Senate BillNo. 34


Introduced by Senator Hill

December 1, 2014


An act to amend Sections 1798.29 and 1798.82 of, and to add Title 1.81.23 (commencing with Section 1798.90.5) to Part 4 of Division 3 of, the Civil Code, relating to personal information.

LEGISLATIVE COUNSEL’S DIGEST

SB 34, as introduced, Hill. Automated license plate recognition systems: use of data.

(1) Existing law authorizes the Department of the California Highway Patrol to retain license plate data captured by license plate recognition (LPR) technology, also referred to as an automated license plate recognition (ALPR) system, for not more than 60 days unless the data is being used as evidence or for the investigation of felonies. Existing law prohibits the department from selling the data or from making the data available to an agency that is not a law enforcement agency or an individual that is not a law enforcement officer.

Existing law authorizes the department to use LPR data for the purpose of locating vehicles or persons reasonably suspected of being involved in the commission of a public offense, and requires the department to monitor the internal use of the data to prevent unauthorized use and to submit to the Legislature, as a part of the annual automobile theft report, information on the department’s LPR practices and usage.

This bill would impose specified requirements on an “ALPR operator” as defined, including, among others, ensuring that the information the ALPR operator collects is protected with certain safeguards, and implementing and maintaining specified security procedures and a usage and privacy policy with respect to that information.

The bill would require an ALPR operator that accesses or provides access to ALPR information to maintain a specified record of that access.

This bill would also require an “ALPR end-user,” as defined, to implement and maintain a specified usage and privacy policy.

The bill would, in addition to any other sanctions, penalties, or remedies provided by law, authorize an individual who has been harmed by a violation of these provisions to bring a civil action in any court of competent jurisdiction against a person who knowingly caused that violation.

The bill would require a public agency that considers implementing a program to gather information through the use of an ALPR system to provide an opportunity for public comment at a regularly scheduled public meeting of the governing body of the public agency before it implements the program.

(2) Existing law requires any agency, and any person or business conducting business in California, that owns or licenses computerized data that includes personal information, as defined, to disclose in specified ways, any breach of the security of the system or data, as defined, following discovery or notification of the security breach, to any California resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Existing law defines “personal information” for these purposes to include an individual’s first name and last name, or first initial and last name, in combination with one or more designated data elements relating to, among other things, social security numbers, driver’s license numbers, financial accounts, and medical information.

This bill would include information or data collected through the use or operation of an automated license plate recognition system, when that information is not encrypted and is used in combination with an individual’s name, in the definition of “personal information” discussed above.

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

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

P2    1

SECTION 1.  

Section 1798.29 of the Civil Code is amended
2to read:

3

1798.29.  

(a) Any agency that owns or licenses computerized
4data that includes personal information shall disclose any breach
P3    1of the security of the system following discovery or notification
2of the breach in the security of the data to any resident of California
3whose unencrypted personal information was, or is reasonably
4believed to have been, acquired by an unauthorized person. The
5disclosure shall be made in the most expedient time possible and
6without unreasonable delay, consistent with the legitimate needs
7of law enforcement, as provided in subdivision (c), or any measures
8necessary to determine the scope of the breach and restore the
9reasonable integrity of the data system.

10(b) Any agency that maintains computerized data that includes
11personal information that the agency does not own shall notify the
12owner or licensee of the information of any breach of the security
13of the data immediately following discovery, if the personal
14information was, or is reasonably believed to have been, acquired
15by an unauthorized person.

16(c) The notification required by this section may be delayed if
17a law enforcement agency determines that the notification will
18impede a criminal investigation. The notification required by this
19section shall be made after the law enforcement agency determines
20that it will not compromise the investigation.

21(d) Any agency that is required to issue a security breach
22notification pursuant to this section shall meet all of the following
23requirements:

24(1) The security breach notification shall be written in plain
25language.

26(2) The security breach notification shall include, at a minimum,
27the following information:

28(A) The name and contact information of the reporting agency
29subject to this section.

30(B) A list of the types of personal information that were or are
31reasonably believed to have been the subject of a breach.

32(C) If the information is possible to determine at the time the
33notice is provided, then any of the following: (i) the date of the
34breach, (ii) the estimated date of the breach, or (iii) the date range
35within which the breach occurred. The notification shall also
36include the date of the notice.

37(D) Whether the notification was delayed as a result of a law
38enforcement investigation, if that information is possible to
39determine at the time the notice is provided.

P4    1(E) A general description of the breach incident, if that
2information is possible to determine at the time the notice is
3provided.

