Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/28/2011 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 98 BIOMETRIC INFORMATION FOR ID TELECONFERENCED
Heard & Held
+ SB 15 SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
              SB  98-BIOMETRIC INFORMATION FOR ID                                                                           
                                                                                                                                
1:35:53 PM                                                                                                                    
CHAIR FRENCH announced  the consideration of SB 98  and asked for                                                               
a motion to adopt the work draft committee substitute (CS).                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  moved to  adopt CS for  SB 98,  labeled 27-                                                               
LS0661\D, as the working document.                                                                                              
                                                                                                                                
CHAIR FRENCH objected for discussion purposes.                                                                                  
                                                                                                                                
1:36:19 PM                                                                                                                    
MICHAEL CAULFIELD,  staff to Senator Wielechowski,  sponsor of SB
98  said version  D  is substantially  different  than the  State                                                               
Affairs version B.  The proposed new Sec.  18.14.010 now requires                                                               
a person  who is  collecting biometric  information to  specify a                                                               
specific purpose when they ask  for documented consent to collect                                                               
the information.  Unless the  person's biometric  information was                                                               
needed for  a specific authorized  law enforcement,  security, or                                                               
fraud-prevention purpose,  the person can revoke  that consent at                                                               
any time.                                                                                                                       
                                                                                                                                
Sec.   18.14.020  pertains   to  the   disclosure  of   biometric                                                               
information.  It states  that the  collector  of the  information                                                               
will not  disclose, distribute,  or transfer  the data  to anyone                                                               
other  than organizations  that  are specifically  in service  to                                                               
hold biometric information.                                                                                                     
                                                                                                                                
CHAIR  FRENCH  referenced  page  2,  line 5,  and  asked  who  "a                                                               
contractor" references.                                                                                                         
                                                                                                                                
MR. CAULFIELD replied it references a  person or the agent of the                                                               
entity  that authenticates  the  identity of  the  person who  is                                                               
providing the biometric information.                                                                                            
                                                                                                                                
Sec. 18.14.030 deals  with the sale of  biometric information. It                                                               
states  that a  person cannot  sell biometric  information unless                                                               
the storage  entity is  acquired by  another storage  entity. For                                                               
example, LexisNexis bought out ChoicePoint.                                                                                     
                                                                                                                                
CHAIR  FRENCH asked  for confirmation  that no  one could  buy or                                                               
sell his biometric  data by itself but the  agency that collected                                                               
the data could be bought and sold.                                                                                              
                                                                                                                                
MR. CAULFIELD answered yes.                                                                                                     
                                                                                                                                
Sec.   18.14.040  sets   time  limits   on  how   long  biometric                                                               
information can be stored. Biometric  information will be removed                                                               
upon request  of the individual  or when the original  reason for                                                               
the collection is no longer  necessary. The collecting entity has                                                               
30  days to  notify  the  storage entity  and  120  days for  the                                                               
storage entity to delete the data.                                                                                              
                                                                                                                                
1:39:58 PM                                                                                                                    
Sec. 18.14.050 says the biometric  information cannot be used for                                                               
marketing or  general surveillance purposes,  but it may  be used                                                               
for specific authorized security or fraud prevention purposes.                                                                  
                                                                                                                                
Sec 18.14.060  states that  the company  or organization  that is                                                               
storing data will do so in a safe and secure manner.                                                                            
                                                                                                                                
Sec 18.14.070 is  a private right to action.  It is substantially                                                               
the same as the previous version  except it now includes the word                                                               
"knowingly" to ensure the party at fault is the one responsible.                                                                
                                                                                                                                
Sec  18.14.080  and  Sec  18.14.090   deal  with  exemptions  and                                                               
definitions. They are unchanged from the previous bill version.                                                                 
                                                                                                                                
