Legislature(1999 - 2000)

04/14/1999 03:26 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                                 
                   April 14, 1999                                                                                               
                     3:26 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Norman Rokeberg, Chairman                                                                                        
Representative Andrew Halcro, Vice Chairman                                                                                     
Representative Jerry Sanders                                                                                                    
Representative Lisa Murkowski                                                                                                   
Representative John Harris                                                                                                      
Representative Tom Brice                                                                                                        
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 158                                                                                                              
"An Act relating to the annual report of the director of the                                                                    
division of insurance and to notice of cancellation of personal                                                                 
insurance."                                                                                                                     
                                                                                                                                
     - MOVED CSHB 158(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
CS FOR SENATE BILL NO. 51(L&C)                                                                                                  
"An Act relating to barbers, hairdressers, manicurists, and                                                                     
cosmetologists; providing that the only qualification necessary for                                                             
licensure as a manicurist, other than payment of fees, is                                                                       
completion of a class that is 12 hours in duration, addresses                                                                   
relevant health, safety, and hygiene concerns, and is offered                                                                   
through a school approved by the Board of Barbers and Hairdressers;                                                             
and providing for an effective date."                                                                                           
                                                                                                                                
     - HEARD AND HELD; ASSIGNED TO SUBCOMMITTEE                                                                                 
                                                                                                                                
* SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 126                                                                                     
"An Act relating to sign language interpreters; establishing the                                                                
Alaska State Board of American Sign Language Interpreters; and                                                                  
providing for an effective date."                                                                                               
                                                                                                                                
     - BILL CANCELLED                                                                                                           
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 158                                                                                                                    
SHORT TITLE: NOTICE OF INS. CANCELLATION TO ELDERLY                                                                             
SPONSOR(S): REPRESENTATIVES(S) ROKEBERG                                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/24/99       556     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/24/99       556     (H)  L&C, JUD                                                                                            
 4/07/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 4/07/99               (H)  HEARD AND HELD                                                                                      
 4/07/99               (H)  MINUTE(L&C)                                                                                         
 4/09/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 4/09/99               (H)  HEARD AND HELD                                                                                      
 4/09/99               (H)  MINUTE(L&C)                                                                                         
 4/12/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 4/12/99               (H)  SCHEDULED BUT NOT HEARD                                                                             
 4/14/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: SB 51                                                                                                                     
SHORT TITLE: LICENSING OF COSMETOLOGISTS                                                                                        
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/01/99       126     (S)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/01/99       126     (S)  L&C, FIN                                                                                            
 2/16/99               (S)  L&C AT  1:30 PM FAHRENKAMP RM 203                                                                   
 2/16/99               (S)  MOVED CS (L&C) OUT OF COMMITTEE                                                                     
 2/16/99               (S)  MINUTE(L&C)                                                                                         
 2/18/99       285     (S)  L&C RPT  CS  1DP 3NR      NEW TITLE                                                                 
 2/18/99       285     (S)  NR: MACKIE, DONLEY, HOFFMAN;                                                                        
 2/18/99       285     (S)  DP: TIM KELLY                                                                                       
 2/18/99       286     (S)  FISCAL NOTES TO SB AND CS (DEC, DCED)                                                               
 3/16/99               (S)  FIN AT  9:00 AM SENATE FINANCE 532                                                                  
 3/16/99               (S)  SCHEDULED BUT NOT HEARD                                                                             
 3/17/99               (S)  FIN AT  9:00 AM SENATE FINANCE 532                                                                  
 3/17/99               (S)  HEARD AND HELD                                                                                      
 3/17/99               (S)  MINUTE(FIN)                                                                                         
 3/17/99               (S)  MINUTE(FIN)                                                                                         
 3/26/99               (S)  FIN AT  9:00 AM SENATE FINANCE 532                                                                  
 3/26/99               (S)  MINUTE(FIN)                                                                                         
 3/26/99       699     (S)  FIN RPT  6DP 1NR 1AM  (L&C) CS                                                                      
 3/26/99       699     (S)  DP: TORGERSON, PARNELL, PHILLIPS,                                                                   
 3/26/99       699     (S)  ADAMS,                                                                                              
 3/26/99       699     (S)  WILKEN, LEMAN; NR: DONLEY; AM: GREEN                                                                
 3/26/99       699     (S)  FISCAL NOTE TO CS (DEC)                                                                             
 3/29/99               (S)  RLS AT 12:00 PM FAHRENKAMP 203                                                                      
 3/29/99               (S)  MINUTE(RLS)                                                                                         
 3/31/99       750     (S)  RULES TO CALENDAR  AND 1 OR 3/31/99                                                                 
 3/31/99       753     (S)  READ THE SECOND TIME                                                                                
 3/31/99       753     (S)  L&C  CS ADOPTED UNAN CONSENT                                                                        
 3/31/99       753     (S)  ADVANCED TO THIRD READING UNAN                                                                      
 3/31/99       753     (S)  CONSENT                                                                                             
 3/31/99       754     (S)  READ THE THIRD TIME  CSSB 51(L&C)                                                                   
 3/31/99       754     (S)  PASSED Y17 N1 E2                                                                                    
 3/31/99       754     (S)  EFFECTIVE DATE(S) SAME AS PASSAGE                                                                   
 3/31/99       756     (S)  TRANSMITTED TO (H)                                                                                  
 4/07/99       666     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 4/07/99       666     (H)  L&C, FIN                                                                                            
 4/14/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JANET SEITZ, Legislative Assistant                                                                                              
   to Representative Norman Rokeberg                                                                                            
Alaska State Legislature                                                                                                        
Capitol Building, Room 24                                                                                                       
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-4968                                                                                                      
POSITION STATEMENT:  Explained changes in the proposed Version H                                                                
committee substitute for HB 158 as aide to the House Labor and                                                                  
Commerce Standing Committee.                                                                                                    
                                                                                                                                
MICHAEL LESSMEIER, Lobbyist                                                                                                     
   for State Farm Insurance Company                                                                                             
124 West Fifth Street                                                                                                           
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 586-5912                                                                                                      
POSITION STATEMENT: Answered questions on the proposed Version H                                                                
committee substitute and amendments for HB 158.                                                                                 
                                                                                                                                
JOHN FERENCE, Deputy Director                                                                                                   
Division of Insurance                                                                                                           
Department of Commerce and Economic Development                                                                                 
P.O. Box 110805                                                                                                                 
Juneau, Alaska 99811-0805                                                                                                       
Telephone:  (907) 465-2560                                                                                                      
POSITION STATEMENT:  Answered questions on the proposed Version H                                                               
committee substitute and amendments for HB 158.                                                                                 
                                                                                                                                
JOHN GEORGE, Lobbyist                                                                                                           
   for the National Association of Independent Insurers;                                                                        
Lobbyist for the American Council of Life Insurance                                                                             
3328 Fritz Cove Road                                                                                                            
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 789-0172                                                                                                      
POSITION STATEMENT:  Answered questions regarding HB 158.                                                                       
                                                                                                                                
DOUG SALIK, Researcher                                                                                                          
   for Senator Tim Kelly                                                                                                        
Alaska State Legislature                                                                                                        
Capitol Building, Room 101                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-4823                                                                                                      
POSITION STATEMENT:  Presented CSSB 51(L&C) as aide to the Senate                                                               
Community and Regional Affairs Standing Committee.                                                                              
                                                                                                                                
CATHERINE REARDON, Director                                                                                                     
Division of Occupational Licensing                                                                                              
Department of Commerce and Economic Development                                                                                 
P.O. Box 110806                                                                                                                 
Juneau, Alaska 99811-0806                                                                                                       
Telephone:  (907) 465-2536                                                                                                      
POSITION STATEMENT:  Answered questions regarding CSSB 51(L&C).                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-39, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                                                                    
Standing Committee meeting to order at 3:26 p.m.  Members present                                                               
at the call to order were Representatives Rokeberg, Halcro,                                                                     
Sanders, Harris and Brice.  Representatives Cissna and Murkowski                                                                
arrived at 3:29 p.m. and 3:54 p.m., respectively.                                                                               
                                                                                                                                
