HB 164 - FISH & GAME LICENSING BY ELECTRONICS Number 0362 CHAIRMAN KOTT announced that the next order of business would be HOUSE BILL NO. 164, "An Act relating to electronic application for and issuance of licenses, permits, and tags issued by the Department of Fish and Game; to violations regarding a license, permit, or tag applied for or issued electronically; and providing for an effective date." [The bill was sponsored by the House Rules Committee by request of the Governor. Before the committee was CSHB 164(RES).] Number 0429 KEVIN BROOKS, Director, Division of Administrative Services, Alaska Department of Fish & Game (ADF&G), came forward to explain the need for the legislation. Noting that administration of the licensing program falls under his purview, he said ADF&G is undertaking an ongoing effort to modernize, streamline and enhance customer service in the licensing program. Although ADF&G has instituted an Internet application process for individuals to apply for hunting or fishing licenses, it still involves paper. Now ADF&G hopes to provide, in statute, for an opportunity to issue a license electronically. That follows a natural progression of what the department has done with the Internet application and some 1-800 telephone number applications, as well as other attempts to enhance customer service. MR. BROOKS informed the committee that ADF&G is working with other states to determine the best practices. Some states use their lottery systems, while others use a so-called smart number. There are any number of ways to approach the issuance of licenses. In any case, ADF&G wants to keep up with technology and make it easy for both residents and nonresidents to apply for and receive licenses. Number 0558 MR. BROOKS explained the current Internet application process. An individual goes online to order a license - hunting or fishing tags - and pays with a credit card; within a couple of days, ADF&G sends that license to the applicant. Eventually, the department wants to be able to let someone "hit the field" right away, which might entail a smart number or identification card. He pointed out that ADF&G is trying to determine what would work best in Alaska, including working with the Department of Public Safety (DPS) and the Department of Law to ensure that enforcement or prosecution efforts by those departments aren't compromised by whatever ADF&G does with licensing. The bill addresses those concerns so that ADF&G has a consensus with DPS on anything they might do. Number 0617 CHAIRMAN KOTT asked whether the department issues any licenses over the Internet using a secure means. MR. BROOKS indicated that ultimately the whole process might be paperless. The application process on the Internet is paperless now, but still involves the department to mail out a license afterwards; that system was brought up on the Internet around November 1. A person who signs on to ADF&G's website can go into that application, and punch in the credit card number. That system has sold a couple of thousand of those licenses already, and they expect that to take off with the season approaching. In addition, they are looking at McNeil River permits, proxy hunts, personal use permits, and [drawings for hunts] that the Division [of Wildlife Conservation] implements, for example. The department views those as opportunities to reach out to customers and make it easier for them to get licenses so that they can hit the field and enjoy the resources. CHAIRMAN KOTT asked whether ADF&G notifies a person who has applied over the Internet that the application has been received. MR. BROOKS answered that ADF&G's system works much in the same way as it would if signing on to any other entity on the Internet; there is a confirmation online with a code, and ADF&G will ship out a license within 48 hours. It is working fine, and that is how he bought his own license for the year 2000. He noted that people have been "hitting" the site from Europe and the Lower 48. That piece is in place and working quite well. Number 0758 CHAIRMAN KOTT asked if the bill sets out that the license will be sent out in 48 hours. MR. BROOKS pointed out that HB 164 does not address the issuance. He reiterated that the department is already able to do that under current statute. The policy has been to turn around the issuance of the license within 48 hours in order to ensure that a person in the Lower 48 has the license in his/her hands before leaving for their trip. He posed a situation under HB 164 in which someone from the Lower 48, who had not obtained a license before coming in to Alaska, would be able to purchase the license via the Internet and receive a confirmation number that would allow the person to hunt or fish without having to wait for the paper license. CHAIRMAN KOTT asked if the confirmation number would be what such an individual would need to show an officer in the field. MR. BROOKS explained that the "smart number" would be easily identifiable by an enforcement officer. The bill would require that those purchasing their license in this manner would agree to carry a picture identification. Therefore, it would enhance what [the Department of] Public Safety currently has because only the license is currently required. He informed the committee that in some states the first four or so digits are randomly generated and then others would be encoded to indicate gender, weight, height and hair color. Therefore, the number with photo identification would allow one to determine whether it is the appropriate individual. Furthermore, the number would indicate the type of license. This type of number has been used in Georgia and other states. Number 0960 REPRESENTATIVE MURKOWSKI inquired as to how an individual's residency would be verified. MR. BROOKS noted that the smart number is one concept of how this could work. With a smart number, one of the items that would be encoded in the number would be whether the individual is a resident or a nonresident. REPRESENTATIVE MURKOWSKI posed a situation in which an individual from Oklahoma applies for a license over the Internet and says that he/she is an Alaskan resident. She inquired as to how the department would confirm this individual is not an Alaskan resident and would be required to pay the out-of-state fees. MR. BROOKS informed the committee that such has been encountered with the current Internet application. Therefore, the Internet license includes the same affirmation that is included on the paper license. He pointed out that there is no greater risk of this over the Internet than already would exist for paper applicants. REPRESENTATIVE MURKOWSKI pointed out that when she obtains her fishing license every year, she has to show her Alaska driver's license. She stressed her understanding that in order to obtain a license [at the Alaskan residency rate], one has to show