Legislature(2001 - 2002)

04/28/2001 04:50 PM JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                         April 28, 2001                                                                                         
                           4:50 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Norman Rokeberg, Chair                                                                                           
Representative Scott Ogan, Vice Chair                                                                                           
Representative Jeannette James                                                                                                  
Representative John Coghill                                                                                                     
Representative Kevin Meyer                                                                                                      
Representative Ethan Berkowitz                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Albert Kookesh                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 178                                                                                                             
"An Act  relating to  the detention of  delinquent minors  and to                                                               
temporary   detention   hearings;   amending  Rule   12,   Alaska                                                               
Delinquency Rules; and providing for an effective date."                                                                        
                                                                                                                                
     - MOVED SB 178 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 166                                                                                                             
"An Act relating to the time  of filling by appointment a vacancy                                                               
in the office of United States senator."                                                                                        
                                                                                                                                
     - MOVED SB 166 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 184                                                                                                              
"An Act relating to the  business of insurance, including changes                                                               
to  the insurance  code to  implement federal  financial services                                                               
reforms  for  the business  of  insurance  and to  authorize  the                                                               
director  of   insurance  to  review  criminal   backgrounds  for                                                               
individuals  applying to  engage  in the  business of  insurance;                                                               
amending Rule  402, Alaska Rules  of Evidence; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSHB 184(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: SB 178                                                                                                                  
SHORT TITLE:DETENTION OF DELINQUENT MINORS                                                                                      
SPONSOR(S): SENATOR(S) THERRIAULT                                                                                               
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/06/01     0978       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/06/01     0978       (S)        HES, JUD                                                                                     
04/20/01                (S)        HES AT 1:30 PM BUTROVICH 205                                                                 
04/20/01                (S)        Moved Out of Committee                                                                       
                                   MINUTE(HES)                                                                                  
04/23/01     1213       (S)        HES RPT 4DP                                                                                  
04/23/01     1213       (S)        DP: LEMAN, WILKEN, WARD,                                                                     
                                   DAVIS                                                                                        
04/23/01     1213       (S)        FN1: ZERO(HSS)                                                                               
04/23/01                (S)        JUD AT 1:30 PM BELTZ 211                                                                     
04/23/01                (S)        Moved Out of Committee                                                                       
04/23/01                (S)        MINUTE(JUD)                                                                                  
04/24/01     1236       (S)        JUD RPT 3DP 1NR                                                                              
04/24/01     1236       (S)        DP: TAYLOR, ELLIS,                                                                           
                                   THERRIAULT;                                                                                  
04/24/01     1236       (S)        NR: COWDERY                                                                                  
04/24/01     1237       (S)        FN1: ZERO(HSS)                                                                               
04/24/01     1236       (S)        FN2: ZERO(CRT)                                                                               
04/25/01     1260       (S)        RULES TO CALENDAR 4/25/01                                                                    
04/25/01     1262       (S)        READ THE SECOND TIME                                                                         
04/25/01     1262       (S)        ADVANCED TO THIRD READING                                                                    
                                   UNAN CONSENT                                                                                 
04/25/01     1262       (S)        READ THE THIRD TIME SB 178                                                                   
04/25/01     1263       (S)        PASSED Y20 N-                                                                                
04/25/01     1263       (S)        COURT RULE(S) SAME AS PASSAGE                                                                
04/25/01     1263       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
04/25/01     1266       (S)        TRANSMITTED TO (H)                                                                           
04/25/01     1266       (S)        VERSION: SB 178                                                                              
04/25/01                (S)        RLS AT 10:45 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/25/01                (S)        MINUTE(RLS)                                                                                  
04/26/01     1225       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/26/01     1225       (H)        JUD                                                                                          
04/28/01                (H)        JUD AT 12:00 PM CAPITOL 120                                                                  
                                                                                                                                
BILL: SB 166                                                                                                                  
SHORT TITLE:APPOINTMENT OF US SENATORS                                                                                          
SPONSOR(S): SENATOR(S) DONLEY                                                                                                   
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/28/01     0839       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/28/01     0839       (S)        JUD                                                                                          
04/04/01                (S)        JUD AT 1:30 PM BELTZ 211                                                                     
04/04/01                (S)        -- Meeting Postponed to                                                                      
                                   4/5/01--                                                                                     
04/05/01                (S)        JUD AT 1:30 PM BUTROVICH 205                                                                 
04/05/01                (S)        <Bill Held Over to 4/6/01> --                                                                
                                   Meeting Canceled --                                                                          
04/06/01                (S)        JUD AT 3:00 PM BELTZ 211                                                                     
04/06/01                (S)        <Bill Held Over to 4/9/01> --                                                                
                                   Meeting Canceled --                                                                          
04/09/01                (S)        JUD AT 4:35 PM BELTZ 211                                                                     
04/09/01                (S)        Moved Out of Committee -                                                                     
                                   MINUTE(JUD)                                                                                  
04/10/01     1045       (S)        JUD RPT 3DP                                                                                  
04/10/01     1045       (S)        DP: TAYLOR, DONLEY,                                                                          
                                   THERRIAULT                                                                                   
04/10/01                (S)        FIN AT 9:00 AM SENATE FINANCE                                                                
                                   532                                                                                          
04/10/01                (S)        <Pending Referral> -- Meeting                                                                
                                   Canceled --                                                                                  
04/17/01     1114       (S)        FN1: ZERO(GOV)                                                                               
04/17/01                (S)        RLS AT 10:45 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/18/01     1162       (S)        RULES TO CALENDAR 1OR 4/18/01                                                                
04/18/01     1164       (S)        READ THE SECOND TIME                                                                         
04/18/01     1164       (S)        ADVANCED TO 3RD FAILED Y13 N6                                                                
                                   E1                                                                                           
04/18/01     1165       (S)        ADVANCED TO THIRD READING                                                                    
                                   4/19 CALENDAR                                                                                
04/18/01                (S)        RLS AT 10:45 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/18/01                (S)        MINUTE(RLS)                                                                                  
04/19/01     1179       (S)        READ THE THIRD TIME SB 166                                                                   
04/19/01     1179       (S)        PASSED Y14 N5 E1                                                                             
04/19/01     1179       (S)        ELLIS NOTICE OF                                                                              
                                   RECONSIDERATION                                                                              
04/20/01     1197       (S)        RECONSIDERATION NOT TAKEN UP                                                                 
04/20/01     1198       (S)        TRANSMITTED TO (H)                                                                           
04/20/01     1198       (S)        VERSION: SB 166                                                                              
04/23/01     1131       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/23/01     1131       (H)        JUD                                                                                          
04/25/01                (H)        JUD AT 1:00 PM CAPITOL 120                                                                   
04/25/01                (H)        Scheduled But Not Heard                                                                      
04/28/01                (H)        JUD AT 12:00 PM CAPITOL 120                                                                  
                                                                                                                                
BILL: HB 184                                                                                                                  
SHORT TITLE:INSURANCE CODE AMENDMENTS                                                                                           
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/14/01     0588       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/14/01     0588       (H)        L&C, JUD                                                                                     
03/14/01     0589       (H)        FN1: ZERO(CED)                                                                               
03/14/01     0589       (H)        GOVERNOR'S TRANSMITTAL LETTER                                                                
04/04/01                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/04/01                (H)        Heard & Held                                                                                 
04/04/01                (H)        MINUTE(L&C)                                                                                  
04/20/01                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/20/01                (H)        Heard & Held                                                                                 
04/20/01                (H)        MINUTE(L&C)                                                                                  
04/25/01                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/25/01                (H)        Moved CSHB 184(L&C) Out of                                                                   
                                   Committee                                                                                    
04/25/01                (H)        MINUTE(L&C)                                                                                  
04/25/01                (H)        MINUTE(L&C)                                                                                  
04/26/01     1232       (H)        L&C RPT FORTHCOMING CS(L&C)                                                                  
                                   2DP 4NR 1AM                                                                                  
04/26/01     1233       (H)        DP: HAYES, MURKOWSKI; NR:                                                                    
                                   HALCRO,                                                                                      
04/26/01     1233       (H)        KOTT, MEYER, ROKEBERG; AM:                                                                   
                                   CRAWFORD                                                                                     
04/26/01     1233       (H)        FN1: ZERO(CED)                                                                               
04/27/01     1286       (H)        RECEIVED CS(L&C) NT                                                                          
04/27/01                (H)        JUD AT 1:00 PM CAPITOL 120                                                                   
04/27/01                (H)        Heard & Held                                                                                 
                                   MINUTE(JUD)                                                                                  
04/28/01                (H)        JUD AT 12:00 PM CAPITOL 120                                                                  
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
HOLLY MORRIS, Staff                                                                                                             
to Senator Gene Therriault                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 121                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented SB 178 on behalf of the sponsor,                                                                 
Senator Therriault.                                                                                                             
                                                                                                                                
DEBORAH DAVIDSON, Staff                                                                                                         
to Senator Dave Donley                                                                                                          
Alaska State Legislature                                                                                                        
Capitol Building, Room 506                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented SB 166 on behalf of the sponsor,                                                                 
Senator Donley.                                                                                                                 
                                                                                                                                
