HB 56-UNFAIR TRADE PRACTICES ATTY FEES/COSTS CHAIR ANDERSON announced that the next order of business would be HOUSE BILL NO. 56, "An Act relating to the attorney fees and costs awarded in certain court actions relating to unfair trade practices; and, if considered court rule changes, amending Rules 54(d), 79, and 82, Alaska Rules of Civil Procedure." Number 2243 REPRESENTATIVE LES GARA, Alaska State Legislature, spoke as the sponsor of HB 56 and noted that the Senate has a companion bill sponsored by Senator Dyson. He informed the committee that as of a couple of years ago, Alaska has the smallest Consumer Protection Department in the country, which was because of fiscal constraints. He estimated that there is probably the same amount of fraud in this state as there is in any other state. However, the state isn't able to help those who are victimized by this; the cases tend to be small and the attorney general's office helps those they can. He explained that HB 56 merely says that if the attorney general's office represents someone in a consumer fraud case, the full enforcement costs and full attorney's fees should be rewarded if the [consumer] prevails. Representative Gara viewed this legislation as a smart way to deal with consumer fraud while dealing with budget problems at the same time. The full enforcement costs and attorney's fees can be plowed back into more consumer protection, and hopefully the state will move past the current situation in which [only] one-and-a-half attorneys are working on consumer fraud cases. He recalled 10 years ago when there were about eight attorneys and a host of investigators working on consumer protection cases. This legislation is a way in which for there to be a consumer enforcement presence without an impact on the budget. He noted that the Attorney General's Office supports HB 56. In fact, the administration has stated it would like to have a better consumer enforcement presences. Number 2355 REPRESENTATIVE GUTTENBERG moved to adopt CSHB 56, Version 23- LS0300\H, Bannister, 2/24/03, as the working document. There being no objection, Version H was before the committee. TAPE 03-41, SIDE B Number 2367 REPRESENTATIVE ROKEBERG asked if Rule 82 applies now and this legislation would abrogate Rule 82. REPRESENTATIVE GARA confirmed that this legislation would abrogate Rule 82. He explained that currently the state is entitled to Rule 82 fees, which are roughly 20 percent of its fees. Similar to the federal government, in certain areas in which prosecutions are important, laws have been passed to allow the state and federal government to recover full attorney's fees. In federal and state antitrust law and federal and state hazardous waste law, the enforcement authorities receive full attorneys fees; this legislation would be along the same vein. He highlighted that this legislation would be a rule change, and therefore would require a two-thirds vote. REPRESENTATIVE ROKEBERG recalled that he had worked on the legislation that allowed private causes of action and recovery for that. He asked if the aforementioned wasn't working, and therefore the attorney general has to deal with these cases. REPRESENTATIVE GARA explained that in 1997 the legislature passed a law specifying that private individuals who push a consumer right's case on their own can receive full compensation for their attorney's time. Although the private bar has taken quite a few of these cases, the attorney general's office says that many people come to them and they can't help them the way they would like. Therefore, this legislation would allow the attorney general's office to increase its staff a bit in order to take on these cases. [The 1997 legislation] hasn't worked as well as was hoped. REPRESENTATIVE GARA, in response to Representative Gatto, clarified that Rule 82 allows the prevailing party to recover roughly 10-20 percent of attorney's fees. Number 2285 REPRESENTATIVE LYNN asked if this legislation will help consumers and the state's budget situation. REPRESENTATIVE GARA replied yes. Number 2270 REPRESENTATIVE LYNN moved to report CSHB 56, Version 23- LS0300\H, Bannister, 2/24/03, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 56(L&C) was reported from the House Labor and Commerce Standing Committee.