SB 138-THIRD-PARTY CHARGES ON TELEPHONE BILLS  1:35:55 PM CHAIR EGAN announced the consideration of SB 138. SENATOR BILL WIELECHOWSKI, sponsor of SB 138, noted that he had worked on a committee substitute (CS) with the billing service group and the Department of Law and Thomas Presley, his intern, would explain the changes. 1:36:37 PM SENATOR PASKVAN moved to bring CSSB 138( ), version 27-LS1002\R, before the committee for discussion purposes. There were no objections, and it was so ordered. THOMAS PRESLEY, Intern for Senator Wielechowski, said version R reflects input from the last hearing on SB 138. It has an updated zero fiscal note from the Regulatory Commission of Alaska (RCA). The changes in version R are as follows: Section 1: the definition for telecommunications carrier was limited to a single definition. Previously this definition read "those who are eligible for universal service funds." This change was made because previous language captured wireless carriers, which is not the intent of SB 138. Section 3: (d), which gave regulation making authority to the RCA, was removed and placed into Section 1. This was done because the RCA's jurisdiction is defined by AS 42.05 and sections 2 - 4 of the bill are written into consumer protection statutes. Section 3: (c) the exceptions language was cleaned up on advice from the RCA attorney, Stuart Goering, because it was redundant. Section 3: subsection (c)(4)(A) incorporates suggestions from the billing services group in order to clarify how express authorization is obtained and verified. Section 3: (d) defines billing agent and express authorization. Section 3: (d) (3) makes the definition of "telecommunications carrier" inclusive of land line telephone bills only. Previously the definitions unintentionally captured wireless carriers. 1:39:45 PM SENATOR GIESSEL asked if the concept of cramming is a problem with cell phones. MR. PRESLEY replied that evidence presented in the U.S. Senate Committee report shows that there is a growing concern that wireless telephone bills may also be subject to unauthorized charges, but the Federal Communication Commission (FCC) and draft legislation in other states is only focused on land line telephone bills. Cell phone bills have different regulations and wireless carriers are regulated by different entities; their third-party billing platforms work differently, as well. SENATOR GIESSEL asked if the Federal Trade Commission (FTC) was addressing this issue, too. MR. PRESLEY replied that was correct. The FCC has the open docket related to land line telephone bills. They took comments on wireless carriers in their notice of proposed rulemaking and that's when it became an issue. The docket, itself, does not address policies to eliminate wireless cramming. SENATOR GIESSEL asked about the Federal Trade Commission (FTC). MR. PRESLEY replied that the FTC has only pursued cases against land line telephone billers that have been accused and found guilty of third-party telephone cramming for land line carriers. CHAIR EGAN commented that he appreciated the changes made to this bill, but he thought another committee substitute would be needed in a couple of years to address cell phones because their use is expanding so rapidly. SENATOR WIELECHOWSKI said his understanding of the law is that the state can only capture cell phones for certain parts of Alaska for all telecommunication carriers. MR. PRESLEY said those wireless carriers are called carriers of last resort in case Bush Alaska does not have a land line telephone carrier that can reach them. In that case, the RCA would have jurisdiction over wireless telephones that would be used. CHAIR EGAN asked if that meant they were their only means of communication. MR. PRESLEY answered, "correct." 1:42:40 PM SENATOR PASKVAN moved to report CSSB 138(L&C), version R, from committee with individual recommendations and newly revised fiscal note. There being no objection, the motion carried.