4(F) The toll-free telephone numbers and addresses of the major
5credit reporting agencies, if the breach exposed a social security
6number or a driver’s license or California identification card
7number.

8(3) At the discretion of the agency, the security breach
9notification may also include any of the following:

10(A) Information about what the agency has done to protect
11individuals whose information has been breached.

12(B) Advice on steps that the person whose information has been
13breached may take to protect himself or herself.

14(4) In the case of a breach of the security of the system involving
15personal information defined in paragraph (2) of subdivision (g)
16for an online account, and no other personal information defined
17in paragraph (1) of subdivision (g), the agency may comply with
18this section by providing the security breach notification in
19electronic or other form that directs the person whose personal
20information has been breached to promptly change his or her
21password and security question or answer, as applicable, or to take
22other steps appropriate to protect the online account with the
23agency and all other online accounts for which the person uses the
24same user name or email address and password or security question
25or answer.

26(5) In the case of a breach of the security of the system involving
27personal information defined in paragraph (2) of subdivision (g)
28 for login credentials of an email account furnished by the agency,
29the agency shall not comply with this section by providing the
30security breach notification to that email address, but may, instead,
31comply with this section by providing notice by another method
32described in subdivision (i) or by clear and conspicuous notice
33delivered to the resident online when the resident is connected to
34the online account from an Internet Protocol address or online
35location from which the agency knows the resident customarily
36accesses the account.

37(e) Any agency that is required to issue a security breach
38notification pursuant to this section to more than 500 California
39residents as a result of a single breach of the security system shall
40electronically submit a single sample copy of that security breach
P5    1notification, excluding any personally identifiable information, to
2the Attorney General. A single sample copy of a security breach
3notification shall not be deemed to be within subdivision (f) of
4Section 6254 of the Government Code.

5(f) For purposes of this section, “breach of the security of the
6system” means unauthorized acquisition of computerized data that
7compromises the security, confidentiality, or integrity of personal
8information maintained by the agency. Good faith acquisition of
9personal information by an employee or agent of the agency for
10the purposes of the agency is not a breach of the security of the
11system, provided that the personal information is not used or
12subject to further unauthorized disclosure.

13(g) For purposes of this section, “personal information” means
14either of the following:

15(1) An individual’s first name or first initial and last name in
16combination with any one or more of the following data elements,
17when either the name or the data elements are not encrypted:

18(A) Social security number.

19(B) Driver’s license number or California identification card
20number.

21(C) Account number, credit or debit card number, in
22combination with any required security code, access code, or
23password that would permit access to an individual’s financial
24account.

25(D) Medical information.

26(E) Health insurance information.

begin insert

27(F) Information or data collected through the use or operation
28of an automated license plate recognition system, as defined in
29Section 1798.90.5.

end insert

30(2) A user name or email address, in combination with a
31password or security question and answer that would permit access
32to an online account.

33(h) (1) For purposes of this section, “personal information”
34does not include publicly available information that is lawfully
35made available to the general public from federal, state, or local
36government records.

37(2) For purposes of this section, “medical information” means
38any information regarding an individual’s medical history, mental
39or physical condition, or medical treatment or diagnosis by a health
40care professional.

P6    1(3) For purposes of this section, “health insurance information”
2means an individual’s health insurance policy number or subscriber
3identification number, any unique identifier used by a health insurer
4to identify the individual, or any information in an individual’s
5application and claims history, including any appeals records.

6(i) For purposes of this section, “notice” may be provided by
7one of the following methods:

8(1) Written notice.

9(2) Electronic notice, if the notice provided is consistent with
10the provisions regarding electronic records and signatures set forth
11in Section 7001 of Title 15 of the United States Code.

12(3) Substitute notice, if the agency demonstrates that the cost
13of providing notice would exceed two hundred fifty thousand
14dollars ($250,000), or that the affected class of subject persons to
15be notified exceeds 500,000, or the agency does not have sufficient
16contact information. Substitute notice shall consist of all of the
17following:

18(A) Email notice when the agency has an email address for the
19subject persons.

20(B) Conspicuous posting of the notice on the agency’s Internet
21Web site page, if the agency maintains one.

22(C) Notification to major statewide media and the Office of
23Information Security within the Department of Technology.

24(j) Notwithstanding subdivision (i), an agency that maintains
25its own notification procedures as part of an information security
26policy for the treatment of personal information and is otherwise
27consistent with the timing requirements of this part shall be deemed
28to be in compliance with the notification requirements of this
29section if it notifies subject persons in accordance with its policies
30in the event of a breach of security of the system.

