Legislature(2017 - 2018)SENATE FINANCE 532

05/11/2017 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 79 OPIOIDS;PRESCRIPTIONS;DATABASE;LICENSES TELECONFERENCED
Heard & Held
+= HB 111 OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 34 DRIVER'S LICENSE & ID CARDS & REAL ID ACT TELECONFERENCED
Heard & Held
SENATE BILL NO. 34                                                                                                            
                                                                                                                                
     "An Act  relating to the implementation  of the federal                                                                    
     REAL  ID  Act of  2005;  and  relating to  issuance  of                                                                    
     identification   cards  and   driver's  licenses;   and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
2:48:34 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon announced the history of the bill in the                                                                     
committee.                                                                                                                      
                                                                                                                                
Vice-Chair Bishop MOVED to ADOPT the committee substitute                                                                       
for SB 34, Work Draft 30-GS1781\T (Martin, 5/11/17).                                                                            
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
2:49:42 PM                                                                                                                    
                                                                                                                                
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, remarked that                                                                        
the CS was drafted because of various discussions.                                                                              
                                                                                                                                
Ms. Lucky addressed the Sectional/Explanation of Changes                                                                        
(copy on file):                                                                                                                 
                                                                                                                                
     Section   1:  NEW:   Intent  language   added  by   the                                                                    
     legislature should  continue efforts to amend  the REAL                                                                    
     ID Act to protect the privacy of Alaskans.                                                                                 
                                                                                                                                
     Section 2: AMENDED: Amends 18.65.310(a)  to set the fee                                                                    
     for  REAL ID  compliant identification  cards at  $20 -                                                                    
     increased from $10 in the previous bill.                                                                                   
                                                                                                                                
     Section  3:  NEW:  Amends 18.65.310(b)  to  require  an                                                                    
     application  for an  identification card  to include  a                                                                    
     provision  that the  applicant understands  the options                                                                    
     between the identification card  types and what type of                                                                    
     card is being selected.                                                                                                    
                                                                                                                                
2:53:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:53:30 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Ms. Lucky continued to discuss the changes:                                                                                     
                                                                                                                                
     Section 4:  AMENDED: Adds new sections  to 18.65.310 as                                                                    
     follows:   (m)  Requires   the   department  to   adopt                                                                    
     regulations  to  issue  federally compliant  cards  and                                                                    
     requires an  applicant to specifically choose  one. New                                                                    
     language  in  CS  limits  the  documents  that  can  be                                                                    
     copied/scanned and  retained to the minimum  of what is                                                                    
     required by  REAL ID and codifies  the retention period                                                                    
     of  15  years,  which  matches  what  is  currently  in                                                                    
     regulation.                                                                                                                
     (n)  Requires  the  state to  continue  to  offer  non-                                                                    
     compliant cards. Requires  an applicant to specifically                                                                    
     choose a  federally compliant identification  card. The                                                                    
     CS  keeps   the  prohibition   against  the   state  or                                                                    
     municipality  requiring a  person  to  get a  federally                                                                    
     compliant identification card,  but allows an exception                                                                    
     when  the  state  or  municipality   is  acting  as  an                                                                    
     employer and the job duties  require use of a compliant                                                                    
     identification card.                                                                                                       
     New  language  regarding  non-compliant  identification                                                                    
     cards limits  retention of facial  images to  15 years,                                                                    
     prohibits  retention  if  a card  is  not  issued,  and                                                                    
     limits retention  of verification  documents to  a year                                                                    
     after the expiration date of the license.                                                                                  
     (o) The  previous bill allowed the  department to issue                                                                    
     a card with  a validity of less than eight  years if it                                                                    
     matches the  amount of  time that  a person  is legally                                                                    
     authorized to be  in the country. The  CS contains that                                                                    
     language,  but  amends  a provision  regarding  a  card                                                                    
     issued to a  person that is legally allowed  to stay in                                                                    
     the country  for an "indefinite period."  The CS allows                                                                    
     the department  more discretion to  renew for  a period                                                                    
     of "up to eight years"  - the previous bill limited the                                                                    
     card to one year.                                                                                                          
     The  CS  also  includes   language  regarding  when  an                                                                    
     identification card  can be renewed and  guidelines for                                                                    
     renewal by mail or via the department's website. The                                                                       
     CS also allows the  department more discretion with the                                                                    
     expiration date for a card  when the authorized stay of                                                                    
     an  individual is  indeterminate  -  the previous  bill                                                                    
     required a  one year expiration  date; the CS  allows a                                                                    
     card to be valid "up to eight years."                                                                                      
     (p) Requires the department to  provide the public with                                                                    
     information  about  the   differences  between  current                                                                    
     cards  (non-compliant) and  federally compliant  cards,                                                                    
     including  what  a federally  compliant  identification                                                                    
     card  is   required  for  and  what   alternatives  are                                                                    
     available.                                                                                                                 
     REMOVED:  Requirement  that  a  non-compliant  card  be                                                                    
     created in-state.                                                                                                          
     (q)   Definition  of   "identification  card   that  is                                                                    
     federally compliant" - reworded.                                                                                           
                                                                                                                                
