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Summary of Legislation: Current law prohibits businesses and financial institutions, except in certain circumstances, from accessing and collecting electronically readable data stored on a driver's license. The law requires that the only information stored on a license be that which is printed on the license and a physical description of the licensee. This legislation expands the circumstances under which institution or a business may access or use electronically readable information derived from a driver's license, commercial driver's license (CDL), or personal identification card.
Analysis: This legislation expands the ability for a business or financial institution to access and store machine readable information from a driver's license, CDL, or personal identification "for purposes of identification verification of an individual or check verification at the point of sale for a purchase of a good or service by check." It would not be permissible to use the information for the purpose of selling the data, advertising, or other commercial purposes. This bill protects free market transactions by enabling merchants to more easily determine if a customer is making a fraudulent transaction. We support HB 346.