Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/28/2017 09:00 AM LABOR & COMMERCE

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Audio Topic
08:59:32 AM Start
09:00:21 AM Confirmation Hearings
09:43:42 AM SB98
10:39:26 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Governor's Appointees to State Boards & TELECONFERENCED
Commissions
Board of Registration for Architects, Engineers
and Land Surveyors
Alcoholic Beverage Control Board
Marijuana Control Board
-- Public Testimony on Appointees --
+= SB 51 EXTEND BOARD OF VETERINARY EXAMINERS TELECONFERENCED
Bill Postponed to 1:30 p.m. 3/28/17
-- Public Testimony --
*+ SB 93 CREDIT REPORT SECURITY FREEZE TELECONFERENCED
Bill Postponed to 1:30 p.m. 3/28/17
-- Public Testimony --
*+ SB 98 INSURER'S USE OF CREDIT HISTORY/SCORES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 28, 2017                                                                                         
                           8:59 a.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Shelley Hughes, Vice Chair                                                                                              
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
State Board of Registration for Architects, Engineers and Land                                                                
Surveyors                                                                                                                     
     John Kerr - Anchorage                                                                                                      
     Jeffrey Koonce - Anchorage                                                                                                 
                                                                                                                                
          CONFIRMATIONS HEARD AND HELD                                                                                          
                                                                                                                                
Alcoholic Beverage Control Board                                                                                              
     Robert Klein -Anchorage                                                                                                    
                                                                                                                                
          CONFIRMATION HEARD AND HELD                                                                                           
                                                                                                                                
Marijuana Control Board                                                                                                       
     Nicholas Miller - Anchorage                                                                                                
     Pete Mlynarik - Soldotna                                                                                                   
     Mark Springer - Bethel                                                                                                     
                                                                                                                                
          CONFIRMATIONS HEARD AND HELD                                                                                          
                                                                                                                                
SENATE BILL NO. 98                                                                                                              
"An Act relating  to insurer actions based on  credit history and                                                               
insurance scores  at insurance policy renewal;  and providing for                                                               
insurer  consideration of  consumer  requests  for exceptions  of                                                               
credit history or insurance scores."                                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 51                                                                                                              
"An  Act  extending   the  termination  date  of   the  Board  of                                                               
Veterinary Examiners; and providing for an effective date."                                                                     
                                                                                                                                
     - BILL HEARING POSTPONED TO 1:30 P.M. 3/28/2017                                                                            
                                                                                                                                
SENATE BILL NO. 93                                                                                                              
"An  Act  extending   the  termination  date  of   the  Board  of                                                               
Veterinary Examiners; and providing for an effective date."                                                                     
                                                                                                                                
     - BILL HEARING POSTPONED TO 1:30 P.M. 3/28/2017                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  98                                                                                                                  
SHORT TITLE: INSURER'S USE OF CREDIT HISTORY/SCORES                                                                             
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/23/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/17       (S)       L&C, FIN                                                                                               
03/28/17       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN KERR, Appointee                                                                                                            
State Board  of Registration for  Architects, Engineers  and Land                                                               
Surveyors                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee  to the State Board of                                                             
Registration for Architects, Engineers and Land Surveyors.                                                                      
                                                                                                                                
JEFF KOONCE, Appointee                                                                                                          
State Board  of Registration for  Architects, Engineers  and Land                                                               
Surveyors                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee  to the State Board of                                                             
Registration for Architects, Engineers and Land Surveyors.                                                                      
                                                                                                                                
ROBERT KLEIN, Appointee                                                                                                         
Alcoholic Beverage Control Board                                                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:  Testified  as appointee  to  the  Alcoholic                                                             
Beverage Control Board.                                                                                                         
                                                                                                                                
NICHOLAS MILLER, Appointee                                                                                                      
Marijuana Control Board                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Marijuana                                                                   
Control Board.                                                                                                                  
                                                                                                                                
PETE MLYNARIK, Appointee                                                                                                        
Marijuana Control Board                                                                                                         
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified as appointee to the Marijuana                                                                   
Control Board.                                                                                                                  
                                                                                                                                
MARK SPRINGER, Appointee                                                                                                        
Marijuana Control Board                                                                                                         
Bethel, Alaska                                                                                                                  
POSITION STATEMENT: Testified as appointee to the Marijuana                                                                   
Control Board.                                                                                                                  
                                                                                                                                
LAURIE WING-HEIER, Director                                                                                                     
Division of Insurance                                                                                                           
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Introduced SB 98 on behalf of the                                                                         
administration.                                                                                                                 
                                                                                                                                
CINDA SMITH                                                                                                                     
GEICO                                                                                                                           
Chevy Chase, Maryland                                                                                                           
POSITION STATEMENT: Testified in support of SB 98.                                                                            
                                                                                                                                
KRISTIE BABCOCK, Independent Agent                                                                                              
State Farm Insurance                                                                                                            
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SB 98.                                                                            
                                                                                                                                
ARMAND FELICIANO, Vice President                                                                                                
Property Casualty Insurers Association of America                                                                               
Sacramento, California                                                                                                          
POSITION STATEMENT: Testified in support of SB 98.                                                                            
                                                                                                                                
BRIAN DUFFY, Director                                                                                                           
Division of Administrative Services                                                                                             
Department of Military and Veterans Affairs                                                                                     
JBER, Alaska                                                                                                                    
POSITION STATEMENT: Offered supporting testimony for SB 98.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:59:32 AM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting to  order at 8:59 a.m.  Present  at the call to                                                               
order were Senators Stevens, Hughes, and Chair Coghill.                                                                         
                                                                                                                                
^Confirmation Hearings                                                                                                          
                     CONFIRMATION HEARINGS                                                                                  
                                                                                                                                
    Board of Registration for Architects, Engineers and Land                                                                  
                           Surveyors                                                                                          
                Alcoholic Beverage Control Board                                                                              
                    Marijuana Control Board                                                                                   
                                                                                                                                
9:00:21 AM                                                                                                                  
CHAIR COSTELLO  announced the  first order  of business  would be                                                               
confirmation  hearings  for  governor appointees  to  boards  and                                                               
commissions.  She  thanked the  nominees  for  their service  and                                                               
stated that the  process will be to hear from  the nominees, take                                                               
members'  questions,  take public  testimony,  and  then set  the                                                               
names aside for action in the future.                                                                                           
                                                                                                                                
Senator Gardner and Senator Meyer joined the committee.                                                                         
                                                                                                                                
