Legislature(2019 - 2020)GRUENBERG 120

03/05/2020 03:00 PM STATE AFFAIRS

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Audio Topic
03:01:05 PM Start
03:01:49 PM Presentation: Transition to the Cloud
04:06:26 PM HB233
04:16:34 PM HB264
04:31:39 PM HB250
04:58:33 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Transition to the Cloud TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
Heard & Held
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 5, 2020                                                                                          
                           3:01 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Representative Zack Fields, Co-Chair                                                                                            
Representative Jonathan Kreiss-Tomkins, Co-Chair                                                                                
Representative Grier Hopkins                                                                                                    
Representative Andi Story                                                                                                       
Representative Sarah Vance                                                                                                      
Representative Laddie Shaw                                                                                                      
MEMBERS ABSENT                                                                                                                
Representative Steve Thompson                                                                                                   
COMMITTEE CALENDAR                                                                                                            
PRESENTATION:  TRANSITION TO THE CLOUD                                                                                          
     - HEARD                                                                                                                    
HOUSE BILL NO. 233                                                                                                              
"An Act relating to the display of documents on an electronic                                                                   
     - HEARD & HELD                                                                                                             
HOUSE BILL NO. 264                                                                                                              
"An Act relating to proof of financial responsibility after                                                                     
certain motor vehicle accidents."                                                                                               
     - HEARD & HELD                                                                                                             
HOUSE BILL NO. 250                                                                                                              
"An Act relating to voter preregistration for minors at least 16                                                                
years of age."                                                                                                                  
     - HEARD & HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB 233                                                                                                                  
SHORT TITLE: ELECTRONIC DISPLAY OF REQUIRED DOCUMENTS                                                                           
SPONSOR(s): REPRESENTATIVE(s) VANCE                                                                                             
02/05/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/20       (H)       STA, JUD                                                                                               
03/03/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/03/20       (H)       Scheduled but Not Heard                                                                                
03/05/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
BILL: HB 264                                                                                                                  
SHORT TITLE: PROOF OF INSURANCE: UNSATISFIED JUDGMENTS                                                                          
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
02/21/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/20       (H)       STA, JUD                                                                                               
03/03/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/03/20       (H)       Scheduled but Not Heard                                                                                
03/05/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
BILL: HB 250                                                                                                                  
SHORT TITLE: VOTER REGISTRATION AGE                                                                                             
SPONSOR(s): REPRESENTATIVE(s) HOPKINS                                                                                           
02/17/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/20       (H)       STA, JUD                                                                                               
03/03/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/03/20       (H)       Scheduled but Not Heard                                                                                
03/05/20       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
WITNESS REGISTER                                                                                                              
BILL SMITH, Chief Information Officer (CIO)                                                                                     
Office of Information Technology (OIT)                                                                                          
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented and answered questions during the                                                              
presentation of "Transition to the Cloud."                                                                                      
NEIL SMITH, Deputy Chief Information Officer (CIO)                                                                              
Office of Information Technology (OIT)                                                                                          
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the presentation                                                               
of "Transition to the Cloud."                                                                                                   
JANET OGAN, Staff                                                                                                               
Representative Sarah Vance                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
233, on behalf of Representative Vance, prime sponsor.                                                                          
REID HARRIS, Staff                                                                                                              
Representative Jonathan Kreiss-Tomkins                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:      Presented   HB  264   on   behalf   of                                                             
Representative Kreiss-Tomkins, prime sponsor.                                                                                   
JOANN OLSEN, Interim Director                                                                                                   
Division of Motor Vehicles (DMV)                                                                                                
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on HB
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community & Economic Development (DCCED)                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on HB
AMY GALLAWAY                                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 250.                                                                          
ACTION NARRATIVE                                                                                                              
3:01:05 PM                                                                                                                    
CO-CHAIR  ZACK FIELDS  called the  House  State Affairs  Standing                                                             
Committee  meeting  to  order  at   3:01  p.m.    Representatives                                                               
Hopkins, Vance,  Fields, and Kreiss-Tomkins  were present  at the                                                               
call to  order.   Representatives Story and  Shaw arrived  as the                                                               
meeting was in progress.                                                                                                        
^PRESENTATION:  Transition to the Cloud                                                                                         
             PRESENTATION:  Transition to the Cloud                                                                         
3:01:49 PM                                                                                                                    
CO-CHAIR FIELDS announced that the  first order of business would                                                               
be a presentation, entitled "Transition to the Cloud."                                                                          
3:02:31 PM                                                                                                                    
BILL SMITH, Chief Information Officer (CIO), Office of                                                                          
Information Technology (OIT), Department of Administration                                                                      
(DOA), paraphrased from his written statement, which read:                                                                      
     Thank you  to the Chair  for the opportunity  to appear                                                                    
     before  you  today.  There  has been  a  good  deal  of                                                                    
     confusion  over our  cloud migration  and I  appreciate                                                                    
     the opportunity to provide more detail.                                                                                    
     The  State of  Alaska currently  uses both  private and                                                                  
     public cloud environments and  has recently embarked on                                                                  
     an effort  to migrate significant  additional computing                                                                    
     and storage  requirements to  the cloud.  By increasing                                                                    
     the use of  cloud environments, the State  will be able                                                                    
     to achieve significant cost savings  by paying for what                                                                    
     we  actually  consume  instead  of  buying  significant                                                                    
     excess capacity  to handle spikes  in usage.  The State                                                                    
     also  will  be able  to  create  storage and  computing                                                                    
     capability   without  buying   new  hardware,   provide                                                                    
     dynamic disaster  recovery by easily  locating back-ups                                                                    
     in diverse  locations, and secure data  in environments                                                                    
     that  maintain  the  strictest  compliance  to  federal                                                                    
     security standards. Additionally,  a public cloud-based                                                                    
     environment  removes  the  burden  of  maintaining  and                                                                    
     patching hardware for the systems that are migrated.                                                                       
     We  face significant  facility and  hardware challenges                                                                  
     that  will be  partially  addressed  through our  cloud                                                                    
     migration.  We recently  experienced major  water leaks                                                                    
     above  our  Juneau   Datacenter  jeopardizing  critical                                                                    
     resources.  Many  of  our  60   plus  server  rooms  or                                                                    
     datacenters    around   the    State   face    facility                                                                    
     vulnerabilities.  In   the  Juneau   Datacenter  alone,                                                                    
     estimates  of needed  repairs  and improvements  exceed                                                                    
     Our equipment  is also aging.  Much of our  hardware is                                                                    
     beyond   typical  life   cycle   replacement  age.   An                                                                    
     independent   assessment   identified   a   significant                                                                  
     percentage  of our  physical servers  as  older than  5                                                                  
     years,  some  as  old as  10  years,  representing  the                                                                  
     technical debt that we've  accumulated.  Increasing our                                                                    
     cloud  utilization will  allow  us  to consolidate  our                                                                    
     remaining  physical assets  in  fewer locations,  avoid                                                                    
     costly  pending equipment  purchases  and focus  scarce                                                                    
     resources   on   addressing   a   smaller   number   of                                                                    
     In order  to secure  an appropriate  cloud environment,                                                                    
     we  used a  nationally competed  contract vehicle.  The                                                                  
     National Association  of State Purchasing  Officers, or                                                                    
     'NASPO', Value  Point cloud  solution was  a nationally                                                                    
     competed  contract  and  runs from  September  2016  to                                                                    
     September 2026.  The Request for Proposal,  or RFP, for                                                                    
     the Master  Agreement was advertised by  NASPO, and the                                                                    
     State  of Alaska's  procurement  portal (Online  Public                                                                    
     Notices).  The RFP  generated  nationwide interest  and                                                                    
     proposals from 58 offerors. The  RFP also includes a 2-                                                                    
     year refresh  and recompete clause to  allow additional                                                                    
     vendors to  qualify and become part  of the Nation-wide                                                                    
     cloud  solution  provider   network.  Through  the  re-                                                                    
     compete  process,  there  are currently  62  authorized                                                                    
     resellers  on   contract  to  provide   cloud  solution                                                                    
     services  for States  and  other  public agencies.  The                                                                    
