Legislature(2017 - 2018)BUTROVICH 205
02/23/2017 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB34 | |
| Presentation: Bridging the Fiscal Gap - Meaningful Reductions & Leveraging Savings by Senator Dunleavy | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 34 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SB 34-DRIVER'S LICENSE & ID CARDS & REAL ID ACT
3:32:08 PM
CHAIR DUNLEAVY announced the consideration of SB 34.
3:32:18 PM
SHELDON FISHER, Commissioner, Alaska Department of
Administration, Juneau, Alaska, provided an overview of SB 34 as
follows:
Currently there's legislation within the state that
prohibits the department from pursuing any activity to
comply with the federal REAL ID Act; this is in
compliance with a federal law is what we are trying to
offer here or at least compliance with federal
requirements to get access to certain military bases
or to be able to fly.
We have received waivers of the federal REAL ID
requirements, those waivers will expire in June and at
that point we are currently being informed by DHS that
those who do not have REAL ID compliant licenses, if
the state is not pursuing compliance, will have to
seek alternative ID to be able to get on bases and
that might be a passport of theirs and we will go
through a list of other IDs, then in January of 2018,
that same rule will apply to flights, so individuals
will have to have those alternative IDs.
This act, our proposal is optional, it does not
require that the state issue a REAL ID compliant
license, it gives the individual the option of whether
they would like a compliant REAL ID and it charges a
fee which will cover the cost of issuing that license,
so to some extent the individual will be bearing the
cost associated with this.
3:34:46 PM
COMMISSIONER FISHER commenced his presentation and referenced
slide 2, "Federal REAL ID Act" as follows:
· REAL ID covers all 50 states, 5 territories and Washington,
D.C.
· Establishes minimum requirements for secure issuance and
production of state-issued driver licenses and IDs:
ƒRequires states to verify a person's identity & lawful
status.
ƒRequires special card design features like digital
photo, signature, and unique card number.
ƒRequires safeguards for issuance and production of
licenses; i.e. clearly marking temporary, limited, or
otherwise non-compliant licenses as "Not for Federal
Identification."
· Twenty-six states currently offer REAL ID compliant cards.
· Nineteen states including Alaska have extensions allowing
continued issuance and production of non-compliant cards.
· Five states that are non-compliant - WA, MN, MO, ME, MT:
ƒMinnesota and Washington do have Enhanced IDs (chip
cards) which are approved for REAL ID Compliant and
TSA.
ƒWashington and Minnesota have current bills in 2017
for compliance.
3:36:01 PM
COMMISSIONER FISHER referenced slide 3, "SB 34 Driver's License,
State IDs, and REAL ID ACT" as follows:
· What SB 34 Does:
ƒAllows DMV to offer Alaskans a choice between a REAL
ID compliant driver's license or ID, or a "standard"
noncompliant license or ID.
ƒGives DMV the authority and funding to upgrade
systems, equipment and processes for REAL ID/DL card
production.
ƒAllows DMV to charge an additional $5 fee for REAL ID
licenses and IDs to cover the increased cost of
production.
· Why SB 34 is Needed:
ƒAS 44.99.040 (a)(2) prohibits DMV from spending state
funds to comply with REAL ID Act.
ƒWithout compliant ID, Alaskans will need another form
of federal ID for TSA security screenings or to gain
access to military bases and secure-entrance federal
buildings.
ƒREAL ID Act was designed to decrease fraud and ensure
that states are checking the validity of documents
presented with applications.
He noted that it costs $1.5 million to comply with REAL ID and
the $5 fee will not recover that $1.5 million; however, a $10
would recover the $1.5 million initial capital cost in about 5
years. If one of the concerns is the cost of funding that, then
there is an option to shift that cost to the participant.
CHAIR DUNLEAVY stated that he believed there should always be
concern about additional cost.
COMMISSIONER FISHER agreed with Chair Dunleavy. He reiterated
that the bill is necessary because of current legislation that
prevents the Department of Administration from pursuing a REAL
ID compliant license or spending funds to comply with REAL ID
which the department is prohibited to do.
3:37:46 PM
He referenced slide 7, a flowchart about the Real ID process. He
pointed out that the process is essentially the same as the
state's current ID process with the following exceptions:
· Take photo to store with application in Alaska.
· Electronic Verification of Vital Events (EVVE).
Electronically verify date of birth with SSA and the
National Association of r Public Health Statistics and
Information Systems (NAPHSIS).
· Systematic Alien Verification for Entitlements (SAVE).
Electronically verify document held by DHS.
· US Passport Verification Service (USPVS). Electronically
verify US Passport document data against DHS.
