HB 180-ELECTRONIC DRIVER'S LICENSES  4:06:44 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 180 "An Act relating to the powers of the commissioner of administration with respect to motor vehicles; relating to electronic identification cards; relating to electronic driver's licenses and permits; and providing for an effective date."   KATHY WALLACE, Director, Division of Motor Vehicles, Department of Administration, presented an overview and a sectional analysis of HB 180 on behalf of the bill sponsor, House Rules by request of the governor. This legislation modernizes Alaska's motor vehicle identification framework by authorizing the Department of Administration to issue electronic driver's licenses, permits, and identification (ID) cards while maintaining physical credentials. This bill establishes regulatory authority for the issuance and use of digital credentials. The bill clarifies requirements for possession and presentation on a mobile device and provides privacy protection. The bill expands the commissioner's authority to enter into data sharing agreements that support identity verification and drivers' record systems. MS. WALLACE reviewed the sectional analysis of HB 180 [included in the committee file], which read as follows [original punctuation provided]: Section 1: This section adds the word "physical" into Alaska Statute 18.65.310(a) to distinguish that a "physical" Identification Card will now be $15. Section 2: This section amends Alaska Statute 18.65.310 by adding a new subsection which establishes that upon application, the department may issue an electronic identification card to a person who currently possesses a physical identification card, and that the electronic identification cards can be a digital companion to physical identification cards, yet it is still mandated that a person retain their physical identification card. This section also requires the department to adopt regulations governing the issuance and use of electronic identification cards. Additionally, the section includes privacy protections by explicitly stating that presenting an electronic ID to law enforcement does not grant permission for officers to search or access any other data on the mobile device while also granting them immunity from liability for any damage to the device unless intentional misconduct is involved. Section 3: This section adds the word "physical" into Alaska Statute 18.65.320(b) to specify that if an identification card is cancelled, they would need to return the physical card to the department. Section 4: This section adds a new subsection into Alaska Statute 28.05.021 which will allow the Commissioner of Administration to enter into agreements with a law enforcement agency, a governmental agency or program or a data exchange service. Section 5: This section adds the word "physical" into Alaska Statute 28.05.051 to state that if a license is suspended, revoked, or cancelled, they would need to return the physical card to the department. This section also allows for designated officials to take possession of a physical license in the event of invalidity. Section 6: This section amends Alaska Statute 28.15.011(b) to require all drivers to have a physical or electronic driver's license when operating a motor vehicle. Section 7: This section amends Alaska Statute 28.15 by adding authority in a new section for the Department of Administration to begin issuing electronic driver's licenses or permits to customers who possess a physical driver's license or permit, which they will be required to retain. This section also requires the Commissioner to adopt regulations for issuance and use of electronic licenses and permits along with an option for the commissioner to require the physical driver's license be carried on their person in certain circumstances. Lastly, this section requires the department to display notice of revocation, cancellation, limitation, restriction, or suspension across the front of the electronic license. Section 8: This section adds "physical or electronic" into Alaska Statute 28.15.131(a) which requires a driver to always have a driver's license in their possession when driving a motor vehicle. Section 9: This section adds a new subsection to Alaska Statute 28.15.131 to protect the drivers' privacy by prohibiting officers from accessing other data on mobile devices when checking an electronic license. It also grants immunity to law enforcement from liability for damage to a mobile device when verifying an electronic driver's license, except in cases of intentional misconduct. Section 10: This section amends Alaska Statute 28.15.151(a) to add retention requirements of every application for an electronic driver's license or permit as well as copies of the electronic licenses and permits. Section 11: This section adds the word "physical" into Alaska Statute 28.15.165(b) to signify a law enforcement officer to seize the physical driver's license after failure of a sobriety test or refusal to submit to a chemical test. Section 12: This section amends Alaska Statue 28.15.166(a) by adding clarifying language mandating a driver to surrender their physical license when requesting an administrative review. Section 13: This section adds the word "physical" into Alaska Statute 28.15.182(d) to signify the Alaska Court System shall require the surrender the physical driver's license when issuing a Limited License in the circumstance of an accident which caused the death of another. Section 14: This section amends Alaska Statue 28.15.183(b) by adding clarifying language ensuring law enforcement to seize a driver's physical license or physical permit. Section 15: This section adds the word "physical" into Alaska Statute 28.15.184(a) to signify a customer who is a minor must surrender the physical driver's license upon request of an administrative hearing if it wasn't seized previously by law enforcement. Section 16: This section amends Alaska Statue 28.15.187(b) by adding clarifying language ensuring law enforcement to seize a driver's physical license or physical permit when violating any driving laws. Section 17: This section amends Alaska Statue 28.15.189(a) by adding clarifying language mandating a driver to surrender their physical license when requesting a revocation review. Section 18: This section amends Alaska Statue 28.15.191(c) by adding clarifying language mandating courts must forward surrendered physical licenses to the DMV when issuing a suspension or revocation. Section 19: This section amends Alaska Statue 28.15.191(g) by adding clarifying language mandating courts must forward surrendered physical licenses to the DMV when a driver is ordered to refrain from consuming alcoholic beverages as part of their sentencing. Section 20: This section amends Alaska Statue 28.15.191(h) by adding clarifying language mandating parole boards to require a person to surrender their physical license and identification card when subject to cancellation. Section 21: This section amends Alaska Statue 28.15.201(b) by adding clarifying language to require the surrender