Legislature(2007 - 2008)BELTZ 211

01/25/2008 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 149 POLLUTANT DISCHARGE PERMITS TELECONFERENCED
Heard & Held
+= HB 7 FALSE CALLER IDENTIFICATION TELECONFERENCED
Heard & Held
= HB 151 INDEMNITY CLAUSE IN PUBLIC CONTRACTS
Moved SCS CSHB 151(JUD) Out of Committee
           CSHB  7(FIN)am-FALSE CALLER IDENTIFICATION                                                                       
                                                                                                                                
2:01:39 PM                                                                                                                    
CHAIR FRENCH announced the consideration of CSHB 7(FIN) am.                                                                     
                                                                                                                                
REPRESENTATIVE  BOB LYNN,  sponsor of  HB 7,  explained that  the                                                               
bill  relates to  false caller  identification.  That means  that                                                               
your  caller ID  may  not  be accurate,  he  said.  This has  the                                                               
potential  to create  serious mischief  and  it could  facilitate                                                               
fraud. We ought  to take proactive steps to make  false caller ID                                                               
illegal in Alaska, he said.                                                                                                     
                                                                                                                                
2:03:25 PM                                                                                                                    
DIRK MOFFET,  Staff, to Representative  Bob Lynn,  explained that                                                               
the technology  for false  caller ID isn't  new, but  it's easier                                                               
and  less expensive.  Now someone  with  a $10  calling card  can                                                               
alter their caller  ID and even change the sound  of their voice.                                                               
For example, someone  could change their caller ID  so that you'd                                                               
think  that Bank  of  America  is calling.  He  referenced an  AP                                                               
article that discussed how easy spoof caller ID has become.                                                                     
                                                                                                                                
MR. MOFFET relayed that Congressman  Tim Murphy from Pennsylvania                                                               
testified that  someone falsely entered  his office  phone number                                                               
on caller ID.  That person called his  constituents and slandered                                                               
the  congressman. He  only learned  about the  calls when  people                                                               
from  his   district  called  his  office   questioning  why  the                                                               
congressman would  say such negative things  about himself. There                                                               
are many other examples, he said.                                                                                               
                                                                                                                                
MR. MOFFET  said the bill  doesn't address the technology  of how                                                               
the spoof  gets on  the caller ID.  It simply says  that it  is a                                                               
crime  to insert  false caller  ID information  into a  caller ID                                                               
system with the intent to defraud.  HB 7 establishes that this is                                                               
a class A misdemeanor.                                                                                                          
                                                                                                                                
2:06:23 PM                                                                                                                    
SENATOR  THERRIAULT noted  a discrepancy  in the  penalty between                                                               
the  bill and  the  fiscal  notes and  asked  what the  sponsor's                                                               
intent is.                                                                                                                      
                                                                                                                                
MR. MOFFIT clarified that the intent is a class A misdemeanor.                                                                  
                                                                                                                                
SENATOR THERRIAULT asked what that penalty includes.                                                                            
                                                                                                                                
MR. MOFFIT  replied it  carries a  $10,000 fine  and 365  days in                                                               
jail.                                                                                                                           
                                                                                                                                
CHAIR FRENCH said that's the maximum penalty.                                                                                   
                                                                                                                                
MR. MOFFIT agreed.                                                                                                              
                                                                                                                                
CHAIR FRENCH  asked what  "intent to  defraud" means  and whether                                                               
the situation  with the congressman  would be a crime  under this                                                               
bill.                                                                                                                           
                                                                                                                                
2:07:49 PM                                                                                                                    
MR. MOFFIT deferred the question to the Department of Law.                                                                      
                                                                                                                                
SENATOR THERRIAULT provided a copy  of the statutory language for                                                               
"intent to defraud."                                                                                                            
                                                                                                                                
2:08:40 PM                                                                                                                    
ED   SNIFFEN,  Assistant   Attorney   General,  Civil   Division,                                                               
Department  of  Law (DOL),  read  the  definition of  "intent  to                                                               
defraud" in AS  11.46.990(11)(A) and (B) and said  he believes it                                                               
is  broad  enough  to  include fraud  aimed  at  financial  harm,                                                               
deception, reputational  injury or  other harm. He  believes that                                                               
the definition is  broad enough to include the  harassment of the                                                               
congressman.                                                                                                                    
                                                                                                                                