     vendor  we selected  was  SHI,  who currently  provides                                                                    
     other Microsoft  licenses and services to  the State of                                                                    
     The  selection  of  Microsoft  Azure  for  our  current                                                                    
     migration effort  was based on several  factors. From a                                                                    
     technical standpoint  Azure is  a natural  choice. Much                                                                    
     of  our current  infrastructure  consists of  Microsoft                                                                  
     Windows   servers   and    Microsoft   SQL   databases.                                                                  
     Leveraging   Azure  saves   us   significant  cost   on                                                                  
     licensing  for  migrated   servers  and  databases  and                                                                  
     dovetails  well with  our  current  environment from  a                                                                    
     developmental tool perspective.                                                                                            
3:06:37 PM                                                                                                                    
CO-CHAIR FIELDS asked whether there are other entities with                                                                     
[Microsoft Corporation] Windows that use cloud services from                                                                    
other providers.                                                                                                                
MR. B. SMITH responded that he does not know of any specific                                                                    
instances of the combination of services that other entities                                                                    
CO-CHAIR FIELDS suggested that from a technical perspective, one                                                                
could have Windows computers and store data on an Amazon or                                                                     
Google cloud.                                                                                                                   
MR. B. SMITH answered that it  is technically possible.  He said,                                                               
"Where the  significance comes  into play  is ...  whenever there                                                               
are  differences  like   that,  you  quite  often   have  to  use                                                               
additional layers of software for  compatibility, so it increases                                                               
cost, complexity, and adds potential  breakpoints."  He mentioned                                                               
that he  will discuss  going to  a hybrid  cloud environment  - a                                                               
situation  in which  potential multiple  public vendors  would be                                                               
MR. B. SMITH continued to  paraphrase from his written statement,                                                               
which read:                                                                                                                     
     We  also conducted  an  independent  assessment of  our                                                                    
     readiness for  Azure migration, which included  a total                                                                    
     cost of ownership analysis based  on our current server                                                                    
     volume  and use.  The assessment  projected our  server                                                                    
     use and  right sizing into the  Azure pricing structure                                                                    
     to provide an anticipated cost and savings level.                                                                          
     An increased  focus on cloud computing  also produces a                                                                  
     skill lift  for State of Alaska  information technology                                                                  
     professionals.  The  use  of a  hybrid  cloud  approach                                                                  
     allows professional growth  and skill development among                                                                    
     the  State  of Alaska  workforce.  It  is important  to                                                                  
     understand   that   our    cloud   migration   involves                                                                  
     outsourcing the location of  physical assets, NOT jobs.                                                                  
     Our  IT  professionals  will  continue  to  manage  and                                                                    
     maintain our servers  much as they do  today; they will                                                                    
     develop  a  skillset  in  cloud  storage,  application,                                                                    
     networking, and  management solutions. We  have secured                                                                    
     a series of 32 technical  courses that will be provided                                                                    
     by Microsoft  at no  cost to  the state.  These courses                                                                  
     range  from cloud  fundamentals  to advanced  technical                                                                    
     skills  and  offer  the  opportunity  for  professional                                                                    
     certification  testing at  no  cost  to our  employees.                                                                  
     Approximately  100  State   of  Alaska  employees  have                                                                    
     already  taken  advantage  of   classes  and  more  are                                                                    
     scheduled.  In   addition  to  these   formal  classes,                                                                    
     Microsoft   Consulting  Services   will  be   providing                                                                    
     initial project  support through  a temporary,  no cost                                                                  
     engagement  and  helping  the  State  of  Alaska  build                                                                
     capability  within  our  teams  to  continue  migration                                                                  
     beyond  the  initial  effort   and  provide  long  term                                                                    
     management of our hybrid cloud environment.                                                                                
     Through  the  Alaska  Administrative  Productivity  and                                                                    
     Excellence,  or   AAPEX  project,  as  well   as  other                                                                    
     independent  assessments, it  has been  documented that                                                                    
     our  statewide  information technology  environment  is                                                                    
     too complex and dated to  provide the services that our                                                                    
     customers expect with the resources we have.                                                                               
     We   owe  Alaskans   more.  We   owe  our   information                                                                  
     technology professionals more.                                                                                           
     The cloud migration, in tandem  with the AAPEX project,                                                                    
     will  enable   us  to   gain  efficiencies   and  focus                                                                    
     resources   to   provide   a   modern   and   effective                                                                    
     information technology environment.                                                                                        
     Thank you  again for the  opportunity to  appear before                                                                    
     you. We look forward to answering your questions.                                                                          
3:09:25 PM                                                                                                                    
CO-CHAIR KREISS-TOMKINS  asked for  greater detail on  the vendor                                                               
and its relationship to Microsoft.                                                                                              
MR.  B.  SMITH replied  that  Microsoft  does not  actually  sell                                                               
enterprise  agreements (EA)  directly  to customers;  they use  a                                                               
reseller model.   All  the Microsoft  EAs owned  by the  State of                                                               
Alaska  are through  a reseller  -  Software House  International                                                               
(SHI).   Other companies have  been used  by the State  with poor                                                               
results; SHI has  been used for several years  with good results.                                                               
He confirmed  that SHI's role  is like  that of a  car dealership                                                               
offering different options to meet customer needs.                                                                              
REPRESENTATIVE  HOPKINS  asked  how  much  of  the  State's  data                                                               
storage would  be shifted  to the cloud  under this  proposal and                                                               
what would be the end goal.                                                                                                     
MR. B. SMITH  answered that he does  not have a firm  answer.  He                                                               
stated that  if the  State wants  to take  full advantage  of the                                                               
cloud  environment, it  must be  very careful  about what  is put                                                               
into the cloud and the way it  is put there.  Microsoft Azure has                                                               
several  different  variations:   under  some  variations, it  is                                                               
appropriate for  the State to  place a  server into the  cloud as                                                               
is; under  others, it is  appropriate to reprogram the  server to                                                               
take advantage  of tools that  exist within the cloud  that don't                                                               
exist in the  current platform.  He added that  as the department                                                               
puts together the project, Microsoft  Consulting Services - which                                                               
has a great deal of experience  with such migrations - will offer                                                               
its expertise  to do  another "deeper  dive" assessment  of State                                                               
data  and to  determine  what  to put  into  the  cloud, in  what                                                               
sequence, and  what format, to  maximize savings.   He maintained                                                               
that what  the department  does not  want to do  is to  just lift                                                               
data off  servers and put it  into the cloud and  "call it good,"                                                               
because there are  applications that are not  appropriate for the                                                               
cloud or  as cost effective  in the cloud.   He offered  that the                                                               
independent assessment  that was  done -  looking at  the State's                                                               
cloud  readiness  -  identified  that about  94  percent  of  the                                                               
State's production  servers were  available to be  transferred to                                                               
the cloud.   He  mentioned that  the assessment  did not  look at                                                               
storage assets,  but at production servers  with applications and                                                               
computing functions.   He said, "Our in-state  is not predefined,                                                               
but  I  would  fully  expect  that   we  end  up  with  a  hybrid                                                               
environment where we have a  public cloud presence, we have cloud                                                               
as we  do today in  our data center, and  that we also  have some                                                               
on-premise functions  depending what  the requirements are."   He                                                               
concluded   by  saying   that  the   assessment  identified   the                                                               
possibilities, but it is up to  the due diligence of the State to                                                               
determine what should [migrate to  the cloud] and the appropriate                                                               
3:14:07 PM                                                                                                                    
REPRESENTATIVE  HOPKINS  asked  whether the  day-to-day  computer                                                               
work of State agencies and  the Alaska State Legislature would be                                                               
shifted to the cloud.                                                                                                           
MR.  B.  SMITH  responded  that  it  depends  on  the  individual                                                               
applications and  the appropriate platforms.   He maintained that                                                               
the result  would be a mix:   cloud-based applications -  such as                                                               
the executive  branch Microsoft office  suite; State  data center                                                               
applications  in   a  private   cloud  -   such  as   the  Oracle                                                               
[Corporation] business applications,  and on-premise environments                                                               
elsewhere; it would be transparent to the users.                                                                                
CO-CHAIR FIELDS  asked whether the  data currently on  the Oracle                                                               
cloud is  shifting to the Azure  cloud or whether there  would be                                                               
multiple cloud platforms as new data shifts to Azure.                                                                           
MR.  B.  SMITH replied  that  he  doesn't anticipate  the  Oracle                                                               
applications  shifting to  the cloud,  as they  are appropriately                                                               
3:15:52 PM                                                                                                                    
NEIL  SMITH, Deputy  Chief Information  Officer (CIO),  Office of                                                               
