Legislature(2003 - 2004)

02/12/2003 03:17 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 12, 2003                                                                                        
                           3:17 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom Anderson, Chair                                                                                              
Representative Bob Lynn, Vice Chair                                                                                             
Representative Nancy Dahlstrom                                                                                                  
Representative Carl Gatto                                                                                                       
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 82                                                                                                               
"An  Act   making  certain   activities  related   to  commercial                                                               
electronic  mail unlawful  as unfair  methods  of competition  or                                                               
unfair or deceptive  acts or practices under  the Act enumerating                                                               
unfair trade practices and consumer protections."                                                                               
                                                                                                                                
     - MOVED CSHB 82(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 82                                                                                                                   
SHORT TITLE:COMMERCIAL ELECTRONIC MAIL                                                                                          
SPONSOR(S): REPRESENTATIVE(S)MEYER                                                                                              
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/07/03     0148       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/07/03     0148       (H)        L&C, JUD                                                                                     
02/12/03     0203       (H)        COSPONSOR(S): ANDERSON,                                                                      
                                   DAHLSTROM,                                                                                   
02/12/03     0203       (H)        CRAWFORD, GUTTENBERG, LYNN                                                                   
02/12/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE KEVIN MEYER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    As  sponsor   of  HB  82,  explained  the                                                               
requirement  of  the "ADV:ADLT"  label  in  the subject  line  of                                                               
unsolicited e-mails to help  receivers identify sexually explicit                                                               
material.                                                                                                                       
                                                                                                                                
ED SNIFFEN, Assistant Attorney General                                                                                          
Fair Business Practices Section                                                                                                 
Civil Division (Anchorage)                                                                                                      
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Testified  that  the  department  had  no                                                               
opposition to  HB 82 and  explained enforcement  provisions under                                                               
the state's consumer protection law.                                                                                            
                                                                                                                                
SUZANNE CUNNINGHAM, Staff                                                                                                       
to Representative Kevin Meyer                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   As staff to the sponsor of  HB 82, answered                                                               
questions.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-8, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
CHAIR TOM ANDERSON  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:17  p.m.    Representatives                                                               
Anderson,  Dahlstrom, Gatto,  and  Crawford were  present at  the                                                               
call to  order.  Representatives  Lynn, Rokeberg,  and Guttenberg                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
HB  82-COMMERCIAL ELECTRONIC MAIL                                                                                             
                                                                                                                                
Number 0048                                                                                                                     
                                                                                                                                
CHAIR ANDERSON announced a hearing on  HOUSE BILL NO. 82, "An Act                                                               
making certain  activities related to commercial  electronic mail                                                               
unlawful as unfair methods of  competition or unfair or deceptive                                                               
acts  or  practices  under  the   Act  enumerating  unfair  trade                                                               
practices and consumer protections."                                                                                            
                                                                                                                                
Number 0078                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEVIN MEYER,  as sponsor of HB  82, explained that                                                               
the bill  prohibits individuals from sending  unsolicited e-mails                                                               
that  contain explicit  sexual materials  without an  identifying                                                               
subject line.   The heading  "ADV" stands for  "advertising," and                                                               
"ADLT"  stands for  "adult."    This label  is  taken from  other                                                               
states' laws.   The proposed committee substitute (CS)  for HB 82                                                               
removes  Section   2(a)  of  the  original   bill  [dealing  with                                                               
unsolicited commercial  e-mails].  He  explained that HB  82 does                                                               
not  ban  commercial,  sexually   explicit  e-mail;  it  requires                                                               
unsolicited e-mails that contain  age-sensitive or adult material                                                               
to  be so  identified in  the title.   He  described HB  82 as  a                                                               
consumer protection bill  and a children's protection  bill.  The                                                               
bill grows  partly out  of personal  concern for  his 11-year-old                                                               
daughter who uses the family e-mail account.                                                                                    
                                                                                                                                
REPRESENTATIVE MEYER  said current law prohibits  adult materials                                                               
from being displayed or made  available to children under age 18.                                                               
On the  Internet, there is no  age restriction.  Any  kid can get                                                               
pornography.  The  bill requires the labeling  of explicit adult-                                                               
content  commercial e-mails  so  that children  and parents  have                                                               
enough information  to decide  whether they want  to open  the e-                                                               
mails.  Many people would  simply delete the e-mails without even                                                               
opening them.   Labeling the subject line would  allow a computer                                                               
to filter  out these materials.   This  bill will allow  kids and                                                               
adults who  enjoy and use e-mail  to do so without  being subject                                                               
to unsolicited obscene material.   Representative Meyer described                                                               
himself  as a  firm believer  in freedom  of speech;  he said  he                                                               
wants e-mail put at the same  level as adult bookstores and adult                                                               
entertainment places.                                                                                                           
                                                                                                                                
