California 2023-2024 Regular Session

California Assembly Bill ACR224 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Concurrent Resolution No. 224Introduced by Assembly Member McKinnor(Coauthors: Assembly Members Gipson, Jackson, and Ortega)(Coauthor: Senator Caballero)July 03, 2024 Relative to safe driver incentives. LEGISLATIVE COUNSEL'S DIGESTACR 224, as introduced, McKinnor. Safe driver incentive programs.This measure would urge the Insurance Commissioner to take steps to make optional safe driver incentive programs available for insurance use in California.Digest Key Fiscal Committee: YES Bill TextWHEREAS, California voters passed Proposition 103 in 1988 to ensure fair automobile insurance rates and more control over the premiums they pay. The initiative mandated that auto insurers rely primarily on three controllable driver factors: driving safety record, annual miles driven, and years of driving experience; andWHEREAS, Proposition 103 did not define the term driving safety record. More than 30 years ago, the Department of Insurance issued regulations defining this term in the only feasible manner existing at the time: a drivers motor vehicle record (MVR) kept at the Department of Motor Vehicles. Auto insurers use MVR data about past driving events to calculate premiums, including when a driver causes a crash, receives a ticket, or is cited for other moving violations, such as driving under the influence or reckless driving; andWHEREAS, Technology has been developed since the 1990s that allows drivers to monitor their own driving behaviors and receive real-time feedback that shows their risk based on highly credible predictors, including behaviors such as speeding, hard braking, overly rapid acceleration, and distracted driving. These programs are known commercially as safe driver incentives; andWHEREAS, California is the only state in the country that prohibits drivers from choosing if they would like their auto insurance premiums to include calculations based upon an approved safe driver incentive program, even if they could pay less by including those calculations; andWHEREAS, Safe driver incentive programs can lead to improved driving behaviors by providing understandable feedback that helps drivers to recognize and change their dangerous driving behaviors. This feedback contributes to reducing the frequency and severity of accidents, which is critically important because the rate of traffic fatalities reached a 20-year high in 2022; andWHEREAS, Moving violations only account for part of a drivers overall behavior, and there is a public concern about differing traffic enforcement rates for minorities, as showcased in recent research by Stanford and Harvard universities. California should allow drivers to choose to have their insurance premiums be based in part on actual driving behaviors as measured through a safe driver incentive program to reduce the emphasis on traffic stops and moving violations; andWHEREAS, Driving within the speed limit and reducing the amount of hard braking and sudden accelerations reduce the auto emissions for each trip. While California is pursuing greater electric vehicle presence on the road, steps to reduce the impact of gasoline-powered vehicles on the road remains imperative; andWHEREAS, California has led the charge on consumer rights and privacy protection, and could do so with a safe driver incentive program. A policy allowing the use of this type of program in California would need to conform to the principles established by the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100) of Part 4 of Division 3 of the Civil Code). Those principles would include an opt-in structure, right to request information, right to correct information, and a right to opt out at any time; andWHEREAS, The Insurance Commissioner has the authority to interpret Proposition 103 to allow an additional method for insurers to calculate a driving safety record for purposes of rating; andWHEREAS, The commissioner may adopt rulemaking to permit the use of voluntary, opt-in safe driver incentive programs in California; andWHEREAS, The Legislature has an interest in ensuring California consumers have access to programs that provide greater equity, road safety, and environmental protection in a manner that safeguards their privacy and security; now, therefore, be itResolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature hereby urges the Insurance Commissioner to take steps necessary to make optional safe driver incentive programs available for insurance use in California; and be it furtherResolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the Department of Insurance and to the author for appropriate distribution.
2	2
3	3	CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Concurrent Resolution No. 224Introduced by Assembly Member McKinnor(Coauthors: Assembly Members Gipson, Jackson, and Ortega)(Coauthor: Senator Caballero)July 03, 2024 Relative to safe driver incentives. LEGISLATIVE COUNSEL'S DIGESTACR 224, as introduced, McKinnor. Safe driver incentive programs.This measure would urge the Insurance Commissioner to take steps to make optional safe driver incentive programs available for insurance use in California.Digest Key Fiscal Committee: YES
4	4
5	5
6	6
7	7
8	8
9	9	CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
10	10
11	11	Assembly Concurrent Resolution
12	12
13	13	No. 224
14	14
15	15	Introduced by Assembly Member McKinnor(Coauthors: Assembly Members Gipson, Jackson, and Ortega)(Coauthor: Senator Caballero)July 03, 2024
16	16
17	17	Introduced by Assembly Member McKinnor(Coauthors: Assembly Members Gipson, Jackson, and Ortega)(Coauthor: Senator Caballero)
18	18	July 03, 2024
19	19
20	20	Relative to safe driver incentives.
