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 FINANCE COMMITTEE                                                                                       
                     February 21, 2007                                                                                          
                         1:42 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:42:02 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Richard Foster                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Eleanor Wolfe,  Staff, Representative Kurt Olson;  Al Clough,                                                                   
Deputy Commissioner,  Department  of Commerce, Community  and                                                                   
Economic Development,  Chairman of the Marine  Pilot's Board;                                                                   
Captain   Larry   Vose,   President   of   Southeast   Pilots                                                                   
Association; Rick  Urion, Director, Division  of Occupational                                                                   
Licensing;  Representative  Bob  Lynn; Dirk  Moffatt,  Staff,                                                                   
Representative Bob Lynn                                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Clyde   (Ed)  Sniffen   Jr.,   Assistant  Attorney   General,                                                                   
Department  of  Law;  Sonia  Subani,   AARP  Alaska;  Theresa                                                                   
Bannister, Attorney, Legislative Legal Services                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 108    "An  Act extending  the  termination  date for  the                                                                   
          Board of Marine Pilots; and providing for an                                                                          
          effective date."                                                                                                      
                                                                                                                                
          CSHB 108  (L&C) was REPORTED out of  Committee with                                                                   
          a "do  pass" recommendation and with  a fiscal note                                                                   
          by the  House Finance Committee for  the Department                                                                   
          of Commerce, Community and Economic Development.                                                                      
                                                                                                                                
HB 7      "An Act relating to false caller identification."                                                                     
                                                                                                                                
          CSHB 7 (FIN) was heard and HELD in Committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
1:42:13 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 108                                                                                                            
                                                                                                                                
     "An Act extending the termination date for the Board of                                                                    
     Marine Pilots; and providing for an effective date."                                                                       
                                                                                                                                
ELEANOR WOLFE,  STAFF, REPRESENTATIVE  KURT OLSON,  explained                                                                   
that HB  108 extends the Board  of Marine Pilots  until 2013.                                                                   
She offered to answer questions.                                                                                                
                                                                                                                                
1:45:14 PM                                                                                                                    
                                                                                                                                
RICK  URION, DIRECTOR,  DIVISION  OF OCCUPATIONAL  LICENSING,                                                                   
observed  that the  Board of  Marine Pilots  comes under  his                                                                   
division.   He spoke in  support of the  bill and  offered to                                                                   
answer questions.                                                                                                               
                                                                                                                                
1:46:05 PM                                                                                                                    
                                                                                                                                
AL  CLOUGH,  DEPUTY  COMMISSIONER,  DEPARTMENT  OF  COMMERCE,                                                                   
COMMUNITY  AND ECONOMIC  DEVELOPMENT, CHAIR  OF THE  BOARD OF                                                                   
MARINE PILOTS,  stated support  for the  bill and offered  to                                                                   
answer questions.                                                                                                               
                                                                                                                                
Co-Chair Chenault  asked if marine pilots only  pilot foreign                                                                   
flag  vessels in  Alaskan waters.   Mr.  Clough replied  that                                                                   
foreign  flag vessels  are  required to  have  a U.S.  Marine                                                                   
Pilot on board;  other vessels may choose to have  a pilot on                                                                   
board.   Most  of the  American  flag tankers  out of  Valdez                                                                   
choose to have a licensed marine pilot.                                                                                         
                                                                                                                                
Representative Stoltze  asked if large foreign  flag pleasure                                                                   
craft need a marine pilot.  Mr.  Clough replied that there is                                                                   
an exemption for yachts up to 175 feet.                                                                                         
                                                                                                                                
1:48:23 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  wondered  if  there  is  a  penalty  to  the                                                                   
association or  the pilot if the  pilot is not enrolled  in a                                                                   
drug testing program.   Mr. Clough explained  that pilots are                                                                   
required by  the Coast  Guard and by  state regulation  to be                                                                   
enrolled in  such a program.   The issues brought out  in the                                                                   
audit were related to record keeping.                                                                                           
                                                                                                                                
