Another viewpoint: BMV collects millions selling drivers’ information

The (Fort Wayne) Journal Gazette

A data privacy law, proposed by state Sen. Liz Brown, R-Fort Wayne, and signed by Gov. Eric Holcomb in the 2023 legislative session, made Indiana one of just 12 states with such protections.

The law, however, doesn’t apply to state agencies selling data about Hoosier residents.

No federal safeguards or consumer protections are in place against those who collect Americans’ information online or at cash registers, then monetize it as part of their business operations. The Fort Wayne Republican’s Senate Bill 5 will give consumers the right, beginning Jan. 1, 2026, to ask for and receive basic information from those who control personal information at the state level.

In March, The Journal Gazette reported the Indiana Bureau of Motor Vehicles is selling residents’ personal information to private companies and individuals, and the practice has been going on for years. The agency doesn’t allow drivers to opt out of the process and doesn’t have to ask for permission to sell their information.

Senate Bill 290, which was also signed by the governor earlier this year, requires the BMV to provide an annual report to the State Budget Committee. It must include the amount received in the calendar year in exchange for the disclosure of motorists’ personal information and its intended use.

The BMV released its first report Dec. 1. It shows the $25.6 million expected by the BMV this year is a fraction of what the department has collected since 2012. WRTV Indianapolis reports the agency has amassed $237 million from selling drivers’ information between 2012 and 2022.

The BMV uses the revenue for branch expenditures, such as salaries, lease payments, security and utility charges as well as credential production costs and credit card processing fees, the report said.

In the most recent legislative session, Sen. Rodney Pol, D-Chesterton, sought to allow motorists to opt out of information-sharing by the BMV and authored Senate Bill 196. It was referred to the Senate Committee on Homeland Security and Transportation but never received a hearing.

Inquiries to the BMV weren’t immediately returned. But the Dec. 1 data sales report said, “Indiana law requires that certain data be made available to qualified entities who meet the eligibility and use requirements contained within Indiana Code 9-14-13-7 or 9-14-13-8.”

The latter citation allows the BMV to disclose “highly restricted personal information” of drivers with their consent. Indiana defines such personal data as an individual’s digital photograph, Social Security number, information on health conditions or impairments, driver’s license or identification document number, name, address (but not ZIP code) and telephone number.

In the absence of consent of a driver, highly personal information may be shared with entities if they provide proof of identity and represent that use of the information will be limited to state-approved purposes, such as by law enforcement, for market research or safety and theft analysis.

Without a federal solution to data privacy, states are left to write legislation that balances consumers’ rights to protect how their personal information is used with business and government’s ability to use the data they collect for research and profit.

Brown’s Senate Bill 5 is a people-first approach to data privacy that gives consumers a legal framework to protect their personal information. The Indiana General Assembly in the coming session should afford the same consumer protections when the government is collecting and monetizing drivers’ personal information.

Our state government should be protecting Hoosiers’ personal information, not exploiting it.