Alaskan identification. MR. BROOKS clarified that photo identification is not absolutely required, although [an Alaskan driver's license] is often used. REPRESENTATIVE MURKOWSKI asked if the application says, "I swear or affirm that everything that I've said is true and that this may be subject to a penalty if I'm lying." MR. BROOKS agreed that "in so many words" that is what the application says. In further response to Representative Murkowski, Mr. Brooks affirmed that there are penalties for fraud. He noted that [the department] has been working very closely with the Department of Law and the Division of Public Safety in order to ensure that nothing is being done to compromise their efforts. Number 1149 REPRESENTATIVE MURKOWSKI commented that she hated to make it too easy for someone [to receive the Alaska rate through fraud] without any verification. She recognized that the current system is not foolproof either. MR. BROOKS remarked that the same discussions have been held internally [in the department]. There will always be those who will try to "get over" and cheat [the system]. He questioned whether making this easier for the general population, that are honest, would encourage others to be criminals who would not otherwise be. He indicated that what was determined [from those internal discussions] was that simplifying the application process would not necessarily make criminals out of honest people. REPRESENTATIVE MURKOWSKI mentioned reviewing the penalties associated with lying on an application and strengthening those. CHAIRMAN KOTT inquired as to how lost licenses or confirmation numbers would be handled. MR. BROOKS answered that currently an individual can obtain a duplicate. In regard to a lost confirmation number, that could be called in and confirmed over the phone in order to provide that lost number. This could be done after providing adequate information so that the department knew who the individual was. He likened the process to that of calling in for credit card information in which the company requests information for verification that the individual speaking is who he/she claims to be. MR. BROOKS returned to Representative Murkowski's comments and noted that perhaps, the example of the person coming to Alaska for a short fishing trip is not the best. The person who will really be offended by the nonresident fees would be a person purchasing an annual license. Number 1321 CHAIRMAN KOTT understood, then, that an individual would have to have in his/her possession, some form of identification. MR. BROOKS explained that if an individual, with a confirmation number, is out in the field he/she must carry photo identification, which is more than under the current requirements. He noted that this electronic system is meant to compliment the current paper system not replace it. CHAIRMAN KOTT surmised, then, that [the requirement to carry photo identification] would address the problem of an out-of- state resident that may want to defraud the State of Alaska because the person would have to present photo identification, a license from the State of Alaska. REPRESENTATIVE CROFT mentioned [the possibility of folks claiming to be] senior citizens [in order to pay the reduced senior citizen fee] of $5 for a license. CHAIRMAN KOTT inquired as to how Canadians from the Yukon are handled. MR. BROOKS pointed out that this licensing program is administered through a network of 1,500 vendors "and so we're going to go to all our Haines vendors and say, 'Oh, by the way if you get someone from the Yukon, with this zip code or whatever, sell them a resident license.'" He acknowledged that would be problematic. However, if that passes, [the department] will poll its database and send out a letter saying that the legislature has allowed Yukon residents to be treated as Alaskans. This would be sent to those who have purchased a license in the past and the individual would be notified of the ability to apply via the Internet, which would not place a burden on the vendors. He commented that [the department] would not initiate it, but could do it. Number 1460 CHAIRMAN KOTT asked what the net cost would be of using the Internet to purchase the license via VISA. MR. BROOKS explained that what is contemplated under HB 164 is that there be a compensation system that pays the vendor 5 percent of the gross sales plus $1 per item sold. Therefore, for a $25 license it would amount to $2.25. He pointed out that the bill limits the compensation for an electronic vendor by capping the amount at the lesser of the existing compensation or $3.00. Therefore, Mr. Brooks envisioned this to occur within the confines of the existing compensation package for the vendor. CHAIRMAN KOTT suggested having this available at a kiosk in the Anchorage International Airport. MR. BROOKS commented, "Just wait." He also commented that in order to have a kiosk in the Anchorage International Airport, the license process would almost have to be paperless. Otherwise, someone would have to be present to issue the license or tags. He reiterated that this [Internet application] is seen as a compliment to the existing system. He noted that with a kiosk system, the kiosk could be placed in some of the larger stores, which he indicated would be mutually beneficial as the store is really interested in outfitting the individual and [the department] is interested in obtaining a database and issuing the license. Mr. Brooks pointed out that this system would be helpful to the extent that individuals themselves can enter the data and there can be a real time updated database. REPRESENTATIVE MURKOWSKI inquired as to what would happen with the king salmon tags as the proposed system would not have the capability. MR. BROOKS acknowledged that this is one of the obstacles. He remarked that in some cases the back of the license is used as a harvest record. He noted that big game tags also pose another challenge. Therefore, [the department] will be required to work with Public Safety in order to avoid a situation in which Public Safety is compromised. In regard to the king salmon stamp, that is a revenue generator. The thinking is that a number could also be assigned to the king salmon stamp. However, the duck stamps and the waterfowl stamps have an art aspect and thus it will take some work to iron these things out. Still, the statutes need to be in place to move forward on this and eliminate the paper requirement. CHAIRMAN KOTT called an at-ease at 5:03 p.m. and reconvened the meeting in less than a minute. He noted that there was no additional testimony. Number 1734 REPRESENTATIVE MURKOWSKI moved to report CSHB 164(RES) out of committee with individual recommendations and the accompanying zero fiscal notes. There being no objection, it was so ordered and CSHB 164(RES) was reported from the House Judiciary Standing Committee.