Legislature(1997 - 1998)
04/03/1998 03:24 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
April 3, 1998
3:24 p.m.
MEMBERS PRESENT
Representative Norman Rokeberg, Chairman
Representative John Cowdery, Vice Chairman
Representative Joe Ryan
Representative Tom Brice
Representative Gene Kubina
MEMBERS ABSENT
Representative Bill Hudson
Representative Jerry Sanders
COMMITTEE CALENDAR
HOUSE BILL NO. 451
"An Act relating to assistive technology devices and mobility aids
for physically disabled persons."
- MOVED CSHB 451(L&C) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 158(L&C)
"An Act relating to motor vehicle liability insurance covering a
person who has had the person's driver's license revoked for
possession or consumption of alcohol while under 21 years of age."
- MOVED HCS CSSB 158(L&C) OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: HB 451
SHORT TITLE: ASSISTIVE TECHNOLOGY & MOBILITY AIDS
SPONSOR(S): REPRESENTATIVES(S) GREEN, Davies, Berkowitz
Jrn-Date Jrn-Page Action
02/18/98 2361 (H) READ THE FIRST TIME - REFERRAL(S)
02/18/98 2361 (H) L&C, JUDICIARY
03/06/98 2552 (H) FIRST COSPONSOR: DAVIES
03/11/98 (H) L&C AT 3:15 PM CAPITOL 17
03/11/98 (H) MINUTE(L&C)
03/27/98 (H) JUD AT 1:00 PM CAPITOL 120
03/27/98 (H) MINUTE(JUD)
04/03/98 (H) JUD AT 1:00 PM CAPITOL 120
04/03/98 (H) MINUTE(JUD)
04/03/98 (H) L&C AT 3:15 PM CAPITOL 17
BILL: SB 158
SHORT TITLE: INSURANCE CHANGES FOR DR. LIC REVOC.
SPONSOR(S): JUDICIARY BY REQUEST
Jrn-Date Jrn-Page Action
04/02/97 935 (S) READ THE FIRST TIME - REFERRAL(S)
04/02/97 935 (S) L&C, JUD
02/05/98 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
02/05/98 (S) MINUTE(L&C)
02/19/98 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
02/19/98 (S) MINUTE(L&C)
02/20/98 2591 (S) L&C RPT CS 1DP 4NR NEW TITLE
02/20/98 2591 (S) DP: KELLY
02/20/98 2591 (S) NR: MACKIE, HOFFMAN, MILLER, LEMAN
02/20/98 2591 (S) ZERO FNS TO SB & CS (ADM, DCED)
03/02/98 (S) JUD AT 1:30 PM BELTZ ROOM 211
03/02/98 (S) MINUTE(JUD)
03/03/98 (S) RLS AT 11:35 AM FAHRENKAMP RM 203
03/03/98 (S) MINUTE(RLS)
03/03/98 2715 (S) JUD RPT 2DP 1NR (L&C)CS
03/02/98 2715 (S) DP: TAYLOR, MILLER NR: PARNELL
03/02/98 2715 (S) PREVIOUS ZERO FNS (DCED, ADM)
03/05/98 2749 (S) RULES TO CALENDAR 3/5/98
03/05/98 2750 (S) READ THE SECOND TIME
03/05/98 2751 (S) L&C CS ADOPTED UNAN CONSENT
03/05/98 2751 (S) ADVANCED TO THIRD READING UNAN
CONSENT
03/05/98 2751 (S) READ THE THIRD TIME CSSB 158(L&C)
03/05/98 2751 (S) PASSED Y14 N6
03/05/98 2759 (S) TRANSMITTED TO (H)
03/06/98 2533 (H) READ THE FIRST TIME - REFERRAL(S)
03/06/98 2533 (H) L&C, JUDICIARY
04/01/98 (H) L&C AT 3:15 PM CAPITOL 17
04/01/98 (H) MINUTE(L&C)
04/03/98 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
JEFF LOGAN, Legislative Assistant
to Representative Joseph Green
Alaska State Legislature
Capitol Building, Room 118
Juneau, Alaska 99801
Telephone: (907) 465-6841
POSITION STATEMENT: Presented amendments to HB 451 as sponsor's
representative.
SHIRLEY ARMSTRONG, Legislative Assistant
to Chairman Rokeberg
Alaska State Legislature
Capitol Building, Room 24
Juneau, Alaska 99801
Telephone: (907) 465-4968
POSITION STATEMENT: Provided information on HB 451.
RALPH BENNETT, Legislative Administrative Assistant
to Senator Robin Taylor
Alaska State Legislature
Capitol Building, Room 30
Juneau, Alaska 99801
Telephone: (907) 465-3717
POSITION STATEMENT: Presented House committee substitute for
CSSB 158(L&C).
