Legislature(1993 - 1994)
03/29/1994 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
March 29, 1994
3:00 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chair
Rep. Brian Porter
Rep. Bill Williams
Rep. Eldon Mulder
MEMBERS ABSENT
Rep. Joe Sitton
Rep. Jerry Mackie
COMMITTEE CALENDAR
*HB 538: "An Act relating to uniform claims forms, uniform
standards, and uniform procedures for processing
data relating to billing and payment of health
care services; and providing for an effective
date."
MOVED FROM COMMITTEE
*HB 539: "An Act extending the Alaska Public Utilities
Commission; and relating to regulation of public
utilities and to regulatory cost charges."
HEARD AND HELD IN COMMITTEE
*HB 534: "An Act relating to insurance, to the licensing,
accreditation, examination, regulation, and
solvency of persons engaged in the insurance
business, including insurers, nonadmitted
insurers, purchasing groups, risk retention
groups, and United States branches of alien
insurers; relating to the management of and the
filing of reports by persons licensed or otherwise
doing business under the insurance code; amending
Alaska Rule of Civil Procedure 45; and providing
for an effective date."
HEARD AND HELD IN COMMITTEE
(* First public hearing.)
WITNESS REGISTER
REP. CYNTHIA TOOHEY
Alaska State Legislature
State Capitol
Juneau, Alaska 99801-1182
465-4919
Position Statement: Presented HB 538
DAVE WALSH, Director
Division of Insurance
Department of Commerce and Economic Development
P.O. Box 110805
Juneau, Alaska 99811-0805
465-2515
Position Statement: Supported HB 538 and HB 534
DON SCHROER
Executive Director
Alaska Public Utilities Commission
1016 West 6th Ave., Suite 400
Anchorage, Alaska 99501-1963
276-6222
Position Statement: Supported HB 539
(Spoke via teleconference)
DAVE HUTCHENS
Executive Director
Alaska Rural Electric Cooperative Association
703 W. Tudor Rd., #200
Anchorage, Alaska 99503
561-6123
Position Statement: Supported HB 539
REED STOOPS
Lobbyist - GCI
240 Main Street, Suite 600
Juneau, Alaska 99801
463-3223
Position Statement: Supported HB 539
GARY HAYNES
Vice President of Operations
Prime Cable
5151 Fairbanks St.
Anchorage, Alaska 99503
786-9326
Position Statement: Supported HB 539
(Spoke via teleconference)
JAMES ROWE
Alaska Telephone Association
4341 B St., No. 304
Anchorage, Alaska 99501
276-6272
Position Statement: Supported Mr. Hutchens' amendment
(Spoke via teleconference)
BOB LOHR
Executive Director
Alaska Public Utilities Commission
Department of Commerce and Economic Development
1016 W. 6th Ave., Ste. 400
Anchorage, Alaska 99501-1963
276-6222
Position Statement: Answered questions on HB 539
(Spoke via teleconference)
RANDY WELKER
Legislative Auditor
Legislative Audit Division
P.O. Box 113300
Juneau, Alaska 99811-3300
465-3830
Position Statement: Answered questions on HB 539
PREVIOUS ACTION
BILL: HB 538
SHORT TITLE: UNIFORM HEALTH CARE CLAIMS PROCEDURES
SPONSOR(S): HEALTH, EDUCATION AND SOCIAL SERVICES
JRN-DATE JRN-PG ACTION
03/23/94 2935 (H) READ THE FIRST TIME/REFERRAL(S)
03/23/94 2935 (H) L&C, FINANCE
03/29/94 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 539
SHORT TITLE: APUC EXTENSION AND REGULATORY COST CHARGE
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
03/23/94 2935 (H) READ THE FIRST TIME/REFERRAL(S)
03/23/94 2935 (H) L&C, FINANCE
03/29/94 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 534
SHORT TITLE: OMNIBUS INSURANCE REFORM
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
03/18/94 2868 (H) READ THE FIRST TIME/REFERRAL(S)
03/18/94 2868 (H) L&C, JUDICIARY, FINANCE
03/29/94 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 94-30, SIDE A
Number 001
CHAIRMAN HUDSON convened the meeting at 3:10 p.m.
HB 538 - UNIFORM HEALTH CARE CLAIMS PROCEDURES
Number 010
REP. CYNTHIA TOOHEY presented HB 538. She read the
following sponsor statement:
This bill would give the Division of Insurance the ability
to adopt, by regulation, uniform insurance claims forms.
This piece of legislation was derived from HB 414, the
governor's comprehensive health care bill. While there is
definitely the need for overall health care reform, there is
the possibility that these comprehensive changes will not
pass this year. I feel that it is important to have some
mechanism in place for the development of the uniform claims
form, which will at least get us started in the right
direction.
