Legislature(2017 - 2018)SENATE FINANCE 532

03/27/2017 01:30 PM FINANCE

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Audio Topic
01:32:42 PM Start
01:33:47 PM Confirmations: Alaska Oil and Gas Conservation Commission
02:03:18 PM SB34
03:33:37 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Alaska Oil and Gas Conservation Commission
Hollis French
Daniel Seamount
+ SB 34 DRIVER'S LICENSE & ID CARDS & REAL ID ACT TELECONFERENCED
Heard & Held
+ HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 27, 2017                                                                                            
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:42 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:32 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Hollis French,  Appointee, Alaska  Oil and  Gas Conservation                                                                    
Commission;  Leslie Ridle,  Deputy Commissioner,  Department                                                                    
of  Administration; Don  Ethridge, AFL-CIO,  Juneau; Barbara                                                                    
Huff  Tuckness,  Director  of Governmental  and  Legislative                                                                    
Affairs,  Teamsters Local  959;  Cheri Lowenstein  Director,                                                                    
Administrative Services, Department of Administration.                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Daniel  T.  Seamount, Jr.,  Appointee,  Alaska  Oil and  Gas                                                                    
Conservation   Commission,    Anchorage;   Marla   Thompson,                                                                    
Director,  Division  of  Motor  Vehicles,  Anchorage;  Brian                                                                    
Duffy,  Administrative  Services   Director,  Department  of                                                                    
Military  and Veterans  Affairs;  Sharice Walker,  Community                                                                    
and  Public Relations  Director Fairbanks  Northstar Borough                                                                    
School  District, Fairbanks;  Thomas  Roth, Chief  Operating                                                                    
Officer,   Anchorage   School  District,   Anchorage;   Aves                                                                    
Thompson, Executive  Director, Alaska  Trucking Association,                                                                    
Anchorage; Kara Moriarty, President  and CEO, Alaska Oil and                                                                    
Gas  Association,  Anchorage;  Dan Lowden,  Captain,  Alaska                                                                    
State  Troopers, Anchorage;  Kevin  Pomeroy, Laborers  Local                                                                    
942, Fairbanks;  Eric Glatt, Staff Attorney,  American Civil                                                                    
Liberties  Union,  Anchorage;  Tim Jones,  Doyon  Utilities,                                                                    
Fairbanks;   Pam   Goode,   Self,  Rural   Deltana;   Edward                                                                    
Hasbrouck, Identity Project, San Francisco.                                                                                     
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 34     DRIVER'S LICENSE & ID CARDS & REAL ID ACT                                                                             
                                                                                                                                
          SB 34 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CONFIRMATIONS: ALASKA OIL and GAS CONSERVATION COMMISSION                                                                       
                                                                                                                                
^CONFIRMATIONS: ALASKA OIL and GAS CONSERVATION COMMISSION                                                                    
                                                                                                                                
1:33:47 PM                                                                                                                    
                                                                                                                                
DANIEL  T.  SEAMOUNT, JR.,  APPOINTEE,  ALASKA  OIL AND  GAS                                                                    
CONSERVATION  COMMISSION,  ANCHORAGE  (via  teleconference),                                                                    
(AOGCC) introduced  himself, and discussed  his credentials.                                                                    
He  relayed  his professional  and  personal  history as  it                                                                    
related to AOGCC.                                                                                                               
                                                                                                                                
1:36:59 PM                                                                                                                    
                                                                                                                                
Mr. Seamount concluded his introduction.                                                                                        
                                                                                                                                
Co-Chair MacKinnon  remarked that  Mr. Seamount  came before                                                                    
the committee  with a  vast expansion  of experience  in the                                                                    
field.                                                                                                                          
                                                                                                                                
Mr.  Seamount  relayed  his  desire  for  the  job  and  the                                                                    
qualifications that  prepared him to serve  in the position.                                                                    
He  provided a  brief personal  history (copy  on file).  He                                                                    
hoped to  continue on as  an AOGCC commissioner  and discuss                                                                    
new  ideas pertaining  to fracking,  bond requirements,  and                                                                    
any additional challenges the industry presented.                                                                               
                                                                                                                                
1:41:07 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  probed the new fracking  regulations and                                                                    
how they differed from past regulations.                                                                                        
                                                                                                                                
Mr.  Seamount  replied  that the  new  regulations  required                                                                    
companies to  perform a baseline geo-chemical  survey of all                                                                    
the water wells  within a half of  a mile of the  area to be                                                                    
fracked.  Additionally, operators  were  required to  submit                                                                    
fracking information  to a  national database  accessible by                                                                    
the public.  Thirdly, in  an effort to  make them  easier to                                                                    
locate,  all  regulations  related   to  fracking  had  been                                                                    
grouped together. He furthered that  a hearing had been held                                                                    
on a  potential new regulation  that would require  a public                                                                    
comment period before  a fracking permit could  be issued; a                                                                    
decision on the regulation had not yet been made.                                                                               
                                                                                                                                
1:42:50 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked whether Mr. Seamount  had received                                                                    
any jurisdictional questions about damaged pipelines.                                                                           
                                                                                                                                
Mr. Seamount  responded in the  negative. He noted  that the                                                                    
recent  pipeline  leak  in  Cook  Inlet  was  out  of  AOGCC                                                                    
jurisdiction.                                                                                                                   
                                                                                                                                
1:43:21 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop wondered  whether Mr.  Seamount had  ever                                                                    
participated in the prover ball  calibration at Pump Station                                                                    
One, and  whether the  calibration was  an annual  event for                                                                    
AOGCC.                                                                                                                          
                                                                                                                                
Mr.  Seamount  replied in  the  affirmative.  He added  that                                                                    
there had been  an issue with access for  inspectors to Pump                                                                    
Station One.                                                                                                                    
                                                                                                                                
                                                                                                                                
1:44:01 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  clarified   that   Mr.  Seamount   was                                                                    
commissioner with expertise in geology.                                                                                         
                                                                                                                                
Mr.  Seamount  replied in  the  affirmative.  He noted  that                                                                    
there  was  also  a  public  commissioner  and  a  petroleum                                                                    
engineering commissioner.                                                                                                       
                                                                                                                                
1:44:43 PM                                                                                                                    
                                                                                                                                
HOLLIS FRENCH,  APPOINTEE, ALASKA  OIL AND  GAS CONSERVATION                                                                    
COMMISSION,  discussed  his  qualifications.  He  offered  a                                                                    
brief history  of his experience  as it was relevant  to the                                                                    
position (copy on file).                                                                                                        
                                                                                                                                
1:48:05 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked Mr. French  how heavily  he relied                                                                    
on the opinion of AOGCC staff when making decisions.                                                                            
                                                                                                                                
