BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          SB 893 (Hill)
          As Amended April 9, 2014
          Hearing Date: April 22, 2014
          Fiscal: Yes
          Urgency: No
          TH


                                        SUBJECT
                                           
              Automated License Plate Recognition Systems: Use of Data

                                      DESCRIPTION 

          This bill would place restrictions on the use of Automated  
          License Plate Recognition (ALPR) technology by both public and  
          private sector users.  Specifically, this bill would:
           require retained ALPR data to consist only of a license plate  
            number, date and time of capture, and geographical location;
           prohibit ALPR operators from trespassing onto private property  
            to collect ALPR data without first obtaining written consent  
            of the landowner;
           prohibit any public agency from sharing ALPR data with any  
            private entity or individual absent a court order;
           prohibit any person authorized to access or distribute ALPR  
            data from further disclosing or otherwise providing that  
            information to any other person;
           require specific data security protocols for the storage of  
            ALPR data and require entities that use or store ALPR data to  
            keep an access log;
           add ALPR data to the list of personal information subject to  
            California's Data Breach Notification Law;
           establish that ALPR data alone may not be used to establish  
            probable cause for a search or arrest warrant; and
           create a private right of action to enforce these  
            restrictions, and allow for the recovery of actual or  
            statutory damages, attorney's fees, and costs of suit.

                                      BACKGROUND  


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          Automated License Plate Recognition (ALPR) systems use either  
          mobile (e.g., attached to the outside of a vehicle) or  
          stationary cameras and sophisticated computer software to  
          capture and record a vehicle's license plate information.  These  
          systems typically operate by photographing an image of a license  
          plate, use character recognition software to convert the image  
          into the alpha-numeric characters of the license plate, and then  
          compare the alpha-numeric data to data held in other databases  
          to, for example, instantly identify stolen cars or locate  
          vehicles subject to repossession.  ALPR systems capture other  
          data as well, including the geographic location of a license  
          plate and the time and date that the license plate was scanned.   
          Using this additional ALPR captured data, it is possible over  
          time and with multiple scans to construct the locational history  
          of scanned vehicles.  The technology works at lightning speed;  
          one company, ELSAG North America, advertises that its  
          vehicle-based ALPR system can capture up to 1,800 license plate  
          reads per minute, day or night, can capture data from parked and  
          moving vehicles across up to 4 lanes of traffic, day or night  
          and in any weather, and can read license plate data at moving  
          speeds of up to 150 mph (241 kph).  (See http://elsag.com  
          /mobile.htm (as of April 14, 2014).)

          Law enforcement uses ALPR technology to identify and locate  
          stolen vehicles and to compare information obtained against  
          databases of outstanding warrants.  Auto repossession companies  
          take advantage of ALPR 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:

            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.


                                                                      




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            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.  (Schulz,  
            Private Company Hoarding License-Plate Data on US Drivers  
            (January 12, 2012)   
            (as of April 14, 2014).)
          Vigilant Solutions, the company featured in the California Watch  
          article, now advertises that its database of license plate  
          records obtained from commercial sources now includes "over 1.8  
          billion detections and grows at a rate of almost 70 million per  
          month."  (See http://vigilantsolutions.com/products/nvls (as of  
          April 14, 2014).)

          Existing law restricts the use of ALPR 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 ALPR systems 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 agencies.

          This bill would impose a number of restrictions on the use of  
          ALPR technology and ALPR system-derived data.  Specifically,  
          this bill would specify that data retained by an ALPR system  
          shall consist only of a license plate number, date and time of  
          capture, and geographical location, would prohibit ALPR  
          operators from trespassing onto private property to collect ALPR  
          data without first obtaining written consent of the landowner,  

                                                                      




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          would prohibit public agencies from sharing ALPR data with any  
          private entity or individual absent a court order, and would  
          prohibit any person authorized to access or distribute ALPR data  
          from further disclosing or otherwise providing that information  
          to any other person.  Additionally, this bill would require  
          specific data security protocols for the storage of ALPR data  
          and require entities that use or store ALPR data to keep an  
          access log, would add ALPR data to the list of personal  
          information subject to California's Data Breach Notification  
          Law, and would establish that ALPR data alone may not be used to  
          establish probable cause for a search or arrest warrant.  In  
          addition to any other remedies, this bill would also allow  
          aggrieved individuals to recover actual or statutory damages,  
          attorney's fees, and costs of suit against a person who violates  
          the bill's provisions.

