Electronic Fare Payment System Privacy Considerations APTA Legal Affairs Seminar Palm Springs, California, February 25, 2014 Brooke Abola Senior Counsel, Office of General Counsel Metropolitan Transportation Commission, Oakland, CA
Clipper Program Overview Operating on 8 systems that together account for 95% of regional transit rides 45% market share 1.3 million active cards Processing $30M+/month Phased implementation from 2006-2012 Ongoing and planned expansions 2
Why Clipper? MTC has legislative mandate to coordinate transit services 9-county region 7.1 million residents 1.5 million daily transit trips 28 transit systems Bus, ferry, light rail, commuter rail, heavy rail No system carries >50% of riders Diverse fare programs 3
Program Timeline
MTC s Clipper Privacy Policy MTC is committed to ensuring customer privacy and security. Policy established 2006 Major updates in 2010, 2011, 2012 and 2013 Driven by California law Stats. 2003, Chapter 829; effective 7/1/04 Codified at Business and Professions Code Sections 22575-22579 Personally Identifiable Information (PII) under the law generally includes information that identifies or describes a specific individual 5
Elements of Privacy Policy Definition of PII: Clipper -specific definition How PII Collected/Used Third Parties with Access to PII Retention of PII: California law limits to 4.5 years Security of PII: Technological and procedural Updates to Policy: How communicated 6
Recent California Legislative Changes Increasing consumer protections AB 370 Effective 1/1/14 Do Not Track law Modified Bus. & Prof. Code Section 22575 AB 1149/SB 46 Effective 1/1/14 Existing law (Civ. Code Section 1798.29) requires CA residents to receive notice of security breach Modified to apply to local agencies SB 568 Effective 1/1/15 Limits types of advertising on websites directed to minors Requires websites and apps to allow minors to remove content they have posted 7
Recent California Legislative Changes AB 179: Specific to electronic transit fare payment Modifies existing law that applied to electronic toll collection systems Streets & Highways Code Sections 31490 et seq. Limits storage and sharing of PII Clipper Program Response Privacy policy distribution Customer opt-in initiative Practical Applications Customer communications Clipper card theft Missing person 8
Pending Privacy Legislation in California AB 1442: Would extend the Information Practices Act of 1977 to local government SB 828: Affects local agency cooperation with federal agencies seeking electronic data; urgency bill SB 383: Credit card-related PII and downloadable products AB 1291: Would require companies to reveal customer data shared with third parties if requested by customer Possible further enhancements to Do Not Track statute Various bills proposing amendments to BPC 22575 (most recent is SB 849) 9
A Peek at the Future: C2 Implementation 2013 2014 2015 2016 2017 2018 2019 Phase 3 Launch: Napa/ Solano Operators PLANNING PHASE Phase 3 Launch: East Bay Operators Phase 3 Launch: North Bay/ 101 Corridor Operators Planning Process Detail PROCUREMENT PHASE Award Contract(s) 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 Mission/Vision/Goals State of the Clipper System/Industry Analysis & Peer Review Peer Agency Concept of Operations Site Visits Fare Policy Coordination Technology/Operations Transition Plan Governance Options Analysis Procurement Strategy IMPLEMENTATION PHASE Technical Specification(s) 2015 Q1 Begin C2 Operations Parallel Ops Nov. 2019 End of Current Contract
MTC Clipper and Privacy Contacts Carol Kuester Director, Electronic Payment Systems 510.817.5853; ckuester@mtc.ca.gov Cynthia Segal Deputy General Counsel 510.817.5713; csegal@mtc.ca.gov Lynn Valdivia Principal, Clipper 510.817.5766; lvaldivia@mtc.ca.gov Brooke Abola Senior Counsel 510.817.5956; babola@mtc.ca.gov Stephen Abbanat Senior Program Coordinator, Technical Operations and Financials 510.817.5822; sabbanat@mtc.ca.gov Key project documents available at: clipper.mtc.ca.gov Derek Toups Senior Program Coordinator, Strategic Planning and Program Expansion & Enhancements 510.817.5726; dtoups@mtc.ca.gov David Weir Senior Program Coordinator, Cardholder and Operator Support 510.817.5979; dweir@mtc.ca.gov 11