04/19/2006 01:30 PM House FINANCE

HOUSE BILL NO. 399                                                                                                            
                                                                                                                                
     "An  Act  establishing the  office  of elder  fraud  and                                                                   
     assistance;  and  relating   to  fraud  involving  older                                                                   
     Alaskans."                                                                                                                 
                                                                                                                                
3:10:20 PM                                                                                                                    
                                                                                                                                
In   response  to   a  question   by  Representative   Joule,                                                                   
Representative  Chenault  confirmed  that the  committee  had                                                                   
previously adopted  the Committee Substitute for  HB 399, 24-                                                                   
LS1517F\F.                                                                                                                      
                                                                                                                                
Co-Chair Chenault MOVED Conceptual Amendment 2:                                                                                 
                                                                                                                                
     (e)  Subject   to  the  discretion  of   the  court  and                                                                 
     regulations   promulgated  by   the  office  of   public                                                                 
     advocacy,  and taking into  consideration the  financial                                                                 
     condition of  the parties to a civil suit  brought under                                                                   
     this  section, the  office of public  advocacy  may seek                                                                   
     recovery of  partial or full  litigation costs  and fees                                                                 
     from  any party,  including  costs  incurred during  the                                                                 
     investigation of the case,  whether the office of public                                                                 
     advocacy  prevails or  settles in  the best interest  of                                                                 
     the client.   The office of public advocacy  shall enter                                                                 
     a  fee  agreement  with   any  party  it  represents  in                                                                 
     accordance  with  this  section,  the  Alaska  Rules  of                                                                 
     Court,   and   the   Alaska    Rules   of   Professional                                                                 
     Responsibility.                                                                                                          
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
SUE WRIGHT,  STAFF, REPRESENTATIVE  MIKE CHENAULT,  testified                                                                   
regarding  the amendment.   It  was suggested  by Josh  Fink,                                                                   
Public  Advocate,  Office of  Public  Advocacy,  in order  to                                                                   
allow  the  Office  of Public  Advocacy  to  recover  partial                                                                   
litigation costs from any party  should they be successful in                                                                   
prosecuting elder fraud.                                                                                                        
                                                                                                                                
3:12:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault discussed  questions  raised regarding  an                                                                   
earlier amendment,  as to whether monies would  be taken from                                                                   
seniors who had received a settlement.                                                                                          
                                                                                                                                
Ms. Wright pointed  out that the fees are in  accordance with                                                                   
the  Alaska   Rules  of  Court   and  the  Alaska   Rules  of                                                                   
Professional  Responsibility, and  could include monies  over                                                                   
and above any recovery issued by the court.                                                                                     
                                                                                                                                
Co-Chair Meyer REMOVED  his OBJECTION.  There being  no other                                                                   
objection, Conceptual Amendment 2 was ADOPTED.                                                                                  
                                                                                                                                
3:13:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault   discussed  the  fiscal  note   from  the                                                                   
Department of  Administration, which was  originally $638,000                                                                   
and represented five full-time  positions.  He noted that his                                                                   
office  has  worked with  the  Department,  as well  as  with                                                                   
constituents, to reduce the fiscal  note.  He explained that,                                                                   
while that number of employees  may eventually be needed, the                                                                   
focus was to get the program started.                                                                                           
                                                                                                                                
Ms.  Wright related  that the  bill  authorizes one  Attorney                                                                   
III, one part-time investigator  and one part-time paralegal.                                                                   
She  also  noted an  added  cost  for the  current  caseload,                                                                   
including  a very egregious  case.   She outlined details  of                                                                   
this  case, and  its urgency.    She commended  Mr. Fink  for                                                                   
containing  costs, while  providing services  to the  elderly                                                                   
clients.                                                                                                                        
                                                                                                                                
3:16:54 PM                                                                                                                    
                                                                                                                                
Representative Joule referred  a March 6 fiscal note prepared                                                                   
by Mr.  Fink that  showed $96,000  for employing an  Attorney                                                                   
III.   Ms.  Wright  confirmed that  the  position was  indeed                                                                   
Attorney III, and  the amount was adjusted in  the new fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
Co-Chair  Meyer  named  the  four  fiscal  notes:  previously                                                                   
published  zero fiscal note  #1 by  the Department  of Health                                                                   
and  Social  Services,  two  new zero  fiscal  notes  by  the                                                                   
Department of Law and the Department  of Public Safety, and a                                                                   
new fiscal note by the Department of Administration                                                                             
                                                                                                                                
3:18:03 PM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 399  (FIN) out of                                                                   
Committee,  as amended, with  individual recommendations  and                                                                   
the accompanying fiscal notes.   There being NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
CSHB  399 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and  with  previously  published  zero                                                                   
fiscal  note  #1  by the  Department  of  Health  and  Social                                                                   
Services, two new zero fiscal  notes by the Department of Law                                                                   
and the  Department of Public  Safety, and with a  new fiscal                                                                   
note by the Department of Administration.