Legislature(2021 - 2022)BUTROVICH 205

02/02/2022 01:30 PM Senate JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 3 DEFINITION OF "DISASTER": CYBERSECURITY TELECONFERENCED
Moved SCS CSHB 3(JUD) Out of Committee
-- Public Testimony --
+= HB 155 COURT SYSTEM PROVIDE VISITORS & EXPERTS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SB 31 PROHIBITING BINDING CAUCUSES TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SB 119 OATH OF OFFICE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 118 CMTE ON NULLIFICATION OF FEDERAL LAWS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
+= SB 129 ELECTION PAMPHLET INFORMATION RE: JUDGES TELECONFERENCED
Heard & Held
          HB 3-DEFINITION OF "DISASTER": CYBERSECURITY                                                                      
                                                                                                                                
1:36:08 PM                                                                                                                    
CHAIR HOLLAND  announced the consideration  of CS FOR  HOUSE BILL                                                               
NO. 3(JUD) "An Act relating to the definition of 'disaster.'"                                                                   
                                                                                                                                
[The committee previously heard HB 3 on January 28, 2022.]                                                                      
                                                                                                                                
1:36:21 PM                                                                                                                    
CHAIR HOLLAND opened public testimony on HB 3.                                                                                  
                                                                                                                                
1:37:05 PM                                                                                                                    
GREGG BRELSFORD,  representing self, Anchorage, Alaska,  spoke in                                                               
support of  HB 3. He  provided his background, including  that he                                                               
previously  served as  the borough  manager for  the Bristol  Bay                                                               
Borough (BBB) from  2018 to 2020 and as the  interim city manager                                                               
for the City of Dillingham  in 2021. He emphasized the importance                                                               
of HB 3  since it would expand the existing  state law definition                                                               
of disaster to include cyber attacks.                                                                                           
                                                                                                                                
1:38:44 PM                                                                                                                    
Mr.  BRELSFORD  related that  he  was  BBB's manager  when  cyber                                                               
terrorists  made  ransom  demands against  the  Matanuska-Susitna                                                               
Borough (MSB) and the City of  Valdez. This was a wake-up call to                                                               
Alaskan communities  and the Alaska  Municipal League due  to the                                                               
potential  harm  cyber attacks  could  cause.  The Department  of                                                               
Health and  Social Services  (DHSS) and  the Alaska  Court System                                                               
(ACS) also  suffered damaging  cyber attacks  last year.  He said                                                               
increases   in  cyber   attacks  represent   a  serious   concern                                                               
throughout the state. HB 3  would provide a reasonable and timely                                                               
response  by  recognizing  the scope  and  seriousness  of  cyber                                                               
attack  risks  and threats.  The  bill  would allow  the  state's                                                               
system to respond to cyber attacks quickly.                                                                                     
                                                                                                                                
1:39:53 PM                                                                                                                    
MR.  BRELSFORD  suggested  the   committee  consider  adding  the                                                               
language "or  a political  subdivision of the  state" to  line to                                                               
subparagraph (F) on page 2, line  31. He stated that the language                                                               
beginning on line 29 would read:                                                                                                
                                                                                                                                
     "...; in  this subparagraph,  "critical infrastructure"                                                                    
     means systems and assets,  whether physical or virtual,                                                                    
     so vital  to the  state or  a political  subdivision of                                                                    
     the  state that  the incapacity  or destruction  of the                                                                    
     systems and assets would have  a debilitating effect on                                                                    
     security, state economic  security, state public health                                                                    
     or safety, or any combination of those matters;                                                                            
                                                                                                                                
1:40:43 PM                                                                                                                    
MR.  BRELSFORD  explained  that all  of  the  proposed  preceding                                                               
language  explicitly reads  "or  a political  subdivision of  the                                                               
state." He  said adding this  language to subparagraph  (F) would                                                               
provide continuity and clarity.                                                                                                 
                                                                                                                                
MR. BRELSFORD  acknowledged that  some people might  be concerned                                                               
that adding  "cyber attack" to  the definition of  disaster would                                                               
expand the  governor's power.  First, he opined  that HB  3 would                                                               
not do  so because it would  merely clarify that the  state could                                                               
exercise  its power  to  address  one of  the  newest threats  to                                                               
governmental operations.  Second, as  borough manager,  he served                                                               
as the COVID-19  incident commander of the  two largest municipal                                                               
governments in Bristol  Bay during the first two  years of COVID-                                                               
19. For  one month,  about 10,000  fishery workers  and fishermen                                                               
descended  into Bristol  Bay  from  all over  the  world for  the                                                               
commercial sockeye salmon fishery.                                                                                              
                                                                                                                                
