BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 179
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  bocanegra
                                                         VERSION: 4/24/13
          Analysis by:  Eric Thronson                    FISCAL:  yes
          Hearing date:  June 18, 2013



          SUBJECT:

          Electronic transit fare collection privacy protections

          DESCRIPTION:

          This bill extends privacy protections that state law gives to  
          toll bridge or toll road users to riders of transit systems  
          employing electronic fare collection systems.

          ANALYSIS:

          Agencies operating toll bridge or toll road facilities may  
          employ an automatic vehicle identification system to facilitate  
          toll collection, such as the FasTrak transponder that is  
          commonly used in California. These systems, generally referred  
          to as electronic toll collection (ETC) systems, allow  
          subscribers to prepay tolls thereby eliminating the need to stop  
          and pay at a toll plaza.  Subscribers set up an account with the  
          tolling agency and provide personally identifiable information,  
          such as name, address, and bank account information.  In  
          addition, many toll facilities use license plate reading  
          technology to enforce toll collection.

          In 2010, the Legislature passed and the governor signed into law  
          SB 1268 (Simitian), Chapter 489, which established a framework  
          guiding how a transportation agency may use the personal  
          information of either an ETC subscriber or user of a tolled  
          facility that employs an ETC system.  The privacy protections  
          enumerated in SB 1268 include: 

             Prohibiting a transportation agency from selling or  
             otherwise providing personally identifiable information of  
             any person that subscribes to or uses an ETC system.

             Requiring a transportation agency to establish a privacy  
             policy and provide it to subscribers as well as post it on  
             their website.




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             Allowing a transportation agency to store personally  
             identifiable information for no more than four years and six  
             months for purposes of billing, account settlement, or  
             enforcement.  

             Allowing a transportation agency to provide personally  
             identifiable information to a law enforcement agency only  
             pursuant to a search warrant. 

          SB 1268 defines a transportation agency as the California  
          Department of Transportation, the Bay Area Toll Authority, any  
          entity operating a toll bridge or toll highway within the state,  
          or any entity under contract with any of the above entities.   
          Finally, SB 1268 allows a transportation agency to impose an  
          administrative fee on its subscribers to cover the cost of the  
          privacy protections contained in the bill.
          Transit operators in California have begun implementing  
          electronic transit fare collection (ETFC) systems, which are  
          systems utilizing reloadable payment cards instead of cash or  
          tokens to pay transit fares.  Subscribers often purchase the  
          cards and add value to them by providing personally identifiable  
          information such as their names, addresses, telephone numbers,  
          and bank account information.  

           This bill  extends all the privacy protections provided to toll  
          bridge and toll road users to ETFC subscribers and riders of  
          transit systems that employ ETFC systems.
          
          COMMENTS:

           1.Purpose  .  According to the author, by including subscribers of  
            ETFC systems, this bill addresses a glaring hole in the  
            privacy protections outlined in SB 1268.  The author contends  
            that someone reviewing data from an ETFC system can create a  
            more robust profile of a subscriber's everyday travels than  
            from ETC systems.  ETFC systems record when and where a  
            traveler boards public transportation, when and where he or  
            she disembarks, and how often he or she makes the trip.  This  
            information could be very valuable to marketing companies, and  
            potentially dangerous in the wrong hands.  This bill addresses  
            these concerns for transit riders the way current law resolves  
            concerns for toll road users.

           2.Does this bill address the intended concerns  ?  Existing law  
            protects the personally identifiable information of both  




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            subscribers to ETC systems as well as all other users of toll  
            bridges and roads.  This dual protection aims to address two  
            different concerns.  The ETC subscribers wanted their billing  
            information protected, in part, to keep from having their  
            information shared with third-party vendors looking to market  
            goods and services to frequent toll facility users.   
            Alternatively, non-subscribing users of toll facilities didn't  
            need to worry about the sale of billing information to  
            marketers but had other concerns, such as the use of license  
            plate readers to track their travel habits.  

            This bill seeks to mirror this dual protection aim by  
            including both subscribers of ETFC systems and riders of  
            transit operators utilizing ETFC in the definition of  
            protected individuals.  While subscribers of both ETC and ETFC  
            systems generally have parallel exposure and privacy  
            protection needs, it may not be true that users of toll  
            facilities and users of public transit share parallel  
            concerns.  Toll facility users operate vehicles attached with  
            identifiable labels, license plates, and have limited  
            interaction with fellow users.  Public transit riders are not  
            as easily tracked or identifiable as vehicles are.  These  
            differences may lead to the need to differentiate between the  
            concerns this bill is attempting to address.  

            It seems reasonable to apply privacy protections in existing  
            law to subscribers of ETFC systems, as the concerns about the  
            tracking of riders and use of billing information for  
            marketing purposes are so similar to concerns related to ETC  
            subscribers.  Applying those protections to all public transit  
            users, however, may have some unintended consequences.  For  
            example, law enforcement may need access to video surveillance  
            of transit riders but not be allowed to under this bill  
            without a search warrant, which would be cumbersome or  
            difficult to obtain in some instances.  Also, transit systems  
            subsidize their service with advertising revenue on stations  
            or in vehicles.  While not intending to, this bill may make  
            transit system law enforcement and advertising impossible  
            because under this bill all riders become protected from both  
            activities.  To address the concern of unintended  
            consequences, the committee may wish to amend the bill to only  
            apply the privacy protections to ETFC system subscribers and  
            not all users of transit operators utilizing ETFC systems.
               
           3.Double-referral  . The Rules Committee has referred this bill to  
            both this committee and the Judiciary Committee.  Therefore,  




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            if this bill passes this committee, it will be referred to the  
            Committee on the Judiciary.

           4.Technical amendment  .  

                 On page 5, line 21, strike "transportation agency" and  
               add "entity"
          
          Assembly Votes:
               Floor:    70-1
               Appr: 16-0
               Trans:    16-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 12,  
          2013.)

               SUPPORT:  Consumer Federation of California

               OPPOSED:  None received.