Legislature(2017 - 2018)BUTROVICH 205
02/23/2017 03:30 PM STATE AFFAIRS
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|Presentation: Bridging the Fiscal Gap - Meaningful Reductions & Leveraging Savings by Senator Dunleavy|
* first hearing in first committee of referral
= bill was previously heard/scheduled
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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.