Information  Technology,  Department   of  Administration  (DOA),                                                               
confirmed that end users would not notice a difference.                                                                         
REPRESENTATIVE HOPKINS  asked about  accessing data in  the event                                                               
of an earthquake or other  disaster that severs the [fiber-optic]                                                               
cable that connects Alaska to the Lower 48.                                                                                     
MR. B. SMITH  answered that it is incumbent on  the department as                                                               
it  designs  the  [information technology  (IT)]  environment  to                                                               
ensure appropriate disaster recovery;  that includes the undersea                                                               
cable  that  will  be  laid  in   the  next  few  years  and  the                                                               
terrestrial link.  He said that  access continues to grow, but it                                                               
is the current  access that will be considered  in the assessment                                                               
to determine the  design of the platform.  He  said, "We will not                                                               
be throwing  data into the  cloud in another location  that needs                                                               
to  have  a  presence  here  in Alaska."    The  assessment  will                                                               
identify  critical functions  and disaster  recovery options  and                                                               
ensure appropriate access to critical infrastructure.                                                                           
CO-CHAIR FIELDS  asked for  comment on latency  in terms  of data                                                               
transmission from the Azure cloud.                                                                                              
MR.  B.  SMITH  replied  that  the Azure  cloud  data  center  is                                                               
worldwide;  the  State's  focus  would  be  the  northwest  area,                                                               
therefore, Washington  or Portland,  Oregon; the  exception would                                                               
be the more secure functions, which would reside in Arizona.                                                                    
3:17:53 PM                                                                                                                    
MR. N.  SMITH defined latency  as the time  it takes for  data to                                                               
travel;  therefore, servers  in the  Lower 48  would add  time to                                                               
data transfer.   He  offered that  some applications  handle that                                                               
distance better  than others; part  of the assessment will  be to                                                               
determine  which   applications  can  handle  latency   better  -                                                               
[electronic  mail "email"]  is an  example.   He maintained  that                                                               
some data  needs to be in  Alaska on-premise; there is  an Oracle                                                               
cloud  technology  presence  in  the  State's  data  center  that                                                               
addresses latency,  and Azure has  similar technologies  - called                                                               
Edge  cloud -  which  bring  the equipment  closer  to Alaska  to                                                               
address latency.                                                                                                                
CO-CHAIR FIELDS  asked whether the  equipment is based  in Alaska                                                               
and whether that would improve  functionality when the data is in                                                               
the Lower 48.                                                                                                                   
MR.  N. SMITH  answered  that  it is  equipment  that resides  in                                                               
Alaska, is owned  by a cloud provider, and is  used just like any                                                               
cloud service.                                                                                                                  
REPRESENTATIVE VANCE asked whether  transition poses an increased                                                               
security risk.                                                                                                                  
MR. N.  SMITH answered, "Not  during transition times."   He said                                                               
that for  migration to Microsoft  Azure, connectivity  is through                                                               
dedicated circuits with in-transit encryption.                                                                                  
REPRESENTATIVE  VANCE  asked  whether   migration  to  the  cloud                                                               
provides increased security, or whether  the State is already "at                                                               
the top of the line" in security for its systems.                                                                               
MR.  B. SMITH  maintained that  there is  always opportunity  for                                                               
improvement in security; however,  with the Microsoft Azure cloud                                                               
environment,  there   are  several  types  of   engagements,  and                                                               
depending on  the type  of engagement,  there is  shared security                                                               
responsibility with  the provider.   He  maintained that  this is                                                               
true for  all cloud environments.   He said that the  State still                                                               
has  a  significant cloud  security  responsibility  in terms  of                                                               
developing workflows  and implementing, managing,  and monitoring                                                               
processes; however,  the security  of the  hardware would  now be                                                               
Microsoft's  responsibility.   One  of  the  critical aspects  is                                                               
Microsoft's federally compliant -  "FedRAMP" - certifications for                                                               
its datasets.   The State  does not  have to worry  about whether                                                               
the servers on  which its data resides are patched  to the latest                                                               
security level; but it does have  to worry about the Alaska "side                                                               
of the  equation."  He  gave an example:   Alaska could  have the                                                               
best vault  in the world, but  if it leaves the  front door open,                                                               
it's in trouble.  He maintained  that migration to the cloud does                                                               
not take away the State's  security responsibility, but it allows                                                               
the  department to  focus its  security  responsibilities on  the                                                               
processes,  the front-end,  and  the management  of entering  and                                                               
extracting data.   The State  will also be monitoring  the shared                                                               
security responsibility with Microsoft.                                                                                         
3:22:36 PM                                                                                                                    
CO-CHAIR  FIELDS asked  for a  definition of  public and  private                                                               
MR. B. SMITH  answered that public cloud means that  the cloud is                                                               
owned by  a third party, but  that does not mean  there is access                                                               
by  another entity;  private  cloud means  that  Alaska owns  the                                                               
infrastructure,  but it  is  configured  in such  a  way that  it                                                               
behaves  like  a cloud  environment.    The department's  overall                                                               
strategy, as  it collapses servers  into either the cloud  or the                                                               
State  data centers,  is  to develop  and  enhance private  cloud                                                               
structures to get the functional  benefits of a cloud while still                                                               
residing on State equipment.                                                                                                    
CO-CHAIR FIELDS  asked for  confirmation that  DOA has  a private                                                               
cloud in Alaska  on which it stores data  from multiple locations                                                               
on State equipment.                                                                                                             
MR. B. SMITH concurred.                                                                                                         
CO-CHAIR FIELDS  asked for  comment on how  the State  moved from                                                               
on-premises  to on-premises  with  the "VMware,"  how it  changed                                                               
server utilization, and  how much data is in  the State's private                                                               
cloud versus on-premises.                                                                                                       
MR. N. SMITH  replied that in 2010, the State  had one server for                                                               
every  eight  State  of Alaska  employees;  they  were  primarily                                                               
physical servers.  He stated  that the process for "virtualizing"                                                               
the servers consists of "taking  a picture" of a physical machine                                                               
and  operating it  in  the  virtual machine.    Data is  migrated                                                               
seamlessly with very little down  time, and State departments can                                                               
share infrastructure  and hardware.   He said  that in  2015, the                                                               
State  consolidated  much  of its  data  storage;  therefore,  80                                                               
percent  of  State  data  is  in  shared-storage  infrastructure.                                                               
There  still is  considerable overhead,  which will  be addressed                                                               
when the  State migrates  to the  cloud; the  State will  pay for                                                               
only what it uses.                                                                                                              
CO-CHAIR FIELDS  asked for  the percentage of  data -  except for                                                               
[Microsoft]  Office  365,  which  is  already  on  a  cloud-based                                                               
platform  - that  is currently  on-premises versus  in a  private                                                               
cloud.  He asked the  relationship between VMware and the private                                                               
MR. N.  SMITH responded  that all  the departments  are primarily                                                               
using the VMware to create the virtual machines.                                                                                
CO-CHAIR FIELDS asked whether that  was true for data on-premises                                                               
as well as the State-managed private cloud.                                                                                     
MR.  N.  SMITH  answered  correct.    He  added  that  "lines  of                                                               
business" are using VMware for  their individual servers, and the                                                               
State is  trying to collapse  servers onto  shared infrastructure                                                               
as well.                                                                                                                        
3:26:55 PM                                                                                                                    
CO-CHAIR  FIELDS   asked  whether   there  is  a   per-unit  cost                                                               
comparison  between the  various  clouds  - private,  [Microsoft]                                                               
AZURE, Google [LLC], Amazon [.com, Inc.].                                                                                       
MR. B.  SMITH answered that the  Microsoft AZURE cloud is  a very                                                               
good fit for  Alaska; clouds aren't a commodity  feature, as they                                                               
each  have  their  strengths  and   weaknesses.    The  cost  for                                                               
Microsoft  AZURE  is  part of  the  independent  assessment;  the                                                               
department is  comfortable with  that cost  as it  moves forward;                                                               
the caveat is that the  assessment assumes a certain amount would                                                               
be moved to the  cloud.  He said that 94  percent of servers were                                                               
available and ready to migrate to  the cloud.  He stated that the                                                               
assessment estimated that  about 20 percent of  servers could not                                                               
be  migrated.    He  offered  that  the  State  has  had  several                                                               
independent  assessments;  all  have  come up  with  a  range  of                                                               
servers  statewide  between 2,800  and  3,100.   The  independent                                                               
cloud-readiness  assessment  that  offered   the  total  cost  of                                                               
ownership  price  of  moving  to the  cloud  assumed  that  1,941                                                               
servers would be moved.  Moving  all the servers would not be the                                                               
best effective use of the cloud.                                                                                                
3:29:06 PM                                                                                                                    
MR. N.  SMITH, in response  to Representative  Hopkins's question                                                               
about the State's total amount of  data, cited a 2015 study which                                                               