                                                                                                                                
HB 158 - NOTICE OF INS. CANCELLATION TO ELDERLY                                                                                 
                                                                                                                                
Number 0065                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's first order of business                                                             
is HB 158, "An Act relating to the annual report of the director of                                                             
the division of insurance and to notice of cancellation of personal                                                             
insurance."  The chairman requested staff to explain the changes in                                                             
the proposed Version H committee substitute (CS).                                                                               
                                                                                                                                
Number 0083                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to adopt the proposed CS for HB
158, Version H, as a working document.  Version H is labeled                                                                    
1-LS0128\H, Ford, 4/13/99.  There being no objection, Version H was                                                             
before the committee.                                                                                                           
                                                                                                                                
Number 0102                                                                                                                     
                                                                                                                                
JANET SEITZ, Legislative Assistant to Representative Norman                                                                     
Rokeberg, Alaska State Legislature, came forward to explain the                                                                 
changes in Version H as aide to the House Labor and Commerce                                                                    
Standing Committee.  Version H incorporates the amendment that was                                                              
adopted at the previous hearing [April 9, 1999].  It can be found                                                               
on page 2, lines 11 to 13, of the proposed CS, regarding sold or                                                                
terminated and proprietary information.  This language appears as                                                               
Section 1, subsection (7) of Version H:                                                                                         
                                                                                                                                
          (7) statistical information regarding health                                                                          
     insurance, including the number of individual and group                                                                    
     policies sold or terminated in the state; this paragraph                                                                   
     does not authorize the director to require an insurer to                                                                   
     release proprietary information; and                                                                                       
                                                                                                                                
MS. SEITZ noted "less than 70 years of age" on page 2, line 19, is                                                              
new.  She indicated that all of subsection (2) of Section 2,                                                                    
beginning on page 2, line 27, through the end of the bill, is new                                                               
language.  It sets out that a written notice of cancellation can be                                                             
mailed to the named insured and to a designee, if the insured has                                                               
requested that a designee also receive a copy of the (indisc.)                                                                  
notice.                                                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG confirmed from Ms. Seitz that was for all three                                                               
notices.  He indicated, then, the insured would designate the third                                                             
party to receive notice, but the insured would receive notice as                                                                
well, so there would be two sets of notices sent.                                                                               
                                                                                                                                
MS. SEITZ answered in the affirmative.  She noted the mailing                                                                   
schedule has been changed from the 60 days in the original bill                                                                 
back to the existing 30-day, 20-day, and 10-day mailing schedule.                                                               
                                                                                                                                
Number 0242                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO asked the reason for raising the age from 67                                                              
to 70.                                                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG indicated it was an issue of driving records.                                                                 
There were statistics regarding ages of registered drivers from the                                                             
Department of Motor Vehicles and some information on the estimated                                                              
prevalence of ADRD [Alzheimer's Disease and Related Disorders]                                                                  
related to age groups from the Commission on Aging in the bill                                                                  
packet.   The chairman indicated a slight raise in age would reduce                                                             
the number of people involved and that the biggest incident of                                                                  
ADRD-type manifestations appear after age 70, getting progressively                                                             
worse.                                                                                                                          
                                                                                                                                
REPRESENTATIVE HALCRO questioned if these were statewide figures.                                                               
                                                                                                                                
CHAIRMAN ROKEBERG answered in the affirmative, noting the chart in                                                              
the bill packet was provided by the Department of Motor Vehicles.                                                               
He commented page 4 of the chart shows there are 403,304 automobile                                                             
passenger car licenses and only some 16,000 [16,803] licensees are                                                              
over age 70.  The chairman indicated this, combined with the                                                                    
medical evidence regarding ADRD-type diseases, was the reason for                                                               
the age change.  The chairman invited Mr. Lessmeier [lobbyist for                                                               
State Farm Insurance Company] forward.  Noting there was another                                                                
issue, the chairman commented he has been working with the industry                                                             
on this issue.  One of the major concerns he has been trying to                                                                 
address is the return receipt requested.  This provision has been                                                               
removed from the bill by adding the additional notification to a                                                                
third party.  Chairman Rokeberg drew the committee's attention to                                                               
the possible H.1 amendment, which he designated as Amendment 1.                                                                 
Amendment 1, labeled 1-LS0128\H.1, Ford, 4/14/99, read:                                                                         
                                                                                                                                
     Page 3, line 6, following "cancellation":                                                                                  
          Insert "; an insurer who provides a personal                                                                          
     insurance policy to an insured who is 70 years of age or                                                                   
     older shall give written notice to the insured of the                                                                      
     insured's right to have a designee receive notice as                                                                       
     provided in this paragraph"                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG explained the amendment mandates that the insurer                                                             
tell people they have the ability to designate a third party.  The                                                              
chairman asked Mr. Lessmeier if it was his interpretation of                                                                    
Version H that there would be two notices sent on the 30, 20[, 10]                                                              
mailing schedule, if the insured selects the designee option.                                                                   
                                                                                                                                
Number 0532                                                                                                                     
                                                                                                                                
MICHAEL LESSMEIER, Lobbyist for State Farm Insurance Company (State                                                             
Farm), answered that was correct.                                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG questioned how this compared regarding cost to                                                                
the certified mail standpoint.                                                                                                  
                                                                                                                                
MR. LESSMEIER replied that this was proposed as a way of meeting                                                                
the chairman's concerns to give meaningful notice to the insured                                                                
and, if the insured is not someone who can receive meaningful                                                                   
notice, giving notice to someone else.  This is what State Farm                                                                 
thinks would be the most effective way to accomplish this in terms                                                              
of giving that notice, as well as the most efficient way for them                                                               
to do so.  He noted it would be the easiest and have the least                                                                  
impact from an expense viewpoint.                                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG expressed his concern is that this is three                                                                   
additional pieces of first class postage, plus accompanying forms,                                                              
versus one return receipt request cost element.  He asked Mr.                                                                   
Lessmeier to explain why the industry would prefer the first                                                                    
method.                                                                                                                         
                                                                                                                                
Number 0629                                                                                                                     
                                                                                                                                
MR. LESSMEIER responded their first concern is of effectiveness.                                                                
If the intent is to ensure that the person receiving the notice                                                                 
actually understands it, in their view it would not be more                                                                     
effective to send more mailings to the same person.  Their belief                                                               
is that it would be better to provide the option for the insured to                                                             
designate another responsible person.  The second concern is that                                                               
if they make it "on request," it is being done for those people who                                                             
recognize they need this.  It is being done in a specific situation                                                             
and no one's resources are being wasted.  Thirdly, under AS                                                                     
21.36.260 they are still required to provide a certificate of                                                                   
mailing from the post office in order for the notice to be                                                                      
effective; therefore, they think they will have given meaningful                                                                
and effective notice to two parties.  Under that circumstance, they                                                             
cannot see what would be gained by going the additional step of                                                                 
requiring return receipt requested, which would impose a cost that                                                              
this would not.  Mr. Lessmeier noted he could not estimate that                                                                 
cost, but indicated he felt the cost would be imposed for something                                                             
that probably would not be of much benefit.  Mr. Lessmeier                                                                      
indicated there was a proposed amendment to Version H which would                                                               
require certified return receipt mailing.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG questioned if Mr. Lessmeier's calculation was                                                                 
based on the probability factor that a majority of people over 70                                                               
would not want a designee.                                                                                                      
                                                                                                                                
MR. LESSMEIER answered that he had not done any calculations.  He                                                               
indicated he doesn't know how many people would choose the designee                                                             
option; the issue is what would be gained as a result of sending                                                                
certified return receipt requested.  If two mailings are being done                                                             
to begin with, State Farm's view is that that is effective notice                                                               
and little, if anything, would be gained by requiring certified                                                                 
return receipt requested, which would have an attached cost.                                                                    
                                                                                                                                
Number 0779                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG stated the committee has Amendment 1 before it,                                                               
mandating that the insurance industry inform people of their right                                                              
to make the designation.  He asked if Mr. Lessmeier had any                                                                     
objections.                                                                                                                     
                                                                                                                                
