Legislature(1999 - 2000)

04/10/2000 01:28 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 164 - FISH & GAME LICENSING BY ELECTRONICS                                                                                 
                                                                                                                                
Number 0362                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced  that the next order of  business would be                                                              
HOUSE BILL  NO. 164,  "An Act relating  to electronic  application                                                              
for and  issuance of  licenses, permits,  and  tags issued  by the                                                              
Department of  Fish and Game;  to violations regarding  a license,                                                              
permit,  or  tag   applied  for  or  issued   electronically;  and                                                              
providing for an effective date."   [The bill was sponsored by the                                                              
House Rules  Committee  by request  of the Governor.   Before  the                                                              
committee was CSHB 164(RES).]                                                                                                   
                                                                                                                                
Number 0429                                                                                                                     
                                                                                                                                
KEVIN  BROOKS,  Director,  Division  of  Administrative  Services,                                                              
Alaska Department of Fish & Game  (ADF&G), came forward to explain                                                              
the need for  the legislation.  Noting that administration  of the                                                              
licensing  program  falls under  his  purview,  he said  ADF&G  is                                                              
undertaking  an  ongoing  effort   to  modernize,  streamline  and                                                              
enhance  customer  service in  the  licensing program.    Although                                                              
ADF&G  has   instituted  an   Internet  application   process  for                                                              
individuals  to apply for  hunting or  fishing licenses,  it still                                                              
involves paper.   Now ADF&G hopes  to provide, in statute,  for an                                                              
opportunity  to issue a  license electronically.   That  follows a                                                              
natural  progression of  what  the department  has  done with  the                                                              
Internet   application    and   some   1-800    telephone   number                                                              
applications,  as  well  as other  attempts  to  enhance  customer                                                              
service.                                                                                                                        
                                                                                                                                
MR.  BROOKS informed  the  committee that  ADF&G  is working  with                                                              
other states  to determine  the best practices.   Some  states use                                                              
their lottery systems, while others  use a so-called smart number.                                                              
There  are  any  number  of  ways  to  approach  the  issuance  of                                                              
licenses.   In any case,  ADF&G wants  to keep up with  technology                                                              
and make it easy for both residents  and nonresidents to apply for                                                              
and receive licenses.                                                                                                           
                                                                                                                                
Number 0558                                                                                                                     
                                                                                                                                
MR.  BROOKS explained  the current  Internet application  process.                                                              
An individual goes online to order  a license - hunting or fishing                                                              
tags  - and pays  with a  credit card;  within a  couple of  days,                                                              
ADF&G  sends  that license  to  the  applicant.   Eventually,  the                                                              
department wants to  be able to let someone "hit  the field" right                                                              
away, which  might entail a  smart number or identification  card.                                                              
He pointed out  that ADF&G is trying to determine  what would work                                                              
best in  Alaska, including working  with the Department  of Public                                                              
Safety (DPS) and the Department of  Law to ensure that enforcement                                                              
or prosecution efforts by those departments  aren't compromised by                                                              
whatever  ADF&G does  with licensing.   The  bill addresses  those                                                              
concerns so that  ADF&G has a consensus with DPS  on anything they                                                              
might do.                                                                                                                       
                                                                                                                                
Number 0617                                                                                                                     
                                                                                                                                
CHAIRMAN  KOTT asked whether  the department  issues any  licenses                                                              
over the Internet using a secure means.                                                                                         
                                                                                                                                
MR. BROOKS  indicated that ultimately  the whole process  might be                                                              
paperless.  The  application process on the Internet  is paperless                                                              
now,  but still  involves the  department  to mail  out a  license                                                              
afterwards;  that system  was brought  up on  the Internet  around                                                              
November 1.  A person who signs on  to ADF&G's website can go into                                                              
that  application, and  punch in  the  credit card  number.   That                                                              
system has  sold a couple of  thousand of those  licenses already,                                                              
and they expect that to take off  with the season approaching.  In                                                              
addition, they are  looking at McNeil River permits,  proxy hunts,                                                              
personal use permits,  and [drawings for hunts]  that the Division                                                              
[of  Wildlife   Conservation]  implements,   for  example.     The                                                              
department views those as opportunities  to reach out to customers                                                              
and make it easier  for them to get licenses so  that they can hit                                                              
the field and enjoy the resources.                                                                                              
                                                                                                                                
