Legislature(2025 - 2026)GRUENBERG 120

02/24/2025 01:00 PM House JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 101 CRIMES AGAINST MINORS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ HB 106 THEFT: ORGANIZED; MED. RECORDS; MAIL TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 106-THEFT: ORGANIZED; MED. RECORDS; MAIL                                                                       
                                                                                                                                
[Contains discussion of HB 77.]                                                                                                 
                                                                                                                                
1:16:00 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  announced that the  final order of business  would be                                                               
HOUSE  BILL  NO.  106,  "An  Act  relating  to  organized  theft;                                                               
relating  to theft  of medical  records and  medical information;                                                               
relating to mail theft; and providing for an effective date."                                                                   
                                                                                                                                
1:16:42 PM                                                                                                                    
                                                                                                                                
JOHN SKIDMORE,  Deputy Attorney General,  Office of  the Attorney                                                               
General, Department  of Law (DOL),  on behalf of the  House Rules                                                               
Standing  Committee,   sponsor  by   request  of   the  governor,                                                               
presented  HB  106.    He   gave  an  overview  of  the  proposed                                                               
legislation  and  background  on organized  retail  theft  (ORT),                                                               
which is  the theft  of merchandize  that is  subsequently resold                                                               
for profit.   He paraphrased the transmittal  letter [included in                                                               
the   committee  packet],   which  read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Under the authority  of Article III, Section  18 of the                                                                    
     Alaska   Constitution,  I   am   transmitting  a   bill                                                                    
     addressing organized  theft, mail theft, and  the theft                                                                    
     of medical records and  medical information. The impact                                                                    
     of property  theft on individuals, businesses,  and the                                                                    
     community  is often  underrated. When  theft occurs  in                                                                    
     retail establishments, it can,  over time, total in the                                                                    
     millions of dollars. These costs  can make it difficult                                                                    
     to do business and, many  times, are passed down to the                                                                    
     paying  consumer. Alaska  needs to  do more  to address                                                                    
     this conduct.  Accordingly, this  bill creates  the new                                                                    
     crime  of organized  theft,  which will  be  a class  A                                                                    
     felony. Organized  theft will target  those individuals                                                                    
     who coordinate  with a group  of three or  more persons                                                                    
     to commit  felony level  thefts. These  individuals are                                                                    
     operating  on a  larger  scale and  the penalty  should                                                                    
     reflect   the  massive   damage  they   cause  to   our                                                                    
     communities.                                                                                                               
                                                                                                                                
     The  bill also  establishes  the crime  of mail  theft,                                                                    
     which can  lead to  identity theft, credit  card fraud,                                                                    
     and  the  loss  of  valuables.  Because  Alaska  relies                                                                    
     heavily on  mail service, we  should not  depend solely                                                                    
     on  federal  prosecution  to  address  this  widespread                                                                    
     problem.                                                                                                                   
                                                                                                                                
     Finally,  the  bill  classifies the  theft  of  medical                                                                    
     records  or medical  information as  a class  C felony.                                                                    
     Just   as  current   law  protects   credit  cards   an                                                                    
     identification  documents,   it  should   also  protect                                                                    
     sensitive medical information from misuse.                                                                                 
                                                                                                                                
     By closing  these gaps in  current law, this  bill will                                                                    
     strengthen  our ability  to address  crimes that  wreak                                                                    
          havoc on our communities. I urge your prompt                                                                          
     consideration of this legislation.                                                                                         
                                                                                                                                
1:26:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP inquired as to  the differences between HB 77                                                               
and HB  106.    He stated that HB  77 would give  prosecutors the                                                               
authority to  charge mail theft with  a Class C felony  and asked                                                               
whether that would conflict with HB 106.                                                                                        
                                                                                                                                
MR. SKIDMORE stated  that HB 77 would add mail  theft to theft in                                                               
the  second  degree,  which  is   a  Class  C  felony.    Another                                                               
significant difference  is that HB  77 defines mail  as something                                                               
that's delivered through the United  States Postal Service (USPS)                                                               
or by  a private mail delivery  company, such as FedEx  or United                                                               
Parcel Service (UPS).   In contrast, HB 106 does  not include the                                                               
private mail delivery  companies and only accounts  for the items                                                               
stolen from a  person's mailbox.  Under HB 106,  items taken from                                                               
someone's  porch would  be considered  regular  theft and  valued                                                               
accordingly.                                                                                                                    
                                                                                                                                
1:29:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP asserted  that ORT  should be  classified as                                                               
felony  conduct  and  reasoned  that   it  could  be  used  as  a                                                               
prosecutorial tool.                                                                                                             
                                                                                                                                
MR.  SKIDMORE  explained  that  if  three  or  more  people  were                                                               
stealing items  from a  delivery truck more  than once,  it would                                                               
fall within the definition of ORT,  and the bill would allow this                                                               
conduct to be  prosecuted with a Class A  felony.  Alternatively,                                                               
mail theft in  HB 106 is designed to address  the act of stealing                                                               
mail  that would  not amount  to a  high dollar  figure out  of a                                                               
mailbox.    It   would  penalize  mail  theft  with   a  Class  A                                                               
misdemeanor  and  up  to  one  year  in  jail  depending  on  the                                                               
offender's history and the type of stolen material.                                                                             
                                                                                                                                
1:33:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE  sought  further  information  on  the  ORT                                                               
community and the types of crimes they are committing.                                                                          
                                                                                                                                
MR. SKIDMORE  said it depends on  the organization.  The  bill is                                                               
focused  on  any   group  of  individuals  that   plan  to  steal                                                               
significant  quantities of  merchandise for  monetary gain.   The                                                               
premise of  ORT is  based on organized  activity that  presents a                                                               
pattern of  behavior from multiple  people and may  be associated                                                               
with violence.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  VANCE  asked  whether  the  bill  covers  private                                                               
property crimes committed by a group of individuals.                                                                            
                                                                                                                                
