Legislature(1993 - 1994)
03/15/1993 01:00 PM House JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 113: CHARITABLE & TELEPHONIC SOLICITING/SALES Number 044 REPRESENTATIVE RON LARSON, PRIME SPONSOR of HB 113, said that charities throughout the nation had problems with "look alike" organizations, unconnected with the charity, which solicited "charitable" donations. He said that a bill similar to HB 113 had been introduced late last session. Representative Larson noted that Assistant Attorney General Jim Forbes had worked extensively to develop HB 113. Number 114 JIM FORBES, ASSISTANT ATTORNEY GENERAL, testified via teleconference from Anchorage. He worked for the Fair Business Practices Section of the Department of Law (DOL). He said that probably every legislator had encountered situations in which their constituents had been "taken" by a high-pressure telephone sales person. He noted that the telephone sales industry was currently virtually unregulated in Alaska. MR. FORBES said that the problem of charitable solicitation fraud was fairly widespread, and resulted in diminished contributions to legitimate charities. He commented that HB 113 would help the DOL catch violators, and would serve as a deterrent to violators. He said that HB 113 would also improve the state's ability to prosecute high-pressure telemarketers. MR. FORBES noted that HB 113 contained a number of exemptions, which he was confident covered legitimate telemarketing operations. Number 214 CHAIRMAN BRIAN PORTER mentioned that a number of proposed amendments to HB 113 had been brought to the committee's attention. He wanted to have the amendments incorporated into a Judiciary Committee substitute for the bill. He said that HB 113 would be rescheduled for a hearing as soon as possible. Number 229 REPRESENTATIVE JEANNETTE JAMES stated that when HB 113 was heard again, she would like further explanation of one amendment regarding telephone sales of securities. Number 241 REPRESENTATIVE GAIL PHILLIPS liked the portion of the bill which mandated a "cooling off" period for written contracts. She asked why funeral home directors and embalmers were exempted from the provisions of HB 113. Number 255 REPRESENTATIVE JIM NORDLUND asked if the language on page 6, lines 7-9 of HB 113 only pertained to charitable organizations that wished to solicit contributions over the telephone. CHAIRMAN PORTER replied that the language to which Representative Nordlund had referred pertained to charitable organizations that wished to solicit contributions by any means. Number 276 MR. FORBES said that the language pertained to any organization which solicited contributions from the public. REPRESENTATIVE NORDLUND asked if a charitable organization which raised funds through auctions and raffles would have to register with the DOL, under HB 113's provisions. Number 288 MR. FORBES responded that organizations engaging in that sort of fund raising would be required to register with the DOL. Number 290 REPRESENTATIVE NORDLUND asked what the registration process would entail. He noted that charitable organizations generally already registered with the Department of Commerce and Economic Development (DCED). Number 295 MR. FORBES commented that HB 113, as currently drafted, would require charitable organizations to register with the DOL, in addition to the current requirement of registering with the DCED. He was looking at ways to reduce paperwork requirements, through the regulatory process. He said it was possible that registration with the DCED might be deemed sufficient, by regulation, to meet HB 113's requirements. Number 318 REPRESENTATIVE NORDLUND noted that streamlined registration procedures would assist small charitable organizations already overburdened with paperwork. Number 324 MR. FORBES agreed.
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