Mr. French replied that  the commissioners relied enormously                                                                    
on AOGCC  staff. He explained that  much of the work  of the                                                                    
commission  was technically  related. He  said that  permits                                                                    
were  crafted  by engineers  and  geologists  before he  saw                                                                    
them. He said that the staff  was well qualified and that he                                                                    
relied on them for their expertise.                                                                                             
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon queried the level of morale at AOGCC.                                                                        
                                                                                                                                
Mr. French felt that morale was high.                                                                                           
                                                                                                                                
1:49:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  noted that  AOGCC  had  been without  a                                                                    
commissioner   for   several   years   under   the   current                                                                    
administration. She  wondered whether  any permits  had been                                                                    
denied  since   Mr.  French   had  taken   the  commissioner                                                                    
position.                                                                                                                       
                                                                                                                                
Mr. French replied that he  did not believe so, he furthered                                                                    
that the  approval process  may have  taken longer  for some                                                                    
applicants  than others.  He stressed  that  the mission  of                                                                    
AOGCC was to determine whether  the permit complied with the                                                                    
statutes and regulations.                                                                                                       
                                                                                                                                
1:50:48 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked what kind of  instances could slow                                                                    
the approval of an application.                                                                                                 
                                                                                                                                
Mr.  French   responded  that  the  turnaround   for  permit                                                                    
applications was  approximately 10 days. He  said that those                                                                    
that took longer involved newer  companies who were learning                                                                    
to navigate  the state's  standards. He  said that  he could                                                                    
not  speak to  any specific  hang-ups. He  thought that  any                                                                    
backlog involved  adjudications and not permits  and was not                                                                    
substantial.                                                                                                                    
1:51:50 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wondered whether any tension  had arisen                                                                    
from  companies  not  understanding Alaska's  standards  and                                                                    
regulations.                                                                                                                    
                                                                                                                                
Mr. French stated that the  only friction he had noticed was                                                                    
with companies that needed more  training in the Alaskan way                                                                    
of doing business.                                                                                                              
                                                                                                                                
1:52:12 PM                                                                                                                    
                                                                                                                                
Senator  Micciche  felt  that   the  Mr.  French  had  basic                                                                    
industry knowledge and  that his 10 years as  a senator with                                                                    
the  legislature  was  valuable.  He  asked  Mr.  French  to                                                                    
convince  him that  politics  would  not be  a  part of  the                                                                    
decision making at AOGCC.                                                                                                       
                                                                                                                                
Mr. French  replied that his  discretion was limited  by the                                                                    
boundaries set out in Alaska State Statute.                                                                                     
                                                                                                                                
1:55:05 PM                                                                                                                    
                                                                                                                                
Senator Micciche believed  that Mr. French was  going to run                                                                    
into   political   pressure   from   environmental   groups,                                                                    
particularly  because  of  fracking.  He  wondered  how  the                                                                    
environmental  concerns  would  be  balanced  with  industry                                                                    
analysis when drafting regulations.                                                                                             
                                                                                                                                
Mr. French  thought that  the agency's  idea of  putting out                                                                    
the  fracking  permits for  public  notice  over a  ten  day                                                                    
period would  be helpful in  finding a balance.  He believed                                                                    
that the  time would educate the  environmental community to                                                                    
that the permits  were more solid and based  on science than                                                                    
they had initially considered.                                                                                                  
                                                                                                                                
1:58:10 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon referred to  the 2015 Take-Off Ruling and                                                                    
asked when the AOGCC expected to revisit the issue.                                                                             
                                                                                                                                
Mr.  French had  not  be aware  that the  ruling  was to  be                                                                    
revisited. He understood  that the ruling would  set a take-                                                                    
off sufficient to build a large scale gas pipeline.                                                                             
                                                                                                                                
1:58:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon   asked  whether  Mr.  French   had  the                                                                    
necessary tools to perform the job.                                                                                             
                                                                                                                                
Mr. French replied in the affirmative.                                                                                          
                                                                                                                                
1:59:41 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  FORWARDED the  appointments of  Daniel T.                                                                    
Seamount, Jr.  and Hollis French  be to a Joint  Session for                                                                    
consideration in accordance with  AS 39.05.080. This did not                                                                    
reflect an intent  by any member to vote for  or against the                                                                    
confirmation   of  the   individuals   during  any   further                                                                    
sessions.                                                                                                                       
                                                                                                                                
2:00:18 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:02:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 34                                                                                                            
                                                                                                                                
     "An Act  relating to the implementation  of the federal                                                                    
     REAL  ID  Act of  2005;  and  relating to  issuance  of                                                                    
     identification   cards  and   driver's  licenses;   and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
2:03:18 PM                                                                                                                    
                                                                                                                                
LESLIE   RIDLE,    DEPUTY   COMMISSIONER,    DEPARTMENT   OF                                                                    
ADMINISTRATION, introduced herself and her support staff.                                                                       
                                                                                                                                
2:03:48 PM                                                                                                                    
                                                                                                                                
Ms. Ridle discussed the PowerPoint,  "CSSB 34 (STA) Driver's                                                                    
Licenses and ID Cards and REAL ID Act" (copy on file).                                                                          
                                                                                                                                
Ms. Ridle looked at Slide 2, "Federal REAL ID Act":                                                                             
                                                                                                                                
     · 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:                                                                                                                    
                                                                                                                                
          o Requires states to verify a person's identity                                                                       
             and lawful status                                                                                                  
                                                                                                                                
          o Requires special card design features like                                                                          
             digital photo, signature, unique card number                                                                       
                                                                                                                                
          o Requires safeguards for issuance and production                                                                     
             of licenses; i.e. clearly marking temporary,                                                                       
             limited or otherwise non-compliant licenses as                                                                     
             "Not for Federal Identification"                                                                                   
                                                                                                                                
     · 26 states currently offer REAL ID compliant cards                                                                        
                                                                                                                                
     · 19 states including Alaska have extensions allowing                                                                      
        continued issuance and production of non-compliant                                                                      
        cards                                                                                                                   
                                                                                                                                
     · States that are non-compliant - WA, Co-Chair Neuman,                                                                     
        MO, ME, MT                                                                                                              
                                                                                                                                
          o Minnesota and Washington do have Enhanced IDs                                                                       
             (chip cards) which are approved for REAL ID                                                                        
             Compliant and TSA.                                                                                                 
                                                                                                                                
          o Washington, Minnesota have current bills in                                                                         
             2017 for compliance                                                                                                
                                                                                                                                
2:04:44 PM                                                                                                                    
                                                                                                                                
Ms. Ridle addressed Slide 3, Federal REAL ID Act":                                                                              
                                                                                                                                
     Why a Bill is Needed:                                                                                                  
                                                                                                                                
          · AS 44.99.040 (a)(2) prohibits DMV from spending                                                                     
             state funds to comply with REAL ID Act                                                                             
                                                                                                                                