HEATHER M. NOBREGA, Staff                                                                                                       
to Representative Norman Rokeberg                                                                                               
House Judiciary Standing Committee                                                                                              
Alaska State Legislature                                                                                                        
Capitol Building, Room 118                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  During discussion of HB 184, provided                                                                      
information regarding proposed Conceptual Amendment 4.                                                                          
                                                                                                                                
BOB LOHR, Director                                                                                                              
Division of Insurance                                                                                                           
Department of Community & Economic Development (DCED)                                                                           
3601 C Street, Suite 1324                                                                                                       
Anchorage, Alaska  99503-5948                                                                                                   
POSITION STATEMENT:  During discussion of HB 184 and proposed                                                                   
amendments, answered questions on behalf of the administration.                                                                 
                                                                                                                                
KATIE CAMPBELL, Life and Health Actuary                                                                                         
Division of Insurance                                                                                                           
Department of Community & Economic Development (DCED)                                                                           
PO Box 110805                                                                                                                   
Juneau, Alaska  99811-0805                                                                                                      
POSITION STATEMENT:  During discussion of HB 184 and proposed                                                                   
amendments, answered questions on behalf of the administration.                                                                 
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
to Representative John Coghill                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  During discussion of HB 184 and proposed                                                                   
amendments, responded to a question.                                                                                            
                                                                                                                                
JOHN L. GEORGE, Lobbyist                                                                                                        
for American Council of Life Insurance (ACLI),                                                                                  
National Association of Independent Insurers (NAII), and                                                                        
American Family Life Assurance Company (AFLAC)                                                                                  
3328 Fritz Cove Road                                                                                                            
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  During discussion of HB 184 and proposed                                                                   
amendments, responded to questions.                                                                                             
                                                                                                                                
SHELDON E. WINTERS, Attorney at Law                                                                                             
Lessmeier & Winters                                                                                                             
Lobbyist for State Farm Insurance Company                                                                                       
431 North Franklin Street, Suite 400                                                                                            
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   During  discussion of  HB 184  and proposed                                                               
amendments, responded to questions.                                                                                             
                                                                                                                                
CHARLIE MILLER, Lobbyist                                                                                                        
for Alaska National Insurance Company (ANIC)                                                                                    
PO Box 102286                                                                                                                   
Anchorage, Alaska  99510                                                                                                        
POSITION STATEMENT:   During  discussion of  HB 184  and proposed                                                               
amendments, responded to questions.                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-78, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  NORMAN  ROKEBERG  called   the  House  Judiciary  Standing                                                               
Committee  meeting  to  order  at   4:50  p.m.    Representatives                                                               
Rokeberg, James,  Coghill, Meyer,  and Berkowitz were  present at                                                               
the call  to order.   Representative Ogan arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
SB 178 - DETENTION OF DELINQUENT MINORS                                                                                       
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG announced  that the first order  of business would                                                               
be SENATE  BILL NO.  178, "An  Act relating  to the  detention of                                                               
delinquent minors  and to temporary detention  hearings; amending                                                               
Rule  12,   Alaska  Delinquency  Rules;  and   providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 0094                                                                                                                     
                                                                                                                                
HOLLY  MORRIS, Staff  to Senator  Gene  Therriault, Alaska  State                                                               
Legislature, sponsor,  explained on behalf of  Senator Therriault                                                               
that the Juvenile Justice and  Delinquency Prevention Act of 1974                                                               
provided  federal   formula  grant  funding  to   implement  four                                                               
mandates  that were  established  in that  Act.   Those  mandates                                                               
included deinstitutionalization  of status  offenders; addressing                                                               
disproportionate   minority   confinement;    sight   and   sound                                                               
separation  of  juveniles  from  adult  offenders;  and  removing                                                               
juveniles from adult  jail and lockup facilities.   To meet these                                                               
mandates,  a  variety  of  community-based  delinquency  response                                                               
services  have  been  established  with  federal  grant  funding,                                                               
including electronic monitoring (EM)  programs, youth courts, and                                                               
mentoring and  community accountability courts.   Senate Bill 178                                                               
brings Alaska statute into compliance  with federal regulation by                                                               
requiring an arraignment within 24  hours if a juvenile cannot be                                                               
safely transported to a youth  facility.  This federal regulation                                                               
also allows the state to extend  those time limits due of adverse                                                               
weather,  limited transportation  options,  and other  conditions                                                               
without being out of compliance with the federal mandate.                                                                       
                                                                                                                                
MS. MORRIS  said current Alaska  statute allows a juvenile  to be                                                               
held in an adult lockup facility  for a maximum of 24 hours while                                                               
awaiting transport to  one of the six  regional youth facilities.                                                               
Senate Bill  178 does not extend  the time limit that  a juvenile                                                               
may be held  in an adult lockup facility, nor  does it change the                                                               
48-hour  arraignment rule  for juveniles  that are  already in  a                                                               
youth facility.   Basically, she said,  SB 178 will apply  to the                                                               
regions of the state that  don't have a juvenile facility nearby,                                                               
and in  which the juvenile is  taken to an adult  lockup facility                                                               
until he/she  can safely be  transported to a  juvenile facility.                                                               
This  legislation  gives  Alaska  the ability  to  claim  certain                                                               
exemptions  to the  federal mandates,  and preserves  the state's                                                               
eligibility  for  100  percent   of  the  federal  formula  grant                                                               
allocation, but it would not allow  juveniles to be held in adult                                                               
facilities any longer than is absolutely necessary.                                                                             
                                                                                                                                
REPRESENTATIVE MEYER said  that SB 178 is a good  bill, and noted                                                               
that without it, Alaska will lose federal funds.                                                                                
                                                                                                                                
Number 0363                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES moved  to report  SB 178  out of  committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
notes.  There being no objection,  SB 178 was reported out of the                                                               
House Judiciary Standing Committee.                                                                                             
                                                                                                                                
SB 166 - APPOINTMENT OF US SENATORS                                                                                           
                                                                                                                                
Number 0430                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced that the  next order of  business would                                                               
be SENATE BILL  NO. 166, "An Act relating to  the time of filling                                                               
by  appointment  a  vacancy  in   the  office  of  United  States                                                               
senator."                                                                                                                       
                                                                                                                                
Number 0442                                                                                                                     
                                                                                                                                
DEBORAH  DAVIDSON, Staff  to Senator  Dave  Donley, Alaska  State                                                               
Legislature, sponsor, explained on  behalf of Senator Donley that                                                               
SB 166  amends current law  to provide a five-day  waiting period                                                               
before  the  governor  "names  an appointment"  in  the  event  a                                                               
vacancy  occurs  in one  of  Alaska's  U.S.  Senate seats.    The                                                               
governor  must wait  at least  five days  after the  date of  the                                                               
vacancy  but  must  still  -  per  current  statute  -  make  the                                                               
appointment within 30 days of the date of the vacancy.                                                                          
                                                                                                                                
REPRESENTATIVE  BERKOWITZ   asked  whether  there   is  something                                                               
inadequate with the current method.                                                                                             
                                                                                                                                
MS. DAVIDSON replied  that she would not term  the current system                                                               
inadequate, rather that  SB 166 simply gives  residents of Alaska                                                               
a  longer opportunity  to  voice their  opinion  to the  governor                                                               
regarding who should be appointed.                                                                                              
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  whether the  sponsor's objective                                                               
is to encourage public participation in the [political] process.                                                                
                                                                                                                                
CHAIR ROKEBERG asked whether under  current statute the appointee                                                               
has to be of the same  political party as the person vacating the                                                               
seat.                                                                                                                           
                                                                                                                                
MS. DAVIDSON said  that the nominee must be a  member of the same                                                               
political party  that the predecessor  to the office was,  at the                                                               
time [he/she] took office.                                                                                                      
                                                                                                                                
REPRESENTATIVE BERKOWITZ said that  this current requirement is a                                                               
result  of  an  amendment  made  in  [1968]  -  "the  'dead  Ted'                                                               
amendment."   At the time, Senator  Stevens - a republican  - was                                                               
appointed to "fill  the shoes of a democrat," and  people did not                                                               
want that to occur again, he added.                                                                                             
                                                                                                                                
CHAIR ROKEBERG noted  that for a vacancy occurring  in the Alaska                                                               
State Legislature,  the party nominates three  candidates and the                                                               
governor selects one of them.                                                                                                   
                                                                                                                                
MS.  DAVIDSON   added  that  at   the  congressional   level,  no                                                               
nomination  by the  political party  occurs;  the statute  simply                                                               
says  that the  person must  be a  member of  the same  political                                                               
party.    In  response  to  Representative  Berkowitz's  question                                                               
regarding the sponsor's intent, said that it was just to give                                                                   
the public more time for input.                                                                                                 
                                                                                                                                
REPRESENTATIVE BERKOWITZ asked whether the sponsor is "on record                                                                
as saying that the more the public weighs in, the better."                                                                      
                                                                                                                                
MS. DAVIDSON said yes.                                                                                                          
                                                                                                                                
Number 0778                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ made a motion to adopt Amendment 4                                                                     
[taken up first], which read [original punctuation provided]:                                                                   
                                                                                                                                
