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CSHB 74(FIN) am: "An Act relating to a veteran's designation on an identification card or a driver's license for Hmong veterans and Lao veterans; relating to the implementation of the federal REAL ID Act of 2005; relating to issuance of identification cards and drivers' licenses; relating to data sharing by the Department of Administration; relating to special motor vehicle registration plates for recipients of the Bronze Star awarded for valor, Silver Star, Navy Cross, Distinguished Service Cross, Air Force Cross, Coast Guard Cross, and other awards reflecting valor; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 74(FIN) am 01 "An Act relating to a veteran's designation on an identification card or a driver's license 02 for Hmong veterans and Lao veterans; relating to the implementation of the federal 03 REAL ID Act of 2005; relating to issuance of identification cards and drivers' licenses; 04 relating to data sharing by the Department of Administration; relating to special motor 05 vehicle registration plates for recipients of the Bronze Star awarded for valor, Silver 06 Star, Navy Cross, Distinguished Service Cross, Air Force Cross, Coast Guard Cross, 07 and other awards reflecting valor; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 LEGISLATIVE INTENT. It is the intent of the legislature that the state continue to 12 work with the Alaska delegation in Congress to amend provisions of P.L. 109-13, Division B 13 (REAL ID Act of 2005) that compromise the rights of Alaskans to the privacy of their

01 personal information, while protecting the nation's efforts to combat terrorism. 02 * Sec. 2. AS 18.65.310(a) is amended to read: 03 (a) Upon payment of a $15 fee, the department shall issue a card identical to 04 the motor vehicle operator's license provided for in AS 28.15.111, except that the card 05 shall be of a different color and shall state in bold type letters across the face of it that 06 it is for identification purposes only. Upon request of a person and upon payment 07 of an additional $10 fee, the department may issue an identification card under 08 this section that is federally compliant. 09 * Sec. 3. AS 18.65.310(b) is amended to read: 10 (b) A person may obtain an identification card provided for in (a) of this 11 section by applying to the department on forms and in the manner prescribed by the 12 department. The department shall include on the application for an identification 13 card a requirement that the applicant indicate 14 (1) that the applicant understands the options for identification 15 cards available at the time of issuance; and 16 (2) the type of identification card that the applicant selects. 17 * Sec. 4. AS 18.65.310(l) is amended to read: 18 (l) At the request of the person, the department shall provide a veteran 19 designation and United States flag replica on an identification card identifying the 20 person as a retired veteran, [OR] a veteran of the armed forces of the United States 21 discharged under honorable conditions, or a Hmong veteran or Lao veteran who 22 served in military operations in support of the United States in the Kingdom of 23 Laos between February 28, 1961, and May 15, 1975. The department may not 24 charge a fee solely for the designation. To receive a veteran designation, the person 25 shall provide proof of veteran status that shows the person is retired, was [OR] 26 discharged under honorable conditions, or is a Hmong veteran or Lao veteran. The 27 department shall consult with the Department of Military and Veterans' Affairs 28 to determine the proof necessary to show that a person is a Hmong veteran or 29 Lao veteran. With the approval of the person, the department shall make available to 30 the Department of Military and Veterans' Affairs the name and address of a person 31 receiving a veteran designation under this subsection. Notwithstanding (a) of this

01 section, the department may charge a fee of $5 for replacement of a valid 02 identification card with a new identification card with a veteran designation. 03 * Sec. 5. AS 18.65.310 is amended by adding new subsections to read: 04 (m) The department shall adopt regulations for the issuance of identification 05 cards that are federally compliant. For identification cards that are federally compliant, 06 the department 07 (1) shall copy, scan, or retain only the minimum number of documents 08 required by P.L. 109-13, Division B (REAL ID Act of 2005), or other applicable state 09 or federal law, for issuance of an identification card that is federally compliant; 10 (2) shall destroy, regularly and as close as practicable to 15 years after 11 the date of application unless otherwise required by another applicable state or federal 12 law, any documents retained under (1) of this subsection; and 13 (3) may not copy, scan, or retain in any form a document that is not 14 required to be retained under (1) of this subsection. 15 (n) The department shall continue to issue identification cards that are not 16 federally compliant. Nothing in this section or regulations adopted under this section 17 requires a person to be issued an identification card that is federally compliant. An 18 applicant must clearly request an identification card that is federally compliant to 19 obtain one. The state or a municipal government may not require a person to possess 20 or use an identification card that is federally compliant unless the person is a state or 21 municipal employee and the duties of the person's job require the use of an 22 identification card that is federally compliant. The state or a municipal government 23 shall otherwise treat an identification card that is not federally compliant the same as 24 an identification card that is federally compliant. For an identification card that is not 25 federally compliant, the department 26 (1) shall retain an image of the face on the identification card for not 27 more than 15 years; if an applicant does not receive an identification card, the 28 department may not retain an image of the applicant's face; 29 (2) shall scan and retain the minimum documents necessary for 30 issuance of the identification card; the department shall destroy any documents 31 retained one year after the identification card expires.

