Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/23/2012 01:30 PM JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SJR 19 CONST. AM: REDISTRICTING BOARD TELECONFERENCED
Scheduled But Not Heard
+= SB 180 NATURALLY OCCURRING ASBESTOS IN GRAVEL TELECONFERENCED
Heard & Held
+ SB 138 THIRD-PARTY CHARGES ON TELEPHONE BILLS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 200 EYEWITNESSES AND LINEUPS TELECONFERENCED
Moved CSSB 200(JUD) Out of Committee
+= SB 210 CRIMES AGAINST CHILDREN TELECONFERENCED
Moved CSSB 210(JUD) Out of Committee
+= SB 212 HUMAN TRAFFICKING TASK FORCE TELECONFERENCED
Moved CSSB 212(JUD) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         March 23, 2012                                                                                         
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Joe Paskvan                                                                                                             
Senator John Coghill                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lesil McGuire                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 200                                                                                                             
"An   Act  establishing   certain  procedures   related  to   the                                                               
identification   of   suspects   by  eyewitnesses   to   criminal                                                               
offenses."                                                                                                                      
                                                                                                                                
     - MOVED CSSB 200(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 210                                                                                                             
"An Act relating  to crimes against children;  establishing a new                                                               
aggravating  factor  at  sentencing  in  certain  crimes  against                                                               
children; relating to criminal nonsupport;  adding to the list of                                                               
crimes against children that bar  the Department of Public Safety                                                               
from issuing to a person a  license to drive a school bus; adding                                                               
an  exception to  a  provision that  requires  the Department  of                                                               
Health and Social Services to  make timely, reasonable efforts to                                                               
provide family support services  to prevent out-of-home placement                                                               
of a child; and providing for an effective date."                                                                               
                                                                                                                                
     - MOVED CSSB 210(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 212                                                                                                             
"An  Act relating  to crimes  of human  trafficking; establishing                                                               
the Human  Trafficking Task Force to  evaluate services available                                                               
to   victims  of   human  trafficking;   and   relating  to   the                                                               
recommendations and report of the task force."                                                                                  
                                                                                                                                
     - MOVED CSSB 212(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 180                                                                                                             
"An  Act directing  the Department  of Transportation  and Public                                                               
Facilities  to  develop  and implement  standards  and  operating                                                               
procedures  allowing   for  the  use  in   the  construction  and                                                               
maintenance of transportation projects  and public facilities and                                                               
in the  construction of projects  by public and  private entities                                                               
of gravel  or aggregate materials  that contain a  limited amount                                                               
of  naturally  occurring  asbestos,  and authorizing  use  on  an                                                               
interim  basis  of  those materials  for  certain  transportation                                                               
projects  and  public  facilities;  relating  to  certain  claims                                                               
arising  out of  or  in  connection with  the  use  of gravel  or                                                               
aggregate  materials containing  a  limited  amount of  naturally                                                               
occurring asbestos; and providing for an effective date."                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 138                                                                                                             
"An Act relating  to the inclusion of the charges  of a vendor of                                                               
goods  or services  on the  bills  of certain  telecommunications                                                               
carriers; and adding  an unlawful act to the  Alaska Unfair Trade                                                               
Practices and Consumer Protection Act."                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE JOINT RESOLUTION NO. 19                                                                                                  
Proposing amendments to  the Constitution of the  State of Alaska                                                               
relating to the membership of the Redistricting Board.                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 200                                                                                                                  
SHORT TITLE: EYEWITNESSES AND LINEUPS                                                                                           
SPONSOR(s): SENATOR(s) FRENCH                                                                                                   
                                                                                                                                
02/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/12       (S)       JUD, FIN                                                                                               
02/27/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/27/12       (S)       Heard & Held                                                                                           
02/27/12       (S)       MINUTE(JUD)                                                                                            
03/16/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/16/12       (S)       Scheduled But Not Heard                                                                                
03/21/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/21/12       (S)       Scheduled But Not Heard                                                                                
03/23/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 210                                                                                                                  
SHORT TITLE: CRIMES AGAINST CHILDREN                                                                                            
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
02/21/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/12       (S)       JUD, FIN                                                                                               
02/27/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/27/12       (S)       Heard & Held                                                                                           
02/27/12       (S)       MINUTE(JUD)                                                                                            
03/16/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/16/12       (S)       Scheduled But Not Heard                                                                                
03/21/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/21/12       (S)       Scheduled But Not Heard                                                                                
03/23/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 212                                                                                                                  
SHORT TITLE: HUMAN TRAFFICKING TASK FORCE                                                                                       
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
02/21/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/12       (S)       JUD, FIN                                                                                               
02/29/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/29/12       (S)       Heard & Held                                                                                           
02/29/12       (S)       MINUTE(JUD)                                                                                            
03/16/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/16/12       (S)       Scheduled But Not Heard                                                                                
03/23/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 180                                                                                                                  
SHORT TITLE: NATURALLY OCCURRING ASBESTOS IN GRAVEL                                                                             
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
01/27/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/12       (S)       TRA, JUD                                                                                               
02/23/12       (S)       TRA AT 1:00 PM BUTROVICH 205                                                                           
02/23/12       (S)       Moved CSSB 180(TRA) Out of Committee                                                                   
02/23/12       (S)       MINUTE(TRA)                                                                                            
02/24/12       (S)       TRA RPT CS 3DP     NEW TITLE                                                                           
02/24/12       (S)       DP: KOOKESH, MENARD, THOMAS                                                                            
02/24/12       (S)       FIN REFERRAL ADDED AFTER JUD                                                                           
03/12/12       (S)       JUD AT 12:30 AM BELTZ 105 (TSBldg)                                                                     
03/12/12       (S)       Heard & Held                                                                                           
03/12/12       (S)       MINUTE(JUD)                                                                                            
03/23/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 138                                                                                                                  
SHORT TITLE: THIRD-PARTY CHARGES ON TELEPHONE BILLS                                                                             
SPONSOR(s): SENATOR(s) WIELECHOWSKI, DAVIS, EGAN                                                                                
                                                                                                                                