     Section 5:  AMENDED: Adds new sections  to 28.05.068 as                                                                    
     follows:                                                                                                                   
     (a)  If data  is being  shared with  other entities  to                                                                    
     comply with the  REAL ID Act, limits that  data to what                                                                    
     is  required. This  is  similar to  the  intent of  the                                                                    
     language in the previous bill, but has been reworded.                                                                      
     (b) -  (e) - Add  new language relating to  the sending                                                                    
     of  social  security  numbers  to  other  entities  for                                                                    
     verification  that  a  person  who is  applying  for  a                                                                    
     driver's  license  is  not already  licensed  in  other                                                                    
     states. The  language requires  the department  to take                                                                    
     "all steps  necessary" to eliminate  the use  of social                                                                    
     security  numbers, otherwise  to  limit  the number  of                                                                    
     digits of  a social security number  being used. Allows                                                                    
     up  to  five  digits,   which  is  the  current  number                                                                    
     required by the S2S verification  system, to be used as                                                                    
     long as efforts have been made to reduce the number.                                                                       
     (f) Requires  an annual report  of the efforts  made in                                                                    
     (b) - (e); this section  is repealed in 2021 by section                                                                    
     15 of this bill.                                                                                                           
                                                                                                                                
     Section  6: AMENDED:  Adds new  sections to  28.15.041,                                                                    
     relating   to   driver's   licenses,  to   mirror   the                                                                    
     provisions in section 4 of  the bill for identification                                                                    
     cards. Specifically:                                                                                                       
     (d)  Requires the  department to  adopt regulations  to                                                                    
     issue  federally   compliant  driver's   licenses.  New                                                                    
     language  in  CS  limits  the  documents  that  can  be                                                                    
     copied/scanned and  retained to the minimum  of what is                                                                    
     required by  REAL ID and codifies  the retention period                                                                    
     of  15  years,  which  matches  what  is  currently  in                                                                    
     regulation.                                                                                                                
     (e)  Requires  the  state to  continue  to  offer  non-                                                                    
     compliant   licenses.   Requires    an   applicant   to                                                                    
     specifically choose a  federally compliant license. The                                                                    
     CS  keeps   the  prohibition   against  the   state  or                                                                    
     municipality  requiring a  person  to  get a  federally                                                                    
     compliant  driver's license,  but  allows an  exception                                                                    
     when  the  state  or  municipality   is  acting  as  an                                                                    
     employer and the job duties  require use of a compliant                                                                    
     license.                                                                                                                   
     New language regarding  non-compliant driver's licenses                                                                    
     limits  retention   of  facial  images  to   15  years,                                                                    
     prohibits  retention if  a license  is not  issued, and                                                                    
     limits retention of verification  documents to one year                                                                    
     after the expiration date of the license.                                                                                  
     (f) Requires the department to  provide the public with                                                                    
     information  about  the   differences  between  current                                                                    
     driver's   licenses   (non-compliant)   and   federally                                                                    
     compliant   licenses,   including  what   a   federally                                                                    
     compliant identification card is  required for and what                                                                    
     alternatives are available.                                                                                                
                                                                                                                                
