SB 165-ELECTRONIC DRIVER'S LICENSES  2:30:26 PM VICE CHAIR TOBIN announced the consideration of SENATE BILL NO. 165 "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." 2:30:48 PM At ease. 2:30:58 PM VICE CHAIR TOBIN reconvened the meeting. 2:31:13 PM ERIC DEMOULIN, Director of Finance, Division of Administrative Services, Department of Administration (DOA), explained that SB 165 would modernize Alaska's driver's license program. The electronic driver's license would compliment the physical license and show that Alaska is working towards advancements and greater convenience that he opined the public would like to see from government agencies. He stated that SB 165 would strengthen privacy protections, clarify legal procedures for law enforcement, and ensure that digital driver's licenses are convenient without compromising existing standards. In addition, SB 165 reflects the growing expectation for secure mobile services from government agencies. He reiterated that this would not replace the physical driver's license but would provide greater convenience and expand digital capabilities for Alaskans. 2:32:54 PM FORREST WOLFE, Legislative Liaison, Commissioner's Office, Department of Administration (DOA), Anchorage, Alaska, paraphrased the sectional analysis for SB 165: [Original punctuation provided.] SECTIONAL ANALYSIS  SB 165: Electronic Driver's Licenses Version A 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. 2:34:11 PM MR. WOLFE continued to paraphrase from the sectional analysis for SB 165: [Original punctuation provided.] 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 SB 165 Sectional Analysis ver. A April 9, 2025 Page 2 of 3 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. 2:35:18 PM MR. WOLFE continued to paraphrase from the sectional analysis for SB 165: [Original punctuation provided.] 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. 2:35:53 PM VICE CHAIR TOBIN asked how the electronic license would be managed, whether the program would be secure, and inquired about security measures and consumer protections. MR. WOLFE deferred the question. 2:36:47 PM LAUREN WHITESIDE, Division Operations Manager, Division of Motor Vehicles (DMV), Department of Administration (DOA), Anchorage, Alaska, said the electronic licenses would be managed via digital applications (apps). She explained that both the license holder and license verifier apps were developed by DMV (using DMV's current credential vendor) in accordance with the International Organization for Standardization's (ISO) best standards and best practices. She emphasized that all privacy in the app is protected and tested within the app. No information is stored in the verifier app. 2:37:44 PM SENATOR KIEHL asked for confirmation of his understanding that electronic licensing would only work in areas with a Wi-Fi or cellular signal. 2:37:57 PM MS. WHITESIDE said the electronic license holder app would work; however, any real-time updates would require cellular service. 2:38:19 PM SENATOR KIEHL asked for clarification of whether the app retains information when closed. 2:38:39 PM MS. WHITESIDE clarified that there would be two different apps: an app for the electronic license holder (which would display the license holder's credentials) and one for verification (for use by retailers and law enforcement to verify the license holder's credentials). The driver's license holder app would retain the credential data, thus making it accessible to the license holder regardless of whether a cellular signal is available. She offered an example of an address update to illustrate a situation in which the data would not be updated if no cellular service is available. 2:39:29 PM SENATOR KIEHL asked for further clarification of whether the verifier app would work if no cellular service was available. 2:39:42 PM MS. WHITESIDE said this is a concern in remote areas of the state. She confirmed that the verification app would not function without a cellular signal and said that, in that case, a request to see the physical license card would be justified. She emphasized that the electronic license would not be a standalone credential; rather, it would be a companion to a physical license. Therefore, each license holder should carry a physical license in areas where a cellular signal is not available. 2:40:20 PM SENATOR KIEHL opined that the general impression when considering a digital identification card or digital license is that it is a standalone credential that would render the physical card unnecessary. He noted that, according to SB 165, the commissioner may adopt regulations specifying circumstances in which both forms (physical and electronic) would be required. He commented that this seems to conflict with the testimony, which indicates that both forms of the credential would always be required and asked for further clarification. 