CHAIRMAN  KOTT  asked whether  ADF&G  notifies  a person  who  has                                                              
applied over the Internet that the  application has been received.                                                              
                                                                                                                                
MR. BROOKS  answered that  ADF&G's system works  much in  the same                                                              
way  as  it would  if  signing  on  to  any other  entity  on  the                                                              
Internet; there  is a confirmation  online with a code,  and ADF&G                                                              
will ship out a license within 48  hours.  It is working fine, and                                                              
that is  how he  bought his  own license  for the  year 2000.   He                                                              
noted that  people have  been "hitting" the  site from  Europe and                                                              
the Lower 48.  That piece is in place and working quite well.                                                                   
                                                                                                                                
Number 0758                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked if the bill sets  out that the license will be                                                              
sent out in 48 hours.                                                                                                           
                                                                                                                                
MR. BROOKS pointed out that HB 164  does not address the issuance.                                                              
He  reiterated that  the department  is  already able  to do  that                                                              
under current  statute.   The policy has  been to turn  around the                                                              
issuance of the license within 48  hours in order to ensure that a                                                              
person in  the Lower 48  has the license  in his/her  hands before                                                              
leaving for  their trip.   He posed  a situation  under HB  164 in                                                              
which someone  from the Lower 48,  who had not obtained  a license                                                              
before coming in to Alaska, would  be able to purchase the license                                                              
via  the Internet  and receive  a confirmation  number that  would                                                              
allow the person  to hunt or fish  without having to wait  for the                                                              
paper license.                                                                                                                  
                                                                                                                                
CHAIRMAN KOTT asked if the confirmation  number would be what such                                                              
an individual would need to show an officer in the field.                                                                       
                                                                                                                                
MR.  BROOKS explained  that  the "smart  number"  would be  easily                                                              
identifiable by  an enforcement officer.   The bill  would require                                                              
that those purchasing their license  in this manner would agree to                                                              
carry a picture identification.   Therefore, it would enhance what                                                              
[the Department of]  Public Safety currently has  because only the                                                              
license is currently required.  He  informed the committee that in                                                              
some states  the first  four or so  digits are randomly  generated                                                              
and  then others  would  be encoded  to  indicate gender,  weight,                                                              
height  and  hair  color.    Therefore,   the  number  with  photo                                                              
identification  would allow  one to  determine whether  it is  the                                                              
appropriate individual.   Furthermore,  the number would  indicate                                                              
the  type of  license.   This  type  of number  has  been used  in                                                              
Georgia and other states.                                                                                                       
                                                                                                                                
Number 0960                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  inquired  as  to  how  an  individual's                                                              
residency would be verified.                                                                                                    
                                                                                                                                
MR. BROOKS noted that the smart number  is one concept of how this                                                              
could work.  With  a smart number, one of the  items that would be                                                              
encoded  in  the number  would  be  whether  the individual  is  a                                                              
resident or a nonresident.                                                                                                      
                                                                                                                                
REPRESENTATIVE MURKOWSKI posed a  situation in which an individual                                                              
from Oklahoma  applies for  a license over  the Internet  and says                                                              
that he/she  is an Alaskan resident.   She inquired as  to how the                                                              
department  would  confirm  this  individual  is  not  an  Alaskan                                                              
resident and would be required to pay the out-of-state fees.                                                                    
                                                                                                                                
MR. BROOKS informed  the committee that such has  been encountered                                                              
with the  current Internet application.   Therefore,  the Internet                                                              
license  includes the  same affirmation  that is  included on  the                                                              
paper license.   He pointed out that  there is no greater  risk of                                                              
this  over  the  Internet  than  already  would  exist  for  paper                                                              
applicants.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI pointed  out that  when she obtains  her                                                              
fishing license  every year, she  has to show her  Alaska driver's                                                              
license.  She  stressed her understanding that in  order to obtain                                                              
a  license  [at the  Alaskan  residency  rate],  one has  to  show                                                              
Alaskan identification.                                                                                                         
                                                                                                                                
