Legislature(2021 - 2022)BARNES 124

05/05/2021 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:16:40 PM Start
03:17:35 PM SB21
03:21:45 PM HJR19
03:22:29 PM HB159
04:32:54 PM Presentation(s): Women in the Workforce & the Gender Pay Gap
05:29:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Testimony <Invitation Only> --
Moved HCS SB 21(L&C) Out of Committee
-- Public Testimony --
+ Presentation: Women in the Workforce & the TELECONFERENCED
Gender Pay Gap
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSHJR 19(L&C) Out of Committee
**Streamed live on AKL.tv**
                HB 159-CONSUMER DATA PRIVACY ACT                                                                            
3:22:29 PM                                                                                                                    
CO-CHAIR FIELDS announced  that the next order  of business would                                                               
be HOUSE  BILL NO.  159, "An Act  establishing the  Consumer Data                                                               
Privacy Act; establishing  data broker registration requirements;                                                               
making a violation of the Consumer  Data Privacy Act an unfair or                                                               
deceptive trade practice; and providing for an effective date."                                                                 
CO-CHAIR  FIELDS stated  that the  presentation of  the sectional                                                               
analysis had commenced during the  meeting of the House Labor and                                                               
Commerce Standing Committee on April 23,  2021.  He said that the                                                               
administration is  working with stakeholders on  what constitutes                                                               
a "rewrite" of  the bill and said that expert  testimony would be                                                               
heard during  today's hearing.  He  said that the purpose  of the                                                               
invited  testimony  was  to  learn  about  the  elements  of  the                                                               
proposed legislation and to ensure that  it would not be a burden                                                               
on Alaska's businesses.                                                                                                         
3:24:11 PM                                                                                                                    
JOSEPH  JEROME, Director  of  Platform  Accountability and  State                                                               
Advocacy,  Common  Sense  Media,  stated  that  he  is  a  lawyer                                                               
focusing on privacy issues, and  that Common Sense Media has been                                                               
involved  in several  privacy  efforts across  the  country.   He                                                               
shared  that there  is a  "general  unease" about  the volume  of                                                               
information  collected from  consumers  and  about it's  possible                                                               
uses.   He  said companies  are now  facing global  privacy rules                                                               
including the  European Union General Data  Protection Regulation                                                               
(EU GDPR), as well as privacy  rules in India, Brazil, and Japan;                                                               
the  United States,  he  said,  has "fallen  behind."   He  said,                                                               
"Animating this  conversation is  an endless stream  of headlines                                                               
documenting  irresponsible  data  collection   and  use  by  tech                                                               
companies."  He  said some of the biggest companies  in the world                                                               
testify about how burdensome a  "patchwork of U.S. laws will be,"                                                               
and he opined that the  "patchwork" already exists.  He discussed                                                               
the Health  Insurance Portability and Accountability  Act (HIPAA)                                                               
and  the Graham-Leach-Bliley  Act (GLBA),  both of  which include                                                               
privacy  protection  as  an  afterthought  to  larger  regulatory                                                               
efforts.  Because  of this sectoral approach, he  said, there are                                                               
gaps  in  privacy regulations.    As  an  example, he  asked  the                                                               
committee to  consider the matter  of student  health; regulators                                                               
don't fully  appreciate that most  Americans have  "absolutely no                                                               
grasp"  of when  their health  information is  protected by  law.                                                               
"For all the  talk about HIPAA," he  said, "student immunizations                                                               
and  other  school health  records  are  covered by  our  federal                                                               
[Family]  Educational Rights  and  Privacy Act  (FERPA) -  that's                                                               
from 1974.  FERPA, in  turn, intersects with, and conflicts with,                                                               
our  Children's  Online Privacy  Protection  Act,  and that  only                                                               
covers the information of children  under 13."  He commented that                                                               
such  gaps in  protection leave  the  general public  to rely  on                                                               
state  attorneys  general,  which  often  do  not  have  adequate                                                               
resources to police commonly-used technology.                                                                                   
MR. JEROME said  that dozens of states have  introduced dozens of                                                               
privacy laws, but only California  and Virginia have enacted such                                                               
laws.   There are several  different privacy models  to consider,                                                               
he  said, and  states  across the  political  spectrum have  made                                                               
progress.   He pointed out  that North Dakota introduced  what he                                                               
characterized  as "probably  the strongest  single privacy  law,"                                                               
and Oklahoma and  Florida have debated similar laws  up until the                                                               