01/17/12       (S)       PREFILE RELEASED 1/6/12                                                                                
01/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (S)       L&C, JUD                                                                                               
02/02/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/02/12       (S)       Heard & Held                                                                                           
02/02/12       (S)       MINUTE(L&C)                                                                                            
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/12       (S)       Moved CSSB 138(L&C) Out of Committee                                                                   
02/28/12       (S)       MINUTE(L&C)                                                                                            
02/29/12       (S)       L&C RPT CS  3DP 2NR      SAME TITLE                                                                    
02/29/12       (S)       DP: EGAN, DAVIS, PASKVAN                                                                               
02/29/12       (S)       NR: GIESSEL, MENARD                                                                                    
03/23/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
AMY SALTZMAN, Staff                                                                                                             
Senator McGuire                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: On behalf of the sponsor, explained the                                                                   
changes in the CS for SB 210, version D and the proposed                                                                        
amendment to SB 212.                                                                                                            
                                                                                                                                
DAVID SCOTT, Staff                                                                                                              
Senator Donny Olson                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented information on SB 180 on behalf of                                                              
the sponsor.                                                                                                                    
                                                                                                                                
ROGER HEALY, Chief Engineer                                                                                                     
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, AK                                                                                                                      
POSITION STATEMENT: Provided supporting testimony for SB 180.                                                                 
                                                                                                                                
JOE MCLAUGHLIN, MD, State Epidemiologist                                                                                        
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified on SB 180 and stated that there                                                                 
was no safe level of asbestos.                                                                                                  
                                                                                                                                
MORGAN JOHNSON, Mayor                                                                                                           
City of Ambler                                                                                                                  
Ambler, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 180.                                                                           
                                                                                                                                
SCOTT JONES, Vice-Mayor                                                                                                         
City of Ambler                                                                                                                  
Ambler, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 180.                                                                           
                                                                                                                                
ELIZABETH SAAGULIK HENSLEY, Corporate and Public Policy Liaison                                                                 
NANA Regional Corporation                                                                                                       
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 180.                                                                           
                                                                                                                                
LANCE MILLER, Vice President of Resources                                                                                       
NANA Regional Corporation                                                                                                       
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 180.                                                                           
                                                                                                                                
SARITHA ANJILVEL, Assistant Attorney General                                                                                    
Civil Division                                                                                                                  
Department of Law (DOL)                                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Answered questions related to SB 180 as                                                                   
counsel to DOTPF.                                                                                                               
                                                                                                                                
THOMAS PRESLEY, Intern                                                                                                          
Senator Wielechowski                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Introduced SB 138 on behalf of the sponsor.                                                               
                                                                                                                                
MARIE DARLIN                                                                                                                    
AARP                                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 138.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:51 PM                                                                                                                    
CHAIR  HOLLIS   FRENCH  called  the  Senate   Judiciary  Standing                                                             
Committee meeting  to order at 1:31  p.m. Present at the  call to                                                               
order  were Senators  Paskvan,  Coghill,  Wielechowski and  Chair                                                               
French.                                                                                                                         
                                                                                                                                
                SB 200-EYEWITNESSES AND LINEUPS                                                                             
                                                                                                                                
1:33:18 PM                                                                                                                    
CHAIR FRENCH  announced the  consideration of  SB 200,  and asked                                                               
for a  motion to  adopt the  proposed committee  substitute (CS),                                                               
version I.                                                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI moved  to adopt  the work  draft CS  for SB                                                               
200, labeled 27-LS1136\I, as the working document.                                                                              
                                                                                                                                
CHAIR FRENCH,  speaking as  the sponsor of  SB 200,  reviewed the                                                               
changes  made in  the  current  CS. Page  1,  line  12, the  word                                                               
"relevant" was  added to clarify  that only  information relevant                                                               
to  the  situation should  be  collected  in the  statement.  For                                                               
example,  the  weather  conditions   were  not  relevant  if  the                                                               
eyewitness account occurred indoors.  Page 2, lines 9-11, clarify                                                               
that the  admissibility of eyewitness identification  as evidence                                                               
was  not  precluded  by  the   failure  of  an  agency  to  adopt                                                               
procedures  or  satisfy  the requirement  under  subsection  (a).                                                               
Finally,  technical changes  were made  in Section  1, subsection                                                               
(a)(2)   on   page   2,  to   clarify   provisions   about   test                                                               
administrators. Finding no  questions about the CS,  he asked for                                                               
a motion.                                                                                                                       
                                                                                                                                
1:35:05 PM                                                                                                                    
SENATOR WIELECHOWSKI  moved to report  CS for SB 200,  version I,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  FRENCH announced  that  without  objection, CSSB  200(JUD)                                                               
moved from the Senate Judiciary Standing Committee.                                                                             
                                                                                                                                
                 SB 210-CRIMES AGAINST CHILDREN                                                                             
                                                                                                                                
1:35:36 PM                                                                                                                    
CHAIR FRENCH  announced the  consideration of  SB 210,  and asked                                                               
for a  motion to  adopt the  proposed committee  substitute (CS),                                                               
version D.                                                                                                                      
                                                                                                                                
1:35:42 PM                                                                                                                    
SENATOR  WIELECHOWSKI moved  to adopt  the work  draft CS  for SB                                                               
210, labeled 27-LS1362\D, as the working document.                                                                              
                                                                                                                                
CHAIR  FRENCH  announced that  without  objection  version D  was                                                               
before the committee.                                                                                                           
                                                                                                                                
AMY  SALTZMAN,  staff to  Senator  McGuire,  sponsor of  SB  210,                                                               
explained that  version D was  the same  as [version M]  that was                                                               
last before the committee. She  summarized that the bill provides                                                               
harsher penalties  for anyone  that causes  physical injury  to a                                                               
child. Section 1 increases the  protection from under 10 years of                                                               
age to  under 12 years of  age in regard to  third degree assault                                                               
for physical  injury to  a child.  Section 2  provides a  class C                                                               
felony  for  anyone  who  withholds  food  or  water  and  causes                                                               
protracted  harm to  the  child's health.  Section  4 amends  the                                                               
definition of "serious physical injury" to include:                                                                             
                                                                                                                                
     (C) physical injury to a person under 12 years of age                                                                      
     that causes                                                                                                                
          (i) serious disfigurement;                                                                                            
       (ii) impairment of health, by serious bruising or                                                                        
         other injury, that reasonably requires medical                                                                         
     evaluation or                                                                                                              
     treatment by a health care professional;                                                                                   
         (iii) loss or impairment of the function of a                                                                          
     body                                                                                                                       
     member or organ; or                                                                                                        
          (iv) serious impediment of blood circulation or                                                                       
     breathing;                                                                                                                 
                                                                                                                                
MS. SALTZMAN said the sponsor  worked closely with the Department                                                               
of Law (DOL) on the amended definition.                                                                                         
                                                                                                                                
