Legislature(2005 - 2006)HOUSE FINANCE 519
03/02/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB395 | |
| HB394 | |
| HB321 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 321 | TELECONFERENCED | |
| + | HB 394 | TELECONFERENCED | |
| = | HB 395 | ||
HOUSE FINANCE COMMITTEE
March 2, 2006
1:42 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:42:38 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Beth Kerttula
Representative Carl Moses
ALSO PRESENT
Representative Jay Ramras; Konrad Jackson, Staff,
Representative Kurt Olson; Mike Pawlowski, Staff,
Representative Kevin Meyer; Sheldon Winters, State Farm
Insurance Representative; Jane Pierson, Staff,
Representative Jay Ramras
PRESENT VIA TELECONFERENCE
Quinlan Steiner, Director, Office of Public Defender,
Anchorage; Josh Fink, Public Advocate, Office of Public
Advocacy, Anchorage
SUMMARY
HB 321 An Act relating to high risk operation of a motor
vehicle, aircraft, or watercraft while under the
influence of an alcoholic beverage, inhalant, or
controlled substance and to refusal to submit to a
chemical test.
HB 321 was HEARD and HELD in Committee for further
consideration.
HB 394 An Act relating to allowing insurance policies to
be filed, approved, and delivered in languages
other than English if an official English language
version is also provided.
CS HB 394 (L&C) was reported out of Committee with
a "no" recommendation and with zero note #1 by the
Department of Commerce, Community & Economic
Development.
HB 395 An Act extending the period of the fire season.
CS HB 395 (FIN) was reported out of Committee with
a "do pass" recommendation and with a new zero
note by the House Finance Committee.
1:43:18 PM
HOUSE BILL NO. 395
An Act extending the period of the fire season.
Co-Chair Chenault MOVED to ADOPT work draft #24-LS1550\F,
Bullock, 3/2/06, as the version of the legislation before
the Committee. There being NO OBEJCTION, it was adopted.
KONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, SPONSOR,
explained the changes that had been made. The committee
substitute adds an immediate effective date and changes the
date of the fire season by adding a month to the beginning
and ending one month earlier. With that change, the fiscal
note was zeroed out. Mr. Jackson noted a conceptual
amendment, which would change the title.
1:45:22 PM
Representative Kelly indicated that he supports the
committee substitute. He appreciated the sponsor's help in
reaching the zero note.
1:46:34 PM
Co-Chair Meyer MOVED to ADOPT conceptual Amendment #1, which
would make changes to Page 1, Line 1, after "An Act",
deleting "extending" and inserting "relating to". Co-Chair
Chenault OBJECTED.
Co-Chair Meyer explained that intent of the amendment was to
make a necessary title change. Co-Chair Chenault WITHDREW
his OBJECTION. There being NO further OBJECTION, it was
adopted.
1:47:43 PM
Representative Foster MOVED to REPORT CS HB 395 (FIN) out of
Committee with individual recommendations and with the new
zero note. There being NO OBJECTION, it was so ordered.
CS HB 395 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new zero note by the House
Finance Committee.
1:48:29 PM
HOUSE BILL NO. 394
An Act relating to allowing insurance policies to be
filed, approved, and delivered in languages other than
English if an official English language version is also
provided.
MIKE PAWLOWSKI, STAFF, REPRESENTATIVE KEVIN MEYER, explained
that HB 394 would remove an obstacle that prevents companies
from serving the 80,000 Alaskans that currently speak a
language other than English.
The problem is that in current statute, there is no
provision, designating which version of an insurance policy
or associated materials would be the official version. At
this time, all materials are published in English.
Designating an official version in English would allow
companies to service their customers better.
1:49:58 PM
Representative Weyhrauch questioned if the Department of
Commerce, Community & Economic Development supports the
change.
1:50:24 PM
Mr. Pawlowski responded that the Division of Insurance
representative was not able to come to the meeting. He
noted the letter in member's indicating support.
Representative Weyhrauch asked why the bill was needed.
1:50:55 PM
SHELDON WINTERS, REPRESENTATIVE FOR STATE FARM INSURANCE
suggested that HB 394 is a win-win bill. It benefits the
consumer and the industry, as it provides a better product.
