Legislature(2005 - 2006)CAPITOL 17

04/15/2005 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSHB 181(L&C) Out of Committee
Moved Out of Committee
Bills Previously Heard/Scheduled
Moved CSHB 226(L&C) Out of Committee
HB 226-PERSONAL INFORMATION BREACH                                                                                            
REPRESENTATIVE KOTT  announced that  the first order  of business                                                               
would be  HOUSE BILL  NO. 226,  "An Act  relating to  breaches of                                                               
security involving  personal information; and relating  to credit                                                               
report security  freezes."  [Before  the committee was  CSHB 226,                                                               
Version 24-LS0689\I.)                                                                                                           
REPRESENTATIVE KOTT reminded  the committee that HB  226 had been                                                               
held  over for  amendments  and that  public  testimony had  been                                                               
closed at the prior hearing.                                                                                                    
3:30:17 PM                                                                                                                    
REPRESENTATIVE   GUTTENBERG  moved   that  the   committee  adopt                                                               
Amendment 1, which read:                                                                                                        
     Page 1, lines 7 - 8:                                                                                                       
          Delete "engages in business activities in the                                                                         
     state, uses in the business"                                                                                               
          Insert "engages in activities in the state, uses"                                                                     
     Page 2, line 3:                                                                                                            
          Delete ""business activities in the state" means                                                                      
     business activities"                                                                                                       
          Insert   ""activities   in    the   state"   means                                                                    
     Page 2, line 5:                                                                                                            
          Delete "business"                                                                                                     
     Page 2, line 17:                                                                                                           
          Delete "business"                                                                                                     
          Insert "person"                                                                                                       
     Page 2, line 18:                                                                                                           
          Delete "business"                                                                                                     
          Insert "person"                                                                                                       
     Page 2, line 19:                                                                                                           
          Delete "person"                                                                                                       
          Insert "individual"                                                                                                   
     Page 2, line 24:                                                                                                           
          Delete "for the business"                                                                                             
     Page 2, line 31:                                                                                                           
          Delete "business"                                                                                                     
          Insert "person's activities"                                                                                          
     Page 3, line 2:                                                                                                            
          Delete "business"                                                                                                     
          Insert "person's activities"                                                                                          
     Page 3, line 19:                                                                                                           
          Delete "business"                                                                                                     
          Insert "person"                                                                                                       
     Page 3, following line 19:                                                                                                 
     Insert a new paragraph to read:                                                                                            
               "(2)  "person" means a business entity or a                                                                      
       state or local governmental body, subdivision, or                                                                        
      agency, except for an agency of a judicial branch of                                                                      
     state government."                                                                                                         
     Renumber the following paragraph accordingly.                                                                              
REPRESENTATIVE ROKEBERG objected for discussion purposes.                                                                       
REPRESENTATIVE  LES  GARA,  Alaska  State  Legislature,  sponsor,                                                               
explained that  Amendment 1 addresses  the desire  for government                                                               
to  inform an  individual when  it accidentally  breaches his/her                                                               
REPRESENTATIVE GUTTENBERG asked  if there have been  any cases in                                                               
which the government has had this problem.                                                                                      
REPRESENTATIVE GARA  replied no,  but indicated that  there could                                                               
be such a case in the future.                                                                                                   
3:31:51 PM                                                                                                                    
REPRESENTATIVE  ROKEBERG directed  attention to  page 1,  line 7,                                                               
which  says, "If  a person  engages in  business activity  in the                                                               
state".  He  expressed concern with the use of  the term "person"                                                               
because per  the drafting  manual that term  would be  defined as                                                               
including a business.                                                                                                           
REPRESENTATIVE GARA  said that  the term  "person" is  defined in                                                               
statute to include  business, and with Amendment 1  it would also                                                               
include the  state.   He relayed  that the  intention is  to make                                                               
this  apply to  businesses that  hold one's  personal information                                                               
and the term "person" is defined to include companies as well.                                                                  
3:32:58 PM                                                                                                                    
REPRESENTATIVE ROKEBERG asked if  the term "person" includes that                                                               
a "person is a person" and not some other entity.                                                                               
REPRESENTATIVE  GARA  agreed that  the  term  "person" should  be                                                               
defined to include a "person."                                                                                                  
