Information Gravy Train

Texas makes millions selling your personal data, but new bill may limit that practice

It’s one of the Lone Star State’s dirty little secrets. For decades, Texas has earned extra cash by selling your personal information to outside agencies and private companies.

The Department of Motor Vehicles, the Department of Public Safety and the Department of Transportation, for example. They have your driver’s license information and sells those details — your photo, home address, driver’s license number and date of birth — to more than 1,200 customers.

One of those companies was insurance software provider Vertafore. You may recall that company was hacked last year and about 28 million Texans had their personal data stolen.

And while the rules say customers aren’t supposed to resell data purchased from the state, there’s not much the state can do about it.

So how much does the state make off your information?

According to a story last week in the Dallas Morning News, Texas has raked in more than $450 million from the data sales over the past five years. That’s a lot of money. But at least one state lawmaker wants to end the gravy train.

Sen. Robert Nichols has filed a bill that restricts sales of personal information only to customers who can demonstrate a legitimate need and then only on a one-to-one basis. No more mass sales. It also increases the penalties for misuse of that information.

Will it pass? Nichols says it has broad support in the state Senate. But lawmakers in both chambers might be blinded by the dollar signs involved.

We would prefer to see a total ban on the state selling personal information or at least the option for Texans to opt-out of having their details sold. But if this bill is the best we can hope for, we support it.