MPR: Privacy Striking Out at Legislature

Privacy Striking Out at Legislature
by Michael Khoo
March 2, 2000
Part of MPR's Session 2000 coverage

The Legislature is considering several proposals designed to protect consumer privacy. But as the debate over the proper use of personal data progresses through the Legislature, some lawmakers say they're having second thoughts about taking aggressive action.

The Surveillance Society
Privacy has been called "the civil rights issue of the information age." Americans enjoy unlimited benefits from new technologies in a wired world. But those wires send information in two directions, and the access to our personal data has never been more open for abuse. It's not just the Internet that erodes our privacy. In dozens, possibly hundreds, of every-day activities, you leave a trail of who you are. As technology brings us closer together, the fragments of information about you are becoming much easier to piece together, revealing the most intimate details of your life. Learn more in MPR's Surveillance Society section.

IN THE WEEKS leading up to this year's legislative session, the Republicans and Democrats held dueling privacy news conferences. Each promised swift action to protect consumers from data trafficking and electronic snooping. But one month into the process, high hopes have met sobering reality.

Two weeks ago, Senator Leo Foley was the lead author of a bill to prevent the state government from releasing an individual's drivers' license data without explicit consent. But the Coon Rapids DFLer withdrew his support after colleagues radically altered the bill in committee. As amended, the proposal makes no change in data practices unless the state faces financial penalties for non-compliance with federal law. Foley says he's no longer sure how to balance the privacy expectations of motorists with the legitimate needs of, say, car insurance companies seeking access to driving records.

"The more I got into it, the more discussions I had and trying to answer the committee's questions and trying to answer the questions posed by the industry and their lobbyists was that this was an issue that needed much more study and a lot of work before it ever got into a legislative committee," Foley said.

Attorney General Mike Hatch says there's no reason for confusion. Hatch has become a leading advocate for privacy protection since he filed suit against U.S. Bancorp for their handling of customer financial information. That suit has been settled, but Hatch has action pending against Minnesota Public Radiofor its policy of exchanging membership lists with other organizations. Hatch says legislation bogged down when business lobbyists cried "wolf."

Jerry Schoenfeld, who represents the Independent Community Bankers of Minnesota, says industry concerns are legitimate. He says a Hatch-sponsored bill to restrict financial institutions from sharing customer data would be an unnecessary hardship. Schoenfeld says to stay competitive banks need to offer a wide range of financial and investment services, something he says large banks do by sharing information with affiliates.

In committee, the financial data bill was amended to ease the limits on data sharing. Although intended as a compromise, Hatch says the bill is now too weak, and Schoenfeld still says the Legislature should delay action until federal rules are developed. If Senators are moving cautiously, House Republicans are hardly moving at all.

Earlier this week, House Majority Leader Tim Pawlenty introduced the centerpiece of House Republican's privacy agenda: a bill to prevent the commercial use of government data. To stay alive, that measure must now move through all relevant policy committees by Friday's session deadline.

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