Legislature(2017 - 2018)SENATE FINANCE 532
05/12/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB34 | |
| HB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 111 | TELECONFERENCED | |
| += | SB 34 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 34
"An Act relating to the implementation of the federal
REAL ID Act of 2005; and relating to issuance of
identification cards and driver's licenses; and
providing for an effective date."
10:06:32 AM
Co-Chair MacKinnon relayed that there was a letter of
explanation from the Department of Administration dated May
11, 2017 (copy on file). The letter was in response to
questions from the committee.
10:07:16 AM
LESLIE RIDLE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, discussed the aforementioned letter from
the department. She explicated that the questions
concerning the process of obtaining a driver's license or
identification. She stated that Alaskans would not need
anything new in order to obtain Real I.D. The change
involved verification of the proof of identity. The
division was a member of AAMVA [American Association of
Motor Vehicle Administrators]. The system ensured that the
applicant only carried one driver's license. The DMV from
other states cannot access documents on the state system.
Documents are not shared with other entities, other than to
check for pre-existing driver's licenses in other states.
For this process, the name, date of birth, and last four
digits of the social security number (SSN). Some
information was shared via subpoena with Department of
Public Safety for the purposes of working on cold cases and
I.D. fraud.
10:11:04 AM
Co-Chair MacKinnon asked if all states had "one driver's
license in one state" rule, or whether that was a federal
law.
Ms. Ridle informed that all states had the rule but that it
was a federal law.
10:11:37 AM
AT EASE
10:31:44 AM
RECONVENED
Co-Chair MacKinnon MOVED to ADOPT Amendment 1:
Page 3, line 5, following "15 years"
Delete "after the expiration of the identification
card"
Insert "after the date of application"
Page 3, line 8, following "retain"
Insert "only"
Page 6, line 8, following "years"
Delete "after the expiration of the license"
Insert "after the date of application"
Page 6, line 10, following "retain"
Insert "only"
Vice-Chair Bishop OBJECTED for discussion.
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, explained
Amendment 1. She detailed that the amendment should be
starting on page 3, line 5 and the last change should be on
page 6, line 10. These were technical fixes within the
bill. She specified that it was always the intent to have
a 15-year retention period; however, currently it contained
a retention period ending after the date of the expiration
of the I.D. card, which would have been 23 years.
Additional changes specified that only minimum
documentation was required.
Vice-Chair Bishop WITHDREW his OBJECTION. There being NO
OBJECTION, Amendment 1 was ADOPTED.
10:33:30 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 2.
Vice-Chair Bishop OBJECTED for discussion.
Ms. Lucky explained Amendment 2:
The intent of this amendment is to require the
department, should attempts to discontinue use of the
social security number as a means of verifying
identity in order to comply with federal law requiring
that states confirm that an applicant is not licensed
to drive in another state, to work to reduce the
number of digits of the social security number
required and to limit the department to sharing the
minimum number of digits required, instead of
specifying a number of digits.
Page 4, line 19, following "steps"
Delete "necessary"
Insert "available"
Page 4, line 29 through page 5, line 8
Delete all material
Insert "(d) If the department has complied with
(b) and (c) of this section and been unable to secure
a means of compliance with P.L. 109-13, Division B
(REAL ID Act of 2005) that does not involve the
storage or sharing of social security numbers, in
whole or in part, the department shall take all steps
necessary to minimize the number of digits of a social
security= number required to be stored or shared.
(e) The department may not share more than fewest
number of digits of a person's social security number
necessary to comply with federal law requiring the
department to determine whether a person has been
issued a driver's license in another state."
Ms. Lucky elaborated that there had been concern expressed
regarding the digits from a SSN for verification of
identity. The amendment would limit the use to three digits
of the SSN. She continued that the amendment would allow
for use of the fewest digits. Consistent with the language
in the bill, the amendment directed the department to try
not to use the SSN. The new provision would state that if
the department was unsuccessful in not using the SSN, it
should take all steps to minimize the number required and
use the fewest number of digits required. She added that
this would be adopted as a conceptual amendment.
Senator Micciche asked if Ms. Lucky had the opportunity to
discuss the amendments with the department to determine
whether the amendment compromised its ability to comply
with Real I.D.
Ms. Lucky relayed that she had discussed the amendments
with the department, and they were available to confirm.
10:36:27 AM
MICHAEL STANKER, DEPARTMENT OF LAW, ANCHORAGE (via
teleconference), testified that he had reviewed the
conceptual amendment. He did not see any issue with the
amendment.
Ms. Ridle stated that conceptual Amendment 2 would not
affect compliance with Real I.D.
Senator Micciche thanked Ms. Ridle for supplying the
document to the committee.
Vice-Chair Bishop WITHDREW his OBJECTION. There being NO
OBJECTION, conceptual Amendment 2 was ADOPTED.