9:01:14 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
9:03:28 AM                                                                                                                    
CHAIR  COSTELLO reconvened  the meeting  and asked  John Kerr  of                                                               
Anchorage to express  his interest in serving on  the State Board                                                               
of Registration  for Architects, Engineers and  Land Surveyors in                                                               
the land surveyor seat.                                                                                                         
                                                                                                                                
9:04:18 AM                                                                                                                    
JOHN   KERR,  Appointee,   State   Board   of  Registration   for                                                               
Architects,  Engineers  and  Land Surveyors,  Anchorage,  Alaska,                                                               
said he has been a land  surveyor in Alaska since the late 1970s.                                                               
This will  be his  second term  and he  has enjoyed  bringing his                                                               
private and public-sector experience to  this board in support of                                                               
the state.                                                                                                                      
                                                                                                                                
CHAIR  COSTELLO asked  if the  board faces  any challenges  going                                                               
forward.                                                                                                                        
                                                                                                                                
MR.  KERR  replied the  board  is  considering the  licensure  of                                                               
software engineering.  Because software is incorporated  in every                                                               
aspect  of  engineering,  there   are  life,  health  and  safety                                                               
considerations. This  will be a  large and interesting  topic for                                                               
the board to undertake.                                                                                                         
                                                                                                                                
SENATOR HUGHES asked  if land surveyors in Alaska  use drones and                                                               
if the board has discussed this topic.                                                                                          
                                                                                                                                
MR. KERR confirmed  that surveyors are using  drones for specific                                                               
types of  surveying. The board  has been actively  discussing the                                                               
topic  because their  use has  garnered  a lot  of attention.  He                                                               
opined that  they are a  good tool for certain  applications, but                                                               
they are not suitable for large projects.                                                                                       
                                                                                                                                
SENATOR HUGHES  noted the  legislative task  force on  drones and                                                               
welcomed his input at any time.                                                                                                 
                                                                                                                                
CHAIR  COSTELLO found  no further  questions or  public testimony                                                               
and thanked Mr. Kerr for being willing to serve.                                                                                
                                                                                                                                
CHAIR COSTELLO asked  Jeffrey Koonce of Anchorage  to express his                                                               
interest  in  serving on  the  State  Board of  Registration  for                                                               
Architects, Engineers and Land Surveyors in the architect seat.                                                                 
                                                                                                                                
9:08:59 AM                                                                                                                    
JEFFREY  KOONCE,  Appointee,  State  Board  of  Registration  for                                                               
Architects,  Engineers  and  Land Surveyors,  Anchorage,  Alaska,                                                               
said he  has been  an architect  in Alaska for  35 years  and has                                                               
followed  the regulations  for  licensure  closely. He  explained                                                               
that  he wanted  to give  back to  the community  and decided  to                                                               
submit  his  name after  a  friend  retired  from the  board  and                                                               
suggested he  apply. He  was first  appointed by  former Governor                                                               
Parnell and eagerly volunteered to renew.                                                                                       
                                                                                                                                
SENATOR  MEYER noted  that he  designed several  large commercial                                                               
buildings and asked if one was more challenging.                                                                                
                                                                                                                                
MR. KOONCE  said they are all  challenging in one way  or another                                                               
and he's usually most proud  of the current project. He described                                                               
the  patient housing  project located  behind  the Alaska  Native                                                               
Medical  Center that  has  a  Ronald McDonald  House  on the  top                                                               
floor. It took  six years to take that project  to completion and                                                               
it opened two months ago.                                                                                                       
                                                                                                                                
SENATOR  MEYER recalled  that the  state  issued a  bond on  that                                                               
project that  will be matched  by Medicaid. He commented  that he                                                               
attended the groundbreaking but hasn't visited it since.                                                                        
                                                                                                                                
MR. KOONCE  said it was  a win-win for  the state budget  and the                                                               
Native community for delivery of excellent health care.                                                                         
                                                                                                                                
SENATOR MEYER thanked Mr. Koonce for offering to serve again.                                                                   
                                                                                                                                
CHAIR  COSTELLO found  no further  questions or  public testimony                                                               
and thanked Mr. Koonce for being willing to continue to serve.                                                                  
                                                                                                                                
9:13:14 AM                                                                                                                    
CHAIR COSTELLO  asked Robert  Kline of  Anchorage to  express his                                                               
interest in  serving on the  Alcoholic Beverage Control  Board in                                                               
the industry seat.                                                                                                              
                                                                                                                                
9:13:45 AM                                                                                                                    
ROBERT  KLEIN,  Appointee,   Alcoholic  Beverage  Control  Board,                                                               
Anchorage,  Alaska, said  he has  been on  the board  for several                                                               
years and it would be an honor  to continue to serve. He said the                                                               
board has spent  the last six years working on  rewriting Title 4                                                               
and diverse interests have come together during the process.                                                                    
                                                                                                                                
CHAIR  COSTELLO  found  no  questions  or  public  testimony  and                                                               
thanked Mr. Klein for being willing to serve.                                                                                   
                                                                                                                                
CHAIR COSTELLO asked Nicholas Miller  of Anchorage to express his                                                               
interest  in  serving  on  the Marijuana  Control  Board  in  the                                                               
industry seat.                                                                                                                  
                                                                                                                                
9:16:11 AM                                                                                                                    
NICHOLAS MILLER,  Appointee, Marijuana Control  Board, Anchorage,                                                               
Alaska, said he is interested in  serving on the board because he                                                               
wants  to  join the  industry.  He  has  20 years  of  experience                                                               
working with assemblies and community  councils and has worked to                                                               
develop regulations for  another industry. He opined  that he has                                                               
a lot to offer in terms of regulation writing and public safety.                                                                
                                                                                                                                
SENATOR  STEVENS  asked  his   thoughts  about  onsite  marijuana                                                               
consumption,  particularly regarding  the issues  of second  hand                                                               
smoke and impaired driving.                                                                                                     
                                                                                                                                
MR. MILLER  said the largest  current concern is  onsite smoking.                                                               
Smaller  communities  in  Southeast  are  particularly  concerned                                                               
about how  to accommodate  cruise ship  tourists. He  opined that                                                               
there  is a  need for  consumption areas  as well  as a  need for                                                               
strict   rules.  He   shared  his   preference  to   allow  local                                                               
communities to have  a say about whether  onsite consumption will                                                               
take place.                                                                                                                     
                                                                                                                                
SENATOR  STEVENS  asked  him  to comment  on  driving  under  the                                                               
influence of marijuana if there are onsite consumption venues.                                                                  
                                                                                                                                