MR. LESSMEIER answered he did not, but he would like to "run this                                                               
by our folks."  Mr. Lessmeier recognized it was the chairman's                                                                  
desire to move the legislation and he indicated they would just                                                                 
continue to work on the bill as it proceeded.  The issue is whether                                                             
it would be the desire to have the industry, for example, include                                                               
this information in the mailing at the time of every premium                                                                    
renewal so that it is done semi-annually.  He does not think this                                                               
would be a problem but he would like to confirm that.  Mr.                                                                      
Lessmeier expressed his support for notifying people, if this                                                                   
option is made available, to ensure the option's effectiveness.                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG commented that this is a mandate for the                                                                      
insurance industry to notify [insureds of the designee option]; it                                                              
does not mandate a periodic notice or anything like that.  The                                                                  
chairman confirmed Mr. Lessmeier would not like to see some                                                                     
periodic mandate to assist the company in doing this.  The chairman                                                             
questioned if the notice would be something placed in the policy                                                                
boilerplate or an endorsement.                                                                                                  
                                                                                                                                
MR. LESSMEIER commented they would probably just put a mailer in                                                                
the premium statement.                                                                                                          
                                                                                                                                
Number 0883                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO gave the example that he turns 70, receives                                                               
his renewal policy in the mail with the notice and pays his bill.                                                               
He asked if this meant the information had to be included in every                                                              
renewal notice he was sent now that he is 70, or if one                                                                         
notification would be sufficient.                                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG indicated he was wondering if that should be a                                                                
mandate requirement on an annual renewal.                                                                                       
                                                                                                                                
MR. LESSMEIER said he would not think it would be a problem to do                                                               
this on an annual basis.                                                                                                        
                                                                                                                                
REPRESENTATIVE HALCRO asked about those customers who paid monthly                                                              
or quarterly.                                                                                                                   
                                                                                                                                
MR. LESSMEIER noted he would want to check with their technical                                                                 
people in this area, but he still does not think it would be a                                                                  
problem to do this perhaps once a year.                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG commented they could probably amend the amendment                                                             
by specifying language to the effect of "annual notice" or                                                                      
"annually notice".  He indicated this would avoid mandating this                                                                
information to be sent every time for a shorter periodic renewal.                                                               
The chairman invited Mr. Ference forward.                                                                                       
                                                                                                                                
Number 0987                                                                                                                     
                                                                                                                                
JOHN FERENCE, Deputy Director, Division of Insurance, Department of                                                             
Commerce and Economic Development, came forward.                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Mr. Ference has seen Version H and                                                                  
Amendment 1.  The chairman asked Mr. Ference for his comments and                                                               
how he thought the industry would react.                                                                                        
                                                                                                                                
MR. FERENCE did not foresee any problems and had no recommendations                                                             
other than ensuring that if there were to be a requirement for                                                                  
return receipt, it be clearly specified.                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG noted return receipt was currently not being                                                                  
discussed.  The chairman referred to the actual notice and the                                                                  
period notification [of the designee option].                                                                                   
                                                                                                                                
MR. FERENCE commented he did not see any problem at all.                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG questioned if there were any requirements in                                                                  
other areas of the insurance law that mandate occasional                                                                        
informational notification to insureds.                                                                                         
                                                                                                                                
MR. FERENCE answered there are similar requirements for periodic                                                                
notice in different circumstances.  For example, the division deals                                                             
with Civil Rule 82.  The division requires that liability policy                                                                
holders be advised of their obligations or risks relative to Civil                                                              
Rule 82.  In response to the chairman's comment, Mr. Ference said                                                               
that is every time a policy is issued.                                                                                          
                                                                                                                                
Number 1087                                                                                                                     
                                                                                                                                
MR. LESSMEIER noted there is a similar requirement for offers of                                                                
uninsured and under-insured motorist coverage on automobile                                                                     
policies.  He believes these [notices] need to be made every six                                                                
months or at the time of renewal.                                                                                               
                                                                                                                                
MR. FERENCE said it is when the policy is issued.                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG indicated the existence of policies of varying                                                                
periods, with the customer selecting the period.  He asked what                                                                 
then constitutes a renewal.                                                                                                     
                                                                                                                                
MR. LESSMEIER recommended not going more than annual, because this                                                              
will apply to both automobile and homeowners' insurance.  Most of                                                               
time, in his experience, homeowners' insurance is an annual                                                                     
premium.                                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG commented, then, the issue is whether the                                                                     
committee wishes to mandate "on renewal" or "annually".  The                                                                    
chairman noted Mr. Lessmeier's testimony that he prefers "annually"                                                             
over "renewal".  Chairman Rokeberg asked Mr. Ference if he had a                                                                
recommendation to the committee regarding this type of                                                                          
notification.                                                                                                                   
                                                                                                                                
MR. FERENCE answered he believes annual notice would be sufficient;                                                             
if he were to recommend anything, he would recommend annual notice.                                                             
Mr. Ference informed the committee there is a provision in this                                                                 
section of Chapter 36 dealing with cancellation notices that says                                                               
a policy period is a 12-month period, cycling from the anniversary                                                              
date.                                                                                                                           
                                                                                                                                
Number 1178                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO noted a letter of opposition in the bill                                                                  
packet mentioned that homeowners' policies make no reference to the                                                             
age of the insured because that is irrelevant [Alliance of American                                                             
Insurers, 4/7/99].  He asked how they would track someone's age                                                                 
regarding homeowners' policies if that information is not gathered                                                              
at the time of initial application.                                                                                             
                                                                                                                                
MR. LESSMEIER replied he thinks this information is gathered at the                                                             
time of initial application, although he is not 100 percent sure.                                                               
Mr. Lessmeier said he thinks the easiest way to do this would be to                                                             
send a notice to all insureds on an annual basis which says, "'If                                                               
you're over 70 years of age, you have the right to make this                                                                    
request.'"                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG indicated this would be appreciated as a matter                                                               
of public education.  The chairman confirmed there were no further                                                              
questions for Mr. Lessmeier or Mr. Ference.  He asked if Mr. George                                                             
wished to comment.                                                                                                              
                                                                                                                                
Number 1259                                                                                                                     
                                                                                                                                
JOHN GEORGE, Lobbyist for the National Association of Independent                                                               
Insurers (NAII); Lobbyist for the American Council of Life                                                                      
Insurance, concurred on behalf of NAII that annual [notice] would                                                               
be sufficient.  He indicated he supported the idea of notifying all                                                             
insureds regarding this option.                                                                                                 
                                                                                                                                
Number 1292                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO moved Amendment 1 to the proposed Version H                                                               
CS for HB 158.                                                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG objected for discussion.  He commented he would                                                               
entertain an amendment for annualizing the notice.                                                                              
                                                                                                                                
REPRESENTATIVE HALCRO moved to amend Amendment 1 by inserting                                                                   
"annual" after "give" on line 3 of Amendment 1 ["give" appeared                                                                 
line 3 of written amendment].  There being no objection, the                                                                    
amendment to the amendment was adopted.  Amendment 1 as amended                                                                 
read:                                                                                                                           
                                                                                                                                
     Page 3, line 6, following "cancellation":                                                                                  
          Insert "; an insurer who provides a personal                                                                          
     insurance policy to an insured who is 70 years of age or                                                                   
     older shall give annual written notice to the insured of                                                                   
     the insured's right to have a designee receive notice as                                                                   
     provided in this paragraph"                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG removed his objection to Amendment 1.  There                                                                  
being no further objection, Amendment 1 as amended was adopted.                                                                 
                                                                                                                                
Number 1358                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG referred to the other portion of the bill                                                                     
regarding statistical information.  He asked Mr. Ference if he (the                                                             
chairman) had previously asked him about the language, "this                                                                    
paragraph does not authorize the director to require an insurer to                                                              
release proprietary information; and".                                                                                          
                                                                                                                                