The Division of Insurance supports it.
Mr. Winters pointed out in today's society, insurance
permeates basically everything. The intent of the
legislation is to provide better information about the
insurance product to foreign speaking customers so that they
can make wiser choices about their insurance decisions.
In Alaska Court case law, when there is a dispute about the
insurance contract, the court will look to the language of
the insurance policy and any other evidence. The bill does
not control that, but does address the concern if insurance
companies provide foreign language advertising or policy.
The English version controls as long as the other
requirements are met. Mr. Winters offered to answer
questions of the Committee.
1:53:47 PM
Co-Chair Meyer inquired if the burden would be on the
insurance companies. Mr. Winters replied it would. There
is nothing that prohibits the insurance companies from
issuing foreign language advertising. When filing with the
Division of Insurance, the actual policy form would be in
English.
1:54:22 PM
Representative Weyhrauch asked why the bill was needed and
what currently prohibits it under State law.
1:54:48 PM
Mr. Winters responded that there is nothing that prohibits
the practice except for the Supreme Court case law, if a
foreign language version available, the Supreme Court could
base their dispute on the fact that the foreign language
version would control. Given that, insurance companies are
reluctant to issue any information in a foreign language.
1:55:27 PM
Representative Weyhrauch asked if there is a difference
between a foreign language and an English version of a
policy, then which version would control. Mr. Winters noted
that the legislation would clarify that the English version
would rule.
Representative Weyhrauch asked if that was true, even if the
customer was not able to read English. Mr. Winters
clarified that without the provision, there would be no
foreign language provision at all. The idea is that
information would be provided in a foreign language for
their information, but a disclaimer would exist that the
English version ultimately controls. The point is that
without the bill, the foreign language-speaking customer
will have no translation.
1:56:51 PM
Representative Weyhrauch asked if the Court presently uses
all evidence, has there been overriding of that ruling. Mr.
Winters understood that was the direction of the Statute.
He added, it would only apply to documents in English and
not a foreign language. There would be a disclosure in both
languages.
1:57:41 PM
Representative Joule observed testimony indicating that
"foreign" really meant non-English. He advised that the
Alaska Native language is not foreign and recommended using
"non-English" speaking.
Mr. Winters apologized, noting they had attempted to change
it to non-English.
1:58:39 PM
Co-Chair Meyer took responsibility for the use of the word
foreign.
1:59:01 PM
Representative Kelly asked if the change had been made
elsewhere in Statute. Mr. Winters did not know. Co-Chair
Meyer interjected that this was the first time the issue had
come up as far as he knew. Representative Kelly inquired if
he thought it would be the first of many.
1:59:54 PM
Co-Chair Meyer did not know; he admitted that he did not
know if other industries would need the extra documentation.
Mr. Winters did not think the legislation would "open the
flood gates". The insurance arena is unique. Court law
interprets an insurance contract very strictly. In an
insurance dispute, there is a case precedence noting that
the review would not be limited to the contract, which is
the concern.
2:01:02 PM
Representative Kelly worried that changing the language
would affect many other statutory concerns.
2:02:01 PM
Co-Chair Meyer did not agree with that concern, noting that
English is the dominant language and the one accepted by the
State.
Mr. Winters added that the legislation addresses the
opportunity to provide policy brochures in both English and
non-English.
Representative Kelly provided an example of his involvement
on a bank board. He reiterated his concern about all the
other potential agencies that could be affected.
2:03:29 PM
Representative Foster discussed the influx of people from
Southeast Asia in Nome and how the legislation could benefit
them in business. He added that for the most part, there
are elders that cannot read English. He thought that the
bill would fill a missing void.
2:05:35 PM
Representative Weyhrauch asserted that insurance companies
can already provide the non-English information. He
stressed that the concern remains, the legal immunity and
deterrent of the insured.
2:06:14 PM
Mr. Pawlowski pointed out that the legislation would not
provide a policy call for knowingly misrepresenting terms in
the foreign language, as that would be a violation of the
chapter. The dilemma is that no translation can be perfect
and being a translation, it would attempt to be as close as
possible.
2:06:57 PM
Representative Weyhrauch stated that insurance companies are
well advised to avoid punitive damages.