1:41:24 PM                                                                                                                    
SENATOR  WIELECHOWSKI  said most  of  concerns  that were  raised                                                               
centered   on   security   issues  related   to   the   alternate                                                               
identification section, and he decided  to remove that section in                                                               
order to  move forward with  the bill.  To offset that  change he                                                               
tightened  other  provisions  to  increase the  security  of  the                                                               
information that's  collected. Hopefully this will  help the bill                                                               
to gain broader support.                                                                                                        
                                                                                                                                
1:42:47 PM                                                                                                                    
CHRISTOPHER   OSWALD,   Director,   State   Government   Affairs,                                                               
LexisNexis,  Reed Elsevier  Inc., explained  that the  LexisNexis                                                               
True  ID  product  is  an  identity  verification  and  biometric                                                               
authentication  solution that  is designed  to verify  identities                                                               
and  face-to-face  transactions.  These applications  help  their                                                               
clients  fight fraudulent  enrollment  and  access to  controlled                                                               
systems.                                                                                                                        
                                                                                                                                
LexisNexis Risk  Solutions is the repository  for biometric data,                                                               
not  the owner.  Therefore, they  don't  sell the  data and  they                                                               
don't use it beyond the original  purpose for which it was given.                                                               
This data  is held in  a secured  database in two  U.S. locations                                                               
and  domestic customers'  data is  never transferred  outside the                                                               
U.S.                                                                                                                            
                                                                                                                                
MR. OSWALD  stated that the  current version  of SB 98  strikes a                                                               
balance that  allows the legitimate  commercial use  of biometric                                                               
technology  while   protecting  the  privacy  interests   of  the                                                               
individual.                                                                                                                     
                                                                                                                                
1:46:36 PM                                                                                                                    
SENATOR  PASKVAN  asked what  specific  types  of biometric  data                                                               
LexisNexis Risk Solutions collects.                                                                                             
                                                                                                                                
MR.  OSWALD  replied  they collect  the  information  that  their                                                               
customers  give  them.  Right now  that's  generally  limited  to                                                               
fingerprint scans, but in the  future it could include voiceprint                                                               
and other biometric solutions.                                                                                                  
                                                                                                                                
SENATOR PASKVAN  asked how often  LexisNexis Risk  Solutions uses                                                               
fingerprints to confirm that someone took a particular test.                                                                    
                                                                                                                                
MR. OSWALD explained that they  hold the initial fingerprint scan                                                               
in reserve as  a template in order to verify  a print compared to                                                               
that template.  Electronic verification can  be done as  often as                                                               
the entity  seeking the  solution requires; this  can be  in real                                                               
time or in batches at the end of the day or the end of the week.                                                                
                                                                                                                                
SENATOR PASKVAN asked, if someone comes  to take a test and gives                                                               
a fingerprint  for ID,  what do you  compare that  biometric data                                                               
against and how did you get the information in the first place?                                                                 
                                                                                                                                
MR. OSWALD  explained that  LexisNexis needs  to have  an initial                                                               
fingerprint scan on file. It's  at that point that the individual                                                               
is given notice that their  biometric data is being collected and                                                               
he/she can choose  to consent or not. LexisNexis  is the matching                                                               
service and can authenticate that  person's identity against that                                                               
original fingerprint.                                                                                                           
                                                                                                                                
1:50:16 PM                                                                                                                    
TERESA  JENNINGS, Managing  Director,  State Government  Affairs,                                                               
Reed  Elsevier Inc.,  compared the  large  amount of  information                                                               
that LexisNexis  holds to a  bank vault  and a safe  deposit box.                                                               
LexisNexis is a  repository for a great deal  of information just                                                               
as a bank  vault holds a great  deal of money, but  they can only                                                               
verify information  about a person's  identity based on  what the                                                               
client gives  to LexisNexis.  That information  is secure  like a                                                               
safe deposit box  and can only be accessed by  the individual who                                                               
put  the information  into the  box. An  individual's information                                                               
never  gets co-mingled  with  the rest  of  the information  that                                                               
LexisNexis holds.                                                                                                               
                                                                                                                                
