SB 259-THEFT OF IDENTITY MR. JIM POUND, staff of Senator Taylor, stated the modification in SB 259 will add the words "commit a crime" rather than just using the word "defraud," allowing criminal intent for other uses of false identification (ID). The crime will be a misdemeanor. Criminal activity will include minors trying to buy alcohol and cigarettes with false ID cards and the use of false ID to obtain a checking account with the intent of fraud. SENATOR HALFORD asked if there is anything the legislature can do to help victims clear their record. CHAIRMAN TAYLOR commented the bill was drafted in a hurry and everything has not been included. The true victim in this type of crime is the person whose identity is stolen, and he would like this legislation to motivate credit card companies and credit reporting agencies to work with the victims in clearing their records. Number 370 MS. ANNE CARPENETI, Department of Law (DOL), stated DOL supports this legislation. With a stolen credit card number a person can obtain a social security number through a web site. With this information people can open checking accounts, buy cars, open accounts at department stores, etc. and do serious damage to a persons credit. It can take years to clear a credit report that has been damaged in this way. MS. CARPENETI said DOL has been looking at this issue in a bigger sense than just identity theft. The Governor has introduced a bill that makes criminal impersonation a class B felony if an identification item has been stolen and fraudulent acts are the result thereby harming the persons financial reputation making this person the victim of the crime. In the past the police have considered the credit card companies, banks, department stores, etc. the victims, rather than the individual with the problem. The Governor's bill makes it a class B felony to harm someone's reputation, bringing the current statute down to second degree criminal impersonation which is a class A misdemeanor. In addition, SB 259 fine tunes the theft and fraud statute by replacing the term "access device" for a credit card so if a person steals an access device, including a phone number, that person can be prosecuted for theft of a credit card or fraudulent use of a credit card. MS. CARPENETI noted the Governor's bill also clarifies the law in dealing with technology in regards to child pornography--creating child pornography includes making an electronic portrait of a child and putting it in a computer network. It also expands the criminal use of a computer, which is a class C felony, by providing that it is a violation of a statute to add misleading new information to a computer which a person may have access to but they are going beyond their authorization or they are accessing the system without authorization. It prohibits a person without authorization from getting proprietary financial information about other people and going in and changing information they have no right to change. It also prohibits encrypting (with no authorization to encrypt) and decrypting information. Number 662 CHAIRMAN TAYLOR thanked Ms. Carpeneti and asked her to work with staff to provide a committee substitute to incorporate some of the ideas she discussed. MS. CARPENETI responded she would be happy to help. CHAIRMAN TAYLOR introduced Lt. David Hudson, Alaska State Troopers, and asked him to work with Ms. Carpeneti and Mr. Pound in writing a committee substitute. MR. BLAIR MCCUNE, Deputy Director, the Alaska Public Defender Agency, stated this is a difficult area of the law and the bill will need some care in the drafting process. Banking and credit law practices have changed a lot in the last few years because of internet access and because of increases in credit card use. His main concern is that the law should be drafted narrowly so that minors purchasing alcohol and using false ID cards are not treated on the same level as someone who is using someone else's identity in a fraudulent way. CHAIRMAN TAYLOR asked Mr. McCune to assist in the drafting process to help develop a more comprehensive bill. MR. GLENN HACKNEY, AARP, stated that theft of identity is a real concern for the senior community of Alaska. Many members of the senior population have a long standing credit history and they are concerned that nothing happen to that history. There are seniors who will not use credit cards or the internet because of this concern. Mr. Hackney stated he supports SB 259. CHAIRMAN TAYLOR stated the bill will be held in committee until a committee substitute has been drafted.