          · Without 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                                                                              
                                                                                                                                
          · REAL ID Act was designed to decrease fraud and                                                                      
             ensure that states are checking the validity of                                                                    
             documents presented with applications                                                                              
                                                                                                                                
2:06:00 PM                                                                                                                    
                                                                                                                                
Ms. Ridle highlighted Slide 4, "CSSB 34 Driver's License,                                                                       
State IDs, REAL ID Act":                                                                                                        
                                                                                                                                
   What CSSB 34 Does:                                                                                                       
                                                                                                                                
     ·  Allows DMV to offer Alaskans a choice between a REAL                                                                    
        ID compliant driver's license or ID, or a "standard"                                                                    
        noncompliant license or ID                                                                                              
                                                                                                                                
     ·  Gives DMV  authority to  upgrade systems,  equipment                                                                    
       and processes for REAL/ID/DL card production                                                                             
                                                                                                                                
     ·  Directs DMS to produce noncompliant licenses and IDs                                                                    
        in Alaska.                                                                                                              
                                                                                                                                
     ·  Directs DMV to give  customers information regarding                                                                    
        how data will be stored and how the licenses/IDs                                                                        
        will be printed                                                                                                         
                                                                                                                                
     ·  Disallows DMV from keeping photos  of applicants for                                                                    
        noncompliant licenses                                                                                                   
                                                                                                                                
     ·  Disallows DMV from  keeping copies  of non-compliant                                                                    
        documents                                                                                                               
                                                                                                                                
     ·  Allows DMV to charge additional $20  fee for REAL ID                                                                    
        compliant licenses and $15 for IDs to cover                                                                             
        increased cost of production.                                                                                           
                                                                                                                                
2:07:29 PM                                                                                                                    
                                                                                                                                
Ms. Ridle looked at Slide 5, "What will change for REAL IC                                                                      
compliant cards":                                                                                                               
                                                                                                                                
     ·  Alaska DMV will take a photo  at time of application                                                                    
        and store that image in Alaska                                                                                          
                                                                                                                                
     ·  DMV will  validate  birth  certificate, passport  or                                                                    
        immigration information if provided by applicant                                                                        
                                                                                                                                
     ·  REAL ID/DL cards  will have  unique design  or color                                                                    
        indicator to clearly distinguish from noncompliant                                                                      
        cards                                                                                                                   
                                                                                                                                
     ·  Noncompliant  cards  will  state  "Not  for  Federal                                                                    
        Identification"                                                                                                         
                                                                                                                                
     ·  DL and ID's will now be valid for 8 years instead of                                                                    
        5                                                                                                                       
                                                                                                                                
2:08:34 PM                                                                                                                    
                                                                                                                                
Ms. Ridle addressed at Slide 6, "What Won't Change":                                                                            
                                                                                                                                
     ·  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 cards                                                                                                 
                                                                                                                                
2:08:51 PM                                                                                                                    
                                                                                                                                
Ms. Ridle looked at Slide 7, "What Do People Need to Bring                                                                      
to Get Alaska ID/DL." She stated that the slide outlined                                                                        
the requirements to obtain and ID.                                                                                              
                                                                                                                                
   Primary Document                                                                                                         
     ·  An original  or  certified  copy  of  a  U.S.  birth                                                                    
        certificate                                                                                                             
     ·  Passport or  passport  card  issued  by  the  United                                                                    
        States or US Territory.                                                                                                 
     ·  A  foreign  passport  with  appropriate  immigration                                                                    
        status forms issued by the U.S. Department of                                                                           
        Homeland Security, U.S. Citizenship and Immigration                                                                     
        Service.                                                                                                                
     ·  A  resident  alien,  temporary  resident  alien,  or                                                                    
        employment work authorization document issued by the                                                                    
        U.S. Department of Homeland                                                                                             
     · Security, U.S. Citizenship and Immigration Service.                                                                      
     ·  U.S.  military   identification  for   active  duty,                                                                    
        retiree, or reservist.                                                                                                  
     ·  Certificate of Citizenship, Naturalization, or Birth                                                                    
        Abroad.                                                                                                                 
                                                                                                                                
   Secondary Document                                                                                                       
     · All Primary Documents                                                                                                    
     · License from another state or AK                                                                                         
     · Bureau of Indian Affairs card permit                                                                                     
     · Employee photo ID or School ID                                                                                           
     · Health insurance card                                                                                                    
     · Medical records                                                                                                          
     · Military dependent identification                                                                                        
     · Pilot's license                                                                                                          
     · Marriage License                                                                                                         
     · Voter Registration Card                                                                                                  
     · TWIC Card                                                                                                                
                                                                                                                                
   Proof of principal residence                                                                                               
     · Utility bill                                                                                                             
     · Alaska voter registration card                                                                                           
     · Alaska title and/or registration (Issued at least 30                                                                     
        days prior to application)                                                                                              
     · Paycheck Stub                                                                                                            
     · Medical Assistance card                                                                                                  
     · Public Assistance card                                                                                                   
     · Canceled check or bank statement                                                                                         
     · Mortgage or rental documents                                                                                             
     · Letter from employer on letterhead verifying                                                                             
        applicant's residence address                                                                                           
                                                                                                                                
   Proof of Social Security Number                                                                                            
     · Social Security Number or letter from Social                                                                             
        Security Office stating that applicant is not                                                                           
        eligible for Social Security Number                                                                                     
     · Commercial Drivers must holders must bring the                                                                           
        actual social security card                                                                                             
                                                                                                                                
     Note: these documents are only needed for the first                                                                        
     issuance of a license/ID                                                                                                   
                                                                                                                                
2:09:12 PM                                                                                                                    
                                                                                                                                
Ms. Ridle highlighted Slide 8,  "Real ID Process." The slide                                                                    
contained a  flow chart that  detailed the Real  ID process.                                                                    
She pointed out  that the yellow highlighted  areas were the                                                                    
changes that  would be  applied should  the REAL  ID process                                                                    
move forward.                                                                                                                   
                                                                                                                                
2:10:19 PM                                                                                                                    
                                                                                                                                
Ms. Ridle turned to Slide 9, which detailed individual data                                                                     
bases, their purpose, who they are run by, and how their                                                                        
utilization would change under the Real ID Act.                                                                                 
                                                                                                                                
2:10:36 PM                                                                                                                    
                                                                                                                                
Ms. Ridle discussed Slide 10, "Timeline":                                                                                       
                                                                                                                                
     · January 2017 - Governor introduced bill to allow DMV                                                                     
        to produce both compliant and noncompliant REAL ID                                                                      
        ID/DLs                                                                                                                  
                                                                                                                                
     · June 6, 2017 - Alaska's waiver from Homeland                                                                             
        Security Agency (HAS) ends                                                                                              
                                                                                                                                
