04/10/2000 01:28 PM House JUD

HB 324-PERSONAL INFO IN MOTOR VEH. RECORDS                                                                                    
                                                                                                                                
CHAIRMAN KOTT  announced that  the next  order of business  before                                                              
the  committee would  be HOUSE  BILL  NO. 324,  "An Act  requiring                                                              
written  consent  by  the  person   who  is  the  subject  of  the                                                              
information  before releasing  personal  information contained  in                                                              
motor  vehicle  records,  to  comply  with  18  U.S.C.  2721;  and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
Number 1840                                                                                                                     
                                                                                                                                
MARY  MARSHBURN,  Director,  Division  of  Motor  Vehicles  (DMV),                                                              
Department  of Administration, testified  via teleconference  from                                                              
Anchorage.  She informed the committee  that the purpose of HB 324                                                              
is  to bring  state  laws into  compliance  with  the new  federal                                                              
legislation, which passed last fall  regarding the confidentiality                                                              
of vehicle  records.   The federal legislation  nor HB  324 affect                                                              
driver records, which is confidential  information under state law                                                              
and  continues  to be  so.    Current state  law  mirrors  federal                                                              
legislation and  allows the release of vehicle  record information                                                              
for about 11 permitted uses.                                                                                                    
                                                                                                                                
MS. MARSHBURN said most of those  uses were related to government,                                                              
law enforcement  or employment.   However,  one permitted  use did                                                              
allow vehicle record information  to be released for marketing and                                                              
solicitation  purposes;  that is  the  use  at which  the  federal                                                              
legislation was  directed, while other permitted  uses relating to                                                              
law enforcement  and government remain.   Ms. Marshburn  specified                                                              
that HB 324 and  the new federal legislation prohibit  the release                                                              
of   vehicle  record   information,   personal  information,   for                                                              
marketing and solicitation  purposes unless the  vehicle owner has                                                              
given consent to release the records.   She informed the committee                                                              
that federal legislation takes effect  for  "us" June 1, 2000, and                                                              
there is a $5,000 per day fine for noncompliance.                                                                               
                                                                                                                                
REPRESENTATIVE CROFT asked if, in  effect, the federal legislation                                                              
and now HB  324 change [the state]  to an "opt in" rather  than an                                                              
"opt out."                                                                                                                      
                                                                                                                                
MS. MARSHBURN replied yes.                                                                                                      
                                                                                                                                
MS.   MARSHBURN   reiterated,  in   response   to   Representative                                                              
Murkowski, that  if the state is  found in noncompliance  with the                                                              
federal legislation,  the state  will be subject  to a  $5,000 per                                                              
day fine.   She  added that this  would also be  the case  for any                                                              
individual  who   releases  information  prohibited   by  the  new                                                              
[federal]  legislation.    In  response   to  Chairman  Kott,  Ms.                                                              
Marshburn  specified  that the  fine  is  levied by  the  attorney                                                              
general's office  and thus  she assumed that  the fine is  paid to                                                              
the U.S. Department of Justice.                                                                                                 
                                                                                                                                
Number 1987                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out  that there is a $200,000 loss                                                              
of  revenues.   He asked  if DMV  has  been selling  the lists  to                                                              
certain people before.                                                                                                          
                                                                                                                                
MS.  MARSHBURN  answered  that  DMV  does  sell  restricted  motor                                                              
vehicle information,  which is allowed  under the old law  and the                                                              
division does receive revenue for  it.  She informed the committee                                                              
that there are two  basic sources of revenue.  One  source is from                                                              
the individual who requests a copy  of a vehicle record.  Perhaps,                                                              
the  individual  want  to  purchase   the  vehicle  and  wants  to                                                              
determine if  there is a  lien holder on  the vehicle.   She noted                                                              
that insurance  companies  also purchase  vehicle records.   Under                                                              
the  former  federal  law,  that  information  could  be  sold  to                                                              
business  firms [for the]  purpose of  reselling the  information.                                                              
Under the new federal legislation,  those firms will still be able                                                              
to purchase  the list for resale  for the permitted uses,  not for                                                              
marketing and solicitation.                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked if  this would effect  the commerce                                                              
of the state and the ability of people  to find out about liens on                                                              
a vehicle.                                                                                                                      
                                                                                                                                
MS. MARSHBURN  responded that individually  it may have  a minimal                                                              
effect.  However, practically it would not have an effect.                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG  inquired as  to how [the  division] would                                                              
construct the "opt-in" form.                                                                                                    
                                                                                                                                
MS. MARSHBURN  explained  that at  the time a  person purchases  a                                                              
vehicle  and  enters DMV  to  register  the  vehicle, one  of  the                                                              
questions asked  is whether the individual wants  that information                                                              
disclosed  for marketing  and solicitation  purposes.   Basically,                                                              
the same  would continue with a  slight variation in  the wording.                                                              
She  doubted  that  many  people   would  agree  to  [allow  their                                                              
information to be] disclosed.                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG commented  that this may eliminate some of                                                              
the catalogs that he receives.                                                                                                  
                                                                                                                                
MS. MARSHBURN  stated that the  intent of the federal  legislation                                                              
was the marketing and the solicitation effort.                                                                                  
                                                                                                                                
CHAIRMAN  KOTT asked  if anyone  else  wished to  testify.   There                                                              
being no one, public testimony was closed.                                                                                      
                                                                                                                                
Number 2183                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT moved to report  HB 324 out of committee with                                                              
individual  recommendations  and  the  accompanying  fiscal  note.                                                              
There  being  no objection,  it  was so  ordered  and  HB 324  was                                                              
reported from the House Judiciary Standing Committee.