HB 226-PERSONAL INFORMATION BREACH REPRESENTATIVE KOTT announced that the first order of business would be HOUSE BILL NO. 226, "An Act relating to breaches of security involving personal information; and relating to credit report security freezes." [Before the committee was CSHB 226, Version 24-LS0689\I.) REPRESENTATIVE KOTT reminded the committee that HB 226 had been held over for amendments and that public testimony had been closed at the prior hearing. 3:30:17 PM REPRESENTATIVE GUTTENBERG moved that the committee adopt Amendment 1, which read: Page 1, lines 7 - 8: Delete "engages in business activities in the state, uses in the business" Insert "engages in activities in the state, uses" Page 2, line 3: Delete ""business activities in the state" means business activities" Insert ""activities in the state" means activities" Page 2, line 5: Delete "business" Page 2, line 17: Delete "business" Insert "person" Page 2, line 18: Delete "business" Insert "person" Page 2, line 19: Delete "person" Insert "individual" Page 2, line 24: Delete "for the business" Page 2, line 31: Delete "business" Insert "person's activities" Page 3, line 2: Delete "business" Insert "person's activities" Page 3, line 19: Delete "business" Insert "person" Page 3, following line 19: Insert a new paragraph to read: "(2) "person" means a business entity or a state or local governmental body, subdivision, or agency, except for an agency of a judicial branch of state government." Renumber the following paragraph accordingly. REPRESENTATIVE ROKEBERG objected for discussion purposes. REPRESENTATIVE LES GARA, Alaska State Legislature, sponsor, explained that Amendment 1 addresses the desire for government to inform an individual when it accidentally breaches his/her security. REPRESENTATIVE GUTTENBERG asked if there have been any cases in which the government has had this problem. REPRESENTATIVE GARA replied no, but indicated that there could be such a case in the future. 3:31:51 PM REPRESENTATIVE ROKEBERG directed attention to page 1, line 7, which says, "If a person engages in business activity in the state". He expressed concern with the use of the term "person" because per the drafting manual that term would be defined as including a business. REPRESENTATIVE GARA said that the term "person" is defined in statute to include business, and with Amendment 1 it would also include the state. He relayed that the intention is to make this apply to businesses that hold one's personal information and the term "person" is defined to include companies as well. 3:32:58 PM REPRESENTATIVE ROKEBERG asked if the term "person" includes that a "person is a person" and not some other entity. REPRESENTATIVE GARA agreed that the term "person" should be defined to include a "person." 3:33:23 PM REPRESENTATIVE ROKEBERG commented that there seems to be an intertwining between activities, business, and persons. REPRESENTATIVE LYNN related his understanding then that a "person" can be a corporate entity or an individual. 3:34:39 PM REPRESENTATIVE KOTT clarified that corporations and business entities are now considered "persons" while people are "individuals." REPRESENTATIVE ROKEBERG pointed out that under Amendment 1 the definition of "person" doesn't include people. 3:36:07 PM REPRESENTATIVE GARA acknowledged that at some time there was a decision to define "person" as something that doesn't include people. In order to be clear, Representative Gara stated that HB 226 is intended to apply to businesses, corporations, [individuals], and governments. 3:36:32 PM REPRESENTATIVE GARA clarified that the term "person" in the law and HB 226 refer to a governmental entity, a business entity, and a person. REPRESENTATIVE ROKEBERG said that the legislation doesn't say that and in fact, says that the judicial branch is excluded. 3:37:07 PM REPRESENTATIVE GARA agreed that Amendment 1 could be amended to insert that a "person" includes a person. REPRESENTATIVE GUTTENBERG inquired as to why the judicial branch is being excluded. He then inquired as to whether the definition of "person" is different than what's in statute. REPRESENTATIVE ROKEBERG opined that it's fairly consistent with the law. REPRESENTATIVE KOTT pointed out that Amendment 1 deletes "person" and inserts "individual". REPRESENTATIVE GARA noted that there is a statutory definition of "person." [Within Amendment 1], the bill drafter was responding to the suggestion that HB 226 should also apply to governmental entities, and thus drafted it such that the definition of "government entity" includes a person. 3:38:59 PM REPRESENTATIVE GARA suggested that perhaps at the end of line 20 on page 2 the following could be inserted, ", and as defined in AS 01.10.060". He pointed out that in AS 01.10.060 the definition of "person" is as follows: "(8) "person" includes a corporation, company, partnership, firm, association, organization, business trust, or society, as well as a natural person;". However, that definition doesn't include a governmental entity, which is why the drafter had to include "government entity" on line 18. REPRESENTATIVE ROKEBERG characterized that as "awfully sloppy" because there would be two definitions of "person." 3:39:58 PM REPRESENTATIVE KOTT asked if the language in AS 01.10.060 that defines "person" could be utilized as well as language specifying that the definition of "person" also includes "a governmental entity" in AS 45. REPRESENTATIVE GARA replied yes. 3:41:00 PM REPRESENTATIVE KOTT, upon determining that his suggestion addressed Representative Rokeberg's concern, [offered] a conceptual amendment to Amendment 1 such that "person" would be defined as it is under AS 01.10.060 and include a governmental entity. REPRESENTATIVE GUTTENBERG accepted that as a friendly amendment. 3:42:02 PM REPRESENTATIVE ROKEBERG said that he didn't object to the conceptual amendment to Amendment 1. [Amendment 1 was treated as adopted.] REPRESENTATIVE KOTT announced then that Amendment 1, as amended, was before the committee. REPRESENTATIVE ROKEBERG removed his objection. There being no further objection, Amendment 1, as amended, was adopted. REPRESENTATIVE LYNN moved to report CSHB 226, Version 24- LS0689\I, as amended, out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, CSHB 226(L&C) was reported from the House Labor and Commerce Standing Committee.