     · June 7, 1017 - Unless we are granted 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 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 HAS waivers will be granted                                                                       
                                                                                                                                
     · If REAL ID bill passes this session:                                                                                     
                                                                                                                                
          o December 2017 - DMV completes ALVIN upgrade and                                                                     
             begins REAL ID upgrades                                                                                            
                                                                                                                                
          o Mid-2018 - REAL ID cards available to Alaskans                                                                      
                                                                                                                                
2:11:58 PM                                                                                                                    
                                                                                                                                
Ms. Ridle looked at Slide 11, "REAL ID - Accessing Military                                                                     
Bases":                                                                                                                         
                                                                                                                                
     Who will be most impacted getting on military bases if                                                                     
     waiver expires?                                                                                                            
                                                                                                                                
             · State employees                                                                                                  
               · DMVA                                                                                                           
               · DHSS                                                                                                           
               · State Troopers                                                                                                 
               · DOLWD - OSHA inspectors                                                                                        
                                                                                                                                
             · Civilians                                                                                                        
               · Moving companies                                                                                               
               · Facility maintenance companies                                                                                 
               · Retailers                                                                                                      
               · Constructions workers                                                                                          
               · Visitors                                                                                                       
                                                                                                                                
             · Anchorage School District                                                                                        
               · 4 Schools                                                                                                      
                                                                                                                                
             · Fairbanks    North   Star    Borough   School                                                                    
               Districts                                                                                                        
               · 4 Schools                                                                                                      
                                                                                                                                
2:13:19 PM                                                                                                                    
                                                                                                                                
Ms. Ridle displayed Slide 12, "REAL ID - Possible                                                                               
alternative documents":                                                                                                         
                                                                                                                                
     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 JBER:                                                                      
                                                                                                                                
        · United States passports/United States passport                                                                        
          cards                                                                                                                 
        · Permanent    Resident   card/Alien    Registration                                                                    
          Receipt Card (Form I-766)                                                                                             
        · Foreign passports with a temporary (I551) stamp                                                                       
        · An   employment    authorization   document   that                                                                    
          contains a photograph (Form I-766)                                                                                    
        · Current/valid driver's license or identification                                                                      
          card issued by a state or outlying possession of                                                                      
          the United States which is in compliance with the                                                                     
          REAL ID Act of 2005                                                                                                   
        · Identification 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.)                                                                                                        
        · VA health identification card issued by the US                                                                        
          Department of Veterans Affairs                                                                                        
        · Merchant 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                                                                                         
                                                                                                                                
2:14:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman asked  whether any  states were  exploring                                                                    
electronic identification as a  method of complying with the                                                                    
Real ID Act.                                                                                                                    
                                                                                                                                
Ms.  Ridle  said that  she  was  unfamiliar with  electronic                                                                    
identification.                                                                                                                 
                                                                                                                                
Co-Chair Hoffman  said that it  was identification  that was                                                                    
stored on an iPhone.                                                                                                            
                                                                                                                                
Ms. Ridle deferred  the question to the  Department of Motor                                                                    
Vehicles (DMV).                                                                                                                 
                                                                                                                                
2:14:48 PM                                                                                                                    
                                                                                                                                
MARLA  THOMPSON,  DIRECTOR,   DIVISION  OF  MOTOR  VEHICLES,                                                                    
ANCHORAGE (via teleconference), shared  that there were test                                                                    
currently  being conducted  involving different  ideas about                                                                    
how to  create and ID that  could be used on  an iPhone. She                                                                    
said that the idea was conceptual at this point in time.                                                                        
                                                                                                                                
2:15:26 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  asked whether the iPhone  option was being                                                                    
explored for use as a Real ID.                                                                                                  
                                                                                                                                
Ms. Thompson  replied that  she would  look into  the matter                                                                    
and get back to the committee.                                                                                                  
                                                                                                                                
2:15:38 PM                                                                                                                    
                                                                                                                                
Senator  Micciche  understood   non-compliant  and  Real  ID                                                                    
licenses would be available at the DMV.                                                                                         
                                                                                                                                
Ms. Ridle replied yes.                                                                                                          
                                                                                                                                
2:15:57 PM                                                                                                                    
                                                                                                                                
Senator  Micciche   clarified  that  those   worrying  about                                                                    
database issues with the Real  ID could use a state driver's                                                                    
license and the other listed  documents in place of the Real                                                                    
ID.                                                                                                                             
                                                                                                                                
Ms. Ridle responded yes.                                                                                                        
                                                                                                                                
2:16:35 PM                                                                                                                    
                                                                                                                                
Senator  von Imhof  noted the  Identity Project  document in                                                                    
member's files (copy on file).                                                                                                  
                                                                                                                                
Ms.  Ridle  stated  that  she  was  not  familiar  with  the                                                                    
document.                                                                                                                       
                                                                                                                                
2:16:48 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:17:49 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:17:52 PM                                                                                                                    
                                                                                                                                
Senator  von Imhof  read  on  of the  bullet  points on  the                                                                    
Identity Project document:                                                                                                      
                                                                                                                                
     A  national  database,   the  "State  Pointer  Exchange                                                                    
     System"  (SPEXS), has  been  created  to implement  the                                                                    
     REAL-ID Act. The Alaska  DMV uploaded information about                                                                    
     all  holders  of Alaska  driver's  licenses  and IDs  -                                                                    
     including name, date of  birth, Social Security Number,                                                                    
     etc.  -  to the  SPEXS  database  over the  weekend  of                                                                    
     January 28, 2017.                                                                                                          
                                                                                                                                
Senator  von  Imhof  expressed   concern  for  the  uploaded                                                                    
information, citing the document:                                                                                               
                                                                                                                                
     SPEXS data  about Alaskans is  stored in Virginia  by a                                                                    
     private organization, AAMVA,  and a private contractor,                                                                    
     Clerus  Solutions. Neither  AAMVA nor  Clerus Solutions                                                                    
     is subject  to the Privacy Act,  Freedom of Information                                                                    
     Act,   or  any   of   the   other  accountability   and                                                                    
     transparency laws that apply to Federal or state                                                                           
     government agencies.                                                                                                       
                                                                                                                                
Ms. Ridle  stated that the  information on the  document was                                                                    
not  entirely   factual.  She   explained  that   there  was                                                                    
information that was  shared between the states  in order to                                                                    
ensure that people  only held one license at a  time and not                                                                    
several  licenses from  several states.  She clarified  that                                                                    
the full  social security  number was  not released,  and if                                                                    
the  state did  not allow  for the  sharing of  information,                                                                    
Alaska would be found non-compliant with the Real ID Act.                                                                       
                                                                                                                                
2:20:20 PM                                                                                                                    
                                                                                                                                
Senator von Imhof understood that  the SPEXS information was                                                                    
stored in Virginia.                                                                                                             
                                                                                                                                
