BILL ANALYSIS                                                                                                                                                                                                    �






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


          SB 1330 (Simitian)
          As Amended March 29, 2012
          Hearing Date: April 24, 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 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 impose restrictions on private entities, 
          including restrictions on retention, use, and sale of LPR data.
                                                                      



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          (This analysis reflects author's amendments to be offered in 
          Committee.)

                                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 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 
                                                                      



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            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
           
           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  . . .   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.   
                                                                      



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           . . . 

           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) 
          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.  Author's amendments to delete restrictions on use of LPR 
            technology by state and local law enforcement agencies  

                                                                      



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          Under existing law, the California Highway Patrol is restricted 
          in its use of LPR technology.  As currently in print, 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.  In response to 
          concerns raised, the author is proposing to delete this section 
          of the bill related to state and local law enforcement agencies. 
           At the time of the writing of this analysis, it is not clear 
          how this amendment will affect the position of opponents, 
          although the author's office indicates that some opponents will 
          remove their opposition based on the amendment.  The amendment 
          is as follows: 

             Author's amendments  :

            On page 2, delete lines 1 - 13

            On page 3, delete lines 1 - 31  

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



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           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 persons 
            other than state and local law enforcement agencies (the 
            current 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 
          Contract Cities Association; California District Attorneys 
          Association; California Fraternal Order of Police; California 
          Narcotic Officers' Association; California Police Chiefs 
                                                                               Association; California Public Parking 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; San Bernardino County Sheriff's 
          Office; Santa Ana Police Officers Association


                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known
                                                                      



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           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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