MR. FERENCE confirmed the chairman had previously asked him about                                                               
that language.  The division's recommendation would be that that                                                                
provision dealing with proprietary information not be existent.                                                                 
However, the division does not believe it will be a significant                                                                 
problem if it remains.  If it is not there, however, it prevents                                                                
this from ever being a question.                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG indicated that if the division did not receive                                                                
the requested information if this legislation passed, it could                                                                  
always be amended.  The chairman questioned if the division feels                                                               
this would allow the collection of the desired information in terms                                                             
of "uninsured individual and group plans that are non-ERISA."                                                                   
                                                                                                                                
MR. FERENCE replied he thought this was broad enough.  It will                                                                  
allow the division to identify who is insured and, by default, that                                                             
will identify who falls outside the scope of insurance treatments.                                                              
In response to the chairman's comment, Mr. Ference confirmed it                                                                 
would be both for covered bodies and policy numbers.                                                                            
                                                                                                                                
Number 1437                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO asked Mr. George what kinds of information                                                                
the industry would consider proprietary.                                                                                        
                                                                                                                                
MR. GEORGE answered, on behalf of the American Council of Life                                                                  
Insurance, that he is unsure.  He indicated he deals more with the                                                              
life insurance side as opposed to health insurance.  He supposes                                                                
the names of the groups on group policies, those types of things,                                                               
to avoid giving competitors a list of a company's clients, might be                                                             
considered proprietary.  He didn't see a problem with releasing the                                                             
actual numbers, noting he thinks that is the information being                                                                  
sought.  As long as it doesn't include names of clients or names of                                                             
insured individuals, Mr. George said he thinks they are probably                                                                
okay with that.  He commented he is speaking off the top of his                                                                 
head.                                                                                                                           
                                                                                                                                
REPRESENTATIVE HALCRO asked if pricing structures, et cetera, would                                                             
be considered proprietary.                                                                                                      
                                                                                                                                
MR. GEORGE replied it would be, but he doesn't think that is the                                                                
type of information being requested.                                                                                            
                                                                                                                                
CHAIRMAN ROKEBERG said, "That's published information (indisc.)                                                                 
premium tax (indisc.)?"                                                                                                         
                                                                                                                                
MR. FERENCE responded in health insurance policies it is not, only                                                              
for Blue Cross and Blue Shield.                                                                                                 
                                                                                                                                
REPRESENTATIVE HALCRO commented he doesn't want there to be a                                                                   
future debate over what is proprietary and what is not, noting that                                                             
is the reason for his questions.                                                                                                
                                                                                                                                
MR. GEORGE indicated he does not think there is a problem with the                                                              
information this legislation is seeking to get.  He further                                                                     
indicated this section could be used in the future to gather other                                                              
information, at which point the industry could say that is                                                                      
proprietary.                                                                                                                    
                                                                                                                                
Number 1548                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG stated his view of this amendment [adopted April                                                              
9, 1999] is that it was a fence around which the fishing expedition                                                             
of the division would be restricted.  The chairman indicated the                                                                
intention was that the division collect this specific information,                                                              
not have untrammeled rights to obtain information.                                                                              
                                                                                                                                
MR. FERENCE agreed with the chairman's comments.                                                                                
                                                                                                                                
REPRESENTATIVE BRICE asked, regarding the statistical health                                                                    
insurance information, if that would be the specific services which                                                             
are covered, like the level of copayment and the deductibles.  He                                                               
asked if that would include, for example, whether or not the policy                                                             
has mental health coverage as well.                                                                                             
                                                                                                                                
MR. GEORGE said he assumes Representative Brice is interested in                                                                
finding out who is treating mental health coverage with parity and                                                              
who is not, referring to the mental health parity legislation.                                                                  
                                                                                                                                
REPRESENTATIVE BRICE indicated he was interested in simply who is                                                               
providing that coverage.                                                                                                        
                                                                                                                                
MR. GEORGE said it is probably not proprietary if it is being                                                                   
examined generically and statistics are desired.  A particular                                                                  
company might have problems sharing its information publicly.                                                                   
                                                                                                                                
Number 1645                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE questioned if that is something the department                                                             
can work on.                                                                                                                    
                                                                                                                                
MR. FERENCE answered he doesn't see a reason why they couldn't.                                                                 
Statistical information, in a sense, is very broad; it is anything                                                              
that can be counted.  It could be extended to count different                                                                   
policies on (indisc.) basis, if the division chose to do that.                                                                  
However, the reality is the division is not interested in "fishing"                                                             
either because of the time and expense.  He indicated the more                                                                  
detailed the examination, the more probability the division would                                                               
run into proprietary problems and objections from industry over the                                                             
cost to provide the information.                                                                                                
                                                                                                                                
REPRESENTATIVE BRICE noted, on the balance of that, he is glad to                                                               
see this section is being included, because, as policy makers, the                                                              
legislature needs to have some understanding of the real world                                                                  
impacts of various mandates or various disparities amongst                                                                      
coverages.                                                                                                                      
                                                                                                                                
MR. GEORGE commented that people covered under ERISA [Employee                                                                  
Retirement and Security Act] will not be captured by this,                                                                      
indicating that is the major section.                                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG said they want to know the other people.  He                                                                  
indicated he doesn't know why this doesn't say non-ERISA.                                                                       
                                                                                                                                
Number 1713                                                                                                                     
                                                                                                                                
MR. FERENCE pointed out he doesn't see why there is any reason the                                                              
division, under this legislation, could not ask insurers to                                                                     
identify stop-loss policies that are sold to protect ERISA plans                                                                
and solicit statistics on the number of participants protected                                                                  
under those stop-loss programs.                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG said it would be his intention that the division                                                              
obtain that information also.  He commented the Department of                                                                   
Health and Social Services is also always looking for the numbers                                                               
of insureds.  The chairman confirmed Mr. Walsh [John Walsh,                                                                     
lobbyist for the Alaska Association of Independent Agents and                                                                   
Brokers] did not wish to testify.  The chairman closed the public                                                               
testimony on HB 158 after confirming no one else wished to testify.                                                             
The chairman noted he would not be offering the other amendment                                                                 
[labeled 1-LS0128\H.2, Ford, 4/14/99, adding certified mail                                                                     
requirements].                                                                                                                  
                                                                                                                                
Number 1797                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to move CS for HB 158 [Version                                                              
H], as amended, out of committee with individual recommendations                                                                
and the attached zero fiscal note.  There being no objection, CSHB
158(L&C) moved out the House Labor and Commerce Standing Committee.                                                             
                                                                                                                                
Number 1817                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called an at-ease at 3:58 p.m.  The committee                                                                 
came back to order at 3:59 p.m.                                                                                                 
                                                                                                                                
                                                                                                                                
CSSB 51(L&C) - LICENSING OF COSMETOLOGISTS                                                                                      
                                                                                                                                
Number 1821                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is CSSB 51(L&C), "An Act relating to barbers, hairdressers,                                                                     
manicurists, and cosmetologists; providing that the only                                                                        
qualification necessary for licensure as a manicurist, other than                                                               
payment of fees, is completion of a class that is 12 hours in                                                                   
duration, addresses relevant health, safety, and hygiene concerns,                                                              
and is offered through a school approved by the Board of Barbers                                                                
and Hairdressers; and providing for an effective date."                                                                         
                                                                                                                                