ACTION NARRATIVE
TAPE 98-43, SIDE A
Number 0001
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce
Standing Committee meeting to order at 3:24 p.m. Members present
at the call to order were Representatives Rokeberg, Cowdery, Ryan
and Kubina. Representative Brice arrived at approximately 3:27
p.m. Chairman Rokeberg commented some large framed photographs had
been loaned to the House Labor and Commerce Standing Committee for
display in the committee chambers. He indicated Unocal Corporation
provided a photograph of the Steelhead platform, the Municipality
of Anchorage provided a photograph of the Anchorage skyline,
Anchorage International Airport provided an aerial photograph of
the airport, Totem Ocean Trailer Express Incorporated (TOTE)
provided a photograph of the S.S. Great Land, and BP Exploration
(Alaska) Incorporated provided five large photographs of North
Slope activities.
HB 451 - ASSISTIVE TECHNOLOGY & MOBILITY AIDS
Number 0150
CHAIRMAN ROKEBERG announced the committee's first item of business
was HB 451, "An Act relating to assistive technology devices and
mobility aids for physically disabled persons."
Number 0157
JEFF LOGAN, Legislative Assistant to Representative Joseph Green,
came forward to testify. He noted Representative Green was at
another committee meeting and hoped to join the committee shortly.
Mr. Logan referred to previous the House Labor and Commerce
Standing Committee hearing on HB 451, commenting that the
committee's instructions had been to provide a more concise
definition of the term "collateral costs" on page 5, line 26,
subsection (3) which read, "(3) "collateral costs" means expenses
incurred by a consumer in connection with the repair of a
nonconformity including the costs of obtaining an alternative
assistive technology device or mobility aid;". Mr. Logan noted the
committee members had a memorandum and amendment from the bill
drafter, Terri Lauterbach, legislative counsel. He said the
amendment narrowed the definition of collateral costs to medical
expenses, replacement rental, shipping and communication with the
manufacturer. He also noted Ms. Lauterbach's memorandum stated the
collateral cost provision only applied to Section 620 of the bill,
not Section 610. He said the sponsor intended for the collateral
costs section to apply to both Section 610 and Section 620; they
were offering an additional amendment on page 2, line 6, adding,
"and the manufacturer shall refund collateral costs incurred by the
consumer.".
Number 0298
CHAIRMAN ROKEBERG stated that amendment would be marked Amendment
1. Amendment 1 read:
Page 2/Line 6
after "repaired" INSERT
"and the manufacturer shall refund collateral costs
incurred by the consumer."
Number 0308
REPRESENTATIVE GENE KUBINA made a motion to adopt Amendment 1.
Number 0315
REPRESENTATIVE TOM BRICE objected for discussion purposes,
indicating the use of "refund" meant the consumer who has been
wronged would have to pay these costs initially rather than the
manufacturer. He suggested, "manufacturer shall pay the collateral
costs incurred by the customer".
Number 0380
MR. LOGAN said they have no objection to that, noting the point was
well-taken and that situation was considered.
CHAIRMAN ROKEBERG suggested, "liable for payment of the collateral
costs".
REPRESENTATIVE BRICE noted the shipping costs for sending the
assistive technology device would be the large cost.
REPRESENTATIVE JOE RYAN commented it was difficult for this
legislature to accept the concept of "time value of money" done
throughout industry. He stated, "When you have to spend your money
it could be earning money for you, and very easy that the person
who has to reimburse you shall include the time value of money for
the period of time you were without the use of your funds." He
indicated this concept had existed for thousands of years,
suggesting an increment of interest be added to reimbursement.
Number 0470
CHAIRMAN ROKEBERG directed Representative Ryan's attention to the
second amendment defining collateral costs, noting he thought they
would be "stretching the envelope enough" without adding something
like interest charges.
REPRESENTATIVE KUBINA asked what language the chairman was
envisioning.
Number 0495
CHAIRMAN ROKEBERG indicated there were two ideas conceptually, "the
manufacturer shall pay" or, in his thoughts, "the manufacturer
shall be liable for payment of".
REPRESENTATIVE BRICE indicated that was acceptable to him.
REPRESENTATIVE KUBINA noted "shall pay" or "payment" were both
acceptable to him.
CHAIRMAN ROKEBERG said the difference was the timing of payment.
REPRESENTATIVE BRICE commented that returning a wheelchair would
cost a large amount of money and the consumer should be able to
send it COD (cash on delivery, collect on delivery).
CHAIRMAN ROKEBERG asked the committee's preference.
