BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 893 (Hill) - Automated License Plate Recognition systems: use  
          of data.
          
          Amended: May 6, 2014            Policy Vote: Judiciary 5-2
          Urgency: No                     Mandate: Yes
          Hearing Date: May 23, 2014      Consultant: Jolie Onodera
          
          SUSPENSE FILE. AS AMENDED.


          Bill Summary: SB 893 would place restrictions on the use of  
          Automated License Plate Recognition (ALPR) systems by both  
          public and private sector users, as specified.

          Fiscal Impact (as approved on May 23, 2014): 
              Significant private sector and local law enforcement agency  
              costs (Private/Local) to comply with the provisions of this  
              measure, including but not limited to administrative  
              resources and infrastructure needs potentially required for  
              compliance. As the use or access of ALPR systems is not a  
              mandated activity, any restrictions placed on the use or  
              access of these systems is estimated to be non-reimbursable  
              by the state.    
              Potential periodic minor to significant costs to public  
              (State/Local) and private ALPR operators, to issue data  
              breach notifications. Private entities and public agencies  
              are already subject to data breach notification law,  
              therefore costs would be dependent on the frequency and size  
              of data breaches specific to ALPR data, and the process of  
              notification utilized by each agency.
              Potentially significant reduction in fine revenues (Local)  
              due to reduced collection of outstanding parking fines  
              utilizing ALPR technology. Although state penalty  
              assessments and state surcharges are generally not levied on  
              parking violations, to the extent the parking violation  
              rises to the level of being assessed a fine associated with  
              a notice to appear, state levies would apply, resulting in  
              potentially significant reductions in revenue to the General  
              Fund.
              No impact to CHP and transportation agencies (Caltrans) due  
              to carve out for these agencies, with the exception of the  
              ALPR data breach notification requirement.








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          Background: A recent report by the American Civil Liberties  
          Union (ACLU), You Are Being Tracked: How License Plate Readers  
          are Being Used to Record Americans' Movements (July 17, 2013),  
          noted:


              A little noticed surveillance technology, designed to  
              track the movements of every passing driver, is fast  
              proliferating on America's streets. Automatic license  
              plate readers, mounted on police cars or on objects like  
              road signs and bridges, use small, high-speed cameras to  
              photograph thousands of plates per minute. The  
              information captured by the readers - including the  
              license plate number, and the date, time, and location of  
              every scan - is being collected and sometimes pooled into  
              regional sharing systems. As a result, enormous databases  
              of innocent motorists' location information are growing  
              rapidly. This information is often retained for years or  
              even indefinitely, with few or no restrictions to protect  
              privacy rights.

              The documents paint a startling picture of a technology  
              deployed with too few rules that is becoming a tool for  
              mass routine location tracking and surveillance. License  
              plate readers can serve a legitimate law enforcement  
              purpose when they alert police to the location of a car  
              associated with a criminal investigation. But such  
              instances account for a tiny fraction of license plate  
              scans, and too many police departments are storing  
              millions of records about innocent drivers. Moreover,  
              private companies are also using license plate readers  
              and sharing the information they collect with police with  
              little or no oversight or privacy protections. A lack of  
              regulation means that policies governing how long our  
              location data is kept vary widely.


              Automatic license plate readers have the potential to  
              create permanent records of virtually everywhere any of  
              us has driven, radically transforming the consequences of  
              leaving home to pursue private life, and opening up many  
              opportunities for abuse. The tracking of people's  
              location constitutes a significant invasion of privacy,  








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              which can reveal many things about their lives, such as  
              what friends, doctors, protests, political events, or  
              churches a person may visit.

          Existing law restricts the use of ALPR technology by the  
          California Highway Patrol (CHP). Pursuant to AB 115 (Committee  
          on Budget) Chapter 38/2011, the transportation budget trailer  
          bill, the CHP is authorized to retain data captured by ALPR  
          systems for no more than 60 days except in circumstances when  
          the data is being used as evidence or for felony investigations.  
          Further, the CHP is prohibited from selling the data for any  
          purpose or making the data available to any agency or person  
          other than law enforcement agencies or officers. (Vehicle Code �  
          2413(b) and (c))

          This bill seeks to strengthen California residents' fundamental  
          right to privacy by placing limitations on the use of  
          information and data collected by ALPR systems.

