Amended in Senate April 10, 2014

Amended in Senate March 28, 2014

Amended in Senate March 17, 2014

Senate Bill No. 994

Introduced by Senator Monning

February 12, 2014

An act to add Section 9957 to the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 994, as amended, Monning. Vehicles: vehicle information: privacy.

Existing law imposes various requirements upon manufacturers of motor vehicles sold or leased in this state with regard to disclosing information and providing equipment. A violation of these provisions is a crime.

This bill would enact the Consumer Car Information and Choice Act. The bill would require a manufacturer of any new motor vehicle sold or leased in this state that is manufactured on or after January 1, 2016, that begin insert records, end insert generates begin insert , stores, end insert or collects vehicle information, as defined, to make certain disclosures to the registered owner regarding the begin insert recordation, end insert generation begin insert , storage, end insert and collection of that information. The bill would require the manufacturer to provide the registered owner of the vehicle with access to the vehicle information begin delete and the ability to securely transmit that information to a 3rd party selected by the registered owner end delete , as specified. begin insert The bill would require the manufacturer to provide the registered owner with the ability to opt out of the recording, generation, storage, or collection of vehicle information, except as specified. end insert The bill would prohibit a manufacturer from limiting, impairing, or otherwise restricting begin delete , by any means, end delete the ability of the registered owner to access begin delete , use, or transmit end delete his or her vehicle information, and would further prohibit the manufacturer from taking any adverse action against the registered owner for accessing begin delete or using or transmitting end delete his or her vehicle information, as specified. The bill would prohibit vehicle information from being downloaded begin delete , transmitted, or received by a person other than end delete begin insert or otherwise retrieved from the motor vehicle without the consent of end insert the registered owner, except as specified. begin insert The bill would prohibit a manufacturer from conditioning the sale or lease of a vehicle upon receiving consent from the registered owner to allow the manufacturer to sell, release, or otherwise disclose vehicle information to persons other than the registered owner. The bill would provide immunity from liability for manufacturers providing registered owners access to vehicle information, as specified. end insert

Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

This act shall be known, and may be cited, as the
Consumer Car Information and Choice Act.

SEC. 2.  

(a) The Legislature finds and declares all of the
following:

(1) Today’s motor vehicles are equipped with sophisticated
computers that control everything from comfort and convenience
features, including air temperature, seat positions, and infotainment,
to critical safety features, such as air bags and antilock brakes, to
complex engine systems, such as transmission, fuel, emissions,
and exhaust systems.

(2) These computers can begin insert record, end insert generate begin insert , store, end insert and collect
information that is important to consumers about the condition
and performance of their motor vehicles, including repair,
maintenance, and diagnostic information.

(3) These computers can also begin insert record, end insert generate begin insert , store, end insert and collect
sensitive personal information about consumers and their driving
behaviors begin insert , as well as others in and around the motor vehicle end insert . For
example, motor vehicles can collect precise location information
as well as information about where and when consumers have
driven their motor vehicles. Motor vehicles can also collect
information about how consumers drive, including information
about braking, acceleration, speed, and the number of passengers
carried. begin insert In some cases, motor vehicles can even collect personal
information from consumers’ mobile phones, such as personal
contact lists, text messages, and phone conversations. end insert

(4) In 2014, approximately one in five new motor vehicles sold
in California will be equipped with systems that can wirelessly
transmit consumer vehicle information outside the motor vehicle.
By 2025, it is expected that all new motor vehicles sold in
California will have wireless data transmission capabilities along
with the capacity to generate vast quantities of information about
consumers, their driving habits, and the condition and performance
of their motor vehicles.

(5)  begin delete It is unclear who has end delete begin insert Until now, the law has not explicitly
addressed who has end insert the right to control the dissemination of
consumer vehicle information, as there are no uniform standards
or policies that address this issue with respect to the broad array
of consumer vehicle information that may be shared. Today,
consumers have limited ability to access their vehicle information
or to transmit their vehicle begin delete information from their motor vehicles
to service providers of their choice end delete begin insert information end insert .

begin insert

(6) Vehicle manufacturers have the technology to give
consumers secure access to their vehicle information, and some
manufacturers have deployed this technology to securely exchange
vehicle information with third parties.

end insert begin delete

(6)

end delete

begin insert (7) end insert  Restricting consumers’ begin delete ability to choose who can access
information from their motor vehicles reduces competition and
innovation and end delete begin insert access to information from their motor vehicles end insert
negatively affects consumers’ ability to begin delete select the services they
prefer and end delete realize the full value of the motor vehicles they own or
lease begin insert and make important choices about their privacy end insert .

