SB 232 - ELECTRONIC RECORDS; RECORD REQUIREMENTS CHAIRMAN LEMAN announced SB 232 to be up for consideration. MR. RICH VITALE, Aide to Senator Sean Parnell, sponsor, said Senator Parnell introduced this legislation at the request of the Lieutenant Governor who is the Chairman of the Telecommunications Information Counsel, which Senator Parnell serves on. Currently, two states, Washington and Utah, have adopted statutes to standardize the practice of electronic signatures. The legislation is pending in most other states. SB 232 will help continue Alaska's intrastate, interstate, and global economic growth by providing a legal framework for use of electronic signature commerce. Specifically, SB 232 establishes electronic signatures as a legal practice with the same standing as a standard signature. This act allows the Lieutenant Governor's office or other state agencies to develop regulations for using electronic signatures by private or public entities and establishes criteria for electronic signature regulations. Lastly, this act repeals some state agencies' notarization requirements to better utilize the efficiencies of electronic signatures. SB 232 is an important component to keeping Alaska competitive and efficient in both public and private business practices. MR. VITALE said on page 1, line 8, there is reference to penalty of unsworn falsification and that is a reference to AS 11.56.210. CHAIRMAN LEMAN asked if there was a definition of electronic signature. MR. VITALE said he thought that would be part of the state regulation. There was an example in the back of their packet. MR. ANDY KLINE, Office of the Lieutenant Governor, added that there is a definition within the bill that, as specifically as they intend to, defines what an electronic signature means. In a statute that deals with technology, it's best to leave as much of the specific definitions out of the statute, leaving it to regulations which can change and try to keep pace with the speed with which technology changes. It's on page 4, line 3 of the bill. COMMISSIONER BOYER, Department of Administration, said he was available to answer questions. SENATOR KELLY asked Ms. Juanita Hensley, Chief, Drivers Services, Division of Motor Vehicles, how this would affect the Division of Motor Vehicles. MS. HENSLEY answered that they feel this bill has a great potential to follow up with all the efficiencies the Division of Motor Vehicles is trying to do to make DMV a more customer-friendly agency. Faxing is one method of electronic signature; issuing a PIN number is another. Having the capability of issuing a digital driver's license and a digital image driver's license will allow them to replace lost licenses, for instance, within minutes instead of days eliminating the need to send paperwork through the mail. SENATOR KELLY asked if lines at DMV were getting shorter. MS. HENSLEY replied that it's going to take time to make all the changes they want to make to shorten the lines. "We have an increased population and everything they do is basically keeping up with them moving in. There are lots of things we can do like opening up express offices." SENATOR KELLY said he heard recently that while Alaska is having a population growth, we are also experiencing an outmigration. More children are being born here. MS. HENSLEY added in 1996, there were 629,000 registered vehicles and in 1997 there were 658,000. Residents are buying more cars. Number 160 MR. CHARLES MCKEE commented on SB 232. SENATOR KELLY moved to pass SB 232 from Committee with individual recommendations. There were no objections and it was so ordered.