Legislature(2005 - 2006)

04/21/2005 01:34 PM L&C

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
           SB 149-PROTECTION OF PERSONAL INFORMATION                                                                        
CHAIR CON BUNDE announced SSSB 149 to be up for consideration.                                                                  
He recapped that he had asked Senator Ellis and Senator Guess to                                                                
develop a single bill on identity theft, which is now SB 149.                                                                   
SENATOR GUESS, sponsor, explained that the first two sections of                                                                
SB 148 were similar to the first two sections of SB 149 and                                                                     
therefore  she is  still referring  to  SB 149,  version \Y.  She                                                               
informed  the committee  that there  had been  three more  public                                                               
security breaches since the last hearing.                                                                                       
1:36:27 PM                                                                                                                    
SENATOR  GUESS  said  there  were  three  concerns  at  the  last                                                               
meeting.  One  was  federal   legislation  that  Diane  Feinstein                                                               
introduced that  has had  one hearing,  hasn't moved  and doesn't                                                               
have any co-sponsors. It insures what  is in Article 1 of SB 149,                                                               
which  says if  you  have a  security breach,  you  have to  tell                                                               
people  about it.  She  did not  believe  the Alaska  legislature                                                               
would  be  treading  on  something   the  federal  government  is                                                               
addressing right now.                                                                                                           
Second -  the Choice  Point letter  - She  talked to  Linda Hall,                                                               
Division of  Insurance, and it  is not her opinion  that anything                                                               
in this  bill would lead  to increased insurance  premiums, which                                                               
is in disagreement with the letter.                                                                                             
Third, Senator  Seekins was concerned about  consumers needing to                                                               
have access  to their credit  reports within  24 hours to  make a                                                               
purchase. This  resulted in  Amendment 1,  labeled Y.2,  which is                                                               
also  supported by  Progressive Insurance.  The amendment  allows                                                               
immediate unfreezing of a security  report by E-mail or phone. If                                                               
it's by  mail, three days  are still required, because  you never                                                               
know  where  a   letter  goes  in  the  mail  system   of  a  big                                                               
CHAIR BUNDE  noted that the  committee received  an indeterminate                                                               
fiscal  note   from  the  Department  of   Community  &  Economic                                                               
Development  (DCED) because  it wouldn't  know what  would happen                                                               
without an actual  breach of security of state  records. He asked                                                               
Senator Guess  if she  referred earlier  to security  breaches in                                                               
the private sector.                                                                                                             
SENATOR GUESS replied yes.                                                                                                      
1:39:02 PM                                                                                                                    
CHAIR BUNDE asked if notifying one  million people of a breach in                                                               
the state security system was a worst-case scenario.                                                                            
SENATOR GUESS  replied that  is a worst-case  scenario and  for a                                                               
large population, you don't need  to use an individual letter and                                                               
that  would make  the fiscal  note almost  zero. Notification  is                                                               
easier than having to notify 1,000 people.                                                                                      
1:40:52 PM                                                                                                                    
CHAIR BUNDE  moved Amendment  1, \Y.2,  dated 4/18,  and objected                                                               
for discussion purposes.                                                                                                        
                      A M E N D M E N T 1                                                                                   
OFFERED IN THE SENATE                          BY SENATOR GUESS                                                                 
     TO:  SSSB 149                                                                                                              
Page 5, line 1:                                                                                                                 
     Delete "or (2)"                                                                                                            
Page 5, lines 1 - 2:                                                                                                            
     Delete "within three business days after receiving a                                                                       
request under (a)(3) of this section"                                                                                           
     Insert "immediately after receiving a request under (a)(2)                                                                 
or (3) of this section"                                                                                                         
Page 5, lines 28 - 29:                                                                                                          
     Delete "within three business days after receiving the                                                                     
     Insert "immediately after receiving the request by                                                                         
telephone or electronic mail or  within three business days after                                                               
receiving the request by certified mail"                                                                                        
Page 6, line 31, through page 7, line 1:                                                                                        
     Delete "within three business days"                                                                                        
     Insert "immediately"                                                                                                       
Page 8, line 18 - 19:                                                                                                           
     Delete "not later than three business days after receiving                                                                 
your request"                                                                                                                   
     Insert  "immediately after receiving your request if you                                                                   
make  the request  by  telephone or  electronic  mail, or  within                                                               
three  business days  after receiving  your request  if you  make                                                               
the request by certified mail"                                                                                                  
SENATOR GUESS said the amendment  addresses the immediacy concern                                                               
expressed by Senator Seekins.                                                                                                   
CHAIR BUNDE removed his objections and Amendment 1 was adopted.                                                                 
1:42:34 PM                                                                                                                    
BARBARA  HUFF-TUCKNESS,  Director, Governmental  and  Legislative                                                               
Affairs,  Teamsters   Local  959,  supported  SB   149  with  the                                                               
additional amendments. Prior  to 911, many of  her members worked                                                               
for employers  that conducted background checks  and gathering of                                                               
personal  information. Since  911  more and  more information  is                                                               
being gathered  on behalf  of employees and  she is  working with                                                               
the  sponsor to  make  sure that  information  is duly  protected                                                               
through  things  like  the  proper   chain  of  custody  and  how                                                               
information is disposed of. She pointed  out that this is a major                                                               
new industry with a lot of companies getting into the business.                                                                 
CHAIR BUNDE  asked the director  of the Division  of Occupational                                                               
Licensing if his information could  be breached to the point that                                                               
it would  be a security  risk for  the individuals and  how would                                                               
that impact the division.                                                                                                       
RICK  URION,   Director,  Division  of   Occupational  Licensing,                                                               
Department of Community &  Economic Development (DCED), responded                                                               
that he  is not an  expert in that field,  but he said  a lawsuit                                                               
was filed  yesterday about information that  was obtained on-line                                                               
from the division's system.                                                                                                     
1:46:07 PM                                                                                                                    
SENATOR RALPH SEEKINS joined the committee.                                                                                     
1:46:18 PM                                                                                                                    
SENATOR  BEN STEVENS  moved CSSSSB  149(L&C) from  committee with                                                               
individual  recommendations and  attached fiscal  notes. Senators                                                               
Davis, Seekins,  Ben Stevens,  Ellis and  Chair Bunde  voted yea;                                                               
and CSSSSB 149(L&C) moved from committee.                                                                                       

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