SB 121-SECURITY FREEZE ON MINOR'S CREDIT REPORT                                                                     
                                                                                                                                
1:34:21 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of SB 121. [This is                                                                  
the second hearing and public testimony is closed.]                                                                             
                                                                                                                                
1:34:45 PM                                                                                                                    
EDRA MORLEDGE, staff  to Senator Kevin Meyer, sponsor  of SB 121,                                                               
stated  that she  provided  a supplemental  packet  based on  the                                                               
questions  that  were  asked during  the  previous  meeting.  She                                                               
recapped the following questions and answers:                                                                                   
                                                                                                                                
     Q. Senator Stevens  inquired as to the  meaning of "has                                                                    
     not  had the  disabilities of  a minor  removed...: and                                                                    
     asked if there might be a better way to state that.                                                                        
     A.  The specific  wording  on lines  9-10  of the  bill                                                                    
     directly  references  Alaska   Statute  09.55.590,  and                                                                    
     refers  to minors  that have  been emancipated.  As the                                                                    
     bill sponsor, I do  not object to different terminology                                                                    
     if it  allows for  a clearer reading  and understanding                                                                    
     of the legislation,  if the drafters are able  to do so                                                                    
     within their drafting guidelines.                                                                                          
                                                                                                                                
     Q. Senator Ellis inquired as  to where the idea for the                                                                    
     legislation came from.                                                                                                     
     A. A  constituent of Senate  District M,  Laura Hughes,                                                                    
     brought the idea for the  legislation to my office last                                                                    
     summer. Since  that time, we've discovered  a number of                                                                    
     states  with  similar  laws  on the  books  or  in  the                                                                    
     process  of  passing  similar legislation.  SB  121  is                                                                    
     modeled  after legislation  as  researched through  the                                                                    
     National Council of State Government.                                                                                      
                                                                                                                                
     Q. Senator  Ellis asked  if Alaska  would be  the fifth                                                                    
     state to adopt this legislation.                                                                                           
     A.  The  most  current  data available  from  the  NCSL                                                                    
     website lists:                                                                                                             
        · 27  states  allow  "any  consumer"  to  request  a                                                                    
          security freeze on their credit report,                                                                               
        · 4 states  use the  terminology "any  consumer that                                                                    
          is a resident,"                                                                                                       
        · 4 states  allow a  parent or  guardian of  a minor                                                                    
          under 18 to request a freeze,                                                                                         
        · 20 states specifically allow  a parent or guardian                                                                    
          of a minor under age 16 to request a freeze,                                                                          
        · 19 states specifically allow  a parent or guardian                                                                    
          of a "protected" or an "incapacitated" person to                                                                      
          request a freeze,                                                                                                     
        · 5  states  specify  the individual  for  whom  the                                                                    
          freeze is requested has been a victim of identity                                                                     
          theft, and                                                                                                            
        · 2 states  allow for  a credit  freeze only  in the                                                                  
          case of identity theft (Mississippi and South                                                                         
          Dakota).                                                                                                              
     Aside from  the states that only  specify "a consumer,"                                                                    
     or  "a  victim  of  identity theft,"  the  rest  are  a                                                                    
     mixture of the remaining criteria listed above.                                                                            
                                                                                                                                
     Q.  Senator  Stevens inquired  as  to  the process  for                                                                    
     lifting a credit freeze.                                                                                                   
     A.   The   specific   section  of   Alaska's   Personal                                                                    
     Information  Protection  Act  that governs  removal  of                                                                    
     security freeze  is AS  45.48.140. This  section states                                                                    
     that  the  consumer  can request  the  removal  of  the                                                                    
     freeze  by   contacting  the  agency  by   mail  or  in                                                                    
     accordance    with    other   established    procedures                                                                    
     (electronic  means), and  provide information  required                                                                    
     to  establish identity.  At  that  point, the  consumer                                                                    
     credit reporting  agency has 3 business  days to remove                                                                    
     the freeze.                                                                                                                
                                                                                                                                
     Q. Senator Costello asked what  the national average is                                                                    
     for child identity theft.                                                                                                  
     A. The national figure  for child identity theft varies                                                                    
     depending on  the source, but generally  it is reported                                                                    
     at between 10-11 %.                                                                                                        
                                                                                                                                
MS. MORLEDGE noted that the packets also contain communications                                                                 
from the Department of Law (DOL) indicating that they do not                                                                    
have an issue with the current wording of the bill.                                                                             
                                                                                                                                
CHAIR COSTELLO asked the sponsor if he had any comments.                                                                        
                                                                                                                                
1:37:52 PM                                                                                                                    
SENATOR MEYER  said he  is pleased  that the  constituent brought                                                               
the issue forward and his staff summarized the bill nicely.                                                                     
                                                                                                                                
1:38:09 PM                                                                                                                    
SENATOR GIESSEL  motioned to report SB  121, labeled 29-LS1129\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  SB  121  is                                                               
reported from the Senate Labor and Commerce Standing Committee.