last day of their respective  legislative sessions.  He said that                                                               
what   Common  Sense   Media  looks   for  in   feasible  privacy                                                               
legislation is  extra protections for  kids and teens;  limits on                                                               
the abilities of  advertisers and data brokers  to circumvent the                                                               
law; and real enforcement "teeth."                                                                                              
3:29:53 PM                                                                                                                    
CAITRIONA   FITZGERALD,  Deputy   Director,  Electronic   Privacy                                                               
Information Center (EPIC),  shared that current laws  in the U.S.                                                               
state that  companies may collect  any consumer data, as  long as                                                               
the data's use(s) isn't misrepresented  in the companies' privacy                                                               
policies.  She said that allowing  an individual to know the data                                                               
a company  collects, and demand  deletion of such data,  puts the                                                               
entire burden  of data protection  on the individual  consumer; a                                                               
good  privacy   bill  would  include  strong   data  minimization                                                               
provisions  such   as  limiting   data  collection  to   what  is                                                               
reasonably  necessary   to  provide  a  better   service  to  the                                                               
consumer.   Another  component of  data minimization  provisions,                                                               
she  said, would  be the  requirement that  companies delete  the                                                               
personal  data  when  it's  no longer  needed  for  the  original                                                               
purchase, which would  blunt the impact of  data breaches because                                                               
there would be  less data at risk.  She  said that secondary uses                                                               
of data  should be  limited; downstream  parties such  as service                                                               
providers  that  collect  data  should be  subject  to  the  same                                                               
obligations as the original data collector.                                                                                     
MS.   FITZGERALD  then   discussed  promoting   privacy-enhancing                                                               
technologies,  which  would  make  it  easier  for  consumers  to                                                               
enforce  their  right  to  privacy.    She  said  that  it's  not                                                               
realistic to expect Internet users  to take multiple steps to opt                                                               
out of data disclosure; every  website uses banners to inform the                                                               
user that  it's collecting  "cookies," and  the website  makes it                                                               
difficult to  allow users to opt  out of data collection.   There                                                               
are global  mechanisms that  allow settings  to be  configured in                                                               
Internet browsers that sent a  signal to all websites saying that                                                               
a user wants to disallow the sale  of data.  This mechanism is in                                                               
the California Consumer Protection  Act, she said, and technology                                                               
companies  now  comply  with  global  privacy  controls  allowing                                                               
consumers to opt out of having their data sold.                                                                                 
3:35:15 PM                                                                                                                    
HAYLEY  TSUKAYAMA,  Legislative   Activist,  Electronic  Frontier                                                               
Foundation  (EFF),   stated  that  strong  laws   require  strong                                                               
enforcement, and  EFF often studies  the enforcement  sections of                                                               
proposed  legislation   to  determine  not  only   how  seriously                                                               
consumers   would  be   protected,  but   whether  the   proposed                                                               
legislation  addresses the  widespread  concern  that drives  the                                                               
call  for such  legislation.   She  encouraged  the committee  to                                                               
ensure  adequate funding  for enforcement  mechanisms.   She said                                                               
the  "right to  cure,"  usually existing  within the  enforcement                                                               
section of a  bill, would give companies in violation  of the law                                                               
a period of time to  correct the violation and avoid disciplinary                                                               
action.  She  expressed that the right  to cure is a  "get out of                                                               
jail free"  card that  would mean  no consequences  for companies                                                               
that break the law, thus allowing  consumers to be harmed with no                                                               
remedy  to  address  the  harm.   She  said  that  the  strongest                                                               
enforcement mechanism EFF has seen  is "private rights of action"                                                               
(PRAs),  which  play out  in  privacy  laws across  the  country.                                                               
Illinois's Biometric Information Privacy  Act contains a PRA, she                                                               
said, and  was used to bring  suit against Facebook over  its use                                                               
of face recognition.                                                                                                            
3:39:55 PM                                                                                                                    
MS.  TSUKAYAMA   discussed  the   importance  of   ensuring  that                                                               