     Page 1, line 1, following "filling":                                                                                       
     Delete "by appointment"                                                                                                  
     Page 1, line 4, through page 2, line 3:                                                                                    
     Delete all material and insert:                                                                                            
     "* Section 1. AS 15.40.010 is amended to read:                                                                           
     Sec.  15.40.010.  Condition  [CONDITIONS] and  time  of                                                                
     calling   special   election    [FILLING   VACANCY   BY                                                                
     APPOINTMENT]. When  a vacancy  occurs in the  office of                                                                  
     United States senator, the governor  [, WITHIN 30 DAYS,                                                                    
     shall,  by proclamation  and subject  to AS  15.40.050,                                                                
     call a special  election to be held on a  date not less                                                                
     than  60 nor  more  than  90 days  after  the date  the                                                                
     vacancy occurs [APPOINT A QUALIFIED  PERSON TO FILL THE                                                                
     VACANCY].  However, if  the [REMAINDER  OF THE  TERM OF                                                                    
     THE  PREDECESSOR  IN  OFFICE  WILL EXPIRE  OR  IF  THE]                                                                    
     vacancy  occurs on  a date  that is  less than  180 but                                                                
     more  than  60 days  before  the  date of  the  primary                                                              
     election for  the office [WILL  BE FILLED BY  A SPECIAL                                                                
     ELECTION BEFORE THE SENATE WILL  NEXT MEET, CONVENE, OR                                                                    
     RECONVENE],  the  governor  may   not  call  a  special                                                                
     election [FILL THE VACANCY].                                                                                           
     * Sec. 2. AS 15.40.050 is amended to read:                                                                               
     Sec. 15.40.050.  Date of special election.  The special                                                                  
     election to fill the vacancy  shall be held on the date                                                                    
     of  the first  [GENERAL] election,  whether primary  or                                                                  
     general, [WHICH  IS HELD MORE THAN  THREE FULL CALENDAR                                                                  
     MONTHS] after the vacancy occurs  if the vacancy occurs                                                                
     on a date  that is less than 180 but  more than 60 days                                                              
     before                                                                                                                 
     (1)  a   primary  election,  other  than   the  primary                                                                
     election for the office; or                                                                                            
     (2) a genera1 election.                                                                                                
     * Sec. 3. AS 15.40.060 is amended to read:                                                                               
     Sec. 15.40.060.  Proclamation of special  election. The                                                                  
     governor  shall  issue  the  proclamation  calling  the                                                                    
     special  election  at least  50  [80]  days before  the                                                                
     election.                                                                                                                  
     * Sec. 4.  AS 15.40 is amended by adding  a new section                                                                  
     to read:                                                                                                                   
     Sec.  15.40.075. Date  of  nominations. Candidates  for                                                                  
     the  special election  shall be  nominated by  petition                                                                    
     transmitted to  the director before the  21st day after                                                                    
     the vacancy occurs by                                                                                                      
     (1)  the actual  physical delivery  of the  petition in                                                                    
     person;                                                                                                                    
     (2)  mail postmarked  not later  than midnight  of that                                                                    
     date; or                                                                                                                   
     (3) telegram of  a copy in substance  of the statements                                                                    
     made in the petition.                                                                                                      
     *  Sec.  5.  AS 15.40.030,  15.40.040,  15.40.080,  and                                                                  
     15.40.090 are repealed.                                                                                                    
     * Sec.  6. This Act  takes effect immediately  under AS                                                                  
     01.10.070(c)."                                                                                                             
                                                                                                                                
REPRESENTATIVE  BERKOWITZ explained  that  Amendment 4  basically                                                               
provides that:                                                                                                                  
                                                                                                                                
     If  we're believing  in public  participation, then  we                                                                    
     should  allow the  people  to vote  to  fill the  spot.                                                                    
     Now, that's  not such a radical  concept because that's                                                                    
     what  we  do  if  [a  seat  in]  the  [U.S.]  House  of                                                                    
     Representatives  falls open.   So  I think  that what's                                                                    
     good for  the [U.S.] House of  Representatives ought to                                                                    
     be  good for  the  [U.S.]  Senate.   We  should have  a                                                                    
     special election  because if we believe  the public has                                                                    
     the  right  to  weigh  in  -  rather  than  [having]  a                                                                    
     governor  make an  appointment -  then  let the  people                                                                    
     vote.                                                                                                                      
                                                                                                                                
Number 0842                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES objected.                                                                                                  
                                                                                                                                
CHAIR  ROKEBERG  asked whether  Amendment  4  would result  in  a                                                               
vacancy for a particular period of time.                                                                                        
                                                                                                                                
REPRESENTATIVE BERKOWITZ said  yes; it would be same  as if there                                                               
were  a vacancy  in  the  [U.S. House  of  Representatives] -  no                                                               
vacancy would  be more  than 90  days.  With  regards to  SB 166,                                                               
Representative Berkowitz posited  that the whole point  of SB 166                                                               
is  to prevent  Governor  Knowles from  appointing Senator  Frank                                                               
Murkowski's successor.   He said  that if the legislature  has an                                                               
opportunity to  do something that's  based on good  public policy                                                               
rather  than  expedient  politics, then  the  legislature  should                                                               
pursue  good  public  policy;  he   added  that  Amendment  4  is                                                               
preferable public policy - just let the people vote.                                                                            
                                                                                                                                
REPRESENTATIVE JAMES  commented that if  Representative Berkowitz                                                               
"was on the other side of this  issue, he would be doing the same                                                               
thing."                                                                                                                         
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  said, "That's  not  true."   And  when                                                               
asked how  someone would know  that it wasn't true,  he responded                                                               
by saying, "Essentially  what I'm doing is ...  trading the right                                                               
of  a democratic  governor to  make an  appointment [in  favor of                                                               
throwing] the whole  thing open to a public vote.   I'm conceding                                                               
some form of partisan power.  So that's how you know."                                                                          
                                                                                                                                
CHAIR ROKEBERG opined that having  a vacancy in the [U.S. Senate]                                                               
for  up  to  90  days  is   not  advisable,  adding  that  he  is                                                               
considering  changing the  process  for any  vacancies which  may                                                               
occur in the [U.S. House of Representatives] as well.                                                                           
                                                                                                                                
REPRESENTATIVE MEYER asked why Amendment 4 is being offered.                                                                    
                                                                                                                                
REPRESENTATIVE  BERKOWITZ said,  "Because  I think  that when  we                                                               
have a vacancy we should have  a special election; that's what we                                                               
do for [the  U.S. House of Representatives], we should  do it for                                                               
Senate."                                                                                                                        
                                                                                                                                
Number 1044                                                                                                                     
                                                                                                                                
A roll call vote was  taken.  Representatives Berkowitz voted for                                                               
Amendment  4.     Representatives  Coghill,  Meyer,   James,  and                                                               
Rokeberg voted  against it.   Therefore, Amendment 4 failed  by a                                                               
vote of 1-4.                                                                                                                    
                                                                                                                                
Number 1076                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  made a  motion  to  adopt Amendment  3                                                               
[taken up second], which read [original punctuation provided]:                                                                  
                                                                                                                                
     Page 1, lines 9-13,                                                                                                        
     Delete all materials                                                                                                       
                                                                                                                                
He  explained that,  "Amendment 3  says, 'If  your going  to have                                                               
this waiting  period, then we  should go back  to the way  it was                                                               
before  we had  the "dead  Ted bill,"'  which is  [to] allow  the                                                               
sitting  governor  to  appoint  ...   a  person  based  on  their                                                               
qualifications rather than on their party affiliation."                                                                         
                                                                                                                                
Number 1095                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES objected.                                                                                                  
                                                                                                                                
CHAIR  ROKEBERG opined  that Amendment  3 is  not in  the "public                                                               
interest," and is unfair to the incumbent.                                                                                      
                                                                                                                                
REPRESENTATIVE  BERKOWITZ surmised  then that  partisanship would                                                               
be the defining trait for an appointee.                                                                                         
                                                                                                                                
CHAIR ROKEBERG remarked, "They're only filling a vacancy."                                                                      
                                                                                                                                
REPRESENTATIVE BERKOWITZ  pointed out  that a vacancy  could last                                                               
two years, which is "as long as we sit in un-vacant seats."                                                                     
                                                                                                                                
Number 1150                                                                                                                     
                                                                                                                                
A roll call vote was  taken.  Representatives Berkowitz voted for                                                               
Amendment  3.     Representatives  Coghill,  Meyer,   James,  and                                                               
Rokeberg voted  against it.   Therefore, Amendment 3 failed  by a                                                               
vote of 1-4.                                                                                                                    
                                                                                                                                
Number 1170                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ,  after noting  that  he  would not  be                                                               
offering Amendment 2,  made a motion to adopt  Amendment 1 [taken                                                               
up last], which read [original punctuation provided]:                                                                           
                                                                                                                                