                                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 ALPR 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  
          ALPR data to prevent unauthorized use.  (Veh. Code Sec.  
          2413(d).)

           Existing law  requires the CHP to report to the Legislature its  
          ALPR practices and usage, including the number of ALPR data  
          disclosures, a record of the agencies to which data was  
          disclosed and for what purpose, and any changes in policy that  

                                                                      




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          affect privacy concerns.  (Veh. Code Sec. 2413(e).)
           
          This bill  would prohibit an ALPR operator, as defined, from  
          using an ALPR system to collect any information or data other  
          than the license plate number, the date and time the information  
          or data is collected, and the location coordinates where the  
          information or data is collected, and would prohibit the  
          collection of this information or data from a license plate  
          number that is not in public view.

           This bill  would prohibit an ALPR operator from trespassing or  
          otherwise entering upon private property to collect information  
          or data for commercial purposes through the use or operation of  
          an ALPR system without first obtaining written consent from the  
          owner of the private property, or the owner's designated agent.

           This bill  would state that a public agency shall not disclose,  
          distribute, make available, sell, access, or otherwise provide  
          for another purpose, information or data collected through the  
          use or operation of an ALPR system to any private entity or  
          individual unless authorized by a court order, or as part of  
          civil or criminal discovery.

           This bill  would state that unless authorized by this title or  
          another law, a person authorized to access or distribute  
          information or data collected through the use or operation of an  
          ALPR system shall not further disclose, distribute, make  
          available, sell, access, or otherwise provide that information  
          or data to another person for any purpose.

           This bill  would state that information or data collected through  
          the use or operation of an ALPR system shall not be the sole  
          basis for establishing probable cause to obtain a search or  
          arrest warrant.

           This bill  would require an ALPR operator to ensure that the  
          information or data collected through the use or operation of  
          the ALPR system is protected with reasonable operational,  
          administrative, technical, and physical safeguards to ensure its  
          confidentiality and integrity.

           This bill  would require an ALPR operator to implement and  
          maintain reasonable security procedures and practices  
          appropriate for the nature of the information or data collected  
          via an ALPR system, in order to protect the information or data  

                                                                      




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          from unauthorized access, destruction, use, modification, or  
          disclosure.

           This bill  would require an ALPR operator to implement and  
          maintain a usage and privacy policy in order to ensure that the  
          information or data collected through the use or operation of  
          the ALPR system is consistent with respect for individuals'  
          privacy and civil liberties.  This bill would specify that the  
          usage and privacy policy shall be available in writing, and, if  
          the ALPR operator has an Internet Web site, the usage and  
          privacy policy shall be posted conspicuously on that Internet  
          Web site.

           This bill  would add unencrypted information or data collected  
          through the use or operation of an ALPR system to the list of  
          personal information subject to breach notification under  
          California's Data Breach Notification Law.  

           This bill  would require an ALPR operator to maintain a record of  
          access if the ALPR operator accesses or provides access to  
          information or data collected through the use or operation of an  
          ALPR system.  This bill would specify that at a minimum, the  
          record shall include, but not be limited to, all of the  
          following:
           The date and time the information or data is accessed;
           The person who accesses the information or data; and
           The purpose for accessing the information or data.

           This bill  would provide that in addition to any other sanctions,  
          penalties, or remedies provided by law, an individual may bring  
          a civil action in any court of competent jurisdiction against a  
          person who knowingly obtains, discloses, or uses information or  
          data collected through the use of an ALPR system for a purpose  
          not authorized by this bill.  This bill would further provide  
          that a court may award all of the following:
           Actual damages, but not less than liquidated damages in the  
            amount of two thousand five hundred dollars ($2,500);
           Punitive damages upon proof of willful or reckless disregard  
            of the law;
           Reasonable attorney's fees and other litigation costs  
            reasonably incurred; and
           Other preliminary and equitable relief as the court determines  
            to be appropriate.