CHAIR  FRENCH asked  how he,  as a  person taking  the bar  exam,                                                               
would be identified by his fingerprint.                                                                                         
                                                                                                                                
MS. JENNINGS replied  your fingerprint will be  scanned each time                                                               
you  enter the  exam room.  The issue  has been  that individuals                                                               
will leave the exam and  another individual comes in and finishes                                                               
the  test or  steals  the  test questions.  She  noted that  this                                                               
version of  the bill provides  a mechanism for the  individual to                                                               
get their information  deleted from the system if  they no longer                                                               
need their identity to be authenticated.                                                                                        
                                                                                                                                
1:54:52 PM                                                                                                                    
CHAIR FRENCH  asked who makes sure  it's really him who  puts his                                                               
fingerprint down the very first time.                                                                                           
                                                                                                                                
MS. JENNINGS replied  that would be their  client. They determine                                                               
the  information  they  want  in   order  to  verify  a  person's                                                               
identity. This could  include a driver's license  or passport. We                                                               
don't  establish  what  goes  into that  safe  deposit  box,  she                                                               
stated. We simply  hold that information and the  client tells us                                                               
when to destroy it or give it back.                                                                                             
                                                                                                                                
SENATOR PASKVAN asked the cumulative  number of fingerprints they                                                               
have in storage in the U.S. in any format.                                                                                      
                                                                                                                                
MS. JENNINGS replied they have  about one million records from 86                                                               
countries stored in  their U.S. facilities, but  she doesn't know                                                               
the breakdown by country.                                                                                                       
                                                                                                                                
MR. OSWALD concurred. He added  that these countries believe that                                                               
the U.S.  and the LexisNexis security  system is the best  in the                                                               
world.                                                                                                                          
                                                                                                                                
1:57:03 PM                                                                                                                    
TIMOTHY  J.  PEARSON, representing  himself,  stated  that he  is                                                               
testifying  in  opposition to  the  proposed  changes to  SB  98.                                                               
First, Sec. 18.14.010(b) addresses  biometric data but it doesn't                                                               
provide  any  alternate  forms of  identification.  Second,  Sec.                                                               
18.14.[050]  creates a  timed-out  opt-out  system that  requires                                                               
individuals  to  trust  that the  collector  and  the  collectors                                                               
contractor   will  remove   or   destroy   the  biometric   data.                                                               
ChoicePoint in 2006 was fined  $10 million in civil penalties and                                                               
$5 million for customer redress  for data security breach charges                                                               
by  the Federal  Trade Commission  (FTC). The  personal financial                                                               
records  of more  than  163,000 customers  in  its database  were                                                               
compromised and  at least 800  cases of identity  theft occurred.                                                               
Third,  collecting biometric  data is  a poor  security practice;                                                               
once  a person's  fingerprints are  stolen they'll  have to  live                                                               
with the  issues associated with a  compromised identity forever.                                                               
Security   experts   recommend   using  other   techniques   like                                                               
multifactor authentication  to establish database,  computer, and                                                               
building security.                                                                                                              
                                                                                                                                
Eleven  days  ago the  New  York  Times  reported that  RSA,  the                                                               
Security Division  of EMC, suffered  a sophisticated  data breach                                                               
potentially compromising  computer security products  widely used                                                               
by corporations  and governments. This  is relevant in  that Sec.                                                               
18.14.[070] provides  that a collector  and contractor  can store                                                               
biometric information using encryption  but encrypted security is                                                               
false security. The only way to  protect biometric data is not to                                                               
collect it. He  urged the committee to return to  the language in                                                               
the State  Affairs version, which provides  for alternative forms                                                               
of identification.  That will really  protect the  privacy rights                                                               
of Alaskans                                                                                                                     
                                                                                                                                
