Municipalities need to comply with state law. In this case, CalECPA gives California residents a number of protections with respect to location data collection by government agencies. Generally speaking, collection is allowed when either a warrant is used or a user explicitly consents. Trip data reveals information about your relationships, life style, and medical status, so getting this right is an important issue for user privacy and safety.

To read more about this, the nonpartisan CA Office of Legislative Counsel has published an analysis of how the law applies, which found that this type of collection does in fact violate CalECPA in its current form [1]. The debate will likely come down to what steps need to be taken to make the collection scheme compliant.

[1] https://cdn.theatlantic.com/assets/media/files/calecpa_dockl...