     Page 1, preceding line 4, insert:                                                                                        
     "*  Section  1. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
     FINDINGS  AND INTENT:  The legislature  finds that,  in                                                                    
     order to ensure  the people of Alaska  receive the best                                                                    
     possible representation  in the United  States Congress                                                                    
     and Alaska's executive branch:                                                                                             
     (a) Members  of Congress and elected  executives should                                                                    
     seek election  to other offices after  completing their                                                                    
     current terms.                                                                                                             
     (b) In the  event that Members of  Congress and elected                                                                    
     executives choose to pursue  other offices during their                                                                    
     term in  office, they should resign  their current post                                                                    
     to  allow a  successor  to  vigorously pursue  Alaska's                                                                    
     interests."                                                                                                                
     Renumber following sections accordingly.                                                                                   
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  said Amendment  1  is  a statement  of                                                               
intent:                                                                                                                         
                                                                                                                                
     Because  I know,  Mr.  Chair, that  you  just said  how                                                                    
     important it  was to make  sure that people  are paying                                                                    
     full attention  to their duties when  they're either in                                                                    
     Congress or filling statewide office  in the state, and                                                                    
     I  think  it  should  be clearly  expressed  that  they                                                                    
     oughtn't  run  for  other  offices  at  the  same  time                                                                    
     because it  would distract them  from their  ability to                                                                    
     do  their duty.   We  couldn't  have a  major issue  in                                                                    
     Congress if,  for example, a U.S.  Senator were running                                                                    
     for governor and distracted by that campaign.                                                                              
                                                                                                                                
Number 1194                                                                                                                     
                                                                                                                                
REPRESENTATIVE   JAMES  objected.     She   noted  that   when  a                                                               
congressional issue  it serious, members of  Congress are focused                                                               
on that issue and not on their campaigns.                                                                                       
                                                                                                                                
CHAIR ROKEBERG opined that, "It's  part of our American political                                                               
tradition to  be able to have  what's called the 'free  pass' for                                                               
people to move up in office throughout our systems."                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ  mentioned that  Amendment 1  might cure                                                               
any problems that the governor has with SB 166.                                                                                 
                                                                                                                                
Number 1278                                                                                                                     
                                                                                                                                
A roll call vote was  taken.  Representatives Berkowitz voted for                                                               
Amendment  1.     Representatives  Meyer,  James,   Coghill,  and                                                               
Rokeberg  voted against  it.   Therefore, Amendment  1 failed  by                                                               
vote of 1-4.                                                                                                                    
                                                                                                                                
Number 1310                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES moved  to report  SB 166  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
Number 1314                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ objected.  He said:                                                                                    
                                                                                                                                
     When we  tailor a  law in order  to suit  an individual                                                                    
     circumstance,   we're  doing   the  public   process  a                                                                    
     disservice.  And that's what's  happening here.  We can                                                                    
     pretend that there's efforts to  notify the public, but                                                                    
     that not  really what's  going on;  what's going  on is                                                                    
     the  expectation  that  Frank Murkowski  will  run  for                                                                    
     governor,  win  the  governorship, and  then  have  the                                                                    
     ability  to appoint  his own  successor.   ... I  don't                                                                    
     think we  ought to  change the rules  just so  that can                                                                    
     happen.  I  think it looks like  we're creating special                                                                    
     legislation  in order  to benefit  one  person and  one                                                                    
     party.   ... That  doesn't withstand  the test  of time                                                                    
     and  it  doesn't do  us  credit.    And if  I'm  wrong,                                                                    
     someone look  me in eye  and tell  me that this  is not                                                                    
     done for that purpose.                                                                                                     
                                                                                                                                
CHAIR ROKEBERG said, "You may be right, I don't know."                                                                          
                                                                                                                                
Number 1392                                                                                                                     
                                                                                                                                
A  roll call  vote was  taken.   Representatives James,  Coghill,                                                               
Meyer,  and  Rokeberg voted  to  report  SB 166  from  committee.                                                               
Representatives Berkowitz  voted against  it.  Therefore,  SB 166                                                               
was reported  from the  House Judiciary  Standing Committee  by a                                                               
vote of 4-1.                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG called an at-ease from 5:14 p.m. to 5:18 p.m.                                                                    
                                                                                                                                
HB 184 - INSURANCE CODE AMENDMENTS                                                                                            
                                                                                                                                
Number 1431                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced that the  last order of  business would                                                               
be  HOUSE BILL  NO.  184, "An  Act relating  to  the business  of                                                               
insurance, including  changes to the insurance  code to implement                                                               
federal financial services reforms  for the business of insurance                                                               
and to  authorize the  director of  insurance to  review criminal                                                               
backgrounds for  individuals applying  to engage in  the business                                                               
of insurance;  amending Rule 402,  Alaska Rules of  Evidence; and                                                               
providing  for an  effective date."   [Before  the committee  was                                                               
CSHB 184(L&C), as amended on 4/27/01.]                                                                                          
                                                                                                                                
Number 1442                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  made a  motion to  adopt Conceptual  Amendment 4,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
          *Sec. _.  The uncodified law of the State of                                                                          
     Alaska is amended by adding a new section to read:                                                                         
          CERTIFICATION OF EFFECTIVE DATE OF REGULATIONS.                                                                       
     The lieutenant  governor shall  certify to  the revisor                                                                    
     of  statutes  the  effective date  of  the  regulations                                                                    
     initially adopted  by the Director  of the  Division of                                                                    
     Insurance   under  AS   21.21.420,  to   implement  the                                                                    
     provisions   of  sections   _,  _,   and  _   regarding                                                                    
     investments by insurers.                                                                                                   
          *Sec. _.  Sections _, _, and _ take effect 30                                                                         
     days  after the  revisor  of  statutes receives  notice                                                                    
     from the lieutenant governor under sec. _ of this Act.                                                                     
                                                                                                                                
Number 1450                                                                                                                     
                                                                                                                                
HEATHER  M. NOBREGA,  Staff  to  Representative Norman  Rokeberg,                                                               
House  Judiciary Standing  Committee,  Alaska State  Legislature,                                                               
explained  that  when  Amendment  2  was  adopted  [on  4/27/01],                                                               
several  statutes  were repealed  since  they  were going  to  be                                                               
replaced by  regulations.  Conceptual Amendment  4 simply ensures                                                               
that those  statutes remain in  effect until the  regulations are                                                               
in place.                                                                                                                       
                                                                                                                                
Number 1483                                                                                                                     
                                                                                                                                
CHAIR  ROKEBERG  asked  whether  there  were  any  objections  to                                                               
Conceptual  Amendment 4.   There  being no  objection, Conceptual                                                               
Amendment 4 was adopted.                                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL spoke  next  on Amendment  5, which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Page 43, line 15, after "personal information."                                                                            
     Insert:  "(a)"                                                                                                             
                                                                                                                                
     Page 43, line __, after "March 2, 2001"                                                                                    
     Delete:  "."                                                                                                               
     Insert:  ";"                                                                                                               
                                                                                                                                
     Page 43, line __                                                                                                           
     Insert:                                                                                                                    
     (b) unless required by federal  or state law or federal                                                                    
     regulation,   disclosure   of   a   person's   personal                                                                    
     financial or  personal health information under  (a) of                                                                    
     this  section  must be  authorized  in  writing by  the                                                                    
     individual whose  personal information is sought  to be                                                                    
     disclosed;                                                                                                                 
                                                                                                                                
     (c) the  person receiving disclosed  information agrees                                                                    
     in  writing  not to  disclose  or  use the  information                                                                    
     other  than to  carry out  the purposes  for which  the                                                                    
     person disclosed the information.                                                                                          
                                                                                                                                
REPRESENTATIVE  COGHILL remarked  that Amendment  1 -  adopted on                                                               
4/27/01 - requires  that regulations be created that  are no less                                                               
restrictive   than   the   National   Conference   of   Insurance                                                               
Legislators  (NCOIL)  Financial  Information  Privacy  Protection                                                               
Model Act.   He said that  after reading what this  Act entailed,                                                               
he is not  very comfortable with it.   He said he  would like the                                                               
committee to  either rescind the  motion to adopt Amendment  1 or                                                               
consider adopting  Amendment 5  because he  wants to  ensure that                                                               
any  of  the  customer's  information that  is  shared  and  sold                                                               
between  businesses  is protected.    Although  he wants  to  see                                                               
businesses flourish, he  added, he does not want it  to be at the                                                               
expense of the customer's privacy.   He said he has concerns that                                                               
when companies  send out information telling  customers that they                                                               
can "opt  out" of  sharing information  at any  time, it  will be                                                               
written  in   such  fine  print   that  customers   won't  really                                                               
understand what  is going on.   He opined that "the  floor is too                                                               
low" in  the NCOIL model Act,  it allows the industry  to share a                                                               
lot  of   information,  and  he   has  concerns   that  sensitive                                                               
information  will   be  traded  around   inappropriately  between                                                               
companies.                                                                                                                      
                                                                                                                                
CHAIR ROKEBERG said  he and other members of the  House Labor and                                                               
Commerce Standing  Committee share  the concern  that information                                                               
might be  inappropriately disclosed.  He  remarked, however, that                                                               
the NCOIL model is "opt in" with regard to health information.                                                                  
                                                                                                                                
REPRESENTATIVE COGHILL  said, "They  are an 'opt  out' provision,                                                               
Mr. Chairman."                                                                                                                  
                                                                                                                                