                                        COMMENT

                                                                      




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           1.Stated need for the bill  

          The author writes:
          
            Except for data collected by the California Highway Patrol  
            (CHP), current law does not provide any privacy safeguards for  
            data collected by automatic license plate reader (ALPR)  
            systems.  Current law does not prohibit the sale or sharing of  
            ALPR data, leaving it wide open for personal information to be  
            inappropriately sold or shared with non-law enforcement  
            entities.  In addition, current law allows ALPR data to be  
            retained for an indeterminate amount of time, placing no  
            limitations on when the data may be accessed or for what  
            purposes.

            Used primarily by law enforcement agencies, automatic license  
            plate reader technology uses a combination of high-speed  
            cameras, software and criminal databases to rapidly check and  
            track the license plates of millions of Californians.  The  
            technology is also used by private, non-law enforcement  
            entities, such as parking and repossession companies.  Some  
            private communities use it to monitor who enters and leaves  
            the community. 

            License plate readers can be placed anywhere, but are most  
            commonly mounted on the roof of law enforcement vehicles.   
            Based on a survey of law enforcement agencies, the American  
            Civil Liberties Union (ACLU) estimates that 75 percent of law  
            enforcement agencies currently employ ALPRs, 85 percent plan  
            to expand their use, and within the next five years, at least  
            25 percent of all police vehicles will be equipped with the  
            technology. 

            On balance, ALPR technology has become a critical component of  
            modern policing.  For example, the Sacramento County Sheriff's  
            Department, in the first 30 days of using the technology,  
            identified and located 495 stolen vehicles, five carjacked  
            vehicles, and 19 other vehicles that were involved in  
            felonies.  These ALPR identifications enabled the Sheriff's  
            Department to take 45 suspects into custody, including  
            individuals involved with bank robbery and home invasion.

            But as use of this technology has increased, so has the  
            concern of civil libertarians. Whether or not a 'hit' occurs,  

                                                                      




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            all license plate scans are sent to "fusion centers" - large  
            regional databases that aggregate ALPR data from various law  
            enforcement agencies.  The ACLU estimates that only 1 percent  
            of ALPR data results in a 'hit,' the other 99 percent of data  
            has no relation to a crime.  A database that is maintained on  
            behalf of various northern California law enforcement agencies  
            reportedly has over 100 million unique license plate scans.  A  
            database maintained on behalf of San Diego law enforcement  
            agencies reportedly has over 49 million license plate scans.   
            A company that maintains an ALPR database maintained for  
            private companies, such as insurance companies, collections  
            agencies, and private investigators, has over 1 billion  
            license plate scans. The company sells vehicle sighting  
            reports for between $10 and $25.

            SB 893 would place reasonable limits on the use of data  
            collected by ALPR technology.

           2.Fundamental Right to Privacy  
           
           Staff notes that the right to privacy is a fundamental right  
          protected by Section 1 of Article I of the California  
          Constitution.  This bill would build upon that fundamental right  
          by limiting the possibility that ALPR technology, and the  
          collection of ALPR-generated data, could be used to capture  
          sensitive personal information of California residents,  
          including their locational history.

          The prevalence of ALPR systems and the ease with which license  
          plate data can be gathered and aggregated have raised serious  
          privacy concerns.  (See e.g. Clark, License Plate Readers Spark  
          Privacy, Public Safety Debate (November 20, 2013) < http://  
          www.usatoday.com/story/news/2013/11/20/license-plate-readers-spar 
          k-privacy-public-safety/3650273/> (as of April 15, 2014).)   
          Using large datasets of ALPR data gathered over time, it is  
          possible to reconstruct the locational history of a vehicle and  
          extrapolate certain details about the car's driver.  As the  
          American Civil Liberties Union explains in a recent report:

            Tens of thousands of license plate readers are now deployed  
            throughout the United States.  Unfortunately, license plate  
            readers are typically programmed to retain the location  
            information and photograph of every vehicle that crosses their  
            path, not simply those that generate a hit.  The photographs  
            and all other associated information are then retained in a  

                                                                      




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            database, and can be shared with others, such as law  
            enforcement agencies, fusion centers, and private companies.   
            Together these databases contain hundreds of millions of data  
            points revealing the travel histories of millions of motorists  
            who have committed no crime.  (ACLU, You Are Being Tracked:  
            How License Plate Readers Are Being Used to Record Americans'  
            Movements (July 17, 2013) <  
            https://www.aclu.org/technology-and-liberty/you-are-being-track 
            ed-how-license-plate-readers-are-being-used-record> (as of  
            April 15, 2014).)

