04/29/1996 01:30 PM Senate JUD

                                                                               
           HB 457 UNLICENSED PRACTICE OF OCCUPATION                           
                                                                              
 CHAIRMAN TAYLOR announced he had an amendment drafted to HB 457               
 which would include all other items listed under Title 8 for                  
 licensure within the state.                                                   
                                                                               
 WALT WILCOX, legislative aide to Representative James, sponsor of             
 the measure, explained HB 457 imposes civil penalties if an                   
 unlicensed person practices, or offers to practice, an occupation             
 in the state that is regulated under Title 8.  The civil penalty              
 could not exceed $5,000 for each offense; provides enforcement                
 mechanisms; and originated from a recommendation by the Legislative           
 Budget and Audit Committee.  Both the Department of Commerce and              
 Economic Development (DCED) and Legislative Budget and Audit                  
 Committee believe this mechanism will prevent unlicensed                      
 practitioners from practicing more expediently than criminal                  
 proceedings.                                                                  
                                                                               
 SENATOR ADAMS asked Mr. Wilcox if he supports Chairman Taylor's               
 amendment.  MR. WILCOX replied the sponsor is not opposed to the              
 amendment as long as DCED agrees to it.                                       
                                                                               
 CATHERINE REARDON, Director of the Division of Occupational                   
 Licensing within DCED testified in support of HB 457 as it will               
 give the Division an important enforcement tool.  Current procedure           
 requires the Division to take an unlicensed practitioner to court             
 on a misdemeanor which is not feasible.  HB 457 will provide for              
 due process through a hearing officer and an appeal right to the              
 court system.  She stated it appears the proposed amendment would             
 give DCED the responsibility for enforcement of people who practice           
 law without a license.  She asked if a definition of the practice             
 of law is contained in the court rules.                                       
                                                                               
 CHAIRMAN TAYLOR replied an abbreviated definition is in the court             
 rules and Alaska statute as well.                                             
 MS. REARDON stated DCED does not have the authority to adopt                  
 regulations further defining that practice.                                   
                                                                               
 CHAIRMAN TAYLOR responded the Department could address such a                 
 situation civilly, rather than criminally with a class A                      
 misdemeanor.                                                                  
                                                                               
 MS. REARDON explained that at present, the Alaska Bar Association             
 and Supreme Court address attorneys and the Alaska Bar Association            
 is considering a rule which would give an injunctive option.                  
 CHAIRMAN TAYLOR verified that rule is only a proposal at this time.           
                                                                               
 SENATOR GREEN asked if any other occupations do not come under the            
 purview of the DCED.  CHAIRMAN TAYLOR thought all other occupations           
 were included in the amendment.  MS. REARDON replied the amendment            
 covers all occupations licensed through DCED.                                 
                                                                               
 SENATOR GREEN asked if attorneys are issued licenses through DCED             
 since they also fall under the purview of the Bar Association.                
 CHAIRMAN TAYLOR stated attorneys fall under Title 8 which provides            
 for a criminal penalty for the unlicensed practice of a profession,           
 which is why the amendment would give DCED the same authority to              
 fine them.                                                                    
                                                                               
 SENATOR GREEN asked if criminal charges could still be pursued.               
 CHAIRMAN TAYLOR replied they could but that process is lengthy and            
 rarely used.                                                                  
                                                                               
 MS. REARDON stated DCED very much supports the bill and has                   
 prepared a zero fiscal note to accompany the bill.                            
                                                                               
 SENATOR ADAMS moved amendment #1.  There being no objection, the              
 motion carried.                                                               
                                                                               
 SENATOR ADAMS moved and asked unanimous consent that CSHB 457(JUD)            
 as amended be moved out of committee with individual                          
 recommendations.  There being no objection, the motion carried.