Number 0497                                                                                                                     
                                                                                                                                
The committee took an at-ease from 3:20 to 3:23 p.m.                                                                            
                                                                                                                                
Number 0544                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  moved to  adopt the  proposed CS  for HB
82, Version  23-LS0109\Q, Bannister, 2/10/03, as  the work draft.                                                               
There being no objection, Version Q was before the committee.                                                                   
                                                                                                                                
Number 0641                                                                                                                     
                                                                                                                                
ED SNIFFEN,  Assistant Attorney General, Fair  Business Practices                                                               
Section, Civil Division (Anchorage),  Department of Law, said the                                                               
department had no  opposition to HB 82.  The  department also had                                                               
no problems  with the section of  the bill that was  removed from                                                               
the proposed CS version.                                                                                                        
                                                                                                                                
REPRESENTATIVE  ROKEBERG   inquired  how   this  bill   would  be                                                               
enforced.     Would  the  ISP  [Internet   service  provider]  do                                                               
screening  or  would  the individual  report  violations  to  the                                                               
department, he asked.                                                                                                           
                                                                                                                                
Number 0712                                                                                                                     
                                                                                                                                
MR. SNIFFEN  replied that  legitimate Internet  service providers                                                               
will  do  in-house filtering  to  make  sure  that this  kind  of                                                               
material is  appropriately labeled.   With businesses  that don't                                                               
comply with  the law,  his department  will take  complaints from                                                               
consumers.    The   department  would  try  to   track  down  the                                                               
originator  of the  e-mails.   The  department  has succeeded  in                                                               
getting  ISPs  to  stop  people from  sending  certain  kinds  of                                                               
deceptive information over the Internet.                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked about the problems  of pursuing e-                                                               
mail senders who are out-of-state.                                                                                              
                                                                                                                                
MR. SNIFFEN replied that if the person is in Alaska sending e-                                                                  
mails to Alaskans, his agency takes  the position that it has the                                                               
authority  to control  activities that  occur within  the state's                                                               
borders.   The department will  also work with the  regulators in                                                               
the  state from  where the  e-mail originated  and hopefully  get                                                               
orders or injunctions  against the perpetrators in  that state as                                                               
well.                                                                                                                           
                                                                                                                                
Number 0833                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  if this  bill controls  e-mails                                                               
within Alaska and between Alaska and another state.                                                                             
                                                                                                                                
MR. SNIFFEN said he thinks the  bill was intended to curb e-mails                                                               
generated inside or outside the state.                                                                                          
                                                                                                                                
CHAIR  ANDERSON asked  if a  violation of  HB 82  would interfere                                                               
with federal interstate commerce laws.                                                                                          
                                                                                                                                
MR. SNIFFEN said he did not  think so.  The department researched                                                               
this  issue,   particularly  Section  2(a)  [removed   from  this                                                               
proposed  CS].    Court  decisions in  other  states  on  similar                                                               
language  indicate  that such  language  does  not violate  First                                                               
Amendment rights  or interstate  commerce issues because  it goes                                                               
to a  legitimate state  interest.   The burden  on the  sender is                                                               
minimal.   The  bill tells  the  e-mail senders  that if  they're                                                               
going to  send this material,  they have to do  it in such  a way                                                               
that a reasonable  consumer might be able to identify  what it is                                                               
and choose  not to receive it.   In this case,  Mr. Sniffen said,                                                               
the language is clearly acceptable.                                                                                             
                                                                                                                                
Number 0963                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked Mr.  Sniffen to define  the word                                                               
"aurally" on page 2, line 5.                                                                                                    
                                                                                                                                
MR.  SNIFFEN  replied  that  it falls  under  the  definition  of                                                               
explicit sexual material in AS 11.41.455(a).                                                                                    
                                                                                                                                
Number 1031                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO added that  aural refers to auditory senses;                                                               
the law refers to sounds that depict sexual activities.                                                                         
                                                                                                                                
