Legislature(2017 - 2018)BUTROVICH 205

04/03/2018 03:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:45 p.m. --
*+ SB 118 DISCLOSURE OF CUSTOMER INFORMATION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 96 TAXES;DEDUCTIONS;FEES;TAX STAMP DISCOUNT TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 168 REPEAL ADMIN. REG. REVIEW COMMITTEE TELECONFERENCED
Moved HB 168 Out of Committee
-- Public Testimony --
+ HCR 10 UNIFORM RULES: REGULATION REVIEW TELECONFERENCED
Moved HCR 10 Out of Committee
-- Public Testimony --
+ HB 20 SOLEMNIZE MARRIAGE: ELECTED OFFICIALS TELECONFERENCED
Moved CSHB 20(JUD) Out of Committee
-- Public Testimony --
+ HB 152 ORGANIZED MILITIA; AK ST. DEFENSE FORCE TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
           SB 118-DISCLOSURE OF CUSTOMER INFORMATION                                                                        
                                                                                                                              
3:48:45 PM                                                                                                                    
CHAIR MEYER announced the consideration of Senate Bill 118 (SB
118).                                                                                                                           
                                                                                                                                
3:48:50 PM                                                                                                                    
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau,                                                                    
Alaska, sponsor of SB 118, provided an overview as follows:                                                                     
                                                                                                                                
     This bill  stems from our constitutional  obligation in                                                                    
     Article  I, Section  22,  the  constitution says,  "The                                                                    
     right of the people to  privacy is recognized and shall                                                                    
     not be infringed, the  Legislature shall implement this                                                                    
     by  statute."  This  statute   is  seeking  to  protect                                                                    
     personal  information  that internet  websites  collect                                                                    
     about   us  on   a  daily   basis.  The   internet  has                                                                    
     fundamentally  changed our  world  but virtually  every                                                                    
     website  you  click on,  every  product  that you  buy,                                                                    
     every  medical illness  you  research, every  political                                                                    
     article you  research, every  religious site  you visit                                                                    
     is being recorded, collected and  sold. There is little                                                                    
     to stop  data-brokers from  using the  information they                                                                    
     gather from us in whatever way they please.                                                                                
                                                                                                                                
     There  is  a  gentleman  named  Jeff  Chester,  he's  a                                                                    
     privacy  advocate  and  director  for  the  Center  for                                                                    
     Digital Democracy  (CDD), and I  think he summed  it up                                                                    
     very  well,  he  said,  "Because there  are  no  online                                                                    
     privacy  laws in  the United  States,  there's no  stop                                                                    
     sign, there's no slow sign,  there's no crossing guard,                                                                    
     the  message  is anything  goes."  We've  seen that  in                                                                    
     recent  months with  the Facebook-Cambridge  Analytical                                                                    
     issue  and  the  other  things  we  are  hearing  about                                                                    
     massive  collections  of  information on  the  American                                                                    
     citizens. Websites  use up to a  hundred tracking tools                                                                    
     to  collect personal  information. Americans  have lost                                                                    
     jobs and  have been denied mortgages  when data-brokers                                                                    
     have shared  incorrect information  and scammers  use a                                                                    
     data-brokerage  list to  target vulnerable  populations                                                                    
     like   seniors.   Many   mobile  apps   show   location                                                                    
     information and phone numbers.  Women and children have                                                                    
     been hurt or killed when  location data was shared with                                                                    
     abusers.                                                                                                                   
                                                                                                                                
     This bill seeks to  make the internet more transparent,                                                                    
     it  simply  requires  that website  owners  and  online                                                                    
     services  tell people  what  personal information  they                                                                    
     are  collecting and  who  it is  being  provided to.  I                                                                    
     would  point out  that similar  legislation has  passed                                                                    
     the Illinois state  senate and my staff  checked was in                                                                    
     third reading  in their state house,  today. Canada and                                                                    
     the United Kingdom both have  laws that allow consumers                                                                    
     to find out  what data is being shared  about them. The                                                                    
     European Union  passed regulations  in 2016  which goes                                                                    
     into effect next  month which are similar  to this bill                                                                    
     and actually  goes further than this  bill because they                                                                    
     have what they  call "Right to Be  Forgotten," which is                                                                    
     the  right for  the consumer  to ask  websites and  the                                                                    
     data-brokerage firms  to actually delete the  data that                                                                    
     they have  collected on  them; we  are not  going quite                                                                    
     that far  but this  would put us  among the  leaders in                                                                    
     the nation in protecting Alaskans' internet privacy.                                                                       
                                                                                                                                