Vice-Chair Bishop discussed two zero fiscal notes, FN2,
Department of Military and Veterans Affairs, OMB component
number 2657; and FN3, Department of Public Safety, OMB
component number 523. He stated that the department would
be providing a new fiscal note.
Ms. Lucky commented that the Department of Administration
(DOA) fiscal note no longer applied. The department would
be providing a new fiscal note.
10:39:30 AM
MINTA MONTALBO, DEPARTMENT OF ADMINISTRATION, JUNEAU,
explained that the fiscal note would be updated to reflect
the reduction in cost because the CS from [Senate] State
Affairs required the cards to be produced in-state. The
requirement was not in the present version of the bill so
would be removed. There would be increase in revenue due to
a fee increase in the current version from $15 to $20 for
compliant driver's licenses.
10:40:24 AM
Senator Hughes asked if Ms. Montalbo was aware of any
discussion across the states to members of Congress
regarding federal funding for the initiative.
Ms. Montalbo was not aware of any funds coming forward. The
division had been working with the congressional delegation
but had not heard of any funds being made available.
Co-Chair MacKinnon asked if there was going to be an
unforeseen cost to the state as a result of passing the
bill.
Ms. Montalbo explained that the costs were reflected in the
current fiscal note and would remain the same in the
forthcoming fiscal note. The $1.5 million implementation
cost would remain the same.
Co-Chair MacKinnon referred to the $1.5 million and
verified that was for improvements in technology. Ms.
Montalbo replied in the affirmative. She added that it was
a one-time cost to update their systems.
Co-Chair MacKinnon asked about additional positions. Ms.
Montalbo stated no new positions would be needed.
Co-Chair MacKinnon asked if the committee could expect a
fiscal note with zero expenditures for operating costs and
a one-time capital appropriation for the upgrade in
technology.
Ms. Montalbo stated that there was an ongoing production
cost to make the compliant cards of approximately $5 per
card. There would be an increase in receipt authority, and
in FY 19 there would be a $528.7 thousand in the services
line of the fiscal note. That was anticipated to increase
in out years.
Co-Chair MacKinnon expected that the revenues collected for
the program would exceed the costs. Ms. Montalbo answered
in the affirmative.
Co-Chair MacKinnon asked if there was a need to rewrite
regulation. Ms. Montalbo answered in the affirmative.
10:43:31 AM
Co-Chair MacKinnon asked if DMV would absorb that cost. Ms.
Montalbo replied in the affirmative.
Co-Chair MacKinnon asked whether there would be additional
fiscal notes. Ms. Montalbo replied there should be no
additional fiscal notes.
MARLA THOMPSON, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION (via teleconference), stated
that everything mentioned would be in the forthcoming
fiscal note.
Co-Chair MacKinnon asked if DMV would issue a zero fiscal
note on the operational cost side and on the capital cost
side. Ms. Thompson stated that those would be on the same
fiscal note.
Co-Chair clarified there would be no additional note to the
one submitted by DOA.
Vice-Chair Bishop MOVED to report CSSB 34(FIN) out of
Committee with individual recommendations and the
accompanying and forthcoming fiscal notes. There being NO
OBJECTION, it was so ordered.
CSSB 34(FIN) was REPORTED out of committee with a "no
recommendation" and with one new fiscal impact note from
the Department of Administration, and with two previously
published zero fiscal notes: FN2(MVA), FN3(DPS).
10:45:16 AM
AT EASE
10:47:17 AM
RECONVENED
Co-Chair MacKinnon stated that the committee would be
recessed to a call of the chair and would take up HB 111 in
the afternoon.
10:48:06 AM
RECESSED
3:07:34 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 34 DOA Response Memo 4.12.17 LR.pdf |
SFIN 5/12/2017 9:00:00 AM |
SB 34 |
| SB 34 Amendments 1 and 2 MacKinnon.pdf |
SFIN 5/12/2017 9:00:00 AM |
SB 34 |
| HB 111 v V Sectional Analysis.pdf |
SFIN 5/12/2017 9:00:00 AM |
HB 111 |
| HB 111 Senate Finance V 20170512 - Fiscal Impact 2017 Spring Forecast.pdf |
SFIN 5/12/2017 9:00:00 AM |
HB 111 |
| HB 11 Summary of Changes B to V.pdf |
SFIN 5/12/2017 9:00:00 AM |
|
| HB 111 Work Draft version V.pdf |
SFIN 5/12/2017 9:00:00 AM |
HB 111 |
| HB 111 DNR - Size of Tax Credits Surveys.pdf |
SFIN 5/12/2017 9:00:00 AM |
HB 111 |
| HB 111 Amendment 1 MacKinnon.pdf |
SFIN 5/12/2017 9:00:00 AM |
HB 111 |