HB 291 - CONSUMER PROTECTION INTERN PROGRAM Number 394 REP. JERRY SANDERS, prime sponsor for HB 291, read the following sponsor statement: "This bill provides for a program for University of Alaska students to work with the fair business practices section of the Department of Law. The program will provide university credit and invaluable experience for the students plus a stipend. The student interns will be involved with the fair business practices section of the Department of Law. "In recent years, the fair business practices section of the Department of Law has been cut from 13 to 3 people. The student interns will be able to assist in developing cases and providing needed follow-up on other cases and in return will receive valuable experience in the world of business and business law. This program will also provide hands-on experience in business ethics for the students. "Alaskans are being ripped off nightly by unscrupulous telemarketers primarily based in the lower forty eight. Victims, especially in the remote bush areas of the state have little practicable recourse. Alaska has a telemarketing law that makes the crime a felony with the possibility of extradition of offenders and serious fines. Currently, telemarketing enterprises who violate the law are merely sent a copy of the law and regulations. "Without the availability of additional staff, vulnerable members of our constituency will not be protected, because laws do not enforce themselves." REP. SANDERS referred to the two committee substitute changes: 1) On page 1, line 8, delete "must" and add "may" and 2) on page 1, line 11, delete "may not participate for more than one semester." He explained attending more than one semester would allow the student more time for experience and learning. REP. BUNDE moved to adopt the committee substitute for HB 291. (Chair Toohey then turned the gavel over to Rep. Bunde to preside over the remainder of the meeting. Chair Bunde indicated for the record that Rep. Kott arrived at 3:40 p.m.) CHAIR BUNDE asked if students were interested in participating in this internship. REP. SANDERS responded it was his understanding that students had expressed interest in the program. Number 486 ALLISON ELGEE, Statewide Budget Director, University of Alaska, said the university system supports this type of internship programs. She said there are cooperative agreements with several agencies regarding different intern programs. She stated there is currently no agreement with the Department of Law's consumer protection program because their staffing level is not adequate to provide for supervision. She said interns are required to be supervised by an attorney, although the attorney need not be present on a full-time basis. She said legislation is not necessary to establish the intern program; the problem lies with staffing at the Department of Law. She concluded by saying internships presently do not involve stipends. CHAIR BUNDE asked if not having a stipend would be detrimental in getting students involved in the program. MS. ELGEE said if only one internship paid a stipend and the other programs did not, this could be a problem. REP. G. DAVIS said this is the third intern program he is aware of and wondered if the universities are moving in the direction of developing more internship programs. MS. ELGEE said she did not know but could find out. Number 553 REP. G. DAVIS asked if it was possible to hold the program during the summer months. MS. ELGEE said she did not know if the paralegal program was offered during the summer, but she could find this out as well. Number 568 CHAIR BUNDE recommended passage of the committee substitute without the fiscal note, so this internship would be on the same footing as other intern programs. Number 576 REP. TOOHEY wondered if it was legal to include the fiscal note. Number 583 CHAIR BUNDE said he thought it was legal but it would set a precedent. Number 588 MS. ELGEE referred to page 1, line 11, "and shall receive a stipend" and said the fiscal note reflects the language in the legislation, so the legislation itself would need to be modified. Number 590 REP. TOOHEY asked if it was wise to put an amount in the bill, and asked if the word "stipend" could be used instead of a specific amount. Number 597 CHAIR BUNDE mentioned the other programs do not receive any stipend and it might be wiser to strike that last sentence. Number 600 REP. KOTT asked if legislative interns receive a stipend. MS. ELGEE answered in the affirmative. She added that none of the other paralegal programs receive stipends. Number 611 REP. KOTT said the reason for the stipend is to defray costs in coming to Juneau, and asked if travel would be involved in this program. CHAIR BUNDE said he thought the program would take place locally. REP. TOOHEY asked what the stipend amount was for the legislative intern program. After some discussion she was informed the stipend was $3,000 to $3,500 per person per session. Number 622 CHAIR BUNDE asked for the pleasure of the committee. Number 632 REP. G. DAVIS moved to pass committee substitute for HB 291 to the Finance Committee with individual recommendations with the accompanying fiscal note. Number 636 CHAIR BUNDE stated he would object, and called on Rep. Vezey. Number 637 REP. VEZEY said other intern programs are funded through the university system and do not get special appropriations. TAPE 94-56, SIDE B Number 042 REP. VEZEY continued by saying he had nothing against the consumer protection intern program, but thought it could be implemented with the regulations that are currently on the books. Number 045 CHAIR BUNDE said this bill expresses legislative intent to see the program realized and possibly the funding as well. CHAIR BUNDE stated there was a motion before the committee and before calling the roll he asked Rep. Sanders for a wrap-up. REP. SANDERS said he had no problem deleting the last sentence referring to the $1,000. REP. G. DAVIS withdrew his motion to allow for amendments if so desired. Number 065 CHAIR BUNDE asked for the pleasure of the committee. Number 067 REP. TOOHEY pointed out the Department of Law would be delighted to implement an internship program and she wondered what would prevent this if the $1,000 stipend was removed. Number 073 REP. VEZEY made a motion to amend the committee substitute by striking the last sentence. CHAIR BUNDE hearing no objection to the amendment, adopted the amendment, striking the sentence that referred to the stipend. Number 081 REP. VEZEY moved to adopt a zero fiscal note for HB 291. Number 082 CHAIR BUNDE hearing no objection, adopted a zero HESS Committee fiscal note. Chair Bunde asked for the pleasure of the committee. Number 086 REP. VEZEY moved to pass committee substitute for HB 291 as amended from the HESS committee with individual recommendations. Number 089 CHAIR BUNDE asked that a roll call be taken. Representatives Bunde, G. Davis, Vezey, and Kott voted yea and Representative Toohey voted nay. Chair Bunde declared that HB 291 passed out of committee with the accompanying fiscal note. Number 096 CHAIR BUNDE brought HB 422 to the table and stated that since there had already been considerable discussion on this bill, he would like to wrap it up and call for a vote.