consumers who  exercise their right  to privacy  aren't penalized                                                               
through mechanisms  such as  paying more for  a service  or being                                                               
ineligible  for discounts  offered to  the general  public.   She                                                               
expressed  approval  for  the   prohibition  on  retaliation  for                                                               
exercising privacy  rights under HB  159, but she noted  that the                                                               
proposed  legislation still  includes language  regarding charges                                                               
that  vary according  to  the value  provided  by the  consumer's                                                               
data,  which could  open the  door  to privacy  violations.   She                                                               
discussed "dark patterns," otherwise  known as "coercive design,"                                                               
which she  described as mechanisms to  undermine consumer consent                                                               
by presenting  information in a certain  way.  A good  example of                                                               
coercive design, she said, is a  request to collect data with the                                                               
option  to  accept  the request  displayed  in  bright,  colorful                                                               
graphics, while  the option  to opt  out is in  small text.   She                                                               
discussed the  possible harms  of data  abuse, pointing  out that                                                               
data use  often exacerbates existing  discrimination; information                                                               
such as  the high  school a  person went  to can  influence their                                                               
mortgage  worthiness.   She said  that using  data algorithms  to                                                               
make  decisions  should  require  a  mechanism  for  transparency                                                               
regarding the information  that goes into the  algorithm, and the                                                               
algorithms themselves should be audited.                                                                                        
3:44:09 PM                                                                                                                    
MAUREEN MAHONEY, Senior Policy  Analyst, Consumer Reports, shared                                                               
that  her comments  would  focus on  the  importance of  covering                                                               
targeted   advertising  in   proposed   legislation,  which   she                                                               
characterized   as   an   "under-discussed  issue"   in   privacy                                                               
legislation.   She  said that  "targeted  advertising" refers  to                                                               
data about consumer behavior that  is shared with other companies                                                               
for  the use  of directing  ads  to the  consumer; consumers  are                                                               
constantly tracked, and said, and  information about their online                                                               
and offline  activities is used  to glean detailed  insights into                                                               
consumers'  most  personal   characteristics.    Everything  from                                                               
health conditions  to political  affiliations is used  to deliver                                                               
targeted  advertising,   she  explained,  which  could   lead  to                                                               
disparate outcomes  along racial  or ethnic  lines.   She pointed                                                               
out that  job or housing  advertisements can target  only certain                                                               
consumer demographics.   Covering  such data transactions  is one                                                               
of  the  key motivators  for  consumer  privacy legislation,  she                                                               
said, and she noted that  many companies are working to undermine                                                               
such legislation  by adopting bad  faith interpretations  of such                                                               
legislation,  such as  claiming that  targeted advertising  isn't                                                               
covered by the law.                                                                                                             
MS. MAHONEY  urged the committee to  keep the language in  HB 159                                                               
regarding   targeted  advertising,   and  she   noted  that   the                                                               
definition of "personal information"  in the proposed legislation                                                               
covers  information associated  both with  the consumer  and with                                                               
the household.  She proposed adjusting  the text of HB 159 to not                                                               
require consumers to verify their  identities in order to opt out                                                               
of the  sale of their information;  since a lot of  data used for                                                               
tracking  isn't  associated specifically  with  a  name or  email                                                               
address, she  said, requiring identity verification  would open a                                                               
loophole  for targeted  advertising.   Research done  by Consumer                                                               
Reports  has shown  that  consumers have  been  asked to  provide                                                               
their social security or driver's  license number in order to opt                                                               
out   of  data   distribution,  she   said,  and   consumers  are                                                               
uncomfortable  sharing  such  information with  an  unknown  data                                                               
broker.    She recommended  adjusting  the  definition of  "sale"                                                               
within  the text  of  HB  159 to  include  coverage  of all  data                                                               
disclosures  to  a third  party  for  a commercial  purpose;  the                                                               
importance  of  such  coverage,  she  said,  is  to  ensure  that                                                               