CHAIR FRENCH said the bill was  a good idea, because kids deserve                                                               
this kind of protection.                                                                                                        
                                                                                                                                
1:38:11 PM                                                                                                                    
SENATOR COGHILL  referred to Section  4, page 3, lines  9-10, and                                                               
said  he  wanted  to  make  sure he  understood  the  meaning  of                                                               
"recklessly fails  to provide."  He interpreted  it to  mean that                                                               
someone purposefully withholds food or  drink such that it causes                                                               
physical impairment.                                                                                                            
                                                                                                                                
CHAIR FRENCH said that was his reading.                                                                                         
                                                                                                                                
SENATOR PASKVAN  said he  understood "reckless"  to mean  a gross                                                               
deviation from the normal standard of care for a child.                                                                         
                                                                                                                                
SENATOR COGHILL said he wanted to  make sure this would not catch                                                               
people that had other failures in  their life, but did not intend                                                               
to harm the child.                                                                                                              
                                                                                                                                
CHAIR FRENCH found no further questions and asked for a motion.                                                                 
                                                                                                                                
1:39:41 PM                                                                                                                    
SENATOR WIELECHOWSKI moved to report CS for SB 210 from                                                                         
committee with individual recommendations and attached fiscal                                                                   
note(s).                                                                                                                        
                                                                                                                                
CHAIR FRENCH announced that without objection, CSSB 210(JUD)                                                                    
moved from Senate Judiciary Standing Committee.                                                                                 
                                                                                                                                
              SB 212-HUMAN TRAFFICKING TASK FORCE                                                                           
                                                                                                                                
1:40:02 PM                                                                                                                    
CHAIR FRENCH announced the consideration of SB 212 and noted                                                                    
there was an amendment.                                                                                                         
                                                                                                                                
CHAIR FRENCH moved Amendment 1, labeled 27-LS1370\A.1, and                                                                      
objected for purposes of an explanation.                                                                                        
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR MCGUIRE                                                                 
                                                                                                                                
                                                                                                                                
     Page 1, line 10:                                                                                                           
                                                                                                                                
          Delete "and"                                                                                                          
                                                                                                                                
                                                                                                                                
     Page 1, line 11, following "Services":                                                                                     
                                                                                                                                
          Insert ", and two members, appointed by the                                                                           
                                                                                                                                
       governor, representing nongovernmental health and                                                                        
                                                                                                                                
     social services organizations that provide services to                                                                     
                                                                                                                                
     victims of human trafficking"                                                                                              
                                                                                                                                
                                                                                                                                
     Page 2, line 23, following "The":                                                                                          
                                                                                                                                
          Insert "state agency"                                                                                                 
                                                                                                                                
                                                                                                                                
     Page 2, line 25, following "expenses, of the":                                                                             
                                                                                                                                
          Insert "state agency"                                                                                                 
                                                                                                                                
                                                                                                                                
     Page 2, line 27, following "Services.":                                                                                    
     Insert "The  nongovernmental health and  social service                                                                    
     organizations  whose  members   are  appointed  by  the                                                                    
     governor shall be responsible  for their members' costs                                                                    
     in participating on the task force."                                                                                       
                                                                                                                                
1:40:39 PM                                                                                                                    
AMY  SALTZMAN,  staff to  Senator  McGuire,  sponsor of  SB  212,                                                               
explained that  the amendment  adds two  state agency  members to                                                               
the Human Trafficking Task Force.  The governor would appoint the                                                               
members  who would  represent nongovernmental  organizations that                                                               
work with victims of human trafficking.                                                                                         
                                                                                                                                
CHAIR FRENCH  removed his objection and  announced that Amendment                                                               
1  was adopted.  Finding no  further discussion,  he asked  for a                                                               
motion.                                                                                                                         
                                                                                                                                
1:41:34 PM                                                                                                                    
SENATOR  WIELECHOWSKI  moved report  CS  for  212, version  A  as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR FRENCH announced  that CSSB 212(JUD) moved  from the Senate                                                               
Judiciary Standing Committee.                                                                                                   
                                                                                                                                
At ease from 1:41 p.m. to 1:43 p.m.                                                                                             
                                                                                                                                
         SB 180-NATURALLY OCCURRING ASBESTOS IN GRAVEL                                                                      
                                                                                                                                
1:43:52 PM                                                                                                                    
CHAIR FRENCH announced the consideration  of SB 180 and asked for                                                               
a  motion  to  adopt  the  proposed  committee  substitute  (CS),                                                               
version E.                                                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI moved  to adopt  the work  draft CS  for SB                                                               
180, labeled 27-LS1219\E, as the working document.                                                                              
                                                                                                                                
CHAIR  FRENCH announced  that without  objection,  version E  was                                                               
before the  committee. He asked  Mr. Scott to review  the changes                                                               
made in the CS.                                                                                                                 
                                                                                                                                
1:44:24 PM                                                                                                                    
At ease from 1:44:53 p.m. to 1:45:00 p.m.                                                                                       
                                                                                                                                
DAVID SCOTT,  staff to  Senator Donny Olson,  sponsor of  SB 180,                                                               
explained the following changes:                                                                                                
                                                                                                                                
Page  3,  line 25,  following  "aggregate  material." insert  all                                                               
language to the end of Section 1, page 4, line 4, as follows:                                                                   
                                                                                                                                
     Health  risks  resulting  from asbestos  exposure  vary                                                                    
     according  to   the  level,   type,  and   duration  of                                                                    
     exposure. While  exposure to very  small concentrations                                                                    
     of asbestos may  pose some health risk, there  is not a                                                                    
     practical way  to prevent all exposure  to asbestos for                                                                    
     residents in  close proximity to deposits  that contain                                                                    
     naturally occurring  asbestos. The  intent of  this act                                                                    
     is  to establish  a sensible  analytical threshold  for                                                                    
     detection of naturally occurring  asbestos in gravel or                                                                    
     other aggregate  material and to  establish appropriate                                                                    
     exceptions  for the  use of  gravel or  other aggregate                                                                    
     material  that  contains naturally  occurring  asbestos                                                                    
     for  certain   public  facilities   and  transportation                                                                    
     projects  involving  unusual  circumstances,  including                                                                    
     projects  in  remote  locations  or  in  regions  where                                                                    
     gravel or other aggregate  material free from naturally                                                                    
     occurring asbestos is not reasonably available.                                                                            
                                                                                                                                