· New permanent license with "Real ID Star" printed by
Central Issuance Facility and mailed to applicant.
He addressed slide 8 regarding three different validation steps
which depend on which information is presented by the applicant.
He noted that EVVE verifies that a person's state issued a U.S.
birth certificate that matches the record of the issuing state.
He specified that a query is sent to a database that is
maintained by the National Association for Public Health. He
pointed out that the National Association for Public Health is
not a government agency, but a nonprofit organization.
3:40:17 PM
CHAIR DUNLEAVY asked about information collection and referenced
a comment Commissioner Fisher's made earlier that when the
information is collected, "The information stays with us," but
noted his previous statement that information is contained in a
nongovernmental agency.
COMMISSIONER FISHER explained that the reference he made earlier
was specific to a photo taken by the state that it remains in an
Alaskan database and is not shared or transmitted anywhere else.
He specified that the step he previously noted is a query sent
to confirm data from the National Association for Public Health.
He reiterated that the National Association for Public Health is
not a government agency, but rather a public health organization
that has created a database of birth certificate records and
validating birth certificates with the organization is a
standard practice.
CHAIR DUNLEAVY asked if the information that is contained in
REAL ID is shared with the very federal government and that is
compelling Alaska to do the REAL ID process.
COMMISSIONER FISHER answered no. He specified that the essence
of REAL ID is the state validating the information that has been
provided. He detailed that the EVVE system noted earlier is one
example, but there are two more options depending on what
information is presented by the applicant. He said the first
example is based upon a birth certificate being presented, the
second one is if the person is an immigrant with a visa that is
validated by dipping into another database maintained by DHS. He
explained that the third scenario is if a passport is presented
and the passport is validated by dipping into the database that
is also maintained by DHS.
3:42:22 PM
CHAIR DUNLEAVY asked what the department is sharing with DHS's
database.
COMMISSIONER FISHER explained that the department verifies with
DHS that a passport is valid.
CHAIR DUNLEAVY asked if the department must share data with
DHS's database.
COMMISSIONER FISHER answered correct.
CHAIR DUNLEAVY asked if that data is being shared with DHS's
database.
COMMISSIONER FISHER replied yes. He explained that the
department's "dip" has a certain amount of information
associated with it.
SENATOR WILSON addressed the initial photo used in comparison
for state purposes and asked how the photo will be used. He
inquired if the photo will only be used for state purposes. He
asked if destroying the photo after the comparison has been
considered.
COMMISSIONER FISHER replied that the department has no intention
of doing anything other than storing the photo within the
Division of Motor Vehicles (DMV). He said there is a potential
for a future discussion if the Legislature or someone else deems
there is some other worthy use of the photo. He noted that there
may be a requirement that the DMV photo is maintained.
3:44:10 PM
LESLIE RIDLE, Deputy Commissioner, Alaska Department of
Administration, Juneau, Alaska, explained that the department
saves the photo because law enforcement has the authority to
access the database. She added that the photo is also saved in
case a person loses all forms of identification and the photo
can be used for verification purposes.
SENATOR WILSON asked if a separate database is being created
outside of the current database for driver's license photos.
MS. RIDLE answered no, she explained that the photo would be in
DMV's database.
SENATOR WILSON asked that the photo-to-ID process be explained
in detail and to verify that the photo stays in the state.
3:46:05 PM
MARLA THOMPSON, Director, Division of Motor Vehicles, Alaska
Department of Administration, Anchorage, Alaska, explained that
an individual's photo and information is stored in DMV's
database in Alaska. She detailed that the photo and information
is presented to Gemalto, a company located in Indiana that
prints and mails the driver's license to individuals.
3:50:08 PM
SENATOR WILSON confirmed that Alaskans' biometric data is sent
to Gemalto, an international company that does business in 80
different countries. He asked if Alaskans are being notified
that their biometric data is being sent out of state during the
driver's license process. He assumed that the state's REAL ID
process will be the same as the driver's license process.
MS. THOMPSON explained that all of the information checking
occurs in Alaska prior to sending to Gemalto for printing.
COMMISSIONER FISHER concurred with Ms. Thompson.
CHAIR DUNLEAVY opined that some people would find it hard to
believe that data would never be shared or leaked considering
reports in newspapers that database breaches are occurring.
3:52:07 PM
COMMISSIONER FISHER referenced slide 4, "What Will Change" as
follows:
· Alaska DMV will take a photo at time of application and
store that image in Alaska.
· DMV will validate birth certificates or passports if
provided by applicant.
· REAL ID/driver's license (DL) cards will have unique design
or color indicator to clearly distinguish from noncompliant
cards.
