Bill Text: MN SF1770 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: Data practices act privatization application clarification to parties contracting with a government entity; bulk vehicle records fees authorization; transfer standards of certain drivers license and motor vehicle registration data modification

Spectrum: Bipartisan Bill

Status: (Passed) 2014-05-28 - Secretary of State, Filed [SF1770 Detail]

Download: Minnesota-2013-SF1770-Engrossed.html

1.1A bill for an act
1.2relating to data practices; clarifying application of government data practices
1.3act to parties contracting with a government entity; establishing a data security
1.4account; authorizing fees for bulk vehicle records requests; requiring the
1.5legislative commission on data practices to study the use of motor vehicle
1.6and driver's license records; requiring a study of certain health care issues;
1.7amending Minnesota Statutes 2012, sections 3.9741, by adding a subdivision;
1.813.05, subdivision 11; 168.327, subdivision 1, by adding subdivisions; 168.346,
1.9subdivision 1; 171.12, subdivision 7; proposing coding for new law in Minnesota
1.10Statutes, chapter 13.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12    Section 1. Minnesota Statutes 2012, section 3.9741, is amended by adding a
1.13subdivision to read:
1.14    Subd. 5. State data security; account, appropriation. (a) The data security
1.15account is created in the special revenue fund. Receipts credited to the account are
1.16appropriated to the legislative auditor for the purpose of oversight relating to security of
1.17data stored and transmitted by state systems.
1.18(b) Subject to available funds appropriated under paragraph (a), the legislative
1.19auditor shall:
1.20(1) review and audit the audit reports of subscribers and requesters submitted under
1.21section 168.327, subdivision 6, including producing findings and opinions;
1.22(2) in collaboration with the commissioner and affected subscribers and requesters,
1.23recommend corrective action plans to remediate any deficiencies identified under clause
1.24(1); and
1.25(3) review and audit driver records subscription services and bulk data practices
1.26of the Department of Public Safety, including identifying any deficiencies and making
1.27recommendations to the commissioner.
2.1(c) The legislative auditor shall submit any reports, findings, and recommendations
2.2under this subdivision to the legislative commission on data practices.

2.3    Sec. 2. Minnesota Statutes 2012, section 13.05, subdivision 11, is amended to read:
2.4    Subd. 11. Privatization. (a) If a government entity enters into a contract with a
2.5private person to perform any of its functions, the government entity shall include in the
2.6contract terms that make it clear that all of the data created, collected, received, stored,
2.7used, maintained, or disseminated by the private person in performing those functions
2.8is subject to the requirements of this chapter and that the private person must comply
2.9with those requirements as if it were a government entity. All contracts entered into
2.10by a government entity must include a notice that the requirements of this subdivision
2.11apply to the contract. Failure to include the notice in the contract does not invalidate the
2.12application of this subdivision. The remedies in section 13.08 apply to the private person
2.13under this subdivision.
2.14(b) This subdivision does not create a duty on the part of the private person to
2.15provide access to public data to the public if the public data are available from the
2.16government entity, except as required by the terms of the contract.

2.17    Sec. 3. [13.387] HEALTH CARE CONTRACT DATA.
2.18The provisions of section 13.05, subdivision 11, apply to health plan companies,
2.19managed care organizations, county-based purchasing plans, third-party administrators,
2.20providers, or other vendors, or their parent or subsidiary, contracting with a government
2.21entity for health care related services. This section is effective June 30, 2015.

