Legislature(2005 - 2006)BELTZ 211

02/14/2006 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSSB 177(HES) Out of Committee
Moved CSSB 255(L&C) Out of Committee
Bills Previously Heard/Scheduled,
Including But Not Limited to:
Moved SB 244 Out of Committee
Moved CSSB 222(L&C) Out of Committee
           SB 222-PROTECTION OF PERSONAL INFORMATION                                                                        
CHAIR BUNDE announced SB 222 to  be up for consideration and then                                                               
noted he would set it aside to wait for the bill's sponsor.                                                                     
           SB 222-PROTECTION OF PERSONAL INFORMATION                                                                        
CHAIR   CON  BUNDE   announced  SB   222  to   be  back   up  for                                                               
SENATOR RALPH SEEKINS moved to adopt CS SB 222(L&C), version F.                                                                 
SENATOR JOHNNY ELLIS objected for discussion purposes.                                                                          
MR. WAYNE LEIGHTY, staff to  Senator Therriault, co-sponsor of SB                                                               
222,  testified  that  the  first  change  adds  law  enforcement                                                               
agencies  to  Alaska's  Department   of  Public  Safety  that  is                                                               
authorized to  put a  temporary hold  on a  "Notice of  Breach of                                                               
Security" while an investigation  is performed. Item two conforms                                                               
language to  current California law regarding  how documents with                                                               
social security numbers on them are mailed.                                                                                     
Item three  allows for situations  when collection  or submission                                                               
of a social  security number is under state or  federal law. Item                                                               
four  adds language  to  the social  security  number section  to                                                               
clarify   that   a   business  can   require   other   forms   of                                                               
identification to verify the identity  of a person they are doing                                                               
business  with.  Item five,  Article  8,  is  a new  section  and                                                               
requires  truncation  of a  credit  card  number on  all  printed                                                               
receipts.  Under   the  general  provisions  in   Article  9  "or                                                               
conflicts" is deleted and states  that federal law is preemptive.                                                               
He said they continue to work with the stakeholders                                                                             
SENATOR ELLIS removed his objection and version F was adopted.                                                                  
2:00:35 PM                                                                                                                    
SENATOR BUNDE asked if a driver's license could still be used.                                                                  
MR. DAVE  STANCLIFF, staff to  Senator Therriault,  co-sponsor of                                                               
SB 222,  replied yes,  but added that  industry is  finding other                                                               
ways to verify identifications,  which would give those companies                                                               
the competitive edge.                                                                                                           
2:02:57 PM                                                                                                                    
SENATOR SEEKINS  said he  wouldn't support  this bill  unless the                                                               
state was  held to  the same  accountability standard  as private                                                               
MR.  LEIGHTY  informed the  committee  that  it is  possible  for                                                               
individuals  to   get  credit   reports  and   background  checks                                                               
completed without using social security numbers now.                                                                            
CHAIR  BUNDE  said the  state  is  issuing I.D.s  without  social                                                               
security numbers.                                                                                                               
2:05:34 PM                                                                                                                    
SENATOR SEEKINS  said he thought  this bill would change  the way                                                               
he analyzes  credit in his  automobile dealership.  But customers                                                               
should still  know that their  information must be  accurate with                                                               
the  understanding  that if  it  isn't  accurate, it  constitutes                                                               
fraud and has a penalty that goes with it.                                                                                      
STEVE  CLEARY, Alaska  Public Interest  Research Group  (AKPIRG),                                                               
supported  SB 222.  He said  that the  Choice Point  Incorporated                                                               
Company  leaked  a  lot  of  personal  information  that  exposed                                                               
consumers to  identify theft  about a year  ago. Since  that time                                                               
more than 52  million people have been put in  danger of identify                                                               
theft because of  security breaches. Alaska topped  the nation in                                                               
fraud  complaints   last  year  with  249   per  100,000  persons                                                               
according to  a Federal Trade  Commission (FTC) report  that also                                                               
states  that identify  theft has  topped the  list of  nationwide                                                               
complaints  for the  sixth year  in a  row. The  average consumer                                                               
spends  about 175  hours of  their own  time clearing  their name                                                               
after an identity theft.                                                                                                        
MR.  CLEARY  said the  two  most  important  measures in  SB  222                                                               
mandate  that  consumers be  notified  after  a security  breach,                                                               
which  would allow  them  to freeze  their  credit reports.  This                                                               
would at the very least minimize  or even eliminate the danger of                                                               
identity theft.  Twenty-seven states  have filed  security freeze                                                               
bills and 12 states have these laws now.                                                                                        
2:13:19 PM                                                                                                                    
SENATOR  SEEKINS asked  if the  biggest threat  is being  able to                                                               
access  someone's  credit  report, people  leave  their  personal                                                               
information  in  many places  during  the  course  of a  day.  He                                                               
related that  for him to  rent a car in  Orlando, he had  to show                                                               
his  driver's  license  that  has  his  social  security  number,                                                               
address and name on it. "With  those three things, you can really                                                               
get into someone's - you can steal their identity."                                                                             
2:18:23 PM                                                                                                                    
SENATOR  THERRIAULT  agreed that  it  gets  easier every  day  to                                                               
access people's  information and  lawmakers must  try to  keep up                                                               
with the new ways.                                                                                                              
2:20:46 PM                                                                                                                    
SENATOR  BEN  STEVENS agreed  with  Senator  Seekins that  public                                                               
entities have  to be held  accountable the same as  private ones.                                                               
He related how  he banks, invests and pays  everything online and                                                               
he went through an exercise to see  how easy it would be to steal                                                               
his  identity and  he easily  accessed  his personal  information                                                               
from a Virginia  county tax roll, a Mat-Su borough  tax roll, the                                                               
Anchorage municipality  tax roll  and on the  state web  page for                                                               
the Commercial Fisheries Entry Commission.  So, where he actively                                                               
transacts in money, he couldn't get  it, but in all the places he                                                               
did find it, it was related to a government entity.                                                                             
2:22:28 PM                                                                                                                    
SENATOR  ELLIS  agreed  that  government must  be  held  to  high                                                               
standards. He  asked if the  administration had indicated  it was                                                               
heading in that direction.                                                                                                      
SENATOR GUESS also  agreed that the government has to  be held to                                                               
the same  standard as  private industry and  stated that  she had                                                               
received a  three-page letter from the  Attorney General's Office                                                               
saying that, while  the state might have instances  when it needs                                                               
to  get a  social security  number, there  are many  instances in                                                               
which it gathers social security  numbers without a legal reason.                                                               
She said, "We're trying to parse through those right now."                                                                      
Other issues have  arisen such as if the state  should be open to                                                               
civil suits or whether it should  be held to the same standard in                                                               
all instances. She said:                                                                                                        
     It  is  our  belief  that  we  shouldn't  differentiate                                                                    
     between business  and government. It's people  who have                                                                    
     our  personal   information  and  those  will   be  the                                                                    
     discussions  that   we're  going  to  have   in  Senate                                                                    
2:24:46 PM                                                                                                                    
SENATOR SEEKINS  moved to report  CSSB 222(L&C), version  F, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note.  Senators Ellis,  Seekins,  Ben Stevens,  Davis, and  Chair                                                               
Bunde voted yea; and it was so ordered.                                                                                         

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