Co-Chair Meyer asked  what the penalty is if  drug testing is                                                                   
not done.   Mr.  Clough said  it is  a requirement and  there                                                                   
currently is no problem with lack of compliance.                                                                                
                                                                                                                                
1:50:36 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze asked  about a  requirement for  drug                                                                   
testing for  pleasure crafts.   Mr. Clough explained  that it                                                                   
is not  the state's  issue because  there is  not a  pilot on                                                                   
board.   If  there were  an incident,  then  the Coast  Guard                                                                   
would respond.                                                                                                                  
                                                                                                                                
1:51:55 PM                                                                                                                    
                                                                                                                                
CAPTAIN   LARRY   VOSE,   PRESIDENT   OF   SOUTHEAST   PILOTS                                                                   
ASSOCIATION,  stated support for  HB 108.   He elaborated  on                                                                   
the previous  question  regarding U.S.  flag vessels.   There                                                                   
are two types  of pilots, federal and state.   Federal pilots                                                                   
apply to  U.S. flag vessels.   The vessels that go  to Valdez                                                                   
have  both federal  and state  pilots  on board.   All  state                                                                   
pilots  have   to  have   a  federal   pilot  license   as  a                                                                   
prerequisite.  A vessel has to  be over 1,600 tons to require                                                                   
a federal pilot.  Regarding the  drug testing requirement, it                                                                   
is  a condition  of  employment  and the  pilot  has to  show                                                                   
evidence of compliance in order to dispatch.                                                                                    
                                                                                                                                
Representative  Stoltze asked  for a  definition of  a marine                                                                   
pilot.   Captain Vose related  the qualifications  for marine                                                                   
pilots.                                                                                                                         
                                                                                                                                
1:56:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked where the  pilots board oil  tankers up                                                                   
north.  Captain Vose explained  regional boarding procedures.                                                                   
                                                                                                                                
Representative  Joule  asked if  the pilot  associations  are                                                                   
closed and if applicants must  receive an invitation to join.                                                                   
He  also  wondered  about age  restrictions.    Captain  Vose                                                                   
explained the current competitive  process for application to                                                                   
become a marine  pilot.  He maintained it is a  fair and open                                                                   
process.   Captain Vose noted  it takes about seven  years to                                                                   
become a fully licensed pilot.                                                                                                  
                                                                                                                                
Co-Chair Chenault asked about  state vs. federal pilot limits                                                                   
in the Gulf of Alaska as they  relate to oil spills.  Captain                                                                   
Vose explained  that federal pilotage  waters are  from three                                                                   
miles  out, inward  -  the  United States  territorial  seas.                                                                   
State pilotage  boundaries  are within  the inside waters  of                                                                   
the state.                                                                                                                      
                                                                                                                                
2:03:40 PM                                                                                                                    
                                                                                                                                
Representative Gara  questioned the marine  pilot involvement                                                                   
as it related  to the Exxon  Valdez.  Captain Vose  said that                                                                   
the  accident happened  after the  marine pilot  was off  the                                                                   
ship.  The  pilot station has  since been moved seaward.   He                                                                   
spoke of  difficulties of providing  pilots in all  areas and                                                                   
the safety issues of boarding the ships.                                                                                        
                                                                                                                                
2:06:33 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted  a new fiscal note written  by the House                                                                   
Finance Committee  for the Department of  Commerce, Community                                                                   
and Economic Development.                                                                                                       
                                                                                                                                
Representative  Hawker  MOVED  to  report  CSHB  108  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  108 (L&C)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation and  with a  fiscal note  by the  House                                                                   
Finance Committee  for Department of Commerce,  Community and                                                                   
Economic Development.                                                                                                           
                                                                                                                                
2:07:26 PM                                                                                                                    
                                                                                                                                
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.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:54 PM.                                                                                           

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