04/23/2007 03:00 PM House LABOR & COMMERCE

HB 65-PERSONAL INFORMATION & CONSUMER CREDIT                                                                                  
                                                                                                                                
3:10:31 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced that only  order of business would be HOUSE                                                               
BILL NO. 65,  "An Act relating to breaches  of security involving                                                               
personal  information, credit  report and  credit score  security                                                               
freezes, consumer credit  monitoring, credit accuracy, protection                                                               
of  social  security  numbers,   care  of  records,  disposal  of                                                               
records,  identity  theft,   furnishing  consumer  credit  header                                                               
information,  credit   cards,  and   debit  cards,  and   to  the                                                               
jurisdiction of  the office of administrative  hearings; amending                                                               
Rule 60,  Alaska Rules of  Civil Procedure; and providing  for an                                                               
effective  date."    [Before  the   committee  was  the  proposed                                                               
committee  substitute  (CS)  for   HB  65,  Version  25-LS0311\C,                                                               
Bannister, 4/9/07, which had been adopted on 4/20/07.]                                                                          
                                                                                                                                
3:11:10 PM                                                                                                                    
                                                                                                                                
KAREN  LIDSTER,  Staff  to Representative  John  Coghill,  Alaska                                                               
State  Legislature,  explained  that  since  the  last  committee                                                               
meeting, efforts  have been made  to provide further  clarity and                                                               
to address members' concerns.  She  requested that HB 65 be moved                                                               
from committee and assured members  that issues would continue to                                                               
be addressed in the House Judiciary Standing Committee.                                                                         
                                                                                                                                
CHAIR  OLSON shared  his understanding  that  there are  judicial                                                               
issues  that  need to  be  addressed;  therefore he  expressed  a                                                               
desire to move the bill on to the next committee of referral.                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER expressed concern  regarding the extent of                                                               
the  state's liability  for  penalty costs  of  $5,000 or  actual                                                               
damages per disclosure.                                                                                                         
                                                                                                                                
MS. LIDSTER replied  that although this issue  is being addressed                                                               
due to  concerns, Representative  Coghill believes that  both the                                                               
state  and private  industry have  responsibility  in this  area.                                                               
She indicated that  the [joint prime sponsors]  have been working                                                               
with the  Department of Administration  (DOA) and  the Department                                                               
of Law (DOL) on this issue.                                                                                                     
                                                                                                                                
REPRESENTATIVE GARDNER  requested that  the joint  prime sponsors                                                               
be notified  that she  is concerned  about "this  one provision,"                                                               
noting  that  the  state  collects  information  such  as  social                                                               
security numbers when required by  law.  She expressed discomfort                                                               
with the possibility  of the state being exposed  to penalties to                                                               
the extent stated in the bill.                                                                                                  
                                                                                                                                
3:14:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX moved to report  the proposed CS for HB 65,                                                               
Version 25-LS0311\C,  Bannister, 4/09/07,  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being no  objection, CSHB  65(L&C) was  reported from  the                                                               
House Labor and Commerce Standing Committee.