BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 179
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          Date of Hearing:   April 22, 2013

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                AB 179 (Bocanegra) - As Introduced:  January 24, 2013
           
          SUBJECT  :  Public transit fare collection systems:  privacy
          . 
           SUMMARY  :  Expands privacy protections currently afforded to  
          electronic toll collection subscribers to include users of  
          electronic transit fare collection systems.  Specifically,  this  
          bill  :  

          1)Expands provisions of existing law related to ensuring the  
            privacy of electronic toll collection system subscribers to  
            include users of public transit systems that employ electronic  
            transit fare collections systems.  

          2)Shortens the time period, from 4 years and six months to six  
            months, for which transportation agencies are allowed to  
            retain personally identified information, with limited  
            exceptions.  

          3)Expands the definition of "transportation agency" to include  
            any transportation agency that administers an electronic  
            transit fare collection system and any transit operator  
            participating in that system.  

          4)Defines "electronic transit fare collection system" to mean a  
            system for issuing electronic transit passes that allow  
            passengers to use the transit systems of one or more transit  
            operators without having to pay individual fares.  

           EXISTING LAW:  
           
          1)For purposes of privacy provisions related to electronic toll  
            collections systems, defines "transportation agency" as the  
            Department of Transportation, the Bay Area Toll Authority, any  
            entity operating a toll bridge, toll lane, or toll highway, or  
            any entity operating under contract with such an agency.  

          2)Prohibits transportation agencies from selling or  
            disseminating personally identifiable information about  
            persons who subscribe to an electronic toll collection system,  
            with limited exceptions.  








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          3)Requires transportation agencies that use electronic toll  
            collection systems to establish privacy policies and to  
            provide those policies to subscribers.  

          4)Authorizes transportation agencies to store specific  
            account-related information such as an account holder's name,  
            credit card number, vehicle information, and billing address;  
            all other information must be discarded within four years and  
            six months after the closure date of the billing cycle and  
            after the bill has been paid and all toll violations, if  
            applicable, have been resolved.  

          5)Requires transportation agencies to make every effort to purge  
            data on closed accounts; in no case may data be stored longer  
            than four years and six months after an account has been  
            closed or terminated.  

          6)Allows transportation agencies to make personally identifiable  
            information available to law enforcement agencies pursuant to  
            a search warrant; generally requires a law enforcement agency  
            to notify, within five days, a person that their information  
            has been obtained from a transportation agency.  

          7)Allows peace officers conducting criminal or traffic collision  
            investigations to obtain personally identifiable information  
            of subscribers without a search warrant if the officer has  
            good cause to believe that a delay in obtaining the  
            information via a search warrant would cause an adverse  
            result, as defined.  

          8)Allows transportation agencies to provide aggregated traveler  
            information derived from collective data that relates to a  
            group or category of subscribers, provided that personally  
            identifiable information has been removed.  

          9)Allows data to be shared among transportation agencies, in  
            order to comply with state inter-operability requirements for  
            electronic toll collection systems.  

          10)Authorizes a transportation agency to impose an  
            administrative fee to cover costs associated with implementing  
            these privacy requirements.  

          11)Generally provides that video recordings made by security  








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            systems on public transit systems must be retained for one  
            year.  
           
          FISCAL EFFECT  :  Unknown

           COMMENTS  :  The author introduced this bill to protect the  
          privacy of public transportation patrons who use an electronic  
          transit pass by limiting the use of personal information that is  
          collected every time the pass is swiped, or tapped.  This bill's  
          introduction follows media accounts of privacy concerns related  
          to electronic fare collection systems.  

          One such system is the "Clipper" card system used in the San  
          Francisco Bay Area.  The Clipper card allows a transit user to  
          pay fares on multiple transit systems using one card. Users can  
          add value to their card at any point or they can set up their  
          card to automatically reload whenever their pass expires or  
          their cash balance falls below $10.  Users of the Clipper card  
          are not required to register their card, however.  If a card is  
          unregistered, use of the system is linked to the card's serial  
          number only and the system has no personal information about the  
          cardholder.  

          The Clipper card privacy policy states that, for patrons who  
          choose to register their Clipper card, their personally  
          identifiable information may be disclosed to third-party service  
          providers (e.g., contractor personnel who operate and maintain  
          the Clipper card service) for the purpose of operating and  
          maintaining the Clipper system; otherwise, personal information  
          is not to be disclosed to third parties, except as required by  
          law, ordered by a court of competent jurisdiction, or where the  
          express written consent of the cardholder has been obtained.  