Ms. Ridle explained that AAMVA  was located in Virginia. She                                                                    
noted that more  information on AAMVA could be  found in the                                                                    
appendix of  the presentation. She said  that the non-profit                                                                    
group was comprised  of all of the directors  of DMVs across                                                                    
the United States.                                                                                                              
                                                                                                                                
2:21:14 PM                                                                                                                    
                                                                                                                                
Senator  von Imhof  asked what  sharing  of information  the                                                                    
Alaska DMV  currently participated in, other  than the AAMVA                                                                    
database.                                                                                                                       
                                                                                                                                
Ms. Ridle  referred to Slide  8. She explained that  the top                                                                    
three  checks, not  highlighted in  yellow, represented  the                                                                    
information currently shared between states.                                                                                    
                                                                                                                                
2:22:24 PM                                                                                                                    
                                                                                                                                
Senator von Imhof asked whether  there would be new scanning                                                                    
or checking  protocols used  by the  Transportation Security                                                                    
Administration (TSA) to check the new Real IDs.                                                                                 
                                                                                                                                
Ms. Ridle deferred the question to the DMV.                                                                                     
                                                                                                                                
Ms.  Thompson responded  that the  cards  would not  contain                                                                    
chips that would  be scanned. She said that the  scan of the                                                                    
card would only reveal the  information printed on the front                                                                    
of the card.                                                                                                                    
                                                                                                                                
2:23:39 PM                                                                                                                    
                                                                                                                                
Senator von  Imhof clarified that  the scan would  read only                                                                    
what was printed on the front of the ID card.                                                                                   
                                                                                                                                
Ms. Ridle replied in the affirmative.                                                                                           
                                                                                                                                
2:24:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon asked  how  the  social security  number                                                                    
digits would be recorded.                                                                                                       
                                                                                                                                
Ms.  Ridle responded  that the  number would  not be  on the                                                                    
card, but that  the number would be entered  into the system                                                                    
at the DMV, which was common practice.                                                                                          
                                                                                                                                
2:25:34 PM                                                                                                                    
                                                                                                                                
Ms. Ridle explained  that when the actual  card was scanned,                                                                    
the only  information that  was shared was  what was  on the                                                                    
front  of  the  card.   She  said  that  the  state-to-state                                                                    
database  differed in  that 5  digits of  a person's  social                                                                    
security number were shared information.                                                                                        
                                                                                                                                
Co-Chair MacKinnon  asked why 5  digits were used and  not a                                                                    
lower number.                                                                                                                   
                                                                                                                                
Ms. Thompson responded that the  database was programmed for                                                                    
5 digits.  She said that  the DMV had  asked to use  a lower                                                                    
number,  but had  been told  that it  would not  provide the                                                                    
proper data and would error out.                                                                                                
                                                                                                                                
Co-Chair  MacKinnon   thought  that   4  digits   should  be                                                                    
sufficient.                                                                                                                     
                                                                                                                                
Ms. Thompson  said that the  DMV would continue  to advocate                                                                    
for the use of 4 digits.                                                                                                        
                                                                                                                                
2:27:20 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked whether  the 5 digits were required                                                                    
because of  the platform  that the  DMV used  for electronic                                                                    
transmission, or because  it was required by  the Federal ID                                                                    
Act.                                                                                                                            
                                                                                                                                
Ms.  Thompson  said  that  it  was  required  by  the  SPEXS                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair  MacKinnon asserted  that the  federal Real  ID Act                                                                    
did  not  require the  transfer  of  5  digits of  a  social                                                                    
security number.                                                                                                                
                                                                                                                                
Ms. Thompson agreed.                                                                                                            
                                                                                                                                
2:28:06 PM                                                                                                                    
                                                                                                                                
Senator  Micciche  wondered  why   compliance  was  "such  a                                                                    
priority"  when there  were  alternative  IDs available.  He                                                                    
asked  whether there  was  truth in  the  statement that  40                                                                    
other states were not yet compliant with the Real ID Act.                                                                       
                                                                                                                                
Ms. Ridle  agreed that many  people had passports  and other                                                                    
forma of ID, but that applying  for a passport could be time                                                                    
consuming  and expensive.  She felt  that the  compliant IDs                                                                    
would be  more easily accessible  to all Alaskans,  and were                                                                    
easier to replace if lost.  She expressed concern the people                                                                    
in  rural  Alaska  could  face  challenges  when  seeking  a                                                                    
passport, due to their remote location.                                                                                         
                                                                                                                                
2:29:52 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  asked whether rural areas  would have the                                                                    
tools in place to acquire a Real Id.                                                                                            
                                                                                                                                
Ms. Ridle replied  that Real IDs would  be available through                                                                    
any DMV in the state.                                                                                                           
                                                                                                                                
2:30:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon relayed  that a  new sectional  analysis                                                                    
had not  been distributed  because of confusion  between the                                                                    
bill  that  had  been  introduced   and  the  State  Affairs                                                                    
Committee version.  She asked  Ms. Ridle  if she  could walk                                                                    
the committee through the most recent version.                                                                                  
                                                                                                                                
2:31:17 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:31:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:31:59 PM                                                                                                                    
                                                                                                                                
Ms.  Ridle  shared  that the  current  version  had  several                                                                    
technical changes.                                                                                                              
                                                                                                                                
2:32:43 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:33:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:34:07 PM                                                                                                                    
                                                                                                                                
Ms.  Ridle discussed  the current  version of  the bill  and                                                                    
broke it  down by  sections. [Ms.  Ridle read  directly from                                                                    
CSSB 34(STA, 30-GS1781\O. (copy on file).]                                                                                      
                                                                                                                                
2:38:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  asked  whether the  8  year  termination                                                                    
would apply to commercial driver's licenses (CDL).                                                                              
                                                                                                                                
Ms. Thompson  explained that the  CDL expiration  date would                                                                    
be the 8th year following issuance of the license.                                                                              
                                                                                                                                
2:39:13 PM                                                                                                                    
                                                                                                                                
Ms. Ridle continued to read from the legislation.                                                                               
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:43:04 PM                                                                                                                    
                                                                                                                                