REPRESENTATIVE BRICE indicated the chairman should decide.
Number 0600
CHAIRMAN ROKEBERG stated, "Let's just change it to 'shall pay the
collateral costs' and we'll have the Judiciary Committee
(indisc.)." He noted there was an amendment to Amendment 1 to
delete "refund" and add "pay the". He asked if there were any
objections to the amendment to the amendment. There being none,
the amendment to Amendment 1 was adopted.
Amendment 1 as amended read:
Page 2/Line 6
after "repaired" INSERT
"and the manufacturer shall pay the collateral costs
incurred by the consumer."
SHIRLEY ARMSTRONG, Legislative Assistant to Representative Norman
Rokeberg, stated the term "refund" appeared again on page 2, line
15 [from lines 14 and 15: "... within 30 days, refund any
collateral costs;"].
REPRESENTATIVE KUBINA noted it was saying within 30 days there.
Number 0628
CHAIRMAN ROKEBERG commented that was a little different and
indicated the language could be changed to "refund or pay for". He
asked for Mr. Logan's opinion, noting it wasn't clear if the
language needed to be changed because it specified "within 30
days".
MR. LOGAN replied it seemed sufficient at this point.
Number 0688
CHAIRMAN ROKEBERG asked Mr. Logan to examine this further for a
recommendation to the next committee of referral. He asked if the
objection to adoption of Amendment 1 still stood.
REPRESENTATIVE BRICE withdrew his objection.
Number 0720
CHAIRMAN ROKEBERG, hearing no objections, stated Amendment 1 was
adopted as amended. He noted the committee had before it Amendment
2, marked 0-LS1538\E.1, Lauterbach, 4/3/98.
Amendment 2 read:
Page 5, lines 26 - 28:
Delete all material and insert:
"(3) "collateral costs" means the following
expenses incurred by a consumer:
(A) medical expenses for the treatment of
a physical injury caused by a nonconformity in an
assistive technology device or mobility aid;
(B) the cost to rent a substitute
assistive technology device or mobility aid during
the time repairs are attempted for an assistive
technology device or mobility aid that has a
nonconformity and during the time preceding receipt
of a replacement when repairs have been
unsuccessful;
(C) the cost of shipping an assistive
technology device or mobility aid that has a
nonconformity to a manufacture, lessor, or
authorized dealer for repair or replacement; and
(D) the documented costs of long-distance
telephone calls and facsimile transmissions used to
contact the manufacturer, lessor, or authorized
dealer for the purpose of effecting a repair or
replacement of an assistive technology device or
mobility aid that has a nonconformity;"
REPRESENTATIVE KUBINA made a motion to adopt Amendment 2.
Number 0747
CHAIRMAN ROKEBERG, hearing no objections, stated Amendment 2 was
adopted.
REPRESENTATIVE KUBINA made a motion to move HB 451 as amended to
the next committee of referral, with individual recommendations and
the accompanying zero fiscal note.
Number 0768
CHAIRMAN ROKEBERG asked if there were any objections. There being
none, CSHB 451(L&C) moved out of the House Labor and Commerce
Standing Committee.
CSSB 158(L&C) - INSURANCE CHANGES FOR DR. LIC REVOC.
Number 0775
CHAIRMAN ROKEBERG announced the committee's next order of business
was CSSB 158(L&C), "An Act relating to motor vehicle liability
insurance covering a person who has had the person's driver's
license revoked for possession or consumption of alcohol while
under 21 years of age."
Number 0785
RALPH BENNETT, Legislative Administrative Assistant to Senator
Robin Taylor, came forward. He indicated there was a proposed
committee substitute, Version R, which embodied the changes
suggested in discussion with the department and the industry at the
April 1, 1998, hearing. Mr. Bennet noted the changes had been in
Section 2 of the bill. He indicated the language "in a situation
where the person was not driving and was" had been inserted on page
2, line 10. The addition of that language essentially gave the
insurance industry some further assurance that they would not be
dealing with the other things mentioned in [AS] 28.15.183 or
28.15.185. He said, "We will restrict ourselves only to those non-
driving offenses." On page 2, line 13, under subsection (b), he
indicated the language "based upon loss experience" had been
substituted for "for a loss experience", commenting it was a minor
and technical change. Section 2 of Version R read:
*Sec. 2. AS 21.89 is amended by adding a new section to
read:
Sec. 21.89.027. Motor vehicle insurance following
driver's license revocation. (a) Notwithstanding AS
21.36.210, an insurer offering insurance in this state
may not (1) refuse to issue or renew motor vehicle
liability insurance coverage; (2) cancel an existing
policy of motor vehicle liability insurance; (3) deny a
covered claim; or (4) increase the premium on a motor
vehicle liability insurance policy if the refusal,
cancellation, denial, or increase results only from the
fact that the person's driver's license was revoked under
AS 28.15.183 or 28.15.185 for possession or consumption
of alcohol in a situation where the person was not
driving and was in violation of AS 04.16.050 or a
municipal ordinance with substantially similar elements.