· Noncompliant cards will state "Not for Federal
Identification."
· DL & ID's will now be valid for 8 years instead of 5 years.
He explained that the additional cost for the REAL ID compliant
license is justified from a consumer's perspective based on the
additional years that the ID is valid.
He referenced slide 5, "What Won't Change" as follows:
· DMV will still require the primary document, secondary
document, and proof of Alaska residency for compliant and
noncompliant cards.
· DMV will continue to background check employees.
· DMV will continue to use a secure facility to produce
compliant and noncompliant cards.
3:52:56 PM
He referenced slide 6, "What Do People Need to Bring to Get
Alaska ID/DL" as follows:
· Primary Document:
ƒAn original or certified copy of a U.S. birth
certificate.
ƒPassport or passport card issued by the United States
or U.S. Territory.
ƒA foreign passport with appropriate immigration status
forms issued by DHS, U.S. Citizenship and Immigration
Service.
ƒA resident alien, temporary resident alien, or
employment work authorization document issued by DHS,
U.S. Citizenship and Immigration Service.
ƒU.S. military identification for active duty, retiree,
or reservist.
ƒCertificate of Citizenship, Naturalization, or Birth
Abroad.
· Secondary Document:
ƒAll Primary Documents.
ƒLicense from another state or Alaska.
ƒBureau of Indian Affairs card permit.
ƒEmployee photo ID or School ID.
ƒHealth insurance card.
ƒMedical records.
ƒMilitary dependent identification.
ƒPilot's license.
ƒMarriage License.
ƒVoter Registration Card.
ƒTransportation Worker Identification Credential (TWIC)
Card.
· Proof of Principal Residence:
ƒUtility bill.
ƒAlaska voter registration card.
ƒAlaska title and/or registration (Issued at least 30
days prior to application).
ƒPaycheck Stub.
ƒMedical Assistance card.
ƒPublic Assistance card.
ƒCanceled check or bank statement.
ƒMortgage or rental documents.
ƒLetter from employer on letterhead verifying
applicant's residence address.
· Proof of Social Security Number:
ƒSocial Security number or letter from the Social
Security Office stating that the applicant is not
eligible for a Social Security number.
ƒCommercial drivers must bring their actual Social
Security card.
3:53:27 PM
COMMISSIONER FISHER referenced slide 9, "Timeline" as follows:
· January 2017 - Governor introduced bill to allow DMV to
produce both compliant REAL ID/DLs and noncompliant DLs.
· June 6, 2017 - Alaska's waiver from DHS ends.
· June 7, 2017 - Unless Alaska is granted an additional
waiver, approved federal ID will be required to access
military bases and federal facilities.
· January 22, 2018 -REAL ID compliant ID/DLs or other federal
ID will be required at Transportation Security
Administration (TSA) security check points, unless Alaska
has passed legislation and is working toward compliance.
· October 1, 2020 - REAL ID compliant ID/DLs or other federal
ID will be required at TSA security check points. No
additional HSA waivers will be granted.
· If Real ID bill passes this session:
ƒDecember 2017-DMV completes Alaska License and Vehicle
Information Network (ALVIN) upgrade and begins REAL ID
upgrades.
ƒMid-2018 - first REAL ID cards available to Alaskans.
3:55:11 PM
He referenced slide 10, "REAL ID - Accessing Military Bases, Who
Will Be Most Impacted If Waiver Expires" as follows:
· State Employees:
ƒDMVA,
ƒDHSS,
ƒState Troopers,
ƒDOLWD - OSHA inspectors.
· Civilians:
ƒMoving companies,
ƒFacility maintenance companies,
ƒRetailers,
ƒConstruction workers,
ƒVisitors.
· Anchorage School District:
ƒFour schools.
· Fairbanks North Star Borough School District:
ƒFour schools.
He referenced slide 11, "REAL ID - Possible Alternative
Documents" as follows:
· Prior to the waiver granted in October 2016, Alaska
military installations were poised to require federal ID to
enter a military base.
· Current list of IDs acceptable for access to Joint Base
Elmendorf-Richardson (JBER):
ƒUnited States passports/United States passport cards.
ƒPermanent Resident card/Alien Registration Receipt
Card (Form I-766).
ƒForeign passports with a temporary (I-551) stamp.
ƒAn employment authorization document that contains a
photograph (Form I-766).
ƒCurrent/valid driver 's license or identification card
issued by a state or outlying possession of the U.S.
which follows the REAL ID Act of 2005.
ƒIdentification card issued by federal, state, or local
government agencies that are REAL ID act compliant.