BRIAN  DUFFY, ADMINISTRATIVE  SERVICES DIRECTOR,  DEPARTMENT                                                                    
OF  MILITARY  AND  VETERANS  AFFAIRS  (via  teleconference),                                                                    
testified  that the  Joint Base  Elmendorf-Richardson (JBER)                                                                    
was  in  compliance with  provisions  of  the Real  ID  ACT.                                                                    
Visitors that  wished to obtain  unescorted access,  and did                                                                    
not  have identification  cards compliant  with the  Read ID                                                                    
Act, were denied entry or were  required to be escorted by a                                                                    
United  State  Department  of Defense  (DOD)  ID  cardholder                                                                    
while  on  the  installation.  He said  that  this  included                                                                    
individuals  with driver's  licenses  from Maine,  Missouri,                                                                    
and  Montana,  and  those with  non-enhanced  licenses  from                                                                    
Minnesota or  Washington. He stated  that if  Alaska Statute                                                                    
did not change before  the extension expiration date, Alaska                                                                    
driver's licenses and similar  identification cards would be                                                                    
added   to  the   list   of   identification  cards   deemed                                                                    
"insufficient." He relayed that  JBER leaders estimated that                                                                    
approximately   14,000   contractors  and   local   services                                                                    
providers   could  be   affected   and   required  to   have                                                                    
alternative forms  of identification, or would  be unable to                                                                    
access  the  installation.  He stressed  that  it  would  be                                                                    
unreasonable to  assume that the installation  could provide                                                                    
an escort for  those visitors. He said  that currently those                                                                    
without  other  DOD  credentials used  base  issued  defense                                                                    
biometric identification cards  to obtain unescorted access.                                                                    
Upon that  cards normal expiration  date, Real IDs  would be                                                                    
necessary to renew.  He opined that the  incoming class from                                                                    
eh youth military academy would  be affected because many of                                                                    
them would  turn 18  while enrolled and  would need  Real ID                                                                    
compliant forms  of identification  to obtain card  for base                                                                    
access.                                                                                                                         
                                                                                                                                
2:47:07 PM                                                                                                                    
                                                                                                                                
SHARICE  WALKER,  COMMUNITY  AND PUBLIC  RELATIONS  DIRECTOR                                                                    
FAIRBANKS NORTHSTAR BOROUGH  SCHOOL DISTRICT, FAIRBANKS (via                                                                    
teleconference),  spoke in  support  of the  bill. She  said                                                                    
that  there  were  3  schools in  her  district  on  Eielson                                                                    
Airforce  Base,  and one  on  Fort  Wainwright, that  served                                                                    
approximately  1400  students  and  had  162  regular  staff                                                                    
members  in addition  to many  district-wide employees.  She                                                                    
added that the schools  regularly needed substitute teacher,                                                                    
as  well.  She lamented  that  without  a state  ID  option,                                                                    
hundreds of staff  members would have to  procure a passport                                                                    
in order to  continue to do their jobs. She  shared that the                                                                    
district  already struggled  to attract  substitute teachers                                                                    
to fill  absences at  Eielson because  of its  distance from                                                                    
town, and  believed that the  requirement to get  a passport                                                                    
would  add to  that challenge.  She  said that  most of  the                                                                    
children enrolled  in the  schools were  military connected,                                                                    
but  that  some  were  not,   and  those  civilian  students                                                                    
families  would  lose  access to  their  children  while  at                                                                    
school. She stated that the  district supported that passage                                                                    
of SB  34 in the  interest of maintaining  excellent service                                                                    
to  the  students  while sustaining  the  longstanding  bond                                                                    
between local communities and the military population.                                                                          
                                                                                                                                
2:49:35 PM                                                                                                                    
THOMAS  ROTH,  CHIEF  OPERATING  OFFICER,  ANCHORAGE  SCHOOL                                                                    
DISTRICT, ANCHORAGE  (via teleconference), spoke  in support                                                                    
of  the bill.  He said  that the  Anchorage school  district                                                                    
educated 1,597 student  at JBER, the majority  of which were                                                                    
the dependents  of active duty  Army soldiers and  Air Force                                                                    
airmen,   at   5   elementary   schools   located   on   the                                                                    
installation.  He  stated  that  the  districts  information                                                                    
technology department was also  located on the installation.                                                                    
He relayed from  JBER, the district bussed  25 special needs                                                                    
students  to  schools  throughout   the  district,  and  513                                                                    
secondary  school students  to  middle and  high schools  in                                                                    
Eagle  River and  Anchorage. He  related that  at any  given                                                                    
time  during a  standard day  up to  500 district  employees                                                                    
supported JBER activities, schools,  and students. He shared                                                                    
that  in   addition  to  educating  students   the  district                                                                    
provided   administrative   oversight   to   school   staff,                                                                    
maintained,  repaired, and  cleaned all  district facilities                                                                    
and equipment, performed  and managed construction projects,                                                                    
managed  and maintained  networks,  and generally  performed                                                                    
all of  the functions expected of  a neighborhood elementary                                                                    
school. He  shared that  the district  was going  to mandate                                                                    
that  current   and  future  employees  obtain   a  Real  ID                                                                    
compliant identification at  individual cost beginning early                                                                    
April  2017. He  concluded  that the  legislation should  be                                                                    
enacted.                                                                                                                        
                                                                                                                                
2:52:16 PM                                                                                                                    
                                                                                                                                
AVES   THOMPSON,   EXECUTIVE   DIRECTOR,   ALASKA   TRUCKING                                                                    
ASSOCIATION,  ANCHORAGE   (via  teleconference),   spoke  in                                                                    
support  of the  legislation. He  said that  many commercial                                                                    
vehicle drivers,  both CDL  and non-CDL,  had need  to enter                                                                    
military  installations   in  the  course  of   their  daily                                                                    
deliveries. He  felt that the  impact to those  drives would                                                                    
be  considerable.  He  relayed   his  understanding  of  the                                                                    
federal  law.  He  listed the  commodities  that  the  truck                                                                    
drivers were responsible for providing to military bases.                                                                       
                                                                                                                                
2:54:40 PM                                                                                                                    
                                                                                                                                
KARA  MORIARTY,  PRESIDENT  AND  CEO,  ALASKA  OIL  AND  GAS                                                                    
ASSOCIATION,  ANCHORAGE (via  teleconference), testified  in                                                                    
support  of  the bill.  She  relayed  to the  committee  her                                                                    
understanding of  what the legislation would  do. She stated                                                                    
that the issue was important to  the oil and gas industry as                                                                    
most of  their current  production was  on the  North Slope,                                                                    
and nearly every employee utilized  air travel that required                                                                    
passing through  TSA checkpoints  to get  to work.  She said                                                                    
that  without passage  of the  bill all  of their  employees                                                                    
would  be required  to  get  a passport,  which  would be  a                                                                    
challenge  to   accomplish  by  the  federal   deadline  for                                                                    
compliance.                                                                                                                     
                                                                                                                                
2:56:30 PM                                                                                                                    
                                                                                                                                
DAN LOWDEN,  CAPTAIN, ALASKA STATE TROOPERS,  ANCHORAGE (via                                                                    
teleconference),   relayed  that   he   was  available   for                                                                    
questions.                                                                                                                      
                                                                                                                                
Vice-Chair  Bishop  asked  what   kind  of  information  was                                                                    
currently  available  to law  enforcement  when  they ran  a                                                                    
license during a routine traffic stop.                                                                                          
                                                                                                                                
