Consumer Driving Data Protection Act of 2026.

All provisions of Section 1942.8 of the Civil Code regarding temporary occupancy by persons at risk of homelessness were removed from the bill entirely, including definitions, rent adjustment rules, termination procedures, and the January 1, 2031 sunset date.

The bill now adds Article 10.5 (Sections 1861.5 through 1861.6 and beyond) to the Insurance Code, creating a comprehensive legal framework for telematics and usage-based auto insurance programs in California.

The bill declares it furthers the purposes of Proposition 103 and requires a two-thirds legislative vote to amend that initiative measure. Legislative findings cite racial disparities in traffic stops and argue telematics provides a fairer alternative to MVR-based rating.

New definitions established for 'consent,' 'telematics,' 'telematics data,' 'telematics program,' 'scoring model,' 'consumer authorization,' and 'third-party telematics provider.' Telematics is explicitly excluded from covering biometric data, audio/visual recordings of occupants, precise geolocation outside rated trips, and non-driving personal information.

Participation in telematics programs is strictly voluntary. Insurers cannot require participation as a condition of coverage, penalize or surcharge consumers who decline, or condition discounts on participation unless approved by the Insurance Commissioner.

Insurers must obtain prior written or electronic consumer consent before collecting telematics data. Consumer authorization documents must disclose all data categories collected, devices used, purposes, premium impact, third-party providers, retention duration, and consumer rights to access, correct, revoke, and appeal.

Telematics data must be deleted within 24 hours of a consumer leaving the program or changing insurers, and immediately after a rating is assigned. Data cannot be retained longer than necessary for authorized purposes. Biometric data and audio/visual recordings of vehicle occupants are prohibited from collection.

Rate applications using telematics must include complete program descriptions, all data elements, scoring models with algorithms and weighting factors, validation studies, consumer disclosure forms, third-party provider lists, and privacy/security documentation. Proprietary submissions are protected from public disclosure and subpoena.

Telematics data cannot be sold, shared for marketing, used for underwriting or claims handling (except as expressly permitted), combined with external datasets, transferred to affiliates, or used for immigration enforcement. Governmental entities may only access deidentified, aggregated data for roadway safety analysis.

The Insurance Commissioner may prohibit or suspend an insurer's telematics program that causes rates to be excessive, inadequate, or unfairly discriminatory. Insurers must retain compliance documentation for a minimum of seven years and conduct regular validation studies and model governance.

Anti-retaliation provisions prohibit insurers from infringing on consumer rights, requiring unrelated data sharing as a condition of coverage, imposing fees for exercising rights, charging different rates based on privacy choices, or providing different products. Insurers cannot require binding arbitration or waiver of consumer rights as a condition of telematics participation.

The entire provision allowing tenants to temporarily permit occupancy of their dwelling unit by a person at risk of homelessness (Section 1942.8, Civil Code) was removed. This included definitions of 'person at risk of homelessness,' pet occupancy rules, and rent adjustment provisions effective until January 1, 2031.

Co-sponsor Assembly Member Rivas was removed; the bill is now introduced solely by Assembly Member McKinnor.

The urgency clause declaring the bill to take effect immediately was removed, meaning the bill will now take effect on the standard date (January 1) rather than immediately upon enactment.

The definition of 'consent' in Section 1861.5(a) now explicitly requires that consent be given 'in writing,' adding a written consent requirement that was not present in the prior version.

Section 1861.51(a) now states that participation in a telematics program 'shall be strictly voluntary and shall be based upon the insured's written consent,' adding an explicit written consent requirement for enrollment.

The revocation provision in Section 1861.51(c) was changed so that revocation of consent now takes effect immediately ('begin immediately') rather than at the beginning of the following policy term as previously stated. This gives consumers a faster exit from telematics programs.

A new subdivision (h) to Section 1861.5 defines 'written' or 'in writing' to include electronic communications subject to the Uniform Electronic Transactions Act or Section 38.6, clarifying that digital consent satisfies the written requirement.

The fiscal committee review designation changed from 'no' to 'yes,' indicating the bill now requires fiscal analysis, likely due to the removal of the housing provision or other changes affecting state/local finances.