          Proposed Law: This bill would place restrictions on the use of  
          ALPR systems by both public and private sector users, as  
          follows: 
              Requires retained ALPR data to consist only of a license  
              plate number, date and time of capture, and geographical  
              location.
              Prohibits private commercial ALPR operators from  
              trespassing onto private property to collect ALPR data  
              without first obtaining written consent of the landowner.
              Prohibits any public agency from sharing ALPR data with any  
              private entity or individual absent a court order.
              Prohibits any person authorized to access or distribute  
              ALPR data from further disclosing or otherwise providing  
              that information to any other person.
              Requires specific data security protocols for the storage  
              of ALPR data and requires entities that use or store ALPR  
              data to keep an access log.
              Adds ALPR information and data to the list of personal  
              information subject to California's data breach notification  
              law.
              Establishes that ALPR data alone may not be used to  
              establish probable cause for a search or arrest warrant.
              Creates a private right of action to enforce these  
              restrictions and allows for the recovery of actual or  
              statutory damages, attorney's fees, and costs of suit.








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              Provides that an "ALPR operator" does not include the CHP  
              when subject to VC � 2413 or a transportation agency when  
              subject to Streets and Highway Code � 31490. 

          Staff Comments: The provisions of this bill impose significant  
          new requirements on both public and private sector ALPR  
          operators, as defined, with regard to data and information  
          collected, retained, and accessed through the use of ALPR  
          systems. Because the provisions of this bill specifically  
          exclude the CHP and transportation agencies from the definition  
          of an "ALPR operator," no fiscal impact to those agencies is  
          estimated for the entirety of Section 3 of the bill.

          Costs to ALPR operators would consist of workload associated  
          with the development and implementation of policies and  
          procedures to use, access, and properly safeguard the ALPR data,  
          additional administrative costs for developing and maintaining  
          access logs, as well as staff training. To the extent  
          information technology hardware/software purchases or  
          enhancements are required to comply with the provisions of this  
          measure could also result in significant new one-time and  
          ongoing costs. 

          As the usage of ALPR systems is not a mandated activity on local  
          agencies, any restrictions put on its use or access would not  
          appear to be reimbursable by the state. Simply put, local  
          agencies could choose to stop utilizing ALPR systems. However,  
          whether the costs to local agencies would be subject to  
          reimbursement by the state cannot be known with certainty, and  
          would ultimately be subject to determination by the Commission  
          on State Mandates (CSM) should a test claim be filed.  
           
          To the extent the limitations on ALPR data sharing and  
          distribution impact the ability of local agencies to identify  
          and collect outstanding parking fines, the indirect impact of  
          the restrictions on ALPR data could result in a significant loss  
          in local revenues for parking fine collections potentially in  
          the millions of dollars. Staff notes that although the state  
          penalty assessment (PC � 1464(a)) and state surcharge (PC �  
          1465.7) are not imposed on parking offenses generally, to the  
          extent a parking violation rises to the level of being assessed  
          a fine associated with a notice to appear (i.e., for violations  
          associated with disabled access, VC � 22507.8), state levies  
          would apply, resulting in a potential loss in revenue to the  








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          General Fund. The number and value of uncollected parking fines  
          that would potentially be impacted by this measure is unknown,  
          but could be significant.

          By adding ALPR data to the list of information subject to  
          California's data breach notification law, public and private  
          entities could incur costs periodically to issue notices in the  
          event of an ALPR data breach, as specified. State costs, which  
          are estimated to include costs for CHP and transportation  
          agencies, would be dependent on the frequency and size of data  
          breaches specific to ALPR data, and the method of notification  
          utilized by each agency. Under existing law, should the cost to  
          provide the notifications exceed $250,000, or if the breach  
          affected more than 500,000 persons, an entity could utilize one  
          of several methods of notification including posting a notice on  
          the entity's website, which would only incur minor costs.

          Author amendments do the following:
                 Delete the provision prohibiting public agencies from  
               disclosing, distributing, selling, accessing, or otherwise  
               providing for another purpose, information or data  
               collected through the use or operation of an ALPR system to  
               any private entity or individual, as specified.
                 Delete the provision specifying that a person authorized  
               to access or distribute information or data collected  
               through the use or operation of an ALPR system shall not  
               further disclose or distribute that information to another  
               person for any purpose.
                 Specify that an individual who has been harmed by a  
               violation of this title may bring a civil action in court,  
               as specified, against a person who knowingly caused that  
               violation.