Itz quite interesting problem. If you select the GridView in the designer, and select that entry in the Properties box, you can select the correct values. The result should change your source line to look something like the following (in bold):
<asp:GridView ID="GridView1" runat="server" AutoGenerateColumns="False" DataKeyNames="id" DataSourceID="SqlDataSource1">
All the tutorials mention that the DataKeyNames entry is automatically added for you. However, I discovered that if you change the SqlDataSource1 control to add or delete columns, a dialog pops asking if you want to "Refresh the Fields and Keys ..." This is where the problem occurs since it clears the DataKeyNames entry. Also, you may not want a DropDownList in the ItemTemplate, but may want to leave it alone as a label and Eval it to the field to which the licensee_id field points.