MR.  MILLER  said he  would  like  to  think  people will  be  as                                                               
conscientious  about driving  after consuming  marijuana as  they                                                               
are about  driving after consuming  alcohol. He pointed  out that                                                               
making marijuana  legal has not  increased the number  of arrests                                                               
for driving under the influence of marijuana.                                                                                   
                                                                                                                                
SENATOR  STEVENS asked  if  he supports  Alaska  being the  first                                                               
state to allow onsite consumption of marijuana.                                                                                 
                                                                                                                                
MR. MILLER  said he  does support  it primarily  because tourists                                                               
will consume  the marijuana they  purchase even if there  isn't a                                                               
designated area for consumption.                                                                                                
                                                                                                                                
9:21:26 AM                                                                                                                    
SENATOR  GARDNER  asked  if  it is  possible  to  determine  that                                                               
someone  is  under  the  influence  of  marijuana,  has  used  it                                                               
recently, or has used it in the past.                                                                                           
                                                                                                                                
MR.  MILLER replied  there  is no  test that  is  like the  blood                                                               
alcohol  tests, but  people  are arrested  based  on motor  skill                                                               
testing. This  has been going  on for  25 years and  it continues                                                               
today.                                                                                                                          
                                                                                                                                
CHAIR  COSTELLO found  no further  questions or  public testimony                                                               
and thanked Mr. Miller for being willing to serve.                                                                              
                                                                                                                                
CHAIR COSTELLO  asked Peter Mlynarik  of Soldotna to  express his                                                               
interest in  continuing to serve  on the Marijuana  Control Board                                                               
in the  public safety seat.  She noted  that he is  currently the                                                               
chief of police in Soldotna.                                                                                                    
                                                                                                                                
9:23:18 AM                                                                                                                    
PETER  MLYNARIK, Appointee,  Marijuana  Control Board,  Soldotna,                                                               
Alaska,  said  he  has  been  on the  board  since  2015  and  is                                                               
currently serving as chair. He is  eager to continue to serve and                                                               
believes that  it is  beneficial that  he has  been on  the board                                                               
since its inception and has 26 years in law enforcement.                                                                        
                                                                                                                                
CHAIR COSTELLO  asked him to  explain the  work he did  to gather                                                               
signatures  to  put a  commercial  marijuana  prohibition on  the                                                               
ballot in his [borough].                                                                                                        
                                                                                                                                
MR. MLYNARIK said  he did that as a private  citizen and resident                                                               
of the Kenai Peninsula Borough, not  as a member of the Marijuana                                                               
Control Board.  The regulations provide  that local  boroughs and                                                               
local governments can opt out and  he was one person who gathered                                                               
signatures for that  ballot initiative. He opined  that that does                                                               
not  affect his  ability to  serve on  the board.  "It's a  right                                                               
that's guaranteed  by local  governments and  people and  I don't                                                               
believe I should be excluded from  that right just because I'm on                                                               
the board."                                                                                                                     
                                                                                                                                
SENATOR STEVENS asked  his position on Alaska  becoming the first                                                               
state to  allow onsite  marijuana consumption  and the  issues of                                                               
second-hand  smoke   and  impaired   driving  after   leaving  an                                                               
establishment that offers onsite consumption.                                                                                   
                                                                                                                                
MR. MLYNARIK said  he believes the issue of  second-hand smoke is                                                               
a valid  concern for customers  and workers alike. The  board had                                                               
draft language  to address the matter,  but it was put  aside for                                                               
further  discussion.  He  said driving  under  the  influence  of                                                               
marijuana is more  difficult to test for than  alcohol, but there                                                               
are roadside  tests for balance,  reciting the alphabet,  and eye                                                               
tests.  The only  way to  accurately test  the amount  of THC  in                                                               
someone's blood  is through  a blood  test that  is sent  off for                                                               
analysis. There  is some  effort to design  a roadside  test, but                                                               
the science is not as defined as for alcohol.                                                                                   
                                                                                                                                
SENATOR  STEVENS  asked  if  he  expects  that  onsite  marijuana                                                               
consumption will be approved by the board.                                                                                      
                                                                                                                                
MR. MLYNARIK said he didn't know at this point.                                                                                 
                                                                                                                                
9:30:48 AM                                                                                                                    
SENATOR  HUGHES asked  if he  is  seeing a  growing problem  with                                                               
people who are  driving while impaired by  marijuana. She related                                                               
her understanding  that drivers  impaired by marijuana  may drive                                                               
too slowly.                                                                                                                     
                                                                                                                                
MR.  MLYNARIK responded  that motor  skills are  affected by  the                                                               
consumption of  both alcohol  and marijuana  although it  is more                                                               
difficult  to  discern  with  marijuana. He  said  he  could  not                                                               
confirm that there  is a growing problem of  people driving under                                                               
the influence of marijuana.                                                                                                     
                                                                                                                                
CHAIR  COSTELLO found  no further  questions or  public testimony                                                               
and thanked Mr. Mlynarik for being willing to continue to serve.                                                                
                                                                                                                                
CHAIR  COSTELLO asked  Mark  Springer of  Bethel  to express  his                                                               
interest in serving  on the Marijuana Control Board  in the rural                                                               
seat.                                                                                                                           
                                                                                                                                
9:33:26 AM                                                                                                                    
MARK  SPRINGER,  Appointee,   Marijuana  Control  Board,  Bethel,                                                               
Alaska, said  he has been privileged  to serve for the  past year                                                               
and  would  like  to  continue  to serve  as  this  new  industry                                                               
continues to develop.  He shared that he has lived  in Alaska for                                                               
40   years  and   he  has   considerable  interest   in  economic                                                               
development. Serving on the board is  a way to help diversify the                                                               
state's economy.                                                                                                                
                                                                                                                                
SENATOR  STEVENS asked  his  view of  Alaska  becoming the  first                                                               
state to  allow onsite  marijuana consumption  and the  issues of                                                               
second-hand  smoke   and  impaired   driving  after   leaving  an                                                               
establishment that offers onsite consumption.                                                                                   
                                                                                                                                
MR. SPRINGER said he shares  the concerns about second hand smoke                                                               
and he  also respects the  local authority to determine  the type                                                               
of  ventilation  that  will  be  necessary  to  ensure  workplace                                                               
safety.  Regarding  impaired  driving,  he  expressed  hope  that                                                               
people  will act  responsibly. Regarding  onsite consumption,  he                                                               
said the input has been that  tourists will want to know where to                                                               
purchase  and  consume  marijuana  onsite. The  public  has  also                                                               
argued in  favor of having  a place to consume  marijuana outside                                                               
their home.  He said he  has not made up  his mind on  the matter                                                               
but is cognizant of the both sides of the argument.                                                                             
                                                                                                                                
