Legislature(2021 - 2022)BARNES 124

01/21/2022 03:15 PM House LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

Audio Topic
03:16:46 PM Start
03:17:32 PM HB159
03:35:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                HB 159-CONSUMER DATA PRIVACY ACT                                                                            
3:17:32 PM                                                                                                                    
CO-CHAIR  SPOHNHOLZ announced  that  the only  order of  business                                                               
would be  HOUSE BILL NO.  159, "An Act establishing  the Consumer                                                               
Data   Privacy  Act;   establishing   data  broker   registration                                                               
requirements;  making a  violation of  the Consumer  Data Privacy                                                               
Act an unfair  or deceptive trade practice; and  providing for an                                                               
effective date."                                                                                                                
3:18:00 PM                                                                                                                    
REPRESENTATIVE  SCHRAGE moved  to  adopt  the proposed  committee                                                               
substitute  (CS)  for  HB 159,  Version  32-GH1573\I,  Bannister,                                                               
1/14/22,  as the  working document.   There  being no  objection,                                                               
Version I was before the committee.                                                                                             
3:18:38 PM                                                                                                                    
CO-CHAIR  FIELDS explained  the  changes that  were  made in  the                                                               
committee substitute.  He said  that the exceptions were adjusted                                                               
to ensure  that businesses providing tangible  goods and services                                                               
in Alaska  would not be  unintentionally covered under  the bill,                                                               
which would include everything from  logistics to construction to                                                               
retail companies.  He noted that  that would not be the intent of                                                               
this bill,  and therefore it  was rewritten to ensure  that there                                                               
were  no  unintentionally  burdensome regulations.    The  second                                                               
change that was made, he  continued, was the strengthening of the                                                               
language  around individuals'  biometric  information.   He  said                                                               
that  this  is  an  area  where  there's  been  rapidly  evolving                                                               
technology in corresponding changes  to necessary laws to protect                                                               
people's  biometric  information.   He  added  that the  language                                                               
regarding  protection of  minors has  also been  strengthened, in                                                               
addition to the language around  enforcement.  He stated that the                                                               
importance  of these  topics has  been  communicated by  consumer                                                               
rights and privacy advocates during 2021.                                                                                       
3:20:15 PM                                                                                                                    
TRISTAN  WALSH,   Staff,  Representative  Fields,   Alaska  State                                                               
Legislature,  offered   the  Sectional  Analysis  on   behalf  of                                                               
Representative Fields,  prime sponsor  of HB  159.   He presented                                                               
the Sectional Analysis [hard copy  included in committee packets]                                                               
which read as follows [original punctuation provided]:                                                                          
     1. Sec 9:  p 8, lines 21-26:  Consolidated AS 45.48.805                                                                  
     (a) and (b)  into (e); renamed accordingly.  (It is now                                                                    
     2.  Sec 9:  p 12,  lines 9  and 10:  Conforming change.                                                                  
     Inserted "share or disclose" following "sell'.                                                                             
     3.  Sec 9:  p 13,  line 19:  Conforming change.  Insert                                                                  
     ",disclose, use or" following "sell".                                                                                      
     4.  Sec 9,  p  19, line  14:  AS 45.48.865(e)  expanded                                                                  
     exemptions to include all business types.                                                                                  
     5. Sec 9: p 22; line  28: Replace "On or before January                                                                  
     31 following  each calendar year  that a business  is a                                                                    
     data broker"  with "Before a business  begins operating                                                                    
     as a  data broker".  This eliminates  a period  where a                                                                    
     business  could  engage  in  these  activities  without                                                                    
          having to register as a data broker with the                                                                          
3:24:22 PM                                                                                                                    
REPRESENTATIVE   SNYDER   asked   Mr.  Walsh   to   explain   the                                                               
distinctions between excluded business  types, and to provide any                                                               
specifics regarding  the characteristics of  impacted businesses,                                                               
such as the size and location of the business.                                                                                  
MR. WALSH responded  that if there was a  one-time transaction in                                                               
which  the  business  is  using  the  transaction  to  fulfill  a                                                               
consumer's  request,  the  business  would be  exempt  from  this                                                               
legislation.   He  said  that there  are  protections within  the                                                               
legislation  for  services that  are  reasonably  related to  the                                                               
service that the  consumer is requestion.  For  example, he said,                                                               
if a  consumer joins a  rewards club  for groceries, it  would be                                                               
reasonable  to expect  solicitations for  grocery discounts.   He                                                               
