BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 994
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: monning
VERSION: 4/10/14
Analysis by: Carrie Cornwell FISCAL: YES
Hearing date: April 22, 2014
SUBJECT:
Vehicle information: privacy
DESCRIPTION:
This bill requires, beginning in 2016, that motor vehicle
manufacturers disclose whether vehicles they manufacture record,
generate, store, or collect information about the driver and the
vehicle, and requires motor vehicle manufacturers to allow the
registered owner of the vehicle to opt out of the vehicle
recording, generating, storing, or collecting information. The
bill also requires vehicle manufacturers to provide a system for
the registered owner to access this information.
ANALYSIS:
Existing law (AB 213 [Leslie], Chapter 427, Statutes of 2003)
requires that if a motor vehicle is equipped with one or more
data recording devices (event recorder) for the purpose of
retrieving data after an accident, then the vehicle manufacturer
must disclose this fact in the owner's manual for the vehicle.
In addition, only the registered owner of the vehicle may
download or retrieve the data the event recorder collects,
except another person may retrieve the data:
with the owner's consent;
pursuant to a court order;
for the purpose of improving safety if the identity of the
owner is not disclosed; or
if the person is a licensed vehicle dealer or an automotive
technician and needs the data to repair the vehicle.
Further, if the recording device records where the vehicle
travels, steering performance, brake performance, and seatbelt
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use, and is part of a subscription service that includes
transmitting the data when an accident occurs, then:
The subscription agreement must disclose that the information
is collected and can be transmitted.
The privacy protections restricting use of the data described
above do not apply.
This bill :
1.Defines "vehicle information" as any and all data that a motor
vehicle records, generates, stores, or collects through a
computer or other device embedded or integrated into the
vehicle, other than an event recorder, that can by itself or
with other information be used to distinguish or individually
identify the registered owner of the vehicle, the driver, or
the operation, use, or condition of the vehicle.
2.Finds that the law does not explicitly address who has the
right to control the dissemination of consumer vehicle
information, because no uniform standards or policies exist.
To remedy this situation, the bill enacts the Consumer Car
Information and Choice Act to apply to new vehicles sold or
leased in California that are manufactured on or after January
1, 2016. If such a vehicle records, generates, stores, or
collects vehicle information, then the manufacturer of a
vehicle must:
Disclose that the vehicle records, generates, stores, or
collects vehicle information and describe each of the types
and duration of that information in a plainly written
statement in the owner's manual, as well as to prospective
buyers on a separate document in 12-point type prior to
purchase or lease, and finally affix the statement below in
a clear and conspicuous manner to the side window or
windshield of the new vehicle. The statement shall be in
fourteen-point, bold type and read:
"THIS MOTOR VEHICLE RECORDS, GENERATES, STORES, OR COLLECTS
INFORMATION ABOUT YOU, HOW YOU DRIVE, AND THE CONDITION OF
YOUR MOTOR VEHICLE. UNDER CALIFORNIA LAW, YOU HAVE THE
RIGHT TO ACCESS THIS INFORMATION AND TO OPT OUT OF THE
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COLLECTION OF THIS INFORMATION IN MOST CIRCUMSTANCES. YOU
ALSO HAVE THE RIGHT TO CONSENT TO WHO MAY RETRIEVE THIS
INFORMATION FROM YOUR MOTOR VEHICLE. BEFORE ALLOWING YOUR
VEHICLE MANUFACTURER TO SHARE YOUR INFORMATION WITH THIRD
PARTIES, YOU SHOULD CAREFULLY REVIEW EACH PARTY'S PRIVACY
POLICY. "
Provide, from the motor vehicle, the registered owner
access to the vehicle information as it is recorded,
generated, stored, or collected by the vehicle.
Manufacturers may provide this access for purchase on fair
and reasonable terms and the bill lists several guidelines
as to what could be considered fair and reasonable.
Provide an owner with the ability to opt out of the
recording, generation, storage, or collection of vehicle
information other than that needed for the repair and
maintenance of the vehicle or for motor vehicle safety. A
manufacturer may not deny any service or benefit to a
registered owner who opts out, unless that service or
benefit is technically dependent on the vehicle information
that is no longer recorded, generated, stored, or collected
due to the opt out.
Not limit, impair, or otherwise restrict the ability of
the registered owner to access his or her vehicle
information. A manufacturer may not take any adverse
action against a registered owner for accessing his or her
vehicle information.
1.Prohibits downloading or retrieving vehicle information from a
vehicle without the consent of the registered owner, except:
by court order,
by a repair shop,
by the vehicle manufacturer, or
by another motor vehicle or transportation
infrastructure device for vehicle safety or traffic
management purposes.
Neither a manufacturer nor a repair shop may sell, release, or
otherwise disclose the vehicle information without the consent
of the vehicle owner.