2:07:53 PM
Representative Kelly asked if consideration had been made to
adding language that could cover all statutes. Mr.
Pawlowski responded they had not gone that far. The
legislation clarifies that English is the official version
for insurance. The larger issues were not addressed. As
far as the State is concerned, English is the official
version.
2:08:54 PM
Co-Chair Meyer agreed, noting that English is the dominant
language. Representative Kelly predicted other businesses
would want the same consideration down the road.
2:09:32 PM
Representative Foster MOVED to REPORT HB 394 out of
Committee with individual recommendations and with the
accompanying zero note. There being NO OBJECTION, it was so
ordered.
CS HB 394 (L&C) was reported out of Committee with a "no"
recommendation and with zero note #1 by the Department of
Commerce, Community & Economic Development.
2:10:23 PM
HOUSE BILL NO. 321
An Act relating to high risk operation of a motor
vehicle, aircraft, or watercraft while under the
influence of an alcoholic beverage, inhalant, or
controlled substance and to refusal to submit to a
chemical test.
REPRESENTATIVE JAY RAMRAS, SPONSOR, advised that HB 321
proposes new statutory language, which addresses tougher
Driving Under the Influence (DUI) laws. Presently, it is a
crime in Alaska to operate a vehicle with a blood alcohol
level of .08 or greater. The proposed legislation would not
change current law, but would create an enhanced crime of
high risk driving under the influence. A person commits the
crime of high risk driving under the influence, if it is
determined by a chemical test that a person's blood alcohol
concentration (BAC) is .16 or greater. A person who is
convicted of high risk DUI would face enhanced sentences.
Under the legislation, sentencing for refusal to submit to a
chemical test would also be made tougher, to concur with the
high risk DUI sentences.
Representative Ramras pointed out that current information
from the National Highway Traffic Safety Administration
(NHTSA) shows that 31 states have already adopted laws
dealing with enhanced penalties for high-blood alcohol level
driving offenses. The NHTSA reports that over half of all
alcohol-related fatalities involve someone with a .15 BAC or
higher. The high-risk driver provision of HB 321 would take
clear aim against the most egregious drunk driving
offenders, providing stiffer penalties is a legal remedy to
bring their numbers down. As we have seen from the needless
and tragic incidents that have occurred in the Interior this
past year, now is the time for Alaska to address stricter
penalties for higher-risk driving under the influence.
Representative Ramras emphasized that the legislation is
part of a full approach to improve alcohol management in
Alaska. Earlier legislation introduced, which has been
signed into law, involved renewal of alcohol server
education cards.
2:17:29 PM
Representative Ramras noted that in the House Judiciary
Committee, questions were posed regarding changing the
behavior of the drunk driver or changing how the deals with
those drivers. He acknowledged that the Legislature is
attempting to hold down rising costs within government. He
noted the repeal accompanying the bill, which would help
measure the effect of the legislation for a three-year
period. Representative Ramras pointed out that the House
Judiciary Committee (HJC) version of the bill was the one
being offered.
The legislation attempts to catch problem drivers at the
moment of crisis and put them into therapeutic court. He
urged that the State Legislature opt to end up with "safer
streets".
2:20:32 PM
JANE PIERSON, STAFF, REPRESENTATIVE JAY RAMRAS, offered to
answer questions of the Committee.
2:20:54 PM
Representative Kelly noted that he supports the legislation,
however, remembered concerns voiced by Mothers Against Drunk
Driving (MADD).
Representative Ramras replied that the rewrite of the bill
has the support of MADD and the Cabaret Hotel and Restaurant
Retail Association (CHARR). He noted it is difficult to get
those two groups to align on anything. Initially, MADD was
opposed to the legislation as it attempts to draw a standard
between drunk and "really drunk".
2:22:53 PM
Representative Holm asked if there was data available
regarding the reduction to Driving Under the Influence (DUI)
based upon the change from .08 to a super high rate if .15.
Representative Ramras advised that was one of the
difficulties expressed in the House Judiciary Committee.
Some states referred to that as providing a lesser degree of
recidivism; however, that information was antidotal in
nature. That prompted Representative Coghill to ask if it
changed the behavior of the drinker or the way the State
deals with the drinker. The committee substitute places a
repealer in it to see how it goes for the next three years.