companies  aren't  able  to  circumvent  the  regulation  by  not                                                               
technically receiving money in the transaction.                                                                                 
3:48:42 PM                                                                                                                    
CO-CHAIR FIELDS  noted the importance  of hearing  testimony from                                                               
unbiased sources.   He pointed  out that there will  be testimony                                                               
from  organizations  that  are   funded  by  the  businesses  who                                                               
practice stealing, reselling, or aggregating data.                                                                              
3:49:16 PM                                                                                                                    
REPRESENTATIVE KAUFMAN  mentioned Ms. Fitzgerald's  discussion of                                                               
essential  elements to  include in  data privacy  legislation and                                                               
expressed interest  in receiving  a copy  of the  list.   He then                                                               
asked  Ms. Mahoney  to  talk about  the  "Internet ecosystem"  in                                                               
which  many  services are  "free"  but  use  data  as part  of  a                                                               
company's business model.                                                                                                       
MS. MAHONEY  said that consumer  privacy is a right  which should                                                               
be afforded to everyone regardless  of their income or ability to                                                               
pay;  the baseline,  she said,  should be  consumers' ability  to                                                               
safely use online  services or apps without  having their privacy                                                               
compromised.   If  prices need  to be  adjusted to  ensure online                                                               
safety, she said, such an action could be appropriate.                                                                          
REPRESENTATIVE KAUFMAN  hypothesized about  a company  offering a                                                               
mapping app with  a "free" version that  monetizes consumer data,                                                               
or a  "paid" version that  does not  monetize consumer data.   He                                                               
asked  whether offering  the  two  versions would  be  a form  of                                                               
MS. MAHONEY responded that consumers  should have the basic right                                                               
to  use apps  and  services without  having  to compromise  their                                                               
privacy, and  that consumers shouldn't  have to pay more  or less                                                               
depending  on their  level of  acceptance of  privacy violations.                                                               
She  said that  consumers should,  at  the very  least, have  the                                                               
option of  opting out of  the targeted advertising  ecosystem due                                                               
to the lack of transparency in how data is used and monetized.                                                                  
REPRESENTATIVE KAUFMAN expressed  concern for protecting consumer                                                               
privacy  in  an "effective  and  efficient"  manner that  doesn't                                                               
jeopardize  the benefits  of data  collection.   He said  that if                                                               
data is a commodity, consumers should  be able to give it away or                                                               
profit from  it.   He expressed the  perspective that,  under Ms.                                                               
Mahoney's model,  consumers wouldn't have the  option of allowing                                                               
unfettered data  collection.   He asked  Ms. Mahoney  whether her                                                               
vision   of  data   privacy  would   prevent   a  consumer   from                                                               
commoditizing their own data.                                                                                                   
MS. MAHONEY deferred to Mr. Jerome from Common Sense Media.                                                                     
3:55:02 PM                                                                                                                    
MR.  JEROME  surmised   that  Representative  Kaufman's  question                                                               
pertained  to   the  relationship   between  secondary   uses  of                                                               
information and  general online advertising.   He said  that none                                                               
of the  consumer privacy proposals would  end online advertising,                                                               
and  that it's  important to  acknowledge that  some of  the data                                                               
collection business models  aren't effective.  He  said that one-                                                               
third of the  money spent on online advertising ends  up going to                                                               
fake traffic  and automated  bots.  Due  to market  dominance, he                                                               
said,  Google and  Facebook  comprise  up to  60  percent of  all                                                               
online ad  revenue; contextual advertising  that does  not invade                                                               
consumer  privacy is  as effective  as targeted  advertising.   A                                                               
2019 study  found a revenue  discrepancy of only 4  percent based                                                               
on whether  or not  cookies were disabled,  he said,  which means                                                               
that using personal  data increases revenue by  only .00008 cents                                                               
per ad.  He said that  former digital advertisers at The New York                                                             
Times and  Washington Post have  argued that the entire  model is                                                           
overhyped in  its value to data  publishers.  He stated  that the                                                               
imposition  of strong  privacy rules  would likely  not have  the                                                               