          The U.S. Supreme Court recently examined the significant privacy  
          concerns raised by locational tracking technology in U.S. v.  
          Jones (2012).  The Jones case considered whether the attachment  
          of a Global Positioning System (GPS) tracking device to an  
          individual's vehicle, and the subsequent use of that device to  
          track the vehicle's movements on public streets, constituted a  
          search within the meaning of the Fourth Amendment.  In her  
          concurring opinion, Justice Sotomayor made the following  
          observations:

            GPS monitoring generates a precise, comprehensive record of a  
            person's public movements that reflects a wealth of detail  
            about her familial, political, professional, religious, and  
            sexual associations.  The Government can store such records  
            and efficiently mine them for information years into the  
            future.  And because GPS monitoring is cheap in comparison to  
            conventional surveillance techniques and, by design, proceeds  
            surreptitiously, it evades the ordinary checks that constrain  
            abusive law enforcement practices: "limited police resources  
            and community hostility."

            Awareness that the Government may be watching chills  
            associational and expressive freedoms.  And the Government's  
            unrestrained power to assemble data that reveal private  
            aspects of identity is susceptible to abuse.  The net result  
            is that GPS monitoring--by making available at a relatively  
            low cost such a substantial quantum of intimate information  
            about any person whom the Government, in its unfettered  
            discretion, chooses to track--may "alter the relationship  
            between citizen and government in a way that is inimical to  
            democratic society."  

            I would take these attributes of GPS monitoring into account  
            when considering the existence of a reasonable societal  

                                                                      




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            expectation of privacy in the sum of one's public movements.   
            I would ask whether people reasonably expect that their  
            movements will be recorded and aggregated in a manner that  
            enables the Government to ascertain, more or less at will,  
            their political and religious beliefs, sexual habits, and so  
            on.  (United States v. Jones (2012) 132 S. Ct. 945, 955-956  
            [internal citations omitted].)

          As with GPS monitoring, the accumulation of ALPR locational data  
          into databases that span both time and distance also threatens  
          to undermine one's right to privacy.  As with GPS monitoring,  
          California residents may be less willing to exercise their  
          associational and expressive freedoms if they know that their  
          movements are being compiled into databases accessible not only  
          to the government, but also to private industries and  
          individuals.  
           
           This bill seeks to strengthen California residents' fundamental  
          right to privacy by limiting the ability of ALPR operators to  
          amass large locational databases.  SB 893 would obstruct the  
          aggregation of ALPR data by prohibiting public agencies from  
          sharing this data with private entities and individuals absent a  
                                                                     court order, and by prohibiting any person authorized to access  
          or distribute ALPR data from further disclosing or otherwise  
          providing that information to any other person.  The bill would  
          also strengthen California's fundamental right to privacy by  
          limiting the amount of data that can be retained by ALPR  
          systems.  By restricting retained ALPR data to license plate  
          numbers, dates and times of capture, and geographical locations,  
          this bill would ensure that ALPR systems do not become tools for  
          recording pictures of the occupants of a vehicle, or from  
          inadvertently capturing other sensitive personal information  
          that may be within view of an ALPR system's cameras.  While it  
          may be true that retention of photographs taken by ALPR systems  
          could be helpful in ensuring that ALPR data is accurate, such  
          assurance would come at the high cost of the privacy interests  
          of countless California motorists and passengers.

          Several entities in opposition to this bill argue that ALPR data  
          does not, in itself, include any personal or sensitive  
          information about the registered owner of a vehicle, its driver,  
          or its occupants.  While this may be true when ALPR data is  
          viewed in isolation, the ability to interface ALPR data with a  
          database that does contain personal information, and the ability  
          to aggregate ALPR data and discern travel patterns from that  

                                                                      