reported at least 12 petabytes.                                                                                                 
CO-CHAIR  FIELDS asked  whether it  would be  accurate to  assume                                                               
that  a little  more  than  half of  the  State's  data would  be                                                               
migrated to the cloud.                                                                                                          
MR. B.  SMITH replied  that he  estimates the  amount to  be less                                                               
because storage  was not factored  into the assessment,  which is                                                               
considerable.   He said that  one of the key  cost-saving drivers                                                               
is that  the State would only  pay for storage it  uses; whereas,                                                               
capital costs  for hardware  requires the  State buy  "the entire                                                               
machine."    He stated  that  the  assessment considered  "right-                                                               
sizing"  and  indicated  that  over 90  percent  of  the  State's                                                               
servers  were  overcapacity  - excess  capacity  of  almost  1.75                                                               
petabytes.  He  added that initially, less than half  of the data                                                               
would  be migrated  to the  cloud,  but as  the department  moves                                                               
forward, it  will be able  to assess better  what needs to  go in                                                               
the right format.                                                                                                               
3:31:36 PM                                                                                                                    
REPRESENTATIVE  VANCE referred  to page  3 of  the DOA  document,                                                               
entitled  "SOA  Server  Data  and  Cloud  Migration  Response  to                                                               
Request for  Information House State  Affairs Committee  March 5,                                                               
2020,"  included  in  the  committee packet,  which  read:    "Of                                                               
approximately 1,960  servers used for rate  building, almost half                                                               
(918) exist in the departments  themselves and are not managed by                                                               
OIT."   She asked for an  explanation of why the  servers are not                                                               
all managed  by OIT,  and whether the  department is  planning to                                                               
transition to management of servers.                                                                                            
MR. B.  SMITH answered  that OIT  does not  manage all  the State                                                               
servers  and data.   He  added that  he cannot  speak to  all the                                                               
details  following  implementation  of the  Administrative  Order                                                               
(AO) No. 284; however, currently  OIT has responsibility for most                                                               
of  the   commodity  services,  and   those  services   are  used                                                               
statewide.    Part of  that  responsibility  is making  available                                                               
server management and part is  making available data center space                                                               
for storage;  however, it is  up to the departments  whether they                                                               
want to take advantage of what  OIT is offering, and several have                                                               
not made that  move.  He mentioned that the  AAPEX initiative has                                                               
determined  the   process  ahead:    the   assessment  phase  has                                                               
occurred; OIT and the departments  are working together to define                                                               
the  projects that  need  to  be put  in  place  and executed  to                                                               
improve  statewide   IT  maturity;  and  the   projects  will  be                                                               
reviewed, approved, and  executed.  He maintained that  he is not                                                               
certain  what  the  end  state  will be;  AO  No.  284  envisions                                                               
centralization; but it  needs to be done in a  manner that can be                                                               
supported  and  that meets  the  needs  of  the customers  -  the                                                               
REPRESENTATIVE VANCE asked for a  description of the achievements                                                               
expected through the 36-month contract.                                                                                         
MR. B.  SMITH answered  that the  EAs are  three-year agreements;                                                               
that is a  standard length; it is not  performance- or milestone-                                                               
based.  As costs were  evaluated, assumptions were made about the                                                               
levels of  migration over time.   He said that the  department is                                                               
confident that  the levels  are appropriate  and achievable.   He                                                               
said  that not  all applications  will  migrate to  the cloud  in                                                               
their  current   forms;  some  will  need   reprogramming  before                                                               
3:36:01 PM                                                                                                                    
CO-CHAIR  FIELDS asked  whether in  the case  of moving  a VMware                                                               
package of  data onto the  cloud, the  State would still  use the                                                               
VMware vendor.  He asked  whether the functionality of the VMware                                                               
would migrate to Microsoft.                                                                                                     
MR. N. SMITH  answered that the State would no  longer go through                                                               
a VMware reseller but through Microsoft under the EA agreement.                                                                 
CO-CHAIR FIELDS asked  whether it is an equivalent  product but a                                                               
different company.                                                                                                              
MR. N.  SMITH answered that it  is an equivalent product  and the                                                               
same license but purchased through Microsoft.                                                                                   
MR.  B. SMITH  added that  one of  the key  aspects of  the cloud                                                               
migration design  hinged around  maintaining VMware  presence; it                                                               
is  the VMware  presence  that  gives the  State  the ability  to                                                               
change to another cloud provider later, if desired.                                                                             
CO-CHAIR FIELDS asked whether  the different cloud-based services                                                               
have different  contract structures with respect  to switching to                                                               
another cloud later.                                                                                                            
MR. N.  SMITH replied  that OIT has  had lengthy  "exit strategy"                                                               
discussions.  He  mentioned that since VMware tools  are used in-                                                               
house currently,  the IT  staff are  already familiar  with them.                                                               
He added that  those same tools would allow the  State to migrate                                                               
servers back to on-premise or to  another cloud.  He offered that                                                               
billing under other  cloud environments can be  very complex; the                                                               
State gets  significant discounts  with Microsoft and  AZURE both                                                               
for Windows Server and [Microsoft] SQL Server.                                                                                  
3:39:59 PM                                                                                                                    
REPRESENTATIVE   HOPKINS  asked   how   migration  would   affect                                                               
retaining State [IT] jobs.                                                                                                      
MR. B. SMITH  relayed that currently State  IT professionals work                                                               
on virtual  machines.  He  maintained that with the  cloud, there                                                               
would be  no difference.   The workers would continue  to program                                                               
and manage  the State's servers,  and in addition, would  be able                                                               
to take advantage of the tools  that are inherent in the cloud to                                                               
create the most efficient program possible.                                                                                     
3:42:13 PM                                                                                                                    
REPRESENTATIVE HOPKINS asked  whether there would ever  be a need                                                               
to wait for a Microsoft worker to come to Alaska for repairs.                                                                   
MR.  N. SMITH  replied  that the  migration includes  determining                                                               
disaster  recovery options;  there are  replications of  servers;                                                               
there are  many data centers  located in various  locations; very                                                               
little  downtime would  be expected  for locating  a copy  of the                                                               
server and continuing work.                                                                                                     
REPRESENTATIVE HOPKINS asked whether there  would be any need for                                                               
a Microsoft  technician or programmer  to come to Alaska  to work                                                               
on something under the contract.                                                                                                
3:45:26 PM                                                                                                                    
MR. B.  SMITH responded  that for  what the  State puts  into the                                                               
AZURE  cloud,   the  answer  is   no.    Under  a   hybrid  cloud                                                               
environment,  the  State would  still  have  Windows servers  on-                                                               
premise.   If something  happened to those  servers, it  would be                                                               
outside the cloud agreement.                                                                                                    
CO-CHAIR  FIELDS  referred to  the  "Microsoft  Server and  Cloud                                                               
Enrollment"  agreement, included  in  the  committee packet,  and                                                               
asked  for more  detail on  the nature  of the  contract and  the                                                               
MR.  B.  SMITH replied  that  the  EA  includes a  commitment  to                                                               
Microsoft that the  State will consume $15 million  in 36 months.                                                               
That means  that the State  will be  billed monthly based  on the                                                               
resources consumed  on the  cloud; if after  36 months  the State                                                               
has  not  consumed that  amount,  it  will  be invoiced  for  the                                                               
balance and  returned a  credit good  for 12  months.   He stated                                                               
that OIT has mapped out the  State's usage and expects to migrate                                                               
enough  to cover  the commitment.    He said  that regarding  the                                                               
Microsoft  consulting  services  agreement,  there  are  services                                                               
listed with  pricing for  a total of  $1,508 million;  the amount                                                               
represents the value of the services.   There is a stipulation on                                                               
the document  that says  that Alaska will  be billed  nothing for                                                               
the  services; the  cost is  covered by  a 10  percent incentive-                                                               
based credit from  Microsoft.  Since the State is  not mature and                                                               
self-sustained in its use of  the cloud environment, it needs the                                                               
expertise  from   Microsoft  to  help   the  State  set   up  the                                                               
environment properly  and make  good choices as  it moves  to the                                                               
cloud.    State  employees  will   receive  formal  training  and                                                               
training side-by-side with Microsoft consultants.                                                                               
3:49:39 PM                                                                                                                    
REPRESENTATIVE  HOPKINS asked  for  confirmation  that the  State                                                               
pays for  the $15 million regardless  of whether it is  used, and                                                               
the training courses would be included in the $15 million.                                                                      
MR. B. SMITH  responded yes to both questions.   He described the                                                               
series of trainings for staff.                                                                                                  
CO-CHAIR KREISS-TOMKINS asked whether  through this agreement and                                                               
migration, the State of Alaska would  be dependent on the path it                                                               
has taken and at risk of much increased costs in the future.                                                                    
