02/17/1994 01:30 PM House FIN

  HOUSE BILL NO. 315                                                           
                                                                               
       "An  Act  relating  to  the   unauthorized  use  of  or                 
       unauthorized   interference   with   transmission   and                 
       delivery of  subscription cable services;  and amending                 
       the definition of the offense of theft  of services and                 
       the penalties for its violation."                                       
                                                                               
  REPRESENTATIVE  BRIAN  PORTER asserted  that CSHB  315 (JUD)                 
  "fills a hole in existing criminal  statute within the State                 
  of Alaska."  He explained that CSHB 315 (JUD) will allow the                 
  illegal interception and  use of  cable transmissions to  be                 
  controlled.   He  asserted that  current law  does  not deal                 
  appropriately with the  theft of  cable transmissions.   Two                 
  levels of sanctions  are created by  CSHB 315 (JUD).   Those                 
  that intentionally use the services  of illegal apparatus to                 
  capture an unauthorized transmission  could be found  guilty                 
  of a Class A misdemeanor.  Individuals who manufacture, sell                 
  or distribute illegal devices would be  charged with a class                 
                                                                               
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  C felony.   He stressed that  the legislation is  especially                 
  important in Alaska due to the small population base.                        
                                                                               
  In   response   to   a   question   by   Co-Chair   MacLean,                 
  Representative Porter  clarified that a  misdemeanor offense                 
  carries less than a year penalty.                                            
                                                                               
  MARGOT KNUTH,  CRIMINAL DIVISION, DEPARTMENT OF LAW stressed                 
  that  CSHB 315  (JUD) gives  a value to  the theft  of cable                 
  services.  Theft  in the third  degree is applicable if  the                 
  value of the property taken is between $50 and $500 dollars.                 
  She observed that the legislation  would place the value  of                 
  the theft of  subscription cable serves  at between $50  and                 
  $500 dollars, making it a third degree theft.  She suggested                 
  that it would  be likely  that the theft  of cable  services                 
  will have occurred over  several months.  However,  it would                 
  be difficult to  prove that  the duration of  the theft  was                 
  more than a month.   A month of cable subscription would  be                 
  less than $50.                                                               
                                                                               
  Ms. Knuth  explained  that the  class  C felony  offense  or                 
  second  degree  theft  offense  would  apply  to  those  who                 
  knowingly distribute  equipment  which allows  the theft  to                 
  occur.  She  noted that other  class C felonies include  the                 
  theft  of  a firearm,  taking  property from  the  person of                 
  another and taking property from a vessel or aircraft.                       
                                                                               
  In response  to a  question by  Representative Parnell,  Ms.                 
  Knuth clarified that it must be demonstrated that the device                 
  is possessed "for the purpose of intercepting, receiving, or                 
  using a program or other service carried by the subscription                 
  cable system".                                                               
                                                                               
  Representative  Hoffman  asked  if   those  acquiring  cable                 
  services  illegally were required to pay  for the service if                 
  reduced rates to subscribers  would result.   Representative                 
  Porter   stressed   that  cable   companies   must  maximize                 
  subscriptions in order to offer services in rural Alaska.                    
                                                                               
  GARY HYNES,  PRIME CABLE, ANCHORAGE emphasized  that capital                 
  is needed to expand services into rural areas.                               
                                                                               
  In  response   to  a  question  by  Representative  Navarre,                 
  Representative Porter explained that satellite dishes  would                 
  not be covered by the legislation.                                           
                                                                               
  Co-Chair  MacLean MOVED  to  report CSHB  315  (JUD) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 315  (JUD) was  reported out  of Committee  with a  "do                 
                                                                               
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  pass" recommendation and  with three zero fiscal  notes, two                 
  by  the Department of  Administration, published  2/2/94 and                 
  one by the Department of Law.