Number 1827                                                                                                                     
                                                                                                                                
DOUG SALIK, Researcher for Senator Tim Kelly, Alaska State                                                                      
Legislature, came forward to present SB 51 as aide to the Senate                                                                
Community and Regional Affairs Standing Committee.  Mr. Salik                                                                   
commented the legislation's length might appear intimidating, but                                                               
it comes mainly from changing the current statute's "cosmetology"                                                               
to "esthestics", or "cosmetologist" to "esthetician".  This change                                                              
has been made primarily to clarify the language according to other                                                              
states; other states use the terms "esthetician" or "esthetics".                                                                
Mr. Salik indicated the legislation would replace the references to                                                             
"cosmetology", "cosmetologist", and "skin care only" with                                                                       
"esthetics" and "esthetician".  It would also create a manicurist's                                                             
license and define the required training for this license to a                                                                  
12-hour class covering health, safety and hygiene.  This class is                                                               
not in current statute.  In addition, a temporary permit would be                                                               
created for persons who have applied for a license and have                                                                     
practiced their profession in another state.  Mr. Salik indicated                                                               
this would allow people to come to Alaska and continue practicing                                                               
while awaiting Alaska licensing.  The legislation also creates a                                                                
new instructor's license that covers practitioners as well as                                                                   
instructors.  Therefore, if someone is an instructor, she/he can                                                                
hold a dual license which allows the person to both practice and                                                                
instruct in the skill.  Lastly, the legislation removes the shaving                                                             
requirement from statute since it is neither taught nor tested.                                                                 
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if her questions concerning the                                                                  
examinations should be addressed to Mr. Salik or to Ms. Reardon                                                                 
[Director, Division of Occupational Licensing].                                                                                 
                                                                                                                                
MR. SALIK indicated he could attempt to answer her questions.                                                                   
                                                                                                                                
Number 1935                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI understands manicurists would take a                                                                   
course of not more than 12 hours, and the legislation specifically                                                              
says a person does not have to take or pass an examination.  She                                                                
questioned, then, if it is basically an informational course.                                                                   
                                                                                                                                
MR. SALIK replied that is correct.  He indicated there are                                                                      
currently no statutory requirements for manicurists.  The state has                                                             
not received such a volume of complaints that it believes full                                                                  
licensure is necessary.  Mr. Salik noted a lot of other states                                                                  
require 600 or 800 hours of classes, training, internships, et                                                                  
cetera.  It is felt this might be somewhat severe, especially for                                                               
locations like Sitka or Ketchikan where the person in current                                                                   
practice would have to close her/his shop to attend a $5,000 to                                                                 
$6,000 eight-week course in Anchorage.  Mr. Salik indicated the                                                                 
cost of such a course would be approximate to that of a student                                                                 
loan.  He noted the class required by SB 51 is basically intended                                                               
to eliminate known problems such as use of dental cleaners.  The                                                                
dental chemicals cost about $2 per gallon, Mr. Salik thought, as                                                                
opposed to a significantly higher cost for the correct ones.                                                                    
However, the dental chemicals actually "eat away at your skin and                                                               
things."  Mr. Salik indicated the concept of the 12-hour class is                                                               
that it could be taken in a weekend to avoid harm to a                                                                          
practitioner's business, and would cover basic safety issues and                                                                
the possible concerns of the profession.  Mr. Salik commented that,                                                             
for example, this is to instruct someone to avoid shaving down to                                                               
the point at which blood is drawn, and what should be done in case                                                              
there is blood or something along those lines.                                                                                  
                                                                                                                                
REPRESENTATIVE MURKOWSKI noted the legislation states that the                                                                  
board will issue a license if a person submits documentation that                                                               
she/he has completed the course.  Describing the example of someone                                                             
coming to Anchorage from Sitka for this course, signing in and then                                                             
leaving, Representative Murkowski asked what assurance she would                                                                
have that her manicurist has actually sat through 12 hours of                                                                   
instruction.  She questioned if there is a certificate of                                                                       
completion or similar.                                                                                                          
                                                                                                                                
Number 2046                                                                                                                     
                                                                                                                                
MR. SALIK answered that is correct.  The intent of SB 51 is to                                                                  
still maintain the direct oversight of the Board of Barbers and                                                                 
Hairdressers on the schools to ensure the schools will be taking                                                                
care of that.  In turn, the schools would provide that to the                                                                   
Division of Occupational Licensing.                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG indicated Ms. Reardon should join the committee                                                               
at the table and contribute where she feels necessary.                                                                          
                                                                                                                                
Number 2082                                                                                                                     
                                                                                                                                
CATHERINE REARDON, Director, Division of Occupational Licensing,                                                                
Department of Commerce and Economic Development (DCED), came                                                                    
forward.  She anticipates the department would be looking for a                                                                 
certificate of completion - some evidence of graduation.  Her                                                                   
reading of the legislation is that the board itself would not be                                                                
conducting examinations.  Acknowledging Representative Murkowski's                                                              
legal background, Ms. Reardon referred to new language on page 2,                                                               
beginning on line 26, "The board may not require an applicant for                                                               
licensure as a manicurist to take or pass an examination for the                                                                
field of manicuring.".  Ms. Reardon indicated she thinks this would                                                             
still allow the schools to give an examination before completion of                                                             
the course is awarded.  There is no examination available for                                                                   
purchase to offer to a person who has completed the 12-hour course.                                                             
The national examinations available for purchase are for people who                                                             
have taken eight-week, three-month type courses.                                                                                
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to language on page 5, beginning                                                              
line 23 ["24"], "The board may not issue a license to a school of                                                               
manicuring if the school requires its students to complete more                                                                 
than 12 hours of instruction or training before the school will                                                                 
certify that the student has completed the school's manicuring                                                                  
course for purposes of AS 08.13.080(b).".  She questioned how this                                                              
new language fits with a beauty school eligible to receive [Alaska]                                                             
student loan monies, or if it fits:  If a beauty school offers a                                                                
manicure course longer than 12 hours to its students, would its                                                                 
ability to receive student loan monies possibly be jeopardized?                                                                 
Representative Murkowski noted she is wondering if there is a                                                                   
tie-in with student loan monies.                                                                                                
                                                                                                                                
Number 2172                                                                                                                     
                                                                                                                                
MS. REARDON answered that she needed to check with "student loan"                                                               
[Alaska Commission on Postsecondary Education (ACPE)] to see what                                                               
the rules are regarding school eligibility.  She noted it is                                                                    
conceivable the commission would require a beauty school to be                                                                  
licensed through the Division of Occupational Licensing.  Ms.                                                                   
Reardon commented Representative Murkowski is the first person to                                                               
ask this question.                                                                                                              
                                                                                                                                
REPRESENTATIVE MURKOWSKI indicated she would be interested to know                                                              
because she sits on the ACPE and is aware there are beauty schools                                                              
for which students can receive Alaska Student Loans.  Her concern                                                               
is that this legislation not go against the commission's                                                                        
requirements for school eligibility.                                                                                            
                                                                                                                                
MS. REARDON explained the reason for the language on page 5 is to                                                               
encourage schools to create these 12-hour courses.  She noted the                                                               
legislation's success depends on schools responding to the demand                                                               
for these 12-hour courses.  Ms. Reardon expressed her frank concern                                                             
that the few beauty schools in Alaska might respond by saying they                                                              
only offer the three-month course; if this happened, there would be                                                             
no place for people to receive the 12-hour course.  Ms. Reardon                                                                 
said there is not a lot of competition in beauty schools outside of                                                             
Anchorage.  She commented, "I think the sponsor was probably                                                                    
responding to some of my concerns that way by trying to give                                                                    
further impetus to say that if you're going to do it, you have to                                                               
offer the 12-hour course because that's all the state is willing to                                                             
mandate that people take at this point."  Ms. Reardon noted she                                                                 
would definitely look into the postsecondary angle in order to                                                                  
provide a better answer.                                                                                                        
                                                                                                                                
Number 2251                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG referred to a one-page copy of an informational                                                               
flyer in the bill packet on Cimarron Tech Nail Artist School.  He                                                               
noted it shows a cost of $3,350 for a 180-hour curriculum and                                                                   
displays prominently on the bottom of the flyer that Alaska Student                                                             
Loans are available.  He noted six weeks seemed like an awful long                                                              
time.                                                                                                                           
                                                                                                                                
REPRESENTATIVE MURKOWSKI pointed out all the things the students                                                                
are taught.                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG commented, "This looks like it could be, I hate                                                               
(indisc.), (indisc.) in terms of education here."  He questioned if                                                             
Mr. Salik had any further testimony "on the Senate Committee"                                                                   
regarding these types of educational programs (indisc.) being                                                                   
offered in the state.                                                                                                           
                                                                                                                                
