04/23/1994 09:00 AM Senate JUD

 SENATOR TAYLOR introduced HB 315 (THEFT OF SUBSCRIPTION TV                    
 SERVICES) sponsored by REPRESENTATIVE BRIAN PORTER.  Before his               
 legislative assistant, ERIC MUSSER, gave his testimony on the bill,           
 SENATOR TAYLOR indicated the bill would not be leaving the                    
 committee today, but testimony would be taken on the bill in                  
 preparation for passing the bill from committee at the next                   
 meeting.                                                                      
                                                                               
 Number 054                                                                    
                                                                               
 MR. MUSSER explained briefly that HB 315 is to place in statute the           
 penalties for the unauthorized use, distribution, or sale of                  
 subscription cable services.  He said presently Alaska's theft of             
 services statute, AS 11.46.200, is very broad and unenforceable in            
 the theft of cable services.                                                  
                                                                               
 MR. MUSSER explained the bill first, under AS 11.46.200(A)(4) makes           
 it a Class A misdemeanor to maintain, whether physically or                   
 electronically, an unauthorized device to a TV set.  Under (4)(B)             
 manufacturing, assembling, distribution, or marketing the converter           
 boxes becomes a Class C felony.                                               
                                                                               
 Number 097                                                                    
                                                                               
 SENATOR LITTLE asked where the illegal devices were available.  MR.           
 MUSSER explained GARY HAINES from Prime Cable has some samples and            
 noted the manner in which they were acquired.  He showed an example           
 of a cable box at the time of subscription, the illegal box, and              
 explained the prohibitions.                                                   
                                                                               
 SENATOR LITTLE questioned the degree of crime in the scenario just            
 described by MR. MUSSER.                                                      
                                                                               
 MR. MUSSER said it would be theft in the third degree as described            
 in page 2, line 16.                                                           
                                                                               
 SENATOR LITTLE wanted to know how to catch these thieves.                     
                                                                               
 MR. MUSSER deferred to GARY HAINES, Vice-President of Prime Cable,            
 who explained some are detected from anonymous calls, and some are            
 detected through FBI sting operations, since it is against federal            
 law.                                                                          
                                                                               
 Number 162                                                                    
                                                                               
 MR. HAINES showed a list from a sting from Global Network which               
 showed a large number of persons in Anchorage who had purchased the           
 illegal box, and he explained how a great deal of money is made               
 from the boxes.  He explained it wasn't just an Anchorage problem,            
 but was spreading throughout the state.                                       
                                                                               
 MR. HAINES outlined how a person could steal one of his legal boxes           
 and purchase a test chip out of California for $19.00, which makes            
 an even higher profit.                                                        
                                                                               
 Number 191                                                                    
                                                                               
 REPRESENTATIVE PORTER joined the meeting at this time and expressed           
 his appreciation to the committee for hearing the bill, and he                
 outlined the problems with the statutes keeping up with the                   
 increase in cable theft.  He explained how difficult it was to                
 determine how many hours someone has used a pirate box, and he                
 reviewed the penalties for theft.                                             
                                                                               
 SENATOR HALFORD indicated he had a problem with the level of                  
 penalty, and found it difficult to make it a Class C penalty,                 
 because of other Class C penalty categories.  He suggested changing           
 it to a Class A misdemeanor.  SENATOR TAYLOR suggested the bill               
 could be changed under the title.                                             
                                                                               
 SENATOR LITTLE discussed her understanding of two separate                    
 offenses, one for possessing the pirate box, and one for selling              
 it.                                                                           
                                                                               
 Number 240                                                                    
                                                                               
 REPRESENTATIVE PORTER approved the idea of changing the penalties.            
                                                                               
 SENATOR HALFORD conceptually moved to adjust the penalties so that            
 Section 1 would be a Class A misdemeanor and Section 2 a Class B              
 misdemeanor.  He also moved to have the bill written consistent as            
 a Judiciary committee substitute.  Without objections, so ordered.            
                                                                               
 SENATOR TAYLOR requested his staff to prepare the committee                   
 substitute to be shown to REPRESENTATIVE PORTER before bringing it            
 to committee on Monday.