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SF 1770

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 10/31/2014 10:27am

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A bill for an act
relating to data practices; clarifying application of government data practices
act to parties contracting with a government entity; establishing a data security
account; authorizing fees for bulk vehicle records requests; requiring the
legislative commission on data practices to study the use of motor vehicle
and driver's license records; requiring a study of certain health care issues;
amending Minnesota Statutes 2012, sections 3.9741, by adding a subdivision;
13.05, subdivision 11; 168.327, subdivision 1, by adding subdivisions; 168.346,
subdivision 1; 171.12, subdivision 7; proposing coding for new law in Minnesota
Statutes, chapter 13.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 3.9741, is amended by adding a
subdivision to read:


Subd. 5.

State data security; account, appropriation.

(a) The data security
account is created in the special revenue fund. Receipts credited to the account are
appropriated to the legislative auditor for the purpose of oversight relating to security of
data stored and transmitted by state systems.

(b) Subject to available funds appropriated under paragraph (a), the legislative
auditor shall:

(1) review and audit the audit reports of subscribers and requesters submitted under
section 168.327, subdivision 6, including producing findings and opinions;

(2) in collaboration with the commissioner and affected subscribers and requesters,
recommend corrective action plans to remediate any deficiencies identified under clause
(1); and

(3) review and audit driver records subscription services and bulk data practices
of the Department of Public Safety, including identifying any deficiencies and making
recommendations to the commissioner.

(c) The legislative auditor shall submit any reports, findings, and recommendations
under this subdivision to the legislative commission on data practices.

Sec. 2.

Minnesota Statutes 2012, section 13.05, subdivision 11, is amended to read:


Subd. 11.

Privatization.

(a) If a government entity enters into a contract with a
private person to perform any of its functions, the government entity shall include in the
contract terms that make it clear that
all of the data created, collected, received, stored,
used, maintained, or disseminated by the private person in performing those functions
is subject to the requirements of this chapter and that the private person must comply
with those requirements as if it were a government entity. All contracts entered into
by a government entity must include a notice that the requirements of this subdivision
apply to the contract. Failure to include the notice in the contract does not invalidate the
application of this subdivision.
The remedies in section 13.08 apply to the private person
under this subdivision.

(b) This subdivision does not create a duty on the part of the private person to
provide access to public data to the public if the public data are available from the
government entity, except as required by the terms of the contract.

Sec. 3.

[13.387] HEALTH CARE CONTRACT DATA.

The provisions of section 13.05, subdivision 11, apply to health plan companies,
managed care organizations, county-based purchasing plans, third-party administrators,
providers, or other vendors, or their parent or subsidiary, contracting with a government
entity for health care related services. This section is effective June 30, 2015.

Sec. 4.

Minnesota Statutes 2012, section 168.327, subdivision 1, is amended to read:


Subdivision 1.

Records and fees.

(a) Upon request by any person authorized in
this section, the commissioner shall furnish a certified copy of any driver's license record,
instruction permit record, Minnesota identification card record, vehicle registration record,
vehicle title record, or accident record.

(b) Except as provided in subdivisions 4 and 5, and other than accident records
governed under section 169.09, subdivision 13, the requester shall pay a fee of $10 for each
certified record specified in paragraph (a) or a fee of $9 for each record that is not certified.

(c) Except as provided in subdivisions 4 and 5, in addition to the record fee in
paragraph (b), the fee for a copy of the history of any vehicle title not in electronic format
is $1 for each page of the historical record.

(d) Fees collected under paragraph (b) for driver's license, instruction permit, and
Minnesota identification card records must be paid into the state treasury with 50 cents of
each fee credited to the general fund. The remainder of the fees collected must be credited
to the driver services operating account in the special revenue fund under section 299A.705.

(e) Fees collected under paragraphs (b) and (c) for vehicle registration or title records
must be paid into the state treasury with 50 cents of each fee credited to the general fund.
The remainder of the fees collected must be credited to the vehicle services operating
account in the special revenue fund specified in section 299A.705.

(f) Except as provided in subdivisions 4 and 5, the commissioner shall permit a
person to inquire into a record by the person's own electronic means for a fee of $4.50 for
each inquiry, except that no fee may be charged when the requester is the subject of the data.

(1) Of the $4.50 fee, $2.70 must be deposited in the general fund.

(2) For driver's license, instruction permit, or Minnesota identification card records,
the remainder must be deposited in the driver services operating account in the special
revenue fund under section 299A.705.

(3) For vehicle title or registration records, the remainder must be deposited in the
vehicle services operating account in the special revenue fund under section 299A.705.

(g) Fees and the deposit of the fees for accident records and reports are governed by
section 169.09, subdivision 13.

Sec. 5.

Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
to read:


Subd. 4.

Driver records subscription service.

(a) The commissioner may
implement a driver records subscription service to provide information concerning access
to driver license, instruction permit, and identification card records, including regular
notice of records that have changed, to subscribers who:

(1) pay applicable fees; and

(2) are approved by the commissioner in accordance with sections 168.346 and
171.12, and United States Code, title 18, section 2721.

(b) If a driver records subscription service is implemented, the commissioner shall
establish a fee that does not exceed $3,680 per month for a subscription to the service.
Fees collected under this paragraph must be credited to the driver services operating
account in the special revenue fund under section 299A.705, and are appropriated to the
commissioner for the purposes in paragraph (a) and this paragraph.