3:33:23 PM                                                                                                                    
REPRESENTATIVE  ROKEBERG  commented that  there  seems  to be  an                                                               
intertwining between activities, business, and persons.                                                                         
REPRESENTATIVE  LYNN  related  his   understanding  then  that  a                                                               
"person" can be a corporate entity or an individual.                                                                            
3:34:39 PM                                                                                                                    
REPRESENTATIVE  KOTT  clarified  that corporations  and  business                                                               
entities   are  now   considered  "persons"   while  people   are                                                               
REPRESENTATIVE ROKEBERG  pointed out  that under Amendment  1 the                                                               
definition of "person" doesn't include people.                                                                                  
3:36:07 PM                                                                                                                    
REPRESENTATIVE GARA  acknowledged that at  some time there  was a                                                               
decision  to define  "person" as  something that  doesn't include                                                               
people.   In order to  be clear, Representative Gara  stated that                                                               
HB  226  is  intended  to   apply  to  businesses,  corporations,                                                               
[individuals], and governments.                                                                                                 
3:36:32 PM                                                                                                                    
REPRESENTATIVE GARA clarified  that the term "person"  in the law                                                               
and HB  226 refer  to a governmental  entity, a  business entity,                                                               
and a person.                                                                                                                   
REPRESENTATIVE  ROKEBERG said  that the  legislation doesn't  say                                                               
that and in fact, says that the judicial branch is excluded.                                                                    
3:37:07 PM                                                                                                                    
REPRESENTATIVE GARA agreed  that Amendment 1 could  be amended to                                                               
insert that a "person" includes a person.                                                                                       
REPRESENTATIVE GUTTENBERG inquired as  to why the judicial branch                                                               
is  being  excluded.    He   then  inquired  as  to  whether  the                                                               
definition of "person" is different than what's in statute.                                                                     
REPRESENTATIVE ROKEBERG  opined that it's fairly  consistent with                                                               
the law.                                                                                                                        
REPRESENTATIVE  KOTT   pointed  out  that  Amendment   1  deletes                                                               
"person" and inserts "individual".                                                                                              
REPRESENTATIVE GARA  noted that  there is a  statutory definition                                                               
of  "person."    [Within  Amendment  1],  the  bill  drafter  was                                                               
responding to  the suggestion  that HB 226  should also  apply to                                                               
governmental  entities,  and  thus   drafted  it  such  that  the                                                               
definition of "government entity" includes a person.                                                                            
3:38:59 PM                                                                                                                    
REPRESENTATIVE GARA suggested that perhaps  at the end of line 20                                                               
on page 2  the following could be inserted, ",  and as defined in                                                               
AS  01.10.060".    He  pointed  out  that  in  AS  01.10.060  the                                                               
definition of "person"  is as  follows:  "(8) "person" includes a                                                               
corporation,    company,    partnership,    firm,    association,                                                               
organization, business  trust, or society,  as well as  a natural                                                               
person;".     However,   that   definition   doesn't  include   a                                                               
governmental  entity, which  is why  the drafter  had to  include                                                               
"government entity" on line 18.                                                                                                 
REPRESENTATIVE  ROKEBERG characterized  that as  "awfully sloppy"                                                               
because there would be two definitions of "person."                                                                             
3:39:58 PM                                                                                                                    
REPRESENTATIVE KOTT  asked if the  language in AS  01.10.060 that                                                               
defines  "person"   could  be  utilized   as  well   as  language                                                               
specifying  that  the definition  of  "person"  also includes  "a                                                               
governmental entity" in AS 45.                                                                                                  
REPRESENTATIVE GARA replied yes.                                                                                                
3:41:00 PM                                                                                                                    
REPRESENTATIVE  KOTT,   upon  determining  that   his  suggestion                                                               
addressed   Representative   Rokeberg's  concern,   [offered]   a                                                               
conceptual amendment to  Amendment 1 such that  "person" would be                                                               
defined as  it is under  AS 01.10.060 and include  a governmental                                                               
REPRESENTATIVE GUTTENBERG accepted that as a friendly amendment.                                                                
3:42:02 PM                                                                                                                    
REPRESENTATIVE  ROKEBERG  said  that  he  didn't  object  to  the                                                               
conceptual amendment  to Amendment 1.   [Amendment 1  was treated                                                               
as adopted.]                                                                                                                    
REPRESENTATIVE KOTT announced then  that Amendment 1, as amended,                                                               
was before the committee.                                                                                                       
REPRESENTATIVE ROKEBERG removed his objection.                                                                                  
There being  no further objection,  Amendment 1, as  amended, was                                                               
REPRESENTATIVE  LYNN  moved  to  report  CSHB  226,  Version  24-                                                               
LS0689\I,   as  amended,   out  of   committee  with   individual                                                               
recommendations  and the  accompanying zero  fiscal note.   There                                                               
being no  objection, CSHB  226(L&C) was  reported from  the House                                                               
Labor and Commerce Standing Committee.                                                                                          

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