05/03/1996 10:15 AM Senate FIN

       SENATE CS FOR CS FOR HOUSE BILL NO. 109(FIN)                            
       "An   Act   relating   to    telephone   solicitations,                 
  advertisements,     and directory listings  and relating  to                 
  political polling and    campaigning by telephone."                          
                                                                               
  Representative Kay Brown was invited  to join the committee.                 
  She explained the new "O" version  of the bill and said this                 
  version  was   her  preference  reflecting   the  amendments                 
  previously adopted.  There was one further change on page 4,                 
  line 26, the  deletion of the words "polling  or".  She said                 
  she pursued  the  attempt to  create a  two tier  structure,                 
  however,  that  proved  to  be  problematic because  of  its                 
  complexity.  In working with  the phone company associations                 
  she determined that  she would not continue  pursuit of this                 
  matter.  The  associations did  not support  a more  complex                 
  variation.  She  urged adoption of  the "O" draft.   Senator                 
  Rieger moved "O" version as work draft and without objection                 
                                                                               
                                                                               
  it was adopted.                                                              
                                                                               
  Senator  Sharp  moved  amendment  #6.    He said  with  this                 
  amendment  the state  could  regulate intra-state  calls and                 
  eliminate calls as outlined  by this bill.  The  federal law                 
  passed recently does not give states any option to do inter-                 
  state  limitations.    In   response,  Representative  Brown                 
  referred to a letter of May  1, 1996 from Assistant Attorney                 
  General,  Joseph McKinnon.  The last paragraph was read into                 
  the  record and  said there  was no  limit  to telemarketing                 
  according  to  federal  regulations  implementing  the  1994                 
  Telemarketing Act.   Representative  Brown said  she opposed                 
  the amendment because  it could have  the effect of  driving                 
  business out of  the State  of Alaska if  it only  regulated                 
  within the State.  Most problems lie out of State.  She said                 
  this  amendment  would essentially  gut  the bill.   Senator                 
  Sharp  referred  to other  states  that have  passed similar                 
  legislation.    Senator  Rieger  said  he also  opposed  the                 
  amendment.  He had correspondence  from the Alaska Telephone                 
  Association and  said  they  also  opposed  this  amendment.                 
  Senator  Sharp  felt the  association  probably  opposed the                 
  whole bill.   He referred to  computerized systems but  said                 
  there were  many telephone utilities that do not have access                 
  to these systems and rely on manual systems.                                 
                                                                               
  Senator Rieger  read the  letter from  the Alaska  Telephone                 
  Association into the record.    Senator Sharp felt they were                 
  referring to the Judiciary version and not the one presently                 
  before the  committee.   Representative Brown  said the  two                 
  versions were essentially the same and the only changes were                 
  the additional amendments from Senator  Pearce in sections 1                 
  and 2.  That did not affect the issue they were speaking to.                 
   She  further  re-iterated  that she  did  not  support this                 
  amendment.                                                                   
                                                                               
  Co-chairman Halford asked for a vote  on amendment #6 and it                 
  failed adoption.                                                             
                                                                               
  Senator  Sharp   referred  to  limitation   on  calls   from                 
  charitable  organizations being  from volunteers.   He  felt                 
  this  bill  still allowed  for  paid professionals  from the                 
  Lower '48 to  conduct the calls.   Representative Brown said                 
  she  believed  the committee  did not  act on  the amendment                 
  proposed  by  Senator Sharp  at  the last  meeting regarding                 
  this.  She felt that the way  it read now included employees                 
  of  the  organization   or  volunteers  on  behalf   of  the                 
  organization.   Both a  staff person  or volunteer  would be                 
  covered.   Calls would not be covered if the person had made                 
  a contribution within the last twenty-four months.  It would                 
  not be  an open-ended  exemption.   Senator  Sharp said  the                 
  problem with the  bill still allowed  the two areas that  do                 
  90% of  the calls that individuals do  not ask for to occur.                 
  One is polling  and the  other is charitable  organizations.                 
  Those violating privacy cannot continue to do so.                            
                                                                               
                                                                               
  Senator  Rieger  moved  SCS  CSHB   109(FIN)  and  with  the                 
  objections of Senators Frank, Sharp  and Phillips being duly                 
  noted it  was reported out  with individual  recommendations                 
  and zero  fiscal notes from  the Department of  Commerce and                 
  Economic Development and Department of Law.                                  
                                                                               
  Representative Brown asked if the  committee wished to adopt                 
  the letter of intent from the House Judiciary.  She read the                 
  letter  of intent  into the  record and  said  the Telephone                 
  Association  and  the  House  supported  this.   Co-chairman                 
  Halford said  that without  objection the  letter of  intent                 
  would go with the bill.