officers to which data was 
            disclosed and for what purpose, and any changes in policy that 
            affect privacy concerns.  

            Importantly, the bill also contains an enforcement mechanism 
            to address misuse of LPR technology by persons other than a 
            state or local agency.  Under this bill, any person whose 
            information is sold or disclosed in violation of the bill's 
            provisions may bring a civil action and shall be entitled to 
            recover any and all consequential and incidental damages, 
            including all costs and attorney's fees.

          4.  Technical amendments needed  

           On page 2, line 13, after "with" insert "all applicable 
            statutory and constitutional requirements and"

                                                                      



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           On page 3, line 34, after "with" insert "all applicable 
            statutory and constitutional requirements and"

           On page 4, line 7, delete "subparagraph" and insert 
            "paragraph"

           This bill currently adds new sections of law to Chapter 2 in 
            the Vehicle Code.  The entirety of that Chapter deals with the 
            California Highway Patrol, including the restrictions on the 
            CHP's use of LPR technology added by AB 115.  The provisions 
            added by this bill, however, do not apply to the CHP, and the 
            bill should therefore be amended to relocate the new 
            provisions of law to more appropriate locations in the code.  

          As a result, the provisions of the bill relating to state and 
            local law enforcement agencies (Section 1 of the bill) should 
            be moved to a new Chapter 3 in the Vehicle Code and the 
            provisions dealing with persons other than state and local law 
            enforcement agencies (Section 2 of the bill)  should be moved 
            to the Civil Code to create a new Title 1.81.20 regarding "Use 
            of License Plate Reader Technology." 


           Support  :  American Civil Liberties Union; California Partnership 
          to End Domestic Violence; California Public Interest Research 
          Group (CALPIRG); Consumer Federation of California; Electronic 
          Frontier Foundation; Gun Owners of California; Privacy Rights 
          Clearinghouse 

           Opposition  :  Association for Los Angeles Deputy Sheriffs; 
          Association of Orange County Deputy Sheriffs; California 
          District Attorneys Association; California Fraternal Order of 
          Police; California Narcotic Officers' Association; California 
          Police Chiefs Association; California State Sheriffs' 
          Association; Chief Probation Officers of California; City of 
          Beverly Hills; League of California Cities (initial opposition); 
          Long Beach Police Officers Association; Los Angeles County 
          Professional Peace Officers Association; Los Angeles County 
          Sheriff; Los Angeles Police Protective League; MuniServices; 
          Riverside Sheriffs' Association; Sacramento County Deputy 
          Sheriffs' Association; Santa Ana Police Officers Association


                                        HISTORY
           
           Source  :  Author
                                                                      



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           Related Pending Legislation  :  None Known

           Prior Legislation  :

          AB 115 (Committee on Budget, Ch. 38, Stats. 2011) (See 
          Background.)

          SB 1268 (Simitian, Ch. 489, Stats. 2010) (See Comment 3b.) 

           Prior Vote  :

          Senate Transportation and Housing Committee (Ayes 5, Noes 3) 

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