04/23/1993 02:05 PM Senate JUD

 SENATOR TAYLOR introduced  CSHB 113(FIN)  (CHARITABLE &                       
 TELEPHONIC SOLICITING/SALES) as the next order of business.                   
                                                                               
                                                                               
 JUDY MATHIS, staff to Representative Ron Larson, who is prime                 
 sponsor of HB 113, related that Jim Forbes, an Assistant                      
 Attorney General in Anchorage, was the drafter of the                         
 legislation and that he would present a brief overview on the                 
 legislation.                                                                  
                                                                               
 JIM FORBES explained that the legislation covers two different                
 types of fraud which are telemarketing and charitable                         
 solicitation fraud.                                                           
                                                                               
 Mr. Forbes said based on FBI and Federal Trade Commission                     
 estimates, Alaskans may be losing in the neighborhood of $20                  
 million a year to a specific type of telemarketing process the                
 bill targets.  Alaska is one of the very few states that                      
 doesn't have any type of regulations on the subject.  It has                  
 been found that the telemarketers target elderly people and                   
 rural Alaskans, in particular.                                                
                                                                               
 Number 201                                                                    
                                                                               
 SENATOR LITTLE asked how the legislation would affect                         
 legitimate nonprofit organizations in the state who would                     
 normally conduct a telephonic fund raising campaign.  JIM                     
 FORBES said the legislation requires that anybody who solicits                
 or expects to raise more than $5,000 in a single year to                      
 register with the Department of Law.  It is the department's                  
 intent, through regulations, to make that registration process                
 as painless as possible, and they hope to be able to roll it                  
 in to the requirement that they renew their corporate status                  
 every two years with the corporation's commission.                            
                                                                               
 Number 235                                                                    
                                                                               
 SENATOR TAYLOR asked for the pleasure of the committee.                       
                                                                               
 SENATOR HALFORD moved that the CSHB 113(FIN) be passed out of                 
 committee with individual recommendations.  Hearing no                        
 objection, it was so ordered.