CHAIR  COSTELLO found  no further  questions or  public testimony                                                               
and thanked Mr. Springer for  being willing to serve. She thanked                                                               
all  the  nominees  and  stated  that  all  the  names  would  be                                                               
forwarded in a group on a future date.                                                                                          
                                                                                                                                
9:42:27 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB  98-INSURER'S USE OF CREDIT HISTORY/SCORES                                                                      
                                                                                                                                
9:43:42 AM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 98. She said  this is the first  hearing and                                                               
the  intent is  to hear  the introduction,  take questions,  take                                                               
public testimony, and hold the bill for further consideration.                                                                  
                                                                                                                                
9:44:38 AM                                                                                                                    
LAURIE  WING-HEIER, Director,  Division of  Insurance, Department                                                               
of   Commerce,  Community   and  Economic   Development  (DCCED),                                                               
introduced SB 98  on behalf of the  administration. She explained                                                               
that credit  scoring is a  tool that insurance companies  use for                                                               
personal lines of insurance for  homeowner, auto, watercraft, RV,                                                               
and motorcycle  insurance. She  clarified, "It  is not  used when                                                               
one is purchasing health insurance."                                                                                            
                                                                                                                                
A  consumer's credit  history is  one factor  insurance companies                                                               
use  to  determine an  insurance  score.  A consumer's  insurance                                                               
score  is predictive  of  their  risk of  filing  claims and  the                                                               
extent of  those claims. If  a consumer's credit  score improves,                                                               
he/she  may be  in a  preferred program,  but if  it deteriorates                                                               
he/she may be  in a less tiered program that  would have a higher                                                               
rate.                                                                                                                           
                                                                                                                                
SB 98 also  adds a provision for  extenuating life circumstances.                                                               
That gives a consumer who has had  a death in the family, loss of                                                               
employment, military deployment, or  other factors that a prudent                                                               
person would recognize as extenuating,  a right to appeal if they                                                               
feel  that their  insurance score  has  placed them  in a  tiered                                                               
program  that is  lower  than previously  or  has impacted  their                                                               
premium.                                                                                                                        
                                                                                                                                
9:47:20 AM                                                                                                                    
MS. WING-HEIER provided  a sectional analysis for  SB 98 speaking                                                               
to the following prepared document:                                                                                             
                                                                                                                                
     Section 1                                                                                                              
     The  subsection  is  amended   to  require  an  insurer                                                                    
     writing   personal    insurance   that    uses   credit                                                                    
     information  in underwriting  or rating  a consumer  at                                                                    
     the time  of renewal to  disclose to the  consumer that                                                                    
     the   insurer  will   obtain   credit  information   in                                                                    
     connection with the renewal. It  also replaces the word                                                                    
     "applicant's"    with    "consumer's"    because    the                                                                    
     requirement  now applies  to  both  new applicants  and                                                                    
     existing policyholders.                                                                                                    
                                                                                                                                
9:49:09 AM                                                                                                                    
SENATOR MEYER asked  if consumers will still be  required to sign                                                               
the waiver to allow the  insurance company to access their credit                                                               
history  to  determine  their insurance  score  each  time  their                                                               
policy is up for renewal.                                                                                                       
                                                                                                                                
MS. WING-HEIER answered no; consumers  will simply be notified of                                                               
the  fact. If  the  insurance  company found  an  issue with  the                                                               
insurance score,  they would notify  the consumer of  the options                                                               
to dispute the insurance score.                                                                                                 
                                                                                                                                
SENATOR  STEVENS  asked  why  this   does  not  apply  to  health                                                               
insurance and whether the bill makes that clear.                                                                                
                                                                                                                                
MS.  WING-HEIER clarified  that health  insurance has  never used                                                               
credit as an underwriting tool.                                                                                                 
                                                                                                                                
SENATOR STEVENS  asked if the bill  precludes insurance companies                                                               
from using the tool for health insurance.                                                                                       
                                                                                                                                
MS.  WING-HEIER  answered  yes,  in  part  due  to  do  with  the                                                               
guarantee of health insurance under the Affordable Care Act.                                                                    
                                                                                                                                
CHAIR COSTELLO  observed that people  with a lower  credit rating                                                               
have more to  gain from the bill as currently  written. She asked                                                               
Ms. Wing-Heier  if she has  information showing that  most people                                                               
have a good credit rating.                                                                                                      
                                                                                                                                
MS. WING-HEIER answered  yes; most Alaskans have  good credit, so                                                               
they have  an advantage  to get a  preferred program  in personal                                                               
insurance lines.  She related there have  been numerous instances                                                               
of people  calling the division  to ask why their  insurance went                                                               
up 25  or 30  percent. Oftentimes  it is  because they  failed to                                                               
sign the  waiver allowing  the insurance  company to  order their                                                               
credit history for  the renewal. She said it is  an oddity in the                                                               
law that  insurance companies  can order  credit history  for new                                                               
business  but  not  on  renewal unless  the  consumer  signs  the                                                               
waiver.  It's  an  inconvenience   for  consumers  and  insurance                                                               
companies alike.                                                                                                                
                                                                                                                                
SENATOR HUGHES  asked if Alaskans' generally  good credit ratings                                                               
cross socioeconomic lines.                                                                                                      
                                                                                                                                
MS. WING-HEIER replied the division  has found no data to support                                                               
the  notion that  income, gender,  nationality,  or race  impacts                                                               
credit.                                                                                                                         
                                                                                                                                
SENATOR HUGHES observed that the  bill would be beneficial to all                                                               
income levels in the state.                                                                                                     
                                                                                                                                
SENATOR GARDNER  asked if "no  data" means that the  studies that                                                               
have been done  do not show that different  population groups are                                                               
impacted differently,  or if it  means the study results  are not                                                               
conclusive.                                                                                                                     
                                                                                                                                
MS. WING-HEIER  clarified that a  Federal Trade  Commission study                                                               
showed that low income consumers  could have a good credit score.                                                               
She explained that when the  bill was drafted the division looked                                                               
at various  demographics to see if  it made a difference  and the                                                               
data  did  not  support  excluding  rural  Alaska,  lower  income                                                               
Alaskans, or those under age 26.                                                                                                
                                                                                                                                