He recommended that the Department of Corrections determine
the success.
2:25:02 PM
Ms. Pierson added that studies indicate that people with a
high BAC are more likely to recidivate; that group tends to
have more problems with alcohol abuse. The intent is to
target that group.
Representative Ramras acknowledged that Representative
Coghill had voice that concern. Representative Ramras
encouraged members to pass the bill from Committee and
support it on the House Floor.
2:27:14 PM
Representative Holm pointed out the fiscal note does not
indicate a departmental change down the road. He would have
hoped that the Department of Corrections sees less expense
down the line with passage of the bill.
2:28:19 PM
Co-Chair Meyer mentioned that he intended to HOLD the bill
in Committee to discuss ways to reduce the fiscal note,
following public testimony.
2:28:40 PM
Representative Hawker commented on the separation of "drunk
from really drunk" and asked if there was any scientific
evidence used to determine the BAC levels.
Representative Ramras responded that in the HJC,
Representative Gara had addressed that concern. He pointed
out that in the federal transportation bill, there are funds
available to address high BAC drinkers. However, there are
other components, which must be fulfilled, including
roadblocks and checkpoints; those factors would not work in
Alaska. It is recognized across the country that a high BAC
limit standard ranges between .15 and .22. The legislation
choose .16.
2:31:25 PM
Representative Hawker thought that the federal government
.08 standard "blackmailed" the State of Alaska. He was
outraged by the standard, stating that .16 compounds the
problem.
Representative Hawker asked the percentage of error that can
happen when taking the measurement. Representative Ramras
requested that the Department of Law or the Department of
Public Safety speak to that.
2:32:46 PM
Representative Hawker suggested that the decisions made were
"arbitrary" and will have serious consequences for
individuals. He asked if the sponsor had looked at
aggravator factors including accident or injury to someone.
Representative Ramras said those penalties already exist.
He pointed out that the proposed figures are arbitrary as
are the ones proposed by the oil industry. Representative
Hawker argued that HB 321 seriously affects people's lives.
Representative Weyhrauch asked if the intended sunset was
2009. Representative Ramras advised the recommendation is a
sunset in three years.
Representative Kelly related a story about the alcohol
deaths related in Fairbanks. He indicated five bills
resulting from that outrage; he asked if HB 321 had been
chosen at the exclusion of the others.
Representative Ramras responded that MADD was not impressed
with HB 321 as a deterrent. The legislation targets those
people who have consumed a great deal of alcohol and are
demonstrating impairment, potentially causing a great deal
of harm. The bill is only one of many items MADD hopes to
see passed.
2:38:46 PM
Representative Joule questioned if a server could be charged
with civil liability if the person drinking moved from one
establishment to another.
Representative Ramras said they could and that language
already exists in statute. He pointed out the risks
involved. The younger age offender is the target; hopefully
before they become habitual offenders.
Representative Holm asked for an explanation of BAC and how
the .08 number is attained. He concurred with
Representative Hawker's earlier observation about the level
of intoxication at .16 and voiced concern about the average
drinkers.
Representative Ramras said he accepts the .08 standard
because it is the law of the land. He stressed that no one
should not operate a vehicle at .16 BAC.
2:44:19 PM
Ms. Pierson explained how a drunken wheel works, noting it
provides a low standard.
2:45:41 PM
QUINLAN STEINER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
OFFICE OF PUBLIC DEFENDER, ANCHORAGE, offered to answer
questions on the fiscal note.
JOSH FINK, (TESTIFIED VIA TELECONFERENCE), PUBLIC ADVOCATE,
OFFICE OF PUBLIC ADVOCACY, offered to answer questions of
the Committee.
Representative Ramras recommended checking with the State
Troopers to get a more accurate read on the numbers.
Representative Kelly pointed out that the proposed numbers
were different from those made by MADD.
Representative Joule discussed a device for cars that can
measure intoxication. Representative Ramras replied it is
called an Ignition Lock, adding that it would be difficult
to have a standard that could not be enforced in both an
urban and rural areas. That device can cause many
operational difficulties.
HB 321 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 2:49 P.M.
| Document Name | Date/Time | Subjects |
|---|