SENATE BILL NO. 34 "An Act relating to the implementation of the federal REAL ID Act of 2005; and relating to issuance of identification cards and driver's licenses; and providing for an effective date." 2:48:34 PM Co-Chair MacKinnon announced the history of the bill in the committee. Vice-Chair Bishop MOVED to ADOPT the committee substitute for SB 34, Work Draft 30-GS1781\T (Martin, 5/11/17). Co-Chair MacKinnon OBJECTED for discussion. 2:49:42 PM JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, remarked that the CS was drafted because of various discussions. Ms. Lucky addressed the Sectional/Explanation of Changes (copy on file): Section 1: NEW: Intent language added by the legislature should continue efforts to amend the REAL ID Act to protect the privacy of Alaskans. Section 2: AMENDED: Amends 18.65.310(a) to set the fee for REAL ID compliant identification cards at $20 - increased from $10 in the previous bill. Section 3: NEW: Amends 18.65.310(b) to require an application for an identification card to include a provision that the applicant understands the options between the identification card types and what type of card is being selected. 2:53:23 PM AT EASE 2:53:30 PM RECONVENED Ms. Lucky continued to discuss the changes: Section 4: AMENDED: Adds new sections to 18.65.310 as follows: (m) Requires the department to adopt regulations to issue federally compliant cards and requires an applicant to specifically choose one. New language in CS limits the documents that can be copied/scanned and retained to the minimum of what is required by REAL ID and codifies the retention period of 15 years, which matches what is currently in regulation. (n) Requires the state to continue to offer non- compliant cards. Requires an applicant to specifically choose a federally compliant identification card. The CS keeps the prohibition against the state or municipality requiring a person to get a federally compliant identification card, but allows an exception when the state or municipality is acting as an employer and the job duties require use of a compliant identification card. New language regarding non-compliant identification cards limits retention of facial images to 15 years, prohibits retention if a card is not issued, and limits retention of verification documents to a year after the expiration date of the license. (o) The previous bill allowed the department to issue a card with a validity of less than eight years if it matches the amount of time that a person is legally authorized to be in the country. The CS contains that language, but amends a provision regarding a card issued to a person that is legally allowed to stay in the country for an "indefinite period." The CS allows the department more discretion to renew for a period of "up to eight years" - the previous bill limited the card to one year. The CS also includes language regarding when an identification card can be renewed and guidelines for renewal by mail or via the department's website. The CS also allows the department more discretion with the expiration date for a card when the authorized stay of an individual is indeterminate - the previous bill required a one year expiration date; the CS allows a card to be valid "up to eight years." (p) Requires the department to provide the public with information about the differences between current cards (non-compliant) and federally compliant cards, including what a federally compliant identification card is required for and what alternatives are available. REMOVED: Requirement that a non-compliant card be created in-state. (q) Definition of "identification card that is federally compliant" - reworded. Section 5: AMENDED: Adds new sections to 28.05.068 as follows: (a) If data is being shared with other entities to comply with the REAL ID Act, limits that data to what is required. This is similar to the intent of the language in the previous bill, but has been reworded. (b) - (e) - Add new language relating to the sending of social security numbers to other entities for verification that a person who is applying for a driver's license is not already licensed in other states. The language requires the department to take "all steps necessary" to eliminate the use of social security numbers, otherwise to limit the number of digits of a social security number being used. Allows up to five digits, which is the current number required by the S2S verification system, to be used as long as efforts have been made to reduce the number. (f) Requires an annual report of the efforts made in (b) - (e); this section is repealed in 2021 by section 15 of this bill. Section 6: AMENDED: Adds new sections to 28.15.041, relating to driver's licenses, to mirror the provisions in section 4 of the bill for identification cards. Specifically: (d) Requires the department to adopt regulations to issue federally compliant driver's licenses. New language in CS limits the documents that can be copied/scanned and retained to the minimum of what is required by REAL ID and codifies the retention period of 15 years, which matches what is currently in regulation. (e) Requires the state to continue to offer non- compliant licenses. Requires an applicant to specifically choose a federally compliant license. The CS keeps the prohibition against the state or municipality requiring a person to get a federally compliant driver's license, but allows an exception when the state or municipality is acting as an employer and the job duties require use of a compliant license. New language regarding non-compliant driver's licenses limits retention