Page 6, lines 12-13, insert:                                                                                                    
                                                                                                                                
     (2)   coordinate  with   the   Department  of   Natural                                                                    
     Resources to establish and maintain a database of                                                                          
                                                                                                                                
MR. SCOTT noted that he  also provided additional backup material                                                               
for the bill packets.                                                                                                           
                                                                                                                                
CHAIR FRENCH  expressed concern  about the  reference on  page 4,                                                               
lines 17-18,  and throughout  the bill, to  "content equal  to or                                                               
greater than 0.25 percent naturally  occurring asbestos by mass."                                                               
Initially,  the  bill said,  "less  than  or equal  0.25  percent                                                               
naturally occurring asbestos  by mass." He said he  would look to                                                               
witnesses to  find out how much  gravel varies in the  content of                                                               
naturally  occurring asbestos  (NOA),  and if  a lower-limit  cap                                                               
might be in  order so people would know they  were being directed                                                               
to use gravel with the lowest possible asbestos content.                                                                        
                                                                                                                                
MR. SCOTT  responded that discussions with  other legislators and                                                               
the  administration  indicate  that  0.25 percent  was  "the  new                                                               
zero." He  offered his belief  that it  was an issue  of testing,                                                               
and  deferred  further  explanation to  the  representative  from                                                               
Department of Transportation and Public Facilities (DOTPF).                                                                     
                                                                                                                                
CHAIR FRENCH  listed the  individuals that  signed up  to testify                                                               
and answer questions.                                                                                                           
                                                                                                                                
1:49:21 PM                                                                                                                    
ROGER  HEALY, Chief  Engineer, Department  of Transportation  and                                                               
Public  Facilities   (DOTPF),  explained   that  the   change  in                                                               
definition emulates what  California did in regard to  the use of                                                               
gravel with  naturally occurring asbestos.  That state set  up an                                                               
analytical testing  method called California Air  Resources Board                                                               
(CARB) 435. After a number  of test iterations, the board adopted                                                               
a detection limit  of 0.25 percent by mass, or  1 in 400. Samples                                                               
are analyzed according to certain  points and if 1 asbestos fiber                                                               
is found in 400 points, the  asbestos content is 0.25 percent. If                                                               
there is  not an asbestos  fiber under  one of those  points, the                                                               
material is classifies as non-NOA.                                                                                              
                                                                                                                                
1:51:35 PM                                                                                                                    
CHAIR  FRENCH asked  how many  samples  from a  gravel pit  would                                                               
ensure a good representation.                                                                                                   
                                                                                                                                
MR. HEALY replied the follow-up regulations should address that.                                                                
                                                                                                                                
CHAIR FRENCH asked for a ballpark estimate.                                                                                     
                                                                                                                                
MR. HEALY estimated that DOTPF drilled  12 or more holes on a 3-5                                                               
acre site in the Ambler area.                                                                                                   
                                                                                                                                
1:53:14 PM                                                                                                                    
SENATOR   WIELECHOWSKI  asked   if   DOTPF   takes  or   suggests                                                               
precautions  for people  working with  material that  potentially                                                               
contains asbestos.                                                                                                              
                                                                                                                                
MR.  HEALY  explained  that   working  with  naturally  occurring                                                               
asbestos  was a  different  issue than  asbestos  abatement in  a                                                               
building. Both  Occupational Safety Health  Administration (OSHA)                                                               
and Mining Safety  Health Administration (MSHA) have  a 0.1 fiber                                                               
per cubic centimeter  airborne standard for exposure  to both NOA                                                               
and  asbestos in  a  building.  If DOTPF  is  aware of  naturally                                                               
occurring  asbestos in  an  existing project,  it  will meet  the                                                               
existing airborne standard. Drillers  and anyone operating near a                                                               
crusher  or driving  on the  road  should be  following the  laws                                                               
regarding dust mitigation, he said.                                                                                             
                                                                                                                                
1:56:45 PM                                                                                                                    
CHAIR FRENCH asked if these workers wear respirators.                                                                           
                                                                                                                                
MR. HEALY  replied, "this  would be the  safety component  of the                                                               
contractor, but they should." He added  that dust in general is a                                                               
health issue and anyone on a dusty site should take precautions.                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI   asked  if   he  was  familiar   with  the                                                               
Environmental   Protection  Agency   (EPA)  recommendations   for                                                               
working with naturally occurring asbestos.                                                                                      
                                                                                                                                
MR. HEALY answered  yes; the EPA has recommendations  but not any                                                               
true  direction. For  construction standards  on projects,  DOTPF                                                               
will rely  heavily on the  California restrictions such  as speed                                                               
limits, watering, and a dust mitigation program.                                                                                
                                                                                                                                
CHAIR FRENCH asked  if there was an upper limit  beyond which NOA                                                               
material should not be used.                                                                                                    
                                                                                                                                
MR. HEALY said no, but states have wrestled with the issue.                                                                     
                                                                                                                                
CHAIR  FRENCH asked  what concentrations  of naturally  occurring                                                               
asbestos were in the gravel pits in the Ambler area.                                                                            
                                                                                                                                
2:00:26 PM                                                                                                                    
MR. HEALY  replied the DOTPF  test results were  preliminary, but                                                               
two sites  tested below  0.25 percent by  mass, and  another site                                                               
tested both above and below .25 percent by mass.                                                                                
                                                                                                                                
CHAIR  FRENCH asked  if in  the past  DOTPF had  worked with  the                                                               
provision in subsection  (d) on page 9, lines 13-17.  It says the                                                               
department  may  not  use  material that  contains  equal  to  or                                                               
greater  than   0.25  percent  NOA  unless   it  is  economically                                                               
unreasonable  to undertake  the  project using  material that  is                                                               
free from NOA.                                                                                                                  
                                                                                                                                
MR. HEALY replied DOTPF balances  what is economically reasonable                                                               
on every project.  The focus of the  bill is to allow  the use of                                                               
NOA material  within a project; it  is not to say  that the final                                                               
exposure  will  be  NOA  material. The  assumption  is  that  the                                                               
surface cap will minimize any airborne NOA.                                                                                     
                                                                                                                                
CHAIR  FRENCH  asked  how  DOTPF would  apply  that  standard  in                                                               
building a road.                                                                                                                
                                                                                                                                
MR.  HEALY said  he and  others  would consider  things like  the                                                               
daily  traffic and  maintenance procedures  over the  lifespan of                                                               
the road.                                                                                                                       
                                                                                                                                
