Should NH prohibit retailers from storing driver’s license data?

In 2018 New Hampshire voters approved a constitutional Right of Privacy, but that didn’t give the Legislature, executive branch, or the courts much detail on how to handle citizens’ data. Since then, the New Hampshire Legislature has debated dozens of bills to restrict how businesses and the government store, use, disclose, and delete our personal information. This year the Legislature is looking to limit how some retailers handle driver’s licenses.

Follow-up to last year’s privacy law

Last year Gov. Sununu signed SB 255, a new law that gives consumers rights over what data a business collects. However, some businesses are still legally required to verify age or identity. Notably, any business that sells alcohol or tobacco must verify the age of each purchaser. Businesses can choose their verification process; many businesses use a scanning system that gives the cashier a “red light” or “green light” for each purchase.

Many consumers are concerned that businesses who scan driver’s licenses are using software that illegally or at least unsafely stores the data. Rep. Kevin Verville (R-Deerfield) is sponsoring HB 77 to address this concern.

Proposal to restrict license scanning

As introduced, HB 77 would prohibit businesses from scanning driver’s licenses when selling alcohol or tobacco products.

Rep. Verville summed up the concerns in his testimony to the House Commerce and Consumer Affairs Committee: “We can imagine a negative scenario where we have somebody working at an establishment, convenience store, and a customer comes in that perhaps they’re interested in, perhaps they dislike, and so they check the identification and scan it into the database, and now later, of course, that is searchable.”

Similar concerns prompted the federal government to restrict access to DMV data back in 1994. Notably, actress Rebecca Schaeffer was murdered in 1989 after an obsessed fan was able to obtain her home address through DMV records. Senator Barbara Boxer cited that case, and many others, when she sponsored the Drivers Privacy Protection Act (DPPA).

Thirty years later, the DMV isn’t the one releasing this data; we, as consumers, are regularly handing it over to businesses. Those businesses rely on software that may sell our data or may be vulnerable to hacking.

At the public hearing for HB 77, however, grocers, gas stations, and law enforcement all argued that the bill should allow scanning, so long as the license data is not stored. They testified that scanning was an essential tool to detect fake IDs and verify age. After all, if a business sells to an underage buyer, they could lose their license. Meanwhile fake IDs are getting more and more sophisticated.

The House then amended the bill to clarify that businesses can scan IDs when they sell alcohol or tobacco, but they are not authorized to record or store any personal information.

State agencies already working on a fix

HB 77 adds to the state’s liquor laws, which means it would be up to the Liquor Commission to enforce. The Liquor Commission could use the regular rulemaking process to set penalties for businesses that violate the law. The House Commerce and Consumer Affairs Committee heard testimony from John Marasco, the Director of the Division of Motor Vehicles, that the state is setting up Driver's License Data Verification (DLDV) through the American Association of Motor Vehicle Administrators (AAMVA). DLDV would allow retail stores, automobile dealers, hospital associations, and other businesses to scan and verify licenses through a trusted state system without storing the data locally.

Director Marasco also told the Committee he planned to meet with Chief Mark Armaganian, Director of the Division of Enforcement and Licensing for the NH Liquor Commission, to discuss how DLDV could be incorporated into the rules for alcohol and tobacco licensees.

Does the proposal go far enough?

Not everyone thinks this is a great solution, however. Debra Johnson, a citizen from Grantham, showed up to the House Commerce and Consumer Affairs Committee with a binder of information about how businesses are collecting and misusing data. She argued even scanning without storage should be banned.

“We’ve taught people that it’s OK to give out this identity,” she said. “Especially younger people, they don’t understand the world that we should be living in and what we’re living in is 1984.”

A different House bill, HB 330, broadly bans businesses from scanning or copying driver’s licenses. The bill also carries a fine of at least $100,000. The House Criminal Justice and Public Safety Committee voted to “retain” the bill for more work, which means it will not get a vote from the full House this year.

Take action

HB 77 will have its next public hearing on Tuesday, March 25 before the Senate Commerce Committee. If you want to make your voice heard on this issue, check out Citizens Count’s Advocacy Toolkit.