Legislature(1997 - 1998)
05/07/1998 04:10 PM Senate JUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
CSHB 203(JUD) - ACTIONS FOR UNLAWFUL TRADE PRACTICES
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at approximately 4:10 p.m. and announced CSHB 203(JUD) to be
up for consideration.
REPRESENTATIVE DYSON said only two part-time people work in the
Consumer Protection Division of the Attorney General's Office.
This bill is an effort to privatize some portions of that office to
allow consumers to protect themselves from fraud. HB 203 removes
the $200 limit that made it virtually impractical to get legal
assistance when going after an alledged perpetrator when one is a
victim of fraud. It allows for the recovery of damages, reasonable
costs, and some punitive damage. It also allows for injunctive
relief, if there is a conviction, if the magistrate agrees. HB 203
also allows a person who is not a party to the fraud to seek the
injunctive relief. REPRESENTATIVE DYSON added that frivolous
lawsuits are dealt with too.
REPRESENTATIVE DYSON said the Alaska State Chamber of Commerce does
not oppose this.
SENATOR ELLIS said he supported the bill as he represents a lot of
senior citizens who have been victimized.
REPRESENTATIVE DYSON said he wanted to put together a task force to
act as a clearinghouse to help people get this kind of protection.
Number 140
CHAIRMAN TAYLOR asked if the punitive damage section was different
from last year's tort reform bill.
REPRESENTATIVE DYSON said he thought it was identical.
CHAIRMAN TAYLOR replied he thought it was different.
SENATOR PARNELL asked CHAIRMAN TAYLOR if he wanted the language to
mirror the past tort reform legislation.
CHAIRMAN TAYLOR answered yes.
REPRESENTATIVE DYSON said punitive damages would be awarded in
addition to the actual damages going to the victim. The intention
is to discourage people from looking for lawsuits to file.
SENATOR PARNELL questioned why language was needed on page 2, lines
10-13, saying the Commissioner of Administration should simply
account for that money.
REPRESENTATIVE DYSON said that was put in by the House Judiciary
Committee and it mirrored tort reform language that passed.
CHAIRMAN TAYLOR noted that this bill was not limited to
telemarketing frauds.
Number 261
MR. DAVEED SCHWARTZ, Department of Law (DOL), said DOL supports HB
203 because it enhances a private litigant's ability to enforce
consumer rights. He said encouraging private enforcement of
consumer protection matters is particularly important at a time
when State resources devoted to consumer protection are
significantly less than in years passed.
CHAIRMAN TAYLOR asked him if three times actual damages was per act
or per cause.
MR. SCHWARTZ replied that the language referred to each unlawful
act.
CHAIRMAN TAYLOR said it looks like this provision has to do with
class actions and that one would literally be allowed to get three
times the actual damages for each act.
MR. SCHWARTZ responded there hasn't been a lot of litigation under
531(A) and that section is not limited to class actions. It could
be an individual's action.
CHAIRMAN TAYLOR noted that is current law.
MR. SCHWARTZ said the willfulness requirement would be eliminated
under the proposed change.
Number 336
MS. PEGGY MULLIGAN, Capital City Task Force, AARP, noted the
committee already received its position paper in support of HB 203
which goes a long way in helping Alaskans to fight fraud. HB 203
may also act as a deterrent to unlawful practices because it allows
people to take these cases to court.
MS. MARIE DARLIN, NARFP, supported Ms. Mulligan's comments
regarding HB 203.
Number 367
SENATOR PARNELL moved to delete the section on page 2, lines 10-13,
that requires the Commissioner of Administration to separately
account for the money and for the Legislature to direct the money.
There were no objections therefore Amendment #1 passed.
SENATOR PARNELL said Section 45.50.531 (Rule 82) might be taking a
step backward in terms of awarding fees and costs compared to
current law.
MS. PAM LABOLLE, Alaska State Chamber of Commerce, said it had a
problem in House Judiciary because Rule 82 was not applicable. The
prevailing plaintiff gets attorney fees, the prevailing defendant
must pay his/her own. The inclusion of Rule 82 was an attempt to
fix that but it's possible that it doesn't totally fix the problem.
Number 441
REPRESENTATIVE DYSON said that provision was and attempt to help
the "little guy" who was going up against multiple attorneys on
retainer and was afraid he would lose and have to pay court costs.
CHAIRMAN TAYLOR said he thought the attorney fee section was a
direct modification of Rule 82.
MS. LABOLLE explained the Chamber's intent was to protect mom and
pop organizations.
SENATOR PARNELL said he thought it was a step backwards, because
the court may award the prevailing party all or a portion of the
fees.
Number 528
SENATOR PARNELL moved to pass CSHB 203(JUD) from committee with
individual recommendations. There were no objections and it was so
ordered.
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