CHAIR FRENCH agreed. He said  his interest is to cover situations                                                               
where someone  is trying  to obtain a  Social Security  number, a                                                               
bank account number, an attempt  to contact a women's shelter, or                                                               
an attempt to harass someone.                                                                                                   
                                                                                                                                
2:10:24 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked if each  call that goes out  with the                                                               
same message constitutes a separate offense.                                                                                    
                                                                                                                                
MR. SNIFFEN  said DOL would  view it  that way if  the recipients                                                               
were  different. The  Alaska Consumer  Protection  Act defines  a                                                               
violation  to  include  every  separate  transaction  that  could                                                               
potentially  affect  a consumer.  If  a  call center  switchboard                                                               
calls  10,000 people  with  the push  of a  button,  each of  the                                                               
potential  victims would  have a  claim  and so  each call  would                                                               
potentially be a violation.                                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI  commented  the example  above  could  send                                                               
someone to prison for life and that seems a bit harsh.                                                                          
                                                                                                                                
MR. SNIFFEN  said he'd  defer to Ms.  Carpeneti, but  he believes                                                               
the sentencing judge would have discretion.                                                                                     
                                                                                                                                
2:12:14 PM                                                                                                                    
MR. MOFFET reminded members that  this sort of crime is difficult                                                               
to detect and catch so the deterrent effect is important.                                                                       
                                                                                                                                
SENATOR  THERRIAULT  highlighted  typical  home  electronics  and                                                               
questioned whether it really would be difficult to detect.                                                                      
                                                                                                                                
CHAIR FRENCH asked if spoof caller ID is a problem in Alaska.                                                                   
                                                                                                                                
MR. MOFFET  said his research  shows it's happening in  the Lower                                                               
48.                                                                                                                             
                                                                                                                                
CHAIR FRENCH  asked Lieutenant Dial  if there have been  cases of                                                               
spoof ID in Alaska.                                                                                                             
                                                                                                                                
2:13:56 PM                                                                                                                    
RODNEY  DIAL, Lieutenant,  Alaska State  Troopers, Department  of                                                               
Public Safety  (DPS), said it's  unclear how many of  these cases                                                               
are  occurring. But  DPS suspects  that spoof  ID is  involved in                                                               
some theft and deception, impersonation, and extortion cases.                                                                   
                                                                                                                                
SENATOR McGUIRE  said a company  is defined  as a person  and she                                                               
doesn't recall if a company can be charged with a crime.                                                                        
                                                                                                                                
MR.  SNIFFEN  explained  that  a  company  can  be  charged  with                                                               
violation of  the Consumer Protection  Act. In general  DOL tries                                                               
to identify  individuals within the  company who  are responsible                                                               
for  making decisions.  However, Federal  Trade Commission  cases                                                               
have  looked at  phone  boiler rooms  where  clerks make  illegal                                                               
telemarketing calls. If  those clerks know that  their conduct is                                                               
illegal and they continue, it's not  a defense to place the blame                                                               
on the supervisor. Each of  those clerks could be responsible for                                                               
their own conduct.                                                                                                              
                                                                                                                                
2:15:57 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked if there's already  a law prohibiting                                                               
this behavior.                                                                                                                  
                                                                                                                                
MR.  SNIFFEN  said he  believes  this  conduct  is covered  by  a                                                               
variety  of  statutes.   For  example,  it  could   be  theft  by                                                               
deception.  Under  the Consumer  Protection  Act  the conduct  is                                                               
arguably already  prohibited because  unfair trade practice  is a                                                               
violation. But  this would  make it  clear and  it would  add the                                                               
criminal element to the conduct.                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI asked  Lieutenant Dial  if he  foresees any                                                               
cost associated with the bill.                                                                                                  
                                                                                                                                
MR. DIAL  said yes, primarily  in the cost for  training specific                                                               
to this type of crime. The estimate is $25,000 or less.                                                                         
                                                                                                                                
2:17:54 PM                                                                                                                    
CHAIR FRENCH announced he would hold HB 7 in committee.                                                                         
                                                                                                                                

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