9:56:09 AM                                                                                                                    
MS. WING-HEIER continued the sectional analysis for SB 98.                                                                      
                                                                                                                                
     Section 2                                                                                                              
     The  subsection  amends  the notice  required  when  an                                                                    
     adverse  action   is  taken   and  to   provide  notice                                                                    
     informing   the   consumer    of   extraordinary   life                                                                    
     circumstance  exemptions,  the process  for  requesting                                                                    
     such  an  exemption,  and that  they  must  request  an                                                                    
     exemption within 60 days.  The amendment also clarifies                                                                    
     that the notice of adverse action must be in writing.                                                                      
                                                                                                                                
     Section 3                                                                                                              
     The  subsection is  amended to  clarify the  statute by                                                                    
     adding  that  an insurer  may,  in  addition to  credit                                                                    
     history, use  a consumer's  insurance score  to cancel,                                                                    
     deny, nonrenew, underwrite,  or rate personal insurance                                                                    
     only    in   combination    with   other    substantive                                                                    
     underwriting factors.                                                                                                      
                                                                                                                                
     The subsection  is also amended  to provide that  if an                                                                    
     insurer uses  a consumer's credit history  or insurance                                                                    
     score, then not later than  24 months after the insurer                                                                    
     most  recently used  the consumer's  credit history  or                                                                    
     insurance  score to  underwrite or  rate a  policy, the                                                                    
     insurer shall reunderwrite and  rerate the policy based                                                                    
     on  the  consumer's  current   (1)  credit  history  or                                                                    
     insurance  score and  current risk  characteristics; or                                                                    
     (2) risk  characteristics but  not including,  in whole                                                                    
     or in part, the  consumer's credit history or insurance                                                                    
     score.                                                                                                                     
                                                                                                                                
     Section 4                                                                                                              
     This  section   eliminates  the  requirement   that  an                                                                    
     insurer first  obtain a written waiver  at each renewal                                                                    
     from  a  consumer  to underwrite  or  rate  a  personal                                                                    
     insurance  policy   based  on  the   consumer's  credit                                                                    
     history  or insurance  score. The  remaining paragraphs                                                                    
     in   the  subsection   are  renumbered   accordingly.is                                                                    
     amended to provide that the  prohibitions on the use of                                                                    
     credit scores  by insurers set  forth in  the paragraph                                                                    
     also   apply   to   nonrenewals.  This   section   also                                                                    
     establishes that an insurer may  not use credit history                                                                    
     to  cancel,  deny,  nonrenew,  underwrite,  or  rate  a                                                                    
     personal insurance  policy if  the history  is obtained                                                                    
     more  than  90  days  before the  policy  is  canceled,                                                                    
     denied, nonrenewed, underwritten,  or rated. It further                                                                    
     clarifies  that  the  paragraph  does  not  require  an                                                                    
     insurer to reevaluate a  consumer's credit history more                                                                    
     frequently than is required under AS 21.36.460(c).                                                                         
                                                                                                                                
SENATOR  HUGHES asked  if  the  provisions in  Sections  3 and  4                                                               
regarding credit history are in conflict.                                                                                       
                                                                                                                                
MS. WING-HEIER  explained that  Section 3  amends the  statute to                                                               
allow  an  insurer  to  use  both  the  credit  history  and  the                                                               
insurance score  of a consumer  that is  not more than  24 months                                                               
old.                                                                                                                            
                                                                                                                                
SENATOR HUGHES  pointed out that  Section 3 says the  insurer may                                                               
use  the credit  history  as one,  but not  the  only, factor  in                                                               
determining whether  to deny or  nonrenew, but Section 4  says an                                                               
insurer may not  use credit history to cancel,  deny, or nonrenew                                                               
related to a  timeframe. She continued to  question whether those                                                               
sections were in conflict.                                                                                                      
                                                                                                                                
10:01:23 AM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
10:02:44 AM                                                                                                                   
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
MS.  WING-HEIER  stated  that  the  intent of  Section  4  is  to                                                               
establish the timeline for using  credit history to cancel, deny,                                                               
nonrenew, underwrite,  or rate a personal  insurance policy. "You                                                               
have to use it  every 24 months but within that  24 months it has                                                               
to be not more than 90 days old."                                                                                               
                                                                                                                                
MS. WING-HEIER continued the sectional analysis for SB 98.                                                                      
                                                                                                                                
     Section 5                                                                                                              
     Section 5  is a new  section which requires  (except as                                                                    
     provided under AS 21.36.460(d))  an insurer that uses a                                                                    
     consumer's  credit   history  or  insurance   score  to                                                                    
     provide reasonable  exceptions to the  insurer's rates,                                                                    
     rating classifications,  company or tier  placement, or                                                                    
     underwriting  rules or  guidelines for  a consumer  who                                                                    
     has experienced, and whose  credit history or insurance                                                                    
     score  has  been  affected  by   one  or  more  of  the                                                                    
     following extraordinary life circumstances:                                                                                
   · a catastrophe, as declared by the director under AS                                                                        
     21.06.080;                                                                                                                 
   · a serious illness or injury, or a serious illness of                                                                       
     or injury to an immediate family member;                                                                                   
   · the death of a spouse, child, or parent;                                                                                   
   · divorce or the involuntary interruption of spousal                                                                         
     support or maintenance payments;                                                                                           
   · identity theft;                                                                                                            
   · loss of employment for three months or more as a                                                                           
     result of involuntary termination;                                                                                         
   · military overseas deployment; or                                                                                           
   · other extraordinary life circumstances where a prudent                                                                     
     person  would consider  an exception  to the  insurer's                                                                    
     rates,   rating   classifications,  company   or   tier                                                                    
     placement, or  underwriting rules  or guidelines  to be                                                                    
     reasonable.                                                                                                                
                                                                                                                                
     AS 21.36.461(b)                                                                                                          
     This  subsection   allows  an  insurer  to   require  a                                                                    
     consumer requesting an  exemption under 21.36.461(a) to                                                                    
     provide    reasonable    written   and    independently                                                                    
     verifiable  documentation  of  the  extraordinary  life                                                                    
     circumstances  and demonstrate  that the  circumstances                                                                    
     had a  direct and  meaningful effect on  the consumer's                                                                    
     credit information.                                                                                                        
                                                                                                                                
     AS 21.36.461(c)                                                                                                          
     This subsection  describes situations where  an insurer                                                                    
     may  grant an  exception  when a  consumer requests  an                                                                    
     exception under AS 21.36.460(b).                                                                                           
                                                                                                                                