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          data alone gives ALPR data the capacity to reveal sensitive  
          personal information much in the same way that aggregated data  
          from a GPS tracking device can reveal sensitive personal  
          information.  Several entities in opposition also note how state  
          and federal courts have held that "[a] person traveling in an  
          automobile on public thoroughfares has no reasonable expectation  
          of privacy in his movements from one place to another."  (United  
          States v. Knotts (1983) 460 U.S. 276, 281.)  However, as Justice  
          Alito's concurrence in the Jones case notes, these earlier  
          decisions may rest on the assumption that people have "a  
          well-developed and stable set of privacy expectations."  (Jones,  
          132 S. Ct. at 962.)  "But," as Justice Alito explains:
            technology can change those expectations.  Dramatic  
            technological change may lead to periods in which popular  
            expectations are in flux and may ultimately produce  
            significant changes in popular attitudes.  New technology may  
            provide increased convenience or security at the expense of  
            privacy, and many people may find the tradeoff worthwhile.   
            And even if the public does not welcome the diminution of  
            privacy that new technology entails, they may eventually  
            reconcile themselves to this development as inevitable. . . .  
            On the other hand, concern about new intrusions on privacy may  
            spur the enactment of legislation to protect against these  
            intrusions.  (Id.)

          None of the court decisions cited by those in opposition  
          squarely address the impact of modern technology such as ALPR  
          systems on expectations of privacy on California's public  
          thoroughfares.  In light of the Supreme Court's pronouncements  
          on this issue, it is premature to conclude that the use of ALPR  
          technology on public roads categorically does not interfere with  
          reasonable expectations of privacy.

           3.Free Speech
           
          The First Amendment to the U.S. Constitution and Article 1,  
          Section 2 of the California Constitution protect the right of  
          every person to "freely speak, write and publish his or her  
          sentiments on all subjects, being responsible for the abuse of  
          this right."  (Cal. Const. art. 1, Sec. 2.)  The U.S. Supreme  
          Court has held that "the creation and dissemination of  
          information are speech within the meaning of the First Amendment  
          . . . Facts, after all, are the beginning point for much of the  
          speech that is most essential to advance human knowledge and to  
          conduct human affairs."  (Sorrell v. IMS Health Inc. (2011) 131  

                                                                      




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          S. Ct. 2653, 2667 [citations omitted].)  ALPR data collected and  
          aggregated by ALPR operators could arguably be viewed as "facts"  
          for the purpose of the First Amendment's free speech clause.<1>   
          However, this does not mean that the restrictions imposed by  
          this bill are likely to run afoul of an ALPR operator's  
          presumptive right to engage in constitutionally protected  
          speech.

          In commercial speech cases - those involving "expression related  
          solely to the economic interests of the speaker and its  
          audience" - the Supreme Court has developed a four-part test for  
          determining when the government may regulate speech commensurate  
          with the First Amendment.  (Cent. Hudson Gas & Elec. Corp. v.  
          Public Serv. Comm'n (1980) 447 U.S. 557, 561.) 

            At the outset, we must determine whether the expression is  
            protected by the First Amendment.  For commercial speech to  
            come within that provision, it at least must concern lawful  
            activity and not be misleading.  Next, we ask whether the  
            asserted governmental interest is substantial.  If both  
            inquiries yield positive answers, we must determine whether  
            the regulation directly advances the governmental interest  
            asserted, and whether it is not more extensive than is  
            necessary to serve that interest.  (Id., 447 U.S. 557, 566.)
            --------------------------
          <1> But see Sorrell v. IMS Health Inc. (2011) 131 S. Ct. 2653,  
          2675, 2685 (Breyer, J., dissenting):

            Since ordinary regulatory programs can affect speech,  
            particularly commercial speech, in myriad ways, to apply a  
            "heightened" First Amendment standard of review whenever such  
            a program burdens speech would transfer from legislatures to  
            judges the primary power to weigh ends and to choose means,  
            threatening to distort or undermine legitimate legislative  
            objectives.
            . . .

            The Court reaches its conclusion [in Sorrell] . . . without  
            taking full account of the regulatory context, the nature of  
            the speech effects, the values these First Amendment  
            categories seek to promote, and prior precedent.  At best the  
            Court opens a Pandora's Box of First Amendment challenges to  
            many ordinary regulatory practices that may only incidentally  
            affect a commercial message.  At worst, it reawakens Lochner's  
            pre-New Deal threat of substituting judicial for democratic  
            decisionmaking where ordinary economic regulation is at issue.