MR. SKIDMORE  answered yes,  if the group  is coordinated  and it                                                               
occurs on more than once occasion.                                                                                              
                                                                                                                                
REPRESENTATIVE VANCE referred to page  2, line 20, and questioned                                                               
the definition of "access device.                                                                                               
                                                                                                                                
MR. SKIDMORE  cited AS 11.81.900,  which defines  "access device"                                                               
as a document,  card, or something with a  unique identifier that                                                               
allows access  to certain  accounts, such as  a credit  card, for                                                               
example.                                                                                                                        
                                                                                                                                
1:39:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE asked how AS  11.46 interfaces with Alaska's                                                               
privacy rights.                                                                                                                 
                                                                                                                                
MR.  SKIDMORE said  they  are correlated,  as  an access  device,                                                               
identification  documents, and  medical  records  would enable  a                                                               
person to engage in identity theft.                                                                                             
                                                                                                                                
REPRESENTATIVE VANCE asked  at what point is  mail considered the                                                               
recipient's property.                                                                                                           
                                                                                                                                
MR. SKIDMORE  shared his  understanding that a  piece of  mail is                                                               
the  recipient's property  from the  time it's  addressed by  the                                                               
sender.  While  in transit, it's in the care  and custody of USPS                                                               
and cannot be stolen without committing this crime.                                                                             
                                                                                                                                
1:47:15 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  returned to Section 1  of the bill and  asked why the                                                               
threshold was set  at three people.  He asked  whether two people                                                               
working together could constitute an effort to commit ORT.                                                                      
                                                                                                                                
MR.  SKIDMORE  explained  that three  people  differentiates  the                                                               
standard principle  of accomplice  liability that exists  for two                                                               
people.    He  further  explained  that  an  individual  stealing                                                               
$10,000  from  five or  more  people  is considered  scheming  to                                                               
defraud in Alaska statutes.  The  bill, he said, assumes a larger                                                               
coordinated effort to justify the higher penalty.                                                                               
                                                                                                                                
CHAIR  GRAY argued  that organized  theft involving  three people                                                               
would not necessarily create a business model.                                                                                  
                                                                                                                                
MR. SKIDMORE  disagreed.   He contended that  when three  or more                                                               
people steal  on more  than one occasion,  it does  establish the                                                               
creation of a business model;  however, the sentencing would need                                                               
to be determined by the court.                                                                                                  
                                                                                                                                
1:53:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  asked about  the statute of  limitations for                                                               
ORT.                                                                                                                            
                                                                                                                                
MR. SKIDMORE  acknowledged that the statute  of limitations would                                                               
apply to  ORT, in  addition to  AS 11.46.980(e),  which addresses                                                               
aggregation that occurs  within six months.  He  offered that the                                                               
legislature could  add a  time limit to  the provision  for extra                                                               
precaution;  however, he  reiterated his  understanding that  two                                                               
incidents that  occurred twenty years  apart, for  example, could                                                               
not be tied  together.  Beyond that, double  jeopardy prohibits a                                                               
previous conviction from being used towards another charge.                                                                     
                                                                                                                                
1:56:40 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY considered  a scenario in which  three teenagers stole                                                               
from  two separate  Best Buy  stores in  the same  day and  asked                                                               
whether it would qualify.                                                                                                       
                                                                                                                                
MR.  SKIDMORE said  he  had  seen instances  in  which the  court                                                               
describes that scenario  as a single course  of conduct; however,                                                               
each determination is "very fact driven."                                                                                       
                                                                                                                                
1:58:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA  asked for  the definition  of "coordination"                                                               
in this context.                                                                                                                
                                                                                                                                
MR. SKIDMORE  explained "coordination" as people  coming together                                                               
for a  common scheme or plan.   He shared an  example, indicating                                                               
that physical  presence isn't always  necessary in  a coordinated                                                               
effort.                                                                                                                         
                                                                                                                                
1:59:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE UNDERWOOD  asked how a group  of individuals would                                                               
be charged with ORT.                                                                                                            
                                                                                                                                
MR.  SKIDMORE responded  that each  individual  would be  charged                                                               
with individual  theft, which  could be  aggravated if  they were                                                               
involved  in multiple  thefts; however,  under  current law,  the                                                               
conduct  cannot   not  be  elevated  to   capture  the  organized                                                               
"business model" component.                                                                                                     
                                                                                                                                
CHAIR  GRAY referred  to  Section  3 and  asked  whether the  law                                                               
differentiates the type of mail that's stolen.                                                                                  
                                                                                                                                
MR. SKIDMORE explained  that there would be  a difference between                                                               
bills,  which  have no  monetary  value,  and checks;  otherwise,                                                               
"mail is mail whether it's junk or not."                                                                                        
                                                                                                                                
CHAIR  GRAY asked  whether  Section  2 would  apply  to a  stolen                                                               
prescription or medical bill with personal information.                                                                         
                                                                                                                                
MR. SKIDMORE answered yes.                                                                                                      
                                                                                                                                
CHAIR  GRAY asked  whether  the bill  would  apply to  electronic                                                               
medical information as well.                                                                                                    
                                                                                                                                
MR. SKIDMORE answered yes.                                                                                                      
                                                                                                                                
2:03:48 PM                                                                                                                    
                                                                                                                                
[HB 106 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB 106 Transmittal Letter version A.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 Sectional Analysis version A.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN Public Defender.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN Public Advocacy.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN DPS.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN Law.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN DOC.pdf HJUD 2/24/2025 1:00:00 PM
HB 106
HB 106 FN Courts.pdf HJUD 2/24/2025 1:00:00 PM
HB 106