05/11/2002 10:52 AM Senate FIN

     SENATE CS FOR CS FOR HOUSE BILL NO. 393(L&C)                                                                               
     "An Act  relating to unfair and  deceptive trade practices  and                                                            
     to the  sale of business  opportunities;  amending Rules  4 and                                                            
     73,  Alaska Rules  of  Civil Procedure;  and  providing for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
DOUG LETCH, Staff  to Representative Gary Stevens,  stated that this                                                            
consumer protection bill  is designed to protect Alaskans from "get-                                                            
rich-quick-schemes"   that  prey  on  individuals   such  as  senior                                                            
citizens. He stated that  by requiring certain companies to register                                                            
with the  State before  establishing  and operating  their  business                                                            
would provide  the Department of Law with the means  to regulate and                                                            
enforce regulations regarding trade practices.                                                                                  
                                                                                                                                
Senator Olson  asked whether this bill would address  such things as                                                            
"sweepstakes or pyramid" schemes.                                                                                               
                                                                                                                                
CRYSTAL SMITH,  Special Assistant,  Office of the Attorney  General,                                                            
Department  of Law stated  that pyramid  schemes may  or may  not be                                                            
affected by  the bill, and that other  consumer protection  measures                                                            
address  sweepstakes  schemes.  She  explained  that  this  bill  is                                                            
intended  to address schemes  wherein people  purchase a product  or                                                            
establish  a business  to sell a  product. She  noted that  Alaskans                                                            
seem to be targeted by  these enterprises, and that the operators of                                                            
these businesses  set up,  conduct, and finish  their business  in a                                                            
short time-frame. She stated  that many of these businesses would be                                                            
deterred  from setting up  practice in the  State if their  business                                                            
were required  to register  with the State.  She insisted that  this                                                            
bill would provide  the State with the ability to  charge a business                                                            
with a  registration violation  if business  were conducted  without                                                            
first  registering,  and she  noted  that  this violation  would  be                                                            
faster to implement  than proceedings  based on a "scam violation."                                                             
                                                                                                                                
Senator Austerman offered  a motion to move "HB 393 out of Committee                                                            
with  individual  recommendations  and  accompanying  indeterminate                                                             
fiscal note."                                                                                                                   
                                                                                                                                
There being  no objections,  SCS CS HB 393  (L&C) was REPORTED  from                                                            
Committee with an indeterminate  fiscal note dated February 21, 2002                                                            
from the Department of Law.