31(k) Notwithstanding the exception specified in paragraph (4) of
32subdivision (b) of Section 1798.3, for purposes of this section,
33“agency” includes a local agency, as defined in subdivision (a) of
34Section 6252 of the Government Code.

35

SEC. 2.  

Section 1798.82 of the Civil Code is amended to read:

36

1798.82.  

(a) A person or business that conducts business in
37California, and that owns or licenses computerized data that
38includes personal information, shall disclose a breach of the
39security of the system following discovery or notification of the
40breach in the security of the data to a resident of California whose
P7    1unencrypted personal information was, or is reasonably believed
2to have been, acquired by an unauthorized person. The disclosure
3shall be made in the most expedient time possible and without
4unreasonable delay, consistent with the legitimate needs of law
5enforcement, as provided in subdivision (c), or any measures
6necessary to determine the scope of the breach and restore the
7reasonable integrity of the data system.

8(b) A person or business that maintains computerized data that
9includes personal information that the person or business does not
10own shall notify the owner or licensee of the information of the
11breach of the security of the data immediately following discovery,
12if the personal information was, or is reasonably believed to have
13been, acquired by an unauthorized person.

14(c) The notification required by this section may be delayed if
15a law enforcement agency determines that the notification will
16impede a criminal investigation. The notification required by this
17section shall be made promptly after the law enforcement agency
18determines that it will not compromise the investigation.

19(d) A person or business that is required to issue a security
20breach notification pursuant to this section shall meet all of the
21following requirements:

22(1) The security breach notification shall be written in plain
23language.

24(2) The security breach notification shall include, at a minimum,
25the following information:

26(A) The name and contact information of the reporting person
27or business subject to this section.

28(B) A list of the types of personal information that were or are
29reasonably believed to have been the subject of a breach.

30(C) If the information is possible to determine at the time the
31notice is provided, then any of the following: (i) the date of the
32breach, (ii) the estimated date of the breach, or (iii) the date range
33within which the breach occurred. The notification shall also
34include the date of the notice.

35(D) Whether notification was delayed as a result of a law
36enforcement investigation, if that information is possible to
37determine at the time the notice is provided.

38(E) A general description of the breach incident, if that
39information is possible to determine at the time the notice is
40provided.

P8    1(F) The toll-free telephone numbers and addresses of the major
2credit reporting agencies if the breach exposed a social security
3number or a driver’s license or California identification card
4number.

5(G) If the person or business providing the notification was the
6source of the breach, an offer to provide appropriate identity theft
7prevention and mitigation services, if any, shall be provided at no
8cost to the affected person for not less than 12 months, along with
9all information necessary to take advantage of the offer to any
10person whose information was or may have been breached if the
11breach exposed or may have exposed personal information defined
12in subparagraphs (A) and (B) of paragraph (1) of subdivision (h).

13(3) At the discretion of the person or business, the security
14breach notification may also include any of the following:

15(A) Information about what the person or business has done to
16protect individuals whose information has been breached.

17(B) Advice on steps that the person whose information has been
18breached may take to protect himself or herself.

19(4) In the case of a breach of the security of the system involving
20personal information defined in paragraph (2) of subdivision (h)
21for an online account, and no other personal information defined
22in paragraph (1) of subdivision (h), the person or business may
23comply with this section by providing the security breach
24notification in electronic or other form that directs the person whose
25personal information has been breached promptly to change his
26or her password and security question or answer, as applicable, or
27to take other steps appropriate to protect the online account with
28the person or business and all other online accounts for which the
29person whose personal information has been breached uses the
30same user name or email address and password or security question
31or answer.

32(5) In the case of a breach of the security of the system involving
33personal information defined in paragraph (2) of subdivision (h)
34for login credentials of an email account furnished by the person
35or business, the person or business shall not comply with this
36section by providing the security breach notification to that email
37address, but may, instead, comply with this section by providing
38notice by another method described in subdivision (j) or by clear
39and conspicuous notice delivered to the resident online when the
40resident is connected to the online account from an Internet
P9    1Protocol address or online location from which the person or
2business knows the resident customarily accesses the account.

3(e) A covered entity under the federal Health Insurance
4Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d
5et seq.) will be deemed to have complied with the notice
6requirements in subdivision (d) if it has complied completely with
7Section 13402(f) of the federal Health Information Technology
8for Economic and Clinical Health Act (Public Law 111-5).
9However, nothing in this subdivision shall be construed to exempt
10a covered entity from any other provision of this section.

