Citing the need to safeguard the personal information of Minnesotans, Governor Pawlenty today announced a series of proposals that will protect personal privacy and improve the way state government handles personal data. 

"Government must do more to protect the public from identity thieves," Governor Pawlenty said.  "New technology and deceptive tactics have created a whole new set of risks that must be addressed."

In 2005, more than 3,000 Minnesotans became the victims of identity theft according to the Federal Trade Commission.

Governor Pawlenty's proposal protects the public's information by:

1)      Making driver's license data private;

2)      Protecting personal phone records, including cell phone records;

3)      Limiting the use of social security numbers; and

4)      Reforming Minnesota's Data Practices Act.

Making Driver's License Data Private
The Governor proposed legislation to make personal driver's license and motor vehicle information private. A Minnesota driver's license is the state's primary identification document.  There are about 3.5 million license holders in Minnesota.

In addition, the Governor is directing the Department of Public Safety to immediately request a temporary classification from the Department of Administration, which includes the Office of Public Information Policy Analysis Division, to make driver and vehicle personal data private.  The Department of Public Safety has been working with the Attorney General's Office to address legal issues which will need to be resolved in order to make this data private.

"Minnesotans should not have to worry about government sharing their personal data without their consent," Governor Pawlenty said. 

The Governor's proposal will only allow Driver and Vehicle Services (DVS) data to be used under narrow and necessary circumstances, such as public health and safety uses. 

The proposal includes several other protections, and would:

• Prohibit the marketing or resale of DVS data;
• Provide penalties for violations; and
• Require random audits on the sale of DVS data.
   

Protecting Personal Phone Records
The Governor's proposal will protect Minnesotans' phone records by making it illegal for unauthorized individuals to obtain, release or receive another person's telecommunication records.  Convicted violators would face criminal charges and individual civil actions.

"The sale of phone records is a growth industry.  Unscrupulous companies obtain the records and then sell them to anyone for as little as $100," Governor Pawlenty said.  "Currently, there are no safeguards in this system to protect our privacy or security against these data brokers."

Unlike financial data, there are few laws or regulations protecting consumer telecommunications records. As a result, an industry formed around the sale of phone records is rapidly expanding.  These companies often obtain their records through fraud, including impersonating customers, hacking into customer records online, or through the unauthorized release of customer records by a phone company employee. There are more than 100 commercial web sites that offer to sell telecommunications records today.  Earlier this month, the Federal Trade Commission conducted a sweep of 40 such web sites known to have been selling personal telecommunications records.

The Federal Trade Commission also reports that phone or utilities fraud is the third most frequent form of identity theft in Minnesota, constituting 16 percent of all identity theft complaints.

The Governor's proposal would:

• Make it a crime to obtain or receive customer telecommunications records without authorization;
• Make it a crime to sell or disclose telecommunication records without customer authorization;
• Prohibit any telecommunication carriers from releasing personally identifiable information regarding customer telecommunications use except as permitted by federal law;
• Declare violations as constituting deceptive trade practices under current law;
• Permit an injured person to seek damages; and
• Establish security standards and reporting requirements for telecommunications providers.
   

A conviction for these crimes could result in criminal penalties of up to one year in prison and civil penalties of up to $5,000.  Penalties will also include enhancements for multiple victims or violations.  Limited exceptions will be provided.

Limiting Use of Social Security Numbers
In an effort to further protect the public's interests, the Governor's proposal limits the business use of social security numbers as an identifier.

"People don't know the power of their own social security numbers.  The reality is that in the wrong hands, this information can cause an adverse economic impact that is extensive and lasting," Governor Pawlenty said. "The theft of these numbers can cause irreparable damage to an individual's credit history.  This crime is insidious, invasive and indiscriminate."  

The legislation would:

• Prohibit businesses from assigning or using a number that is an individual's social security number, with limited exceptions;
• Require business to restrict the access of an individuals' social security number, limiting access to employees that are authorized and required to have the number to perform their job duties;
• Prohibit the sale or disclosure of social security numbers; and
• Declare violations as constituting deceptive trade practices.
   

Limited exemptions would be included for situations where the number is required by state or federal law, such as submitting tax information or needed business purposes such as accessing a credit report.  In such cases, although consumers may still have to provide their numbers to businesses to open accounts in accordance with federal requirements, access to the numbers would be restricted.

A conviction for these crimes could result in criminal penalties of up to one year in prison and civil penalties of up to $5,000.  Penalties will also include enhancements for multiple victims or violations.  Limited exceptions will be provided.

Reforming Minnesota's Data Practices Act
The Governor's package launches a dramatic reform plan aimed at comprehensive protection of all personal data held by governmental entities. 

"The Minnesota Data Practices Act was created 31 years ago before the internet," Governor Pawlenty said. "With a push of a button, your personal information can be made available to literally millions of people and that should not be the case. The system is outdated and must be significantly revised so that our citizens' personal information can be adequately protected."

The Governor orders the Department of Administration to conduct a comprehensive review of the complex Minnesota Data Practices Act and introduce a bill to accomplish this goal.

"Minnesota law provides that all information held by the government is public unless a specific law designates it as private.  That's backwards.  We need to start with the obligation of government to protect all citizens, and that all personal information that government has about individuals is private.  It is time for a change," Governor Pawlenty said.  "It is the role of government to protect the individual and to facilitate uses of information for the common good.  It is not the role of government to facilitate mass mailings or support purely private interests".