negative impact many assume it would.                                                                                           
3:57:23 PM                                                                                                                    
REPRESENTATIVE SCHRAGE  stated that  he understands  the concerns                                                               
around racial targeting  and the targeting of children.   He then                                                               
said that he doesn't understand  how his privacy is being invaded                                                               
by a company simply knowing  what he views online, asserting that                                                               
such targeted  advertising could actually  be of benefit  in that                                                               
it reduces his search time.                                                                                                     
3:58:17 PM                                                                                                                    
MR. JEROME stated  that the reality is that kids  and teens could                                                               
be "outed" if ads for issues  around sexual orientation pop up on                                                               
shared devices.   He  shared the example  of a  pregnant teenager                                                               
whose  family   was  informed  of   her  pregnancy   by  targeted                                                               
advertising.  YouTube and Facebook  are constantly in trouble for                                                               
how they  profile, he said.   Kids  can be profiled  as "gamers,"                                                               
"impulsive purchasers,"  or "anxious  oversharers," and  are then                                                               
targeted by  ads encouraging more  of those behaviors.   Facebook                                                               
has categorized hundreds  of thousands of kids  as "interested in                                                               
gambling" or  "interested in alcohol,"  and has  told advertisers                                                               
that  they  could identify  teens  who  feel stressed,  defeated,                                                               
anxious, or nervous,  and could target such  children with online                                                               
advertising for  coffee or makeup  tutorials.  He said  that such                                                               
commercial   manipulation   is   endemic  across   the   targeted                                                               
advertising ecosystem.                                                                                                          
REPRESENTATIVE  SCHRAGE said  that  he  understands the  concerns                                                               
about  children but  that he  is still  confused about  the issue                                                               
with cookies.   He opined that targeted  advertising has benefits                                                               
in  that companies  may better  tailor  offerings to  individuals                                                               
based on their shopping habits.                                                                                                 
4:01:12 PM                                                                                                                    
CO-CHAIR SPOHNHOLZ expressed the  perspective that there are many                                                               
ways in  which data  tracking is useful,  sharing that  she likes                                                               
getting  targeted ads  for products  in  which she's  interested.                                                               
She then  shared a personal  experience in which a  text exchange                                                               
with  her husband  resulted in  a  Facebook advertisement  within                                                               
moments of the  exchange.  She said that Facebook  is mining data                                                               
in ways  not anticipated  by the average  consumer, and  parts of                                                               
consumers' lives are now digitized  in ways that had never before                                                               
been  imagined.   She  characterized data  privacy  as the  "Wild                                                               
West" and  shared her concerns about  the fact that a  company in                                                               
another  state could  be  mining texts  between  herself and  her                                                               
husband for marketing  purposes.  She stated that  there seems to                                                               
be no  expectation of privacy,  reminding committee  members that                                                               
privacy  issues  were  revealed by  companies  suing  each  other                                                               
rather than by  governmental regulation.  She  expressed that the                                                               
government awareness  and regulation  of such issues  lags behind                                                               
actual  business  practices,  and  parents often  don't  know  or                                                               
understand  the online  environment in  which their  children are                                                               
operating.   She said that the  right to privacy has  been upheld                                                               
many times  in the  last century  by the  U.S. Supreme  Court and                                                               
that  there is  a strong  right to  privacy in  Alaska, and  that                                                               
ensuring a  continued right to  privacy is the  responsibility of                                                               
4:05:18 PM                                                                                                                    
REPRESENTATIVE  SNYDER shared  that she  does not  find value  in                                                               
being the  target of advertisements, expressing  that she doesn't                                                               
want to  be tempted by the  next piece of consumerism  or for her                                                               
online experience to  be interrupted.  She  said that, regardless                                                               
of  the rationale,  consumers should  be able  to say  they don't                                                               
want their data used in such ways.                                                                                              
4:06:46 PM                                                                                                                    
CO-CHAIR FIELDS  stated his  belief that Alaska  has some  of the                                                               