MR. BRELSFORD  related that for  two summers, Bristol  Bay became                                                               
the hottest  COVID-19 risk  zone in the  state. His  staff worked                                                               
with the  executive branch's  disaster policy  cabinet, including                                                               
the  Alaska  Department of  Military  &  Veterans Affairs  (DMVA)                                                               
Division  of  Homeland  Security  and  Emergency  Management.  He                                                               
characterized  the  executive   branch's  efforts  as  competent,                                                               
tireless, and  working in good faith  with the BBB and  others in                                                               
the state to  jointly mitigate COVID-19 risks  and threats. Based                                                               
on  his first-hand  experience,  he was  not  concerned that  the                                                               
executive  branch  might  misuse its  already  existing  disaster                                                               
response capabilities.                                                                                                          
                                                                                                                                
1:43:43 PM                                                                                                                    
SENATOR HUGHES  referred to page 2,  line 31 of HB  3, Version W,                                                               
and  asked   if  his   suggestion  was   to  add   "or  political                                                               
subdivision" after "state."                                                                                                     
                                                                                                                                
MR. BRELSFORD  restated his suggested  language. On page  2, line                                                               
31  of  HB 3,  Version  W,  after  state,  add, "or  a  political                                                               
subdivision of the state ...."                                                                                                  
                                                                                                                                
SENATOR  HUGHES  noted  the  language   uses  the  phrase  "or  a                                                               
political subdivision of  the state ...." She  asked whether this                                                               
language  should also  be  added to  the last  page  of the  bill                                                               
regarding the  debilitating effect. She noted  that Mr. Brelsford                                                               
mentioned the  Valdez cyber  security attack was  an attack  of a                                                               
political subdivision rather than the state.                                                                                    
                                                                                                                                
MR. BRELSFORD  agreed with Senator  Hughes. He  acknowledged that                                                               
he considered  it, decided  that adding the  language on  page 2,                                                               
line 31  would cover  it, but  now he  was unsure.  He emphasized                                                               
that the goal  was to ensure the expanded definition  in the bill                                                               
would apply  to the state and  to a political subdivision  of the                                                               
state.                                                                                                                          
                                                                                                                                
SENATOR  HUGHES  suggested  that  the  sponsor  or  cybersecurity                                                               
expert might help the committee sort through this issue.                                                                        
                                                                                                                                
1:46:00 PM                                                                                                                    
SENATOR KIEHL recalled speaking  with Legislative Legal attorneys                                                               
and perhaps  the sponsor when  the committee considered  the bill                                                               
last year. He  explained that the mentioned  provisions relate to                                                               
a  cyber  attack's  effect  on  the state.  He  referred  to  the                                                               
language  on page  2,  line 3,  "in or  against  the state  ...."                                                               
Subsequent  language in  subparagraph (F)  refers to  the systems                                                               
owned or  operated by  the state.  Thus, subparagraph  (F) speaks                                                               
not to  state systems but to  the cyber attack's effect  on those                                                               
systems.  Since subparagraph  (F) refers  to the  broader use  of                                                               
state, it  is comparable  to the  language on  page 2,  line [3].                                                               
Therefore, he said he believes the language is acceptable.                                                                      
                                                                                                                                
1:47:16 PM                                                                                                                    
CHAIR HOLLAND closed public testimony on HB 3.                                                                                  
                                                                                                                                
1:47:20 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:48:17 PM                                                                                                                    
CHAIR  HOLLAND reconvened  the meeting.  He related  that Senator                                                               
Kiehl explained that the language in  the bill refers to the all-                                                               
encompassing state, so it would  not be necessary to add language                                                               
to have it apply to a political subdivision.                                                                                    
                                                                                                                                
1:48:42 PM                                                                                                                    
SENATOR  HUGHES asked  whether the  sponsor was  comfortable that                                                               
the language in  the bill would ensure that  the state's economic                                                               
security or state's  public health or safety would  also apply to                                                               
a political subdivision.                                                                                                        
                                                                                                                                
1:49:18 PM                                                                                                                    
REPRESENTATIVE DELENA JOHNSON,  Alaska State Legislature, Juneau,                                                               
Alaska, speaking as sponsor of HB  3, stated that she worked with                                                               
the  Alaska  Municipal  League  on  the  language  related  to  a                                                               
political subdivision.  She related  her understanding  that when                                                               
the  bill refers  to  the state,  it  means the  all-encompassing                                                               
state. When the  bill refers to political  subdivisions, it means                                                               
the  state's  oversight  and   administration  of  the  political                                                               
subdivisions, including cities or municipalities.                                                                               
                                                                                                                                
