Legislature(1993 - 1994)
05/01/1993 10:40 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 1, 1993
10:40 a.m.
TAPES
SFC-93, #71, Side 1 (490-end)
SFC-93, #71, Side 2 (575-475)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 10:40 a.m.
PRESENT
All committee members (Co-chairs Pearce and Frank and
Senators Jacko, Kelly, Kerttula, Rieger, and Sharp) were
present.
ALSO ATTENDING: Representative Ron Larson; Judy Mathis,
aide to Representative Larson; and aides to committee
members and other members of the legislature.
SUMMARY INFORMATION
HB 113 - CHARITABLE & TELEPHONIC SOLICITING/SALES
Discussion was had with Representative Larson
and Judy Mathis. The bill was HELD in
committee for testimony from legal staff.
HB 158 - APPROP: CONTRACT SETTLEMENT COSTS
SCS CSHB 158 (L&C) (totaling $9,075,408) was
REPORTED OUT of committee with a "do pass"
recommendation.
HB 209 - COMMUNITY HEALTH AIDE GRANTS
The bill was REPORTED OUT of committee with a
"do pass" recommendation and zero fiscal note
from the Dept. of Health and Social Services.
CS FOR HOUSE BILL NO. 158(L&C)
An Act making appropriations for contract settlement
costs and cost-of-living adjustments for public
employees who are members of certain collective
bargaining units; and providing for an effective date.
[Mechanical problems with tape deck. This portion of the
minutes reflects transcription of shorthand notes.]
Co-chair Pearce directed that CSHB 158 (L&C) be brought on
for discussion. She then noted the Senate Labor and
Commerce Committee Substitute and queried members concerning
disposition of the bill. Senator Kelly MOVED that SCS CSHB
158 (L&C) pass from committee with individual
recommendations. No objection having been raised, SCS CSHB
158 (L&C) was REPORTED OUT of committee. Co-chairs Pearce
and Frank and Senators Kelly, Rieger, and Sharp signed the
committee report with a "do pass" recommendation. Senator
Kerttula signed "no rec." Senator Jacko signed "Hold until
264 moves."
HOUSE BILL NO. 209
An Act relating to community health aide grants.
Co-chair Pearce directed that HB 209 be brought on for
consideration. Senator Rieger MOVED that it pass from
committee with individual recommendations. No objection
having been raised, HB 209 was REPORTED OUT of committee
with a zero fiscal note from the Dept. of Health and Social
Services. Co-chairs Pearce and Frank and Senators Jacko,
Kelly, and Rieger signed the committee report with a "do
pass" recommendation. Senators Kerttula and Sharp signed
"no rec."
CS FOR HOUSE BILL NO. 113(FIN)
An Act regulating the solicitation of contributions by
charitable organizations and paid solicitors and the
solicitation of sales by telephonic means; and amending
Alaska Rules of Civil Procedure 79 and 82.
Co-chair Pearce directed that CSHB 113 (Finance) be brought
on for discussion and noted interest in the bill by the
Cancer Society. Senator Kerttula attested to instances in
which individuals have lost money to telephonically
conducted scams. Co-chair Pearce observed that the bill
would provide a "cooling off" period for telemarketing.
[Recording problems were corrected at this point in time.
The remainder of the minutes reflect tape transcription.]
REPRESENTATIVE RON LARSON, sponsor of the legislation, came
before committee. Senator Rieger asked if the bill would
provide for notations in phone directories advising
customers that they could choose no to be solicited by
phone. Representative Larson explained that that provision
was contained within legislation sponsored by Representative
Brown. While inclusion within HB 113 was discussed, the
provision was not added.
Senator Kelly referenced the $5,000 limitation and asked if
those seeking to raise over that amount would be subject to
provisions of the bill. Representative Larson responded
affirmatively. JUDY MATHIS, aide to Representative Larson,
added that reporting requirements merely consist of filling
out a registration form for filing with the Dept. of Law.
As background information, Representative Larson explained
that the bill originated as a result of a national meeting
of the American Cancer Society. Concern was raised, at that
time, that "look alike organizations" were "ripping off"
legitimate charities. The proposed bill is patterned after
legislation enacted in several other states to address the
problem of telephonic solicitation by illegal means. Under
the bill, the Dept. of Law would be given the power to
extradite illegal telephonic solicitors from out of state to
Alaska for trial. Senator Kelly voiced support for the
thrust of the legislation. He expressed concern, however,
regarding the $5,000 limit, suggesting that it is not high
enough. He spoke to possible adverse impact on smaller
charities that might not have the wherewithal to become
knowledgeable of state regulations and additional
bookkeeping associated with reporting requirements. Co-
chair Frank concurred and questioned whether there was need
for a threshold.
Senator Rieger referred to language at page 10, lines 20 and
21, and advised of his understanding that a church or
religious organization would be exempt from the legislation
and able to raise any amount it chooses. Representative
Larson concurred.
Co-chair Frank inquired concerning the "cooling off" period
for telemarketing contracts. Judy Mathis explained that
under bill provisions a telemarketer would be required to
send a contract to the purchaser of goods. The sale does
not become valid until the purchaser signs the contract.
End, SFC-93, #71, Side 1
Begin, SFC-71, Side 2
A telemarketer may not simply obtain the customer's credit
card number over the phone and conclude the transaction.
This provides a cooling off period for purchasers who
subsequently feel they were pressured by the telemarketer
into buying something they did not want.
Both Senator Kelly and Co-chair Frank voiced need for
testimony from staff at the Dept. of Law and Legislative
Legal Services regarding the effect of Alaska Rules of Civil
Procedure changes contained within the bill. Co-chair
Pearce advised that the meeting would soon be recessed for
majority and minority caucuses. She suggested that a
teleconference be scheduled with Jim Forbes, Assistant
Attorney General, Fair Practices Section, Dept. of Law, in
Anchorage and that he testify before committee later in the
day.
Co-chair Frank posed an additional question regarding
"prohibited presentations" at page 3. Representative Larson
explained that the language is intended to prohibit
telemarketers from listing licenses, qualifications, and
other credentials intended to entice the customer into
buying. Co-chair Frank suggested that if the credentials
and representations are valid, there should be no problem in
presenting them. Representative Larson noted instances
where false or misleading information is given in an effort
to establish legitimacy.
In response to a question from Senator Rieger, Judy Mathis
explained that the legislation relates to calls made by
telemarketers to customers. It would not apply to
situations whereby the customer calls to obtain a price
(airline fares were used as an example) or purchase an item.
Senator Rieger questioned whether language at page 1 was
clear on that issue.
RECESS
Co-chair Pearce directed that the meeting be recessed,
subject to a call of the chair. The meeting was recessed at
approximately 11:10 a.m.
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