strongest constitutional privacy protections  in the country, and                                                               
he characterized  HB 159 as  a discussion on  how best to  meet a                                                               
constitutional  privacy  mandate.   He  shared  his concern  that                                                               
biometric   information   and    artificial   intelligence   (AI)                                                               
replicates  and perpetuates  racist  power structures.   He  said                                                               
that  the U.S.  has less  socioeconomic mobility  than any  other                                                               
developed country  and noted  the recent  case of  Google's photo                                                               
app  placing photos  of black  people in  albums called  "gorilla                                                               
albums."  He  wondered what should be considered  in questions of                                                               
biometric  information,  and  he  asked whether  there  exists  a                                                               
consensus that  the model for such  data in Illinois is  the best                                                               
4:08:27 PM                                                                                                                    
MS. TSUKAYAMA  responded that the Electronic  Frontier Foundation                                                               
(EFF) considers  Illinois's model  to be  the "gold  standard" of                                                               
biometric privacy,  pointing out that Co-Chair  Fields' statement                                                               
highlighted  many   of  the  concerns  surrounding   the  use  of                                                               
biometric information.   She stated that EFF advocates  for a ban                                                               
on government use of face recognition.                                                                                          
4:09:21 PM                                                                                                                    
MS.  FITZGERALD   stated  her  agreement  with   Ms.  Tsukayama's                                                               
statement  and  shared  her  understanding  of  Co-Chair  Fields'                                                               
concern that AI can be  used to perpetuate systemic inequalities.                                                               
She said society is now  living with the consequences of allowing                                                               
social media  to self-regulate, and  she expressed the  hope that                                                               
AI doesn't follow the same path.   She said there exists language                                                               
in various  proposed legislations  requiring companies  to engage                                                               
in  activities  such  as impacts  assessments  before  using  new                                                               
algorithms,  and  performing  audits   during  the  life  of  the                                                               
activity to ensure that it's fair and nondiscriminatory.                                                                        
4:10:44 PM                                                                                                                    
MR. JEROME  expressed agreement with the  previous statements and                                                               
added   that  using   biometric  products   to  authenticate   an                                                               
individual can  easily lead  to profiling.   He pointed  out that                                                               
Black  people tend  to represent  as being  "angrier" in  many AI                                                               
systems;  in  this context,  he  said,  technology that  analyzes                                                               
whether  students  or  employees  are  paying  attention  can  be                                                               
4:12:06 PM                                                                                                                    
CO-CHAIR FIELDS  expressed the desire  to see  an industry-funded                                                               
mechanism  to establish  a strong  state enforcement  unit within                                                               
the Department of Law, as well as  a private right of action.  He                                                               
pointed out that  Alaska doesn't have a large  tech industry, and                                                               
is  not  naturally  going  to have  lawyers  with  tech  industry                                                               
experience working  in the  Office of the  Attorney General.   He                                                               
expressed wanting a model for  a robustly-funded enforcement wing                                                               
of the  Department of  Law, and he  asked whether  the panelists'                                                               
organizations would  be interested in working  with the committee                                                               
to draft a  model for enforcement to ensure  adequate capacity in                                                               
Alaska to  police the  companies with  a record  of inappropriate                                                               
data use.                                                                                                                       
4:13:08 PM                                                                                                                    
MS. TSUKAYAMA responded  that EFF has not yet seen  what it would                                                               
consider  an  adequately-funded  department  to  address  digital                                                               
privacy  laws.   She said  EFF would  be happy  to work  with the                                                               
committee on a  private right of action and an  agency to oversee                                                               
the issues.                                                                                                                     
4:14:00 PM                                                                                                                    
CO-CHAIR FIELDS  stated his desire to  establish strong standards                                                               
of enforcement for multinational companies  that have a record of                                                               
exploiting data information, as well  as to ensure that the law's                                                               
structure   doesn't  burden   Alaska's  small   and  medium-sized                                                               