                                                                      




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          Applied to the bill at hand, it is clear that the State has a  
          substantial governmental interest in regulating the  
          dissemination of sensitive information about California  
          residents, including locational data derived through the use of  
          ALPR systems.  As noted above, privacy is a fundamental right in  
          the State of California, and the unrestricted collection and  
          distribution of sensitive personal information by ALPR operators  
          threatens the integrity of this fundamental right.  While it is  
          ultimately an issue for the courts, staff notes that this bill  
          appears to be narrowly tailored to advance the State's  
          fundamental interest in preserving the right of privacy of its  
          citizens.  The bill does not preclude ALPR operators from  
          collecting license plate information.  Rather, it provides that  
          ALPR systems cannot be used to inadvertently collect additional  
          sensitive personal information by specifying that data retained  
          by an ALPR system shall consist only of a license plate number,  
          date and time of capture, and geographical location.

           4.Trespass for Commercial Purposes
           
          Recent news articles suggest that ALPR operators may be  
          collecting license plate information on private property for  
          commercial purposes without the consent of landowners.   
          According to one such article:

            A number of [ALPR] companies contacted by the Globe confirmed  
            that they often send their spotter cars to commercial lots,  
            such as shopping mall parking lots, because those tend to be  
            hotspots for ?vehicles to repossess.

            In fact, on its website Digital Recognition described what it  
            calls good "target environments" for repossession agents,  
            including "malls, movie?theaters, sporting events, and  
            numerous other locations."  In marketing materials, the firm  
            has indicated that it suggests routes for repossession  
            companies that focus on workplaces and commercial lots during  
            the day and apartment complexes and residential areas at  
            night.

            However, several commercial property owners contacted by the  
            Globe said they had no idea repossession agents could be in  
            their parking lots, scanning license plates and feeding them  
            into a national database.  Some said they would consider the  
            practice trespassing.

                                                                      




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            "We're unaware that this is happening, and we're reaching out  
            to our security teams and law enforcement contacts to get a  
            better handle on it," said Les Morris, spokesman for Simon  
            Property Group, which owns Copley Place mall in Boston and  
            South Shore Plaza in Braintree.

            "If we saw scanning like this being done, we would throw them  
            out," said Issie Shait, senior vice president of property  
            management at New England Development, which owns the  
            CambridgeSide Galleria and Bunker Hill Mall District.   
            (Musgrave, A Vast Hidden Surveillance Network Runs Across  
            America, Powered By The Repo Industry (March 5, 2014)  
              
            (as of April 16, 2014).)

          As a general matter, engaging in commercial activities on the  
          property of another without permission may infringe upon the  
          protected property interests of the landowner.  Such activities  
          may interfere with a landowner or tenant's use or enjoyment of  
          the property, or deprive a landowner of rents that would  
          otherwise be charged to the commercial actor for the right to  
          use or access the property.  In California, the "detriment  
          caused by the wrongful occupation of real property" through  
          civil trespass is "deemed to include the value of the use of the  
          property for the time of that wrongful occupation."  (Civ. Code  
          Sec. 3334(a).)  Thus, an ALPR operator who engages in commercial  
          activities on the property of another may be civilly liable to  
          the property owner for "the greater of the reasonable rental  
          value of that property or the benefits obtained by the person  
          wrongfully occupying the property by reason of that wrongful  
          occupation."  (Civ. Code Sec. 3334(b)(1).)

          This bill would clarify that ALPR operators may not trespass  
          upon the property of others to collect ALPR data without first  
          obtaining written consent from the landowner or their designated  
          agent.  By requiring prior, written consent from a landowner  
          before operating an ALPR system on private land, this bill would  
          help to uphold the private property rights of California  
          landowners and would undermine any economic incentive for ALPR  
          operators to commit civil trespass to collect license plate  
          data.