(Minnesota and Washington identification card holders
can have access to federal installations if their
driver licenses bear a small red, white, and blue U.S.
flag logo on the front.)
ƒVA health identification card issued by the U.S.
Department of Veterans Affairs.
ƒMerchant Mariner card issued by DHS/U.S. Coast Guard.
· TSA has not yet identified which forms of federal ID they
will accept in Alaska in lieu of REAL ID/DLs, when
enforcement commences in 2018.
SENATOR WILSON asked Commissioner Fisher to explain the waiver
process, how waivers are granted and what Alaska would need to
do to receive an additional waiver.
3:57:08 PM
COMMISSIONER FISHER explained that Alaska has asked for waivers
from DHS in the past; however, Alaska was notified in January
that a final waiver would be granted until June to see if the
state passes its REAL ID legislation. He noted that DHS said
that an additional waiver should not be expected if the
legislation does not pass.
CHAIR DUNLEAVY noted that under the proposed program a person
does need to get a REAL ID if they do not want to. He asked if
all that needs to be done is repeal the 2008 law. He believed
that a law was passed in Alaska that said the state would not
dedicate resources to assisting with the REAL ID concept.
COMMISSIONER FISHER answered that he thought Chair Dunleavy was
right. He added that the legislation also authorizes for the
collection of another $5 fee.
CHAIR DUNLEAVY asked if Alaskans who do not want to get the REAL
ID will be issued a regular driver's license.
COMMISSIONER FISHER answered yes.
CHAIR DUNLEAVY pointed out that Commissioner Fisher provided a
list of different alternative documents that people could get if
they so choose. He noted that during Commissioner Fisher's
presentation that at the bottom of a slide it says, "TSA has yet
to identify what if any additional documents they will require."
He asked if the TSA statement is correct.
COMMISSIONER FISHER answered true. He said it would seem logical
that TSA would accept passports and that sort of information,
and some others they may not.
4:00:04 PM
CHAIR DUNLEAVY asked if is possible that TSA may change what
they accept for identification.
COMMISSIONER FISHER answered that the list may change. He
asserted that the REAL ID compliant license will be accepted,
but the alternatives may be a shorter list.
CHAIR DUNLEAVY asked if the idea is from the federal government
and not from the state of Alaska.
COMMISSIONER FISHER answered correct.
CHAIR DUNLEAVY asked if the federal government wants the state
to their work for them.
COMMISSIONER FISHER explained that the federal government has
said that they will accept a REAL ID compliant license to enter
a federal facility.
CHAIR DUNLEAVY reiterated that the federal government is having
the state do the work for them. He said there is nothing
preventing the federal government from setting up a federal
office.
COMMISSIONER FISHER concurred and remarked that there is nothing
preventing the federal government from creating their own ID,
but noted that passports are a version of the federal government
ID. He stated that the reason why he is advocating for the REAL
ID is its user-friendly approach where people have an option to
simply pay an extra $5 to be compliant, plus the license will
have three more years of validity to it.
4:02:18 PM
CHAIR DUNLEAVY opined that there is nothing preventing the
federal government from coming up with a new law or a new
regulation that somehow cracks open the new databases.
COMMISSIONER FISHER specified that the databases the department
is dipping into already exist and no new database are being
created through the REAL ID process.
CHAIR DUNLEAVY remarked that the safe approach is to assume that
data is going to be shared in the process rather than saying
that data is not going to be or will not be shared.
COMMISSIONER FISHER noted that checking on someone's passport
does not create a new database. He explained that all the
process does is confirm a valid passport.
CHAIR DUNLEAVY replied that Commissioner Fisher is right. He
specified that once a person provides data, the assumption must
be that the information is going to be shared.
COMMISSIONER FISHER reiterated that the data already exists.
CHAIR DUNLEAVY restated that the chances of a person's data
being shared in the REAL ID process is pretty good. He asked
Commissioner Fisher if his prior assumption is correct.
COMMISSIONER FISHER replied that he does not understand Chair
Dunleavy's question. He repeated that the REAL ID process is a
validation of information that already exists. He remarked that
he is not certain what new data would be stored because the
department is validating data that exists in the federal
government's database.
4:04:50 PM
MS. RIDLE confirmed that no new database is being created with
REAL ID and the information has already come into DMV's
database.
SENATOR COGHILL noted that he appreciated the part where REAL ID
is voluntary. He concurred with Chair Dunleavy's concerns that
the state would be doing the federal government's job. He opined
that the federal government gives and takes away where one day
the federal government might change its mind and require a
national ID card.