MR. B. SMITH mentioned that issue being a key factor in set-up.                                                                 
MR. N.  SMITH responded that  the State  is building in  tools to                                                               
allow flexibility, in anticipation of  that possibility.  He said                                                               
that there  are metered and  unmetered circuits, which  the State                                                               
must consider for financial efficacy.                                                                                           
3:52:43 PM                                                                                                                    
CO-CHAIR  KREISS-TOMKINS asked  for an  explanation of  "metered"                                                               
and "unmetered" circuits.  He restated  his question:  Is there a                                                               
path dependency, as  the State enters the contract  and goes down                                                               
the path with AZURE?                                                                                                            
MR. B.  SMITH answered that OIT  is working to ensure  that there                                                               
is not;  increasing the State's maturity  level and understanding                                                               
is important;  Microsoft will  assist with  that.   He emphasized                                                               
that  OIT  is  absolutely  considering  the  end  state  and  the                                                               
possibility of  a better  option revealing  itself in  36 months.                                                               
He  explained that  metered and  unmetered  refers to  "unlimited                                                               
path"  versus "charged  by use";  unmetered  is cheaper  up to  a                                                               
certain volume.  He reiterated  the importance of keeping options                                                               
open to make the best choices.                                                                                                  
CO-CHAIR  KREISS-TOMKINS restated  the  answer:   OIT is  working                                                               
hard  to  avoid  a  path  dependency, but  there  is  always  the                                                               
possibility of one.                                                                                                             
MR. B. SMITH said that it depends  on how OIT sets up the system;                                                               
avoiding a path dependency is  within OIT's control; and staff is                                                               
working hard to make the right choices.                                                                                         
3:55:11 PM                                                                                                                    
CO-CHAIR KREISS-TOMKINS  asked for  the yearly savings  ten years                                                               
from now, when cloud migration is fully realized.                                                                               
MR.  B.  SMITH replied  that  the  way  IT expenses  are  tracked                                                               
currently, the  State does not  have a great reference  point for                                                               
what  it  spends  today.    He offered  that  accounting  for  IT                                                               
spending across  the State is part  of the AAPEX initiative.   He                                                               
said that the third-party independent  assessment looked at total                                                               
cost  of ownership  for  the 1,941  servers  based upon  industry                                                               
standard rates and compared it with  the cost of the same servers                                                               
after  migration to  the AZURE  environment.   That study  showed                                                               
significant cost reduction.   The State has over  60 data centers                                                               
around the  state; they belong  to so many different  agencies at                                                               
so  many  locations that  the  cost  of  power  is unknown.    He                                                               
maintained  that  there are  gaps  in  information regarding  the                                                               
total  cost  of  ownership,  which includes  the  equipment,  the                                                               
monthly rate,  the software, the  heating and cooling,  and other                                                               
elements.  The AAPEX project will provide that information.                                                                     
CO-CHAIR KREISS-TOMKINS asked for a guess on the cost reduction.                                                                
MR. B. SMITH  stated that the current cost of  the 1,941 servers,                                                               
based  on the  third-party  independent assessment's  calculation                                                               
using industry  standard rates,  is estimated  to be  $45 million                                                               
annually not including labor.   The estimate for the same servers                                                               
moved to the cloud under the  AZURE environment - reduced in size                                                               
to only what  is needed - is  $6 million.  The  reduction in cost                                                               
would be  about $39 million.   He  reiterated that labor  was not                                                               
factored into  the calculations.   He said that OIT  believes the                                                               
cost  of the  State's IT  to  be approximately  $250 million  per                                                               
year; subtracting the $83 million  cost of labor, the independent                                                               
assessment  calculated the  savings to  be about  23 percent.   A                                                               
Gartner [Inc.,  an IT research and  consultancy company] analysis                                                               
indicated  that  the  average   savings  after  a  massive  cloud                                                               
migration  is about  21 percent,  which is  in line  with the  23                                                               
percent   calculated   through    the   independent   assessment.                                                               
Commissioner Kelly Tshibaka (DOA)  has consulted with other third                                                               
parties who have concurred with  those percentages.  Mr. B. Smith                                                               
reminded  the committee  that  the transition  time  cost is  not                                                               
factored into the calculation, only the cost after migration.                                                                   
4:00:21 PM                                                                                                                    
REPRESENTATIVE   VANCE   offered    her   support   for   finding                                                               
efficiencies, better services, and savings.                                                                                     
REPRESENTATIVE STORY asked for  information on communication with                                                               
staff on the changes.                                                                                                           
MR. B.  SMITH answered that  transparent communication is  one of                                                               
his  priorities and  one shared  by Commissioner  Tshibaka.   The                                                               
commissioner has held  monthly townhalls with DOA.   Mr. B. Smith                                                               
sends out all-IT informational updates  every two to three weeks.                                                               
Additionally, as part of the  AAPEX initiative, OIT has held five                                                               
to six briefings and information  sessions on the assessment.  As                                                               
the  cloud  migration  moves  forward, OIT  is  working  hard  to                                                               
publish  key performance  indicators and  progress reports.   The                                                               
department  continues  to  improve transparency  and  information                                                               
sharing; it  understands workforce  concerns; and  it anticipates                                                               
the time  when the State's efficiency,  performance, and customer                                                               
satisfaction is so much greater  than currently and can move into                                                               
high  level  IT  functions,  artificial  intelligence,  and  data                                                               
REPRESENTATIVE  STORY  asked for  confirmation  that  there is  a                                                               
feedback link for staff.                                                                                                        
MR.  B. SMITH  replied that  MR. N.  Smith hosts  weekly meetings                                                               
with OIT officers and other "thought leaders."                                                                                  
CO-CHAIR  KREISS-TOMKINS  agreed  with  the  importance  of  more                                                               
communication with staff.                                                                                                       
         HB 233-ELECTRONIC DISPLAY OF REQUIRED DOCUMENTS                                                                    
4:06:26 PM                                                                                                                    
CO-CHAIR  KREISS-TOMKINS   announced  that  the  next   order  of                                                               
business would  be HOUSE BILL  NO. 233,  "An Act relating  to the                                                               
display of documents on an electronic device."                                                                                  
4:06:50 PM                                                                                                                    
REPRESENTATIVE  VANCE  presented  HB  233  as  prime  sponsor  by                                                               
paraphrasing from the sponsor statement, which read:                                                                            
     We as consumers enjoy the  benefits of having access to                                                                    
     information  in the  palm  of our  hand.  The State  of                                                                    
     Alaska recognizes the demand  for mobile device use and                                                                    
     is  currently  in  the process  of  allowing  users  to                                                                    
     provide  proof  of  state required  documents  such  as                                                                    
     licenses, permits and insurance  to a peace officer via                                                                    
     mobile device.                                                                                                             
     We  Alaskans   also  treasure  our  privacy   and  have                                                                    
     enshrined that  right in  our state  constitution under                                                                    
     Article 1  sec. 22 Right  to Privacy- The right  of the                                                                    
     people  to  privacy  is recognized  and  shall  not  be                                                                    
     HB  233  safeguards  the  privacy  of  individuals  who                                                                    
     display any  state required document to  peace officers                                                                    
     by  ensuring  that  displaying   proof  of  a  required                                                                    
     document  does  not  constitute  consent  for  a  peace                                                                    
     officer  to access  other  contents  of the  electronic                                                                    
     In laymen's  terms, if a  Wildlife Trooper asks  to see                                                                    
     your   fishing   license,    the   Trooper   does   not                                                                    
     automatically have  a right to search  other content on                                                                    
     your device.  You must give permission  for the Trooper                                                                    
     to view anything besides the license required by law.                                                                      
     The two  examples of this already  specified in statute                                                                    
     are in  AS.28.22.019 (d) pertaining  to the  display of                                                                    
     proof  of motor  vehicle  liability  insurance, and  AS                                                                    
     03.05.078  (b)  pertaining  to   display  of  proof  of                                                                    
     registration when transporting industrial hemp.                                                                            
REPRESENTATIVE  VANCE relayed  that as  the state  modernizes its                                                               
practices  allowing  documents  to  be viewed  on  an  electronic                                                               
device, the  proposed legislation  would specify  those documents                                                               
allowed by law to be displayed on a device.                                                                                     
4:10:16 PM                                                                                                                    
REPRESENTATIVE STORY asked why  the protections under "reasonable                                                               
search and seizure" laws would not cover these instances.                                                                       
4:11:07 PM                                                                                                                    
JANET  OGAN,  Staff,  Representative Sarah  Vance,  Alaska  State                                                               
Legislature, agreed  that those  protections exist;  however, the                                                               
proposed  legislation is  offered to  proactively address  future                                                               
circumstances   regarding  documents   displayed  by   electronic                                                               
REPRESENTATIVE STORY  asked whether  the laws about  warrants for                                                               
search and seizure do not mention electronic devices.                                                                           
MS. OGAN answered, "Not that I'm aware of."                                                                                     
