CS FOR HOUSE BILL NO. 65(FIN) "An Act relating to breaches of security involving personal information, credit report and credit score security freezes, protection of social security numbers, care of records, disposal of records, identity theft, credit cards, and debit cards, and to the jurisdiction of the office of administrative hearings; amending Rules 60 and 82, Alaska Rules of Civil Procedure; and providing for an effective date." Senator Olson MOVED to ADOPT SCS HB 65(FIN), labeled 25- LS0311\F, Bannister, 4/10/08, as the working document. There being NO OBJECTION, it was so ordered. 4:47:27 PM DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, reviewed the changes to the new SCS. On page 2, line 19, the word "and" was changed to "or". On page 3, line 25, the words "to state residents" were added for clarification. On page 5, line 31, language was deleted that was added as an amendment in the previous committee that referred to radio frequency devices. Page 8, line 28, through page 9, line 18, is the section of the bill that describes the exceptions for the fifteen minute time limit on removing a security freeze. Mr. Peterson continued to explain that on page 11, lines 21- 24, changes were made to the amount that a consumer credit reporting agency may charge a consumer for lifting a freeze. Previous language stated that if a consumer makes more than two requests, then the company may charge $2. That language was problematic. On page 13, lines 17-18, language was inserted to conform to the previous exceptions for the fifteen minute time limit. On page 16, line 8-9, the language was added referring to AS 21.36.460 and AS 21.39.035. Mr. Peterson turned to page 19, lines 1-4, a new subsection that refers to exceptions for accessing a person's social security number, and lines 8-12, which defines "insurer". On page 28, line 7, the words "or expiration date" were added after "credit card number". On page 29, lines 8-14, a new definition for credit report, cross referencing federal code, was inserted. On page 30, line 22, the effective date was changed from January 1, 2009, to July 1, 2009, to conform with the start of the next fiscal year. 4:51:41 PM Senator Elton referred to the change made on page 11, line 21, about the charge to consumers. He asked how many agencies a consumer would need to contact to establish a freeze. Darwin Peterson deferred to Karen Lister. KAREN LISTER, STAFF, REPRESENTATIVE JOHN COGHILL, reported that it would be three credit reporting agencies. Senator Elton assumed that the cost would be $15, not $5. Ms. Lister agreed. 4:53:08 PM Ms. Lister presented an overview of the bill and listed the 7 articles that deal with all areas of personal information and the rights and protections the consumer has and can expect from individuals that handle their personal information: Breach of Security Involving Personal Information Credit Report and Credit Score Security Freeze Protection of Social Security Number Disposal of Records Factual Declaration of Innocence after Identity Theft; Right to File Police Report Regarding Identity Theft Truncation of Card Information General Provisions 4:58:03 PM Senator Thomas inquired who currently has access to personal information. Ms. Lister replied that the Fair Credit Reporting Act provides guidelines that control access and disclosure of that information. Those guidelines are referenced many times in the bill. Credit reporting agencies are subject to those requirements. 5:00:02 PM Senator Olson asked, if the bill passes, if doctors will still be able to use Social Security numbers for reporting purposes. Ms. Lister said they would. She referenced that information in the bill. Senator Olson found that information on page 20, lines 29- 31. 5:00:42 PM Senator Huggins asked how long of a delay there would be before the person is informed if their security file is lost. Ms. Lister deferred to the Attorney General's Office to report on the "allowable delay" term. Co-Chair Stedman noted that an amendment was forthcoming. AT EASE: 5:02:07 PM RECONVENED: 5:03:52 PM Co-Chair Stedman MOVED to ADOPT Amendment #1: Page 1, line 3, following "debit cards,": Insert "disclosure of the names and addresses of  permanent fund dividend applicants," Page 2, following line 1: Insert a new bill section to read: "* Sec. 2. AS 43.23.017 is amended by adding a new subsection to read: (b) Notwithstanding (a) of this section, the department may release the names and addresses of permanent fund dividend applicants to a legislator of this state and to the legislator's office staff." Renumber the following bill sections accordingly. Page 30, line 6: Delete "sec. 3" Insert "sec. 4" Page 30, line 10: Delete "sec. 3" Insert "sec. 4" Page 30, line 19: Delete "sec. 3" Insert "sec. 4" Page 30, line 21: Delete "Section 6" Insert "Section 7" Page 30, line 22: Delete "secs. 7 and 8" Insert "secs. 8 and 9" Co-Chair Stedman OBJECTED. 5:04:13 PM MILES BAKER, STAFF, SENATOR BERT STEDMAN, presented an overview of the amendment. The amendment would insert an addition to AS 43.23.017, which is the section in statute regarding who has access to the names and addresses of Permanent Fund Dividend applicants. Prior to 2004, legislative offices had access to that data. In 2004 legislation was passed which had the unintended effect of eliminating legislative access. Currently, local, state, and federal government agencies can access the PFD list, but legislative offices cannot. The amendment would allow legislators and their staff would have access to the list. Co-Chair Stedman WITHDREW his OBJECTION. Senator Elton OBJECTED. He inquired if there were any restrictions on legislative use of that information. 5:07:17 PM Mr. Baker related that the department could not release confidential information and he assumed that legislative offices would do the same. The issue was not specifically addressed in the amendment. Senator Elton said he was comfortable with having access for official purposes. He thought it should be restricted to only official purposes. Mr. Baker reported that he had discussed this with Legal Services and the original suggestion included the wording "legislative offices for official business". That was the intent of the amendment, but in discussions with Legal Services it was decided that Amendment 1 contained the best description. He related the history of the discussion of the wording. 5:10:59 PM Senator Elton MOVED to ADOPT a conceptual amendment: on line 10, before the period, add the words "for official use." Co-Chair Stedman agreed with that friendly amendment. Senator Elton WITHDREW his OBJECTION. There being NO further OBJECTION, Amendment #1 was adopted, as amended. Co-Chair Stedman MOVED to ADOPT a conceptual amendment, on page 4, line 1, insert "credit" after "consumer". This was recommendation by Legal Services. There being NO OBJECTION, it was so ordered. 5:13:27 PM MARIE DARLIN, AARP, CAPITAL CITY TASK FORCE, testified in support of the bill. She related that the subject of this bill has been a concern of AARP's for a long time. It has been thoroughly reviewed and discussed since last year. AARP believes that HB 65 will be one of the most comprehensive identity theft bills in the U.S. She referred to a letter of support by AARP (copy on file.) She asked for the Committee's support of the bill. 5:16:26 PM Co-Chair Stedman referred to a letter from legal services dealing with interstate commence. He inquired if the bill creates a problem with interstate commerce. Ms. Lister replied that she does not see a problem, but would like to have a legal explanation. CLYDE (ED) SNIFFEN, JR., ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, reported that this kind of legislation has been passed in 42 states and is not a concern. 5:18:24 PM Co-Chair Hoffman MOVED to REPORT SCS CSHB 65(FIN) from Committee with individual recommendations and accompanying fiscal notes. Co-Chair Stedman OBJECTED. He reviewed the two fiscal notes. Co-Chair Stedman WITHDREW his OBJECTION. SCS CSHB 65(FIN) was REPORTED from Committee with "no recommendation" and with indeterminate fiscal note #3 by the Office of the Governor and fiscal note #5 by the Department of Administration. AT EASE: 5:19:32 PM RECONVENED: 5:27:44 PM