2.22    Sec. 4. Minnesota Statutes 2012, section 168.327, subdivision 1, is amended to read:
2.23    Subdivision 1. Records and fees. (a) Upon request by any person authorized in
2.24this section, the commissioner shall furnish a certified copy of any driver's license record,
2.25instruction permit record, Minnesota identification card record, vehicle registration record,
2.26vehicle title record, or accident record.
2.27(b) Except as provided in subdivisions 4 and 5, and other than accident records
2.28governed under section 169.09, subdivision 13, the requester shall pay a fee of $10 for each
2.29certified record specified in paragraph (a) or a fee of $9 for each record that is not certified.
2.30(c) Except as provided in subdivisions 4 and 5, in addition to the record fee in
2.31paragraph (b), the fee for a copy of the history of any vehicle title not in electronic format
2.32is $1 for each page of the historical record.
3.1(d) Fees collected under paragraph (b) for driver's license, instruction permit, and
3.2Minnesota identification card records must be paid into the state treasury with 50 cents of
3.3each fee credited to the general fund. The remainder of the fees collected must be credited
3.4to the driver services operating account in the special revenue fund under section 299A.705.
3.5(e) Fees collected under paragraphs (b) and (c) for vehicle registration or title records
3.6must be paid into the state treasury with 50 cents of each fee credited to the general fund.
3.7The remainder of the fees collected must be credited to the vehicle services operating
3.8account in the special revenue fund specified in section 299A.705.
3.9(f) Except as provided in subdivisions 4 and 5, the commissioner shall permit a
3.10person to inquire into a record by the person's own electronic means for a fee of $4.50 for
3.11each inquiry, except that no fee may be charged when the requester is the subject of the data.
3.12(1) Of the $4.50 fee, $2.70 must be deposited in the general fund.
3.13(2) For driver's license, instruction permit, or Minnesota identification card records,
3.14the remainder must be deposited in the driver services operating account in the special
3.15revenue fund under section 299A.705.
3.16(3) For vehicle title or registration records, the remainder must be deposited in the
3.17vehicle services operating account in the special revenue fund under section 299A.705.
3.18(g) Fees and the deposit of the fees for accident records and reports are governed by
3.19section 169.09, subdivision 13.

3.20    Sec. 5. Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
3.21to read:
3.22    Subd. 4. Driver records subscription service. (a) The commissioner may
3.23implement a driver records subscription service to provide information concerning access
3.24to driver license, instruction permit, and identification card records, including regular
3.25notice of records that have changed, to subscribers who:
3.26(1) pay applicable fees; and
3.27(2) are approved by the commissioner in accordance with sections 168.346 and
3.28171.12, and United States Code, title 18, section 2721.
3.29(b) If a driver records subscription service is implemented, the commissioner shall
3.30establish a fee that does not exceed $3,680 per month for a subscription to the service.
3.31Fees collected under this paragraph must be credited to the driver services operating
3.32account in the special revenue fund under section 299A.705, and are appropriated to the
3.33commissioner for the purposes in paragraph (a) and this paragraph.
3.34(c) If a driver records subscription service is implemented, the commissioner shall
3.35establish a fee that does not exceed $0.01 per driver record requested. Of the fees
4.1collected under this paragraph, 40 percent must be credited to the driver services operating
4.2account in the special revenue fund under section 299A.705 and is appropriated to the
4.3commissioner for the purposes in this subdivision, and 60 percent must be credited to the
4.4data security account in the special revenue fund under section 3.9741, subdivision 5.

4.5    Sec. 6. Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
4.6to read:
4.7    Subd. 5. Bulk vehicle records requests. (a) "Bulk vehicle records" in this section is
4.8a total of 1,000 or more vehicle title records and vehicle registration records.
4.9(b) The commissioner shall establish a fee that does not exceed $0.01 per record for
4.10a request of bulk vehicle records.
4.11(c) Of the fees collected, 40 percent must be credited to the vehicle services operating
4.12account in the special revenue fund under section 299A.705 and is appropriated to the
4.13commissioner for the purposes in this subdivision, and 60 percent must be credited to the
4.14data security account in the special revenue fund under section 3.9741, subdivision 5.

4.15    Sec. 7. Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
4.16to read:
4.17    Subd. 6. Review and audit of purchases of bulk driver and motor vehicle
4.18records. Each subscriber and each requester of bulk vehicle records shall engage an
4.19independent professional organization to audit its uses of bulk data and its information
4.20technology security procedures, including the methods and practices employed in the
4.21processing and use of driver and vehicle services data. Within 30 days of the date of the
4.22audit report, each subscriber and requester must submit each report to the legislative
4.23auditor and the commissioner.

4.24    Sec. 8. Minnesota Statutes 2012, section 168.346, subdivision 1, is amended to read:
4.25    Subdivision 1. Vehicle registration data; federal compliance. (a) Data on an
4.26individual provided to register a vehicle shall be treated as provided by United States
4.27Code, title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as
4.28required or permitted by that section. The commissioner shall disclose the data in bulk
4.29form to an authorized recipient upon request for any of the permissible uses described in
4.30United States Code, title 18, section 2721.
4.31(b) The registered owner of a vehicle who is an individual may consent in writing to
4.32the commissioner to disclose the individual's personal information exempted by United
4.33States Code, title 18, section 2721, to any person who makes a written request for the
5.1personal information. If the registered owner is an individual and so authorizes disclosure,
5.2the commissioner shall implement the request.
5.3(c) If authorized by the registered owner as indicated in paragraph (b), the registered
5.4owner's personal information may be used, rented, or sold solely for bulk distribution by
5.5organizations for business purposes including surveys, marketing, or solicitation.