businesses  that are  using data  to serve  their customers.   He                                                               
asked  whether  there  is  a threshold  for  striking  the  right                                                               
balance  between  capturing  the  multinational  companies  while                                                               
protecting  smaller   businesses  that  collect   information  to                                                               
conduct legitimate business.                                                                                                    
MS. MAHONEY, on behalf of  Consumer Reports, responded that there                                                               
is no  specific threshold  to hit but  that California,  with its                                                               
threshold of  50,000 users per  year, or Virginia's  threshold of                                                               
100,000 users per  year, both ensure that  small and medium-sized                                                               
businesses  aren't unduly  affected by  the law.   She  expressed                                                               
that many  privacy laws under  discussion at the state  level put                                                               
few limits on  a company's ability to collect  data and advertise                                                               
to their customers;  the main concern is putting  controls on the                                                               
disclosure of data to third  parties, and the associated sale and                                                               
resale by data brokers.                                                                                                         
4:16:30 PM                                                                                                                    
CHRIS KOA, Attorney, DataEsque Law  Group PLLC, stated that he is                                                               
a   privacy,  security,   technology,   and  corporate   attorney                                                               
representing Lynden, Incorporated ("Lynden").   He explained that                                                               
he is collaborating,  in good faith and at the  invitation of the                                                               
governor,  with  several other  Alaska  companies  that would  be                                                               
similarly  impacted  by the  original  version  of  HB 159.    As                                                               
initially  drafted,   he  said,   Lynden  opposes   the  proposed                                                               
legislation and would  characterize it as among  the most onerous                                                               
state privacy  laws in the  country and that  it would not  be in                                                               
the best interest of Alaska.   He said that Lynden "conceptually"                                                               
supports the goal of increasing  privacy protections and wants to                                                               
find  ways to  support that  goal while  ensuring that  companies                                                               
with  primarily business-to-business  ("B2B")  models that  don't                                                               
engage in  the sale of  consumer data aren't  adversely impacted,                                                               
especially in  the absence  of corresponding  consumer protection                                                               
benefits  that  outweigh the  anticipated  burdens  and costs  to                                                               
businesses.  The  goal, he said, is to find  a middle ground that                                                               
balances the interests  of the administration, the  Office of the                                                               
Attorney General, the legislature, businesses, and consumers.                                                                   
MR. KOA said that as a  B2B company, Lynden focuses on using data                                                               
solely  to provide  services requested  by the  customers, unlike                                                               
business-to-consumer  ("B2C")  organizations   that  heavily  use                                                               
personal data.   The initial  draft of the  proposed legislation,                                                               
he  said,  would hurt  B2B  companies  that don't  sell  personal                                                               
information;  that  don't  have high-risk  business  models  that                                                               
depend  on  heavy  use  of personal  information;  and  have  not                                                               
engaged in systematic  patterns of abuse.  To  ensure the ability                                                               
of  B2B companies  like Lynden  to continue  to serve  Alaska, he                                                               
said,  he  recommends  consideration and  implementation  of  the                                                               
critical  amendments  he  submitted [included  in  the  committee                                                               
4:21:11 PM                                                                                                                    
MR.  KOA expressed  that  the  amended version  of  HB 159  would                                                               
provide a more focused approach,  intended to avoid burdening B2B                                                               
companies   such   as   Lynden,  oil   companies,   mining,   and                                                               
telecommunications,  which  don't  sell data,  and  which  employ                                                               
thousands  of Alaskans  while providing  valuable services.   Key                                                               
suggestions for HB  159, he said, include the  following:  delete                                                               
the  standalone revenue  threshold as  a trigger  for determining                                                               
companies  for regulation;  exclude  B2B  contacts and  employees                                                               
from  the scope  of  the proposed  legislation; exclude  personal                                                               
data  provided by  a  consumer  for the  purpose  of providing  a                                                               
product  or  service  requested  by  that  consumer;  delete  the                                                               
private right  of action and  allow enforcement by the  Office of                                                               
the  Attorney  General; provide  a  cure  period, especially  for                                                               