Number 1687                                                                                                                     
                                                                                                                                
BOB  LOHR,   Director,  Division  of  Insurance,   Department  of                                                               
Community   &   Economic   Development  (DCED),   testified   via                                                               
teleconference and  clarified that  the NCOIL  model, as  well as                                                               
the NAIC (National Association  of Insurance Commissioners) model                                                               
both  use  "opt  in"  for  health information.    He  added  that                                                               
Amendment  1 stipulates  that  in  promulgating regulations,  the                                                               
Division of Insurance  can go no lower than an  "opt in" standard                                                               
for health  information and if  it wanted to, the  division could                                                               
go  higher  than that  standard  with  regard to  protecting  the                                                               
privacy of health information.                                                                                                  
                                                                                                                                
Number 1857                                                                                                                     
                                                                                                                                
KATIE CAMPBELL,  Life and Health Actuary,  Division of Insurance,                                                               
Department  of Community  &  Economic  Development (DCED),  added                                                               
that  Chapter   5  of   the  NCOIL   model  pertains   to  health                                                               
information, and that the General  Rule reads:  "A licensee shall                                                               
obtain  an  authorization  to  disclose,  prior  to  making  such                                                               
disclosure,  any personally  identifiable  health information  if                                                               
the purpose  of the disclosure  is for the marketing  of services                                                               
or goods for  personal, family, or household purposes."   This is                                                               
the  "opt in"  language for  health information,  she said.   She                                                               
explained,  however,  that  the  NCOIL model  has  an  "opt  out"                                                               
standard  for  financial  information, which,  according  to  her                                                               
understanding, is  fairly consistent with  the Gramm-Leach-Bliley                                                               
Act (GLBA), and which is  what national banks and other financial                                                               
institutions are subject to.                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  said he still struggles  with the concept                                                               
of an "opt  out" standard for financial information.   He said he                                                               
considers it  to be a  significantly lower standard  [of privacy]                                                               
because he has  to specifically tell the company that  it may not                                                               
share his financial information.                                                                                                
                                                                                                                                
CHAIR  ROKEBERG   noted  that   before  GLBA  "there   [were]  no                                                               
requirements  one way  or  the  other."   With  enactment of  the                                                               
federal  GLBA,  the  "opt out"  provisions  start  taking  effect                                                               
federally.   He said  that the  question before  them now  is how                                                               
Alaska will handle its domestic banks and insurers.                                                                             
                                                                                                                                
     We have  to be  very careful  what we  do here;  it not                                                                    
     only  affects  our  nine  domestic  insurers  that  are                                                                    
     domiciled  in  Alaska,  it affects  all  the  insurance                                                                    
     companies, nationally, that do  business in this state.                                                                    
     We have to be careful  ... that we don't create special                                                                    
     barriers  by adopting  some  unusual regulation  and/or                                                                    
     statute  that   hinders  the   flow  of   business  and                                                                    
     commerce.                                                                                                                  
                                                                                                                                
REPRESENTATIVE COGHILL noted that  Alaska is a relatively compact                                                               
society and information  sharing is a sensitive issue.   He added                                                               
that he  is not  too sure that  the GLBA standard  is the  one he                                                               
supports.  He said that  according to his understanding, "we have                                                               
an 'opt in' provision in most places."                                                                                          
                                                                                                                                
MR.  LOHR   clarified  that  currently   there  is   no  standard                                                               
protecting  personal insurance  information.   He  added that  he                                                               
believes  that  the  banking  industry  does  have  an  "opt  in"                                                               
standard.                                                                                                                       
                                                                                                                                
CHAIR  ROKEBERG  countered that  an  "opt  in" standard  for  the                                                               
banking industry  may be part of  corporate policy but it  is not                                                               
in statute.                                                                                                                     
                                                                                                                                
Number 2053                                                                                                                     
                                                                                                                                
RYNNIEVA  MOSS,  Staff  to Representative  John  Coghill,  Alaska                                                               
State Legislature, pointed out that  according to the Division of                                                               
Insurance, banks and financial institutions  have had an "opt in"                                                               
standard for 30 years.                                                                                                          
                                                                                                                                
MR. LOHR,  in response to  questions, explained that based  on HB                                                               
184 and  the amendments  adopted to date,  the division  would be                                                               
permitted  to promulgate  regulations  using the  NCOIL model  or                                                               
even the  NAIC model  (which is less  restrictive with  regard to                                                               
privacy) as  a standard.   Whatever the starting point  turns out                                                               
to  be, and  conceivably it  could be  based on  both models,  he                                                               
noted,  they  both  have a  similar  approach  towards  financial                                                               
information,  which is  to  allow  "opt out."    If  there is  no                                                               
legislation  this  year,  then the  federal  regulations  adopted                                                               
under GLBA will  kick in and they will use  an "opt out" standard                                                               
for financial  information.   He explained  that "opt  in," which                                                               
will  apply  to  health  information,   means  that  without  the                                                               
customer signing  and sending something in  that says information                                                               
may  be shared,  it  won't be;  "opt out,"  which  will apply  to                                                               
financial information,  means that  without the  customer signing                                                               
and  sending  something  in  that says  information  can  not  be                                                               
shared,  it may  be.   He noted,  however, that  even if  someone                                                               
decides  to "opt  out" of  having  his/her financial  information                                                               
shared, it could still be shared with affiliates.                                                                               
                                                                                                                                
MR. LOHR  also explained that  whether the standard  becomes "opt                                                               
out"  or  "opt in,"  will  depend  on public  testimony  received                                                               
during the public hearing process  for the regulations.  He added                                                               
that months  and months  of public  hearings and  written comment                                                               
[periods] have  helped develop the  regulations for  the national                                                               
models.  He  opined that the public hearing  process is necessary                                                               
in  order  to  make  a good  decision  regarding  the  regulation                                                               
standards.                                                                                                                      
                                                                                                                                
REPRESENTATIVE COGHILL  asked if  his personal  information could                                                               
be sold on the market if he does not "opt out."                                                                                 
                                                                                                                                
CHAIR ROKEBERG  said it could, but  added that he would  be given                                                               
the choice.                                                                                                                     
                                                                                                                                
MS. CAMPBELL noted that there are extensive notice requirements:                                                                
                                                                                                                                
     You're given a notice of  what kind of information they                                                                    
     collect, and  how they  would handle  it, and  who they                                                                    
     would disclose  it to.   And you're  given that  at the                                                                    
     time  that you  initially ...  purchase a  product; ...                                                                    
     then you're given annual notices,  so that if you don't                                                                    
     read your  initial notice, you'll get  another one that                                                                    
     says, "Look, this  is what we have," and  there will be                                                                    
     a reply form that you can  send back [to] say, "I don't                                                                    
     want my information shared."                                                                                               
                                                                                                                                
MR.  LOHR  pointed  out  that  "the  regulations  will  establish                                                               
standards for  the size  of the type  and the  readability; we're                                                               
not going to have this fine print where you can't read it."                                                                     
                                                                                                                                
Number 2220                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked whether there were  any provision                                                               
is either  HB 184  or the  GLBA that would  prohibit the  sale of                                                               
information,  or   exchange  of  information  for   any  kind  of                                                               
remuneration.                                                                                                                   
                                                                                                                                
MR. LOHR  said he  does not  believe that  there is  any outright                                                               
prohibition of such in the GLBA.                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked whether such a  prohibition would                                                               
pose an undue hardship on the industry.                                                                                         
                                                                                                                                
MR. LOHR said that it could.                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG opined  that there  is usually  a mandate  that a                                                               
choice be given  to the customer.  Thus a  person could "opt out"                                                               
of having his/her name sold to a mailing list.                                                                                  
                                                                                                                                
REPRESENTATIVE BERKOWITZ said:                                                                                                  
                                                                                                                                
     Show  me that  there  is a  business  need to  exchange                                                                    
     information in  order to carry  on with  that business.                                                                    
     It would  seem that any  use of the  information beyond                                                                    
     that  business need  is  violative  of an  individual's                                                                    
     privacy.   ... But if  you prohibited the sale  of that                                                                    
     information, you  would in essence, through  the market                                                                    
     place, protect privacy.                                                                                                    
                                                                                                                                
CHAIR ROKEBERG  countered that it  would also have  a deleterious                                                               
effect  on  commerce because  the  sharing  of certain  marketing                                                               
information between  companies is  typical.   "This is  where you                                                               
get into the issue of  balancing ... privacy rights with commerce                                                               
rights," he added.                                                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ  said that in essence,  as an individual                                                               
who has released proprietary information  to a business, he could                                                               
argue that that business has  stolen that information and sold it                                                               
to another business  and thus profited on information  he gave in                                                               
confidence.                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG said that is correct.   He opined that that is why                                                               
GLBA was enacted - to address some of these issues.                                                                             
                                                                                                                                
Number 2329                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ said he  would concede that the exchange                                                               
of information pursuant  to legitimate business is  valid, but if                                                               
[the  exchange  of  information]  generates an  extra  source  of                                                               
income for  the business, "if  they're selling my  information to                                                               
make  a  buck,"  that  seems  to   be  an  improper  use  of  the                                                               
information.                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG noted that even the  "opt in" standard of the GBLA                                                               
allows businesses to share information with affiliates.                                                                         
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  for  an  explanation of  exactly                                                               
what  kind of  information  they were  discussing,  and what  the                                                               
transactional life  of that  information is such  as where  is it                                                               
assembled, where does it go, what  happens to it, and what is the                                                               
value of it.                                                                                                                    
                                                                                                                                