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1.Precludes a vehicle manufacturer from conditioning a sale or
lease of vehicle on receiving consent from the buyer to allow
the manufacturer to sell, release, or otherwise disclose
vehicle information to persons other than the registered
owner.
2.Absolves a manufacturer of liability for any acts or omissions
of a registered owner as a result of the manufacturer
providing the owner with access to vehicle information.
3.States that its provisions should not be construed to require
a manufacturer to disclose any trade secrets.
COMMENTS:
1.Purpose . The author asserts that by 2025, all manufactured
cars will have advanced electronics and onboard computing
technology and that right now about one in five cars have
advanced telematics and onboard computers that allow consumers
to wirelessly communicate with devices and use geolocational
systems to determine travel plans. These vehicles also
contain sensors that record valuable diagnostic information
about the cars' performance and the condition of the various
parts of the cars. These new and ever-changing technologies
have revolutionized how we interact with our cars and have
become a major advantage to consumers. The proliferation of
these computing technologies, however, and their ability to
generate copious amounts of personal data, create a
fundamental question about who has the basic right to control
and access that information. The author introduced this bill
to answer that question by creating safeguards that place the
power and control of personal data in the hands of the
consumer, and not the auto manufacturers.
As cars are rapidly morphing into computers with wheels, they
are also producing data on the shape and condition of the car,
how fast the car travels, use of the phone or radio, and even
where and how often a car visits a specific location. As of
today, the only entity that has access to that information is
the auto manufacturer, and whatever third party to whom they
choose to direct the information. This means that the
consumer, who bought and paid for a durable good, has no
control over the information that the product generates. This
exclusive and unfettered control over a consumer's data
creates not only an obvious privacy concern, but also a
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monopoly on information that stymies innovation of
consumer-friendly products that can provide desirable services
to the car owner.
The current version of the bill establishes mandatory
disclosure requirements, so that consumers are informed up
front what information manufacturers are gathering from their
vehicles and what is being done with it. The bill also limits
automakers' ability to sell or transmit personal driver
information to a third party without the owner's consent, as
well as grants the owner the ability to restrict manufacturers
from collecting personal vehicle data, unless it is
information necessary for repair, maintenance, or vehicle
safety. The author contends that the bill simply establishes
safeguards where there are none, and reaffirms the fundamental
right of a vehicle owner to have control over the information
their vehicle creates.
2.Where does all this data go now ? Vehicles increasingly
collect data about themselves and then communicate that data
in some fashion. This data is generally in a raw form that
requires proprietary tools to download and interpret. It is
currently unclear what is happening with the data that
vehicles collect; and, no doubt, what is collected and how it
is used is rapidly evolving. Some facts are clear, however,
including that most vehicle buyers have no idea what data
their vehicle generates, who has access to that data, and for
what purposes it is used. The law appears to be silent as to
who owns this data, but as of now, vehicle manufacturers are
in control of it due to their knowledge of the technology
installed on the vehicles they sell. It seems likely, given
the significant trade and sale of personal data, that those
with access to the data - mainly vehicle manufacturers and the
telecommunications companies with which they work - may have
an interest in retaining control over this data in order to
profit from it. This bill attempts to provide consumers with
some knowledge and some control over that data.
3.Which information ? Some assert that a person's vehicle is
often the most powerful computing device he or she possesses.
As the makers of these devices, auto manufacturers, and those
businesses with whom they contract, know and can alter what
data a car produces, stores, and transmits. Consumers and
other businesses do not. This bill therefore broadly defines
vehicle information and then attempts to put registered owners
in control of the information by allowing them to opt out of
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the vehicle's production, storage, and transmission of data
and to access the data themselves from within the vehicle as
it is being produced.
Vehicle manufacturers argue that the data is integral to the
operation of the vehicle and therefore cannot be left to the
control of the owner. Further, they and other opponents state
that allowing access to that information by vehicle owners
could result in significant harm, including odometer
tampering, tracking of commercial vehicles, and tracking of a
driver by an abusive registered owner.
The bill raises important issues: Who is the rightful owner
of this data? If ownership is unclear, to what extent should
the registered owner of the vehicle control the resulting
data? What right to privacy does a driver have over the
data? What proprietary rights do the manufacturers of
vehicles, their components, and transmitters of the data have?
4.Consumer protection, disclosure, and DMV enforcement . The
Vehicle Code requires that the Department of Motor Vehicles
(DMV) license vehicle manufacturers and dealers before they
can legally sell cars in this state. State law also requires
various disclosures on the vehicle, in the sales contract or
elsewhere, when a manufacturer or dealer offers a vehicle for
sale or lease, including affixing price stickers. DMV ensures
that dealers and manufacturers adhere to these provisions of
state law through its inspections of the businesses that it
licenses.