(b) The provisions of (a) of this section may not
prevent an insurer from underwriting or rating based upon
loss experience in the same manner as it would for a
person who has not had the person's driver's license
revoked under AS 28.15.183 or 28.15.185.
Number 0879
REPRESENTATIVE KUBINA made a motion to adopt Version R, the
proposed committee substitute for CSSB 158(L&C), labeled 0-
LS0839\R, Ford, dated 4/3/98. There being no objections, Version
R was adopted.
REPRESENTATIVE KUBINA said he took it that it still got to the
point.
MR. BENNETT answered in the affirmative.
CHAIRMAN ROKEBERG asked if Representative Brice needed any further
explanation [Representative Brice had not been present for the
April 1, 1998, hearing].
REPRESENTATIVE BRICE indicated he would speak with Mr. Bennett at
a later time.
REPRESENTATIVE KUBINA commented the department was "okay with it
now."
Number 0920
MR. BENNET stated Senator Taylor was happy with the current
version. He noted every change they had made had been discussed
exhaustively with the Division of Motor Vehicles (DMV), the
Division of Insurance, Mr. George [John George, Lobbyist for
National Association of Independent Insurers (NAII)] and the
industry. Mr. Bennett commented they would be discussing further
changes before the bill came before the House Judiciary Standing
Committee. He stated, "Specifically, the effective date may be too
stringent for ... any business as complex as the ... insurance
industry to comply with the requirements of this legislation and
reorient ... the type of response to their customers that we would
expect them to have, so we may want to adjust the effective date in
Judiciary Committee, if not other things that have occurred to you
gentlemen."
Number 0967
CHAIRMAN ROKEBERG said he assumed the bill would go into effect 90
days after it was signed into law by the Governor.
Number 0975
MR. BENNET indicated the chairman was correct. Mr. Bennet stated
January 1 had been suggested as a possible date and he indicated
this change might be requested in the House Judiciary Standing
Committee to allow the industry further time.
Number 1004
CHAIRMAN ROKEBERG confirmed none of the witnesses signed up wished
to testify at that time. He noted representatives from the
Division of Insurance and the insurance industry were present, and
there seemed to be a general consensus on the legislation.
Chairman Rokeberg said, therefore, he would entertain a motion.
Number 1024
REPRESENTATIVE JOHN COWDERY made a motion to move the proposed
committee substitute for CSSB 158(L&C) with individual
recommendations and the attached zero fiscal note. There being no
objections, HCS CSSB 158(L&C) was moved out of the House Labor and
Commerce Standing Committee.
Number 1050
REPRESENTATIVE KUBINA asked the chairman if he would consider
moving HB 323 out of committee as well. Representative Kubina
noted the committee had previously heard the legislation dealing
with nine-month school employees and retirement issues, commenting
the bill had a couple more committees of referral.
Number 1074
CHAIRMAN ROKEBERG indicated he had not been previous consulted
about this request.
REPRESENTATIVE KUBINA asked the chairman to consider it for the
next committee meeting.
CHAIRMAN ROKEBERG stated he would take the matter under advisement.
Number 1085
REPRESENTATIVE RYAN commented he had originally told the sponsor of
HB 323 he would support hearing the legislation and perhaps moving
it to the next committee. Representative Ryan commented they had
been "sandbagged" by the unexpected $7 million fiscal note from the
Division of Retirement and Benefits [Department of Administration].
Number 1120
REPRESENTATIVE KUBINA indicated the committee had seen legislation
before with very inaccurate fiscal notes the committee knew were
not correct. He commented Representative Brice had been willing to
write his own fiscal note for the bill.
Number 1145
CHAIRMAN ROKEBERG called an at ease at 3:40 p.m. The committee
came back to order at 3:46 p.m.
Number 1158
CHAIRMAN ROKEBERG indicated he was in receipt of a memorandum from
the Speaker of the House asking the committee chairs to have their
committee business completed by May 3, 1998, with the exception of
the House Finance Standing Committee. Chairman Rokeberg briefly
mentioned two large pieces of legislation the committee would be
taking up at subsequent meetings, indicating one concerned common
ownership and the other involved banking securities regulation.
ADJOURNMENT
Number 1204
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing
Committee meeting at 3:48 p.m.
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