The Division of Insurance has submitted a zero fiscal note
for HB 538. I urge your favorable consideration of this
important piece of legislation.
REP. TOOHEY offered a short amendment to the HB 538 on page
2, Section 2, lines 6 and 7: delete all material and insert
*Sec. 2. By July 1, 1995, the director of the Division of
Insurance shall adopt regulations necessary to implement the
uniform claim form described by Sec. 1 of this act.
Number 056
REP. MULDER asked if the HESS Committee had any questions in
relation to disclosure of costs or fees by medical
providers.
Number 061
REP. TOOHEY stated that it was a concern of the committee.
Number 067
REP. MULDER asked if Rep. Toohey thought it had support
among the HESS Committee members.
Number 069
REP. TOOHEY replied yes.
Number 074
REP. MULDER asked if she thought it worthwhile to add it to
the bill or would it detract.
Number 079
REP. TOOHEY stated it would detract at this time.
Number 087
DAVE WALSH, Director, Division of Insurance, Department of
Commerce and Economic Development, agreed with Rep. Toohey
that adding a provision requiring disclosure of costs by
medical providers would be risky for the bill at this point.
Number 104
REP. PORTER asked for the executive summary of what this
form is and who uses it.
Number 108
MR. WALSH replied that the forms people send in to their
insurance companies after going to a doctor differ from
company to company.
MR. WALSH explained that this increases administrative work
for the companies, the consumer and in terms of any data
collection. One claim form would ease this burden.
Number 131
CHAIRMAN HUDSON asked if there were any other states
attempting similar activities.
Number 135
MR. WALSH replied that there were a number of states as well
as the National Association of Insurance Commissioners who
are working towards the single claim form.
Number 140
CHAIRMAN HUDSON asked how this bill would be regulated and
what would be the savings to the public.
Number 146
MR. WALSH asserted that they wouldn't even have to mandate
that everyone use the same form since doing so would be
beneficial to everyone.
MR. WALSH answered that it would be very speculative and he
would not want to venture a guess except to say it would be
significant.
Number 161
REP. TOOHEY added that there would be a significant savings
in data collection.
Number 165
REP. PORTER moved Amendment 1. No objections were heard; it
was so ordered.
Number 185
REP. MULDER moved CSHB 538(L&C) with individual
recommendations and zero fiscal note. No objections were
heard; it was so ordered.
Number 205
(Note: The committee stood at ease from Number 205 to
Number 242 while the chairman reviewed some notes.)
HB 539 - APUC EXTENSION AND REGULATORY COST CHARGE
Number 242
CHAIRMAN HUDSON brought up HB 539 and stated that the CS
corrects some errors in the original draft.
Number 279
DON SCHROER, Chairman, Alaska Public Utilities Commission,
Department of Commerce and Economic Development, testified
via teleconference in support of HB 539 with the two small
amendments noted.
Number 300
REP. GREEN moved adoption of CSHB 539(L&C) to bring it
before the committee. No objections were heard; it was so
ordered.
REP. MULDER asked why an increased assessment was necessary
as provided for in Section 1.
Number 308
MR. SCHROER responded that this section gives the commission
some flexibility when setting their budget. He added that
the assessment rate is still subject to legislative
approval.
Number 321
REP. MULDER questioned how the rate of assessment would be
still subject to legislative approval. He understood APUC's
budget to be cost plus; they determine what their costs to
be and then charge a rate appropriately.
Number 330
MR. SCHROER explained that his budget still goes through the
administration and then the legislature.
Number 336
REP. PORTER asked for an explanation for paragraph 3.
Number 340
MR. SCHROER responded that it was requested by the Alaska
Rural Electric Power Cooperative. He added that the effect
of the paragraph will be to lower the amount a user pays on
their electrical bill in order to meet the budget and will
raise the amount to all the other utilities and oil
companies.
Number 349
CHAIRMAN HUDSON asked Mr. Schroer to run the committee
through the bill.
Number 352
MR. SCHROER explained each section of the bill.
Number 426
DAVE HUTCHENS, Executive Director, Alaska Rural Electric
Cooperative Association (ARECA), testified in support of HB
539. He stated three points:
1) Supports extension of APUC.
2) Believes that if the APUC is funded through a regulatory
cost charge than it ought to be fair. ARECA thinks the
formula needs to be overhauled.
3) Amendment to remove the liberally construed language from
the APUC statute and replace it with directive that the
powers of the commission would be those specially conferred
by statute or necessarily implied by those specific grants
of authority.
Number 552
CHAIRMAN HUDSON asked Mr. Hutchens where this would fit into
the bill.