01 (o) An identification card expires on the person's birthday in the eighth year 02 following issuance of the identification card. An identification card may be renewed 03 within one year of its expiration upon proper application and payment of the required 04 fee. An identification card may be renewed by mail or on the department's Internet 05 website, except that an identification card may not be renewed by mail or on the 06 department's Internet website if the most recent renewal of the applicant's 07 identification card was by mail or on the department's Internet website. Under 08 regulations adopted by the department, the department may issue to a person an 09 identification card with a duration of less than eight years if the person is authorized to 10 stay in the United States for less than eight years or if the period of authorized stay is 11 indefinite. The department shall issue the identification card for the period of the 12 authorized stay. If the period of authorized stay is indefinite, the department shall issue 13 the identification card with a validity of up to eight years. 14 (p) The department shall provide public information about the differences 15 between identification cards and identification cards that are federally compliant. The 16 department shall also provide the information to applicants for new and renewal 17 identification cards at the time of application. At a minimum, the information must 18 include a description of 19 (1) each type of identification card; 20 (2) the storage and sharing process for an applicant's information for 21 an identification card and an identification card that is federally compliant; and 22 (3) the official purpose and limitations on the use of each type of 23 identification card, including a description of the purposes for which an identification 24 card that is federally compliant may be required and a description of alternatives to 25 using an identification card that is federally compliant to serve those purposes. 26 (q) In this section, "identification card that is federally compliant" means an 27 identification card issued by the state that has been certified by the United States 28 Department of Homeland Security to be in compliance with the requirements of P.L. 29 109-13, Division B (REAL ID Act of 2005). 30 * Sec. 6. AS 28.05 is amended by adding a new section to read: 31 Sec. 28.05.068. Prohibition on data sharing. (a) If the department conveys,

01 distributes, or communicates data to be used in a database, index, pointer system, or 02 any other system managed by an entity other than the department, including the 03 American Association of Motor Vehicle Administrators, to comply with the 04 requirements of P.L. 109-13, Division B (REAL ID Act of 2005), the department may 05 not convey, distribute, or communicate to that entity any data not required to be 06 conveyed, distributed, or communicated for the state to be certified by the United 07 States Department of Homeland Security to be in compliance with the requirements of 08 P.L. 109-13, Division B (REAL ID Act of 2005). 09 (b) Notwithstanding (a) of this section, the department may not convey, 10 distribute, or communicate to a private entity any scanned or stored documents 11 collected in order to carry out the provisions of AS 28.15. 12 (c) The department shall take all steps necessary to obtain from the entity an 13 agreement that the state need not convey, distribute, or communicate social security 14 numbers, in whole or in part, to participate in the database, index, pointer system, or 15 other system. 16 (d) The department shall take all steps available to work with other states, the 17 United States Department of Homeland Security, and any multistate entities in which 18 the state participates to secure a means of compliance with P.L. 109-13, Division B 19 (REAL ID Act of 2005), including through an interstate compact, that does not 20 involve the storage or sharing of social security numbers, in whole or in part, with an 21 interstate database, index, pointer system, or other system. 22 (e) The department 23 (1) may not share more than three digits of a person's social security 24 number to determine whether a person has been issued a driver's license in another 25 state; 26 (2) may share the number of digits of a person's social security number 27 required by federal law. 28 (f) Notwithstanding (e)(1) of this section, the department may share up to five 29 digits but as few digits as feasible of a person's social security number to determine 30 whether a person has been issued a driver's license in another state if the department 31 (1) has taken all steps necessary to secure an agreement to use only