1:50:22 PM                                                                                                                    
SENATOR  HUGHES referred  to page  2,  line 31,  to the  language                                                               
"vital to the state ..." She  referred to the language on page 3,                                                               
line 1, "would have a  debilitating effect" and interpreted it to                                                               
mean  that it  could specifically  refer  to one  borough of  the                                                               
state being affected.  She asked if HB 3 had  been in effect when                                                               
MSB experienced  the cybersecurity attack, whether  it would have                                                               
allowed a disaster declaration to move forward.                                                                                 
                                                                                                                                
REPRESENTATIVE  JOHNSON answered  yes.  She explained  that if  a                                                               
cyber attack were  widespread and critical, it  would apply. Even                                                               
though  the  cyber  attack  affecting   the  Mat-Su  Borough  was                                                               
widespread  and debilitating,  lasting  for  months, the  borough                                                               
could  not   independently  ask   the  FBI  to   investigate  the                                                               
cybersecurity  attack.  Eventually,   the  FBI  became  involved.                                                               
Still, suppose  the disaster declaration statute  had referred to                                                               
a  political subdivision.  In that  case, MSB  could have  worked                                                               
directly  with  the FBI  instead  of  resorting  to a  much  more                                                               
complicated process to get assistance.                                                                                          
                                                                                                                                
1:52:50 PM                                                                                                                    
SENATOR  HUGHES   stated  that  based  on   the  discussion,  she                                                               
understood that  the language  on page  2, line  31, and  page 3,                                                               
line 1 included a political subdivision of the state.                                                                           
                                                                                                                                
REPRESENTATIVE  JOHNSON  reiterated  that  she  worked  with  the                                                               
legislative drafters  and the Alaska Municipal  League to develop                                                               
this  language. She  said  she  was unsure  whether  it would  be                                                               
harmful  to add  the language  but decided  that as  long as  the                                                               
record reflects  that this  language would  apply to  a political                                                               
subdivision  of  the  state,  the  committee  has  done  its  due                                                               
diligence.                                                                                                                      
                                                                                                                                
1:54:23 PM                                                                                                                    
CHAIR HOLLAND solicited amendments on HB 3.                                                                                     
                                                                                                                                
1:54:30 PM                                                                                                                    
SENATOR KIEHL moved to adopt Amendment 1, work order 32-                                                                        
LS20041.W.8.                                                                                                                    
                                                                                                                                
                                                   32-LS0041\W.8                                                                
                                                        Dunmire                                                                 
                                                        5/11/21                                                                 
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                     BY SENATOR KIEHL                                                                 
     TO:  CSHB 3(JUD)                                                                                                           
                                                                                                                                
     Page 2, line 17, following "attack":                                                                                   
          Insert "or serious cyber incident"                                                                                
                                                                                                                                
     Page 2, line 22:                                                                                                           
          Delete "cyber event"                                                                                              
          Insert "serious cyber incident"                                                                                   
                                                                                                                                
     Page 2, line 29, through page 3, line 2:                                                                                   
          Delete ""critical infrastructure" means systems                                                                   
     and assets,  whether physical or  virtual, so  vital to                                                                
     the  state that  the incapacity  or destruction  of the                                                                
     systems and assets would have  a debilitating effect on                                                                
     security, state economic  security, state public health                                                                
     or safety, or any combination of those matters;"                                                                       
          Insert "(i)  "critical infrastructure" means                                                                      
     systems  and assets,  whether physical  or virtual,  so                                                                
     vital to  the state that the  incapacity or destruction                                                                
     of  the systems  and assets  would have  a debilitating                                                                
     effect  on  security,  state economic  security,  state                                                                
     public health  or safety, or  any combination  of those                                                                
     matters;                                                                                                               
               (ii)  "serious cyber incident" means an                                                                      
     incident   that  has   a   confirmed   effect  on   the                                                                
     confidentiality, integrity, or  availability of systems                                                                
     and data,  has legal  or privacy  implications, affects                                                                
     other  agencies,  or  requires security  experience  or                                                                
     resources not otherwise available;"                                                                                  
                                                                                                                                
CHAIR HOLLAND objected for discussion purposes.                                                                                 
                                                                                                                                
