HOUSE BILL NO. 131 An Act increasing the criminal classification of theft of an access device and of obtaining an access device or identification documents by fraudulent means; increasing the criminal classification for certain cases of fraudulent use of an access device; and providing for an effective date. HOUSE BILL NO. 132 An Act relating to sentencing for certain crimes committed against the elderly; and providing for an effective date. Co-Chair Meyer stated that HB 131 and HB 132 would be addressed together, noting that they are "nearly" companion bills. REPRESENTATIVE BILL STOLTZE, SPONSOR, indicated that he has had been a long-standing interest in concerns and issues for seniors. The Administration approached him to carry some senior citizen protection legislation. He deferred to Mr. Ruaro and Mr. Milligan for the details of the bills. 3:15:04 PM RANDY RUARO, LEGISLATIVE REVIEW SECTION, DEPARTMENT OF LAW, offered to answer questions of the Committee. BEN MULLIGAN, STAFF, REPRESENTATIVE BILL STOLTZE, provided an overview of the legislation. He stated that identity theft is on the increase in Alaska and our country as a whole. The Federal Trade Commission (FTC) reported that identity theft was up 33% in 2003. The State of Alaska ranks second in the number of complaints per 100,000 people. That type of theft averages about $500 dollars; however, it does not take into consideration the countless hours a victim may spend tracking down and stopping the imposter, as well as time and legal costs to repair credit ratings and fight collection efforts. The proposed changes would bring the penalties for such crimes closer in line with federal criminal law that provide for as much as 15 years in prison for similar circumstances. The provisions of HB 131: · Increase the penalty from a class A misdemeanor to a class C felony for: 1. Theft of an access device, such as a credit card or bank account number. 2. The crime of fraudulent use of an access device if the value of the property or services obtained is $50 or more. 3. The crime of obtaining an access device or identification document by fraudulent means. Mr. Mulligan continued that the population of older citizens in Alaska is growing rapidly, as are the crimes that affect them. The physical, emotional, and financial impact of crimes against the person and theft and related crimes on the elderly can be devastating. HB 132 would increase the penalty one level for certain crimes against a person and for theft and related crimes, if the perpetrator acted with reckless disregard that the victim was an older citizen. The provisions of HB 132: · Increase the penalties for crimes against the elderly one level. For example, assault in the fourth degree, a class A misdemeanor, would be a class C felony if the assault was committed to a person 65 years of age or older. 3:17:19 PM JOHN SKIDMORE, (TESTIFIED VIA TELECONFERENCE), ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, testified in support for both HB 131 and HB 132. He spoke in length about the problems associated with identify theft and how that related to the vulnerable senior population. He urged passage of the legislation and offered to answer questions. 3:19:45 PM Vice-Chair Stoltze indicated his appreciation for Mr. Skidmore's work done on the bills. 3:20:15 PM MICHELLE LOGAN, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE POLICE DEPARTMENT, DETECTIVE, PROPERTY CRIMES UNIT, ANCHORAGE, testified in support for HB 131 and HB 132. She noted an increase in identify theft in the past three years throughout the State. She claimed that mostly what is happening is the misuse of credit cards; the proposed bills would address that theft type. The bill will allow law enforcement to better combat the ever-increasing theft. She pointed out that forgery is now taken seriously, punished at a C felony; whereas, in the past, those crimes were classified as misdemeanors. Ms. Logan spoke to current cases and how the legislation would affect the crime results if the victim was over 65 years of age. She stressed how much more vulnerable that population group is. There are circumstances where swindlers look and talk like worthy people. It takes "intent" on the criminal's part when they are dealing with the elderly. 3:29:56 PM JAY FOLEY, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTOR, NATIONAL IDENTITY THEFT RESOURCE CENTER, noted support for the proposed legislation. There was a completed study in 2003, which charted 600 hours as the amount of time that it could take to reclaim a persons identify. Many victims claim that the imposter gets away. HB 131 increases that crime to a felony, which Mr. Foley thought would be an "excellent step". He added that HB 132 is also a good bill. Mr. Foley noted that senior citizens are good targets as they do not use their credit cards as much. Additionally, sometimes faced with memory lapse and disorientation. He believed that some seniors are afraid to admit that they are victims of fraud and identify theft for fear of loosing their ability to live alone and the stigma that is associated with that. He urged passage of the legislation. 3:33:31 PM MARIE DARLIN, ALASKA ASSOCIATION OF RETIRED PEOPLE (AARP), JUNEAU, spoke in support of the legislation. She noted that AARP is an organization that supports consumer issues. She urged that the Committee move the bills. 3:34:57 PM Co-Chair Meyer agreed that these are good and timely bills. Vice-Chair Stoltze thanked Ms. Darlin for her help on the legislation. 3:35:27 PM SAM TRIVETTE, ALASKA ASSOCIATION OF RETIRED PEOPLE (AARP), testified in support of the legislation. He stressed that the impact upon victims is huge. Often times, when dealing with identity theft, the person is dealing with someone in another state. Changing the status of the crime to a felony makes it much more real. He echoed concerns with the devastation and the amount of time that it takes to deal with these crimes. He did not think that there would be a dramatic fiscal impact with passage of the legislation. 3:37:51 PM Representative Kelly suggested that the best benefit could be public education. Mr. Trivette noted that AARP had sponsored statewide seminars addressing these concerns. He agreed that more public education would be helpful. 3:38:51 PM Co-Chair Meyer asked about the additional costs moving the crime status from a misdemeanor to a felony. He questioned the Public Defender's fiscal note and inquired if the requested two-thirds attorney fee would be made up in the requested costs. LINDA WILSON, (TESTIFIED VIA TELECONFERENCE), DEPUTY DIRECTOR, PUBLIC DEFENDER AGENCY, DEPARTMENT OF ADMINISTRATION, ANCHORAGE, commented on the fiscal note request of $129 thousand dollars for HB 132 plus two thirds position for an attorney. The contract attorney would be an employee of the State but would not be full time. Representative Hawker referenced HB 131, referencing the indeterminate fiscal note. Ms. Wilson acknowledged that the Committee could decide what is best; however, the Agency does not submit an indeterminate note "lightly". She stated that the Public Defenders office believe there would be a fiscal impact. When the offense is raised to a felony, the theft of a credit card, or access device, which could include a single check, raise to a felony, the use of a credit to $50 dollars. The change would lower it from $500 dollars to $50 dollars. She believed that there would be a noticeable increase in charges brought forward. Ms. Wilson thought that there would be a lot of younger people charged with using fake identification (ID). There are no specific numbers in the amount of theft cases that can break it down. 3:42:59 PM Vice-Chair Stoltze MOVED to report HB 131 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 131 was reported out of Committee with a "do pass" recommendation and with zero note #1 by the Department of Corrections, zero note #2 by the Department of Law, zero note #3 by the Department of Public Safety and indeterminate note #4 by the Department of Administration. Vice-Chair Stoltze MOVED to report CS HB 132 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 132 (JUD) was reported out of Committee with a "do pass" recommendation and with a new fiscal note by the Alaska Court System, a new fiscal note by the Department of Administration, zero note #1 by the Department of Law, zero note #2 by the Department of Public Safety and indeterminate note #3 by the Department of Corrections. AT EASE: 3:44:37 PM RECONVENE: 3:46:45 PM