MR. BROOKS clarified  that photo identification  is not absolutely                                                              
required, although [an Alaskan driver's license] is often used.                                                                 
                                                                                                                                
REPRESENTATIVE MURKOWSKI  asked if the application  says, "I swear                                                              
or affirm  that everything  that I've said  is true and  that this                                                              
may be subject to a penalty if I'm lying."                                                                                      
                                                                                                                                
MR.  BROOKS agreed  that  "in  so many  words"  that  is what  the                                                              
application   says.    In   further  response  to   Representative                                                              
Murkowski,  Mr.  Brooks  affirmed  that there  are  penalties  for                                                              
fraud.   He  noted that  [the department]  has  been working  very                                                              
closely  with the Department  of  Law and the  Division of  Public                                                              
Safety  in  order  to  ensure  that   nothing  is  being  done  to                                                              
compromise their efforts.                                                                                                       
                                                                                                                                
Number 1149                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI  commented that she hated to  make it too                                                              
easy  for someone  [to  receive  the  Alaska rate  through  fraud]                                                              
without any verification.  She recognized  that the current system                                                              
is not foolproof either.                                                                                                        
                                                                                                                                
MR.  BROOKS remarked  that  the same  discussions  have been  held                                                              
internally [in  the department].   There will always be  those who                                                              
will try  to "get  over" and  cheat [the  system].  He  questioned                                                              
whether making  this easier for  the general population,  that are                                                              
honest,  would encourage  others  to be  criminals  who would  not                                                              
otherwise be.   He indicated that what was determined  [from those                                                              
internal  discussions]  was  that    simplifying  the  application                                                              
process  would  not  necessarily  make  criminals  out  of  honest                                                              
people.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  mentioned   reviewing  the   penalties                                                              
associated with lying on an application and strengthening those.                                                                
                                                                                                                                
CHAIRMAN KOTT  inquired as  to how  lost licenses or  confirmation                                                              
numbers would be handled.                                                                                                       
                                                                                                                                
MR.  BROOKS answered  that currently  an individual  can obtain  a                                                              
duplicate.   In regard to a  lost confirmation number,  that could                                                              
be called  in and  confirmed over  the phone  in order to  provide                                                              
that lost  number.   This could be  done after providing  adequate                                                              
information so  that the department  knew who the  individual was.                                                              
He  likened the  process to  that of  calling in  for credit  card                                                              
information  in   which  the  company  requests   information  for                                                              
verification that the individual  speaking is who he/she claims to                                                              
be.                                                                                                                             
                                                                                                                                
MR.  BROOKS returned  to Representative  Murkowski's comments  and                                                              
noted that  perhaps, the  example of the  person coming  to Alaska                                                              
for a  short fishing trip  is not the best.   The person  who will                                                              
really  be offended  by the  nonresident  fees would  be a  person                                                              
purchasing an annual license.                                                                                                   
                                                                                                                                
Number 1321                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT understood,  then, that an individual  would have to                                                              
have in his/her possession, some form of identification.                                                                        
                                                                                                                                
MR. BROOKS  explained that if  an individual, with  a confirmation                                                              
number,   is  out   in   the  field   he/she   must  carry   photo                                                              
identification,   which   is   more   than   under   the   current                                                              
requirements.   He noted that this  electronic system is  meant to                                                              
compliment the current paper system not replace it.                                                                             
                                                                                                                                
CHAIRMAN  KOTT  surmised, then,  that  [the requirement  to  carry                                                              
photo  identification] would  address  the problem  of an  out-of-                                                              
state  resident that  may  want to  defraud  the  State of  Alaska                                                              
because the person  would have to present photo  identification, a                                                              
license from the State of Alaska.                                                                                               
                                                                                                                                
REPRESENTATIVE CROFT mentioned [the  possibility of folks claiming                                                              
to  be]  senior citizens  [in  order  to  pay the  reduced  senior                                                              
citizen fee] of $5 for a license.                                                                                               
                                                                                                                                
CHAIRMAN  KOTT inquired  as to how  Canadians  from the Yukon  are                                                              
handled.                                                                                                                        
                                                                                                                                