(b) It is therefore the intent of the Legislature begin delete to create a uniform
policy that ensures end delete begin insert to ensure end insert that consumers are clearly informed
of the kinds of information their motor vehicles begin insert record, end insert generate begin insert ,
store, end insert and collect about them, including information about their
driving habits and the condition of their motor vehicles. It is also
the intent of the Legislature that consumers begin delete are given more choice end delete
begin insert retain control end insert over who can access begin delete and use this information from
their motor vehicles as well as rights to securely transmit end delete this
information from their motor vehicles begin delete to service providers of their
choice end delete .

SEC. 3.  

Section 9957 is added to the Vehicle Code, to read:

9957.  

(a) This section applies to all motor vehicles
manufactured on or after January 1, 2016.

(b) A manufacturer of a new motor vehicle sold or leased in
this state that begin insert records, end insert generates begin insert , stores, end insert or collects vehicle
information shall do all of the following:

(1) Disclose that the motor vehicle begin insert records, end insert generates begin insert , stores, end insert
or collects vehicle information and describe begin delete the types end delete begin insert each of the
categories end insert of vehicle information begin insert recorded, end insert generated begin insert , stored, end insert or
collected by the motor vehicle begin insert , as well as the duration of the
recording, collection, or storage, end insert in a plainly written statement
included in the owner’s manual for the motor vehicle.

(2) Provide a copy of the statement described in paragraph (1)
in a separate document printed in no less than 12-point type to the
prospective registered owner of the new motor vehicle prior to the
purchase or lease of the vehicle.

(3) Include in the statement included in the owner’s manual
pursuant to paragraph (1) and the statement contained in the
separate document described in paragraph (2) the following
statement in 14-point bold type:

“THIS MOTOR VEHICLE begin insert RECORDS, end insert GENERATES begin delete AND end delete begin insert ,
STORES, OR end insert COLLECTS INFORMATION ABOUT YOU, HOW
YOU DRIVE, AND THE CONDITION OF YOUR MOTOR
VEHICLE. UNDER CALIFORNIA LAW, YOU HAVE THE
RIGHT TO begin delete CHOOSE WHO CAN end delete ACCESS THIS
INFORMATION begin insert AND TO OPT OUT OF THE COLLECTION
OF THIS INFORMATION IN MOST CIRCUMSTANCES. YOU
ALSO HAVE THE RIGHT TO CONSENT TO WHO MAY
RETRIEVE THIS INFORMATION end insert FROM YOUR MOTOR
begin delete VEHICLE.” end delete begin insert VEHICLE. BEFORE ALLOWING YOUR VEHICLE
MANUFACTURER TO SHARE YOUR INFORMATION WITH
THIRD PARTIES, YOU SHOULD CAREFULLY REVIEW EACH
PARTY’S PRIVACY POLICY. end insert begin insert ” end insert

(4) Affix the statement described in paragraph (3) securely in
a clear and conspicuous manner to the side window or windshield
of the new motor vehicle.

(c) A manufacturer of a new motor vehicle sold or leased in this
state that begin insert records, end insert generates begin insert , stores, end insert or collects vehicle information
shall provide the registered owner of the motor vehicle with all of
the following:

(1) Access from the motor vehicle to the vehicle information
begin insert as the vehicle information is recorded, generated, stored, or
collected by the motor vehicle end insert .

(2)  begin delete Fair and reasonable access end delete begin insert Access end insert to tools and information
reasonably necessary to begin delete use end delete begin insert access end insert the vehicle information.

begin delete

(3) The ability to securely transmit the vehicle information
outside the motor vehicle to any person selected by the registered
owner of the motor vehicle.

(A) The manufacturer shall not impose any fees or charges on
a registered owner to make transmissions of vehicle information
pursuant to this paragraph.

(B) The manufacturer shall provide fair, nondiscriminatory, and
reasonable means for persons selected by the registered owner in
accordance with this paragraph to receive the vehicle information
in a standard, usable format.