01 three digits of a person's social security number; and 02 (2) has been unable to secure an agreement to use only three digits of a 03 person's social security number. 04 (g) The department shall submit an annual report on the results of the efforts 05 required under (c) - (f) of this section to the senate secretary and chief clerk of the 06 house of representatives on or before January 31 of each year and notify the legislature 07 that the report is available. 08 * Sec. 7. AS 28.10.181 is amended by adding new subsections to read: 09 (jj) Vehicles owned by recipients of a Bronze Star awarded for valor, Silver 10 Star, Navy Cross, Distinguished Service Cross, Air Force Cross, or Coast Guard 11 Cross. The department, upon receipt of written proof that the person is the sole or joint 12 owner of a motor vehicle, shall issue special registration plates for the motor vehicle to 13 a requesting person who has received the Bronze Star Medal awarded for valor, Silver 14 Star Medal, Navy Cross, Distinguished Service Cross, Air Force Cross, or Coast 15 Guard Cross. The commissioner, after consulting with the person in the Department of 16 Military and Veterans' Affairs in charge of veterans' affairs, shall determine the design 17 and color of the Bronze Star awarded for valor recipient plates, Silver Star recipient 18 plates, Navy Cross recipient plates, Distinguished Service Cross recipient plates, Air 19 Force Cross recipient plates, and Coast Guard Cross recipient plates. 20 (kk) Vehicles owned by recipients of awards reflecting valor issued by the 21 armed forces of the United States. The department, upon receipt of written proof that 22 the person is the sole or joint owner of a motor vehicle, may issue special registration 23 plates for the motor vehicle to a requesting person who has received an award 24 reflecting valor issued by the armed forces of the United States other than a Purple 25 Heart, Bronze Star awarded for valor, Silver Star, Navy Cross, Distinguished Service 26 Cross, Air Force Cross, or Coast Guard Cross. The commissioner, after consulting 27 with the person in the Department of Military and Veterans' Affairs in charge of 28 veterans' affairs, shall determine the design and color of the award recipient plates. 29 * Sec. 8. AS 28.10.421(d)(2) is amended to read: 30 (2) special request plates for 31 (A) Alaska National Guard personnel ......... $30;

01 (B) veterans, retired veterans, or Lao veterans .... $30; 02 (C) recipients of the Purple Heart ........... none; 03 (D) recipients of the Bronze Star awarded for valor, Silver 04 Star, Navy Cross, Distinguished Service Cross, Air Force Cross, Coast 05 Guard Cross, or other award reflecting valor ............. $30; 06 (E) owners of custom collector vehicles ........ $50; 07 (F) [(E)] Iditarod race finishers .............. $50; 08 (G) [(F)] other special request plates .......... $30; 09 plus the fee required for that vehicle under (b) of this section; the fee required by this 10 paragraph shall be collected only on the first issuance and on the replacement of 11 special request plates; 12 * Sec. 9. AS 28.15.041 is amended by adding new subsections to read: 13 (d) The commissioner shall adopt regulations for the issuance of drivers' 14 licenses that are federally compliant. For drivers' licenses that are federally compliant, 15 the department 16 (1) shall copy, scan, or retain only the minimum number of documents 17 required by P.L. 109-13, Division B (REAL ID Act of 2005), or other applicable state 18 or federal law, for issuance of a driver's license that is federally compliant; 19 (2) shall destroy, regularly and as close as practicable to 15 years after 20 the date of application unless otherwise required by another applicable state or federal 21 law, any documents retained under (1) of this subsection; and 22 (3) may not copy, scan, or retain in any form a document that is not 23 required to be retained under (1) of this subsection. 24 (e) The department shall continue to issue drivers' licenses that are not 25 federally compliant. Nothing in this section or regulations adopted under this section 26 requires a driver to be issued a driver's license that is federally compliant. An 27 applicant must clearly request a driver's license that is federally compliant to obtain 28 one. The state or a municipal government may not require a person to possess or use a 29 driver's license that is federally compliant. The state or a municipal government shall 30 treat a driver's license that is not federally compliant the same as a driver's license that 31 is federally compliant. For a driver's license that is not federally compliant, the