11(f) A person or business that is required to issue a security breach
12notification pursuant to this section to more than 500 California
13residents as a result of a single breach of the security system shall
14electronically submit a single sample copy of that security breach
15notification, excluding any personally identifiable information, to
16the Attorney General. A single sample copy of a security breach
17notification shall not be deemed to be within subdivision (f) of
18Section 6254 of the Government Code.

19(g) For purposes of this section, “breach of the security of the
20system” means unauthorized acquisition of computerized data that
21compromises the security, confidentiality, or integrity of personal
22information maintained by the person or business. Good faith
23acquisition of personal information by an employee or agent of
24the person or business for the purposes of the person or business
25is not a breach of the security of the system, provided that the
26personal information is not used or subject to further unauthorized
27disclosure.

28(h) For purposes of this section, “personal information” means
29either of the following:

30(1) An individual’s first name or first initial and last name in
31combination with any one or more of the following data elements,
32when either the name or the data elements are not encrypted:

33(A) Social security number.

34(B) Driver’s license number or California identification card
35number.

36(C) Account number, credit or debit card number, in
37combination with any required security code, access code, or
38password that would permit access to an individual’s financial
39account.

40(D) Medical information.

P10   1(E) Health insurance information.

begin insert

2(F) Information or data collected through the use or operation
3of an automated license plate recognition system, as defined in
4Section 1798.90.5.

end insert

5(2) A user name or email address, in combination with a
6password or security question and answer that would permit access
7to an online account.

8(i) (1) For purposes of this section, “personal information” does
9not include publicly available information that is lawfully made
10available to the general public from federal, state, or local
11government records.

12(2) For purposes of this section, “medical information” means
13any information regarding an individual’s medical history, mental
14or physical condition, or medical treatment or diagnosis by a health
15care professional.

16(3) For purposes of this section, “health insurance information”
17means an individual’s health insurance policy number or subscriber
18identification number, any unique identifier used by a health insurer
19to identify the individual, or any information in an individual’s
20application and claims history, including any appeals records.

21(j) For purposes of this section, “notice” may be provided by
22one of the following methods:

23(1) Written notice.

24(2) Electronic notice, if the notice provided is consistent with
25the provisions regarding electronic records and signatures set forth
26in Section 7001 of Title 15 of the United States Code.

27(3) Substitute notice, if the person or business demonstrates that
28the cost of providing notice would exceed two hundred fifty
29thousand dollars ($250,000), or that the affected class of subject
30persons to be notified exceeds 500,000, or the person or business
31does not have sufficient contact information. Substitute notice
32shall consist of all of the following:

33(A) Email notice when the person or business has an email
34address for the subject persons.

35(B) Conspicuous posting of the notice on the Internet Web site
36page of the person or business, if the person or business maintains
37one.

38(C) Notification to major statewide media.

39(k) Notwithstanding subdivision (j), a person or business that
40maintains its own notification procedures as part of an information
P11   1security policy for the treatment of personal information and is
2otherwise consistent with the timing requirements of this part, shall
3be deemed to be in compliance with the notification requirements
4of this section if the person or business notifies subject persons in
5accordance with its policies in the event of a breach of security of
6the system.

7

SEC. 3.  

Title 1.81.23 (commencing with Section 1798.90.5)
8is added to Part 4 of Division 3 of the Civil Code, to read:

9 

10Title 1.81.23.  COLLECTION OF LICENSE PLATE
11INFORMATION

12

 

13

1798.90.5.  

The following definitions shall apply for purposes
14of this title:

15(a) “Automated license plate recognition end-user” or “ALPR
16end-user” means a person that accesses or uses ALPR information,
17but does not include a transportation agency when subject to
18Section 31490 of the Streets and Highways Code.

19(b) “Automated license plate recognition information,” or
20“ALPR information” means information or data collected through
21the use of an ALPR system.

22(c) “Automated license plate recognition operator” or “ALPR
23operator” means a person that operates an ALPR system, or that
24stores or maintains ALPR information, but does not include a
25 transportation agency when subject to Section 31490 of the Streets
26and Highways Code.

27(d) “Automated license plate recognition system” or “ALPR
28system” means a system of one or more mobile or fixed cameras
29combined with computer algorithms to read and convert images
30of registration plates and the characters they contain into
31computer-readable data.

32(e) “Person” includes a law enforcement agency, government
33agency, private entity, or individual.

34(f) “Public agency” means and includes every state agency and
35every local agency.