     AS 21.36.461(d)                                                                                                          
     This  subsection provides  that an  insurer may  not be                                                                    
     considered  out  of  compliance  with  a  law  or  rule                                                                    
     relating to  underwriting, rating, or rate  filing as a                                                                    
     result  of granting  an exception  under this  section.                                                                    
     The subsection allows an insurer  to grant an exception                                                                    
     notwithstanding  its  approved  filings and  rates  and                                                                    
     does not require  the insurer to have  to submit filing                                                                    
     or  rate amendments  to the  division  for approval  in                                                                    
     order to grant the exception.                                                                                              
                                                                                                                                
     AS 21.36.461(e)                                                                                                          
     This subsection requires the  insurer to provide notice                                                                    
     to the consumer in writing  of its decision in granting                                                                    
     or not granting the request  for an exception not later                                                                    
     than  30 days  after  the  insurer receives  sufficient                                                                    
     documentation  of the  information  requested from  the                                                                    
     consumer under AS 21.36.461(b).                                                                                            
                                                                                                                                
     AS 21.36.461(f)                                                                                                          
     If an  exception is denied  and an adverse  action will                                                                    
     be maintained by the  insurer, this subsection requires                                                                    
     the insurer's  notice under AS 21.36.461(e)  to include                                                                    
     the  insurer's reason  for denying  the request  for an                                                                    
     exception and  for maintaining  the adverse  action and                                                                    
     notice of the consumer's right  to appeal the denial to                                                                    
     the director of the division of insurance.                                                                                 
                                                                                                                                
     AS 21.36.461(g)                                                                                                          
     This subsection  provides that the consumer  can appeal                                                                    
     the adverse  action to the  director not later  than 30                                                                    
     days after receiving the insurer's notice.                                                                                 
                                                                                                                                
     AS 21.36.461(h)                                                                                                          
     This subsection  requires the director of  the division                                                                    
     of  insurance  to make  a  decision  on the  consumer's                                                                    
     appeal  not  later than  30  days  after receiving  the                                                                    
     appeal  and  requires  the   director  to  provide  the                                                                    
     decision to  both the insurer  and to the  consumer and                                                                    
     outlines requirements for the basis of the decision.                                                                       
                                                                                                                                
     AS 21.36.461(i)                                                                                                          
     This subsection  provides that  the hearing  and appeal                                                                    
     procedures provided for in AS 21.06.180 -                                                                                  
     21.06.230 do  not apply  to consumer  appeals submitted                                                                    
     to the director under AS 21.36.461(g).                                                                                     
                                                                                                                                
     AS 21.36.461(j)                                                                                                          
     This  subsection   makes  clear  that  nothing   in  AS                                                                    
     21.36.461 may  be construed to provide  a consumer with                                                                    
     a cause  of action that  does not exist in  the absence                                                                    
     of this AS 21.36.461.                                                                                                      
                                                                                                                                
     AS 21.36.461[(k)]                                                                                                        
     This  subsection   provides  that  the   term  "adverse                                                                    
     action"  as  used in  AS  21.36.461  is limited  to  an                                                                    
     adverse action  defined under  AS 21.36.460(i)  that is                                                                    
     based  in whole  or  in part  on  the insured's  credit                                                                    
     history or insurance score as affected by one or more                                                                      
     extraordinary life circumstances.                                                                                          
                                                                                                                                
     The subsection also provides that the term "consumer"                                                                      
       has the meaning given in AS 21.36.460 and the term                                                                       
     "director" has the meaning given in AS 21.97.900.                                                                          
                                                                                                                                
         The subsection is amended to replace the term                                                                          
     "insured" with the term "consumer" for consistency.                                                                        
                                                                                                                                
10:06:15 AM                                                                                                                   
CHAIR COSTELLO  asked what a consumer  would need to do  to prove                                                               
identity theft.                                                                                                                 
                                                                                                                                
MS. WING-HEIER  replied the  first step would  be to  provide the                                                               
insurance  company with  reasonable  documentation  to show  that                                                               
their identity  was stolen.  She listed  LifeLock, the  bank, the                                                               
credit  card company,  or a  police  report as  examples of  what                                                               
would suffice to meet the statutory requirement of proof.                                                                       
                                                                                                                                
CHAIR COSTELLO  asked what the first  step would be to  dispute a                                                               
decision made by the insurance company.                                                                                         
                                                                                                                                
MS.  WING-HEIER replied  the first  step would  be to  go to  the                                                               
insurance company  to dispute the action  under the extraordinary                                                               
circumstance  provision.   If  the  insurance  company   and  the                                                               
consumer still do not agree the  next step is for the consumer to                                                               
go to the Division of Insurance for a ruling.                                                                                   
                                                                                                                                
CHAIR  COSTELLO asked  what the  bill says  about the  consumer's                                                               
insurance rate during the period of dispute.                                                                                    
                                                                                                                                
MS. WING-HEIER  replied the consumer  will be in the  higher risk                                                               
program during the  time they dispute the adverse  action. Once a                                                               
favorable decision is made, the  consumer would be placed back in                                                               
the program for which he/she is eligible.                                                                                       
                                                                                                                                
SENATOR  STEVENS asked  how long  extenuating life  circumstances                                                               
might last.                                                                                                                     
                                                                                                                                
MS. WING-HEIER  said she did  not believe the bill  prevents more                                                               
than one  appeal of  an adverse action.  Responding to  a further                                                               
question, she confirmed that the  insurance company would make an                                                               
annual analysis of the extraordinary circumstances.                                                                             
                                                                                                                                
10:10:10 AM                                                                                                                   
SENATOR HUGHES  asked if the  insurance company would  refund the                                                               
difference between the rates if the appeal was validated.                                                                       
                                                                                                                                
MS. WING-HEIER said yes.                                                                                                        
                                                                                                                                
SENATOR HUGHES asked how often  the appeal process is elevated to                                                               
the division director  for a decision. She noted  the zero fiscal                                                               
note and said she assumes that level of appeal would be rare.                                                                   
                                                                                                                                
MS.  WING-HEIER said  she believes  that the  insurance companies                                                               
will  try to  resolve  the disputes  at their  level,  but a  few                                                               
appeals will rise to the level of the division director.                                                                        
                                                                                                                                
SENATOR  GARDNER  asked if  consumers  get  a notice  of  adverse                                                               
action  that their  rates are  going up  because of  something in                                                               
their credit history.                                                                                                           
                                                                                                                                