     Section   7:  AMENDED:   Adds  a   new  subsection   to                                                                    
     28.15.061(b)    that   mirrors    the   language    for                                                                    
     identification   cards  in   section  3.   Requires  an                                                                    
     application  for  a  driver's   license  to  include  a                                                                    
     provision  that the  applicant understands  the options                                                                    
     between  the driver's  license types  and what  type of                                                                    
     license is being selected.                                                                                                 
                                                                                                                                
     Section 8: Amends 28.15.101 (a)  to extend the validity                                                                    
     of a driver's license to  eight years (from five). Same                                                                    
     as previous bill.                                                                                                          
                                                                                                                                
     Section 9:  AMENDED: Amends  28.15.101 (d),  similar to                                                                    
     the  provisions in  section 4,  subsection (o)  of this                                                                    
     bill,  to  allow the  department  to  issue a  driver's                                                                    
     license with a validity of  less than eight years if it                                                                    
     matches the  amount of  time that  a person  is legally                                                                    
     authorized  to  be  in the  country  and  also  repeals                                                                    
     language allowing  a person to renew  their license for                                                                    
     free  if  the  license  was valid  for  less  than  the                                                                    
     maximum.                                                                                                                   
     The CS  contains that language, but  amends a provision                                                                    
     that limits  the validity of a  driver's license issued                                                                    
     to  a person  that is  legally allowed  to stay  in the                                                                    
     country for  an "indefinite period." The  CS allows the                                                                    
     department  more discretion  to renew  for a  period of                                                                    
     "up to  eight years"  - the  previous bill  limited the                                                                    
     card to one year.                                                                                                          
                                                                                                                                
3:01:23 PM                                                                                                                    
                                                                                                                                
Ms. Lucky continued to highlight the changes:                                                                                   
                                                                                                                                
     Section 10: AMENDED: Amends  28.15.111(a) to update the                                                                    
     security requirements of cards  to the highest security                                                                    
     standards available.                                                                                                       
                                                                                                                                
     Section 11: AMENDED: Adds  new subsections to 28.15.111                                                                    
     that  (d)  prohibit  bulk   sharing  of  facial  images                                                                    
     captured  during the  application process  for driver's                                                                    
     licenses,  other  than  commercial  driver's  licenses,                                                                    
     with  entities outside  the state;  and  (e) require  a                                                                    
     commercial driver's license to be federally compliant.                                                                     
     REMOVED:  Limitations  on   copying  and  retention  of                                                                    
     application  documents  and  facial images  -  see  new                                                                    
     language on same  topic in section 6.  Also removed was                                                                    
     the requirement  that a non-compliant  driver's license                                                                    
     be created in-state.                                                                                                       
                                                                                                                                
     Section  12: Amends  28.15.271(b) to  charge a  $20 fee                                                                    
     for a driver's license  that is federal compliant. Same                                                                    
     as previous bill.                                                                                                          
                                                                                                                                
     Section  13:   AMENDED:  Adds   a  new   subsection  to                                                                    
     28.90.990(a)  to  define   "driver's  license  that  is                                                                    
    federally compliant" - this was reworded in the CS.                                                                         
                                                                                                                                
     Section  14:  NEW:   Repeals  AS  44.99.040(a)(2),  the                                                                    
     statute that  prohibits use of assets  to implement the                                                                    
     REAL  ID Act.  The previous  bill amended  this section                                                                    
     instead of repealing it.                                                                                                   
                                                                                                                                
     Section 15:  NEW: Repeals 28.05.068(f) -  the reporting                                                                    
     requirement added by  section 5 of this bill  - on June                                                                    
     30, 2021.                                                                                                                  
                                                                                                                                
     Section   16:  Transitional   Provisions:  Allows   the                                                                    
     Department  of Administration  to adopt  regulations to                                                                    
     implement this Act.                                                                                                        
                                                                                                                                