Number 2421                                                                                                                     
                                                                                                                                
JOHN L. GEORGE,  Lobbyist for American Council  of Life Insurance                                                               
(ACLI), National Association of  Independent Insurers (NAII), and                                                               
American Family Life Assurance Company (AFLAC), said:                                                                           
                                                                                                                                
     When you borrow  money from a bank, they ask  you a lot                                                                    
     of  financial questions;  they want  to make  sure that                                                                    
     you have a job, ...  that you've been employed so long,                                                                    
     that you have  money in the bank,  and [other questions                                                                    
     regarding] all  your assets.  That's  serious financial                                                                    
     information.    But  ...  when  you  applied  for  your                                                                    
     automobile insurance, they didn't ask  you if you had a                                                                    
     bank account; ...  they may know if you have  a car and                                                                    
     a house because  they'd like to tie  those together and                                                                    
     give you a  discount.  So that's the  kind of financial                                                                    
     information  an insurance  company  has.   Now, a  life                                                                    
     insurance company or a health insurance company --.                                                                        
                                                                                                                                
REPRESENTATIVE BERKOWITZ interjected and  asked, "How do they get                                                               
it?"                                                                                                                            
                                                                                                                                
MR. GEORGE responded:                                                                                                           
                                                                                                                                
     On  the  application, primarily.    ...  Now, they  may                                                                    
     accumulate some  other data -  say your  claims history                                                                    
     or something like that -   [and] they will probably, if                                                                    
     you're buying a homeowner's  policy, know how much your                                                                    
     house  is  worth  and  maybe  how  much  your  personal                                                                    
     property is  worth, so  that is  financial information.                                                                    
     But  they  define  financial  information  [as  almost]                                                                    
     everything  that isn't  health  information.   So  your                                                                    
     name,  address, phone  number, ...  how  many cars  you                                                                    
     have --.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  COGHILL   interjected  and  asked   whether  that                                                               
included a social security number.                                                                                              
                                                                                                                                
MR. GEORGE responded:                                                                                                           
                                                                                                                                
     Good question.  I don't know  that they ask that on the                                                                    
     application for auto insurance,  they may well for life                                                                    
     insurance to be sure they  identify who that person is.                                                                    
     I  can't answer  that.   I  know that  that's a  touchy                                                                    
     subject ....                                                                                                               
                                                                                                                                
TAPE 01-78, SIDE B                                                                                                              
Number 2475                                                                                                                     
                                                                                                                                
MR. GEORGE surmised  that people who buy  Money magazine probably                                                             
have investments  and are  better off than  people who  don't buy                                                               
Money  magazine; therefore,  he asked,  should Money  magazine be                                                           
restricted from selling its mailing  list.  "No," he answered and                                                               
noted that such a company can  target a market; "chances are they                                                               
aren't  targeting a  market of  people [who]  aren't going  to be                                                               
interested  in  a  product."    The  closer  information  can  be                                                               
tailored to the  market that might be interested  in a particular                                                               
product,  the lower  the marketing  costs  are.   He opined  that                                                               
fewer mail-outs would be received  if a person only got mail-outs                                                               
from companies that  have products that he/she  is interested in;                                                               
thus having targeted markets might be advantageous to both the                                                                  
consumer and the company.                                                                                                       
                                                                                                                                
REPRESENTATIVE  BERKOWITZ   said:    "So,  I've   signed  up  for                                                               
automobile  insurance,   and  Money  magazine  comes   by  to  my                                                             
insurance company and  says, 'Can I buy your customer  list?'  Is                                                               
that how it works?"                                                                                                             
                                                                                                                                
MR. GEORGE said:                                                                                                                
                                                                                                                                
     Well,  I suppose.   I  don't think  that's the  primary                                                                    
     reason that [an] insurance company  wants to be able to                                                                    
     share this information; I think  it'd be more likely to                                                                    
     want  to share  it with  an affiliate  company where  a                                                                    
     group  has  a life  insurance  company  and a  property                                                                    
     casualty insurance  company, or where they  may have an                                                                    
     affiliation with ... another financial service.                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ said, "So I buy car insurance and they                                                                 
give it to their life insurance company, who then solicits me."                                                                 
                                                                                                                                
                                                                                                                                
MR. GEORGE said:                                                                                                                
                                                                                                                                
     They might,  or if you  go to apply for  life insurance                                                                    
     and  you say,  "I  have auto  insurance," [the  company                                                                    
     responds:]   "Oh,  you get  a discount  and we  already                                                                    
     have your name, address, phone  number ... so you don't                                                                    
     have to fill out  the expensive questionnaire, you have                                                                    
     to do the  simple questionnaire."  I think  ... that we                                                                    
     really don't  know all the things  that are potentially                                                                    
     uses for  this, and you  think about [how] in  the last                                                                    
     ten  years  we've been  able  to  come up  with  direct                                                                    
     deposit.     Could  your  insurance   company  directly                                                                    
     deposit your check  into the bank for you?   Yeah, they                                                                    
     can.   Could you pay  your insurance with  a MasterCard                                                                    
     by calling  them on the  phone?   Yes, you can.   Could                                                                    
     you  pay your  insurance premium  directly out  of your                                                                    
     checking  account  without  actually writing  a  check?                                                                    
     Yes.    These  are  things that  have  developed;  they                                                                    
     haven't  been here  all that  long,  but the  financial                                                                    
     services industry  is working real hard  to make things                                                                    
     simple, get  business, and it makes  our lives simpler.                                                                    
     And some of that requires an exchange of information.                                                                      
                                                                                                                                
REPRESENTATIVE  OGAN  pointed  out that  Money  magazine  doesn't                                                             
require a  person to fill  out confidential information  in order                                                               
to subscribe to its publication.                                                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL  said he  is  looking  for a  barrier  to                                                               
sensitive financial information.   "I want to know  where ... you                                                               
stop?  Where is that line [when]  you as an industry are going to                                                               
say, 'we're  not going to sell  that information'?  Or  do you in                                                               
fact make it available now for sale?"                                                                                           
                                                                                                                                
MR. GEORGE  said he could  not answer that question  directly; "I                                                               
am not an  insurance company and I would be  guessing rather than                                                               
giving you factual information if I answered it."                                                                               
                                                                                                                                
Number 2312                                                                                                                     
                                                                                                                                
SHELDON  E.  WINTERS,  Attorney  at  Law,  Lessmeier  &  Winters,                                                               
Lobbyist  for  State  Farm   Insurance  Company  ("State  Farm"),                                                               
explained that  State Farm  does not sell  any customer  lists or                                                               
any information,  nor do  they share  any information  outside of                                                               
the State Farm companies.  But,  he added, State Farm wants to be                                                               
able to do what Representative  Berkowitz intimated, which is, if                                                               
someone fills  out an automobile insurance  application and there                                                               
is certain  information on that  application, they want  to share                                                               
that with  the life insurance  company and say, "This  person may                                                               
be someone  [who] may  be interested in  some life  insurance, or                                                               
maybe  we can  give them  a discount."   He  noted that  with the                                                               
integration of  insurance companies and  banking, it may  be that                                                               
some  information on  a life  insurance application  can be  used                                                               
with  "State  Farm  Bank,"  and  they  can  say,  "You  might  be                                                               
interested in an annuity."                                                                                                      
                                                                                                                                
CHAIR  ROKEBERG   noted  that  sharing  such   information  among                                                               
affiliates  is  typical.    He posited  that  the  question  then                                                               
becomes whether to expand that option.                                                                                          
                                                                                                                                
REPRESENTATIVE  JAMES   mentioned  that  whenever  she   has  the                                                               
opportunity to choose, she chooses  not to let her information be                                                               
[sold or shared].                                                                                                               
                                                                                                                                
MR. GEORGE  pointed out that  the sunset clause will  ensure that                                                               
the legislature revisits  this issue in a couple of  years to see                                                               
how the regulations are working.   And at that point (or sooner),                                                               
if things aren't working out,  possible changes can be discussed.                                                               
He opined that  there are advantages to "doing it  as the rest of                                                               
the nation  is doing it;  let it work out  and see if  people are                                                               
offended, and if they are, fix it."                                                                                             
                                                                                                                                
CHAIR  ROKEBERG said  his  concern  is that  if  they don't  pass                                                               
legislation  this session,  there won't  be "opt  in" for  health                                                               
information on  July 1, 2001.   He noted that although  he is not                                                               
in  favor   of  giving   regulatory  authority   to  bureaucrats,                                                               
something has  to be  done in order  to allow  their constituents                                                               
some choices.                                                                                                                   
                                                                                                                                
Number 2123                                                                                                                     
                                                                                                                                
MR. GEORGE  said that because  the federal government  would like                                                               
to regulate insurance, the GLBA  requirements could be considered                                                               
a test  in order  to see whether  individual states  can regulate                                                               
insurance in a uniform manner.                                                                                                  
                                                                                                                                