of facial images to 15 years, prohibits retention if a license is not issued, and limits retention of verification documents to one year after the expiration date of the license. (f) Requires the department to provide the public with information about the differences between current driver's licenses (non-compliant) and federally compliant licenses, including what a federally compliant identification card is required for and what alternatives are available. Section 7: AMENDED: Adds a new subsection to 28.15.061(b) that mirrors the language for identification cards in section 3. Requires an application for a driver's license to include a provision that the applicant understands the options between the driver's license types and what type of license is being selected. Section 8: Amends 28.15.101 (a) to extend the validity of a driver's license to eight years (from five). Same as previous bill. Section 9: AMENDED: Amends 28.15.101 (d), similar to the provisions in section 4, subsection (o) of this bill, to allow the department to issue a driver's license with a validity of less than eight years if it matches the amount of time that a person is legally authorized to be in the country and also repeals language allowing a person to renew their license for free if the license was valid for less than the maximum. The CS contains that language, but amends a provision that limits the validity of a driver's license issued to a person that is legally allowed to stay in the country for an "indefinite period." The CS allows the department more discretion to renew for a period of "up to eight years" - the previous bill limited the card to one year. 3:01:23 PM Ms. Lucky continued to highlight the changes: Section 10: AMENDED: Amends 28.15.111(a) to update the security requirements of cards to the highest security standards available. Section 11: AMENDED: Adds new subsections to 28.15.111 that (d) prohibit bulk sharing of facial images captured during the application process for driver's licenses, other than commercial driver's licenses, with entities outside the state; and (e) require a commercial driver's license to be federally compliant. REMOVED: Limitations on copying and retention of application documents and facial images - see new language on same topic in section 6. Also removed was the requirement that a non-compliant driver's license be created in-state. Section 12: Amends 28.15.271(b) to charge a $20 fee for a driver's license that is federal compliant. Same as previous bill. Section 13: AMENDED: Adds a new subsection to 28.90.990(a) to define "driver's license that is federally compliant" - this was reworded in the CS. Section 14: NEW: Repeals AS 44.99.040(a)(2), the statute that prohibits use of assets to implement the REAL ID Act. The previous bill amended this section instead of repealing it. Section 15: NEW: Repeals 28.05.068(f) - the reporting requirement added by section 5 of this bill - on June 30, 2021. Section 16: Transitional Provisions: Allows the Department of Administration to adopt regulations to implement this Act. Section 17: Immediate effective dates for section 14 (repeal) and section 16 (authority for regulations). Section 18: Effective date of January 1, 2019 for the remainder of the bill. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO further OBJECTION, the proposed committee substitute was adopted. Senator von Imhof noted that the bill stated that non- compliant identification cards would limit retention of facial images to 15 years. She wondered what changed from the previous presentation about not retaining facial recognition. 3:05:55 PM MARLA THOMPSON, DIRECTOR, DIVISION OF MOTOR VEHICLES (DMV), DEPARTMENT OF ADMINISTRATION (via teleconference), understood the that Senator von Imhof was concerned about the retaining of an image for one year after expiration. Senator von Imhof noted that initially the bill did not allow any retention of documents or facial recognition. She noted that the new bill allowed for significant retention. She queried the circumstances that contributed to the change in the bill. Co-Chair MacKinnon queried the DMV's current practice. Ms. Thompson replied that the DMV currently retained documents for 15 years, which was the minimum. She stated that the change in the legislation was from a request from Department of Public Safety (DPS). Co-Chair MacKinnon noted that the initial bill presentation from the Senate State Affairs committee had document disposal. She stressed that it was never state law to destroy the documents. Ms. Thompson agreed. Senator von Imhof wondered whether the DMV retained copies of a person's passport and/or birth certificate. Ms. Thompson responded in the affirmative. Senator von Imhof understood that DMV did not take copies of those documents. She requested confirmation that the DMV retained copies of the documents. Ms. Thompson replied that the DMV retained copies of the documents. 3:10:24 PM Senator Hughes felt that the bill had stronger confidentiality provisions than the federal provisions. She wondered whether the photos were shared with any other state agencies. Ms. Thompson replied that the photos were only shared with DPS. Senator Hughes wondered whether personal information was shared with a national database. Ms. Thompson responded that the DMV shared information with other states to produce the most valid identification possible. She stressed that documents and photos were not shared, but only validation. Senator Hughes wondered whether personal information was downloaded into the database, or was there only a search of the database for a match. Ms. Thompson replied that the search was only conducted based on the provided information to determine matches. Senator Hughes surmised that the information would not be shared on federally noncompliant licenses. Ms. Thompson replied that the compliant licenses required a validation was secure. Senator Hughes wondered whether there was an issue with identity theft. Ms. Thompson replied in the negative. Senator Hughes wondered whether the five to eight years related to both the compliant and noncompliant licenses. Ms. Thompson replied in the affirmative. 