5.6    Sec. 9. Minnesota Statutes 2012, section 171.12, subdivision 7, is amended to read:
5.7    Subd. 7. Privacy of data. (a) Data on individuals provided to obtain a driver's
5.8license or Minnesota identification card shall be treated as provided by United States Code,
5.9title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as required or
5.10permitted by that section. The commissioner shall disclose the data in bulk form upon
5.11request to an authorized recipient under United States Code, title 18, section 2721.
5.12(b) An applicant for a driver's license or a Minnesota identification card may consent,
5.13in writing, to the commissioner to disclose the applicant's personal information exempted
5.14by United States Code, title 18, section 2721, to any person who makes a request for the
5.15personal information. If the applicant so authorizes disclosures, the commissioner shall
5.16implement the request and the information may be used.
5.17(c) If authorized by an applicant for a driver's license or a Minnesota identification
5.18card, as indicated in paragraph (b), the applicant's personal information may be used,
5.19rented, or sold solely for bulk distribution by organizations for business purposes,
5.20including surveys, marketing, or solicitation.
5.21(d) An applicant for a driver's license, instruction permit, or Minnesota identification
5.22card may request that the applicant's residence address be classified as "private data on
5.23individuals," as defined in section 13.02, subdivision 12. The commissioner shall grant
5.24the classification on receipt of a signed statement by the individual that the classification
5.25is required for the safety of the applicant or the applicant's family, if the statement also
5.26provides a valid, existing address where the applicant consents to receive service of
5.27process. The commissioner shall use the service for process mailing address in place of the
5.28residence address in all documents and notices pertaining to the driver's license, instruction
5.29permit, or Minnesota identification card. The residence address and any information
5.30provided in the classification request, other than the mailing address, are private data on
5.31individuals and may be provided to requesting law enforcement agencies, probation and
5.32parole agencies, and public authorities, as defined in section 518A.26, subdivision 18.

5.33    Sec. 10. REVIEW OF ISSUES RELATED TO THE USE OF STATE MOTOR
5.34VEHICLE AND DRIVER'S LICENSE RECORDS.
6.1(a) The legislative commission on data practices shall study issues relating to
6.2disclosure of motor vehicle registration and driver's license data in bulk form. The study
6.3and analysis must include:
6.4(1) any violations of the federal law or breaches of security by purchasers of bulk
6.5data since passage of this act;
6.6(2) program audit requirements and practices, and the results of reviews and audits
6.7of bulk purchasers of data presented by the legislative auditor;
6.8(3) revenues received from the sale of bulk data and the costs associated with
6.9providing the data, including options for fees and charges to provide access to the data;
6.10(4) any options for continued bulk transfer of data, including quality and timing, and
6.11alternatives to bulk transfer that will facilitate the disclosure of data for purposes that are
6.12required under federal law while ensuring data privacy and security; and
6.13(5) the operation of the subscription service established under Minnesota Statutes,
6.14section 168.327, subdivision 4.
6.15As used in this section "the federal law" means United States Code, title 18, sections
6.162721 to 2725.
6.17(b) In conducting the review required by this section, the commission shall invite the
6.18input and participation of a cross-section of private and governmental entities that obtain
6.19and use motor vehicle registration and driver's license data pursuant to Minnesota Statutes,
6.20sections 168.346 and 171.12, and consumer advocates and data privacy experts.

6.21    Sec. 11. HEALTH CARE STUDY.
6.22The commissioner of human services, in consultation with interested stakeholders
6.23and other state agencies, shall study public policy issues related to application of Minnesota
6.24Statutes, section 13.05, subdivision 11, to the entities listed in section 3 and the economic
6.25impact on the health care market. The commissioner shall submit a report to the chairs
6.26and ranking minority members of the committees of the legislature with jurisdiction over
6.27health and human services policy and finance and data practices by December 21, 2014.

6.28    Sec. 12. EFFECTIVE DATE.
6.29Sections 1 and 4 to 10 are effective January 1, 2015. Sections 2 and 11 are effective
6.30the day following final enactment.
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