           5.Probable Cause

                                                                      




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          This bill would provide that information or data collected  
          through the use or operation of an ALPR system shall not be the  
          sole basis for establishing probable cause to obtain a search or  
          arrest warrant.  In People v. Scott (2011) 52 Cal.4th 452, 474,  
          the California Supreme Court characterized probable cause as  
          follows:

            "Probable cause exists when the facts known to the arresting  
            officer would persuade someone of 'reasonable caution' that  
            the person to be arrested has committed a crime.  (Dunaway v.  
            New York (1979) 442 U.S. 200, 208.)  '[P]robable cause is a  
            fluid concept-turning on the assessment of probabilities in  
            particular factual contexts ? .'  (Illinois v. Gates (1983)  
            462 U.S. 213, 232.)  It is incapable of precise definition.   
            (Maryland v. Pringle (2003) 540 U.S. 366, 371.)  '"The  
            substance of all the definitions of probable cause is a  
            reasonable ground for belief of guilt,"' and that belief must  
            be 'particularized with respect to the person to be ?  
            seized.'" (People v. Celis (2004) 33 Cal.4th 667, 673 [16 Cal.  
            Rptr. 3d 85, 93 P.3d 1027].)

          Several entities in opposition to this bill suggest that current  
          law provides adequate protection against the issuance of an  
          unlawful or inappropriate search or arrest warrant.  However,  
          staff notes that it is sometimes difficult to discern how new  
          technologies fit within the framework of existing law, including  
          laws interpreting the probable cause standard.  This bill would  
          establish clear guidelines to both law enforcement agencies and  
          reviewing courts that, without more, ALPR data alone cannot form  
          the basis for establishing probable cause to obtain a search or  
          arrest warrant.  ALPR data, by its nature, captures information  
          about vehicles and not individuals.  While this data can be  
          aggregated and analyzed to discern sensitive information about  
          drivers, it cannot be used to reliably establish the whereabouts  
          of a particular individual at any particular time.   
          Consequently, without more information such as eyewitness  
          reports or physical evidence gathered in the field, ALPR data  
          alone is not sufficient to form "a reasonable ground for the  
          belief of guilt" that a particular person has committed a  
          particular crime.

           6.Data Security
           
          Existing law requires any state agency, and any person or  

                                                                      




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          business conducting business in California, that owns or  
          licenses computerized data that includes personal information,  
          as defined, to disclose any security breach concerning that data  
          to any California resident whose unencrypted personal  
          information was, or is believed to have been, acquired by an  
          unauthorized person.  (Civ. Code Secs. 1798.29(a), 1798.82(a).)   
          This bill would add unencrypted ALPR data to the list of  
          personal information subject to breach notification under  
          California's Data Breach Notification Law.  This bill would also  
          require APLR operators to adhere to specific data security  
          protocols, including:
           ensuring that the information or data collected through the  
            use or operation of an ALPR system is protected with  
            reasonable operational, administrative, technical, and  
            physical safeguards to ensure its confidentiality and  
            integrity;
           implementing and maintaining reasonable security procedures  
            and practices appropriate for the nature of the information or  
            data collected via an ALPR system, in order to protect the  
            information or data from unauthorized access, destruction,  
            use, modification, or disclosure;
           implementing and maintaining a usage and privacy policy in  
            order to ensure that the information or data collected through  
            the use or operation of an ALPR system is consistent with  
            respect for individuals' privacy and civil liberties; and 
           maintaining a record of access to information or data  
            collected through the use or operation of an ALPR system.

          Staff notes that ALPR data has been mishandled in the past, in  
          part due to ineffective data security protocols.  In 2013, the  
          Boston Police Department inadvertently released unencrypted ALPR  
          records pertaining to 40,000 different vehicles as part of a  
          public records request.  (See Musgrave, Boston Police Halt  
          License Scanning Program (December 14, 2013) <  
          http://www.bostonglobe.com/metro/2013/12/14/boston-police-suspend 
          -use-high-tech-licence-plate-readers-amid-privacy-concerns/  
          B2hy9UIzC7KzebnGyQ0JNM/story.html> (as of April 16, 2014).)   
          Collectively, the data security protocols implemented through  
          this bill will help ensure that sensitive personal information  
          collected through the use of ALPR systems will be protected from  
          improper use and inadvertent disclosure.  In so doing, these  
          data security requirements further the Legislature's  
          longstanding policy of providing effective laws to protect an  
          individual's privacy.


                                                                      




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          Several entities in opposition suggest that ALPR data should not  
          be subject to California's Data Breach Notification Law because  
          an ALPR license plate data capture does not reveal any personal  
          information about the registered owner of a vehicle, its driver,  
          or its passengers.  While that may be true when viewing ALPR  
          data in isolation, as discussed in Comment 2 ALPR data collected  
          over time can reveal quite a lot of sensitive personal  
          information about the travel habits of a particular car owner,  
          driver, or passenger.