explained that  the explicit exceptions  in the  legislation were                                                               
intended to  ensure that  the internal  conduct of  companies and                                                               
corporations  that are  not necessarily  involved in  the outward                                                               
sale,  share,  or disclosure  of  consumers'  information is  not                                                               
3:26:16 PM                                                                                                                    
CO-CHAIR FIELDS added  that the first version of  the bill, which                                                               
was introduced by the administration,  had some dollar and volume                                                               
figures  of  individual's  private  information  that  was  being                                                               
"shared".   In  Version I,  that  threshold was  changed to  only                                                               
cover  companies  that  primarily  deal  in  buying  and  selling                                                               
consumer information,  or specifically  perform a high  volume of                                                               
data activity.   Companies that  simply have a lot  of consumers'                                                               
private information would  not be impacted by  the legislation in                                                               
its current form, he explained.                                                                                                 
3:28:28 PM                                                                                                                    
REPRESENTATIVE KAUFMAN  asked for an  explanation of how  it will                                                               
be  ensured   that  the  most  up-to-date   standards  are  being                                                               
satisfied  by this  legislation, and  that it  won't soon  become                                                               
3:29:06 PM                                                                                                                    
MAUREEN  MAHONEY,   Senior  Policy  Analyst,   Consumer  Reports,                                                               
responded that the  bill would provide strong  protection for the                                                               
consumers  and   would  be  at   the  "cutting  edge"   of  these                                                               
protections  because, by  default,  it  would protect  consumers'                                                               
privacy.   She  added  that  companies would  be  limited in  the                                                               
collection and  sharing of data  to what is  reasonably necessary                                                               
to provide  a consumer's request  of service.  She  expressed her                                                               
understanding  that the  unnecessary  collection  and sharing  of                                                               
data is the  source of many of the problems  of consumers online.                                                               
She  said that  legislation in  other states  like California  is                                                               
based on  an "opt-out" model,  which requires consumers  to reach                                                               
out to every single company  that is collecting and sharing data,                                                               
which she said is seemingly not worth it for consumers.                                                                         
3:30:58 PM                                                                                                                    
MICHAEL GARVEY,  Director, American Civil Liberties  Union (ACLU)                                                               
of Alaska,  testified in support of  HB 159.  He  spoke about the                                                               
critical need for civil rights  protections that legislation like                                                               
this offer.   He said that committee members may  have read about                                                               
discriminatory  advertisements  for   housing  or  employment  as                                                               
companies collect more and more  personal information, and as the                                                               
use of  automated decision systems  grows, he expressed  that the                                                               
potential  for   harm  caused  by   the  use  of   that  personal                                                               
information can  increase as well.   He shared  his understanding                                                               
that,  ideally,  consumer  privacy  legislation  should  prohibit                                                               
companies  from  using  personal  information in  a  manner  that                                                               
discriminates against people on the  basis of race, gender sexual                                                               
orientation,    gender    identity,     and    other    protected                                                               
characteristics, ensuring that civil  rights are protected online                                                               
and everywhere.   He noted that examples of this  can be found in                                                               
strong  consumer privacy  legislation elsewhere  in the  country,                                                               
like the People's  Privacy Act in the State of  Washington, or in                                                               
the State of Massachusetts, the Information Privacy Act.                                                                        
MR. GARVEY continued that the  legislation also contains many key                                                               
concepts related  to consumer privacy that  ACLU finds important,                                                               
such as the private right  of action, attention to biometric data                                                               
prohibition  of  dark  patterns, and  retaliation  provisions  to                                                               
prevent   preferential  pricing   and   economic  conversion   of                                                               
customers.      He  shared  that  the  ACLU  is  still  reviewing                                                               
legislative language  of these provisions  expressed appreciation                                                               
to  the  committee   for  its  hard  work   and  recognizing  the                                                               
importance  of those  provisions.   He added  that he  would also                                                               
second  the  importance of  an  opt-in  model versus  an  opt-out                                                               
3:33:31 PM                                                                                                                    
CO-CHAIR SPOHNHOLZ announced that HB 159 was held over.                                                                         

Document Name Date/Time Subjects
HB 159 ver. I 1.20.22.pdf HL&C 1/21/2022 3:15:00 PM
HB 159
HB 159 Letter of Opposition - CCAGW 1.18.22.pdf HL&C 1/21/2022 3:15:00 PM
HB 159
HB 159 Summary of Changes Ver B to Ver I 1.20.2022.pdf HL&C 1/21/2022 3:15:00 PM
HB 159