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Indiana driver data "opt out" bill fails to move forward for 3rd year in a row

Industries who buy the data testified in opposition
Indiana driver data "opt out" bill fails to move forward for 3rd year in a row
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INDIANAPOLIS— A bill aimed at protecting your personal information failed to move forward this legislative session.

The Indiana Bureau of Motor Vehicles sells driver data to companies and individuals.

Legislation filed by Rep. Greg Porter, D-Indianapolis, would have allowed Indiana drivers to opt out of data sales.

However, House Bill 1027 died this legislative session after facing stiff opposition from industries that buy the data.

As WRTV Investigates reported, things like your name, current address, past addresses, date of birth, make and model of your car, plate number, VIN, purchase date, driver record, license type and other types of information are for sale.

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“I think it’s important we look at consumers and ask what they want,” said Porter. “Their data should not be sold for economic prosperity."

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Rep. Greg Porter, D-Indianapolis

The State of Indiana brings in $26 million a year from driver data sales.

The House Roads and Transportation Committee heard House Bill 1027 on February 2.

Industries who buy the data testified in opposition—including towing companies.

“We are fearful the bill will have unintended consequences,” testified Hamilton Smith, who represented the Indiana Tower and Wrecker Association. “We think it will result in Hoosiers having trouble in locating and retrieving their vehicles. Towing companies purchase vehicle identification information from the BMV for the purpose of providing notice to the owner when their vehicle is towed."

RELATED | Tow company concerned about impact of driver data bill

Banks, credit unions, and credit bureaus are also opposed to the legislation.

"We too rise with concerns about this legislation,” said Trevor Vance, representing the Consumer Data Industry Association. “We are one of the ones who pay to access this. It’s to verify the identity of the people in front of the banks, in front of the lenders, the towers, so there’s a credit report."

The Insurance Institute of Indiana also testified in opposition of House Bill 1027.

“We are limited in what we can use this personal data for,” said Jon Zarich, representing the Insurance Institute of Indiana. “We are looking at claims and underwriting. We can’t acquire this data to solicit the sale of policies.”

The chairman of the committee, Rep. Jim Pressel, did not call for a vote, so the bill died.

WRTV Investigates sent several emails to Pressel’s office seeking comment, and we are still waiting to hear back.

On February 2, Pressel said he hoped the topic will get a summer study committee so they can find “common ground” on the issue.

“I think it’s important,” said Pressel. “I don’t think anyone wants to have their data exposed, sold or made available on the internet."

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BMV Branch

Pressel is not alone in his concerns.

Drivers filed a lawsuit against LexisNexis, a leading buyer of driver data in Indiana, alleging the company illegally sold driver information to law firms for marketing.

LexisNexis settled the lawsuit for $5 million.

“In 2021, we reached a nationwide class settlement agreement with the Gastons involving a dispute over whether the Driver’s Privacy Protection Act (DPPA) applies to crash reports,” read a statement from LexisNexis. “Although we disagreed with their interpretation of the law, we chose to settle the case.”

WRTV Investigates spoke with BMV’s General Counsel on-camera.

  • WRTV: What is the BMV doing to make sure that this information is kept safe?
  • BMV: It’s kept safe because the data is only going to companies or entities that have a legal reason to receive the data. They are subject to audits by the BMV. Our goal has been to audit everyone of these companies within a 5-year-period. We’re actually doing better than that. We’re auditing them every 3 years.
  • WRTV: What do you say to people about data breaches? Is my information safe?
  • BMV: We believe it is.
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BMV General Counsel Matt Kestian

Since 2017, the BMV has suspended more than 200 companies for violating the terms of their state contracts.

But the BMV won’t provide the names of companies that have been suspended.

  • WRTV: Why not give us copies of those audits?
  • BMV: Indiana law makes audit information confidential.

WRTV Investigates learned the top data buyers in Indiana get large amounts of driver information, also known as bulk data.

According to the BMV, 9 entities have paid more than $50,000 over the past four years for bulk data including Auto Data Direct, City of Chicago Department of Finance, Datalink, Explore Information, Hire Right, Insurance Info, LexisNexis, Safety Holdings, and TML.

WRTV Investigates has attempted to contact every entity on this list, and we are still waiting to hear back from everyone with the exception of LexisNexis.

In a statement to WRTV, LexisNexis also emphasized the records they purchase can’t be used for marketing or solicitation purposes.

“LexisNexis Risk Solutions purchases motor vehicle records for insurance purposes when requested from our customers on a transactional basis, we do not obtain the records in bulk,” read a statement from LexisNexis.

“The records are subject to the requirements of the Driver’s Privacy Protection Act and can only be used for a permissible purpose. They cannot be used for marketing or solicitation purposes.”

The website for Explore Information says it provides information to insurance companies, government agencies and commercial fleets and that they are “are monitoring driver behavior, identifying location-based risk."

Matt Kestian, General Counsel at the Indiana BMV, emphasizes that companies have to have a legal reason to get bulk data, for example, for a vehicle recall.

“All of the 2005 Honda Accords that are out there, they would be requesting bulk data for everyone who is a registered owner of that car because there’s a recall on it or something like that,” said Kestian. “The most reliable way to find out who is currently the registered owner of a vehicle is the BMV’s records.”

The state’s contract with the City of Chicago says they can only use the data to find a vehicle’s owner for a parking citation or a toll fee.

In a statement to WRTV, the company also emphasized the records they purchase can’t be used for marketing or solicitation purposes.

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A BMV Branch in Central Indiana

This is the 3rd year in a row Porter has filed this legislation.

WRTV Investigates asked if he plans to try again during the 2027 session.

“Since we have 10 months until the next legislative session,  Rep. Porter has not solidified his plan,” said Press Secretary Lizzie Wood in an email to WRTV. “He hopes to continue to perfect his bill based on the testimony from Hoosiers and stakeholders.”