CO-CHAIR  KREISS-TOMKINS offered  his  support  for the  proposed                                                               
legislation and  added that knowing  definitively where  the line                                                               
is  in terms  of  the existing  protections  for civil  liberties                                                               
would  be helpful  for reference.    He mentioned  that there  is                                                               
currently a baseline level of  civil liberty protection and asked                                                               
what marginal new protection would be offered under HB 233.                                                                     
REPRESENTATIVE  VANCE  stated  that  a peace  officer  must  have                                                               
probable cause or come with  a warrant.  The proposed legislation                                                               
would provide  Alaska residents  the assurance  that they  are in                                                               
control  of  the  information  on their  devices  and  must  give                                                               
consent, rather than the officer  being in control.  People often                                                               
feel vulnerable  when presenting information to  a peace officer.                                                               
With a paper license, only  that information is available; with a                                                               
mobile  device,  there  is  a much  greater  amount  of  personal                                                               
information.    She said,  "It  does  provide that  assurance  to                                                               
Alaskans that your privacy and  your right to your information is                                                               
in your hands."                                                                                                                 
CO-CHAIR KREISS-TOMKINS  remarked that beyond the  "letter of the                                                               
law," HB 233 would offer  citizens confidence through reasserting                                                               
and emphasizing their rights.                                                                                                   
REPRESENTATIVE HOPKINS asked for any  other documents that can be                                                               
displayed   electronically,  outside   of  hunting   and  fishing                                                               
REPRESENTATIVE VANCE  responded that the only  other item allowed                                                               
to  be displayed  electronically is  [proof of]  registration for                                                               
transporting  industrial   hemp.    Over  the   past  few  years,                                                               
automobile insurance  has moved to  being online.  She  said that                                                               
instead  of  specifying  each instance  of  allowable  electronic                                                               
documents, the proposed legislation was drafted to encompass                                                                    
all  allowable  documents  so  that none  would  "fall  into  the                                                               
cracks" as Alaska moves into the  future.  She mentioned that the                                                               
Alaska Department  of Fish  & Game (ADF&G)  is attempting  to put                                                               
more licenses  and permits online  through an  application (app).                                                               
Many  Alaskans  are  looking  forward to  using  that  means  for                                                               
presenting documents.                                                                                                           
[HB 233 was held over.]                                                                                                         
         HB 264-PROOF OF INSURANCE: UNSATISFIED JUDGMENTS                                                                   
4:16:34 PM                                                                                                                    
CO-CHAIR  KREISS-TOMKINS   announced  that  the  next   order  of                                                               
business would be  HOUSE BILL NO. 264, "An Act  relating to proof                                                               
of   financial  responsibility   after   certain  motor   vehicle                                                               
4:17:08 PM                                                                                                                    
REID  HARRIS,  Staff,   Representative  Jonathan  Kreiss-Tomkins,                                                               
Alaska  State Legislature,  on behalf  of Representative  Kreiss-                                                               
Tomkins, prime sponsor  of HB 264, relayed that  HB 264 addresses                                                               
the  statute on  unsatisfied judgements  [AS 28.20.330(b)];  upon                                                               
receiving an  unsatisfied judgement, one  must obtain a  proof of                                                               
financial responsibility (POFR) - commonly  referred to as an SR-                                                               
22 certificate.   He pointed out that an SR-22  is not insurance,                                                               
but a  certificate that  states that  a high-risk  individual has                                                               
insurance.   He defined  that a  high-risk individual  is someone                                                               
with  a "driving  under  the influence  (DUI)"  conviction or  an                                                               
"unsatisfied  judgement."     An   unsatisfied  judgement   is  a                                                               
judgement  issued  against  someone   who  had  a  motor  vehicle                                                               
accident  causing death,  bodily  injury, or  damage to  property                                                               
over $501, and  who did not pay for damages.    Subsequently, the                                                               
person's license  is revoked  by the  Division of  Motor Vehicles                                                               
(DMV) [Department  of Administration  (DOA)] and is  not returned                                                               
unless and until the judgement is staid or satisfied.                                                                           
MR. HARRIS turned the committee's  attention to the document from                                                               
DMV,   included  in   the  committee   packet,  entitled   "SR-22                                                               
Insurance," to review the time requirements  for an SR-22:  for a                                                               
first offense  driving while  intoxicated (DWI),  the requirement                                                               
is 5 years; a  second offense is 10 years; a  third offense is 20                                                               
years; a fourth  offense is a lifetime requirement.   In addition                                                               
to  a fourth  offense DWI,  just one  unsatisfied judgement  also                                                               
results in  the lifetime requirement.   He offered that  under HB
264, when  the judgement is  staid or satisfied, the  SR-22 would                                                               
be required for 3 years, not a lifetime.                                                                                        
MR.  HARRIS  referred  to  House   Bill  409  [introduced  during                                                               
Thirtieth   Alaska   State   Legislature,   (2017-2018)],   which                                                               
addressed unsatisfied  judgements and  DUIs was not  supported by                                                               
DOA.    The  proposed   legislation  only  addresses  unsatisfied                                                               
MR.  HARRIS  referred to  testimony  during  the presentation  on                                                               
"Alaska Rehabilitation  & Reentry"  [2/27/20 House  State Affairs                                                               
Standing Committee  meeting] in which the  testifier offered that                                                               
paying  for the  SR-22 was  very difficult  for someone  released                                                               
from prison and  struggling with many financial  challenges.  Mr.                                                               
Harris  relayed that  the Division  of  Insurance [Department  of                                                               
Commerce,  Community  &  Economic Development  (DCCED)]  provided                                                               
information  that the  SR-22  can  cost from  5-50  percent of  a                                                               
standard  premium.   The  testifier  stated  that he  was  paying                                                               
[$500]  per month  to  retain  a driver's  license.   Mr.  Harris                                                               
expressed  his belief  that  the  requirement targets  low-income                                                               
people  and people  who are  trying to  improve themselves.   The                                                               
intent of the proposed legislation is to remedy that.                                                                           
4:22:16 PM                                                                                                                    
REPRESENTATIVE VANCE asked why 3  years was chosen for the length                                                               
of time [an SR-22 would be required].                                                                                           
MR.  HARRIS responded  that 3  years was  arbitrarily chosen  but                                                               
seemed to represent an appropriate  length of time for someone to                                                               
prove he/she has "fixed" the mistake.                                                                                           
CO-CHAIR KREISS-TOMKINS expressed his  desire for the legislature                                                               
to  evaluate categorically  the value  that SR-22  offers to  the                                                               
public.   The  SR-22 laws  were  put into  statute before  Alaska                                                               
required  car insurance;  HB 264  offers a  temporary fix;  the 3                                                               
years is arbitrary.                                                                                                             
MR.  HARRIS   referred  to  the  Legislative   Research  Services                                                               
document,   dated  11/21/19   and   entitled  "SR-22   Automobile                                                               
Insurance Requirements,"  not included  in the  committee packet,                                                               
to describe the requirement put in place in [1959], which read:                                                                 
     The legislature  is concerned over  the rising  toll of                                                                    
     motor  vehicle accidents  and  the  suffering and  loss                                                                    
     thereby inflicted.  The legislature determines  that it                                                                    
     is a  matter of grave  concern that motorists  shall be                                                                    
     financially responsible for their negligent acts ...."                                                                     
MR. HARRIS added  that the state's mandatory  insurance laws were                                                               
enacted many years later.                                                                                                       
REPRESENTATIVE  HOPKINS  asked  whether SR-22  being  a  lifetime                                                               
requirement was enacted  under HB 49 [signed into  law 7/8/19] or                                                               
CO-CHAIR KREISS-TOMKINS  expressed his  understanding is  that HB
49 did  not address  the SR-22 requirements  but did  address the                                                               
reentrant's ability  to get back  a driver's license to  become a                                                               
productive citizen.                                                                                                             
4:26:47 PM                                                                                                                    
JOANN OLSEN, Interim Director, Division  of Motor Vehicles (DMV),                                                               
Department of  Administration (DOA),  responded that she  was not                                                               
familiar with HB 49.                                                                                                            
MR. HARRIS offered to follow up.                                                                                                
4:27:25 PM                                                                                                                    
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce,  Community &  Economic  Development (DCCED),  explained                                                               
that  an SR-22  filing is  a certificate  to the  state that  the                                                               
person has liability  insurance on the vehicle  he/she is driving                                                               
or to which the person has access.                                                                                              
CO-CHAIR KREISS-TOMKINS asked  for an explanation for  why an SR-                                                               
22 is needed when car insurance  is mandatory.  He opined that it                                                               
seems redundant.                                                                                                                
MS. WING-HEIER  answered that  she cannot  explain why  but knows                                                               
that when renewing  vehicle tags, a box  verifying insurance must                                                               
be  checked.     Similarly,   the  SR-22   serves  as   a  second                                                               
certification of  liability insurance  for an individual  with an                                                               
unsatisfied  judgement  or  with   the  violation  convictions  -                                                               
mentioned by Mr. Harris  - in order to drive or  have access to a                                                               
vehicle.  She defined "have access  to" as meaning a vehicle that                                                               
the person may  drive but not necessarily own; it  is the vehicle                                                               
itself that requires the SR-22.                                                                                                 
CO-CHAIR KREISS-TOMKINS  asked why the  SR-22 costs so  much when                                                               
