01/26/2022 05:15 PM House LABOR & COMMERCE

                HB 159-CONSUMER DATA PRIVACY ACT                                                                            
                                                                                                                                
5:48:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  final order  of business                                                               
would be  HOUSE BILL NO.  159, "An Act establishing  the Consumer                                                               
Data   Privacy  Act;   establishing   data  broker   registration                                                               
requirements;  making a  violation of  the Consumer  Data Privacy                                                               
Act an unfair  or deceptive trade practice; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
5:48:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS stated that amendments are being drafted.                                                                       
                                                                                                                                
5:49:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN noted the complicated nature of the bill.                                                                
                                                                                                                                
5:49:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ opened public testimony on HB 159.                                                                           
                                                                                                                                
5:49:51 PM                                                                                                                    
                                                                                                                                
ROBERT    WOODY,    American     Property    Casualty    Insurers                                                               
Association(APCIA),  noted  that he  works  with  a coalition  of                                                               
insurance trade associations,  including the National Association                                                               
of Mutual Insurance Companies(NAMIC)  and the American Council of                                                               
Life Insurers  (ACLI).  He  highlighted that  insurance consumers                                                               
are already protected  by a strict privacy  and regulatory regime                                                               
by the Gramm-Leach-Bliley Act (GLBA).   In addition to protecting                                                               
consumer  privacy, he  continued,  Alaska's insurance  regulation                                                               
requires  insurers  to  have  a  comprehensive  written  plan  to                                                               
protect the security and confidentiality  of data against threats                                                               
and  unauthorized access.   He  said that  GLBA was  enacted over                                                               
twenty  years ago,  and  expressed  that it  is  working well  to                                                               
protect consumers.    He said  that the goal of  a GLBA exemption                                                               
is to  ensure that insurers  and consumers  are not subject  to a                                                               
"patchwork" of state  and federal laws because  it's difficult to                                                               
understand and  accommodate.  He  suggested that a single  set of                                                               
privacy  rules would  be simpler.   He  noted that  the coalition                                                               
submitted a letter to the  committee [hard copies included in the                                                               
committee  packet]  with  a  suggestion on  the  wording  of  the                                                               
exemption,  and  he  expressed   that  the  coalition  hopes  the                                                               
committee  takes  this into  consideration.    He said  that  the                                                               
coalition is also concerned about the private right of action.                                                                  
                                                                                                                                
5:54:38 PM                                                                                                                    
                                                                                                                                
MAYA MCKENZIE, Technology  Policy Council, Entertainment Software                                                               
Association, testified  in opposition to  HB 159.  She  said that                                                               
state  privacy  legislation  should not  conflict  with  existing                                                               
children's  privacy laws.    She stated  that  while she  doesn't                                                               
support the bill,  she supports some additional  amendments.  She                                                               
suggested that the bill should  clarify that a business shouldn't                                                               
process  data  from  a  consumer  under the  age  of  13,  unless                                                               
provided  by   the  Children's  Online  Privacy   Protection  Act                                                               
(COPPA).      She  shared her  understanding  that  the  proposed                                                               
legislation deviates  from COPPA's standard for  determining age,                                                               
and  suggested that  AS 45.48.845(b)  be deleted  from the  bill.                                                               
She expressed  that failing to  remove this section  would create                                                               
unnecessary confusion.   Finally,  she suggested an  amendment to                                                               
clarify that  parental consent that  is obtained, as  provided by                                                               
COPPA,  would be  sufficient consent  under the  bill.   She said                                                               
that this  would ensure  that existing  practices would  not "run                                                               
afoul" of state law.                                                                                                            
                                                                                                                                
5:57:37 PM                                                                                                                    
                                                                                                                                
ANTON  VAN   SEVENTER,  Council,   State  Privacy   and  Security                                                               
Coalition,  testified in  opposition to  HB 159.   He  shared his                                                               
understanding that the bill  contains "outlier requirements" that                                                               
are found in no other state law  and could lead to confusion.  He                                                               
highlighted  the proposed  requirement for  businesses to  comply                                                               
with  global   privacy  control,  which  he   said  would  create                                                               
technical   impracticalities   and  would   "undermine   consumer                                                               
choice."    He shared  his understanding that the  global privacy                                                               
control  doesn't reflect  the aims  of the  proposed legislation.                                                               
He said the  bill would prevent consumers  from actively choosing                                                               
to permit certain  sites to collect or disclose  information.  He                                                               
highlighted the  "underlying" private  right of  action component                                                               
of the bill, which he said  have been shown to fail to compensate                                                               
consumers, even when  a violation has been shown.    He expressed                                                               
that the  bill also includes  "vague and  overbroad" definitions,                                                               
and suggested that the bill's language be clarified and updated.                                                                
                                                                                                                                
6:00:25 PM                                                                                                                    
                                                                                                                                
ALYSSA     DOOM,    Computer     &    Communications     Industry                                                               
Association(CCPIA),  testified in  opposition to  HB 159.     She                                                               
explained that  CCPIA is  a non-profit  that represents  small to                                                               
large communication  and technology  firms.  She  emphasized that                                                               
CPIA  supports a  uniform approach  to technology  legislation to                                                               
promote regulatory certainty.   She said that  CCPIA has concerns                                                               
about adopting legislation that is  specific to each state, which                                                               
she opined would contribute to the "patchwork" of laws.                                                                         
                                                                                                                                
6:02:12 PM                                                                                                                    
                                                                                                                                
DAVID  EDMONSON, Vice  President of  State Policy  and Government                                                               
Relations,  TechNet,  testified in  opposition  to  HB 159.    He                                                               
expressed that  the technology industry is  committed to consumer                                                               
privacy and promoting consumer choice  in determining how data is                                                               
used.   He  said that  TechNet  supports a  uniform standard  and                                                               
responsibilities for  all Americans.   He agreed that  each state                                                               
having its  own laws will  contribute to a steep  compliance cost                                                               
and consumer confusion.   He expressed concern  about the private                                                               
right of action  that is proposed by HB 159,  which he said could                                                               
cause "enormous liability."                                                                                                     
                                                                                                                                
6:04:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ, after  ascertaining  that there  was no  one                                                               
else who wished to testify, closed public testimony on HB 159.                                                                  
                                                                                                                                
CO-CHAIR SPOHNHOLZ announced that HB 159 was held over.