CSHB 399(FIN)-ELDER FRAUD AND ASSISTANCE/OPA    4:22:31 PM CHAIR THERRIAULT announced HB 399 to be up for consideration. SUE WRIGHT, Staff to Representative Mike Chenault, characterized HB 399 as an event driven piece of legislation that establishes a pilot program to address the issue of elder abuse in Alaska. 4:24:16 PM CHAIR THERRIAULT noted that the bill establishes a new section and asked if the legislation is separate from the office of elder abuse. MS. WRIGHT replied when the catalyst case came to light, the Alaska Office of Public Advocacy (OPA) stepped forward to help. Because of its standards, background and legal experience it is best qualified to handle elder abuse cases. She related that Josh Fink, OPA Director, has done a remarkable job of increasing efficiency so that the office is able to take on such cases at a very small cost. SENATOR KIM ELTON asked if the definition of fraud would extend to Internet scams. MS. WRIGHT replied fraud takes many forms but she believes that the federal government could handle Internet fraud better than other entities. PAT LUBY, Advocacy Director for AARP in Alaska, encouraged support for HB 399 saying that elderly people are difficult to educate about fraud and they are particularly vulnerable. The more that can be done to shine a light on elder fraud and punish the perpetrators the more helpful it will be to Alaskans of all ages. 4:29:00 PM ED SNIFFEN, Assistant Attorney General, Department of Law (DOL), stated support for HB 399. The one concern is that without clarifying language the bill could preempt and prohibit the attorney general from enforcing Alaska's Consumer Protection Act. Although the DOL routinely investigates and prosecutes crimes involving elder fraud, there is a statutory exemption that would prohibit it from doing that if another state agency is already doing the same thing. He asked that clarifying language be inserted and advised that the DOL is excited that there will be an additional resource to utilize to help combat fraud targeting the elderly. CHAIR THERRIAULT asked Ms. Wright if the sponsor had contemplated that issue. MS. WRIGHT responded when the case came to light she contacted the attorney general's office and was told to contact the U.S. Attorney and the FBI. In doing research she found that elder abuse complaints had been filed in the state but none had been prosecuted. CHAIR THERRIAULT asked Mr. Sniffen to review the section of existing statute that he referenced. MR. SNIFFEN replied the exemption is found in AS 45.50.481 and reiterated his previous explanation. CHAIR THERRIAULT remarked it seems to be an unanticipated consequence that the drafter could deal with it rather easily. MR. SNIFFEN suggested adding subsection (g) on page 4 after line 15. It would read as follows: "Nothing in this section shall prohibit the attorney general from investigating or prosecuting unfair or deceptive acts or practices under AS 45.50.471." CHAIR THERRIAULT questioned whether OPA is able to prosecute. MR. SNIFFEN replied the way he reads the bill they do have the ability to bring civil cases against perpetrators. CHAIR THERRIAULT asked Ms. Wright if she wanted to work with the drafter before the bill moved from committee. MS. WRIGHT said her preference is to move the bill with the understanding that it will be clarified that it wouldn't interfere with the DOL investigating and prosecuting fraud or crimes against Alaska residents. She added that she believes the last section allows that to happen, but she isn't certain. This is the first time I've heard this complaint and I'm surprised to hear it at this point, she said. SENATOR ELTON moved conceptual Amendment 1 to include the language as proposed by Mr. Sniffen. CHAIR THERRIAULT announced that without objection, Amendment 1 passed. He noted the new fiscal note dated April 20, 2006, which brings the cost down to $189,000. SENATOR WAGONER motioned to report SCS CSHB 399(STA) and attached fiscal note(s) from committee with individual recommendations. There being no objection, it was so ordered.