Lawmakers hear testimony on BMV data‑sale limits; committee pauses on HB 1027 amid industry concerns

The House Roads and Transportation Committee held an extended hearing on House Bill 1027, a proposal by Representative Porter to limit sale or disclosure of Bureau of Motor Vehicles personal information for people younger than 21 and those older than 65.

Representative Porter framed the bill as a consumer‑privacy protection to prevent personal data from being sold; he read a constituent letter describing an incident in which someone else’s license plate arrived at a homeowner’s address and cited national interest in curbing unwanted disclosure. Porter said he was not seeking to profit from data but to protect Hoosiers’ personal information.

Matt Kestian, general counsel for the BMV, testified in opposition. Kestian said federal and state Driver’s Privacy Protection Acts define permissible uses and that much of the data at issue is already publicly accessible under the Indiana Access to Public Records Act (APRA). He warned the bill as written would have "unintended consequences," such as preventing young people from obtaining insurance, interfering with motor‑vehicle recalls, and impeding towing companies’ ability to notify owners. "If insurance companies weren't able to get the driver record of their potential clients, why would they sell them insurance?" Kestian said.

Witnesses representing towing companies, the insurance industry, banks and consumer‑data firms echoed concerns about implementation. Hamilton Smith of the Indiana Towing and Wrecker Association said the bill could make it very difficult to locate and notify owners of towed vehicles, since towing firms rely on owner information to meet statutory notice requirements. John Zarich of the Insurance Institute of Indiana described how insurers use motor‑vehicle records for underwriting and claims and said limiting data access could reduce available underwriting information. Dax Denton of the Indiana Bankers Association and Trevor Vance, representing consumer‑data companies and credit bureaus, described downstream impacts on lenders and identity verification.

Kestian also described existing safeguards: contractual terms, auditing of vendor access, breach notification requirements and criminal penalties for misuse; he said the BMV has terminated access for about 200 companies since 2017 for violations and that access is managed to permissible uses. Committee members asked follow‑up questions about whether other states use opt‑out models and about specific constituent incidents; Kestian said Indiana already includes address confidentiality and other mechanisms for limited nondisclosure. Representative Porter closed by reiterating that the issue affects many constituents and said he welcomed further suggestions. The committee did not vote on HB 1027 at this meeting.