REPRESENTATIVE  COGHILL said  his  concern is  that the  industry                                                               
will get "an  easy ride" regarding the  disclosure of information                                                               
when  the  burden is  really  going  to  fall on  the  individual                                                               
consumer to "opt out."                                                                                                          
                                                                                                                                
CHAIR   ROKEBERG  mentioned   that   he  has   just  received   a                                                               
questionnaire  from  American Express,  which  he  noted is  very                                                               
clear about  "opt in/opt out."   He asked whether State  Farm has                                                               
put its questionnaire together yet.                                                                                             
                                                                                                                                
MR. WINTERS  said that State  Farm is  in the process  of sending                                                               
out  the  notices.    He  added that  this  notice  is  a  little                                                               
different in that it simply says  at the outset, "We're not going                                                               
to share  your information.   We want  to share it  between State                                                               
Farm Auto and State Farm Life, and  if you don't like it, here is                                                               
an 800 number, call us and we'll stop."                                                                                         
                                                                                                                                
CHAIR ROKEBERG  noted that that  is an example  of "opt in."   He                                                               
added  that  "opt  in"  will  be  the  default  regarding  health                                                               
information,  and  "opt  out"  will   be  the  default  regarding                                                               
financial information.                                                                                                          
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  asked  what assurance  there  is  that                                                               
people are  making these  decisions knowingly  and intelligently.                                                               
He said  he is  thinking of his  grandmother, for  example, being                                                               
confronted with some of these "opt in" or "opt out" choices.                                                                    
                                                                                                                                
MR.  GEORGE  remarked  that  currently,  people  don't  have  any                                                               
choice;  no one  has  any  idea what  is  happening with  his/her                                                               
information.     Once   either  HB   184  and   its  accompanying                                                               
regulations or  the national default standards  take effect, then                                                               
people  will  have  a  choice.   He  reiterated  the  differences                                                               
between the  "opt in" and "opt  out" defaults as they  pertain to                                                               
health information and financial  information.  He mentioned that                                                               
Alaska is a member of NCOIL,  and that Senator Donley, who is not                                                               
necessarily  friendly to  insurance issues,  is on  the executive                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL asked,  "Why wouldn't  you have  'opt in'                                                               
for financial  information?   What is  it that is  so hard  to do                                                               
there?"                                                                                                                         
                                                                                                                                
Number 1898                                                                                                                     
                                                                                                                                
MR.  GEORGE said  that [insurance]  companies  can't do  business                                                               
without either  functioning under  "opt out" or  listing numerous                                                               
exemptions to "opt  in"; to adjust claims, or to  reinsure, or to                                                               
simply perform daily transactions, they  need to be able to share                                                               
information.   It is efficient  for insurance companies  to share                                                               
information with  affiliates.  He  noted if it were  possible for                                                               
one company  to sell  both life  insurance and  property casualty                                                               
insurance, then information  would not need to  be shared between                                                               
different companies, but that is  not possible; by law, they have                                                               
to  be  separate companies,  and  so  instead they  are  separate                                                               
affiliated companies.   He mentioned  that there are  some states                                                               
that have  tried the total  "opt in" approach,  which essentially                                                               
shut down insurance businesses until "they could unwind it."                                                                    
                                                                                                                                
MS. CAMPBELL, in  response to a question, said that  there are at                                                               
least  1,000 insurance  companies  registered to  do business  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR  ROKEBERG  noted  that  setting an  "opt  in"  default  for                                                               
financial information "would put a  screeching halt" on all those                                                               
companies because  they are  all gearing  up for  GLBA standards,                                                               
which are  "opt out"  for financial information.   He  also noted                                                               
that Alaska is receiving $35 million  a year in premium fees from                                                               
these companies.  "We don't  want to be running these [companies]                                                               
off by being too [different]," he added.                                                                                        
                                                                                                                                
MR. GEORGE said that is correct;  "it's very difficult to get new                                                               
companies to  write in Alaska.   We  just don't have  the volume.                                                               
There are  a lot of  companies that are  able to write  here that                                                               
don't write here."                                                                                                              
                                                                                                                                
CHAIR  ROKEBERG opined  that having  more  competition in  Alaska                                                               
would drive down costs and give customers more choices.                                                                         
                                                                                                                                
REPRESENTATIVE  COGHILL asked  whether  this should  come at  the                                                               
expense of the customer's privacy.                                                                                              
                                                                                                                                
MR. GEORGE opined  that if the goal is  to encourage competition,                                                               
the state would have to give  adequate rates and not create rules                                                               
which are prohibitive  to companies attempting to  do business in                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR  ROKEBERG opined  that if  too  much concern  is placed  on                                                               
privacy, the industry might be over regulated.                                                                                  
                                                                                                                                
Number 1705                                                                                                                     
                                                                                                                                
REPRESENTATIVE  OGAN asked  whether there  has been  a motion  to                                                               
adopt Amendment 5.                                                                                                              
                                                                                                                                
REPRESENTATIVE  COGHILL  said  that Amendment  5  [text  provided                                                               
earlier] has not yet been  offered; the committee has merely been                                                               
discussing his privacy concerns.                                                                                                
                                                                                                                                
REPRESENTATIVE  MEYER  noted that  although  HB  184 may  not  be                                                               
perfect,  it will  be  an improvement  over  the current  privacy                                                               
standards, of which there are none.                                                                                             
                                                                                                                                
REPRESENTATIVE  BERKOWITZ,   on  a  separate  topic,   said  that                                                               
conceptually, he thinks  that there should be a  private right of                                                               
action provision included in HB 184.                                                                                            
                                                                                                                                
CHAIR ROKEBERG said he does not  agree.  He added that in certain                                                               
circumstances a  private right  of action  is appropriate  but in                                                               
Alaska,  the  Division  of  Insurance has  a  director  who  will                                                               
resolve such issues.                                                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ said he  thinks that individuals who are                                                               
injured should have the right to pursue a remedy in court.                                                                      
                                                                                                                                
CHAIR ROKEBERG noted that a change  in statute last year gave the                                                               
director of the Division of Insurance more authority.                                                                           
                                                                                                                                
MR. LOHR  explained that the  consumer protection  provisions for                                                               
insurance (AS 21.36) generally do  not contain a private right of                                                               
action.   The  division has  ample resources  to handle  consumer                                                               
complaints,  and   works  informally  with  consumers   and  with                                                               
companies to  resolve most problems that  come up.  If  there are                                                               
any problems  that the division  is not capable of  resolving and                                                               
which  involve misbehavior  by a  company, the  division now  has                                                               
authority to act on  the basis of a single bad  act; a pattern of                                                               
practice no longer needs to be established before the division                                                                  
can take action.                                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ said that's all well and good when the                                                                 
division has a benevolent director like Mr. Lohr.  But, he                                                                      
added, that might not always be the case.                                                                                       
                                                                                                                                
Number 1528                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ made a motion to adopt Conceptual                                                                      
Amendment 6, which read [original punctuation provided]:                                                                        
                                                                                                                                