CHAIR FRENCH  said it  sounded like capping  material would  be a                                                               
viable option  in Ambler, but  he had not gotten  that impression                                                               
from other conversations.                                                                                                       
                                                                                                                                
MR. HEALY  replied that in  the case of  a gravel road,  he would                                                               
consider the daily traffic and  the maintenance requirements over                                                               
a  20-50 year  lifespan.  If  the operational  intent  was to  do                                                               
seasonal  grading  and the  expected  disturbance  level was  6-9                                                               
inches, a safety factor would be  added to the cap to accommodate                                                               
the  expected activity.  A maintenance  component  would also  be                                                               
contemplated to bring in additional  non-NOA material to build up                                                               
the capping layer as necessary.                                                                                                 
                                                                                                                                
CHAIR FRENCH asked if the use  of a capping material was a viable                                                               
option in Ambler.                                                                                                               
                                                                                                                                
MR. HEALY  said that  from a  health perspective,  the acceptable                                                               
level of  exposure by the public  on a new project  was less than                                                               
0.25 percent by mass.                                                                                                           
                                                                                                                                
CHAIR  FRENCH  commented  that for  all  practical  purposes  the                                                               
acceptable exposure level for the public was zero.                                                                              
                                                                                                                                
MR. HEALY said yes, and DOTPF  found materials in the Ambler area                                                               
that were  less than 0.25  percent by mass. However,  an economic                                                               
component  of  the  project  was  that  the  materials  were  not                                                               
immediately accessible by permanent road.                                                                                       
                                                                                                                                
2:09:06 PM                                                                                                                    
MR. SCOTT added  that NOA containing material  or aggregate would                                                               
only  be  used   if  it  was  economically   unreasonable  to  do                                                               
otherwise.                                                                                                                      
                                                                                                                                
CHAIR FRENCH  said he would like  to discuss the idea  further to                                                               
try to give it "more teeth."                                                                                                    
                                                                                                                                
SENATOR COGHILL  asked what  other potentially  harmful particles                                                               
in dust might have a concentration of 0.25 percent by mass.                                                                     
                                                                                                                                
MR. HEALY deferred the question to Dr. McLaughlin.                                                                              
                                                                                                                                
2:11:33 PM                                                                                                                    
JOE MCLAUGHLIN,  MD, state  epidemiologist, Department  of Health                                                               
and Social  Services (DHSS), said he  was not aware of  any other                                                               
toxin  with  the same  0.25  percent  threshold, but  at  certain                                                               
levels dust  itself was  a human  health concern.  Available data                                                               
indicates that dust  that is 2.5 microns (PM 2.5)  in diameter is                                                               
strongly associated with adverse  health events, such as coronary                                                               
heart and  cerebral vascular  diseases. The  data are  less clear                                                               
for dust particles  that are 10 microns (PM 10)  in diameter, but                                                               
have been associated with adverse health effects.                                                                               
                                                                                                                                
CHAIR FRENCH  asked if 10-micron particulate  matter was actually                                                               
more dangerous than 2.5-micron particulate matter.                                                                              
                                                                                                                                
DR. MCLAUGHLIN  answered yes, because  the smaller  particles can                                                               
travel into the alveoli in the  lung. Material at the PM-10 level                                                               
is courser and often works its  way up the respiratory system and                                                               
is swallowed or spit out.                                                                                                       
                                                                                                                                
CHAIR FRENCH  asked if he  was familiar with the  report prepared                                                               
May 20, 2005 by John P. Middaugh, M.D. and Scott Arnold, Ph.D.                                                                  
                                                                                                                                
DR. MCLAUGHLIN said yes.                                                                                                        
                                                                                                                                
CHAIR FRENCH asked  if that was the most  recent report available                                                               
on asbestos-related diseases in Northwest Alaska.                                                                               
                                                                                                                                
DR.  MCLAUGHLIN  replied  the agency  for  toxic  substances  and                                                               
disease registry (ATSDR) published a  report in June 2007. It was                                                               
a report on an investigation  that ATSDR conducted in August 2005                                                               
in the Ambler area looking  at whether road dust from all-terrain                                                               
vehicles (ATVs) exposed  riders and walkers to  harmful levels of                                                               
asbestos. The final  report concluded that: 1)the  dust levels in                                                               
Ambler  were  a  public  health  hazard  for  the  community;  2)                                                               
asbestos levels resulting from riding  an ATV on the gravel roads                                                               
posed an  unacceptable public health  risk; and 3)  most asbestos                                                               
fibers  found  in  Ambler  were  shorter  in  length.  The  final                                                               
recommendations were  to: 1) close  access to the gravel  pit; 2)                                                               
stop using  gravel from  the pit;  3) place  a barrier  and clean                                                               
fill where children may have  contact with contaminated soil; and                                                               
4) educate the community about asbestos and dust.                                                                               
                                                                                                                                
CHAIR  FRENCH asked  Dr. McLaughlin  to send  him a  copy of  the                                                               
report.                                                                                                                         
                                                                                                                                
DR. MCLAUGHLIN agreed.                                                                                                          
                                                                                                                                
2:16:23 PM                                                                                                                    
SENATOR WIELECHOWSKI referred  to the third bullet  point on page                                                               
2 of  the May  20, 2005 report,  and asked the  name of  the DHSS                                                               
epidemiologist who visited Maniilaq.                                                                                            
                                                                                                                                
DR.  MCLAUGHLIN  recalled that  it  was  Dr. Marc  Chimonas,  and                                                               
offered to  follow up if  that was  incorrect. He added  that Dr.                                                               
Chimonas  worked with  DHSS but  was  from the  U.S. Centers  for                                                               
Disease Control and Prevention.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI reviewed the  chest x-ray and pleural change                                                               
data in  the second  bullet point  and asked  how it  compared to                                                               
national or statewide averages.                                                                                                 
                                                                                                                                
DR. MCLAUGHLIN offered to follow up with the information.                                                                       
                                                                                                                                
2:18:37 PM                                                                                                                    
MORGAN  JOHNSON, Mayor,  City of  Ambler, Ambler,  AK, urged  the                                                               
committee to pass SB 180 with the 0.25 percent NOA threshold.                                                                   
                                                                                                                                