(C) If the motor vehicle is equipped with a telematics system,
the manufacturer shall provide the registered owner with the ability
to use the telematics system to securely transmit vehicle
information in accordance with this paragraph and shall provide
fair, nondiscriminatory, and reasonable means for persons selected
by the registered owner in accordance with this paragraph to
securely access the telematics system to provide remote services
that are requested by the registered owner.

end delete begin insert

(3) Manufacturers may provide the access required under
paragraph (2) for purchase on fair and reasonable terms. In
determining whether terms are fair and reasonable, consideration
may be given to relevant factors, including, but not limited to, the
following:

end insert begin insert

(A) The net cost to the manufacturer’s franchised dealerships
for similar information obtained from manufacturers, less any
discounts, rebates, or other incentive programs.

end insert begin insert

(B) The cost to the manufacturer for preparing and distributing
the information, excluding any research and development costs,
provided that the amortized capital costs for the preparation and
distribution of the information may be included.

end insert begin insert

(C) The price charged by other manufacturers for similar
information.

end insert begin insert

(D) The ability of aftermarket technicians, shops, and other
small businesses to afford the information.

end insert begin insert

(E) The means by which the information is distributed.

end insert begin insert

(F) The extent to which the information is used, which includes
the number of users, frequency, duration, and volume of use.

end insert begin insert

(G) Inflation.

end insert begin insert

(4) The ability to opt out of the recording, generation, storage,
or collection of vehicle information other than vehicle information
necessary for the repair or maintenance of the motor vehicle or
for motor vehicle safety. A manufacturer may not deny any service
or benefit to a registered owner for exercising his or her opt-out
rights under this paragraph, unless the service or benefit is
technically dependent on the vehicle information that is no longer
recorded, generated, stored, or collected due to the registered
owner’s choice to opt out.

end insert

(d) A manufacturer shall not limit, impair, or otherwise restrict begin delete ,
by any means, end delete the ability of a registered owner to access begin delete , use, or
transmit end delete his or her vehicle information begin delete . A manufacturer shall not
take any adverse action against a registered owner for accessing
or using his or her vehicle information or transmitting his or her
vehicle information outside the motor vehicle to a person other
than the manufacturer or obtaining services that use vehicle
information from a person other than the manufacturer. end delete begin insert or take
any adverse action, including the denial of any service or benefit,
against a registered owner for accessing his or her vehicle
information. This paragraph shall not be construed to prevent the
adoption of security protocols to protect against unauthorized
access to vehicle information. end insert

(e) Vehicle information shall not be downloaded or begin delete transmitted
outside the motor vehicle or end delete otherwise retrieved from the motor
vehicle begin delete by a person other than end delete begin insert without the consent of end insert the registered
owner of the motor vehicle, except under one of the following
circumstances:

begin delete

(1) A registered owner of the motor vehicle consents to the
download, transmission, or retrieval of his or her vehicle
information.

end delete begin delete

(2)

end delete

begin insert (1) end insert  The vehicle information is downloaded begin delete , transmitted, end delete or
retrieved by the manufacturer of the motor vehicle. The
manufacturer shall not begin delete release end delete begin insert sell, release, end insert or otherwise disclose
the vehicle information received pursuant to this paragraph to any
person other than the registered owner of the motor vehicle, unless
begin delete that vehicle information is in a form that cannot be used to identify end delete
the begin insert manufacturer obtains the consent of the end insert registered owner begin delete or
driver of the motor vehicle end delete .

begin delete

(3)

end delete

begin insert ( end insert begin insert 2) end insert  The vehicle information is downloaded begin delete , transmitted, end delete or
retrieved for the purpose of diagnosing, servicing, or repairing a
motor vehicle at the request of the registered owner or driver of
that motor vehicle. begin insert The recipient of vehicle information under this
paragraph shall not sell, release, or otherwise disclose the vehicle
information to any person other than the registered owner of the
motor vehicle unless the recipient obtains the consent of the
registered owner. end insert

begin delete

(4) For purposes of improving motor vehicle safety, including
for medical research of the human body’s reaction to motor vehicle
accidents, provided that the identity of the registered owner or
driver is not disclosed in connection with that retrieved information.
The disclosure of the vehicle identification number (VIN) for
purposes of improving vehicle safety, including for medical
research of the human body’s reaction to motor vehicle accidents,
does not constitute the disclosure of the identity of a registered
owner or driver for purposes of this paragraph. A person authorized
to download or otherwise retrieve vehicle information pursuant to
this paragraph shall not release that vehicle information, except to
share that information among the motor vehicle safety and medical
research communities to advance motor vehicle safety, and only
if the identity of the registered owner or driver is not disclosed.

