SB 194-ALLOW ELECTRONIC DRIVERS' LICENSES AND ID  3:36:34 PM VICE CHAIR REINBOLD announced the consideration of SENATE BILL NO. 194 "An Act relating to electronic identification cards; relating to electronic drivers' licenses and permits; relating to motor vehicle liability insurance; and providing for an effective date." 3:36:46 PM SENATOR KAWASAKI, speaking as sponsor of SB 194, explained that the legislation would allow Alaskans to carry a digital version of their driver's license, driver's permit, or state identification on their mobile device. He credited a constituent for bringing this idea forward. He pointed out that Alaskans have been able carry proof of auto insurance on their smart phones since 2013 and proof of their hunting license since 2018. He said it only makes sense to allow Alaskans to carry a digital copy of their driver's license, learner's permit or state identification on their smart phone. He deferred further introduction to Stuart Relay. 3:38:22 PM STUART RELAY, Staff, Senator Scott Kawasaki, Alaska State Legislature, Juneau, Alaska, presented the sponsor statement for SB 194 on behalf of the sponsor. It read as follows: [Original punctuation provided.] Smartphones and other smart mobile electronic devices have become an indispensable part of modern life. These devices provide convenient communication, information and entertainment such that there is almost no aspect of life that smartphones have not made easier. SB 194 seeks to leverage these modern communications technologies to enhance convenience for Alaskans and allow them to use electronic versions of their drivers licenses, drivers permits or state identification cards. Alaskans are currently required to carry physical drivers licenses and permits when driving or operating a vehicle. This bill will allow them to use applications like Apple Wallet for iPhones to show their credentials when requested by peace officers including local law enforcement or Department of Public Safety (DPS) personnel. On top of increasing convenience, this bill protects the licensee and user of the smart device as well as local law enforcement and DPS. It protects the privacy of the licensee and smart device user by prohibiting representatives of DPS or local law enforcement from searching, viewing or accessing other contents of the mobile electronic device. It protects DPS and local law enforcement from liability resulting from damage to the electronic device, except for intentional misconduct. Alaskans have been allowed to use their smartphones to display proof of insurance since 2013 and use their smartphones to display fishing and hunting licenses since 2018. Therefore, it is logical that Alaskans be allowed to use their smartphones to display electronic versions of their drivers licenses, drivers permits and state identification cards. I respectfully urge your support of SB 194. Please reach out to my office with any questions. 3:40:45 PM MR. RELAY presented the sectional analysis for SB 194. Section 1. AS 18.65.310(a)  Adds the word physical specifying that the department shall issue a physical identification card upon the payment of a $15 fee. Section 2. AS 18.65.310 Adds new subsections: (s) The department may issue an electronic identification card to those who possess a physical identification card, pay an additional $50 fee, and retain a physical identification card. (t) The department shall adopt regulations for issuing and use of electronic identification cards. (u) Department of Public Safety (DPS) representatives and peace officers may not search, view, or access other contents of the mobile electronic device without consent. (v) DPS representatives and peace officers are not liable for damages of the mobile electronic device unless for intentional misconduct. Section 3. AS 18.65.320(b)  Adds the word physical specifying that a person whose physical identification card has been cancelled must return that card within 10 days of receiving the cancellation notice or be subject to a $100 fine. Section 4. AS 18.65.330  Amends section by adding definition of electronic identification cards: (2) "electronic identification cards" a data file  specific to an individual that (a) displays the current identification card (b) is available on a mobile electronic device  through an app that allows the individuals data file to  be downloaded from the department. Section 5. AS 28.05.051  Adds the word physical specifying that revoked physical licenses shall be immediately returned to the department upon receiving notice and allows the DOA commissioner, officers, or employees, as well as Judges and court employees to take possession of physical licenses. Section 6. AS 28.15.011(b)  Adds the words physical or electronic specifying that drivers must possess a physical or electronic Alaskan drivers' license. 