     'SEC. ENFORCEMENT.                                                                                                         
     '(a) STATE  ENFORCEMENT- This  title shall  be enforced                                                                    
     by  the Division  of Insurance  and the  State Attorney                                                                    
     General  with  respect  to financial  institutions  and                                                                    
     other  persons  subject  to  their  jurisdiction  under                                                                    
     applicable  law, and  shall make  compliance with  this                                                                    
     title a part of their company examinations.                                                                                
     '(b) STATE ACTION FOR VIOLATIONS-                                                                                          
     '(1)  STATE  AUTHORITY  -In   addition  to  such  other                                                                    
     remedies  as  are  provided under  State  law,  If  the                                                                    
     Director or the Attorney  General has reason to believe                                                                    
     that  any  person has  violated  or  is violating  this                                                                    
     title, the state--                                                                                                         
     '(A) may  bring an action  to enjoin such  violation in                                                                    
     any court of competent jurisdiction; and                                                                                   
     '(B) may bring an action  on behalf of the residents of                                                                    
     the  State to  enforce  compliance with  such rule,  to                                                                    
     obtain damages,  restitution, or other  compensation on                                                                    
     behalf of  residents of such  State, or to  obtain such                                                                    
     further  and  other  relief  as   the  court  may  deem                                                                    
     appropriate.                                                                                                               
     '(2)  INVESTIGATORY POWERS-  For  purposes of  bringing                                                                    
     any action under this subsection,  no provision of this                                                                    
     subsection  shall   be  construed  as   preventing  the                                                                    
     Director or the State  Attorney General from exercising                                                                    
     the  powers conferred  such officials  by  the laws  of                                                                    
     this State  to conduct investigations or  to administer                                                                    
     oaths or  affirmations or to  compel the  attendance of                                                                    
     witnesses or  the production  of documentary  and other                                                                    
     evidence.                                                                                                                  
     '(c) PRIVATE RIGHT OF ACTION-                                                                                              
     (I)  Civil  Remedies.  When  an  insurance  institution                                                                    
     fails to  comply with any  provision of this  title, in                                                                    
     such  a  way  as  to  have  an  adverse  effect  on  an                                                                    
     individual,  the individual  may bring  a civil  action                                                                    
     against  the  insurance  institution in  any  court  of                                                                    
     competent jurisdiction.                                                                                                    
     (2)  In  any  suit  brought  under  the  provisions  of                                                                    
     subsection (c)(1) of this section,  the court may order                                                                    
     the  financial institution  to take  such action  as is                                                                    
     necessary to  remedy violations of this  Act, including                                                                    
     but, not limited to:                                                                                                       
     (A)  Amending  the  individual's record  in  accordance                                                                    
     with his request or in such  other way as the court may                                                                    
     direct;                                                                                                                    
     (B)   Enjoining   the    insurance   institution   from                                                                    
     withholding  the  complainants  records and  order  the                                                                    
     production   to  the   complainant  of   any  financial                                                                    
     institution  records improperly  withheld from  him. In                                                                    
     such a case  the Court may examine the  contents of any                                                                    
     financial                                                                                                                  
     institution records in camera  to determine whether the                                                                    
     records or any portion thereof may be withheld and,                                                                        
     (C)   Enjoining   the    insurance   institution   from                                                                    
     transferring  to any  affiliate or  nonaffiliated third                                                                    
     party financial information.                                                                                               
     (3)  In  any  suit  brought  under  the  provisions  of                                                                    
     subsection (c)(l)  of this section  in which  the court                                                                    
     determines  that  the  financial  institution  violated                                                                    
     this Title,  the insurance institution shall  be liable                                                                    
     to the individual in an amount equal to the sum of -                                                                       
     (A)  actual damages  sustained by  the individual  as a                                                                    
     result of the refusal or  failure, but in no case shall                                                                    
     a  person entitled  to recovery  receive less  than the                                                                    
     sum of 10,000; and                                                                                                         
     (B)  The   court  may  assess  against   the  insurance                                                                    
     institution   reasonable   attorney  fees   and   other                                                                    
     litigation costs reasonably incurred  in any case under                                                                    
     this  paragraph related  to those  claims on  which the                                                                    
     complainant has substantially prevailed.                                                                                   
     (5) An  action to  enforce any liability  created under                                                                    
     this section may  be brought in any  court of competent                                                                    
     jurisdiction,   without  regard   to   the  amount   in                                                                    
     controversy, within  two years  from the date  on which                                                                    
     the  cause  of  action  arises,  except  that  where  a                                                                    
     financial  institution  has  materially  and  willfully                                                                    
     misrepresented  any  information  required  under  this                                                                    
     section  to  be  disclosed  to an  individual  and  the                                                                    
     information   so   misrepresented    is   material   to                                                                    
     establishment  of   the  liability  of   the  financial                                                                    
     institution to  the individual under this  section, the                                                                    
     action  may be  brought at  any time  within two  years                                                                    
     after    discovery   by    the   individual    of   the                                                                    
     misrepresentation.                                                                                                         
     (6) Rights  of Legal Guardians.  - For the  purposes of                                                                    
     this section,  the parent  of any  minor, or  the legal                                                                    
     guardian of any individual who  has been declared to be                                                                    
     incompetent  due to  physical or  mental incapacity  or                                                                    
     age by a court of competent jurisdiction, may act on                                                                       
     behalf of the individual.                                                                                                  
     '(e)  DEFINITIONS- The  terms  used  in subsection  (a)                                                                    
     that  are not  defined  in this  subtitle or  otherwise                                                                    
     defined  in   section  3(s)  of  the   Federal  Deposit                                                                    
     Insurance Act shall  have the meaning given  to them in                                                                    
     section 1(b) of the International Banking Act of 1978.                                                                     
     'SEC. 4. EFFECT ON FAIR CREDIT REPORTING ACT.                                                                              
     'Nothing in  this title shall  be construed  to modify,                                                                    
     limit, or  supersede the operation  of the  Fair Credit                                                                    
     Reporting Act, and  no inference shall be  drawn on the                                                                    
     basis  of  the  provisions   of  this  title  regarding                                                                    
     whether  information   is  transaction   or  experience                                                                    
     information under section 603 of such Act.                                                                                 
     'SEC. 5. RELATION TO OTHER STATE LAWS.                                                                                     
     'This  title shall  not  be  construed as  superseding,                                                                    
     altering,  or  affecting   the  statutes,  regulations,                                                                    
     orders,  or interpretations  in effect  in this  State,                                                                    
     except to  the extent that such  statutes, regulations,                                                                    
     orders,  or interpretations  are inconsistent  with the                                                                    
     provisions  of  this subtitle,  and  then  only to  the                                                                    
     extent of the inconsistency.                                                                                               
                                                                                                                                
REPRESENTATIVE BERKOWITZ  said that  he thinks  individuals ought                                                               
to have  the right to seek  redress in the courts  when they feel                                                               
they've been injured, and that  since there are privacy issues at                                                               
stake, he did not see why that remedy would be precluded.                                                                       
                                                                                                                                
Number 1509                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES objected.                                                                                                  
                                                                                                                                
Number 1488                                                                                                                     
                                                                                                                                
A  roll  call  vote  was  taken.    Representatives  Coghill  and                                                               
Berkowitz  voted for  Conceptual  Amendment  6.   Representatives                                                               
James, Ogan,  Meyer, and Rokeberg  voted against it.   Therefore,                                                               
Conceptual Amendment 6 failed by a vote of 2-4.                                                                                 
                                                                                                                                
Number 1393                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL made  a  motion to  adopt  only the  last                                                               
portion  of   Amendment  5,  which  read   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     (c) the  person receiving disclosed  information agrees                                                                    
     in  writing  not to  disclose  or  use the  information                                                                    
     other  than to  carry out  the purposes  for which  the                                                                    
     person disclosed the information.                                                                                          
                                                                                                                                
REPRESENTATIVE  COGHILL noted  that  this language  would now  be                                                               
considered Amendment 5.  He  added that although similar language                                                               
may  become part  of  the  regulations, he  wants  to  see it  in                                                               
statute as well.                                                                                                                
                                                                                                                                
CHAIR ROKEBERG  surmised that the  language in Amendment  5 means                                                               
that the person  receiving the information has to  put in writing                                                               
that he/she  will not  disclose the information.   He  added that                                                               
the industry would  bear the burden of  producing the appropriate                                                               
forms  to  accommodate  such  a  requirement.    He  opined  that                                                               
Amendment 5  is "tighter  than 'opt in'"  and will  shut business                                                               
down.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES opined that rates  to the consumers would be                                                               
raised if Amendment 5 were adopted.                                                                                             
                                                                                                                                
Number 1258                                                                                                                     
                                                                                                                                
CHARLIE MILLER,  Lobbyist for  Alaska National  Insurance Company                                                               
(ANIC), with  regard to Amendment 5,  said that in the  course of                                                               
trying to  solve claims and  pay claims in  worker's compensation                                                               
cases, when ANIC  sets up rehabilitation programs  for people who                                                               
have permanent partial  disabilities and have to  be retrained in                                                               
a different craft, it will  become increasingly difficult to meet                                                               
claimants' needs if every step of the  way ANIC has to fill out a                                                               
new  form  per Amendment  5.    He  opined  that the  process  of                                                               
promulgating  regulations   is  the  most  appropriate   way  for                                                               
determining solutions and minimizing potential problems.                                                                        
                                                                                                                                
REPRESENTATIVE  BERKOWITZ suggested  that  Mr. Miller's  concerns                                                               
regarding  Amendment  5  could be  alleviated  if  the  committee                                                               
rescinds its  action in adopting  Amendment 1 [which  was adopted                                                               
on 4/27/01].                                                                                                                    
                                                                                                                                
Number 1079                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL withdrew Amendment 5.                                                                                    
                                                                                                                                
REPRESENTATIVE  JAMES   mentioned  that  when  the   Division  of                                                               
Insurance  sends out  its notice  regarding  the promulgation  of                                                               
regulations,  if Representative  Coghill  still  has concerns  he                                                               
could follow the regulation process.                                                                                            
                                                                                                                                
Number 1012                                                                                                                     
                                                                                                                                
MR.  LOHR,  with regard  to  Conceptual  Amendment 3  [which  was                                                               
adopted on  4/27/01], suggested  that the  effective date  of the                                                               
regulations should  be the  trigger for the  start of  the sunset                                                               
clause   rather  than   the  date   when   the  regulations   are                                                               
promulgated.                                                                                                                    
                                                                                                                                
REPRESENTATIVE BERKOWITZ said, "So moved, conceptually."                                                                        
                                                                                                                                
CHAIR  ROKEBERG noted  that Ms.  Nobrega would  ensure that  this                                                               
suggestion is incorporated during drafting.                                                                                     
                                                                                                                                
Number 0988                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES moved to report  CSHB 184(HL&C), as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal  note.    There  being  no  objection,  CSHB                                                               
184(JUD)  was   reported  from   the  House   Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
CHAIR  ROKEBERG  announced  that  the  House  Judiciary  Standing                                                               
Committee would meet on 4/30/01 to hear SB 183.                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Number 0953                                                                                                                     
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Judiciary Standing Committee meeting was adjourned at 6:15 p.m.                                                                 

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