(c) If a driver records subscription service is implemented, the commissioner shall
establish a fee that does not exceed $0.01 per driver record requested. Of the fees
collected under this paragraph, 40 percent must be credited to the driver services operating
account in the special revenue fund under section 299A.705 and is appropriated to the
commissioner for the purposes in this subdivision, and 60 percent must be credited to the
data security account in the special revenue fund under section 3.9741, subdivision 5.

Sec. 6.

Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
to read:


Subd. 5.

Bulk vehicle records requests.

(a) "Bulk vehicle records" in this section is
a total of 1,000 or more vehicle title records and vehicle registration records.

(b) The commissioner shall establish a fee that does not exceed $0.01 per record for
a request of bulk vehicle records.

(c) Of the fees collected, 40 percent must be credited to the vehicle services operating
account in the special revenue fund under section 299A.705 and is appropriated to the
commissioner for the purposes in this subdivision, and 60 percent must be credited to the
data security account in the special revenue fund under section 3.9741, subdivision 5.

Sec. 7.

Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision
to read:


Subd. 6.

Review and audit of purchases of bulk driver and motor vehicle
records.

Each subscriber and each requester of bulk vehicle records shall engage an
independent professional organization to audit its uses of bulk data and its information
technology security procedures, including the methods and practices employed in the
processing and use of driver and vehicle services data. Within 30 days of the date of the
audit report, each subscriber and requester must submit each report to the legislative
auditor and the commissioner.

Sec. 8.

Minnesota Statutes 2012, section 168.346, subdivision 1, is amended to read:


Subdivision 1.

Vehicle registration data; federal compliance.

(a) Data on an
individual provided to register a vehicle shall be treated as provided by United States
Code, title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as
required or permitted by that section. The commissioner shall disclose the data in bulk
form to an authorized recipient upon request for any of the permissible uses described in
United States Code, title 18, section 2721.

(b) The registered owner of a vehicle who is an individual may consent in writing to
the commissioner to disclose the individual's personal information exempted by United
States Code, title 18, section 2721, to any person who makes a written request for the
personal information. If the registered owner is an individual and so authorizes disclosure,
the commissioner shall implement the request.

(c) If authorized by the registered owner as indicated in paragraph (b), the registered
owner's personal information may be used, rented, or sold solely for bulk distribution by
organizations for business purposes including surveys, marketing, or solicitation.

Sec. 9.

Minnesota Statutes 2012, section 171.12, subdivision 7, is amended to read:


Subd. 7.

Privacy of data.

(a) Data on individuals provided to obtain a driver's
license or Minnesota identification card shall be treated as provided by United States Code,
title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as required or
permitted by that section. The commissioner shall disclose the data in bulk form upon
request to an authorized recipient under United States Code, title 18, section 2721.

(b) An applicant for a driver's license or a Minnesota identification card may consent,
in writing, to the commissioner to disclose the applicant's personal information exempted
by United States Code, title 18, section 2721, to any person who makes a request for the
personal information. If the applicant so authorizes disclosures, the commissioner shall
implement the request and the information may be used.

(c) If authorized by an applicant for a driver's license or a Minnesota identification
card, as indicated in paragraph (b), the applicant's personal information may be used,
rented, or sold solely for bulk distribution by organizations for business purposes,
including surveys, marketing, or solicitation.

(d) An applicant for a driver's license, instruction permit, or Minnesota identification
card may request that the applicant's residence address be classified as "private data on
individuals," as defined in section 13.02, subdivision 12. The commissioner shall grant
the classification on receipt of a signed statement by the individual that the classification
is required for the safety of the applicant or the applicant's family, if the statement also
provides a valid, existing address where the applicant consents to receive service of
process. The commissioner shall use the service for process mailing address in place of the
residence address in all documents and notices pertaining to the driver's license, instruction
permit, or Minnesota identification card. The residence address and any information
provided in the classification request, other than the mailing address, are private data on
individuals and may be provided to requesting law enforcement agencies, probation and
parole agencies, and public authorities, as defined in section 518A.26, subdivision 18.

Sec. 10. REVIEW OF ISSUES RELATED TO THE USE OF STATE MOTOR
VEHICLE AND DRIVER'S LICENSE RECORDS.

(a) The legislative commission on data practices shall study issues relating to
disclosure of motor vehicle registration and driver's license data in bulk form. The study
and analysis must include:

(1) any violations of the federal law or breaches of security by purchasers of bulk
data since passage of this act;

(2) program audit requirements and practices, and the results of reviews and audits
of bulk purchasers of data presented by the legislative auditor;

(3) revenues received from the sale of bulk data and the costs associated with
providing the data, including options for fees and charges to provide access to the data;

(4) any options for continued bulk transfer of data, including quality and timing, and
alternatives to bulk transfer that will facilitate the disclosure of data for purposes that are
required under federal law while ensuring data privacy and security; and

(5) the operation of the subscription service established under Minnesota Statutes,
section 168.327, subdivision 4.

As used in this section "the federal law" means United States Code, title 18, sections
2721 to 2725.

(b) In conducting the review required by this section, the commission shall invite the
input and participation of a cross-section of private and governmental entities that obtain
and use motor vehicle registration and driver's license data pursuant to Minnesota Statutes,
sections 168.346 and 171.12, and consumer advocates and data privacy experts.

Sec. 11. HEALTH CARE STUDY.

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

Sec. 12. EFFECTIVE DATE.

Sections 1 and 4 to 10 are effective January 1, 2015. Sections 2 and 11 are effective
the day following final enactment.

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