36

1798.90.51.  

An ALPR operator shall do all of the following:

37(a) (1) Ensure that ALPR information is protected with
38reasonable operational, administrative, technical, and physical
39safeguards to ensure its confidentiality and integrity.

P12   1(2) Implement and maintain reasonable security procedures and
2practices in order to protect ALPR information from unauthorized
3access, destruction, use, modification, or disclosure.

4(b) (1) Implement and maintain a usage and privacy policy in
5order to ensure that the collection of ALPR information is
6consistent with respect for individuals’ privacy and civil liberties.
7 The usage and privacy policy shall be available in writing, and, if
8the ALPR operator has an Internet Web site, the usage and privacy
9policy shall be posted conspicuously on that Internet Web site.

10(2) The usage and privacy policy shall, at a minimum, include
11all of the following:

12(A) The authorized purposes for using ALPR systems and
13collecting ALPR information.

14(B) A description of the employees and independent contractors
15who are authorized to use ALPR systems, to collect ALPR
16information, and to access ALPR information. The policy shall
17identify the training requirements necessary for those authorized
18employees and independent contractors.

19(C) A description of how the use of ALPR systems will be
20monitored to ensure compliance with all applicable privacy laws
21and a process for periodic system audits, including audits of the
22access log required by Section 1798.90.52.

23(D) A description of reasonable measures that will be used to
24ensure the accuracy of ALPR information and a process to correct
25data errors.

26(E) A description of how the ALPR operator will comply with
27the security procedures and practices implemented and maintained
28pursuant to subdivision (b).

29(F) The length of time ALPR information will be stored or
30retained.

31(G) The official custodian, or owner, of ALPR information and
32which employees and independent contractors have the
33responsibility and accountability for implementing subdivision (b)
34and this subdivision.

35(H) The purpose of, and process for, sharing or disseminating
36ALPR information with other persons.

37

1798.90.52.  

If an ALPR operator accesses or provides access
38to ALPR information, the ALPR operator shall maintain a record
39of that access. At a minimum, the record shall include all of the
40following:

P13   1(a) The date and time the information is accessed.

2(b) The license plate number or other data elements used to
3query the ALPR database or system.

4(c) The person who accesses the information.

5(d) The purpose for accessing the information.

6

1798.90.53.  

(a) An ALPR end-user shall implement and
7maintain a usage and privacy policy in order to ensure that the
8access and use of ALPR information is consistent with respect for
9individuals’ privacy and civil liberties. The usage and privacy
10policy shall be available in writing, and, if the ALPR end-user has
11an Internet Web site, the usage and privacy policy shall be posted
12conspicuously on that Internet Web site.

13(b) The usage and privacy policy shall, at a minimum, include
14all of the following:

15(1) The authorized purposes for accessing and using ALPR
16information.

17(2) A description of the employees and independent contractors
18who are authorized to access and use ALPR information. The
19policy shall identify the training requirements necessary for those
20authorized employees and independent contractors.

21(3) A description of how the access and use of ALPR
22information will be monitored to ensure compliance with all
23applicable privacy laws and a process for periodic system audits.

24(4) The length of time ALPR information will be retained by
25the ALPR end-user and the process the ALPR end-user will utilize
26to determine if and when to destroy the retained ALPR information.

27(5) The official custodian of ALPR information.

28(6) The purpose of, and process for, sharing or disseminating
29ALPR information with other persons.

30(7) A description of how the end-user will implement reasonable
31security measures to secure ALPR information from unauthorized
32access, destruction, use, modification, or disclosure.

33

1798.90.54.  

(a) In addition to any other sanctions, penalties,
34or remedies provided by law, an individual who has been harmed
35by a violation of this title may bring a civil action in any court of
36competent jurisdiction against a person who knowingly caused
37that violation.

38(b) The court may award a combination of any one or more of
39the following:

P14   1(1) Actual damages, but not less than liquidated damages in the
2amount of two thousand five hundred dollars ($2,500).

3(2) Punitive damages upon proof of willful or reckless disregard
4of the law.

5(3) Reasonable attorney’s fees and other litigation costs
6reasonably incurred.

7(4) Other preliminary and equitable relief as the court determines
8to be appropriate.

9

1798.90.55.  

Notwithstanding any other law or regulation, a
10public agency that considers implementing a program to gather
11information through the use of an ALPR system shall provide an
12opportunity for public comment at a regularly scheduled public
13meeting of the governing body of the public agency before it
14implements the program.



O

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