Legislature(2017 - 2018)BUTROVICH 205

02/23/2017 03:30 PM STATE AFFAIRS

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Audio Topic
03:31:33 PM Start
03:32:08 PM SB34
04:29:43 PM Presentation: Bridging the Fiscal Gap - Meaningful Reductions & Leveraging Savings by Senator Dunleavy
05:18:13 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 34 DRIVER'S LICENSE & ID CARDS & REAL ID ACT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Presentation: Bridging the Fiscal Gap: TELECONFERENCED
Meaningful Reductions & Leveraging Savings
by Senator Dunleavy
+ Bills Previously Heard/Scheduled 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.                                                                                         

Document Name Date/Time Subjects
SB 34 - Fiscal Note DOA.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - Fiscal Note DPS.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - Fiscal Note MVA.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - FNSB Resolution (Support).pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - Sectional Analysis.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - SSTA Public Testimony 02.23.2017.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34 - Transmittal Letter - Sen. Kelly.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB 34, Version A.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB34 - Alaska Trucking Association (Support).pdf SSTA 2/23/2017 3:30:00 PM
SB 34
SB34 - Anchorage School District (Support).pdf SSTA 2/23/2017 3:30:00 PM
SB 34
Modeling of 50-50 Plan, SB 21, SB 26, and HB 115 by LFD - for SSTA 2-23-2017.pdf SSTA 2/23/2017 3:30:00 PM
SB34 - REAL ID Presentation 2.23.17.pdf SSTA 2/23/2017 3:30:00 PM
SB 34
Dunleavy 50-50 Plan Outline - SSTA 2-23-2017.pdf SSTA 2/23/2017 3:30:00 PM
50-50 Plan 10-Year Outlook for SSTA - 2.23.2017 (corrected).pdf SSTA 2/23/2017 3:30:00 PM
SB 34 - Doyon Utilities Letter of Support.pdf SSTA 2/23/2017 3:30:00 PM
SB 34