This bill requires the manufacturer to disclose in the owner's
manual, on a separate document prior to purchase or lease, and
finally with a statement affixed to the side window or
windshield of the new vehicle that a particular vehicle
records, generates, collects, or stores information. In order
to ensure that DMV enforces these disclosures, the bill would
need to include these disclosures within those things dealers
and manufacturers must do in order to comply with their DMV
occupational licenses. Also, the bill omits mention of
dealers altogether, who, rather than manufacturers, would
appropriately be responsible for disclosure to a potential
buyer both via the separate document and on the vehicle. The
committee may therefore wish to amend the bill to place the
responsibility for the disclosures at the point of sale on
dealers, and to include the disclosures within those acts
required of DMV dealer and manufacturer licensees.
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5.What about data for research and for making our transportation
systems work ? Vehicle data is necessary to improve vehicle
safety and is needed to operate our transportation systems.
As an example, the message signs on state highways that
indicate how many minutes it takes to travel from the sign to
a particular destination often use data that devices within
the highway gather directly from vehicles' toll transponders
as they pass by. This data is collected anonymously.
Similarly, vehicle event recorders can be used to collect
data, again anonymously pursuant to existing law, for the
purpose of improving motor vehicle safety. This bill omits
the collection of data in order to improve motor vehicle
safety but does allow for a vehicle to communicate to traffic
management networks for various purposes. The authority for a
transportation agency to use a vehicle's information in order
to operate its transportation system appears to need to be
expanded and to be amended to ensure the privacy of the driver
and passengers. The committee may therefore wish to amend the
bill to ensure sufficient data for vehicle safety and
transportation operations purposes, while ensuring adequate
privacy protection for vehicle owners and drivers.
6.Support if amended . The Consumer Federation of California
indicates that it would support the bill with better defined
enforcement of its provisions and with three amendments:
Prohibit insurers from having access to personal
information from vehicles, except as already provided for
under "Pay as You Drive" insurance regulations.
Clarify that a vehicle owner cannot withhold consent to
disclose data to a manufacturer when it is required to
discharge a manufacturer's duty under a vehicle warranty.
Strike the broad privacy exemption that allows
downloading of vehicle information by another motor vehicle
or transportation infrastructure for vehicle safety or
traffic management purposes.
1.Opposition . Opponents assert that the bill will jeopardize
consumer safety and security, stifle innovation, hinder
continued investment in vehicle technologies, and be nearly
impossible to implement, particularly the provisions requiring
access to data and opting out of data generation. They note
specifically that requiring vehicle manufacturers and wireless
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providers to make all vehicle data instantaneously available
to owners and drivers for download would make the vehicle and
the related wireless network vulnerable to unauthorized access
and would give unlimited access to proprietary systems within
and outside of the vehicle. Auto and engine makers note that
this third-party access to their systems could compromise
vehicle function, including safety functions, and that a
single vehicle could offer access into all vehicles that
particular manufacturer makes. Because of these and other
complex and controversial issues the bill raises, several
opponents have asked that the committee refer this bill to
interim hearing and have committed to participate fully in a
serious examination of the issues raised by the bill.
2.Double-referral . The Rules Committee referred this bill to
both the Transportation and Housing Committee and to the
Judiciary Committee. Therefore, if this bill passes this
committee, it will be referred to the Committee on Judiciary,
which has jurisdiction over matters of privacy, contracts,
warranties, trade secrets, and liability, and therefore would
be the appropriate forum for considering the issues raised in
comments 2, 3, and 6 above.
POSITIONS: (Communicated to the committee before noon on
Wednesday, April 16,
2014.)
SUPPORT: AAA of Northern California (sponsor)
Auto Club of Southern California (sponsor)
Autohaus
Automatic Labs, Inc.
Automotive Service Councils of California
Ayers Automotive Repair
Bridgestone Retail Operations
California Automotive Business Coalition
California Emissions Testing Industry Association
California Small Business Association
California Tow Truck Association
Clark Motors, Inc.
Glendora Chamber Legislative Committee
Hispanic 100
Independent Automotive Professionals Association
Latin Business Association
National Insurance Crime Bureau
Quality Tune Up Shops (Side B Corporation)
Regional Black Chamber of Commerce - San Fernando
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Valley
Stil-Mor Automotive
Village Automotive Repair
Hon. John Whitfield, Waterford City Council
Member
2 individuals
OPPOSED: AT&T
Alliance of Automobile Manufacturers
Association of Global Automakers
Automotive Service Association
California Association of Highway Patrolman
Civil Justice Association of California
California Manufacturers and Technology
Association
California New Car Dealers Association
California Truck and Engine Manufacturers
Association
CTIA - The Wireless Association
Daimler
General Motors
Motor & Equipment Manufacturers Association
NAACP - California State
Peace Officers Research Association of California
Sirius XM
Tech Net
Truck and Engine Manufacturers Association
UAW Region 5
Verizon
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