Number 1067                                                                                                                     
                                                                                                                                
SUZANNE CUNNINGHAM,  Staff to Representative Kevin  Meyer, Alaska                                                               
State  Legislature,  clarified  that  "oral"  means  spoken,  and                                                               
"aurally" refers to a representation  of what a person would hear                                                               
in explicit sexual material.                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  Mr.  Sniffen how  this  bill  is                                                               
enforced under AS 45.50.471, unlawful acts and practices.                                                                       
                                                                                                                                
MR.  SNIFFEN   replied  that   enforcement  under   the  consumer                                                               
protection Act is fairly limited.   The department can ask people                                                               
to voluntarily stop  illegal conduct with a "warning:   cease and                                                               
desist" letter.   The department must file an action  in state or                                                               
federal  court to  stop the  conduct  of people  who ignore  such                                                               
warnings.    The  department   doesn't  have  any  administrative                                                               
enforcement authority  to hold hearings, issue  citations, or ask                                                               
for  penalties.   The department  essentially says,  "Do this  or                                                               
we'll sue you," and the department  would do the same thing under                                                               
this bill.                                                                                                                      
                                                                                                                                
Number 1228                                                                                                                     
                                                                                                                                
CHAIR ANDERSON asked  Representative Meyer to comment  on why his                                                               
bill is limited to pornographic e-mails.                                                                                        
                                                                                                                                
REPRESENTATIVE  MEYER  explained that  other  bills  look at  the                                                               
broader issue of  unsolicited commercial e-mails.   In this bill,                                                               
he said  he wanted  to treat e-mail  the same as  U.S. mail.   He                                                               
said  he doesn't  like  having his  kids  exposed to  unsolicited                                                               
pornography.    Rather than  having  his  bill stalled  over  the                                                               
regulation of  all unsolicited commercial e-mails,  he focused on                                                               
pornography.   He  said  that  keeping the  bill  simple and  not                                                               
setting a stricter  level for adult material  than already exists                                                               
should make the  bill easier to get through the  legislature.  He                                                               
said there's still  the chance that children will  open an e-mail                                                               
with the ADV:ADLT heading, but  that's a problem the parent needs                                                               
to handle.                                                                                                                      
                                                                                                                                
Number 1368                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG   asked  whether  the   definition  of                                                               
"explicit  sexual material"  under  AS 11.41.455(a)  must meet  a                                                               
community  standard  or the  recipient's  definition  of what  is                                                               
offensive.                                                                                                                      
                                                                                                                                
MR. SNIFFEN  replied that the  general test for  determining what                                                               
is sexually explicit is a community  standard.  He said he didn't                                                               
think that would  be a problem in HB 82.   Most reasonable people                                                               
agree on what is explicit sexual material, he suggested.                                                                        
                                                                                                                                
REPRESENTATIVE  ROKEBERG  reminded  committee  members  that  the                                                               
language of  AS 11.41.455, unlawful  exploitation of a  minor, is                                                               
included in their bill materials.                                                                                               
                                                                                                                                
REPRESENTATIVE GATTO said he supports  this bill because it could                                                               
succeed in filtering out a great deal of junk e-mails.                                                                          
                                                                                                                                
Number 1595                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER  reminded members  that HB 82  uses headings                                                               
that  are  in  use  in  other  states,  so  there  will  be  some                                                               
consistency from state to state.                                                                                                
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked whether  this bill  relates only                                                               
to  child   pornography  because   AS  11.41.455   defines  child                                                               
pornography.                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEYER said that HB  82 covers all pornography, not                                                               
just  child pornography,  with the  words on  page 2,  lines 6-7,                                                               
"but is  not limited to  conduct engaged in  by a child  under 18                                                               
years of age".                                                                                                                  
                                                                                                                                
Number 1595                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DAHLSTROM read  the  specific conduct  prohibited                                                               
under HB 82 and current law, AS 11.41.455(a).                                                                                   
                                                                                                                                
REPRESENTATIVE MEYER,  in conclusion, said he  regretted removing                                                               
all  commercial e-mails  from  HB  82, but  he  predicted such  a                                                               
section  would  have  trouble in  the  House  Judiciary  Standing                                                               
Committee.    Other  bills deal  with  these  broader  commercial                                                               
issues.                                                                                                                         
                                                                                                                                
Number 1685                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved  to report the proposed  CS for HB
82,  Version 23-LS0109\Q,  Bannister, 2/10/03,  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.  There  being no objections, CSHB 82(L&C)  was reported out                                                               
of House Labor and Commerce Standing Committee.                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
3:48 p.m.                                                                                                                       

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