     Section 17:  Immediate effective  dates for  section 14                                                                    
     (repeal) and section 16 (authority for regulations).                                                                       
                                                                                                                                
     Section 18: Effective  date of January 1,  2019 for the                                                                    
     remainder of the bill.                                                                                                     
                                                                                                                                
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO                                                                       
further OBJECTION, the proposed committee substitute was                                                                        
adopted.                                                                                                                        
                                                                                                                                
Senator  von Imhof  noted  that the  bill  stated that  non-                                                                    
compliant  identification  cards  would limit  retention  of                                                                    
facial images  to 15 years.  She wondered what  changed from                                                                    
the  previous   presentation  about  not   retaining  facial                                                                    
recognition.                                                                                                                    
                                                                                                                                
3:05:55 PM                                                                                                                    
                                                                                                                                
MARLA THOMPSON, DIRECTOR, DIVISION  OF MOTOR VEHICLES (DMV),                                                                    
DEPARTMENT    OF   ADMINISTRATION    (via   teleconference),                                                                    
understood the  that Senator von  Imhof was  concerned about                                                                    
the retaining of an image for one year after expiration.                                                                        
                                                                                                                                
Senator  von Imhof  noted that  initially the  bill did  not                                                                    
allow any retention of documents  or facial recognition. She                                                                    
noted that  the new bill allowed  for significant retention.                                                                    
She  queried  the  circumstances  that  contributed  to  the                                                                    
change in the bill.                                                                                                             
                                                                                                                                
Co-Chair MacKinnon  queried the DMV's current  practice. Ms.                                                                    
Thompson replied  that the DMV currently  retained documents                                                                    
for 15  years, which  was the minimum.  She stated  that the                                                                    
change  in   the  legislation  was   from  a   request  from                                                                    
Department of Public Safety (DPS).                                                                                              
                                                                                                                                
Co-Chair MacKinnon noted that  the initial bill presentation                                                                    
from  the  Senate  State   Affairs  committee  had  document                                                                    
disposal.  She  stressed that  it  was  never state  law  to                                                                    
destroy the documents. Ms. Thompson agreed.                                                                                     
                                                                                                                                
Senator von  Imhof wondered whether the  DMV retained copies                                                                    
of  a  person's  passport   and/or  birth  certificate.  Ms.                                                                    
Thompson responded in the affirmative.                                                                                          
                                                                                                                                
Senator von  Imhof understood that  DMV did not  take copies                                                                    
of those documents. She requested  confirmation that the DMV                                                                    
retained copies of the documents.  Ms. Thompson replied that                                                                    
the DMV retained copies of the documents.                                                                                       
                                                                                                                                
3:10:24 PM                                                                                                                    
                                                                                                                                
Senator   Hughes   felt   that   the   bill   had   stronger                                                                    
confidentiality provisions than  the federal provisions. She                                                                    
wondered  whether  the photos  were  shared  with any  other                                                                    
state agencies.  Ms. Thompson replied  that the  photos were                                                                    
only shared with DPS.                                                                                                           
                                                                                                                                
                                                                                                                                
Senator  Hughes wondered  whether  personal information  was                                                                    
shared  with a  national  database.  Ms. Thompson  responded                                                                    
that  the  DMV  shared  information  with  other  states  to                                                                    
produce   the  most   valid  identification   possible.  She                                                                    
stressed  that documents  and photos  were  not shared,  but                                                                    
only validation.                                                                                                                
                                                                                                                                
Senator  Hughes wondered  whether  personal information  was                                                                    
downloaded into the database, or  was there only a search of                                                                    
the  database for  a match.  Ms. Thompson  replied that  the                                                                    
search was only conducted  based on the provided information                                                                    
to determine matches.                                                                                                           
                                                                                                                                
Senator Hughes  surmised that the  information would  not be                                                                    
shared  on  federally  noncompliant licenses.  Ms.  Thompson                                                                    
replied that  the compliant  licenses required  a validation                                                                    
was secure.                                                                                                                     
                                                                                                                                