SENATOR COGHILL noted that the legislation put into place that
Chair Dunleavy referenced regarding national ID was debated over
whether the state's driver's license was for driving or for
identification purposes. He added that the Legislature stressed
in the legislation that the state would not assist with a
national ID.
He pointed out that commerce was a point made for REAL ID and
noted that Fairbanks has two military bases and its impact is
going to be a big deal. He disclosed that a person can get a
yearlong access to a military base if they do their own
checking.
He summarized that he struggles with a national ID, especially
with sovereign states and commented as follows:
I think we are supposed to be a free people and right
now the fear of government is too high. When you get
any reluctance from me it's going to be based on that
kind of basic philosophy.
4:08:17 PM
SENATOR GIESSEL rhetorically asked the committee what
information the federal government does not already have about
us. She pointed out that she must do a criminal background
check, submit tax returns, obtain a concealed-carry permit, and
use a driver's license. She said while she shares the concerns
voiced in the committee that the federal government is going to
control our movement, she remarked that she did not know if the
federal government has the data already. She stated that she is
not 100-percent sure the legislation is worse than what the
federal government already has.
SENATOR COGHILL replied that the concern is not that the federal
government has the information, but that people fear that the
federal government will use the information on an individual's
ability to move. He opined that that the state struggles with
driver's licenses used for identification rather than for
driving. He stated that he appreciates the voluntary aspect
because it allows commerce to happen. He asserted that he does
not know that he is willing at this point to capitulate with the
federal government.
SENATOR WILSON noted that 19 states do not have REAL ID. He
opined that with 19 states he does not believe airports in those
states are going to shut down within 3 years. He admitted that
there are other options of acquiring federal identification and
noted that some truck-driver associations stated that they are
not effected getting on military bases because the drivers have
their identification cards. He added that other federal IDs
include passport cards and passports. He remarked that the
federal government is not paying Alaska to implement the REAL ID
program and the state will have to bear the $1.5 million to
implement the program. He opined that using the enhanced "chip
cards" would cost less than a whole other driver's license. He
summarized that the REAL ID program is an additional requirement
without a real benefit for the state. He added that he is not
okay with the state storing on a new ID database that can be
used for other purposes deemed by new regulations.
4:12:10 PM
CHAIR DUNLEAVY stated that Commissioner Fisher is not causing
the issue. He said he knows Commissioner Fisher believes REAL ID
is going to facilitate some good things for Alaska. He remarked
that the whole data issue has become insidious and pervasive in
everyday life. He agreed with Senator Giessel that the federal
government has everyone's data, but asserted that he is not yet
willing to rollover and is going to make them work a little
harder to get the data. He reiterated that the federal
government has outlets on bases to do the work, but decided to
coercively have the state help put a program in place by making
it hard for Alaskans to get on bases or fly if the state did not
want to help.
COMMISSIONER FISHER set forth that SB 34 is a policy decision
that the Legislature needs to make. He said his goal is to
provide the necessary information to make an informed and
appropriate decision. He opined that the federal government does
have a program and that is passports and passport IDs. He said
an option to present Alaskans is that the Legislature is not
going to pass REAL ID and citizens will have to get a passport
or passport card, an option that will impose costs and burdens;
then the question is what is the benefit associated with that
and he opined that consideration not to pass REAL ID becomes
more of a statement then any real change. He stated that he
agreed with Senator Giessel that the information is there and
really all the department is doing is validating its existence
and validity of documents that are presented.
CHAIR DUNLEAVY announced that the committee will hear from
invited testimony.
4:15:24 PM
JIM HARPER, Vice President, Competitive Enterprise Institute,
Washington D.C., testified in opposition of SB 34. He disclosed
that he has analyzed REAL ID since the law was passed because
the policy imposes so heavily on state governments to carry out
federal mandates regarding identification. He agreed with
Commissioner Fisher that REAL ID is a policy question and
emphasized that the most important policy is security.
He set forth that based on his study of how a national ID works
and how REAL ID works, there is essentially no national security
benefit from implementing REAL ID. He noted that REAL ID was not
a 9/11 Commission recommendation. He opined that not only does
REAL ID not bring citizens more national security, but the
policy creates new security and privacy problems. He said
creating the REAL ID database creates hacking risks and fraud
risks.
He disclosed that REAL ID requires states to share information
from their databases nationwide. He opined that more ID scanning
will occur when cards are uniform across the country. He set
forth that REAL ID is a national ID that undermines state
sovereignty. He remarked that compliant states will give back
power that they will not get back.
He summarized that REAL ID will ultimately give the federal
government control over an individual's identification, the tool
used by everyone to access all the benefits of society.
4:26:30 PM
CHAIR DUNLEAVY held SB 34 in committee.