01 department 02 (1) shall retain an image of the face on the license for not more than 15 03 years; if an applicant does not receive a driver's license, the department may not retain 04 an image of the applicant's face; 05 (2) shall scan and retain the minimum documents necessary for 06 issuance of the driver's license; the department shall destroy any documents retained 07 one year after the driver's license expires. 08 (f) The department shall provide public information about the differences 09 between drivers' licenses and drivers' licenses that are federally compliant. The 10 department shall also provide the information to applicants for new and renewal 11 drivers' licenses at the time of application. At a minimum, the information must 12 include a description of 13 (1) each type of driver's license; 14 (2) the storage and sharing process for an applicant's information for a 15 driver's license and a driver's license that is federally compliant; and 16 (3) the official purpose and limitations on use of each type of driver's 17 license, including a description of the purposes for which a driver's license that is 18 federally compliant may be required and a description of alternatives to using a 19 driver's license that is federally compliant to serve those purposes. 20 * Sec. 10. AS 28.15.061(b) is amended to read: 21 (b) An application under (a) of this section must 22 (1) contain the applicant's full legal name, date and place of birth, sex, 23 and mailing and residence addresses; 24 (2) state whether the applicant has been previously licensed in the past 25 10 years as a driver and, if so, when and by what jurisdiction; 26 (3) state whether any previous driver's license issued to the applicant 27 has ever been suspended or revoked or whether an application for a driver's license has 28 ever been refused and, if so, the date of and reason for the suspension, revocation, or 29 refusal; 30 (4) contain the applicant's social security number; the requirement of 31 this paragraph only applies to an applicant who has been issued a social security

01 number; [AND] 02 (5) contain other information that the department may reasonably 03 require to determine the applicant's identity, competency, and eligibility; and 04 (6) require that the applicant indicate 05 (A) that the applicant understands the options for drivers' 06 licenses available at the time of issuance; and 07 (B) the type of driver's license that the applicant selects. 08 * Sec. 11. AS 28.15.101(a) is amended to read: 09 (a) Except as otherwise provided in this chapter, a driver's license expires on 10 the licensee's birthday in the eighth [FIFTH] year following issuance of the license. A 11 license may be renewed within one year of its expiration upon proper application, 12 payment of the required fee, and except when a license is renewed under (c) of this 13 section, successful completion of a test of the licensee's eyesight. 14 * Sec. 12. AS 28.15.101(d) is amended to read: 15 (d) Under regulations adopted by the department, the department may issue to 16 a person a driver's license with a duration of less than eight [FIVE] years if the person 17 is authorized to stay in the United States for less than eight [FIVE] years or the period 18 of authorized stay is indefinite. The department shall issue the license for the period of 19 the authorized stay. If the period of authorized stay is indefinite, the department shall 20 issue the license with a validity of up to eight years [ONE YEAR. THE 21 DEPARTMENT SHALL PROVIDE THAT A PERSON RECEIVING A LICENSE 22 WITH A DURATION OF LESS THAN FIVE YEARS UNDER THIS SUBSECTION 23 MAY RENEW THE LICENSE WITHOUT A RENEWAL FEE DURING A PERIOD 24 OF UP TO FIVE YEARS AFTER FIRST ISSUANCE OF THE LICENSE]. 25 * Sec. 13. AS 28.15.111(a) is amended to read: 26 (a) Upon successful completion of the application and all required 27 examinations, and upon payment of the required fee, the department shall issue to 28 every qualified applicant a driver's license indicating the type or general class of 29 vehicles that the licensee may drive. The license must (1) display a distinguishing 30 number assigned to the license; (2) display the licensee's full name, address, date of 31 birth, brief physical description, and [COLOR] photograph; (3) display either a

