02/16/2024 01:30 PM Senate LABOR & COMMERCE

        SB 134-INS. DATA SECURITY; INFO. SECURITY PRGRMS                                                                    
                                                                                                                                
1:34:35 PM                                                                                                                    
CHAIR  BJORKMAN announced  the consideration  of  SENATE BILL  NO.                                                              
134, "An  Act relating to  insurance data security;  amending Rule                                                              
26,  Alaska Rules  of  Civil Procedure,  and  Rules  402 and  501,                                                              
Alaska Rules of Evidence; and providing for an effective date."                                                                 
                                                                                                                                
1:35:07 PM                                                                                                                    
SENATOR  JAMES  KAUFMAN,  District F,  Alaska  State  Legislature,                                                              
Juneau, Alaska,  sponsor of  SB 134. He  gave a brief  overview of                                                              
SB  134,  explaining  that  this   legislation  would  update  and                                                              
upgrade  data security  within the  insurance  industry by  adding                                                              
additional   requirements.   He   surmised  that   many   Alaskans                                                              
understand and share data security concerns.                                                                                    
                                                                                                                                
1:36:50 PM                                                                                                                    
LORI WING-HEIER,  Director, Division  of Insurance,  Department of                                                              
Commerce,  Community  and Economic  Development  (DCCED),  Juneau,                                                              
Alaska, answered questions on SB 134.                                                                                           
                                                                                                                                
1:36:59 PM                                                                                                                    
SENATOR  DUNBAR asked  how difficult  it  would be  to enforce  SB
.                                                                                                                            
                                                                                                                                
1:37:12 PM                                                                                                                    
MS. WING-HEIER  shared her  understanding  that most agencies  and                                                              
insurance  companies  already  have the  corporate  governance  in                                                              
place to  address the changes made  by SB 134. She  explained that                                                              
currently,  there is  no channel  for companies  to report  cyber-                                                              
events to her - and to ensure that consumers are notified.                                                                      
                                                                                                                                
1:37:33 PM                                                                                                                    
SENATOR DUNBAR  asked if the  sponsor is considering  an amendment                                                              
to add this.                                                                                                                    
                                                                                                                                
1:37:48 PM                                                                                                                    
SENATOR KAUFMAN replied that this is included in SB 134.                                                                        
                                                                                                                                
1:37:56 PM                                                                                                                    
SENATOR  DUNBAR referred  to the  fiscal note  and asked if  these                                                              
changes could be made with current division staff.                                                                              
                                                                                                                                
1:38:20 PM                                                                                                                    
MS. WING-HEIER replied yes.                                                                                                     
                                                                                                                                
1:38:24 PM                                                                                                                    
SENATOR DUNBAR  asked if there  would be any potential  unforeseen                                                              
consequences as a result of these changes.                                                                                      
                                                                                                                                
1:38:40 PM                                                                                                                    
MS. WING-HEIER  replied no. She  explained that SB 134  includes a                                                              
timeframe for compliance  and indicated that it would  be a smooth                                                              
transition. She  shared her belief  that the legislation  is well-                                                              
written and noted  that it was vetted at the  National Association                                                              
of Insurance Commissioners (NAIC).                                                                                              
                                                                                                                                
1:39:10 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:39:40 PM                                                                                                                    
CHAIR BJORKMAN reconvened the meeting.                                                                                          
                                                                                                                                
1:39:49 PM                                                                                                                    
CHAIR BJORKMAN  opened public testimony  on SB 134;  finding none,                                                              
he closed public testimony.                                                                                                     
                                                                                                                                
1:40:08 PM                                                                                                                    
CHAIR BJORKMAN solicited a motion.                                                                                              
                                                                                                                                
1:40:13 PM                                                                                                                    
SENATOR BISHOP  moved to adopt  the committee substitute  (CS) for                                                              
SB 134, work order 33-LS0253\S, as the working document.                                                                        
                                                                                                                                
1:40:26 PM                                                                                                                    
CHAIR BJORKMAN objected for purposes of discussion.                                                                             
                                                                                                                                
1:40:35 PM                                                                                                                    
KONRAD  JACKSON,  Staff,  Senator  Jesse  Bjorkman,  Alaska  State                                                              
Legislature,  Juneau, Alaska,  explained  the  summary of  changes                                                              
for SB  134. He  explained that  the committee substitute  changes                                                              
the effective dates by moving each ahead by one year.                                                                           
                                                                                                                                
1:41:13 PM                                                                                                                    
CHAIR  BJORKMAN  removed  his  objection.   He  found  no  further                                                              
objection and CS for SB 134 was adopted as the working document.                                                                
                                                                                                                                
1:41:19 PM                                                                                                                    
CHAIR BJORKMAN invited discussion.                                                                                              
                                                                                                                                
1:41:45 PM                                                                                                                    
SENATOR  BISHOP  asked  if  there   is  a  timeline  for  the  new                                                              
regulations.                                                                                                                    
                                                                                                                                
1:41:53 PM                                                                                                                    
MS. WING-HEIER  replied that the  regulations would likely  take 6                                                              
months.                                                                                                                         
                                                                                                                                
1:42:19 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:42:22 PM                                                                                                                    
SENATOR BISHOP  moved to report  committee substitute (CS)  for SB
,  work  order  33-LS0253\S,  from  committee  with  individual                                                              
recommendations and attached fiscal note(s).                                                                                    
                                                                                                                                
1:42:48 PM                                                                                                                    
CHAIR BJORKMAN  found no further  objection and CSSB  134(L&C) was                                                              
reported from the Senate Labor and Commerce Standing Committee.