MR.   BROOKS  pointed   out  that   this   licensing  program   is                                                              
administered  through a  network of  1,500 vendors  "and so  we're                                                              
going to go to all our Haines vendors  and say, 'Oh, by the way if                                                              
you get someone  from the Yukon,  with this zip code  or whatever,                                                              
sell them  a resident  license.'"  He  acknowledged that  would be                                                              
problematic.  However, if that passes,  [the department] will poll                                                              
its database  and send  out a letter  saying that the  legislature                                                              
has  allowed Yukon  residents to  be  treated as  Alaskans.   This                                                              
would be sent  to those who have  purchased a license in  the past                                                              
and the individual  would be notified of the ability  to apply via                                                              
the Internet, which  would not place a burden on  the vendors.  He                                                              
commented that [the  department] would not initiate  it, but could                                                              
do it.                                                                                                                          
                                                                                                                                
Number 1460                                                                                                                     
                                                                                                                                
CHAIRMAN  KOTT asked  what  the net  cost would  be  of using  the                                                              
Internet to purchase the license via VISA.                                                                                      
                                                                                                                                
MR. BROOKS  explained that  what is contemplated  under HB  164 is                                                              
that  there  be a  compensation  system  that  pays the  vendor  5                                                              
percent of the gross sales plus $1  per item sold.  Therefore, for                                                              
a $25 license it  would amount to $2.25.  He pointed  out that the                                                              
bill limits the  compensation for an electronic  vendor by capping                                                              
the amount  at the lesser of  the existing compensation  or $3.00.                                                              
Therefore,  Mr.  Brooks  envisioned   this  to  occur  within  the                                                              
confines of the existing compensation package for the vendor.                                                                   
                                                                                                                                
CHAIRMAN KOTT  suggested having this  available at a kiosk  in the                                                              
Anchorage International Airport.                                                                                                
                                                                                                                                
MR. BROOKS  commented,  "Just wait."   He also  commented that  in                                                              
order to have a kiosk in the Anchorage  International Airport, the                                                              
license process  would almost  have to  be paperless.   Otherwise,                                                              
someone would  have to be  present to  issue the license  or tags.                                                              
He  reiterated  that this  [Internet  application]  is  seen as  a                                                              
compliment to  the existing  system.  He  noted that with  a kiosk                                                              
system, the  kiosk could be placed  in some of the  larger stores,                                                              
which he  indicated would be mutually  beneficial as the  store is                                                              
really   interested  in   outfitting  the   individual  and   [the                                                              
department] is interested in obtaining  a database and issuing the                                                              
license.    Mr. Brooks  pointed  out  that  this system  would  be                                                              
helpful to  the extent that  individuals themselves can  enter the                                                              
data and there can be a real time updated database.                                                                             
                                                                                                                                
REPRESENTATIVE  MURKOWSKI inquired  as to  what would happen  with                                                              
the king  salmon tags as  the proposed  system would not  have the                                                              
capability.                                                                                                                     
                                                                                                                                
MR. BROOKS  acknowledged that  this is one  of the obstacles.   He                                                              
remarked that in  some cases the back of the license  is used as a                                                              
harvest record.   He noted  that big  game tags also  pose another                                                              
challenge.  Therefore,  [the department] will be  required to work                                                              
with Public Safety  in order to avoid a situation  in which Public                                                              
Safety is compromised.   In regard to the king  salmon stamp, that                                                              
is a revenue generator.  The thinking  is that a number could also                                                              
be assigned  to the king salmon  stamp.  However, the  duck stamps                                                              
and the waterfowl stamps have an  art aspect and thus it will take                                                              
some work to iron  these things out.  Still, the  statutes need to                                                              
be  in place  to move  forward  on this  and  eliminate the  paper                                                              
requirement.                                                                                                                    
                                                                                                                                
CHAIRMAN KOTT  called an at-ease  at 5:03 p.m. and  reconvened the                                                              
meeting  in less  than  a minute.    He noted  that  there was  no                                                              
additional testimony.                                                                                                           
                                                                                                                                
Number 1734                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI moved  to  report CSHB  164(RES) out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
zero fiscal  notes.  There being  no objection, it was  so ordered                                                              
and CSHB 164(RES)  was reported from the House  Judiciary Standing                                                              
Committee.                                                                                                                      

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