companies  that are  not repeat  offenders; shorten  the lookback                                                               
period  to one  year; and  clarify ways  for companies  to comply                                                               
with reasonable security obligations.                                                                                           
MR.  KOA  stated Lynden's  support  for  the goal  of  protecting                                                               
consumer  privacy  in a  manner  consistent  with how  businesses                                                               
operate and can respond, without  disrupting a business's ability                                                               
to serve Alaska, and without  incurring costs and burdens without                                                               
a corresponding consumer benefit.   He said the intention for the                                                               
suggestions reflected  in the suggested amendments  is to balance                                                               
valid  public  policy interests  and  consumer  privacy with  the                                                               
realities of business operations.                                                                                               
4:25:56 PM                                                                                                                    
REPRESENTATIVE KAUFMAN  asked how  much content  is in  a typical                                                               
profile for an individual consumer.                                                                                             
MR. JEROME, on  behalf of Common Sense Media,  responded that the                                                               
amount  of  content   varies,  and  that  data   brokerage  is  a                                                               
complicated ecosystem.  The Federal  Trade Commission, as well as                                                               
a  report from  the World  Privacy  Forum called  The Scoring  of                                                               
America,  have made  such information  available.   The challenge                                                               
with  companies such  as Google  and Facebook,  he said,  is that                                                               
their information is not made available to consumers.                                                                           
4:27:53 PM                                                                                                                    
REPRESENTATIVE SCHRAGE  asked how multinational  online companies                                                               
determine which state privacy laws  to follow.  He expressed that                                                               
he sees  the merits  of protecting  privacy and  wondered whether                                                               
the issue would be better addressed at the federal level.                                                                       
MS. FITZGERALD,  on behalf of the  Electronic Privacy Information                                                               
Center, stated that  the federal government has not  moved to act                                                               
on  this issue,  which  is why  states are  beginning  to act  to                                                               
protect  citizens.   Because it's  difficult for  large companies                                                               
such as  Google or Facebook  to comply with many  different state                                                               
laws, she said, "The state with  the strongest law sets the bar."                                                               
She pointed  out that  companies are  already complying  with the                                                               
European Union's General Data Protection Regulation.                                                                            
4:30:12 PM                                                                                                                    
MS. MAHONEY, on behalf of  Consumer Reports, noted that companies                                                               
can  identify  a  consumer's  location   based  on  a  consumer's                                                               
internet protocol (IP)  address.  She agreed  that strong federal                                                               
privacy  legislation would  be the  goal, but  in the  absence of                                                               
such  legislation,  states need  to  ensure  that consumers  have                                                               
strong privacy protections.                                                                                                     
4:30:52 PM                                                                                                                    
CO-CHAIR FIELDS  referred to Mr.  Koa's suggestion to  delete the                                                               
standalone  revenue threshold  and to  exclude B2B  contacts from                                                               
the  proposed  legislation.    He asked  for  discussion  on  the                                                               
practicality of excluding B2B exchanges.                                                                                        
MS.  MAHONEY said  that,  while there  are a  number  of ways  to                                                               
determine an appropriate threshold  for regulation, the number of                                                               
consumers on which data is  collected is an appropriate metric to                                                               
consider.  She  stated that the main concern  of Consumer Reports                                                               
is to  make sure  consumers have  strong privacy  protections and                                                               
that they are able to exercise their preferences.                                                                               
4:32:48 PM                                                                                                                    
CO-CHAIR FIELDS announced that HB 159 was held over.                                                                            

Document Name Date/Time Subjects
SB 21 Amendment #1 5.4.21.pdf HL&C 5/5/2021 3:15:00 PM
SB 21
SB 21 Statement of Zero Fiscal Impact 3.5.21.pdf HL&C 5/5/2021 3:15:00 PM
SB 21
DOLWD Gender Pay Gap Presentation 5.5.21.pdf HL&C 5/5/2021 3:15:00 PM
HB 159 Ad Trade Letter of Opposition 4.22.21.pdf HL&C 5/5/2021 3:15:00 PM
HL&C 5/12/2021 3:15:00 PM
HB 159
CS HJR19 (L&C) Fiscal Note.pdf HL&C 5/5/2021 3:15:00 PM
HJR 19
CS HJR19 (L&C).pdf HL&C 5/5/2021 3:15:00 PM
HJR 19
Gender Pay Testimony House Labor Commerce - Foraker Group 5-5-2021.pdf HL&C 5/5/2021 3:15:00 PM
Gender Wage Gap - Hilary Morgan 5.5.21.pdf HL&C 5/5/2021 3:15:00 PM
DOLWD Analysis - The Gender Wage Gap, September 2019.pdf HL&C 5/5/2021 3:15:00 PM
Alaska Economic Trends - The Gender Wage Gap, 2017.pdf HL&C 5/5/2021 3:15:00 PM