premiums are paid  to the insurance company and  the SR-22 merely                                                               
verifies that the insurance policy is in place.                                                                                 
MS. WING-HEIER answered that part  of the reason is the violation                                                               
itself.  She  explained the other part as follows:   The division                                                               
looked at  23 insurance companies  in the  state and only  6 were                                                               
providing SR-22s  to insurers who  requested them.   The insurers                                                               
can charge rates based on a  driver's record; for a record with a                                                               
DUI or reckless driving, insurance will  cost more.  The SR-22 is                                                               
somewhat of a "scarlet letter"  indicating that there is a reason                                                               
the person has been asked to  keep a certificate on file with the                                                               
state; the  insurers are, therefore,  hesitant to  insure someone                                                               
with  an SR-22.    That person  may be  moved  to a  sub-standard                                                               
insurance  market  and  have  a   surcharge  in  addition.    The                                                               
surcharge is strictly for liability insurance but is applied to                                                                 
the premium's comprehension and collision coverages as well.                                                                    
CO-CHAIR KREISS-TOMKINS stated that HB 264 would be held over.                                                                  
                  HB 250-VOTER REGISTRATION AGE                                                                             
4:31:39 PM                                                                                                                    
CO-CHAIR KREISS-TOMKINS announced that the final order of                                                                       
business would be HOUSE BILL NO. 250, "An Act relating to voter                                                                 
preregistration for minors at least 16 years of age."                                                                           
4:31:56 PM                                                                                                                    
REPRESENTATIVE HOPKINS presented HB 250 as prime sponsor by                                                                     
paraphrasing from his written statement, which read:                                                                            
     Co-Chairs Kreiss-Tomkins and  Fields, fellow members of                                                                    
     the State  Affairs Committee  Committee, thank  you for                                                                    
     hearing this HB 250 today.                                                                                                 
     For   the   record,   my   name   is   Grier   Hopkins,                                                                    
     Representative for  House District  4, and I'd  like to                                                                    
     mention  that Amy  Gallaway, a  civics educator  out of                                                                    
     Fairbanks and  Alaska's Teacher of  the Year  is online                                                                    
     to answer any questions.                                                                                                   
     Thank you for the opportunity  to speak to you today on                                                                    
     this important  issue. I am  honored to sponsor  HB 250                                                                    
     as part of  ongoing efforts in the  legislature to take                                                                    
     a  detailed  look  at ways  to  improve  our  electoral                                                                    
     process, but also  bring a new focus to  how we prepare                                                                    
     young Alaskans  to become  active and  informed voters.                                                                    
     This  legislation was  inspired largely  by discussions                                                                    
     I've  had with  young  Alaskans,  local educators,  and                                                                    
     fellow legislators.                                                                                                        
     Fundamentally,  HB  250  is  about  increasing  access,                                                                    
     knowledge, and  participation in our democracy.  HB 250                                                                    
     would allow  young Alaskans who  are at least  16 years                                                                    
     old to  pre-register to  vote. It  does not  change the                                                                  
     current  legal age  for voting,  it simply  extends the                                                                  
     ability for young  Alaskans to voluntarily pre-register                                                                    
     to   vote   before   they   become   eligible   voters.                                                                    
     Additionally, this  bill does not affect  the automatic                                                                    
     voter registration  through the  PFD application  for a                                                                    
     few key reasons. The  automatic voter registration only                                                                    
     applies to  Alaskan citizens  who meet  the eligibility                                                                    
     requirements to be  able to vote. 16  and 17-year old's                                                                    
     cannot  legally   vote,  and  will  therefore   not  be                                                                    
     included  in the  automatic registration  if they  file                                                                    
     for their PFD. Through the  expansion of our statute to                                                                    
     include  citizens who  are 16  years old,  we create  a                                                                    
     longer period  of time where  young Alaskans  are aware                                                                    
     of the  rights they will  gain upon turning 18  and can                                                                    
     begin  to develop  the habits  of informed  and engaged                                                                    
     Moreover,    allowing   pre-registration    gives   our                                                                    
     teachers,  families,  and   communities  the  tools  to                                                                    
     develop  young  Alaskans  into informed  and  confident                                                                    
     voters. When students turn 16,  they have already begun                                                                    
     taking   government,  history,   and  civics   classes.                                                                    
     Providing   pre-registration   opportunities   in   the                                                                    
     classroom offers  real and tangible steps  for students                                                                    
     to  take   that  give   them  real   world  experience.                                                                    
     Additionally,  pre-registration is  increasingly common                                                                    
     across the nation,  with 23 states and  the District of                                                                    
     Columbia offering  some form of  preregistration before                                                                    
     an  individual  turn [sic]  18.  The  results in  these                                                                    
     places   have   shown   increases  in   younger   voter                                                                    
     participation  and  the  indicators of  beginning  long                                                                    
     term voting habits.                                                                                                        
4:34:50 PM                                                                                                                    
     For example, in Florida,  analysis of state voter files                                                                    
     indicates that  in 2008 pre-registrants were  4.7% more                                                                  
     likely  to vote  than those  who registered  after they                                                                    
     turned  eighteen  and  the number  of  preregistrations                                                                    
     went from  65,000 in  2004, to  nearly 78,000  in 2008.                                                                    
     Additionally,  a study  from Duke  University, by  John                                                                    
     Holbein and  D. Hillygus,  which is attached  on Basis,                                                                    
     found  that preregistration  increases the  probability                                                                    
     that young  voters will participate in  elections by an                                                                    
     average of 2 percentage  points to 13 percentage points                                                                    
     and has  similar impacts on  young Democrats  and young                                                                    
     Furthermore,  in  an   additional  study,  "Voter  Pre-                                                                    
     registration Programs    success of  preregistration is                                                                    
     maximized when election officials  and educators act as                                                                    
     partners. This is  why we have been  working with local                                                                    
     educators,    organizations,   and    stakeholders   to                                                                    
     determine the  best method to  approach this.  I'd like                                                                    
     to note that  we have received letters  of support from                                                                    
     Amy Gallaway,  a civics teacher  and Alaska  Teacher of                                                                    
     the  Year,  the  Alaska  Center  Education  Fund,  Kids                                                                    
     Voting  North   Alaska,  Native  Movement,   and  Maida                                                                    
     Buckley, the  2019 Governor's Arts &  Humanities Awards                                                                    
     and former educator.                                                                                                       
     I have  been going  back to my  high school  alma mater                                                                    
     for about  10 years  and every  year that  teacher asks                                                                    
     the class, "who here is  registered to vote?" Out of an                                                                    
     over 20  student class, only  a few raise  their hands.                                                                    
     HB 250  will allow  more of  those engaged  citizens to                                                                    
     raise their hands and participate in our democracy.                                                                        
     We have before us the  potential to proactively work to                                                                    
     engage young  Alaskans in a new  and innovative manner.                                                                    
     HB 250 empowers families,  communities and educators to                                                                    
     foster civic engagement from a  younger age, while also                                                                    
     adding an  additional opportunity to ensure  that every                                                                    
     citizen in Alaska is registered to vote.                                                                                   
     That concludes my  presentation and I will  be happy to                                                                    
     answer any questions the committee may have.                                                                               
4:37:53 PM                                                                                                                    
REPRESENTATIVE   STORY  asked   whether  Representative   Hopkins                                                               
considered  a bill  to allow  students to  vote at  age 16.   She                                                               
mentioned that  she has  heard interest  from students,  who have                                                               
stated that such  a law would encourage not just  the students to                                                               
vote more and talk about issues, but families as well.                                                                          
REPRESENTATIVE HOPKINS answered that  in some locations, 16-year-                                                               
olds may  vote in local  elections.   He expressed his  desire to                                                               
keep the  bill simple and  to utilize the approach  offered under                                                               
HB  250  to  encourage  dialogue   and  civic  engagement,  thus,                                                               
expanding  voter participation  for  state,  local, and  national                                                               
CO-CHAIR   KREISS-TOMKINS   offered   that   the   Alaska   State                                                               
Constitution states that the voting  age is 18; changing it would                                                               
require a constitutional amendment.                                                                                             
REPRESENTATIVE VANCE  referred to the fiscal  note (FN) analysis,                                                               
included in the committee packet, which read:                                                                                   
     The division  will need to consult  with the Department                                                                    
     of Law to determine if  the information of these minors                                                                    
     is protected  and not  intended to  be released  in any                                                                    
     lists available from the division.                                                                                         
REPRESENTATIVE  VANCE  pointed out  the  concern  for privacy  of                                                               
minors,  because  the  Division   of  Elections  (DOE)  does  not                                                               
interact with  minors.   She asked whether  HB 250  would require                                                               