1:55:00 PM                                                                                                                    
SENATOR KIEHL related that the bill addresses cyber attacks and                                                                 
cyber events. Amendment 1 would delete "cyber event" and replace                                                                
it  with "serious  cyber incident"  and define  it. He  explained                                                               
that the National Institute for  Standards and Technology and the                                                               
federal  General  Services  Administration have  definitions  for                                                               
"serious cyber incidents." He related  that the bill would define                                                               
both terms,  consistent with federal agency  definitions. He said                                                               
the  sponsor did  not object.  He reminded  members that  a cyber                                                               
attack  or  serious  incident must  meet  the  current  statutory                                                               
definition of a disaster. He referred  to page 1, lines 4-5 of HB
3, which read,  "(2) "disaster" means the  occurrence or imminent                                                               
threat of  widespread or severe  damage, injury, loss of  life or                                                               
property,  or shortage  of food,  water, or  fuel resulting  from                                                               
...."  He  said the  definition  of  "cyber incident"  means  "an                                                               
incident  that has  a confirmed  effect  on the  confidentiality,                                                               
integrity,  or   availability  of  systems  and   data  ...."  He                                                               
cautioned  that this  definition would  not apply  to a  personal                                                               
account  being  hacked or  if  BASIS  were  to  go down  and  the                                                               
legislature could not use it.                                                                                                   
                                                                                                                                
1:56:29 PM                                                                                                                    
SENATOR  SHOWER  asked  the  sponsor   to  state  their  view  of                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  D.   JOHNSON  said  that  she   was  "okay"  with                                                               
Amendment 1; the definition would add clarification.                                                                            
                                                                                                                                
1:57:52 PM                                                                                                                    
CHRIS LETTERMAN,  Chief Information Security  Officer, Department                                                               
of    Administration,   Juneau,    Alaska,   stated    that   the                                                               
administration  reviewed  Amendment  1   and  did  not  have  any                                                               
concerns.  He  said  Amendment  1  provides  helpful,  clarifying                                                               
language.                                                                                                                       
                                                                                                                                
1:58:42 PM                                                                                                                    
CHAIR HOLLAND removed his objection;  heard no further objection,                                                               
and Amendment 1 was adopted.                                                                                                    
                                                                                                                                
1:59:05 PM                                                                                                                    
SENATOR MYERS  stated that he  was initially skeptical when  HB 3                                                               
was brought to  the committee, since the Alaska  Disaster Act has                                                               
such broad powers.  He wondered how to constrain  the language to                                                               
ensure that it  only applies to events that  warranted a disaster                                                               
declaration,  including a  pipeline, electrical  grid, or  a bank                                                               
attack that  disabled those systems.  In the past 24  months, the                                                               
Division  of  Elections  and the  Alaska  Court  System  suffered                                                               
terrible attacks but they did  not rise to a disaster declaration                                                               
level. He acknowledged  that his concerns were not  related to HB
3 but  to the Alaska  Disaster Act,  which should be  updated. He                                                               
recognized that such an undertaking  would likely not happen this                                                               
year. Still, he  said it was important to  remember that disaster                                                               
declarations must be applied appropriately.                                                                                     
                                                                                                                                
2:01:20 PM                                                                                                                    
CHAIR HOLLAND solicited the will of the committee.                                                                              
                                                                                                                                
2:01:29 PM                                                                                                                    
SENATOR SHOWER moved  to report HB 3, work  order 31-LS0041\W, as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached fiscal notes.                                                                                                          
                                                                                                                                
CHAIR  HOLLAND  heard  no  objection, and  SCS  CSHB  3(JUD)  was                                                               
reported from the Senate Judiciary Standing Committee.                                                                          

Document Name Date/Time Subjects
SB 119 Sponsor's Statement.pdf SJUD 2/2/2022 1:30:00 PM
SB 119
SB 119 Sectional Final.pdf SJUD 2/2/2022 1:30:00 PM
SB 119
SB 31 - Sectional Analysis.pdf SJUD 2/2/2022 1:30:00 PM
SB 31
SB 31 - Sponsor Statement.pdf SJUD 2/2/2022 1:30:00 PM
SB 31
HB 3 Amendment (SJUD).pdf SJUD 2/2/2022 1:30:00 PM
HB 3
SB 129 SJUD Amendment O.3.pdf SJUD 2/2/2022 1:30:00 PM
SB 129
SB 129 SJUD Amendment O.4.pdf SJUD 2/2/2022 1:30:00 PM
SB 129
SB 129 SJUD Amendment O.2.pdf SJUD 2/2/2022 1:30:00 PM
SB 129
SJC - SB 119 Testimony, 2022-2-1.pdf SJUD 2/2/2022 1:30:00 PM
SB 119
HB 3 Public Testimony.pdf SJUD 2/2/2022 1:30:00 PM
HB 3
SB 119 SJUD Public Testimony through 2.12.22.pdf SJUD 2/2/2022 1:30:00 PM
SB 119