Senator  Hughes wondered  whether  there was  an issue  with                                                                    
identity theft. Ms. Thompson replied in the negative.                                                                           
                                                                                                                                
Senator  Hughes wondered  whether  the five  to eight  years                                                                    
related  to both  the compliant  and noncompliant  licenses.                                                                    
Ms. Thompson replied in the affirmative.                                                                                        
                                                                                                                                
3:17:07 PM                                                                                                                    
                                                                                                                                
DAN   LOWDEN,   CAPTAIN,    ALASKA   STATE   TROOPERS   (via                                                                    
teleconference),  announced   that  he  was   available  for                                                                    
questions. He  remarked that he  was slightly  confused with                                                                    
the conversation related to the databases.                                                                                      
                                                                                                                                
3:18:05 PM                                                                                                                    
                                                                                                                                
SHELDON FISHER,  COMMISSIONER, DEPARTMENT  OF ADMINISTRATION                                                                    
(via teleconference),  remarked that  the bill  was designed                                                                    
to  give  a   person  a  choice  between   a  compliant  and                                                                    
noncompliant  license. He  stated that  the database  shared                                                                    
minimal  information   to  allow  confirmation   of  license                                                                    
information across states to ensure  that individuals had an                                                                    
appropriate record  in another  state. He stressed  that the                                                                    
other information  was kept  in the state,  and the  Real ID                                                                    
database only confirmed the validity of the documents.                                                                          
                                                                                                                                
Senator  Hughes queried  what was  shared  in the  database.                                                                    
Commissioner Fisher  replied that the five  digits of social                                                                    
security information was in the  database, but would work to                                                                    
reduce or eliminate  that number. He stated  that the number                                                                    
was shared to determine whether  an individual had a license                                                                    
in another state. The primary  documents, such as a passport                                                                    
or birth certificate, was not shared in the database.                                                                           
                                                                                                                                
Senator Hughes wondered whether there  was a concern about a                                                                    
breach in the database.  Commissioner Fisher replied that we                                                                    
should be concerned  about identity theft. He  felt that the                                                                    
nature and amount of information was relatively modest.                                                                         
                                                                                                                                
Senator Hughes  asked whether the commander  of the military                                                                    
bases in Alaska decided  whether a federal compliant license                                                                    
was  required, or  could a  noncompliant license  be chosen.                                                                    
Commissioner  Fisher understood  that  the  commander had  a                                                                    
certain amount of latitude in implementation.                                                                                   
                                                                                                                                
Vice-Chair Bishop  remarked that the Department  of Military                                                                    
and Veterans  Affairs (DMVA) had announced  that a compliant                                                                    
ID would be required for base access.                                                                                           
                                                                                                                                
3:23:58 PM                                                                                                                    
                                                                                                                                
BRIAN DUFFY, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT   OF   MILITARY   AND   VETERANS   AFFAIRS   (via                                                                    
teleconference),  announced that  that  the commanders  were                                                                    
currently  complying  with federal  law,  and  did not  have                                                                    
waiver authority.                                                                                                               
                                                                                                                                
Senator  Hughes  felt  that there  was  misinformation.  She                                                                    
surmised that the commanders did  not have leeway. Mr. Duffy                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Co-Chair MacKinnon  shared a document from  a commander that                                                                    
stated that the bases must comply with the federal law.                                                                         
                                                                                                                                
Senator  Micciche wondered  whether the  noncompliant Alaska                                                                    
IDs  would  present  additional risks.  Commissioner  Fisher                                                                    
replied in the negative.                                                                                                        
                                                                                                                                
Senator Micciche  surmised that the database  was managed by                                                                    
a private  company. Commissioner Fisher stated  that the DMV                                                                    
would  validate  a  passport through  a  database  that  was                                                                    
managed  by Homeland  Security.  The DMV  validated a  birth                                                                    
certificate  that   was  managed  by  a   nonprofit  managed                                                                    
database.                                                                                                                       
                                                                                                                                