           1.Technical Amendments
           
          The author offers the following technical amendments:

            On page 13, line 17, delete "Collect" and insert "Retain"

            On page 14, line 8, delete "authorized"

            On page 14, lines 17 and 18, delete "for a purpose not  
            authorized by" and insert "in violation of"


           Support  :  American Civil Liberties Union of California

           Opposition  :  Association for Los Angeles Deputy Sheriffs;  
          Association of Orange County Deputy Sheriffs; California  
          Association of Licensed Investigators; California Bankers  
          Association; California College and University Police Chiefs  
          Association; California District Attorneys Association;  
          California Financial Services Association; California Fraternal  
          Order of Police; California Narcotic Officers Association;  
          California Peace Officers Association; California Police Chiefs  
          Association; California Public Parking Association; California  
          State Sheriffs Association; Equal Access Lenders of California;  
          Long Beach Police Officers Association; Los Angeles County  
          Professional Peace Officers Association; Los Angeles Police  
          Protective League; MuniServices; Peace Officers Research  
          Association of California; Riverside Sheriffs Association;  
          Sacramento County Deputy Sheriffs Association; Santa Ana Police  
          Officers Association; TransUnion; Vigilant Solutions

                                        HISTORY
           
           Source  :  Author


                                                                      




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           Related Pending Legislation  :

          AB 2197 (Mullin) would authorize the development of a temporary  
          license plate system that would enable vehicle dealers and  
          lessor-retailers to print temporary license plates on  
          weatherproof paper or other media selected by the Department of  
          Motor Vehicles.  This bill is in the Assembly Committee on  
          Transportation.

          AB 1710 (Dickinson) would, among other things, extend data  
          breach notification requirements to businesses that maintain but  
          do not own or license personal information, and would add  
          noncomputerized data containing personal information to the  
          categories of data subject to data breach notification  
          requirements.  This bill is in the Assembly Committee on  
          Judiciary.

           Prior Legislation  :

          AB 179 (Bocanegra, Ch. 375, Stats. 2013) prohibits  
          transportation agencies and other entities that employ an  
          electronic transit fare collection system (ETFC) for the payment  
          of transit fares from selling or providing to third parties any  
          personally identifiable information obtained through a person's  
          participation in an electronic transit fare collection system  
          (ETFC), with certain exceptions.

          SB 1330 (Simitian, 2011) would have placed restrictions on the  
          use of automated license plate recognition (ALPR) technology by  
          private entities, including restrictions on the retention, use,  
          and sale of such data.  This bill would have also restricted the  
          ability for a person to transfer ALPR data to a law enforcement  
          agency absent a search warrant or other specified circumstances.  
           This bill died on the Senate Floor.

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

          SB 1268 (Simitian, Ch. 489, Stats. 2010) prohibits  
          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.


                                                                      




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          SB 854 (Committee on Budget and Fiscal Review, 2010) would,  
          among other things, have authorized the Department of the  
          California Highway Patrol to retain license plate data captured  
          by an automated license plate reader (ALPR) for not more than 72  
          hours unless the data is being used as evidence or for a  
          legitimate law enforcement purpose.  The bill would have  
          prohibited the Department from selling ALPR data or making the  
          data available to an agency that is not a law enforcement agency  
          or an individual that is not a law enforcement officer, and  
          would require the Department to monitor internal use of the data  
          to prevent unauthorized use.  This bill died on the Senate  
          Floor.

          AB 1614 (Committee on Budget and Fiscal Review, 2010) would,  
          among other things, have authorized the Department of the  
          California Highway Patrol to retain license plate data captured  
          by an automated license plate reader (ALPR) for not more than 72  
          hours unless the data is being used as evidence or for a  
          legitimate law enforcement purpose.  The bill would have  
          prohibited the Department from selling ALPR data or making the  
          data available to an agency that is not a law enforcement agency  
          or an individual that is not a law enforcement officer, and  
          would require the Department to monitor internal use of the data  
          to prevent unauthorized use.  This bill died on the Senate  
          Floor.

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