2:02:57 PM                                                                                                                    
JASON GIAIMO, Net Gain Business  Consultants, said it's absurd to                                                               
say   that  a   passport   isn't  adequate   security  to   prove                                                               
identification to take  a test. The fact that you  can travel the                                                               
world  on  a U.S.  passport  but  you  can't  sit at  a  computer                                                               
terminal to  take a test because  it's not adequate ID  is silly.                                                               
The issue of requiring fingerprints to  sit for the bar exam came                                                               
up in Canada  and was ruled illegal under  Canadian privacy laws.                                                               
There's   no  reason   to   mandate   collection  of   employees'                                                               
fingerprints for security purposes and  it would be very risky as                                                               
a policy in Alaska, he stated.                                                                                                  
                                                                                                                                
MR. GIAIMO  said the changes  in the current  version effectively                                                               
take  out  all  real  assurances  that  Alaskan's  data  will  be                                                               
protected after  it's collected.  He urged  the committee  to put                                                               
real protection for Alaskans back  in the bill by reinserting the                                                               
provision  about   exemption  from  fingerprinting  for   ID  for                                                               
individuals who present a U.S. passport and driver's license.                                                                   
                                                                                                                                
2:07:53 PM                                                                                                                    
HORST  POEPPERL,  Chief  Executive Officer,  Borealis  Broadband,                                                               
said he's  been an IT  specialist his  entire career and  is well                                                               
versed in IT,  data communication, and data  storage. The purpose                                                               
behind  this bill,  he  said,  is to  prevent  the collection  of                                                               
biometric data  in the  first place. Trying  to regulate  its use                                                               
after  it's has  been collected  doesn't work.  He asked  why, if                                                               
other IDs  are used to  verify the initial fingerprint,  you need                                                               
the fingerprint  in the first place.  Any data that's kept  is at                                                               
risk,  which is  demonstrated  by the  fact  that breaches  occur                                                               
every day. The  best protection against these breaches  is to not                                                               
collect the data.                                                                                                               
                                                                                                                                
Data can also  be intercepted, he said, regardless  of whether or                                                               
not  it's encrypted.  Anyone with  reasonable  knowledge in  data                                                               
communication can  intercept queries that are  transmitted across                                                               
the  Internet.  Right  now  information  about  spending  habits,                                                               
shopping  habits,  online   habits,  income,  expenses,  personal                                                               
preferences, and where  you travel is available.  With a thousand                                                               
dollar printer and an image  manipulation program, it's extremely                                                               
easy to lift  and use a fingerprint for  whatever purpose. Forget                                                               
about removing  this data  once it's  hit the  Internet or  is in                                                               
someone's database because it's  almost impossible to verify that                                                               
it's  gone. The  best  way  to enhance  security  is to  maintain                                                               
privacy, dignity and rights.                                                                                                    
                                                                                                                                
2:14:00 PM                                                                                                                    
CHAIR FRENCH  asked Ms. Jennings if  she'd say that it's  not her                                                               
company  that wants  the fingerprints,  it's  their clients  that                                                               
want them.                                                                                                                      
                                                                                                                                
MS. JENNINGS confirmed she would  say that; their clients set the                                                               
standards for verifying individuals  for a particular purpose and                                                               
LexisNexis holds  the information for the  client. She reiterated                                                               
that   LexisNexis  completely   destroys  the   information  when                                                               
directed to do so.                                                                                                              
                                                                                                                                
SENATOR PASKVAN  commented that it's over-inclusive  under Alaska                                                               
privacy laws  to require every Alaskan  who wants to take  a test                                                               
to  consent  to  fingerprinting because  certain  companies  have                                                               
chosen  this   means  to  target  professional   test  takers.  A                                                               
distinction should be made  between job-specific requirements and                                                               
proof of one's identity, he said.                                                                                               
                                                                                                                                
CHAIR   FRENCH  observed   that  the   companies  who   want  the                                                               
fingerprints to verify identity didn't enter the debate today.                                                                  
                                                                                                                                
2:16:49 PM                                                                                                                    
CHAIR FRENCH announced he would hold SB 98 in committee.                                                                        
                                                                                                                                

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