2:41:12 PM MS. WHITESIDE confirmed that SB 165 gives the commissioner the authority to designate specific instances in which both forms of the credential would be required. She stated that the DOA recommends that drivers carry both the electronic and physical copy of their license, as there are circumstances in which the mobile app may not work. 2:41:56 PM VICE CHAIR TOBIN directed attention to SB 165, page 3, line 31, which says "physical or electronic". She expressed confusion about when the recommendation would be to carry both the electronic and physical copy, as this is not reflected in the legislation. 2:42:19 PM MS. WHITESIDE said there are a few discrepancies in SB 165 that DOA would recommend clarifying. She indicated that law enforcement agencies have communicated to DOA that the electronic license should be a companion to the physical license. However, DOA would follow SB 165 to the letter if it should pass. 2:43:02 PM VICE CHAIR TOBIN expressed concern that DOA recommends that drivers carry both, while SB 165 states that only one is required. She said that this creates room for different interpretations by law enforcement, which could result in enforcement discrepancies. She stated that the committee would work to clarify this. She asked how this would impact municipalities and municipal policies that require identification. She wondered about the implications for Transportation Security Administration (TSA) Real ID requirements. She also asked about licenses with specific designations restricting purchase or consumption of certain beverages. 2:44:30 PM MS. WHITESIDE said the electronic identification reflects the Real ID designation in two ways and described these. Alcohol prohibition and restriction is also reflected. This information would be available on both the user app and the verifier app. 2:45:05 PM VICE CHAIR TOBIN asked for clarification that the electronic identification with the Real ID star would be accepted by TSA. 2:45:16 PM MS. WHITESIDE said DMV is working on the application for TSA checkpoints. She briefly described this process. She expressed hope that the electronic identification would be accepted at Alaska TSA checkpoints by the end of 2025. 2:45:53 PM SENATOR KIEHL noted hesitancy to obtain Real ID due to privacy concerns. He asked who DOA currently has contracts and agreements with. 2:46:36 PM MS. WHITESIDE said that Section 4 of SB 165 states that data is shared with the National Driver Registry, the Problem Driver Pointer System, the Commercial Driver License Information System, and the State-to-State Verification System. No data is shared with the Drivers License Data Verification Service. 2:47:04 PM SENATOR KIEHL asked whether there are other data exchange services that are not explicitly listed in SB 165. 2:47:17 PM MS. WHITESIDE said she did not think so. 2:47:28 PM SENATOR KIEHL requested a definitive answer. He asked about privacy protections and the agreements that are in place as Alaskans' data is shared to the systems listed in SB 165 - and potentially shared with a new app vendor. 2:47:53 PM MS. WHITESIDE clarified that the agreements discussed in SB 165, Section 4 are not vendor agreements, but are state agency to state agency agreements (i.e. DMV to DMV). She offered examples to illustrate instances in which data is shared between state DMVs. This ensures that unresolved issues in one state are not overlooked when that individual applies for a driver's license in another state. 2:48:49 PM SENATOR KIEHL said this is helpful clarification regarding the existing agreements. He asked what statutory rules and requirements would apply to privacy with an electronic license system. 2:49:15 PM MS. WHITESIDE said the apps were built in accordance with the national standard of privacy protection. No additional agreements would be necessary with the addition of the mobile credential. 2:49:41 PM SENATOR KIEHL asked for a copy of the applicable privacy rules. 2:50:18 PM VICE CHAIR TOBIN requested that DOA provide this information to the committee. She referred to SB 165, Section 4, line 24 and requested information about the agreements with law enforcement. She asked if this is referring solely to state and municipal law enforcement or whether it would also apply to the US Department of Homeland Security, the Bureau of Land Management, US Department of Fish and Wildlife, and other federal agencies. 2:50:26 PM MR. DEMOULIN said questions are warranted when considering whether to implement new technology. He said the intention is to make this as streamlined as possible and create electronic identification as a companion, utilizing the existing regulations and privacy protections that apply to physical identification cards. He drew a parallel with the adoption of credit cards and offered examples to illustrate this. He opined that the adoption of an electronic identification card would benefit Alaskans by creating greater convenience. Regulations can be reconsidered and adjusted over time, as needed. He thanked the committee for hearing SB 165 and said DOA would provide the requested information. 2:51:27 PM VICE CHAIR TOBIN opined that many Alaskans are somewhat skeptical of new technology. She emphasized that, according to the Constitution of the State of Alaska, Alaskans have a right to privacy. 2:51:51 PM VICE CHAIR TOBIN held SB 165 in committee.