MR. SALIK indicated the legislation's intent is to not jeopardize                                                               
the business of a nail technician who might own and run a salon in                                                              
a small community by requiring the person to leave for six weeks to                                                             
complete a course in a profession she/he has already been                                                                       
practicing for a significant period of time.  He noted the intent                                                               
is that that person probably already knows what she/he is doing,                                                                
but should have a refresher [course] on the possible dangers.                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG asked if the Senate Labor and Commerce Standing                                                               
Committee had received testimony from any of the schools currently                                                              
providing this curriculum.                                                                                                      
                                                                                                                                
Number 2327                                                                                                                     
                                                                                                                                
MR. SALIK answered in the negative, stating, "No ... I had only                                                                 
spoken with them personally and I had tried to ask them to testify,                                                             
but they said that they'd prefer not, that they were okay with it.                                                              
...  They were not happy that it was 12 hours but they thought it                                                               
was a step in the right direction.  They still wanted to be able to                                                             
provide a further, longer course ... to anyone who'd prefer to                                                                  
specialize (indisc.) such."                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned that there was nothing in the                                                                      
legislation that an advanced certificate of manicuring could still                                                              
be provided, but it just couldn't be mandated by the student loan.                                                              
He indicated he wondered if that was what the provision in the                                                                  
language referenced by Representative Murkowski meant.                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI clarified that language is on page 5.  She                                                             
reviewed the wording, "may not issue a license ... if the school                                                                
requires".                                                                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO indicated, then, a person could still go to                                                               
the nail artist school for an advanced degree.                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG noted, however, the person could not get a                                                                    
student loan for it.                                                                                                            
                                                                                                                                
REPRESENTATIVE MURKOWSKI agreed, and commented that the nail artist                                                             
school would not be licensed.                                                                                                   
                                                                                                                                
Number 2375                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG commented to Ms. Reardon that the Board of                                                                    
Barbers and Hairdressers would license the schools; therefore, they                                                             
would have to go through the licensing procedure in place now.                                                                  
                                                                                                                                
MS. REARDON indicated the board licenses all the schools covering                                                               
the disciplines - barber schools, hairdresser schools, and                                                                      
skin-care cosmetology/esthetics school - and the board would also                                                               
be certifying the licensing of schools offering the manicure                                                                    
course.  She would anticipate that it is often the same school                                                                  
offering the entire range of disciplines.  The school would receive                                                             
one school license which indicates what subjects can be taught,                                                                 
depending on the qualifying documentation provided to the division.                                                             
                                                                                                                                
CHAIRMAN ROKEBERG noted the legislation looks like more of a bill                                                               
intended to cut down abuse of the student loan program than                                                                     
anything else.  He questioned if this assumption is correct,                                                                    
commenting he has not read the entire bill.                                                                                     
                                                                                                                                
Number 2463                                                                                                                     
                                                                                                                                
MS. REARDON answered she does not think that that was behind this,                                                              
explaining that most student loans for beauty professions are used                                                              
primarily for hairdressing, and nothing is being changed regarding                                                              
how schools of hairdressing operate.  Ms. Reardon stated, "The                                                                  
things that you have directed your attention to in this                                                                         
conversation regarding the limits on schools were designed to try                                                               
to create 12-hour courses that people could take - to try not to                                                                
have onerous regulation coming down on existing small businesses                                                                
or..." [TESTIMONY INTERRUPTED BY TAPE CHANGE]                                                                                   
                                                                                                                                
TAPE 99-39, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MS. REARDON continued, "...(indisc.) schools from not getting -                                                                 
being student loan-eligible anymore, that hadn't - actually, we                                                                 
hadn't thought about the whole topic.  But perhaps on page 5, I                                                                 
don't know how the sponsor feels about it, but we could [have] said                                                             
something more like, 'The board will not issue a license to a                                                                   
school of manicuring unless the school offers a manicure course ...                                                             
of 12 hours of instruction.'  Something like that might work                                                                    
because as long as they offer a 12-hour course they can also offer                                                              
a 260-hour course or something."  The concern Ms. Reardon has, and                                                              
perhaps this was reflected in some of the sponsor's decision, is                                                                
that if some pressure is not put on [schools] to create the 12-hour                                                             
course, everyone will respond by only creating the 360-hour or                                                                  
180-hour courses.  Then, every manicurist in the state would have                                                               
to take one of those longer courses.  Ms. Reardon does see why a                                                                
school want to offer a comprehensive course like the one described                                                              
in the bill packet; there is no harm in having a more complete                                                                  
education.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG questioned Mr. Salik if there had been any                                                                    
testimony from "postsecondary education" on this legislation.                                                                   
                                                                                                                                
MR. SALIK answered in the negative.                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG noted, then, his suspicions are not necessarily                                                               
confirmed in terms of the student loan program.                                                                                 
                                                                                                                                
MR. SALIK indicated he believes some of the manicurists' curriculum                                                             
is covered during the barber/hairdressing program.  He noted this                                                               
simply might be a further refresher.  Most current barbers or                                                                   
hairdressers already have a basic understanding of manicuring and                                                               
have performed some manicures.                                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG acknowledged Representative Brice's question,                                                                 
commenting, "Before we beat this thing to death here for a minute,                                                              
but maybe we'll go back to it ...."                                                                                             
                                                                                                                                
Number 0083                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE said he thinks they still need to beat a                                                                   
little bit more.  He asked what the basis was for the 12 hours.  In                                                             
response to Mr. Salik's comment, Representative Brice said he                                                                   
understands why, but questioned how.                                                                                            
                                                                                                                                
MR. SALIK indicated the number of hours was set with the intention                                                              
that it be small enough to allow someone from a more remote                                                                     
location to travel to Anchorage and complete the course over a                                                                  
weekend, rather than having to close her/his shop for an extended                                                               
period of time.  Mr. Salik further indicated other states require                                                               
between six to eight weeks, or similar.                                                                                         
                                                                                                                                
REPRESENTATIVE BRICE noted 20 hours is more than 12 hours but not                                                               
six weeks.  He understands there has to be a certain level of                                                                   
arbitrary decision; he is just wondering if 12 hours is enough.  He                                                             
has heard testimony that there are some pretty invasive techniques                                                              
performed, referring to Mr. Salik's earlier comment about drilling                                                              
and drawing blood.  Representative Brice noted fairly sharp                                                                     
implements being stuck up through a person's cuticle; he pointed                                                                
out that is a question.  However, Representative Brice said he also                                                             
would like to clarify a statement made by Ms. Reardon.  He                                                                      
indicated he thought he had understood Representative Murkowski's                                                               
comments until Ms. Reardon spoke.  Representative Brice referred to                                                             
language on page 2 being added to current statute, "The board may                                                               
not require an applicant for licensure as a manicurist to take or                                                               
pass an examination for the field of manicuring."  He believes it                                                               
was Ms. Reardon's testimony that this would not bar a school from                                                               
giving a test before a person receives her/his certificate of                                                                   
completion.  However, Representative Brice indicates he thinks this                                                             
would not allow a test to be required at all.  He described the                                                                 
scenario of someone taking the 12-hour course and using this                                                                    
language to inform the school it expressly is not allowed to                                                                    
require a test before giving out the certificate of completion.                                                                 
                                                                                                                                
Number 0192                                                                                                                     
                                                                                                                                
MS. REARDON indicated she feels pretty comfortable saying the                                                                   
intent of this language was to refer to back to the earlier                                                                     
sentences of that section relating to the duties and functions of                                                               
the board regarding meetings and examinations.  She indicated the                                                               
language Representative Brice referenced may not clearly reflect                                                                
this intent.  If the committee is of the mind to "fine-tune" the                                                                
legislation through a committee substitute already, Ms. Reardon                                                                 
thought the department would not have any problem with clarifying                                                               
that point:  the board may not require a board examination but                                                                  
schools may require examinations of their choice.  She explained                                                                
the department does not want to offer a board examination because                                                               
it would have to write the examination and conduct it.                                                                          
                                                                                                                                
MR. SALIK said that was correct.  The intent was not to require the                                                             
board to test, but the schools might require anything they would                                                                
like including a practical test.  It would be the school's                                                                      
requirement, not the board's, not the state's.                                                                                  
                                                                                                                                