          The Transit Access Pass system in the Los Angeles area and the  
          Compass card system in the San Diego area operate similar to the  
          Clipper card system and both have nearly identical privacy  
          policies.  

          Writing in support of AB 179, the American Civil Liberties Union  
          (ACLU) argues, "Location privacy issues are of serious concern  
          to the ACLU.  [AB 179] extends the privacy protections already  
          in place to another transit system that creates and stores  
          digital records of people's movements.  Divorce lawyers and law  
          enforcement agencies are very interested in obtaining records of  
          individual's movements.  It's important to have clear and  








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          consistent standards in place."  

          Opponents of this bill raise a number of concerns related to  
          safety, data retention, and interoperability.  For example, both  
          the Orange County Transportation Authority (OCTA) and the  
          Riverside Transit Agency are opposing the bill, in part, because  
          they believe the bill will hinder their ability to share video  
          surveillance information captured on its buses with police  
          without a search warrant or good cause.  Both agencies are  
          concerned that delaying the release of this information poses a  
          safety risk to the community by impeding successful apprehension  
          of criminals or successful recovery of missing persons.  

          Opponents also assert that this bill establishes arbitrary data  
          retention deadlines and purge requirements (from four years and  
          six months to six months) that are costly to implement, harm  
          their ability to provide customer service, and create legal  
          complications that will create hardships for both their  
          customers and their agencies.  

          Finally, OCTA is concerned that this bill is silent with regard  
          to authorizing data to be shared between transit operators for  
          purposes of interoperability.  It asserts that, since  
          interoperability is specifically authorized for electronic toll  
          collections systems, lack of similar provisions for electronic  
          fare collection systems may imply that such interoperability  
          amongst transit operators is not authorized.  

           Suggested amendments:   

          1)There is ambiguity about whether the bill's provisions apply  
            to the use and release of video surveillance data.  Other  
            provisions exist elsewhere in statute to govern video  
            surveillance data retention requirements for public transit  
            systems but it is unclear what, if any, provisions are in  
            place to prohibit the release of these data (for example, just  
            to law enforcement and only with a warrant).  The author may  
            wish to clarify this issue.  

          2)The issue of allowable data retention periods was argued  
            vociferously in 2010 when SB 1268 (Simitian) was being debated  
            before the Legislature.  SB 1268 originally proposed to allow  
            transportation agencies only 60 days to purge data.   
            Transportation agencies strongly opposed that provision,  
            arguing that, under an existing four-year statute of  








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            limitations for civil actions, shortened data retention  
            periods would allow consumers to question their toll charges  
            for up to four years after the date of the activity but would  
            remove the opportunity for toll operators to retain  
            information to support charging the tolls or to otherwise  
            provide documented evidence to establish a defense in a civil  
            action.  SB 1268 later passed the Legislature and was signed  
            by the Governor (Chapter 489, 2010) with a four year, six  
            months data retention limit.  

            Like SB 1268 proposed initially, this bill would impose overly  
            aggressive purge requirements.  The allowable data retention  
            period should be restored to existing law (i.e., to four years  
            and six months) so it mirrors the timeframes set forth in the  
            statute of limitations.  This will provide a regular, routine  
            purging of personal data but within timeframes that do not  
            invite jeopardy for transportation agencies in civil actions.   
            The author has indicated his intent to take an amendment in  
            committee to restore the data retention period to four years  
            and six months.  

          3)Regarding interoperability between transit operators that use  
            electronic fare collection systems, the author may wish to  
            clarify that, with respect to these systems, the bill does not  
            prohibit the sharing of data between transportation agencies  
            for the sole purpose of interoperability between the agencies.  
             

           Previous legislation  : AB 839, Chapter 564, Statutes of 2003,  
          provides that videotapes or recordings made by a security camera  
          system operated as part of a public transit system must be  
          retained for one year.  

          SB 1268 (Simitian) Chapter 489, Statutes of 2010, imposed  
          privacy protections on electronic toll collection systems.  

           Double Referral  :  This bill is also referred to the Assembly  
          Judiciary Committee.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Civil Liberties Union
          Privacy Rights Clearinghouse








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           Opposition 
           
          Orange County Transportation Authority
          Riverside Transit Agency
          Transportation Corridor Agencies of Orange County
          

          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093