MR. HUTCHENS replied that it would need to be a new section.
CHAIRMAN HUDSON read the amendment to Mr. Schroer.
Number 575
MR. SCHROER stated the APUC (Alaska Public Utilities
Commission) was totally opposed to the deletion liberally
construed language from the statute. Mr. Schroer read a
prepared statement for the record. (available in the
committee files.)
Number 617
REED STOOPS, Lobbyist, GCI, testified in support of the
amendment and in opposition to the amendment deleting the
language regarding liberally construed.
MR. STOOPS stated that the APUC cannot foresee everything
given the changing nature of telecommunications.
Number 630
GARY HAYNES, Vice President of Operations, Prime Cable,
testified via teleconference in support of amendment by Mr.
Hutchens.
TAPE 94-30, SIDE B
(Number 001 - Number 031 dead space)
Number 031
REP. MULDER moved Amendment 2, page 2, line 5, following
"commission" insert ";(4) a cable television utility shall
include in gross revenue only revenue attributable to
services that the commission has authority to regulate under
this chapter".
No objections were heard; it was so ordered.
Number 045
JAMES ROWE, Executive Director, Alaska Telephone Association
(ATA), testified via teleconference in support of Mr.
Hutchens' amendment regarding "liberally construed". He
complimented the members of the current commission but
commented that it was uncertain what kind of talent the
future commissions would have.
Number 069
REP. PORTER asked Mr. Lohr where in the bill is the
provision to change the qualifications of one of the
commission members.
Number 080
BOB LOHR, Executive Director, Alaska Public Utilities
Commission (APUC), Department of Commerce and Economic
Development, responded via teleconference that it was in
Section 14 of the original bill.
MR. LOHR explained that the change would allow for
substitution of five years of experience for a degree.
Number 092
REP. PORTER stated that he had received information recently
regarding a recent appointee that did not meet the
qualifications of the statute. He asked if this change was
tailored for an individual.
Number 102
MR. LOHR explained that the language was recommended by the
legislative auditor and will not take effect until the
expiration in 1999.
Number 110
CHAIRMAN HUDSON announced that the bill will be held over
for further information from the APUC in writing concerning
Amendment 3 regarding "liberally construed".
REP. PORTER added that he would like to hear from
Legislative Audit regarding the numbers ARECA has submitted
and to whom the costs are shifted to.
Number 133
RANDY WELKER, Legislative Auditor, Legislative Audit
Division, Legislative Affairs Agency, stated he had not
looked at the numbers referenced above, but at a glance they
looked to be in order.
Number 151
REP. PORTER asked Mr. Welker if the formula being proposed
in this bill would correct the problems the audit addresses.
MR. WELKER felt that the bill would correct the problem, but
added that it may not be to the exactness the Division of
Legislative Audit was hoping to see.
Number 170
CHAIRMAN HUDSON asked Mr. Welker if most of the points in
the audit had been covered during the current hearing.
Number 176
MR. WELKER responded that yes, most points had been covered.
The bill does address the inequity in the current formula
although it's a different solution than the division had
recommended.
HB 534 - OMNIBUS INSURANCE REFORM
Number 210
DAVE WALSH, Director, Division of Insurance, Department of
Commerce and Economic Development, presented HB 534. He
stated that the bill carried a zero fiscal note. Mr. Walsh
noted that there didn't seem to be any opposition to the
bill.
MR. WALSH noted that the bill contains a number of items
that are newly developed national models and smaller items
that have come to the Division of Insurance's attention.
MR. WALSH stated that there was nothing in the bill that to
his knowledge was controversial.
MR. WALSH told the committee that the Division of Insurance
had six pages of amendments to bring before the committee.
About 5-1/2 of the pages are to correct drafting errors,
with the balance being substantive amendments. Mr. Walsh
took the committee through the amendments.
Number 340
CHAIRMAN HUDSON stated that the six pages of amendments
would be considered Amendment 1.
REP. PORTER moved Amendment 1 (all six pages).
REP. GREEN raised the concern that this piece of legislation
was very long and complex and he was concerned that there
wasn't enough time to decipher it all.
CHAIRMAN HUDSON noted that there was no one else to testify
and asked for the wishes of the committee.
Number 365
CHAIRMAN HUDSON stated that in deference to Vice Chairman
Green he would hold the bill, but asked that the amendment
be adopted so that a committee substitute could be printed,
and then if there were any questions, the committee could
more easily address them.
MR. WALSH agreed and noted that the division was working on
it side by side for the committee's information.
Number 386
CHAIRMAN HUDSON brought up Amendment 1 and asked the
committee for their wishes. The amendment passed with no
objections.
CHAIRMAN HUDSON adjourned the meeting at 4:22 p.m.
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