04/22/2002 02:23 PM House FIN

HOUSE BILL NO. 385                                                                                                            
                                                                                                                                
     An Act relating to the attorney fees and costs awarded                                                                     
     in certain court actions relating to unfair trade                                                                          
     practices; and amending Rules 54, 79, and 82, Alaska                                                                       
     Rules of Civil Procedure.                                                                                                  
                                                                                                                                
REPRESENTATIVE ERIC  CROFT, SPONSOR, spoke in  support of the                                                                   
bill.    He  noted  that  the  controversial  aspect  of  the                                                                   
legislation   had  been  amended   in  the  House   Judiciary                                                                   
Committee.   What  is left of  the bill  allows the  attorney                                                                   
general's  office, when  they  fully prosecute  the  consumer                                                                   
protection  claim  and  prevail,   to  recover  their  costs.                                                                   
Consequently, if  someone has been defrauding  the public and                                                                   
after  a full  court  action,  is found  that  they did,  the                                                                   
legislation allows the State to recover full attorney fees.                                                                     
                                                                                                                                
Representative  Croft  advised  that  the  legislation  would                                                                   
address his  concerns that part  of the Department of  Law is                                                                   
chronically under funded, which  has been a long-term problem                                                                   
and  thus,  consumer  protection  claims have  become  a  low                                                                   
priority.  He claimed that the  proposed legislation would be                                                                   
a good mechanism to fund that concern.                                                                                          
                                                                                                                                
ED  SNIFFEN,   (TESTIFIED   VIA  TELECONFERENCE),   ASSISTANT                                                                   
ATTORNEY GENERAL, DEPARTMENT OF  LAW, ANCHORAGE, testified in                                                                   
support  of the  legislation.   He reiterated  that the  bill                                                                   
would allow  the attorney  general's office  to recover  fees                                                                   
from consumer  protection  cases.  At  present time,  private                                                                   
attorneys have that authority.                                                                                                  
                                                                                                                                
LES GARA,  (TESTIFIED VIA TELECONFERENCE),  PRIVATE ATTORNEY,                                                                   
CONSUMER  PROTECTION, ANCHORAGE,  echoed his  support of  the                                                                   
legislation.   He  claimed that  the bill is  crucial to  the                                                                   
State of  Alaska for a  number of reasons.   It  is difficult                                                                   
for someone that has been defrauded  in a small consumer case                                                                   
to find a private attorney.  Consequently,  the only recourse                                                                   
that people have  is to go to the attorney  general's office.                                                                   
The  State of  Alaska has  the  smallest consumer  protection                                                                   
section in the  country and they also have  a budget problem.                                                                   
If the State is able to recover  it's full enforcement costs,                                                                   
then  there  will  be  a  system   in  the  State  where  the                                                                   
protection function of the State  does not cost the people of                                                                   
the State money.                                                                                                                
                                                                                                                                
He stressed that HB 385 is a very  healthy bill.  HB 385 will                                                                   
help the people of the State save  money.  Mr. Gara concluded                                                                   
that the proposed bill is a "win-win"  situation for everyone                                                                   
in  the  State  and  offered   to  answer  questions  of  the                                                                   
Committee.                                                                                                                      
                                                                                                                                
Representative Hudson MOVED to  report CS HB 385 (JUD) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  385 (JUD)  was reported  out of  Committee with  a "do                                                                   
pass"  recommendation   and  with  fiscal  note   #1  by  the                                                                   
Department of Law.