2:20:20 PM                                                                                                                    
SCOTT JONES,  Vice-Mayor, City of  Ambler, Ambler,  AK, confirmed                                                               
that dust  was a problem in  Ambler when conditions were  dry. In                                                               
fact,  the 2005  report  said  it was  difficult  to measure  the                                                               
asbestos  levels because  of the  dust.  He described  palliative                                                               
measures  to control  dust and  said masks  and respirators  were                                                               
commonly  used. Referring  to the  chest x-ray  data in  the 2005                                                               
report, he said it did not  take into consideration the number of                                                               
smokers. He reviewed the existing  gravel pits in the Ambler area                                                               
and asked the committee to set  the standard so that 0.25 percent                                                               
was equivalent to zero contamination.                                                                                           
                                                                                                                                
CHAIR FRENCH  asked how many  of the projects that  Ambler needed                                                               
were roads and how many were non-roads.                                                                                         
                                                                                                                                
MR.  JONES replied  most  of the  pending  projects need  gravel.                                                               
These include  foundations for  houses, capping  the road  to the                                                               
gravel pit, erosion  control, and the Grizzly Bridge  and road to                                                               
the airport.                                                                                                                    
                                                                                                                                
CHAIR FRENCH restated the question.                                                                                             
                                                                                                                                
MR.  JONES estimated  that more  than half  of the  projects were                                                               
road-related.                                                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if it  was typically  very windy  in                                                               
Ambler.                                                                                                                         
                                                                                                                                
MR. JONES replied it could be very windy at times.                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI  asked if it  might be  a problem to  have a                                                               
gravel  pit   near  town  that  generated   dust  that  contained                                                               
asbestos.                                                                                                                       
                                                                                                                                
MR. JONES  replied the gravel  pit caused minor  problems because                                                               
the area  was not silty.  The road to  the airport was  much more                                                               
problematic,  because  the crush  and  fill  material was  mostly                                                               
silt.  In conclusion,  he reiterated  the importance  of adopting                                                               
the 0.25 percent standard as equivalent to zero contamination.                                                                  
                                                                                                                                
CHAIR FRENCH pointed out that  the original bill set the standard                                                               
at equal  to or less  than 0.25  percent and the  current version                                                               
said equal  to or more  than 0.25 percent, which  was appreciably                                                               
higher.                                                                                                                         
                                                                                                                                
MR. JONES said he had lived in  Ambler for four years and had yet                                                               
to see any asbestos-related health problems.                                                                                    
                                                                                                                                
CHAIR FRENCH  pointed out  page two  of the  report said,  "Of 28                                                               
residents  of Ambler  whose  chest x-rays  were  reviewed, 2  had                                                               
pleural changes  that were probably  caused by prior  exposure to                                                               
asbestos."                                                                                                                      
                                                                                                                                
MAYOR  JOHNSON said  he would  like  to see  more dust  abatement                                                               
measures  to protect  current and  future  generations. He  added                                                               
that Ambler had an opportunity if a nearby mine were to open.                                                                   
                                                                                                                                
2:32:15 PM                                                                                                                    
ELIZABETH SAAGULIK HENSLEY, Corporate  and Public Policy Liaison,                                                               
NANA  Regional  Corporation,  stated  support  for  SB  180.  She                                                               
highlighted that NANA closed the  gravel pit after becoming aware                                                               
in 2003 that  the gravel contained NOA. NANA was  also aware that                                                               
there were  ways to work  with the gravel and  mitigate potential                                                               
risks, and they were willing to do that.                                                                                        
                                                                                                                                
2:33:55 PM                                                                                                                    
LANCE  MILLER,   Vice  President  of  Resources,   NANA  Regional                                                               
Corporation, said that  in the discussion about dust  and the use                                                               
of gravel  that contains  NOA, it was  important to  realize that                                                               
Ambler was  under snow  for a significant  number of  months each                                                               
year. He  said NANA would  be willing  to change the  upper limit                                                               
and  perhaps the  lower percentage  if that  would help  move the                                                               
bill along. He  said it was important to remember  that El Dorado                                                               
County  California successfully  addressed  the  issue and  those                                                               
asbestos levels  were higher than  typically found in  the Ambler                                                               
area.  There are  ways to  mitigate  the asbestos  with SOPs  and                                                               
proper  protections for  workers  and  construction projects,  he                                                               
stated.                                                                                                                         
                                                                                                                                
CHAIR FRENCH pointed out that  the California Air Resources Board                                                               
took  steps to  mitigate the  use of  NOA and  set the  allowable                                                               
level at less  than 0.25 percent. He said  another difference was                                                               
that California did  not offer the immunity that  SB 180 offered.                                                               
The  immunity  provision  was  a  central  concern  of  the  bill                                                               
proponents and that was why  the committee was wrestling with it,                                                               
he said.                                                                                                                        
                                                                                                                                
He  asked Ms.  Hensley  if  she had  considered  saying that  the                                                               
gravel should contain no more than 0.5 percent NOA.                                                                             
                                                                                                                                
MS. HENSLEY replied NANA would consider a different level.                                                                      
                                                                                                                                
MR. MILLER said NANA would have to think hard about 0.5 percent.                                                                
                                                                                                                                
CHAIR FRENCH  urged them to  think about some  compromise because                                                               
0.25 or greater did not have an upper limit.                                                                                    
                                                                                                                                
MR. MILLER  said NANA  would agree  to an  upper limit.  He added                                                               
that a lot of  the material in the area was in  the 0.1, 0.25, to                                                               
0.5 range, and California recognized 0.25 percent as NOA free.                                                                  
                                                                                                                                
SENATOR  COGHILL  said he  understood  the  bill  to say  that  a                                                               
certified plan  would be required  when NOA levels were  equal to                                                               
or greater  than 0.25  percent. He surmised  that the  higher the                                                               
level of NOA, the tighter the plan would be.                                                                                    
                                                                                                                                
MR. SCOTT agreed.                                                                                                               
                                                                                                                                
CHAIR FRENCH referred  to page 4, line 17, and  asked if the bill                                                               
offered immunity when the gravel  or other aggregate material had                                                               
equal  to  or  greater  than  0.25  percent  naturally  occurring                                                               
asbestos by mass.                                                                                                               
                                                                                                                                
MR. SCOTT said yes.                                                                                                             
                                                                                                                                
CHAIR  FRENCH pointed  out  that, as  written,  the bill  offered                                                               
immunity  if the  level  was  0.5 percent,  1.0  percent, or  5.0                                                               
percent NOA.                                                                                                                    
                                                                                                                                
SENATOR COGHILL offered his understanding  that the plan differed                                                               
based on the level of NOA in the aggregate material.                                                                            
                                                                                                                                
