05/10/2002 05:26 PM Senate JUD

             HB 393-SALES OF BUSINESS OPPORTUNITIES                                                                         
                                                                                                                                
5:53 p.m.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GARY  STEVENS, sponsor of HB 393, said  HB 393 is a                                                              
consumer protection bill that would  help Alaskans confronted with                                                              
consumer scams known as business  opportunities.  He said he had a                                                              
packet of examples  of the business opportunities  people received                                                              
in  the  mail.    He  said  HB  393   would  not  hurt  legitimate                                                              
businesses;  it  would  only  protect  against  the  high-pressure                                                              
business  opportunities that  promised people  high earnings.   He                                                              
said vulnerable Alaskans  such as senior citizens  and people with                                                              
disabilities, were  especially taken in  by them.  He said  HB 393                                                              
would require these businesses to  register, disclose information,                                                              
use  an   escrow  account   for  delivery   and  allow   a  30-day                                                              
cancellation period.   He said  direct sellers for  companies such                                                              
as Avon,  Mary Kay and Amway  would be exempted  from requirements                                                              
of the bill.                                                                                                                    
                                                                                                                                
CHAIRMAN TAYLOR said  many people who were appreciative  of HB 393                                                              
had  contacted him.   He  asked Ms.  Cindy  Drinkwater to  provide                                                              
testimony.                                                                                                                      
                                                                                                                                
MS. CINDY  DRINKWATER, Assistant  Attorney General,  Department of                                                              
Law (DOL), said DOL strongly supported HB 393.                                                                                  
                                                                                                                                
CHAIRMAN  TAYLOR  asked  if  there  were  any  questions  for  Ms.                                                              
Drinkwater.   There  were  none.   He asked  Ms.  Marie Darlin  to                                                              
provide testimony.                                                                                                              
                                                                                                                                
MS. MARIE DARLIN, Capital City Task  Force, AARP Alaska, said they                                                              
supported  HB 393.    She said  the  committee  had AARP  Alaska's                                                              
letter of support and had heard from  many of its members, many of                                                              
who had  really been  ripped off by  business opportunities.   She                                                              
said the latest CS cleared up any questions.                                                                                    
                                                                                                                                
CHAIRMAN TAYLOR asked if there were  any questions for Ms. Darlin.                                                              
There were none.                                                                                                                
                                                                                                                                
SENATOR ELLIS noted  that HB 393 passed the floor  of the House of                                                              
Representatives with  a vote of 37 to  one.  He said  the nay vote                                                              
was  from Representative  Vic Kohring.    He asked  Representative                                                              
Stevens if  he knew why  Representative Kohring had  voted against                                                              
HB 393.                                                                                                                         
                                                                                                                                
REPRESENTATIVE STEVENS thought Representative  Kohring was opposed                                                              
to any governmental regulations that would impact people.                                                                       
                                                                                                                                
CHAIRMAN  TAYLOR  said he  spoke  to Representative  Kohring,  who                                                              
indicated  that his  primary concern  was  that HB  393 would  add                                                              
another level  of government and  more employees and  would result                                                              
in more  cost to  other small  businesses.   He said the  language                                                              
that would  allow the  department to  set the  cost of fees  based                                                              
upon  the cost  of issuing  licenses was  fairly broad.   He  felt                                                              
Representative  Kohring was philosophically  supportive of  HB 393                                                              
but had concerns about the cost of government.                                                                                  
                                                                                                                                
He asked  if there was  any further discussion  on HB 393.   There                                                              
was none.                                                                                                                       
                                                                                                                                
SENATOR  COWDERY moved  SCS CSHB  393(L&C) out  of committee  with                                                              
attached zero fiscal note and individual recommendations.                                                                       
                                                                                                                                
There  being  no  objection,  SCS   CSHB  393(L&C)  moved  out  of                                                              
committee   with  attached   zero  fiscal   note  and   individual                                                              
recommendations.