01 facsimile of the signature of the licensee or a space upon which the licensee must write 02 the licensee's usual signature with pen and ink; (4) physical security features 03 designed to prevent tampering, counterfeiting, or duplication of the document for 04 fraudulent purposes [DISPLAY A HOLOGRAPHIC SYMBOL INTENDED TO 05 PREVENT ILLEGAL ALTERATION OR DUPLICATION]; (5) display, for a 06 qualified applicant who is under 21 years of age, the words "UNDER 21"; and (6) to 07 the extent the department is able, be designed to allow the electronic reading and 08 electronic display of the information described under (2) of this subsection and the 09 electronic reading and display and a physical display on the license that the person is 10 restricted from purchasing alcoholic beverages under AS 04.16.160. A license may not 11 display the licensee's social security number and is not valid until signed by the 12 licensee. If facilities are not available for the taking of the photograph required under 13 this section, the department shall endorse on the license, the words "valid without 14 photograph." 15 * Sec. 14. AS 28.15.111(c) is amended to read: 16 (c) At the request of an applicant, the department shall provide a veteran 17 designation and United States flag replica on a license identifying the driver as a 18 retired veteran, [OR] a veteran of the armed forces of the United States discharged 19 under honorable conditions, or a Hmong veteran or Lao veteran who served in 20 military operations in support of the United States in the Kingdom of Laos 21 between February 28, 1961, and May 15, 1975. The department may not charge a 22 fee solely for the designation. To receive a veteran designation, the driver shall make 23 available proof of veteran status that shows that the person is retired, was [OR] 24 discharged under honorable conditions, or is a Hmong veteran or Lao veteran. The 25 department shall consult with the Department of Military and Veterans' Affairs 26 to determine the proof necessary to show that a person is a Hmong veteran or 27 Lao veteran. With the approval of the applicant, the department shall make available 28 to the Department of Military and Veterans' Affairs the name and address of a driver 29 receiving a veteran designation under this subsection. The department may charge a 30 fee of $5 for replacement of a valid driver's license with a new license with a veteran 31 designation. A replacement license with a veteran designation issued for $5 under this

01 subsection shall retain the expiration date of the license it replaces. 02 * Sec. 15. AS 28.15.111 is amended by adding new subsections to read: 03 (d) The department may not engage in bulk sharing of facial images captured 04 as a result of an application for a driver's license with a database, other than a database 05 established by the state, regardless of whether the applicant applied for a driver's 06 license that is federally compliant or a driver's license that is not federally compliant. 07 The prohibition in this subsection does not apply to a commercial driver's license. 08 (e) A commercial driver's license must be federally compliant. 09 * Sec. 16. AS 28.15.271(b) is amended to read: 10 (b) In addition to the fees under (a) of this section, 11 (1) a person who renews a driver's license by mail shall pay a fee of 12 $1; 13 (2) a person who applies for a limited driver's license under 14 AS 28.15.201 shall pay a fee of $100; and 15 (3) a person who applies for reinstatement of a driver's license under 16 AS 28.15.211 shall pay a fee of 17 (A) $100 if the person's driver's license has, within the 10 years 18 preceding the application, been suspended, revoked, or limited under the 19 provisions of this chapter, except as provided by (C) of this paragraph, only 20 once; 21 (B) $250 if the person's driver's license has, within the 10 years 22 preceding the application, been suspended, revoked, or limited under the 23 provisions of this chapter, except as provided by (D) of this paragraph, two or 24 more times; 25 (C) $200 if the person's driver's license has, within the 10 years 26 preceding the application, been revoked under AS 28.35.030 or 28.35.032 only 27 once; or 28 (D) $500 if the person's driver's license has, within the 10 years 29 preceding the application, been revoked under AS 28.35.030 or 28.35.032 two 30 or more times; 31 (4) a person who applies for a driver's license that is federally

01 compliant shall pay a fee of $10. 02 * Sec. 17. AS 28.90.990(a) is amended by adding a new paragraph to read: 03 (32) "driver's license that is federally compliant" means a driver's 04 license issued by the state that has been certified by the United States Department of 05 Homeland Security to be in compliance with the requirements of P.L. 109-13, 06 Division B (REAL ID Act of 2005). 07 * Sec. 18. AS 44.99.040(a)(2) is repealed. 08 * Sec. 19. AS 28.05.068(g) is repealed June 30, 2021. 09 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITIONAL PROVISIONS: REGULATIONS. The Department of 12 Administration may adopt regulations necessary to implement the changes made by this Act. 13 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 14 effective date of the law implemented by the regulation. 15 * Sec. 21. Sections 18 and 20 of this Act take effect immediately under AS 01.10.070(c). 16 * Sec. 22. Sections 7 and 8 of this Act take effect January 1, 2018. 17 * Sec. 23. Sections 1 - 3, 5, 6, 9 - 13, and 15 - 17 of this Act take effect January 1, 2019.