3:42:54 PM  Section 7. AS 28.15 Adds new section: Sec. 28.15.126 Electronic licenses and permits. (a) DOA may issue electronic drivers' licenses or permits to a person who possess a physical license or permit and drivers shall retain their physical license. (b) The commissioner shall adopt regulations to issue electronic licenses or permits and they may adopt regulations to require physical licenses in certain circumstances. (c) The department shall display a notice of seizure, revocation, cancellation or limitation across the front of the persons electronic drivers license. Section 8. AS 28.15.131(a)  Adds the words physical or electronic specifying that drivers must have a physical or electroniclicense in immediate possession when driving and drivers must surrender their license when required by DPS representatives or peace officers.   3:43:49 PM  MR. RELAY continued to paraphrase the sectional analysis for SB 194. Section 9. AS 28.15.131 Adds new subsections: (c) DPS representatives or peace officers cannot search, view or access other contents of the mobile electronic device without consent. (d) DPS representatives or peace officers are not liable for damages of the mobile electronic device unless for intentional misconduct. Section 10. AS 28.15.151(a)  (5) the department shall maintain files of every application for an electronic driver's license or permits and the permits and licenses issued by the department. 3:44:36 PM [MR. RELAY did not read the conforming sections 11-21, but they are included here.] Section 11. AS 28.15.165(b) Adds the word physical specifying the seizure of a person's physical drivers' license. Section 12. AS 28.15.166(a)  Adds the word physical specifying that a person my request administrative review for the seizure of their physical driver's license in AS 28.15.165 and if the license has not been surrendered to the department, it shall be at the time of the request. Section 13. AS 28.15.182(d)  Adds the word physical specifying that the court shall require the surrender of the physical driver's license when imposing limitations in (c) of this section. Section 14. AS 28.15.183(b)  Adds the word physical specifying that the peace office shall seize a person's physical driver's license after reading the notice in (a) of this section. Section 15. AS 28.15.184(a)  Adds the word physical specifying a person my request administrative review for the seizure of their physical driver's license in AS 28.15.183(a) and if the license has not been surrendered to the department, it shall be at the time of the request. Section 16. AS 28.15.187(b)  Adds the word physical specifying that a peace officer shall seize the persons physical driver's license after reading them the notice in (a) of this section. Section 17. AS 28.15.189(a)  Adds the word physical specifying a person requesting administrative review for notice received under AS 28.15.187 and if the license has not been surrendered to the department, it shall be at the time of the request Section 18. AS 28.15.191(c)  Adds the word physical specifying a physical license shall be surrendered if the court suspends, revokes, or limits a license. Section 19. AS 28.15.191(g)  Adds the words physical specifying that a physical license shall be surrendered as a condition of parole or probation. Section 20. AS 28.15.191(h)  Adds the word physical specifying that the board of parole shall require the surrender of the persons physical license. Section 21. AS 28.15.201(b)  Adds the word physical specifying that a physical driver's license shall be surrendered when a court imposes limitations under (a) of this section. 3:45:15 PM Section 22. AS 28.15.271(a)  Increases the licensing fees and adds fee for electronic drivers' licenses or permits (1) Noncommercial licenses from [$20] to $31 (2) Commercial licenses from [$100] to $155 (3) Instruction permits from [$15] to $23 (4) Duplicate drivers' license or permit from [$15] to $23 (5) Temporary license or renewal of permit from [$5] to $8 (6) School bus driver endorsement renewal from [$5] to $8 (7) Electronic drivers license or permit $50 Section 23. AS 28.20.560  Adds the word physical specifying that if a person whose license or registration is revoked under this chapter, they shall immediately return their physical license or registration to the department. 3:46:25 PM MR. RELAY continued to paraphrase the sectional analysis for SB 194. Section 24. AS 28.22.019(d)  Amends section by requiring DPS representative or peace officer who is presented with proof of motor vehicle liability insurance on a mobile electronic device to promptly return the device once they verify the person possesses liability insurance. Section 25. AS 28.22 019 Adds new subsection: (f) A DPS representative or peace officer is immune from liability if the mobile electronic device being used to determine the persons motor vehicle liability insurance status is damaged. Section 26. AS 28.22.041(d)  Adds the word physical specifying that when imposing limitations under this section the department shall require the surrender of the driver's physical license. Section 27. AS 28.33.100  Adds a new subsection (g) the department may issue electronic commercial drivers licenses. Section 28. AS 28.33.140(i)  Adds the words physical specifying that if the court disqualifies a person from driving a commercial motor vehicle the person shall surrender their physical license. Section 29. AS 28.35.034  Adds the word physical specifying that a person must surrender their physical license or permit if it has been revoked under AS 28.15.165 or AS 28.15.181. 