more regulations for DOE.                                                                                                       
REPRESENTATIVE HOPKINS  stated that the  $75,000 in the  FN would                                                               
be  used to  promulgate regulations  if needed.   The  new voters                                                               
under HB 250 would not be  active voters, therefore, would not be                                                               
on the  voter rolls.   Much of  the voter information  is public.                                                               
Currently  someone  17 years  of  age  may  register to  vote  if                                                               
turning 18  within 30 days of  an election; they are  minors when                                                               
they register.   The $75,000  would provide  financial assistance                                                               
to the division to implement the process.                                                                                       
4:41:42 PM                                                                                                                    
REPRESENTATIVE VANCE  asked why  Representative Hopkins  feels it                                                               
is important  to change  the registration age  to 16  to increase                                                               
participation,  when there  is already  an opportunity  for early                                                               
registration at age 17.  She  mentioned that she has always taken                                                               
her children to  the voting place and given them  a sample ballot                                                               
to read and vote.   She maintained that encouraging participation                                                               
could be done without burdening DOE.                                                                                            
REPRESENTATIVE HOPKINS answered that he  is a strong advocate for                                                               
finding ways to enfranchise more  voters.  He maintained that the                                                               
FN  of $75,000  would not  be a  significant burden  to DOE.   He                                                               
offered that it is critical  to give younger and engaged citizens                                                               
the opportunity to practice the skill  of being a voter and being                                                               
engaged.   He said  that his  parents also took  him voting.   He                                                               
stated that younger voters are  in the lowest percentage of voter                                                               
turnout;  they  may  be  engaged   as  young  children  but  then                                                               
engagement  drops  off  after  high  school.    He  offered  that                                                               
registering  would  not  be  required,  but  it  would  offer  an                                                               
opportunity to  grow into the  process and give  teachers another                                                               
tool for bringing students into the discussion and process.                                                                     
4:45:30 PM                                                                                                                    
CO-CHAIR  KREISS-TOMKINS added  that there  is data  and evidence                                                               
that show increased ability to (indisc.).                                                                                       
REPRESENTATIVE  VANCE mentioned  that part  of the  engagement of                                                               
voting  is being  registered to  vote, and  currently in  Alaska,                                                               
automatic   registration  occurs   through  the   permanent  fund                                                               
dividend   (PFD)   application.     She   asked   how   automatic                                                               
registration would  impact young  voters registering  early under                                                               
HB 250.                                                                                                                         
REPRESENTATIVE HOPKINS  answered that the young  voters would not                                                               
be  eligible for  automatic voter  registration  through the  PFD                                                               
application,   because  they   would  not   be  18.     Automatic                                                               
registration begins once a person turns 18.                                                                                     
REPRESENTATIVE VANCE  asked whether  there are other  states with                                                               
automatic voter registration.                                                                                                   
REPRESENTATIVE HOPKINS  replied that he didn't  know but directed                                                               
her to  the bill  packet which  lists the  23 states  with pre-18                                                               
voter registration and the options.                                                                                             
CO-CHAIR KREISS-TOMKINS  added that  there are 20-25  states with                                                               
some  form of  automatic  voter registration  but  none like  the                                                               
automatic registration through the Alaska PFD application.                                                                      
4:48:06 PM                                                                                                                    
AMY GALLAWAY  testified in support of  HB 250 as the  2020 Alaska                                                               
Teacher  of   the  Year  and  addressed   Representative  Vance's                                                               
question about the  need for early voter registration  at age 16.                                                               
She  stated that  when she  asks  her students  ages 14-18  about                                                               
accompanying their parents  to the voting place, only  about 1 in                                                               
a class of  30 respond that they  do so.  She  maintained that to                                                               
prepare  students to  be citizens,  teachers must  pair real-life                                                               
relevant  opportunities  with  the   learning  in  school.    She                                                               
mentioned  the  activities  she  employs  -  Kids  Voting  [USA],                                                               
candidate forums, invited  speakers - and stated that  if she can                                                               
pair  the process  and  importance of  registering  to vote  with                                                               
those activities,  it provides students with  an understanding of                                                               
how the  system works.   She said  that schools and  teachers are                                                               
non-partisan, therefore,  can offer  the amazing aspect  of being                                                               
in  a  representative  democracy   -  that  each  person's  voice                                                               
matters.   She maintained  that by  having teachers  register 16-                                                               
year-olds to  vote, the teachers  can explain all aspects  of the                                                               
process; the  process becomes more  relevant; it  allows students                                                               
to ask questions  and be supported, it empowers them  to vote and                                                               
to  continue  to vote.    She  mentioned  that youth  ages  18-24                                                               
represented  about  6  percent  of the  electorate  in  the  last                                                               
REPRESENTATIVE  STORY   asked  Ms.   Gallaway  to   describe  how                                                               
registering students to vote would occur in the schools.                                                                        
MS.  GALLAWAY  responded that  teachers  often  have students  do                                                               
civic projects  in class.   She  mentioned the  Youth Ambassadors                                                               
Program,  in which  16-17-year-olds can  volunteer at  the polls.                                                               
She said  that for  student engagement  in the  civic activities,                                                               
teachers  can  offer registering  to  vote  with assistance  from                                                               
registrars, registration drives, and  the League of Women Voters.                                                               
In  connection  to the  school  activities  and what  is  taught,                                                               
students can have  a relevant experience and be  prepared to vote                                                               
at age 18.                                                                                                                      
REPRESENTATIVE  STORY  acknowledged  the low  voter  turnout  and                                                               
asked for  confirmation that early  registration would  help more                                                               
families vote, when the students in the families are voting.                                                                    
MS.  GALLAWAY  answered  that  she  has  already  witnessed  that                                                               
outcome.  As a civics  educator, she is constantly teaching about                                                               
the  elections and  requires her  students  to discuss  elections                                                               
with parents.   She maintained  that if students  are registering                                                               
to vote, the conversations about  citizen responsibility are even                                                               
further encouraged,  and students  may pressure their  parents to                                                               
vote as well.                                                                                                                   
4:53:58 PM                                                                                                                    
REPRESENTATIVE  VANCE asked  whether Ms.  Gallaway is  limited in                                                               
her ability to teach anything  about voting and civics without HB
MS. GALLAWAY  replied that the limit  is in the form  of students                                                               
feeling  a  lack  of  authenticity  regarding  the  school  civic                                                               
projects they do, because they don't  really have a "voice."  She                                                               
asserted  that  being able  to  engage  in the  legitimate  legal                                                               
registration process  gives authenticity  to students  and breaks                                                               
down the last barrier of disconnect.                                                                                            
REPRESENTATIVE  VANCE  expressed   her  concerns  about  parental                                                               
rights issues  and giving  more responsibility  to schools.   She                                                               
said  that  if  schools  take on  more  responsibility,  it  will                                                               
encourage parents  to do less,  and parents should  be encouraged                                                               
to  do more  to  engage  their children.    She acknowledged  the                                                               
importance of good civics educators, but expressed that parents                                                                 
have the responsibility to teach their children and she doesn't                                                                 
want to see schools take over this area of responsibility.                                                                      
REPRESENTATIVE HOPKINS stated that the proposed legislation                                                                     
would drive dialogue in classrooms and at home.                                                                                 
[HB 250 was held over.]                                                                                                         
4:58:33 PM                                                                                                                    
There being no further business before the committee, the House                                                                 
State Affairs Standing Committee meeting was adjourned at 4:58                                                                  

Document Name Date/Time Subjects
HB 264 Fiscal Note DOA-DMV 2.29.2020.pdf HSTA 3/5/2020 3:00:00 PM
HB 264
HB 264 v. A 2.21.2020.PDF HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 264
HB 264 Sectional v. A 2.27.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 264
HB 264 Supporting Document - SR-22 Requirements (DMV) 2.27.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 264
HB 264 Sponsor Statement 2.27.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 264
HB233 ver M 2.27.20.PDF HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 233
HB233 Sponsor Statement 2.27.20.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 233
HB 233 Fiscal Note DPS-DET 2.27.20.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 233
HB 250 v. U 2.17.2020.PDF HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Sectional Analysis v. A 2.27.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document 2.27.2020 - Voter Preregistration Progams (Case Study of Hawaii and Florida).pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Sponsor Statement 2.27.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document 2.27.20 - Registering the Youth Through Voter Preregistration.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document 2.27.2020 - Walking the walk_ Experiments on the effect of pledging to vote on youth turnout.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document 2.27.2020 - Making Young Voters The Impact of Preregistration on Youth Turnout.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document 2.27.2020 - Increasing Youth Participation_ The Case for a National Voter Pre.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Fiscal Note OOG-DOE 3.20.20.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document - Voter Registration Form 3.2.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Documents - Letters of Support 3.2.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HB 250 Supporting Document - AK Voter Eligibility 3.2.2020.pdf HSTA 3/3/2020 3:00:00 PM
HSTA 3/5/2020 3:00:00 PM
HB 250
HSTA Cloud Presentation - 01.22.20 Digital Alliance Alaska MOU FINAL 01.20.20 v3 3.5.20.pdf HSTA 3/5/2020 3:00:00 PM
DOA Cloud Presentation
HSTA Cloud Presentation - AK Grat Services WO FE 3.5.20.pdf HSTA 3/5/2020 3:00:00 PM
DOA Cloud Presentation
HSTA Cloud Presentation - DOA-OIT Cloud Migration Info 3.5.20.pdf HSTA 3/5/2020 3:00:00 PM
DOA Cloud Presentation
HSTA Cloud Presentation - OIT DOA SOA 01E73840 3.5.20.pdf HSTA 3/5/2020 3:00:00 PM
DOA Cloud Presentation
HB 264 Supporting Document - Leg Research Report SR-22 Automobile Insurance Requirements 11.21.2019.pdf HSTA 3/5/2020 3:00:00 PM
HB 264