CHAIR FRENCH asked Ms. Anjilvel to comment.                                                                                     
                                                                                                                                
2:41:35 PM                                                                                                                    
SARITHA  ANJILVEL, Assistant  Attorney  General, Civil  Division,                                                               
Department  of  Law  (DOL),  said she  was  advising  DOTPF.  She                                                               
offered  her understanding  that regulations  prescribe for  each                                                               
project a site-specific plan that  takes into account the amounts                                                               
of naturally occurring asbestos.                                                                                                
                                                                                                                                
CHAIR   FRENCH  asked   if  the   bill,  as   currently  drafted,                                                               
established an upper limit of NOA that the gravel could contain.                                                                
                                                                                                                                
MS. ANJILVEL answered no.                                                                                                       
                                                                                                                                
CHAIR  FRENCH  observed that  the  bill  could potentially  offer                                                               
immunity  to  people  who  use aggregate  that  had  two  percent                                                               
naturally occurring asbestos.                                                                                                   
                                                                                                                                
MS.  ANJILVEL   replied  that  was   the  correct   reading,  but                                                               
regulations  could be  promulgated to  require the  site-specific                                                               
plan  to   balance  the  use   of  gravel  that   contained  high                                                               
concentrations of NOA against how  economically reasonable it was                                                               
to go elsewhere to find gravel.                                                                                                 
                                                                                                                                
CHAIR FRENCH  asked if  there was  a definition  of "economically                                                               
unreasonable."                                                                                                                  
                                                                                                                                
MS. ANJILVEL  answered no, but  DOTPF as accustomed to  using the                                                               
concept, as it related to doing  projects in the best interest of                                                               
the state.  A complicating factor  was that because there  was no                                                               
safe level  of asbestos,  DOTPF had to  strike a  balance between                                                               
getting the  project done  and any potential  risk. As  Mr. Healy                                                               
testified,  taking  proper   mitigation  procedures  struck  that                                                               
balance. The more likely the asbestos  was to cause a hazard, the                                                               
more  DOTPF  would  scrutinize  the  project to  see  if  it  was                                                               
economically reasonable to use that material.                                                                                   
                                                                                                                                
2:45:41 PM                                                                                                                    
CHAIR FRENCH commented  that DOTPF would probably  work harder if                                                               
they were potentially liable.                                                                                                   
                                                                                                                                
MS. ANJILVEL agreed that immunity removed a protection.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI asked  if she believed that  it was possible                                                               
to make the use of NOA safe for everyone involved.                                                                              
                                                                                                                                
MS. ANJILVEL replied she did not have the expertise to answer.                                                                  
                                                                                                                                
2:46:50 PM                                                                                                                    
CHAIR  FRENCH  closed  public  testimony   and  held  SB  180  in                                                               
committee.                                                                                                                      
                                                                                                                                
         SB 138-THIRD-PARTY CHARGES ON TELEPHONE BILLS                                                                      
                                                                                                                                
2:47:12 PM                                                                                                                    
CHAIR  FRENCH  announced  the  consideration  of  SB  138.  [CSSB                                                               
138(L&C) was before the committee.]                                                                                             
                                                                                                                                
2:47:21 PM                                                                                                                    
SENATOR WIELECHOWSKI,  sponsor of  SB 138,  said this  bill dealt                                                               
with  "telephone  cramming," which  as  the  practice of  placing                                                               
unauthorized, third-party charges on  telephone bills. This was a                                                               
multi-billion-dollar  problem,  and  the federal  government  had                                                               
started to take notice.                                                                                                         
                                                                                                                                
CHAIR  FRENCH   said  that  because  of   time  constraints,  the                                                               
committee would hear most public testimony on Monday.                                                                           
                                                                                                                                
2:50:12 PM                                                                                                                    
                                                                                                                                
THOMAS  PRESLEY, intern  for Senator  Wielechowski,  said SB  138                                                               
bans  the  practice of  cramming,  which  is adding  unauthorized                                                               
third-party charges  to consumers' telephone bills.  He explained                                                               
that  cramming  began  in  the   1990s,  and  was  an  unintended                                                               
consequence of  regulatory action that opened  telephone bills to                                                               
other  charges.  Following  a  spike  in  complaints,  regulatory                                                               
agencies opted for a voluntary  approach to end the practice, but                                                               
current  evidence  indicates  that  telecommunications  companies                                                               
place   approximately   300   million  third-party   charges   on                                                               
customers' telephone  bills, equaling  over $2 billion  per year.                                                               
In one  example, a woman who  disputed charges on her  phone bill                                                               
was  told that  her husband  authorized the  service, but  he had                                                               
been dead for 13 years.                                                                                                         
                                                                                                                                
MR. PRESLEY said  that cramming occurs by  never interacting with                                                               
customers  or  by  using  abusive  marketing  techniques  to  get                                                               
customers' telephone  numbers. The  consumer's phone  number then                                                               
becomes a form of tacit authorization.                                                                                          
                                                                                                                                
He said that charges for  satellite TV and long distance coverage                                                               
are  legitimate,  and  these   services  contract  directly  with                                                               
telephone companies.  The process  for contracting  cram services                                                               
onto  bills  is  different.  Of   500  people  who  responded  to                                                               
inquiries  about  cramming  charges,   not  a  single  person  or                                                               
business had  authorized the charges. Unauthorized  charges occur                                                               
for   bank  vaults,   elevators,   911   systems,  fire   alarms,                                                               
governmental  agencies and  schools.  Obvious examples  are of  a                                                               
modem incurring charges  for voice mail and of  an emergency line                                                               
incurring charges for online diet services.                                                                                     
                                                                                                                                
MR. PRESLEY  said a  telephone auditing  company found  more than                                                               
800  third-party vendors  placed  unauthorized  charges on  their                                                               
clients'  telephone bills.  Consumers described  their experience                                                               
using   words  like   fraud,  theft   and  stealing.   A  Federal                                                               
Communications Commission  (FCC) graphic indicated that  15 to 20                                                               
million  American  households  receive   cram  charges  on  their                                                               
landline bills  each year, but only  1 in 20 customers  are aware                                                               
of the charges.                                                                                                                 
                                                                                                                                