3:47:58 PM MR. RELAY continued to paraphrase the sectional analysis for SB 194. Section 30. AS 28.90.990(a) Adds a new paragraph: (33) defines electronic driver's license or permit as a data file that is specific to an individual that (A) displays the current drivers license and (B) is available on a mobile electronic device thorough an app that allows the individuals data file to be downloaded from the department. Section 31. AS 33.16.150(i)  Adds the words physical specifying that in addition to other conditions of parole imposed under this section the board shall require the surrender of the physical driver's license or identification card and forward them to the department. Section 32. Provides the Department of Administration the ability to adopt regulations necessary to implement this Act. Section 33. Provides an immediate effective date for Section 32 of this Act. Section 34. Provides an effective date of January 1, 2023 for this Act except as provided for in Section 33. 3:49:10 PM VICE CHAIR REINBOLD asked the sponsor if he had anything to add. SENATOR KAWASAKI restated that the bill provides the option to carry a digital copy of a driver's license, driver's permit, or state identification card; it is not mandatory. He described this as an added benefit and freedom, and noted out that five or six other states have adopted a similar policy. SENATOR HOLLAND asked for an explanation of the fee increase [in Section 22] and the date these fees were last increased. MR. RELAY answered that the fee increases in Section 22 track inflation since the last increase in 2002. SENATOR HOLLAND asked if digital licenses would be associated with an app rather than a digital copy of the license. MR. RELAY said that was his understanding but he would defer to Mr. Schmitz. 3:51:42 PM JEFFREY SCHMITZ, Director, Division of Motor Vehicles (DMV), Department of Administration (DOA), Anchorage, Alaska, confirmed the digital license would be associated with an app. He also clarified that the specific process to implement the bill, should it pass, had not been identified. The division was learning along with the sponsor. He acknowledged that a number of other states were looking at this concept, but there was no universal solution. SENATOR HOLLAND said his assumption was that as part of the process, DMV would have the ability to deactivate a digital license that was suspended or revoked; it would not be up to the license holder. MR. SCHMITZ restated that DMV would need to establish the full process and likely find a vender to help. He said the contract with the current driver's license vender expires at the end of 2023, and it was DMV's intention that the request for proposal (RFP) and procurement process for the new vender include electronic proposals. SENATOR HOLLAND said he was aware that some states already offer this option and he looked forward to it being available in Alaska. However, setting the fee structure without knowing the process was a concern. 3:56:02 PM VICE CHAIR REINBOLD asked how the digital driver's license would affect or interact with Real ID. MR. SCHMITZ replied that the division would need to study that interaction. He was aware that multiple states were trying to develop standards that all states could adopt and Alaska could join that conversation. SENATOR REINBOLD commented that there were lots of unknowns as evidenced by Section 7 that talks about a number of things the division may or shall do. She also asked if the fee increases were reasonable and if the division had any deep concerns with the bill. 3:58:09 PM MR. SCHHMITZ said DMV couldn't comment on whether or not the fee structure was reasonable. They had not heard from the sponsor or drafter about the basis for selecting those fees. The division's fiscal note, which is in excess of $10 million, recognizes that developing an electronic solution would be an expensive endeavor if the state were to do it on its own. He said the division has a neutral position on the bill, but acknowledges that the industry is moving in this direction. Regardless, DMV would follow the legislature's direction. 4:01:04 PM SENATOR REINBOLD asked the sponsor if he had anything to add. SENATOR KAWASAKI answered not at this point. MR. RELAY stated that the $50 fee in Section 22 was selected somewhat arbitrarily with the expectation that it would be adjusted as the bill goes through the process. SENATOR HOLLAND said this is a great idea and he looks forward to seeing what other states charge. 4:02:25 PM VICE CHAIR REINBOLD held SB 194 in committee for future consideration.