Legislature(2007 - 2008)HOUSE FINANCE 519

02/21/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 7 FALSE CALLER IDENTIFICATION TELECONFERENCED
Heard & Held
+ HB 108 BOARD OF MARINE PILOTS TELECONFERENCED
Moved CSHB 108(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 7                                                                                                              
                                                                                                                                
     "An Act relating to false caller identification."                                                                          
                                                                                                                                
Representative Hawker MOVED to  ADOPT the work draft to HB 7,                                                                   
labeled  25-LS0057\L,  Bannister, 2/20/07.    There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:08:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BOB  LYNN, sponsor, warned the  committee that                                                                   
the name seen  on one's Caller  ID may not be the  person who                                                                   
is  actually calling.    He  presented various  scenarios  of                                                                   
false information appearing on  Caller ID systems.  He termed                                                                   
HB 7 a proactive bill.                                                                                                          
                                                                                                                                
2:10:47 PM                                                                                                                    
                                                                                                                                
DIRK MOFFATT, STAFF, REPRESENTATIVE  BOB LYNN, explained that                                                                   
the CS  in front  of the  committee today  has changed  a lot                                                                   
from the  House Judiciary  Committee  version.  He  explained                                                                   
that the technology  to fool Caller ID is not  new.  A simple                                                                   
calling  card  can  put  false information  on  a  Caller  ID                                                                   
system.                                                                                                                         
                                                                                                                                
Mr. Moffatt related  that HB 7 says if someone  makes a false                                                                   
identification  call, attempting to  defraud, that  person is                                                                   
guilty of  a Class B or  a Class A misdemeanor,  depending on                                                                   
how many calls are made.                                                                                                        
                                                                                                                                
2:13:05 PM                                                                                                                    
                                                                                                                                
Co-Chair   Meyer  asked   why  there   are  two  classes   of                                                                   
misdemeanor.   Mr. Moffatt replied  that originally it  was a                                                                   
Class B crime, but the addition  of Class A addresses someone                                                                   
who makes many of calls.  The  number five came from a scheme                                                                   
to defraud statute.                                                                                                             
                                                                                                                                
2:14:08 PM                                                                                                                    
                                                                                                                                
Representative Crawford spoke in support of the bill.                                                                           
                                                                                                                                
Representative  Gara recalled seeing  the bill last  session.                                                                   
He mentioned candidate poll surveys  where a candidate's name                                                                   
is   concealed,  wondering   if  the   bill  addresses   that                                                                   
situation.    Representative   Lynn  replied  that  the  bill                                                                   
applies to  all false  Caller ID's.   Mr. Moffatt  emphasized                                                                   
that the aim of the bill is at  those who attempt to defraud.                                                                   
                                                                                                                                
Representative Gara asked about  research polls.  Mr. Moffatt                                                                   
opined that they are not fraud.                                                                                                 
                                                                                                                                
2:16:43 PM                                                                                                                    
                                                                                                                                
Representative Hawker  referred to a memo (February  8, 2007,                                                                   
Theresa Bannister,  Legislative  Legal Services) in  members'                                                                   
packets that may  raise due process issues.   He requested an                                                                   
explanation  of those  issues and  whether or  not they  have                                                                   
been  resolved.   Mr.  Moffatt deferred  to  Mr. Sniffen  and                                                                   
Terry Bannister to answer that question.                                                                                        
                                                                                                                                
2:17:55 PM                                                                                                                    
                                                                                                                                
SONIA SUBANI,  AARP Alaska,  related that  older persons  are                                                                   
more vulnerable to  telephone fraud.  She related  a personal                                                                   
experience of fraudulent Caller ID.                                                                                             
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
CLYDE   (ED)  SNIFFEN   JR.,   ASSISTANT  ATTORNEY   GENERAL,                                                                   
DEPARTMENT  OF LAW,  explained  the differences  between  the                                                                   
various versions of HB 7.  He  reported that in the Judiciary                                                                   
Committee the focus was on the  definition of a violation and                                                                   
how  to   make  the  crimes   specific  to  the   display  of                                                                   
information as it appears on someone's  phone.  The intention                                                                   
was to make the bill easier to understand and enforce.                                                                          
                                                                                                                                
2:23:14 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer asked  how many  complaints  there have  been                                                                   
regarding this issue.  Mr. Sniffen  said that there have been                                                                   
many  indirect complaints  from  victims  of identity  theft.                                                                   
Co-Chair Meyer  wondered if  it would  be difficult  to prove                                                                   
this as criminal  action.  He suspected that  most would fall                                                                   
under  civil action.   Mr.  Sniffen replied  most would  fall                                                                   
under  the civil  division  rather  than the  criminal  side.                                                                   
Legal efforts would be focused  on the criminal class - Class                                                                   
A  offenses.    Co-Chair  Meyer  asked  if  Mr.  Sniffen  was                                                                   
comfortable having two classes  of misdemeanors.  Mr. Sniffen                                                                   
said he could  understand the sponsor's logic  for having the                                                                   
two classes.  Co-Chair Meyer said  he would go along with the                                                                   
Judiciary Committee's version of the bill.                                                                                      
                                                                                                                                
Representative Lynn noted that  the degree of violation was a                                                                   
concern of the Judiciary Committee.                                                                                             
                                                                                                                                
2:27:40 PM                                                                                                                    
                                                                                                                                
Representative  Crawford asked what  the rules currently  are                                                                   
for  client  identification  regarding  polls.   Mr.  Sniffen                                                                   
related  that there  are rules  regarding telemarketing,  but                                                                   
not  for political  polls.   Intentional  deception would  be                                                                   
considered fraud.                                                                                                               
                                                                                                                                