MS.  WING-HEIER replied  that  is  one thing  the  bill does.  It                                                               
provides that  as of  January 1, 2019  an insurance  company will                                                               
send an  adverse action if  it finds something in  the consumer's                                                               
credit history that will cause  their score and policy premium to                                                               
go up.                                                                                                                          
                                                                                                                                
SENATOR  GARDNER  asked  what  happens   if  the  problem  is  an                                                               
inaccurate credit history that is taking time to clear up.                                                                      
                                                                                                                                
MS. WING-HEIER  said she would  take that as an  extenuating life                                                               
circumstance where a prudent person would consider an exception.                                                                
                                                                                                                                
SENATOR GARDNER asked for clarification  on the number of appeals                                                               
a consumer can  make and if rates can only  be adjusted annually,                                                               
even if the consumer pays monthly or quarterly.                                                                                 
                                                                                                                                
MS.  WING-HEIER   said  the  insurance  company   may  order  the                                                               
consumer's credit  history when  the policy  renews. Most  of the                                                               
time that is annually.                                                                                                          
                                                                                                                                
CHAIR COSTELLO  asked if rates  for the general  population would                                                               
likely  go up  if  the bill  passes  because insurance  companies                                                               
would need to plan for the different business model.                                                                            
                                                                                                                                
MS.  WING-HEIER  said  she  believes   rates  will  stabilize  or                                                               
decrease a little if the bill  were to pass, even with the appeal                                                               
process.                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO  observed  that  accommodating  extenuating  life                                                               
circumstances  will keep  rates  from dropping  as  much as  they                                                               
might  because insurance  companies  must take  into account  the                                                               
likelihood of more appeals.                                                                                                     
                                                                                                                                
MS. WING-HEIER  clarified that  Alaska is not  the only  state to                                                               
insert extenuating life circumstances  in the insurance statutes.                                                               
Also,  insurance  company  processes already  include  an  appeal                                                               
provision. Accommodating extenuating  life circumstances won't be                                                               
a large factor for increasing rates in Alaska.                                                                                  
                                                                                                                                
SENATOR   MEYER   expressed    concern   about   the   additional                                                               
administrative burden the bill places  on insurance companies. He                                                               
asked if  it is fair  to say that Section  5 is important  to the                                                               
governor and  that may be one  of the reasons that  he vetoed the                                                               
bill the legislature passed last year.                                                                                          
                                                                                                                                
10:19:54 AM                                                                                                                   
MS. WING-HEIER  clarified that the  bill last year  contained the                                                               
language in Section 5. The difference  is that SB 98 includes the                                                               
prudent person and that the  final decision maker on the validity                                                               
of the appeal is the director of the Division of Insurance.                                                                     
                                                                                                                                
SENATOR MEYER asked why the governor vetoed the bill last year.                                                                 
                                                                                                                                
MS.  WING-HEIER replied  it related  to the  adverse action.  The                                                               
governor  was very  concerned  that the  insurer  would tell  the                                                               
consumer both  that their insurance score  had gone up due  to an                                                               
adverse action and the result of the appeal.                                                                                    
                                                                                                                                
CHAIR COSTELLO  asked if the division  is the best place  to send                                                               
the final recourse  action and if there was  any discussion about                                                               
sending it to an existing board.                                                                                                
                                                                                                                                
MS.  WING-HEIER  said they  did  look  at  other means,  but  the                                                               
division  already has  the established  processes  to handle  the                                                               
appeals. After looking  at the options, they  determined it would                                                               
be  more  time  and  cost  effective  to  handle  it  within  the                                                               
division.                                                                                                                       
                                                                                                                                
CHAIR  COSTELLO asked  if Section  5  is identical  to the  model                                                               
language from  the National  Conference of  Insurance Legislators                                                               
(NCOIL).                                                                                                                        
                                                                                                                                
MS.   WING-HEIER   said   a  lot   is   word-for-word   but   the                                                               
administration added  the prudent  person, the notice  of adverse                                                               
action, and that the director  of the Division of Insurance shall                                                               
be the final decision maker on an appeal.                                                                                       
                                                                                                                                
CHAIR COSTELLO  asked who  the final decision  maker is  in other                                                               
states.                                                                                                                         
                                                                                                                                
MS. WING-HEIER said she believes it is the insurer.                                                                             
                                                                                                                                
10:22:51 AM                                                                                                                   
SENATOR HUGHES asked  if part of the veto last  year was based on                                                               
concern that it might impact low income populations.                                                                            
                                                                                                                                
MS. WING-HEIER  said they looked  at that last year  when Senator                                                               
Huggin's bill was considered.                                                                                                   
                                                                                                                                
10:23:49 AM                                                                                                                   
MS. WING-HEIER continued the sectional review for SB 98.                                                                        
                                                                                                                                
     Section 6                                                                                                              
     This section is amended to exclude the exception appeal                                                                    
     process  under AS  21.36.461 from  the jurisdiction  of                                                                    
     Department of  Administration Office  of Administrative                                                                    
     Hearings (OAH).                                                                                                            
                                                                                                                                
CHAIR COSTELLO found no questions  and opened public testimony on                                                               
SB 98.                                                                                                                          
                                                                                                                                
10:24:46 AM                                                                                                                   
CINDA SMITH,  GEICO, Chevy Chase, Maryland,  stated that Director                                                               
Wing-Heier has eloquently  described SB 98 and Geico  is fully in                                                               
support  of  the  measure.  It   provides  good  protections  for                                                               
consumers. She urged the committee to pass the bill.                                                                            
                                                                                                                                
10:25:27 AM                                                                                                                   
KRISTIE  BABCOCK, Independent  Contractor, State  Farm Insurance,                                                               
Kenai, Alaska,  stated that the  problem in current law  that she                                                               
testified  to last  year is  still impacting  her customers.  She                                                               
said her  customers continue to  ask if  they must come  in every                                                               
year on every  policy and sign the waiver.  Sadly, when customers                                                               
don't sign  the waiver  their insurance rate  goes up,  she said.                                                               
One of  her employees works  exclusively on  contacting customers                                                               
about when their  policy will renew and reminding  them they need                                                               
to sign the  waiver, so they can get the  best rate they deserve.                                                               
She  urged  the  committee  to  pass  the  bill.  It  will  allow                                                               
consumers to shop with confidence  that there is stability in the                                                               
rating factors initially and upon renewal.                                                                                      
                                                                                                                                
SENATOR HUGHES asked  if she supports the changes  the bill makes                                                               
this year.                                                                                                                      
                                                                                                                                