21	21
22	22	LEGISLATIVE COUNSEL'S DIGEST
23	23
24	24	## LEGISLATIVE COUNSEL'S DIGEST
25	25
26	26	ACR 224, as introduced, McKinnor. Safe driver incentive programs.
27	27
28	28	This measure would urge the Insurance Commissioner to take steps to make optional safe driver incentive programs available for insurance use in California.
29	29
30	30	This measure would urge the Insurance Commissioner to take steps to make optional safe driver incentive programs available for insurance use in California.
31	31
32	32	## Digest Key
33	33
34	34	## Bill Text
35	35
36	36	WHEREAS, California voters passed Proposition 103 in 1988 to ensure fair automobile insurance rates and more control over the premiums they pay. The initiative mandated that auto insurers rely primarily on three controllable driver factors: driving safety record, annual miles driven, and years of driving experience; and
37	37
38	38	WHEREAS, Proposition 103 did not define the term driving safety record. More than 30 years ago, the Department of Insurance issued regulations defining this term in the only feasible manner existing at the time: a drivers motor vehicle record (MVR) kept at the Department of Motor Vehicles. Auto insurers use MVR data about past driving events to calculate premiums, including when a driver causes a crash, receives a ticket, or is cited for other moving violations, such as driving under the influence or reckless driving; and
39	39
40	40	WHEREAS, Technology has been developed since the 1990s that allows drivers to monitor their own driving behaviors and receive real-time feedback that shows their risk based on highly credible predictors, including behaviors such as speeding, hard braking, overly rapid acceleration, and distracted driving. These programs are known commercially as safe driver incentives; and
41	41
42	42	WHEREAS, California is the only state in the country that prohibits drivers from choosing if they would like their auto insurance premiums to include calculations based upon an approved safe driver incentive program, even if they could pay less by including those calculations; and
43	43
44	44	WHEREAS, Safe driver incentive programs can lead to improved driving behaviors by providing understandable feedback that helps drivers to recognize and change their dangerous driving behaviors. This feedback contributes to reducing the frequency and severity of accidents, which is critically important because the rate of traffic fatalities reached a 20-year high in 2022; and
45	45
46	46	WHEREAS, Moving violations only account for part of a drivers overall behavior, and there is a public concern about differing traffic enforcement rates for minorities, as showcased in recent research by Stanford and Harvard universities. California should allow drivers to choose to have their insurance premiums be based in part on actual driving behaviors as measured through a safe driver incentive program to reduce the emphasis on traffic stops and moving violations; and
47	47
48	48	WHEREAS, Driving within the speed limit and reducing the amount of hard braking and sudden accelerations reduce the auto emissions for each trip. While California is pursuing greater electric vehicle presence on the road, steps to reduce the impact of gasoline-powered vehicles on the road remains imperative; and
49	49
50	50	WHEREAS, California has led the charge on consumer rights and privacy protection, and could do so with a safe driver incentive program. A policy allowing the use of this type of program in California would need to conform to the principles established by the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100) of Part 4 of Division 3 of the Civil Code). Those principles would include an opt-in structure, right to request information, right to correct information, and a right to opt out at any time; and
51	51
52	52	WHEREAS, The Insurance Commissioner has the authority to interpret Proposition 103 to allow an additional method for insurers to calculate a driving safety record for purposes of rating; and
53	53
54	54	WHEREAS, The commissioner may adopt rulemaking to permit the use of voluntary, opt-in safe driver incentive programs in California; and
55	55
56	56	WHEREAS, The Legislature has an interest in ensuring California consumers have access to programs that provide greater equity, road safety, and environmental protection in a manner that safeguards their privacy and security; now, therefore, be it
57	57
58	58	Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature hereby urges the Insurance Commissioner to take steps necessary to make optional safe driver incentive programs available for insurance use in California; and be it further
59	59
60	60	Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the Department of Insurance and to the author for appropriate distribution.