MS. REARDON noted perhaps additional wording regarding the 12-hour                                                              
limit on instruction - to the effect that the person has to have                                                                
successfully completed the 12 hours - would make the committee more                                                             
comfortable.  She indicated this would provide some flexibility and                                                             
commented these are improvements to the legislation.                                                                            
                                                                                                                                
Number 0280                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG indicated his preference would be to mandate some                                                             
type of examination, even if it was a practicum, so that the school                                                             
would have record that an individual actually took an exam in case                                                              
the person was audited for her/his conduct.                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE indicated his agreement and a bit of remaining                                                             
concern with the 12-hour issue.                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. Salik, regarding the 12-hour course, if                                                             
there had been any testimony regarding the curriculum [necessary]                                                               
to train a manicurist.                                                                                                          
                                                                                                                                
MR. SALIK answered it was the intent to allow the board to define                                                               
the curriculum.                                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG noted the issue is whether 12 hours is enough                                                                 
time.                                                                                                                           
                                                                                                                                
MR. SALIK indicated it was felt the definition of "health, safety                                                               
and hygiene" was of the proper breadth to allow the board to                                                                    
determine the curriculum which would need to be covered.                                                                        
                                                                                                                                
Number 0359                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA questioned if there is an upper reasonable                                                                
limit of what could conveniently fit into a weekend if the intent                                                               
is avoid business disruption for those who would need to travel to                                                              
participate.  She noted she could see the situation where the board                                                             
would select more items than would be effective to put into 12                                                                  
hours, commenting that "to lock it onto that" does seem to                                                                      
arbitrary.  She asked if 12 hours was it.                                                                                       
                                                                                                                                
MS. REARDON replied that, certainly, there was some arbitrariness                                                               
to 12 hours.  She wanted to put an upper limit so that it wouldn't                                                              
be a huge number of hours and the sponsor cooperated.  Ms. Reardon                                                              
is just not aware of very much research on this profession.  She                                                                
would recommend against being specific in statute about the                                                                     
curriculum, above and beyond the fact that it is health and safety                                                              
the state is concerned with.  Her reasoning for this is that she                                                                
suspects there will be a lot more public comment from schools                                                                   
during the regulation writing process.  She said the schools are                                                                
pretty active interacting with the board about curriculum and                                                                   
similar items.  Ms. Reardon suspects the advent of acrylic nails,                                                               
with the possibilities of infection and other similar issues, has                                                               
been the impetus for licensing like this.  If the curriculum is set                                                             
in statute, the statute might need to be revised in a couple of                                                                 
years as different kinds of nails and products come out.  Ms.                                                                   
Reardon expressed her lack of knowledge about nail issues, noting                                                               
perhaps that is why she hesitates to put anything in the law                                                                    
regarding the curriculum.                                                                                                       
                                                                                                                                
Number 0500                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE explained he brings the issue up because he                                                                
carried a bill dealing with the subject a few years previously.                                                                 
That legislation spoke of 300 hours; Representative Brice noted he                                                              
had to fight to get it down to 300 hours.  He discussed that                                                                    
former-Representative Cynthia Toohey had been a member of the                                                                   
legislature at that time.  She had her nails done and, as a nurse,                                                              
had treated diabetics who had to have manicures [pedicures] because                                                             
of the high risk of infection in the feet.  Representative Brice                                                                
indicated former-Representative Toohey had been familiar with the                                                               
"more precarious" techniques associated with the profession.  This                                                              
is where Representative Brice's concern comes from.  Additionally,                                                              
as he recalls, few states offered less than 150 hours at that time.                                                             
                                                                                                                                
REPRESENTATIVE HALCRO questioned that beauty schools currently                                                                  
touch on manicuring.  The schools have this comprehensive program                                                               
teaching a person to cut hair, do nails and do some skin                                                                        
treatments.  He asked if this would mandate that these schools                                                                  
dedicate a minimum of 12 hours, or if this would mandate that the                                                               
schools provide a whole different course.  Representative Halcro                                                                
asked if the schools would still be able to incorporate manicuring                                                              
into their current curriculum.                                                                                                  
                                                                                                                                
MS. REARDON explained SB 51 sets requirements for a manicurist's                                                                
license.  Currently, some manicurist training is being provided to                                                              
people getting hairdressers' licenses.  She would think the schools                                                             
could require whatever manicure training they wished for the                                                                    
hairdresser's license.  Through regulation, the board has required                                                              
a certain amount of manicuring for a hairdresser's license.  This                                                               
statute gives the board a lot of leeway - the board sets the hour                                                               
amount and the entire curriculum for barbering and hairdressing;                                                                
the statute contains very little specific detail about how the                                                                  
state will license that.  Ms. Reardon believes the board requires                                                               
1600 hours of training and a certain amount of different                                                                        
procedures.  She doesn't think manicuring is required of barbers                                                                
but is required of hairdressers.  The required amount of manicuring                                                             
for hairdressers should appear in the regulations.  Ms. Reardon                                                                 
stated, "I would think that they could continue to do that, both to                                                             
meet the board 'regs' or to exceed the board 'regs,' if they chose                                                              
to - for hairdressers, just not for manicurists' licenses."                                                                     
                                                                                                                                
Number 0641                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG drew Ms. Reardon's and the committee's attention                                                              
to a March 25, 1999, letter or fax in the bill packet sent to the                                                               
Senate from Rosalyn Wyche, a member of the Board of Barbers and                                                                 
Hairdressers.  He indicated the communication said the board agreed                                                             
with SB 51 except for the amount of hours manicurists should                                                                    
receive and that they should be tested.  The communication                                                                      
recommends 300 hours and following the Milady textbook.  The                                                                    
chairman questioned Ms. Reardon about this.                                                                                     
                                                                                                                                
MS. REARDON explained Ms. Wyche and another board member had missed                                                             
the last board meeting due to weather conditions.  Indicating an                                                                
attempt to teleconference has not been successful, Ms. Reardon said                                                             
she believes Ms. Wyche based her letter on positions the board had                                                              
taken in previous meetings or years.  However, at the March 22,                                                                 
1999, meeting the board did discuss this very topic of hours and                                                                
Ms. Reardon observed it appeared the board felt getting licensing                                                               
this way is a good start and could be adjusted in future years.                                                                 
Referring to the minutes of that board meeting, Ms. Reardon noted                                                               
a motion had been carried unanimously by the three members present                                                              
expressing the board's approval or support for the CS for SB 51, as                                                             
presented in Version G, the current version [CSSB 51(L&C)].                                                                     
                                                                                                                                
MR. SALIK indicated the Senate Labor and Commerce Standing                                                                      
Committee, he believes, requested each board member be faxed                                                                    
regarding this legislation.  The responses are included in the bill                                                             
packet; Ms. Wyche's response [received 3/11/99] shows she was in                                                                
support of the legislation and had chosen not to provide further                                                                
comments.  Mr. Salik commented he had spoken with Ms. Wyche after                                                               
the legislation passed the Senate; she was glad it had come this                                                                
far and had expressed the board was excited that at least they had                                                              
something in the right direction.  Mr. Salik said the board is not                                                              
sure how far to go in that direction either.  He compared this to                                                               
how the 12 hours was arrived at.  Mr. Salik noted Ms. Wyche said                                                                
she personally believes more hours would be a better thing, but yet                                                             
the board agreed that 12 hours was a good step in the right                                                                     
direction.                                                                                                                      
                                                                                                                                
Number 0799                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked how the issue of "grandfathering" was                                                                
being handled.  He asked for confirmation that the practice of                                                                  
manicuring by a hairdresser who has gone through a class requiring                                                              
250 to 300 hours of manicurist training would not be disallowed by                                                              
this legislation because the person hasn't taken the 12-hour                                                                    
course.                                                                                                                         
                                                                                                                                