MR. PRESLEY presented  a graphic to illustrate  the complexity of                                                               
cramming  charges. One  third-party vendor,  My S&S,  showed only                                                               
975 unique  numbers dialed  into its voice  mail service,  yet it                                                               
was charging at  least 97,000 customers for  the service. Another                                                               
third-party vender enrolled 64,000  telephone customers in an on-                                                               
line  photo storage  service,  yet  less than  2  percent of  the                                                               
customers  took advantage  of the  service. In  another instance,                                                               
U.S. Senate  committee staff was the  first to log onto  a casual                                                               
gaming service  offered by  Easy Phone  Bill, despite  its having                                                               
enrolled more than  20,000 customers and having  earned almost $1                                                               
million.                                                                                                                        
                                                                                                                                
He  explained  that  hub  companies  subcontract  enrollment  and                                                               
authorizations. The  hub companies receive the  phone numbers and                                                               
pass  them  along  to  billing  aggregators  through  third-party                                                               
vendors,  and  the  charges are  forwarded  to  telephone  bills.                                                               
Third-party  vendors offer  services like  electronic fax,  photo                                                               
storage,  and  online  backup.  To gain  access  to  bills,  they                                                               
contract  with billing  aggregators. Despite  their offers,  many                                                               
third-party   vendors   are   actually  front   companies.   This                                                               
relationship allows  hub companies to shift  enrollments to other                                                               
vendors to mask large numbers  of complaints. Billing aggregators                                                               
act  as intermediaries  between phone  companies and  third-party                                                               
vendors.                                                                                                                        
                                                                                                                                
A hub company  called DaData claimed to  provide support services                                                               
to  40  third-party  vendors, but  eventually  admitted  that  it                                                               
controlled  the  actual  electronic  fax service  offered  by  25                                                               
clients.  He provided  a  list  of the  45  companies that  offer                                                               
electronic fax service  yet appear to be  operated exclusively by                                                               
DaData.                                                                                                                         
                                                                                                                                
He said  the U.S. Senate  staff interviewed the president  of WVM                                                               
Network who admitted  that he "only signed his  name to documents                                                               
and knew  nothing about the  company." Having a hub  company with                                                               
smaller entities beneath it makes  it easy to shift the complaint                                                               
threshold and difficult to track, dispute and remove charges.                                                                   
                                                                                                                                
MR. PRESLEY  reiterated that disputing cram  charges is difficult                                                               
and costly.  One retail chain  reported $550,000  in unauthorized                                                               
charges on its  telephone bills over the past  decade and another                                                               
estimated  it spent  $400,000  battling unauthorized  third-party                                                               
charges. One  customer said each  of the five times  that charges                                                               
were added to  his bill it took  at least a half hour  to get the                                                               
services removed.                                                                                                               
                                                                                                                                
MR. PRESLEY  said Section 1 of  SB 138 enforces truth  in billing                                                               
guidelines.   It   requires   carriers   to   disclose   detailed                                                               
information on  bills, precludes carriers from  billing customers                                                               
without including details of third-party  services, and forbids a                                                               
carrier  from discontinuing  service  to customers  that use  the                                                               
contact information  to dispute  or contest  a charge.  Section 2                                                               
adds  a paragraph  to the  list  of unlawful  acts and  practices                                                               
under the Consumer  Protection statutes. Section 3  creates a new                                                               
section that precludes a carrier  from billing for another vendor                                                               
without express  authorization. Section  4 adds the  new unlawful                                                               
act or practice  from Section 2 to the  exclusive jurisdiction of                                                               
the state, a regulatory board or a commission.                                                                                  
                                                                                                                                
MR. PRESLEY said recent events  include that Verizon two days ago                                                               
announced  it  would  discontinue charging  third-party  enhanced                                                               
billing services  to phone bills.  Senator Rockefeller  from West                                                               
Virginia said he  would introduce federal legislation  to ban all                                                               
third-party  billing  on  phone  bills.  Illinois  two  days  ago                                                               
unanimously passed  a total ban  on third-party billing.  He said                                                               
this   is   different  from   SB   138,   which  allows   express                                                               
authorization of third-party services.                                                                                          
                                                                                                                                
MR. PRESLEY  said that the  recent opposition letter  from Alaska                                                               
Communication  Services (ACS)  specifically  complains about  the                                                               
possibility of customers short  paying disputed charges. However,                                                               
all  local  exchange  carriers operate  under  truth  in  billing                                                               
guidelines  so there  is no  opportunity to  shortchange a  local                                                               
carrier by not paying an unauthorized charge.                                                                                   
                                                                                                                                
3:00:30 PM                                                                                                                    
MARIE DARLIN, AARP, stated that  AARP supports SB 138, a consumer                                                               
protection bill  that addresses the deceptive  marketing practice                                                               
of cramming. She  noted that AARP submitted  written testimony to                                                               
the previous committee and a letter would be forthcoming to this                                                                
committee.                                                                                                                      
                                                                                                                                
3:02:09 PM                                                                                                                    
CHAIR FRENCH announced he would hold SB 138 in committee.                                                                       
                                                                                                                                
3:02:15 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair French adjourned the Senate Judiciary Standing Committee                                                                  
meeting at 3:02 p.m.                                                                                                            

Document Name Date/Time Subjects
SJR 19 Sponsor Statement.pdf SJUD 3/23/2012 1:30:00 PM
SJR 19
SJR 19 Map of Judicial Districts.pdf SJUD 3/23/2012 1:30:00 PM
SJR 19
SJR 19 Article VI, Section 8 vs SJR 19 Table.pdf SJUD 3/23/2012 1:30:00 PM
SJR 19
SB138-Sponsor statement.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138-Sectional Analysis.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138-Fact Sheet.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138-Exhibit II -Sample Residential Bill.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138-Exhibit II - Sample Enterprise Bill.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138 letter of support.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB138 backup material- US Senate Committee Findings.PDF SJUD 3/23/2012 1:30:00 PM
SB 138
SB138 Back up material-7.13.11 Testimony of Elliot Burg and VT Cramming Bill.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB 180 - Leg Research.PDF SJUD 3/23/2012 1:30:00 PM
SB 180
SB 180 Public Health Report.pdf SJUD 3/23/2012 1:30:00 PM
SB 180
SB 180 - vE.PDF SJUD 3/23/2012 1:30:00 PM
SB 180
SB 180 version E - explanation of changes.docx SJUD 3/23/2012 1:30:00 PM
SB 180
SB 138 Letter ACS 03.22.12.pdf SJUD 3/23/2012 1:30:00 PM
SB 138
SB 138 Final_Signed_Comments_to_FCC.pdf SJUD 3/23/2012 1:30:00 PM
SB 138