MS.  BABCOCK replied  she does  support the  changes. She  opined                                                               
that  it makes  sense  that  the final  decision  rests with  the                                                               
director of insurance rather than the insurance company.                                                                        
                                                                                                                                
SENATOR GARDNER  asked if is it  too late to change  a rate going                                                               
forward if  a consumer doesn't  notice for two months  that their                                                               
rate has gone up.                                                                                                               
                                                                                                                                
MS. BABCOCK  said current  law prohibits  the insurer  from using                                                               
the consumer's credit on renewal  without a signed waiver. If the                                                               
policy  renews  without  the signed  authorization,  the  insurer                                                               
can't use their  credit characteristics after the  renewal. SB 98                                                               
would  allow  an   insurance  company  to  use   all  the  credit                                                               
characteristics  of the  customer  at each  renewal to  correctly                                                               
classify their risk.  Also, the consumer has 30 days  to appeal a                                                               
rate increase based on an extenuating life circumstance.                                                                        
                                                                                                                                
SENATOR GARDNER asked  why a consumer wouldn't  just cancel their                                                               
policy if their  rate goes up and the insurance  company can't do                                                               
anything.                                                                                                                       
                                                                                                                                
MS. BABCOCK  said that does  happen. The  downside is that  it is                                                               
irritating for the customer to  have to start a new relationship.                                                               
The  policy in  her office,  based on  her interpretation  of the                                                               
law,  is that  they cannot  write a  new policy  for an  existing                                                               
customer  that covers  the same  thing. She  deferred to  Sheldon                                                               
Winters for further explanation.                                                                                                
                                                                                                                                
SENATOR  GARDNER  expressed interest  in  knowing  whether it  is                                                               
state law or State Farm policy.                                                                                                 
                                                                                                                                
10:35:01 AM                                                                                                                   
ARMAND  FELICIANO,  Vice  President, Property  Casualty  Insurers                                                               
Association of  America, Sacramento, California, stated  that PCI                                                               
is part of  an insurance coalition supporting SB 98.  The bill is                                                               
a reasonable  middle ground that  would allow consumers  to enjoy                                                               
the benefits  of credit scoring and  put in place a  fair process                                                               
to resolve  credit disputes. The  bill addresses  the unnecessary                                                               
market  disruption  inherent  in  the  existing  statute  and  it                                                               
authorizes the division of insurance to resolve disputes.                                                                       
                                                                                                                                
10:35:53 AM                                                                                                                   
CHAIR COSTELLO asked  Mr. Duffy to comment on  Section 5 relating                                                               
to extraordinary life circumstances.                                                                                            
                                                                                                                                
BRIAN  DUFFY,  Director,  Division  of  Administrative  Services,                                                               
Department  of Military  and  Veterans Affairs,  said  he has  no                                                               
testimony  other  than  that   including  the  military  overseas                                                               
deployment provision  is a  benefit for  service members  and the                                                               
system in general.                                                                                                              
                                                                                                                                
10:36:51 AM                                                                                                                   
CHAIR COSTELLO found no questions  and closed public testimony on                                                               
SB 98.                                                                                                                          
                                                                                                                                
SENATOR GARDNER  asked Ms. Wing-Heier  to speak to whether  it is                                                               
state law or  company policy that prevents an  insurer from using                                                               
credit scores after a certain amount of time has passed.                                                                        
                                                                                                                                
10:37:21 AM                                                                                                                   
MS. WING-HEIER said  the division feels that  insurers or brokers                                                               
have  tried to  circumvent  the  law by  canceling  a policy  and                                                               
rewriting  it and  the  division  has not  looked  kindly if  the                                                               
insurer did not  get the signed waiver in the  file. She said the                                                               
division  has tried  to be  respectful of  consumers who  are not                                                               
happy with the existing statute  while also respecting the waiver                                                               
process  that is  written  in statute.  It  does not  necessarily                                                               
allow an  insurer to  cancel a  policy after  it renews  and then                                                               
rewriting it as new business.                                                                                                   
                                                                                                                                
CHAIR COSTELLO summarized that state  law is silent as to whether                                                               
an insurance company  can use the credit score  once the deadline                                                               
is passed and the interpretation is that it is prohibited.                                                                      
                                                                                                                                
MS. WING-HEIER agreed.                                                                                                          
                                                                                                                                
CHAIR  COSTELLO found  no further  questions  and held  SB 98  in                                                               
committee.                                                                                                                      
                                                                                                                                
10:39:26 AM                                                                                                                   
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 10:39 a.m.                                                                                                 

Document Name Date/Time Subjects
SB 93.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Sponsor Statement.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Sectional.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Fiscal Note.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Support Letter - Experian.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Support Letter - Equifax.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Background Document - CDIA Summary Statutes of Select States.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 93 - Background Document - CDIA Letter of Support.pdf SL&C 3/28/2017 9:00:00 AM
SB 93
SB 51 - Background Document - VET Licenses.pdf SL&C 3/28/2017 9:00:00 AM
SB 51
Alcohol Beverage Control Board - Fact Sheet.pdf SL&C 3/28/2017 9:00:00 AM
Alcohol Beverage Control Board - Roster.pdf SL&C 3/28/2017 9:00:00 AM
Alcohol Beverage Control Board Resume - Klein.pdf SL&C 3/28/2017 9:00:00 AM
Alcohol Beverage Control Board Resume - Leath.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors - Fact Sheet.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors - Roster.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors Resume - Johnston.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors Resume - Jones.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors Resume - Kerr.pdf SL&C 3/28/2017 9:00:00 AM
Architects, Engineers, Land Surveyors Resume - Koonce.pdf SL&C 3/28/2017 9:00:00 AM
Marijuana Control Board - Fact Sheet.pdf SL&C 3/28/2017 9:00:00 AM
Marijuana Control Board - Roster.pdf SL&C 3/28/2017 9:00:00 AM
Marijuana Control Board Resume - Miller.pdf SL&C 3/28/2017 9:00:00 AM
Marijuana Control Board Resume - Mlynarik.pdf SL&C 3/28/2017 9:00:00 AM
Marijuana Control Board Resume - Springer.pdf SL&C 3/28/2017 9:00:00 AM
SB 98 - Background Document.pdf SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98 - Fiscal Note DCCED.PDF SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98 - Sectional Analysis.pdf SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98 - Support Letter - NAIMC.pdf SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98 - Support Letter - State Farm.PDF SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98 - Transmittal Letter.pdf SL&C 3/28/2017 9:00:00 AM
SB 98
SB 98.PDF SL&C 3/28/2017 9:00:00 AM
SB 98