3:52:34 PM                                                                                                                    
ELISE SORUM-BIRK, Staff, Senator Wielechowski, Alaska State                                                                     
Legislature, Juneau, Alaska, provided a sectional analysis on SB
118 as follows:                                                                                                                 
                                                                                                                                
     Section 1:                                                                                                             
     Titles the legislation, the "Right to Know Act."                                                                           
                                                                                                                                
     Section 2:                                                                                                             
     Enumerates  legislative findings  relating to  Alaska's                                                                    
     constitutional  right  of  privacy  and  detailing  the                                                                    
     importance of transparency  and security for consumers,                                                                    
     and  business  practices  related to  personal  digital                                                                    
     data.                                                                                                                      
                                                                                                                                
     Section 3:                                                                                                             
     AS  45.48.800,  requires  the  owner  of  a  commercial                                                                    
     internet  website  or   commercial  online  service  to                                                                    
     notify   customers   of   their   information   sharing                                                                    
     practices, it outlines what  information the owner must                                                                    
     include in the notification.                                                                                               
                                                                                                                                
     [AS  45.48.810]  requires  the owner  of  a  commercial                                                                    
     internet  website  or  commercial  online  service,  if                                                                    
     requested by the customer, to  provide the customer any                                                                    
     information  shared  about  them  in  the  previous  12                                                                    
     months and  outlines which  information the  owner must                                                                    
     provide to the customer.                                                                                                   
                                                                                                                                
     [AS  45.48.820] identifies  the categories  of personal                                                                    
     information that the owner needs to disclose.                                                                              
                                                                                                                                
     [AS  45.48.830] outlines  different  exceptions to  the                                                                    
     disclosure requirement.                                                                                                    
                                                                                                                                
     [AS 45.48.840]  allows the customer to  recover damages                                                                    
     if an owner violates the right to know.                                                                                    
                                                                                                                                
     [AS  45.48.850]   outlines  how   the  right   to  know                                                                    
     interacts  with  existing  privacy regulations  on  the                                                                    
     state and federal level.                                                                                                   
                                                                                                                                
     The last section in section 3 provides definitions.                                                                        
                                                                                                                                
     Section 4:                                                                                                             
     Establishes  that  this  is  only  applicable  to  data                                                                    
     collected after the effective date.                                                                                        
                                                                                                                                
3:55:14 PM                                                                                                                    
SENATOR COGHILL  asked if  SB 118 was  modeled after  some "model                                                               
legislation"  or  from  states  that  were  considering  internet                                                               
privacy. He explained  that he was thinking  about the difference                                                               
between Alaska and other states on constitutional privacy.                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  replied that he  did not know if  there was                                                               
model legislation  regarding internet  privacy but noted  that SB
118 is like what is being done in Illinois.                                                                                     
                                                                                                                                
3:55:35 PM                                                                                                                    
SENATOR GIESSEL joined the committee meeting.                                                                                   
                                                                                                                                
SENATOR COGHILL addressed the bill's  application and asked if he                                                               
has heard  of any  struggles on applying;  for example,  the need                                                               
for a  regulatory agency, how  it would  be housed in  Alaska and                                                               
how an individual would contact the agency.                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI answered as follows:                                                                                       
                                                                                                                                
     We  are not  contemplating at  this point  a regulatory                                                                    
     agency that  would oversee  this. We  are contemplating                                                                    
     that individuals would have a  cause of action, a legal                                                                    
     right  to sue,  it's in  page  5, lines  26-30. So,  if                                                                    
     there  was  a  violation  there  would  be  a  monetary                                                                    
     penalty of $5,000 or whatever  the actual damage where,                                                                    
     whatever  is greater  plus  attorney's  fees. It's  not                                                                    
     something that we would anticipate  would have a fiscal                                                                    
     note. It's  not something that we  would anticipate the                                                                    
     government would  be overseeing  and enforcing,  but it                                                                    
     would have that private right  to action which we think                                                                    
     would lead to enforcement.                                                                                                 
                                                                                                                                
SENATOR COGHILL  surmised that the  civil issue would have  to be                                                               
taken to court.                                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI answered yes.                                                                                              
                                                                                                                                
SENATOR COGHILL  remarked that the scenario  Senator Wielechowski                                                               
described would be a "David versus Goliath" situation.                                                                          
                                                                                                                                
3:57:41 PM                                                                                                                    
SENATOR WIELECHOWSKI concurred and  noted that his office printed                                                               
out terms  of service for  companies like Google. He  pointed out                                                               
that  Google does  not tell  customers exactly  what they  do and                                                               
speculated what they would say as follows:                                                                                      
                                                                                                                                
