Legislature(2007 - 2008)BELTZ 211
03/04/2008 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB289 | |
| SB293 | |
| HB65 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 289 | TELECONFERENCED | |
| *+ | SB 293 | TELECONFERENCED | |
| + | HB 65 | TELECONFERENCED | |
| += | SB 147 | TELECONFERENCED | |
SB 293-ELECTRONIC COMMUNICATION DEVICES
2:11:12 PM
CHAIR ELLIS announced SB 293 to be up for consideration.
TREVOR FULTON, staff for Senator McGuire, sponsor of SB 293,
said this measure would regulate the use of Radio Frequency
Identification (RFID) in the state of Alaska. SB 293 is really a
consumer, personal and privacy protection bill that aims to nip
the potential for identify theft in the bud.
MR. FULTON informed them that RFID is a wireless technology that
typically includes three elements - a tag which has an antenna
and is capable of transmitting data, a reader which receives
data transmitted by the tag and a database that stores the data.
Examples are employee access passes like the cards we use to get
into the capitol, passes on a toll way, and implanted dog IDs.
He said a less obvious use of RFIDs is implanting ones in humans
that contain patient records for use in hospitals. He said that
many uses are very beneficial to businesses and people.
The convenience of using RFIDs could come at the cost of
security, however. Private information - like bank account
numbers, social security numbers and health records -
transmitted by RFID tags and stored in databases can leave
consumers vulnerable to identify theft. SB 293 aims to minimize
that vulnerability and protect personal and consumer privacy by
regulating the use of RFID technology in Alaska.
MR. FULTON said as RFID use becomes more widespread, it will
become increasingly important that consumers know what products
carry RFID tags and what businesses are using RFID technology in
order to obtain consumer consent and adopt minimum security
standards for RFID use like prohibiting scanning or remote
reading of an RFID tag without consent. It will become
increasingly important that enforcement measures for the misuse
of RFID devices are established. He said SB 293 accomplishes all
of these things and he urged that it's important to help the
regulations to keep pace with this useful growing technology.
2:16:04 PM
SENATOR BUNDE asked if Alaska has actual problems or are they
being proactive.
MR. FULTON answered that he wasn't aware of a current problem,
but evidence in other states shows that RFIDs have been hacked
and information has been stolen.
SENATOR BUNDE said the cell phone industry said this would be a
problem.
MR. FULTON responded that he had been talking to one of the cell
phone providers here who is encouraging that dialogue with their
engineers to make sure this bill doesn't needlessly impact
whatever plans they have for RFID use in the future.
SENATOR BUNDE said current passports have RFIDs and asked if SB
293 would somehow affect those.
MR. FULTON replied that he wasn't a lawyer, but there are no
federal regulations on RFID devices. He would look into how it
would affect passport use in Alaska.
2:18:08 PM
ED SNIFFEN, Assistant Attorney General, Consumer and Anti-trust
Protection, Department of Law (DOL), Anchorage, responded to the
question about problems in Alaska by saying he doesn't get any
direct complaints about this technology, but he wouldn't be
surprised if some identity theft victims in Alaska have had
their identity stolen as a result of new technology that is able
to remotely scan and get information. He said he supports
consumer protection bills like this that will inform the
consumer about the issue as well.
2:20:01 PM
ALLISON FLEMING, EPC Global, said EPC is a not-for-profit
standards organization working on international standards for
radio frequency identification applications. Industries that
participate in the standards development process include
aerospace, retail, entertainment, defense, health care,
chemical, pharmaceutical, transportation and logistics. These
industries use something called the electronic product code,
which as an RFID application. The EPC is a unique number that is
used to identify a specific item in a supply chain similar to a
string of numbers on a bar code. This unique number is stored on
an RFID tag which combines a silicon chip and an antenna. Once
the EPC is read from the tag it can be associated with data
stored in a secure database where other information can be found
like the date of its production or where it originated. EPC RFID
tags don't carry an individual's personal identifiable
information.
MS. FLEMING said RFID technology is in its infancy now. In the
short term it will be at the container, case, and pallet level.
In a retail supply chain it is used to mechanically read the EPC
on items as diverse as computer printers or a case of diapers.
An EPC gives more information about a product than a typical bar
code and in the future could expedite supply chain applications.
It can help reduce counterfeiting in a variety of product
categories from toys to electronics. It has the potential to
save lives to help prevent counterfeit drugs from reaching
consumers by tracking products from their source.
2:23:01 PM
She said consumer privacy and trust are very important to the
adoption of any new technology. She noted further that their
consumer guidelines include giving consumers clear notice of the
presence of an EPC on a product and informing them of the
choices they have to discard or remove or disable an EPC tag
from a product. They will have access to information about EPC
and its applications as well as the companies that use, maintain
and protect records generated through the EPC in compliance with
all applicable laws. These guidelines are flexible and allow for
enhancements and modifications as the technology continues to
evolve. The next years will be crucial for this technology and
laws should not stifle innovation or delay the potential
benefits for consumers and businesses in Alaska. She urged them
to be prudent and pragmatic in considering measures to regulate
EPC or RFID technology.
2:24:03 PM
SENATOR BUNDE asked her if this bill was prudent.
MS. FLEMING answered no, not at this point. Requiring the
specific type of notice, written consent and deactivation at the
point of sale could hurt the technology as it's currently
evolving.
CHAIR ELLIS asked the status in other state with regards to
statutes along this line.
MS. FLEMING answered that Washington State has a bill that would
just affect the illegal use or scanning of an RFID tag for
fraud. SB 293 is comprehensive, and she hasn't seen anything
like it adopted.
2:25:29 PM
BEN ADERSON, American Electronics Association (AEA), echoed
EPC's testimony. Their concerns about SB 293 are very similar;
it goes well beyond banning bad behavior and restricts a very
beneficial technology. It provides enormous security. Hacking
hasn't happened even though there are claims it has.
MR. ADERSON said this would be landmark legislation, but the
reason other states have not enacted it is the detrimental
affect it can have on small businesses. Generally information is
used from warehouse to warehouse.
2:29:18 PM
TERRY BANNISTER, Department of Law, was available to answer
questions.
CHAIR ELLIS said he would hold SB 293 for further work.
2:30:06 PM
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