05/05/1998 03:07 PM Senate L&C

                                                                               
       CSHB 203(JUD) - ACTIONS FOR UNLAWFUL TRADE PRACTICES                    
                                                                               
CHAIRMAN LEMAN brought CSHB 203(JUD) before the committee.                     
                                                                               
PAT HARMAN, staff to Representative Fred Dyson, explained the                  
legislation provides for a dispute resolution procedure for                    
consumer disputes.  It provides that if there is a dispute, the                
individual has to submit a letter to the business stating the                  
problem.  It also contains a mediation option as a dispute                     
resolution option.  It further provides the ability of the court to            
grant injunctive relief so an individual doesn't have to experience            
actual damages to be granted injunctive relief.  There are fairly              
severe penalties for frivolous lawsuits or lawsuits that are                   
brought forward for competitive advantage, and it provides  for the            
defendant to receive full reasonable attorney fees and costs if the            
action is found to be frivolous.                                               
                                                                               
JAMES BEVERIDGE, representing the Alaska Public Interest Research              
Group (AKPIRG) and testifying via teleconference from Anchorage,               
voiced the organization's support for CSHB 203(JUD).  He noted                 
Alaska ranks very low on the states' lists in terms of consumer                
protection, and the state has become somewhat of a haven for                   
unscrupulous individuals and dishonest businesses that rip off                 
millions of dollars each year from honest Alaskan businesses.                  
AKPIRG believes the legislation is an important step in addressing             
this problem by empowering consumers and providing avenues for them            
to more easily address their grievances.                                       
                                                                               
Number 390                                                                     
                                                                               
PEGGY MULLIGAN, representing the American Association of Retired               
Persons (AARP), voiced AARP's support for the legislation.  She                
said the bill will put Alaskans pretty much in line with a lot of              
the other states as far as protection for all of its citizens                  
against fraud.                                                                 
                                                                               
There being no further testimony on CSHB 203(JUD), CHAIRMAN LEMAN              
stated the bill would be set aside until a quorum could be                     
reestablished.                                                                 
                                                                               
SENATOR MACKIE moved CSHB 203(JUD) be passed out of committee with             
individual recommendations.  Hearing no objection, it was so                   
ordered.