     Well, we  may sell your  data, we  may take it,  we are                                                                    
     not  going to  tell you  exactly what  we are  going to                                                                    
     take, we are not going to  tell you who we are going to                                                                    
     provide this to, but we may  go ahead and do it. So, it                                                                    
     would require more specificity.                                                                                            
                                                                                                                                
SENATOR   COGHILL  commented   that  he   would  ponder   Senator                                                               
Wielechowski's reply.                                                                                                           
                                                                                                                                
SENATOR WILSON  noted Senator Coghill's enforcement  comments and                                                               
asked  if   the  bill  is  strictly   for  Alaska-based  internet                                                               
transactions   versus  a   federal   issue   with  all   internet                                                               
transactions.                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK replied as follows:                                                                                              
                                                                                                                                
     This  is specific  to commercial  internet websites  or                                                                    
     commercial   online  services,   that   would  be   any                                                                    
     commercial  internet   website  or   commercial  online                                                                    
     service.  So,  a  commercial online  service  would  be                                                                    
     something that  you would subscribe to  like Netflix or                                                                    
     Amazon Prime.                                                                                                              
                                                                                                                                
She summarized that  the legislation was going  where things were                                                               
heading anyway because the internet  was an international medium.                                                               
She  explained that  websites operating  in Europe  will have  to                                                               
provide a lot of the  information required under the new European                                                               
Union  regulations. She  said the  bill's sponsor  wants to  make                                                               
sure that  Alaskans have  privacy protection  and the  ability to                                                               
know what data is being stored and collected.                                                                                   
                                                                                                                                
4:00:02 PM                                                                                                                    
SENATOR  WILSON  remarked  that  he  questioned  enforcement  for                                                               
companies in other countries.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI responded as follows:                                                                                      
                                                                                                                                
     There may  be companies  that you  can't get  ahold of,                                                                    
     there may  be websites where  that is true,  that would                                                                    
     be  up to  the person  who wants  to enforce  that, the                                                                    
     lawyers. I think if you come  in to the State of Alaska                                                                    
     with your  website you are  subjecting yourself  to the                                                                    
     jurisdiction of the State of  Alaska, but I do think it                                                                    
     is important  to remember that  this is  something that                                                                    
     is going  to be done  in the European  Union, something                                                                    
     that  is going  to  be done  in  Canada, very  similar,                                                                    
     something is already being done  in the United Kingdom.                                                                    
     I think the vast majority  of the websites that are out                                                                    
     there  are probably  the ones  that people  go to  on a                                                                    
     regular basis  are large, are  things like  CNN, MSNBC,                                                                    
     Fox  News,  Yahoo, they  are  Unites  States based.  If                                                                    
     there is a website  that is collecting your information                                                                    
     in  some  country  that  we  don't  have  any  sort  of                                                                    
     treaties  with, yes,  you probably  aren't going  to be                                                                    
     able to sue them, that is probably accurate.                                                                               
                                                                                                                                
CHAIR  MEYER asked  if  the  legislation should  be  done on  the                                                               
federal level rather than on the state level.                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI   answered  yes.   He  conceded   that  the                                                               
legislation  is evolving  at the  state level  because it  is not                                                               
happening at the federal level. He  opined that Alaska has a very                                                               
strong  and explicit  right  to privacy  with  an obligation  for                                                               
enforcement by statute.                                                                                                         
                                                                                                                                
SENATOR  COGHILL agreed  with Senator  Wielechowski's intent  and                                                               
opined that if  enough states were to pass  similar legislation a                                                               
combined effort for  a class action was possible  if big industry                                                               
was  not to  respond. He  said he  saw the  value of  putting the                                                               
proposed legislation into statute to  show the industry that they                                                               
must respect  the consumers. He  conceded that he had  not looked                                                               
at the language in the bill  and would have to review and ponder.                                                               
He asked Senator Wielechowski if he concurred with his remarks.                                                                 
                                                                                                                                
4:03:48 PM                                                                                                                    
SENATOR WIELECHOWSKI  answered absolutely.  He asserted  that the                                                               
bill would be  groundbreaking legislation that has  not passed in                                                               
any other state;  however, he noted that  Illinois would probably                                                               
pass similar legislation  within the next few  days. He continued                                                               
as follows:                                                                                                                     
                                                                                                                                
     It's one  of those things where  if you pass it  in one                                                                    
     state, I think from my  understanding how this works it                                                                    
     will not  be hard for  these companies to  comply with.                                                                    
     The ones  that collect  this data, the  data-brokers, I                                                                    
     think  are   pretty  easily   going  to   provide  this                                                                    
     information; but  absolutely, if one state  passes this                                                                    
     I think you  will see a ripple effect,  a domino effect                                                                    
     all across  the other states  because if you've  got to                                                                    
     do  it  for   one  state,  you  are   setting  up  that                                                                    
     infrastructure,  you are  really  going to  be able  to                                                                    
     provide it for every other state in the country.                                                                           
                                                                                                                                