3:29:52 PM                                                                                                                    
                                                                                                                                
Senator  Micciche  wondered  whether there  were  additional                                                                    
requirements for a compliant ID  beyond what was required to                                                                    
receive  a  passport.  Commissioner Fisher  replied  in  the                                                                    
negative.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  wondered whether the data  on the facial                                                                    
image  would  be  shared with  anyone.  Commissioner  Fisher                                                                    
replied that the facial image data would not be shared.                                                                         
                                                                                                                                
Co-Chair  MacKinnon asked  whether law  officers outside  of                                                                    
the  state  could  subpoena that  information.  Commissioner                                                                    
Fisher replied that  the data would be shared  with DPS, and                                                                    
the DMV would comply with a subpoena.                                                                                           
                                                                                                                                
Co-Chair MacKinnon  wondered whether  the facial  image data                                                                    
was  shared  on  an individual  basis.  Commissioner  Fisher                                                                    
replied that  the state would  share the facial  images with                                                                    
DPS, but there was no bulk sharing.                                                                                             
                                                                                                                                
Co-Chair MacKinnon  queried a  regulation that  required the                                                                    
scanning and  storage of the documents.  Commissioner Fisher                                                                    
deferred to Ms. Thompson.                                                                                                       
                                                                                                                                
Ms.  Thompson replied  in the  affirmative, and  deferred to                                                                    
Mr. Stanker.                                                                                                                    
                                                                                                                                
3:34:52 PM                                                                                                                    
                                                                                                                                
MICHAEL   STANKER,   ATTORNEY,   DEPARTMENT  OF   LAW   (via                                                                    
teleconference),  stated  the  statute  did  not  explicitly                                                                    
mention the  storage or retention  of the  source documents,                                                                    
but  the source  documents were  considered as  part of  the                                                                    
application.                                                                                                                    
                                                                                                                                
Senator  von Imhof  wondered  whether  the noncompliant  and                                                                    
compliant  requirements  would   retain  a  social  security                                                                    
document   in  storage.   Mr.  Stanker   replied  that   the                                                                    
regulations under  Real ID would  take a copy of  the social                                                                    
security  card,  but Alaska  regulation  did  not allow  for                                                                    
scanning of the card-only verification.                                                                                         
                                                                                                                                
Co-Chair   MacKinnon  asked   for   confirmation  of   those                                                                    
comments.  Ms. Thompson  stated  that  social security  card                                                                    
would not be scanned, and only validated.                                                                                       
                                                                                                                                
Co-Chair MacKinnon wondered if there  would be a change. Ms.                                                                    
Thompson replied in the negative.                                                                                               
                                                                                                                                
Co-Chair MacKinnon surmised  that there would be  no copy of                                                                    
the social security card. Ms. Thompson agreed.                                                                                  
                                                                                                                                
Vice-Chair Bishop  wondered whether a  hazardous endorsement                                                                    
on   a    commercial   driver's   license    (CDL)   require                                                                    
fingerprints.   Ms.   Thompson   agreed  to   provide   that                                                                    
information.                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon    announced   that   the    bill   was                                                                    
controversial,  and Alaskans  expected their  privacy to  be                                                                    
honored.                                                                                                                        
                                                                                                                                
Co-Chair  MacKinnon  announced   that  amendments  were  due                                                                    
following day at 8am.                                                                                                           
                                                                                                                                
SB  34  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 111 Work Draft version B.pdf SFIN 5/11/2017 9:00:00 AM
HB 111
HB 111 v B Sectional Analysis.pdf SFIN 5/11/2017 9:00:00 AM
HB 111
CS SB 34 v.T Explanation.pdf SFIN 5/11/2017 9:00:00 AM
SB 34
SB 34 CS SB 34 v.T.pdf SFIN 5/11/2017 9:00:00 AM
SB 34
SB 34 Air Force Letter - Real ID.pdf SFIN 5/11/2017 9:00:00 AM
SB 34
HB 111 Public Testimony Letters 4.pdf SFIN 5/11/2017 9:00:00 AM
HB 111