of a physical driver's license when courts issue limited driving privileges. Section 22: This section adds the word "physical" into Alaska Statute 28.20.560(a) to signify when a customer whose license or registration is suspended, or whose policy of insurance or bond is canceled or terminated shall surrender the physical license to the department. This section also adds clarifying language which states if a license isn't surrendered then DMV should contact the Department of Public Safety to immediately direct an officer to obtain possession of the license or registration. Section 23: This section amends AS 28.22.041(d) to require the surrender of the physical license when the DMV issues a limited license following a suspension for failing to comply with the mandatory insurance laws. Section 24: This section amends Alaska Statute 28.33.100 by adding subsection (j) which provides authority to issue an electronic commercial driver's license. Section 25: This section amends Alaska Statute 28.33.140(i) which clarifies that a person disqualified from driving a commercial motor vehicle must surrender their physical license to the department. Section 26: This section amends Alaska Statute 28.35.034 to state that a person who has their license or permit revoked under Alaska Statute 28.15.165 or Alaska Statute 28.15.181 must surrender their physical license. Section 27: This section amends Alaska Statute 33.16.150(i)to require that parolees who are ordered to refrain alcohol must surrender their physical license and that physical license must be forwarded to the department. Section 28: This section provides an immediate effective date per AS 01.10.070(c). 4:15:12 PM STUART RELAY, Staff, Representative Ashley Carrick, Alaska State Legislature, reviewed the fiscal notes for HB 180. The two fiscal notes are both zero. He noted this wasn't the first time for this legislation; in 2022, Senate Bill 194 was very similar. The last time, the fiscal note was quite hefty and thorough. The fiscal note for Senate Bill 194 listed $3.7 million for year one, $2.6 million for year two, $2.1 million for year three, $1 million for year four, and $500,000 per year thereafter. CHAIR CARRICK asked about the cost of implementation and the differences in fiscal notes. LAUREN WHITESIDE, Operations Manager, Division of Motor Vehicles, Department of Administration, state that when the bill was first introduced, the Division of Motor Vehicles (DMV) was in the planning phases of the mobile credential and absorbed all the costs for development. REPRESENTATIVE HIMSCHOOT asked whether the language of Senate Bill 194 was identical or similar. MS. WHITESIDE replied there have been several iterations and variations over the last few legislative sessions. 4:19:02 PM REPRESENTATIVE HIMSCHOOT asked whether, if the license were revoked, the stamp would appear without accessing the Internet. She wanted to confirm there was no glitch in getting the stamp. MS. WHITESIDE replied that the digital driver's license would be removed from the phone. Law enforcement officers would be able to see in the law enforcement operating system it is revoked. REPRESENTATIVE VANCE asked if the DMV has already rolled out the information technology for this digital driver's license and spent millions. She stated that this feels backwards, as the DMV didn't have statutory authority. MS. WHITESIDE replied that because there was no statutory prohibition on a mobile credential, the DMV moved forward with the development. She stated that it is optional. REPRESENTATIVE VANCE stated that now the DMV is asking for statutory authority. She directed attention to Section 4 and asked what government agency may need this program. MS. WHITESIDE replied that Section 4 is because of the driver's license verification system. It is the connection to the Social Security system that Alaska has pulled out of. It prevents Alaskans from applying for social security (SS) cards online. REPRESENTATIVE VANCE replied that within the DMV, someone made the decision that prohibited Alaskans from getting their SS cards online. She asked what data system is going to be utilized by the administration in this agreement. MS. WHITESIDE replied that she didn't understand the question. She said Section 4 is related to the [Driver License Data Verification Service] system and DMV has been trying to get this amendment so Alaska can participate again. 4:24:53 PM REPRESENTATIVE VANCE stated that the administration is spending money before having the statutory authority for something already done. She is concerned about Alaskan's data. She asked why addressing the social security issue wasn't done as a standalone bill. MS. WHITESIDE replied that HB 213 was a standard-alone bill last year. CHAIR CARRICK stated that she is supportive of this legislation. She echoed Representative Vance's concern that the administration is going forward without statutory authority. REPRESENTATIVE VANCE stated she has been on the finance subcommittee for several years. It has been hard for Alaska elders to be compliant with the REAL ID Act. There has been a lack of communication on how the legislature could have helped Alaskans. She has lots of concerns about this bill. 4:27:48 PM REPRESENTATIVE ST. CLAIR asked if the state requires a secondary form of ID. MS. WHITESIDE replied the mobile is a companion credential and must have the original physical credential. 4:29:17 PM REPRESENTATIVE ST. CLAIR asked if the mobile system is redundant or duplicative. MS. WHITESIDE replied this is the national standard. A few states have gone standalone as phones die. REPRESENTATIVE HOLLAND said it is his understanding that the DMV is prohibited from sharing data beyond what is required in the REAL ID Act. He asked how Section 4 would interact or conflict with the Act. MS. WHITESIDE replied it is consistent with the REAL ID Act. REPRESENTATIVE HOLLAND asked what happens under the legislation if his license were revoked. He pointed to language in Section 7, on page 3, which suggests there would be a mark or indication on the driver's license. MS. WHITESIDE replied that when the license is revoked, it would be deleted from the phone. Should this bill be passed, further development will need to happen. REPRESENTATIVE HOLLAND asked whether the digital ID will be acceptable for voting and purchasing alcohol. MS. WHITESIDE replied that that is the goal. Right now, it is not. The division just recently got federal Transportation Security Administration (TSA) acceptance. REPRESENTATIVE MCCABE said a question he is frequently asked is when Alaska is going to get digital identification. He noted that currently the phone holds credit card information and car insurance information. He stated this is the wave of the future. MS. WHITESIDE replied that Alaska is at the forefront of this movement. It is the sixth state to be added into the digital trust. CHAIR CARRICK stated that she likes the digital driver's license, which is the subject of HB 180, and it will be taken up in the future. 4:36:00 PM CHAIR CARRICK announced that HB 180 was held over.