SENATOR COGHILL noted that Senator  Wielechowski quoted a privacy                                                               
advocate  and asked  if the  individual  has been  used in  other                                                               
places and if he can be  approached as a resource. He inquired if                                                               
the issue was an international discussion.                                                                                      
                                                                                                                                
4:05:12 PM                                                                                                                    
SENATOR  WIELECHOWSKI  replied  that  the  privacy  advocate  was                                                               
quoted from a National Public  Radio (NPR) article. He reiterated                                                               
that the  individual was an  advocate for the Center  for Digital                                                               
Democracy. He  noted that  a number  of people  and organizations                                                               
were concerned about privacy and  added that a lot of libertarian                                                               
organizations were concerned as well. He continued as follows:                                                                  
                                                                                                                                
     This is  something that people  all across  the country                                                                    
     when  you  start  talking   about  getting  into  their                                                                    
     private information  and selling  it and  accessing all                                                                    
     sorts  of things,  that concerns  people and  there are                                                                    
     definitely  organizations; but,  we  can  reach out  to                                                                    
     this person if  you'd like and try to put  him in touch                                                                    
     with you or the committee.                                                                                                 
                                                                                                                                
SENATOR COGHILL asked  that contact with the  individual would be                                                               
appreciated at least for himself  or maybe the committee as well.                                                               
He  noted that  he has  not  reviewed the  research that  Senator                                                               
Wielechowski submitted  with his  legislation but added  that the                                                               
topic may be new but the subject is not.                                                                                        
                                                                                                                                
CHAIR  MEYER   asked  that   Senator  Wielechowski   provide  the                                                               
information to his office for  distribution to committee members.                                                               
He  asked if  the  state  runs the  risk  of companies  bypassing                                                               
Alaska if the state is the only one that has the privacy law.                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI  answered that  he  did  not think  so  and                                                               
questioned whether  a company  could block  a specific  state. He                                                               
opined  that the  information required  in the  legislation would                                                               
not be difficult  for companies to provide. He  said like Senator                                                               
Coghill said, the intent is to  start a domino effect with a good                                                               
law that other states can look at.  He conceded that a law at the                                                               
federal  level  would be  ideal,  but  legislation just  has  not                                                               
happened yet.                                                                                                                   
                                                                                                                                
CHAIR  MEYER   noted  that   Senator  Wielechowski   had  someone                                                               
scheduled to testify on SB 118.                                                                                                 
                                                                                                                                
MS. SORUM-BIRK replied that the  testifier was not available, but                                                               
a written testimony was submitted.                                                                                              
                                                                                                                                
CHAIR MEYER announced that public testimony would be left open.                                                                 
                                                                                                                                
4:08:25 PM                                                                                                                    
CHAIR MEYER held HB 118 in committee.                                                                                           
                                                                                                                                

Document Name Date/Time Subjects
SB 118 Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Version D.PDF SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Sectional Analysis.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Americans and Cybersecurity - Pew Research Center.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Data Brokers-Companies Are Buying, Sharing Your Online Info-All Tech Considered - NPR.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Opposition Letter SPSC.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Marketing Dataveillance and Digital Privacy- Ashworth and Free.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Right to Know Act -ACLU of Northern CA.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - When Companies Sell Customer Information Gathered Through the Internet- Henderson.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
HB 96 Sponsor Statement ver D 2.28.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Version D.PDF SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Supporting Documents Statutes Repealed by HB 96 2.20.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Supporting Documents IE HFIN DOR Subcommitee Report 2.12.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note3.OMB2476.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note 2.OMB2808.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note 1.OMB2360.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 168 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Sponsor Statement-2018.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168-Sectional Analysis-2018.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HCR 10 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10-Sponsor Statement-2018.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10 Uniform Rule 20-2018.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HB 20 Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Version O.PDF SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Summary of Changes.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letters of Support - Various Emails.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Martin Eldridge.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Alaskans Together for Equality.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Alaska Family Council.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Opposition - Alaska Family Action.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB152 ver N Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB 152 Version N.PDF SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Memo of Changes 3.20.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Additional Documents-DMVA Letter and bill info 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Supporting Document-DMVA Letter and Sectional 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Opposing Document-Letter Lawrence Wood 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB 152 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
SB 118 Opposition Letter Data and Marketing.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Testimony Digital Privacy Alliance.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Opposition Letter Data and Marketing.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
HB 20 Letter of Support Alaska Family Action.pdf SSTA 4/3/2018 3:30:00 PM
HB 20