3:17:07 PM DAN LOWDEN, CAPTAIN, ALASKA STATE TROOPERS (via teleconference), announced that he was available for questions. He remarked that he was slightly confused with the conversation related to the databases. 3:18:05 PM SHELDON FISHER, COMMISSIONER, DEPARTMENT OF ADMINISTRATION (via teleconference), remarked that the bill was designed to give a person a choice between a compliant and noncompliant license. He stated that the database shared minimal information to allow confirmation of license information across states to ensure that individuals had an appropriate record in another state. He stressed that the other information was kept in the state, and the Real ID database only confirmed the validity of the documents. Senator Hughes queried what was shared in the database. Commissioner Fisher replied that the five digits of social security information was in the database, but would work to reduce or eliminate that number. He stated that the number was shared to determine whether an individual had a license in another state. The primary documents, such as a passport or birth certificate, was not shared in the database. Senator Hughes wondered whether there was a concern about a breach in the database. Commissioner Fisher replied that we should be concerned about identity theft. He felt that the nature and amount of information was relatively modest. Senator Hughes asked whether the commander of the military bases in Alaska decided whether a federal compliant license was required, or could a noncompliant license be chosen. Commissioner Fisher understood that the commander had a certain amount of latitude in implementation. Vice-Chair Bishop remarked that the Department of Military and Veterans Affairs (DMVA) had announced that a compliant ID would be required for base access. 3:23:58 PM BRIAN DUFFY, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS (via teleconference), announced that that the commanders were currently complying with federal law, and did not have waiver authority. Senator Hughes felt that there was misinformation. She surmised that the commanders did not have leeway. Mr. Duffy replied in the affirmative. Co-Chair MacKinnon shared a document from a commander that stated that the bases must comply with the federal law. Senator Micciche wondered whether the noncompliant Alaska IDs would present additional risks. Commissioner Fisher replied in the negative. Senator Micciche surmised that the database was managed by a private company. Commissioner Fisher stated that the DMV would validate a passport through a database that was managed by Homeland Security. The DMV validated a birth certificate that was managed by a nonprofit managed database. 3:29:52 PM Senator Micciche wondered whether there were additional requirements for a compliant ID beyond what was required to receive a passport. Commissioner Fisher replied in the negative. Co-Chair MacKinnon wondered whether the data on the facial image would be shared with anyone. Commissioner Fisher replied that the facial image data would not be shared. Co-Chair MacKinnon asked whether law officers outside of the state could subpoena that information. Commissioner Fisher replied that the data would be shared with DPS, and the DMV would comply with a subpoena. Co-Chair MacKinnon wondered whether the facial image data was shared on an individual basis. Commissioner Fisher replied that the state would share the facial images with DPS, but there was no bulk sharing. Co-Chair MacKinnon queried a regulation that required the scanning and storage of the documents. Commissioner Fisher deferred to Ms. Thompson. Ms. Thompson replied in the affirmative, and deferred to Mr. Stanker. 3:34:52 PM MICHAEL STANKER, ATTORNEY, DEPARTMENT OF LAW (via teleconference), stated the statute did not explicitly mention the storage or retention of the source documents, but the source documents were considered as part of the application. Senator von Imhof wondered whether the noncompliant and compliant requirements would retain a social security document in storage. Mr. Stanker replied that the regulations under Real ID would take a copy of the social security card, but Alaska regulation did not allow for scanning of the card-only verification. Co-Chair MacKinnon asked for confirmation of those comments. Ms. Thompson stated that social security card would not be scanned, and only validated. Co-Chair MacKinnon wondered if there would be a change. Ms. Thompson replied in the negative. Co-Chair MacKinnon surmised that there would be no copy of the social security card. Ms. Thompson agreed. Vice-Chair Bishop wondered whether a hazardous endorsement on a commercial driver's license (CDL) require fingerprints. Ms. Thompson agreed to provide that information. Co-Chair MacKinnon announced that the bill was controversial, and Alaskans expected their privacy to be honored. Co-Chair MacKinnon announced that amendments were due following day at 8am. SB 34 was HEARD and HELD in committee for further consideration.