end delete begin insert

(3) The vehicle information is communicated to another motor
vehicle or transportation infrastructure through vehicular
communication networks for purposes of traffic management or
motor vehicle safety.

end insert begin delete

(5)

end delete

begin insert ( end insert begin insert 4) end insert  In response to an order of a court having jurisdiction to issue
the order begin insert under applicable standards of criminal and civil law end insert .

begin insert

(f) A manufacturer may not condition the sale or lease of a
motor vehicle upon receipt of consent from the registered owner
of the motor vehicle to allow the manufacturer to sell, release, or
otherwise disclose vehicle information to persons other than the
registered owner.

end insert begin delete

(f)

end delete

begin insert (g) end insert  A registered owner of a motor vehicle shall not be compelled
to access, download, or retrieve vehicle information from the motor begin delete vehicle or transmit vehicle information outside the motor vehicle end delete
begin insert vehicle, end insert except pursuant to an order of a court having jurisdiction
to issue the order begin insert under applicable standards of end insert begin insert criminal or civil
law end insert or as otherwise required by law.

begin insert

(h) This section shall not be construed to change, expand, or
diminish the existing authority of law enforcement.

end insert begin delete

(g)

end delete

begin insert (i) end insert  This section shall not be construed to require a manufacturer
of a motor vehicle to disclose any trade secret.

begin delete

(h) This section does not relieve manufacturers of the duty to
create secure telematics, computer, and other electronic systems
in the motor vehicles they manufacture, including the duty to
prevent unauthorized access into these systems.

end delete begin delete

(i)

end delete

begin insert (j) end insert  This section does not supersede or modify begin insert any provisions of
the Insurance Code or any regulations promulgated thereunder,
including, but not limited to, end insert the provisions of Section 2632.5 of
Title 10 of the California Code of Regulations concerning
automobile insurance rating factors.

begin insert

(k) A manufacturer of a motor vehicle shall have no liability
for any acts or omissions of a registered owner of the motor vehicle
as a result of the manufacturer providing the registered owner
access to vehicle information pursuant to this section.

end insert begin insert

(l) This section shall not be construed to require the recording,
generation, storage, or collection of vehicle information.

end insert begin delete

(j)

end delete

begin insert (m) end insert  For purposes of this section, “vehicle information” means
any and all data that is begin insert recorded, end insert generated begin insert , stored, end insert or collected
by a motor vehicle through a computer or other device embedded
or integrated into a motor vehicle begin insert , other than an event data
recorder governed under Section 9951 end insert begin insert and Part 563 of Title 49
of the Code of Federal Regulations, end insert that can be used, either alone
or with other information, to distinguish or individually identify
the registered owner of a motor vehicle, the driver of a motor
vehicle, or the operation, use, or condition of a motor vehicle.
“Vehicle information” includes, but is not limited to, all of the
following begin insert when that information is recorded, generated, stored,
or collected by a motor vehicle through a computer or other device
embedded or integrated into a motor vehicle, other than an event
data recorder governed under Section 9951 end insert begin insert and Part 563 of Title
49 of the Code of Federal Regulations end insert :

(1) The name, address, email address, and telephone number of
the registered owner or driver of the motor vehicle and the motor
vehicle’s vehicle identification number. begin insert This paragraph shall not
be construed to restrict the ability of law enforcement to collect
the information described in this paragraph from a registered
owner of a motor vehicle even if the information is also recorded,
generated, stored, or collected by the motor vehicle. end insert

(2) Speed, distance, braking, acceleration, steering, seat-belt
use, air bag deployment, collision, accident, geolocation,
time-of-day driven, miles driven, duration driven, driving style,
fuel, tire pressure, passenger, battery, door lock, and odometer
information, sensor data, subsystem data, and diagnostic trouble
codes.

begin delete

(k)

end delete

begin insert (n) end insert  For purposes of this section, “registered owner” means a
registered owner as defined in Section 505 and, in the case of a
leased vehicle, the lessee as shown on the registration card for the
leased vehicle.

begin delete

(l) For purposes of this section, the term “telematics system”
means a system that allows the transmission of data to and from
the motor vehicle using one or more embedded or mobile
communication devices that connect to telecommunications
networks, including, but not limited to, wireless and landline
communication networks and global positioning system satellites.

end delete

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.