2:56:58 PM                                                                                                                    
                                                                                                                                
Mr.  Lowden replied  that the  ID would  be run  through the                                                                    
National Crime  Information Center (NCIC) in  order to check                                                                    
for  traffic  histories,  warrants,  and  locates  in  other                                                                    
cities.                                                                                                                         
                                                                                                                                
2:57:31 PM                                                                                                                    
                                                                                                                                
KEVIN   POMEROY,   LABORERS   LOCAL  942,   FAIRBANKS   (via                                                                    
teleconference),  testified  in  support  of  the  bill.  He                                                                    
shared that  he represented  over 5,000 members  from Barrow                                                                    
to None,  Kotzebue, the Interior,  and Southeast  Alaska. He                                                                    
relayed that  a substantial amount of  military construction                                                                    
was  scheduled  to  begin, which  would  require  scores  of                                                                    
additional seasonal  construction workers all  needing entry                                                                    
to  military bases.  He said  that  there had  been a  major                                                                    
effort over the past several  months to focus on Alaska hire                                                                    
on many  of the projects. He  said that the state  needed to                                                                    
issue  Real ID  compliant identification,  otherwise Alaskan                                                                    
workers will  be replaced by  out-of-state workers  who have                                                                    
Read ID  compliant identification. He expressed  concern for                                                                    
Alaskans who travel in-state for  work, or who had to travel                                                                    
for medical  reasons. He  felt that it  was urgent  that the                                                                    
state offer the  choice to get a federally  compliant ID. He                                                                    
lamented  that otherwise,  Alaska  would be  the only  state                                                                    
where a person  would need a passport in order  to visit the                                                                    
state capital.                                                                                                                  
                                                                                                                                
3:01:25 PM                                                                                                                    
                                                                                                                                
DON  ETHRIDGE,  AFL-CIO, JUNEAU,  spoke  in  support of  the                                                                    
legislation.  He relayed  that  passports took  a very  long                                                                    
time to  receive, even when expedited,  which was expensive.                                                                    
He countered  that renewing  a license at  the DMV  was much                                                                    
faster. He stated that most  of the information necessary to                                                                    
receive a Real ID was already available online.                                                                                 
                                                                                                                                
3:03:21 PM                                                                                                                    
                                                                                                                                
BARBARA   HUFF  TUCKNESS,   DIRECTOR  OF   GOVERNMENTAL  AND                                                                    
LEGISLATIVE AFFAIRS,  TEAMSTERS LOCAL 959, spoke  in support                                                                    
of  the  bill. She  shared  that  her members  were  already                                                                    
subject  to  extensive   background  checks.  She  expressed                                                                    
concern  that  workers  from   out-of-state  could  have  an                                                                    
advantage  over Alaskan  workers without  Real ID  compliant                                                                    
identification.  She testified  that  the legislation  would                                                                    
ensure  that  her  member's   work  opportunities  were  not                                                                    
jeopardized,  and   that  the  public  was   not  negatively                                                                    
impacted.                                                                                                                       
                                                                                                                                
3:05:57 PM                                                                                                                    
                                                                                                                                
ERIC GLATT, STAFF ATTORNEY,  AMERICAN CIVIL LIBERTIES UNION,                                                                    
ANCHORAGE (via  teleconference), spoke in opposition  to the                                                                    
legislation.   He  expressed   concern  about   the  privacy                                                                    
implications  of the  Real  ID  Act. He  said  that the  act                                                                    
placed  an unfair  burden on  the people  of Alaska  without                                                                    
proof of  it furthering  any compelling  security interests.                                                                    
He   hope   that   the    committee   would   consider   the                                                                    
recommendations  from  the  ACLU,  and  take  the  steps  to                                                                    
compromise Alaskans  privacy to  the least  extent possible.                                                                    
He spoke  of the work that  the ACLU had done  in opposition                                                                    
to the Real ID Act.  He relayed that written recommendations                                                                    
had been sent to the committee (copy on file).                                                                                  
                                                                                                                                
3:08:15 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon   expressed    appreciation   for   the                                                                    
testimony.                                                                                                                      
                                                                                                                                
3:08:19 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop asked Mr. Glatt for a contact number.                                                                         
                                                                                                                                
Mr. Glatt replied 907-263-2005.                                                                                                 
                                                                                                                                
3:09:38 PM                                                                                                                    
TIM JONES, DOYON  UTILITIES, FAIRBANKS (via teleconference),                                                                    
testified that  the company owned, operated,  and maintained                                                                    
the utilities  of three army  installation in the  state. He                                                                    
expressed  support for  the legislation.  He  said that  his                                                                    
company employed  170 Alaskans, all of  whom required access                                                                    
to military installations as a  requirement of holding their                                                                    
job.  He feared  that if  the state  remained non-compliant,                                                                    
non-Alaskan  companies would  be  awarded  contracts in  the                                                                    
state, rather than Alaskan companies.                                                                                           
                                                                                                                                
3:12:14 PM                                                                                                                    
                                                                                                                                
PAM GOODE,  SELF, RURAL DELTANA (via  teleconference), spoke                                                                    
against  the  bill.  She  believed  that  the  bill  was  in                                                                    
violation of the Constitution.                                                                                                  
                                                                                                                                
3:14:27 PM                                                                                                                    
                                                                                                                                
EDWARD  HASBROUCK,  IDENTITY  PROJECT,  SAN  FRANCISCO  (via                                                                    
teleconference),  spoke against  the legislation.  He stated                                                                    
that he  had submitted a  written testimony (copy  on file).                                                                    
He  highlighted  the  possible fiscal  implications  of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
3:18:04 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
3:18:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon solicited  comments in  response to  the                                                                    
public and invited testimony.                                                                                                   
                                                                                                                                
Ms.  Ridle  replied that  the  original  bill and  the  most                                                                    
recent  version  both  offered a  choice  to  Alaskans.  She                                                                    
stressed  that  the idea  that  everyone  could just  get  a                                                                    
passport seemed easy enough in  theory, but that the reality                                                                    
was that it would be  a cumbersome and expensive process for                                                                    
many  Alaskans.  She  assured the  committee  that  the  DMV                                                                    
encrypted  their data  in order  to ensure  that information                                                                    
was kept confidential.                                                                                                          
                                                                                                                                
3:19:46 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked how  many states were participating                                                                    
in the AAMVA program.                                                                                                           
                                                                                                                                
Ms. Ridle deferred the question to the DMV.                                                                                     
                                                                                                                                
Ms. Thompson responded that 15  states were participating in                                                                    
the AAMVA program.                                                                                                              
                                                                                                                                
3:20:36 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon queried the  issue surrounding the number                                                                    
of  digits of  a  social security  number  that were  shared                                                                    
using the program.                                                                                                              
                                                                                                                                