Representative Crawford asked  if it is a crime if a pollster                                                                   
gives the  impression that a poll  is research.   Mr. Sniffen                                                                   
replied that if  a reasonable consumer would  be misled, then                                                                   
it would be fraud.                                                                                                              
                                                                                                                                
2:30:42 PM                                                                                                                    
                                                                                                                                
Representative Gara posed a hypothetical  situation involving                                                                   
two  political opponents.   He  wondered if  such conduct  is                                                                   
currently  allowed.  Mr.  Sniffen thought  that the  bill was                                                                   
directed at more obvious conduct.                                                                                               
                                                                                                                                
2:32:05 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  asked if  the due  process  questions                                                                   
were addressed.   Mr. Sniffen replied that one  of the issues                                                                   
was ambiguous language  as to the number of  calls that would                                                                   
qualify  for Class  A  and Class  B.   Representative  Hawker                                                                   
asked Ms. Bannister to reply.                                                                                                   
                                                                                                                                
2:33:17 PM                                                                                                                    
                                                                                                                                
THERESA  BANNISTER,  ATTORNEY,  LEGISLATIVE  LEGAL  SERVICES,                                                                   
thought work draft version L was fine.                                                                                          
                                                                                                                                
Representative Hawker questioned  the meaning of "the call or                                                                   
other conduct resulting in false  information being displayed                                                                   
to fewer  or more than five  recipients".  He  wondered about                                                                   
multiple calls  to the same  recipient.  Mr.  Sniffen thought                                                                   
that each separate display would be a separate violation.                                                                       
                                                                                                                                
Ms. Bannister  explained that it  depends on the type  of the                                                                   
call.   Representative   Hawker   summarized  that   if   one                                                                   
perpetrator made 10  calls to the same recipient  it would be                                                                   
a Class  B misdemeanor  - fewer  than five  recipients.   Ms.                                                                   
Bannister said yes.  Representative  Hawker asked if that was                                                                   
the sponsor's intent.                                                                                                           
                                                                                                                                
Mr. Sniffen  explained the  intent was  if someone  made five                                                                   
displays on  a Caller ID system  it would count as  a Class A                                                                   
misdemeanor.   Representative Hawker termed  that conflicting                                                                   
testimony.   Ms. Bannister  suggested  the language could  be                                                                   
re-written.    Co-Chair Meyer  suggested  going  back to  the                                                                   
original bill.                                                                                                                  
                                                                                                                                
2:38:12 PM                                                                                                                    
                                                                                                                                
Representative  Lynn replied that  he was agreeable  to going                                                                   
back to the original bill, but  did not want to undo the work                                                                   
of the Judiciary Committee.  Co-Chair  Meyer thought the bill                                                                   
was confusing as worded.  He asked  Ms. Bannister if the bill                                                                   
was returned  to "one  call, one  crime" if  any due  process                                                                   
issues would come up.                                                                                                           
                                                                                                                                
Ms. Bannister did not believe  the original [A] version would                                                                   
be problematic.   Mr. Sniffen  clarified that  the difficulty                                                                   
with the K version would be in  section (a) "A person may not                                                                   
knowingly  make a call  and insert  false information  into a                                                                   
caller  identification system  with the  intent to  defraud."                                                                   
It  would  be  hard  to  determine   who  inserts  the  false                                                                   
information,   a  person  who   inputs  information   into  a                                                                   
computer,  or the  operator who  makes the  phone call.   The                                                                   
"caller  identification system"  is defined  in Version  K to                                                                   
mean a listing of a caller's name,  telephone number, or name                                                                   
and telephone number  that is shown to a recipient  of a call                                                                   
when the  recipient answers.   Mr.  Sniffen thought  that was                                                                   
confusing and  was intended to  mean a telephone.   Version L                                                                   
tried to clarify  that language.  He suggested  using Version                                                                   
L and re-working (c).                                                                                                           
                                                                                                                                
Co-Chair Meyer  stated his intent  to hold the bill  over and                                                                   
to work further with the sponsor on it.                                                                                         
                                                                                                                                
2:43:02 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  referred  to the  abuse  of  privacy                                                                   
provisions related  to phones  for people with  disabilities.                                                                   
He wondered  if that  circumstance could  be addressed.   Mr.                                                                   
Sniffen was not familiar with federal laws.                                                                                     
                                                                                                                                
2:45:29 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault questioned how  many cases have occurred in                                                                   
Alaska.  Ms. Subani did not know.                                                                                               
                                                                                                                                
Co-Chair  Chenault  observed  that there  were  several  zero                                                                   
fiscal  notes  associated  with  the  legislation,  with  the                                                                   
exception  of the Department  of Public  Safety.  He  pointed                                                                   
out  the  lack  of  a fiscal  note  from  the  Department  of                                                                   
Corrections.  In  response to a hypothetical  scenario by Co-                                                                   
Chair Chenault, Mr. Sniffen agreed it was fraud.                                                                                
                                                                                                                                
2:49:37 PM                                                                                                                    
                                                                                                                                
Discussion followed  regarding zero and indeterminate  fiscal                                                                   
notes  that would  result  from  increased costs.    Co-Chair                                                                   
Chenault suggested  that the number  of cases  would increase                                                                   
and costs would ensue.                                                                                                          
                                                                                                                                
CSHB 7 (FIN) was heard and HELD in Committee for further                                                                        
consideration.                                                                                                                  
                                                                                                                                

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