HB 20-PROHIBIT FEES FOR PAPER DOCUMENTS  1:17:56 PM CHAIR GRAY announced that the final order of business would be HOUSE BILL NO. 20, "An Act relating to fees for paper documents; and relating to unfair trade practices." 1:18:16 PM REPRESENTATIVE DAN SADDLER, Alaska State Legislature, as prime sponsor, presented HB 20. He paraphrased the sponsor statement [included in the committee file], which read as follows [original punctuation provided]: House Bill 20 would prevent businesses from charging customers an extra fee or a different typically higher rate for services when they choose to receive paper copies of statements, invoices and other documents, instead of going "paperless." Not all Alaskans have consistent internet access in their homes. Unfairly being charged a higher rate for the same service punishes them for something that may be out of their control. Additionally, not all members of Alaska's elderly population are computer savvy and can easily access online documents. This same population may be on a fixed income and disproportionately feel the impact of an additional service charge each month. HB 20 seeks to end the system of charging different fees or rates for customers depending on whether they choose to go "paperless," and by doing so would protect Alaskans from this unfair business practice. 1:20:31 PM KAI ELKINS, Staff, Representative Dan Saddler, Alaska State Legislature, on behalf of Representative Saddler, prime sponsor, presented the sectional analysis for HB 20 [included in the committee file], which read as follows [original punctuation provided]: Section 1: Page 1, lines 3-11 Section 1 amends AS 21.36 by adding a new section, AS 21.36.525, which prohibits insurers from charging an additional fee or different rate for individuals who prefer to receive paper copies of invoices, statements and other documents. This section does not, however, prevent an insurer from charging a fee for providing duplicate copies of any documents previously provided. Section 2: Page 1, lines 12-15, & page 2, lines 1-4 Section 2 amends AS 45.45 by adding a new section, AS 45.45.940, which prohibits businesses from charging an additional fee or a different rate for individuals who prefer to receive paper copies of invoices, statements and other documents. This section does not, however, prevent a business from charging a fee for providing duplicate copies of any documents previously provided. Section 2 defines "business" by the meaning given in AS 43.70.110, which states a business is "a for profit or nonprofit entity engaging or offering to engage in a trade, a service, a profession, or an activity with the goal of receiving a financial benefit in exchange for the provision of services, or goods or other property." Section 3: Page 2, lines 5-6 Section 3 adds to the list of unlawful business acts and practices in Title 45 to include violations of AS 45.45.940, established in Section 2 of this bill. 1:22:17 PM REPRESENTATIVE MINA asked how the prohibition of paper fees has impacted business fees or premiums in other states that have enacted a similar policy. MR. ELKINS shared his understanding that New York enacted a similar law and has not run into any issues. 1:23:02 PM CHAIR GRAY asked whether the bill would ban discounts for customers who choose to go paperless. REPRESENTATIVE SADDLER answered yes. He explained that there would be no cap on fees, but they cannot be differential. CHAIR GRAY pointed out that there are expenses associated with sending out paper bills, such as ink and postage, so going paperless is a cost savings to the business. REPRESENTATIVE SADDLER contended that doing business through paper is the status quo and changes to that need to be addressed. If businesses are saving money by using electronic billing and offering a discount to customers, that would be great, he opined, but to changing the status quo and charge an extra cost for that does not seem fair. He added that businesses still print out paper and do not proportionally apportion those costs to the client. He asserted that these customers are already paying a cost for service, and certain expenses should just be part of the cost of doing business. 1:25:29 PM CHAIR GRAY shared a scenario that further challenged the idea of eliminating discounts for paperless documents, which he characterized as government overreach. REPRESENTATIVE SADDLER stated that this is not intended to persist into the future forever, and those who prefer paper would "move onto other things" with time. He said this is intended to protect against digital costs. He added that small charges add up and every little bit hurts. CHAIR GRAY suggested amending the bill to only apply to places where sending online statements is not feasible or unreliable. REPRESENTATIVE SADDLER stated that there's no formal metric for reliable or unreliable internet service. He acknowledged that we live in a time where more people are availing themselves to internet services, but there are people who prefer not to operate that way and should not be penalized for doing so. 1:29:29 PM REPRESENTATIVE MINA commented on digital equity issues in her district and opined that the bill is a good step towards making [paper billing] available for everyone. 1:30:16 PM The committee took a brief at-ease at 1:30 p.m. 1:30:21 PM CHAIR GRAY opened public testimony on HB 20. After ascertaining that no one wished to testify, he closed public testimony. REPRESENTATIVE SADDLER added that HB 20 would not apply to state or government agencies. 1:31:55 PM CHAIR GRAY announced that HB 20 would be held over.