Ms.  Thompson replied  that the  state-to-state program  was                                                                    
developed and  run by  the states. She  said that  the point                                                                    
was  to ensure  that  people only  had  one drivers  license                                                                    
issued to them at a time.                                                                                                       
                                                                                                                                
3:21:20 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  maintained   that   five  digits   was                                                                    
unacceptable.                                                                                                                   
                                                                                                                                
Ms. Thompson replied that the  DMV was simply doing what was                                                                    
required and that she could  not change the entire system in                                                                    
order to accommodate Alaskans concerns for privacy.                                                                             
                                                                                                                                
Ms. Ridle  furthered that the  DMV could lobby for  a change                                                                    
to four digits.                                                                                                                 
                                                                                                                                
3:22:43 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon    asked   for   the    timeframe   for                                                                    
implementation  if the  bill were  to pass  this legislative                                                                    
cycle.                                                                                                                          
                                                                                                                                
Ms. Ridle  replied that  if a  bill were  to pass  the state                                                                    
would receive another  waiver to allow for  set-up time. She                                                                    
noted  that there  was not  a DMV  in ever  community, which                                                                    
meant that the  earliest that the process  could begin would                                                                    
be spring of 2018.                                                                                                              
                                                                                                                                
3:23:50 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  understood  that no  waivers  would  be                                                                    
granted after 2020.                                                                                                             
                                                                                                                                
Ms. Ridle replied in the affirmative.                                                                                           
                                                                                                                                
3:24:09 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon surmised that  the state would handle the                                                                    
change through  an extension on  the waiver  process, versus                                                                    
the DMV issuing compliant licensure.                                                                                            
                                                                                                                                
Ms. Ridle  explained that the  two would be  concurrent; the                                                                    
state  would   receive  the  waiver  while   the  changeover                                                                    
occurred.  She hoped  that the  waiver could  extend for  as                                                                    
long   as  it   took  to   get  all   Alaskans  the   proper                                                                    
identification under the law.                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon spoke  to the  possible expense  for the                                                                    
equipment needed to produce the  licensure in the state. She                                                                    
wondered whether  the administration  could comply  with the                                                                    
changes proposed in the legislation.                                                                                            
                                                                                                                                
Ms.  Ridle  replied  that  compliance  would  be  impossible                                                                    
without first  purchasing the  proper equipment.  She shared                                                                    
that  fiscal  note  information  on  the  cost  of  in-state                                                                    
production could  be made available.  She said that  the DMV                                                                    
would prefer to use an outside company for printing of IDs.                                                                     
                                                                                                                                
3:26:41 PM                                                                                                                    
                                                                                                                                
CHERI   LOWENSTEIN    DIRECTOR,   ADMINISTRATIVE   SERVICES,                                                                    
DEPARTMENT  OF  ADMINISTRATION,  interjected that  the  $1.5                                                                    
million reflected  in the  fiscal note  would go  toward the                                                                    
purchasing  of   equipment  to  make   the  state   real  ID                                                                    
compliant; the additional  $530,000 in the note  was for the                                                                    
production  of  the  licenses   in-state.  The  fiscal  note                                                                    
reflected the  one position that  would be dedicated  to the                                                                    
project,  also  funds  were being  requested  to  cover  the                                                                    
additional cost of producing Real IDs.                                                                                          
                                                                                                                                
3:27:57 PM                                                                                                                    
                                                                                                                                
Ms.  Ridle  explained that  the  note  envisioned a  central                                                                    
issuance in the state.                                                                                                          
                                                                                                                                
3:28:50 PM                                                                                                                    
                                                                                                                                
Senator Micciche  asked whether  a Real  ID would  serve the                                                                    
same purposes as a passport for international travel.                                                                           
                                                                                                                                
Ms. Ridle  replied in  the negative.  She believed  a person                                                                    
would  still  need  a  passport to  travel  outside  of  the                                                                    
country.                                                                                                                        
                                                                                                                                
3:29:04 PM                                                                                                                    
                                                                                                                                
Senator Micciche  understood that  a passport  would satisfy                                                                    
all of the requirements of the Real ID Act.                                                                                     
                                                                                                                                
Ms. Ridle replied in the affirmative.                                                                                           
                                                                                                                                
3:30:10 PM                                                                                                                    
                                                                                                                                
Senator Micciche understood that the program was optional.                                                                      
                                                                                                                                
Ms. Ridle  replied that  the process at  the DMV  would have                                                                    
been  identical for  compliant  and  non-compliant IDs.  She                                                                    
stated that the under the  current version photos, and other                                                                    
documentation would  not be retained  by the DMV;  those who                                                                    
obtained a  non-compliant license would have  to produce all                                                                    
of  the pertinent  documents each  time  they renewed  their                                                                    
license.                                                                                                                        
                                                                                                                                
3:30:36 PM                                                                                                                    
                                                                                                                                
Senator von  Imhof supported  the use of  four and  not five                                                                    
digits of a social security  number. She asked whether there                                                                    
was a  way to be in  compliance, while meeting the  needs of                                                                    
some of the privacy concerns that had been raised.                                                                              
                                                                                                                                
Ms. Ridle responded that there  were ways that the DMV could                                                                    
explore the suggestions made by  the ACLU. She said that she                                                                    
was not sure if electronic  copies of documents needed to be                                                                    
kept.                                                                                                                           
                                                                                                                                
3:32:20 PM                                                                                                                    
                                                                                                                                
Ms.   Thompson  believed   that  a   paper  copy   would  be                                                                    
sufficient, but that she would need to double check.                                                                            
                                                                                                                                
Co-Chair  MacKinnon announced  that amendments  were due  to                                                                    
her office by 5pm on  Tuesday, March 28, 2017. She discussed                                                                    
housekeeping.                                                                                                                   
                                                                                                                                
SB  34  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:33:37 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:33 p.m.                                                                                          

Document Name Date/Time Subjects
SFC 2017 Confirmation Information Packet 2.pdf SFIN 3/27/2017 1:30:00 PM
Confirmations 2017
SB 34 2017.03.26 ACLU Amendments to SB 34.pdf SFIN 3/27/2017 1:30:00 PM
SB 34
SB 34 PapersPlease-REAL-ID-Facts for-Alaskans.pdf SFIN 3/27/2017 1:30:00 PM
SB 34
SB 34 2017.03.26 ACLU Analysis of SB 34.pdf SFIN 3/27/2017 1:30:00 PM
SB 34
SB 34 CSSB34 (STA) REAL ID Presentation 3.27.17 Finance FINAL.pdf SFIN 3/27/2017 1:30:00 PM
SB 34
SB 34 AOGA REAL ID FINAL.pdf SFIN 3/27/2017 1:30:00 PM
SB 34