MR. SALIK replied he believes this version does not grandfather                                                                 
people in; these people would be asked to take the 12-hour course,                                                              
which would, at the very least, be a refresher for some.  He                                                                    
indicated he had done some research regarding other states and the                                                              
required hours vary greatly.                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG noted the state of Alaska requires 15 practical                                                               
[manicure] operations for a hairdresser's license and 180 wet hair                                                              
stylings and dryings.  The chairman commented the regulation                                                                    
reference is 12 AAC 09.160[(12)].                                                                                               
                                                                                                                                
REPRESENTATIVE BRICE wondered whether or not people with the                                                                    
hairdressing license should receive some type of grandfathering and                                                             
not be required to go through the 12-hour class.                                                                                
                                                                                                                                
Number 0910                                                                                                                     
                                                                                                                                
MS. REARDON clarified Representative Brice meant grandfathering in                                                              
currently-licensed hairdressers to receive manicurists' licenses,                                                               
not that hairdressers would be allowed to practice manicuring                                                                   
without a separate manicurist's license.  She noted the second                                                                  
option would cover both existing and future hairdressers; Ms.                                                                   
Reardon said it is just another option for dealing with that.                                                                   
                                                                                                                                
REPRESENTATIVE BRICE commented the question arises that if to                                                                   
receive a hairdressing license, a person has to go through a higher                                                             
standard of education and training.  He thinks it only stands to                                                                
reason that that license should give a person the right to practice                                                             
manicuring on its own.                                                                                                          
                                                                                                                                
MS. REARDON said she doesn't think the bill does that at this time,                                                             
however.                                                                                                                        
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to Section 20, on page 8.                                                                     
[Section 20 read:                                                                                                               
                                                                                                                                
     * Sec. 20.  AS 08.13.190 is amended to read:                                                                               
          Sec. 08.13.190.  Failure to possess a license or                                                                      
     permit.  A person who practices barbering, hairdressing,                                                                   
     manicuring, or esthetics [COSMETOLOGY], or operates a                                                                      
     shop, or operates a school of barbering, hairdressing,                                                                     
     manicuring, or esthetics [COSMETOLOGY], or teaches in a                                                                    
     school of barbering, hairdressing, manicuring, or                                                                          
     esthetics [COSMETOLOGY], without a license, temporary                                                                      
     permit, temporary license, or student permit and who is                                                                    
     not exempt under AS 08.13.120 or under AS 08.13.160(d) is                                                                  
     guilty of a class B misdemeanor.]                                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI noted this is the penalty for failure to                                                               
possess a license or permit.  She would bring this up in the House                                                              
Judiciary Standing Committee if this legislation had that referral:                                                             
she thinks there is a great difference between someone teaching or                                                              
operating a school without a license and this group of manicurists                                                              
who would only have to take this 12-hour health and safety course                                                               
without an examination.  However, these manicurists would still be                                                              
guilty of a Class B misdemeanor if they fail to take this course                                                                
and get their licenses.  Representative Murkowski commented this                                                                
does not equate.  She recommended the examination of this and                                                                   
removal or reduction of the penalties for at least the manicurists.                                                             
                                                                                                                                
Number 1025                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG noted all occupational licensing infractions are                                                              
subject to Class B misdemeanors; it is a universal penalty.  He                                                                 
questioned Ms. Reardon regarding the last occasion someone in                                                                   
Alaska was charged with a criminal misdemeanor for being out of                                                                 
violation with his/her license.                                                                                                 
                                                                                                                                
MS. REARDON answered that it has not occurred in their memory.                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG questioned if it is correct that all occupational                                                             
licensing infractions are generally subject to the Class B                                                                      
misdemeanor.                                                                                                                    
                                                                                                                                
MS. REARDON answered there are a few that might be Class A                                                                      
misdemeanors.  Mobile home dealers, unusually enough, might be                                                                  
subject to Class A misdemeanors.  Ms. Reardon added, "And also in                                                               
some philological reasons in some of the professions like medical.                                                              
If you practice without a doctor's license, I think it can work its                                                             
way up to maybe even a lower felony or something."  She indicated,                                                              
however, the general penalty for occupational licensing infractions                                                             
is a Class B misdemeanor but there are quite practical difficulties                                                             
with applying that because the district attorney's office and the                                                               
police are pursuing many types of crimes.  Therefore, the division                                                              
likes to have some penalty in statute to encourage compliance with                                                              
licensing even though it may never be enforced.  The penalty could                                                              
be a different level, but Ms. Reardon feels there does need to be                                                               
some penalty.  She referred to unsuccessful legislation introduced                                                              
several years previously by Representative Jeannette James which                                                                
would have given boards the ability to assess fines for unlicensed                                                              
activity; that legislation was unsuccessful for an unrelated                                                                    
reason.  Currently, boards have no statutory authority over                                                                     
non-licensees.  It is left to the criminal justice system to punish                                                             
people, but it is not happening.                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG noted unless a person is on real estate                                                                       
commission.                                                                                                                     
                                                                                                                                
MS. REARDON indicated this was due to the chairman's previous                                                                   
legislation [the previous session's HB 33].                                                                                     
                                                                                                                                
Number 1118                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI said she would not have a problem with it                                                              
if the manicurist license actually meant something.  However, at                                                                
this point no examination is required; the person simply has to                                                                 
check in and pay her/his fees.  Representative Murkowski expressed                                                              
that putting these people in the same class as a beauty school                                                                  
teacher or operator does not make sense.                                                                                        
                                                                                                                                
MS. REARDON commented there are other professions Representative                                                                
Murkowski would probably feel the same way about, although her                                                                  
point is not invalid.  Ms. Reardon indicated there are some                                                                     
professions that basically only require a fee and signature.  She                                                               
questioned if there were other types of lower penalties that would                                                              
be a good idea.                                                                                                                 
                                                                                                                                
REPRESENTATIVE MURKOWSKI answered in the affirmative.                                                                           
                                                                                                                                
REPRESENTATIVE HALCRO noted there is a penalty for people                                                                       
practicing without a license; he non-seriously questioned if there                                                              
is a penalty for those practicing with a license but who are really                                                             
bad, commenting he has received some really bad haircuts.                                                                       
                                                                                                                                
MS. REARDON stated there is a very good point underlying that and                                                               
probably not one this legislation wishes to address:  there is not                                                              
the authority, if this bill passes, for the state to remove                                                                     
hairdressers', barbers', manicurists', or estheticians' licenses                                                                
for incompetence.  The statute states the board can discipline a                                                                
licensee for violating the chapter but nothing in the chapter says                                                              
a person has to perform at any specific level.  The chapter                                                                     
requires a person to have a license and some other similar                                                                      
requirements.  A school might be required to teach certain things                                                               
and give certain records but nowhere does the statute specifically                                                              
require safe or competent practice.  Therefore, the division cannot                                                             
cite anything in the chapter as being violated if a person fails                                                                
practice safely or competently.  Ms. Reardon noted she has brought                                                              
this issue up in other settings.  She thinks this is a bigger issue                                                             
for all of barber and hairdressing; it is not anything they are                                                                 
exacerbating except that it is being expanded to another                                                                        
profession.  Ms. Reardon noted the other downside of solving this                                                               
issue is that if the division had enforcement abilities, it would                                                               
then want to enforce.  This leads to the risk of a fiscal note for                                                              
realistic reasons.  Currently, the division spends no money on                                                                  
enforcement.  Ms. Reardon indicated that if a person calls with a                                                               
complaint regarding a licensee's competence, the division expresses                                                             
sympathy, but since it has no enforcement ability, it incurs no                                                                 
cost because no time is spent on the complaint.                                                                                 
                                                                                                                                
Number 1305                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG pointed out this is where the division relies on                                                              
"the invisible hand and the power of the marketplace to sort out                                                                
the competent from the incompetent," noting he thinks that                                                                      
basically works.  The chairman indicated he wished the transition                                                               
issue to be addressed.  He commented there are a large number of                                                                
people of Vietnamese background doing manicuring all over the West                                                              
Coast and in Alaska.  These people have been in business for a                                                                  
number of years without licenses or anything.  The chairman                                                                     
questioned if these people could receive the temporary licenses                                                                 
until they take the 12-hour course or how that transition would                                                                 
work.  He asked what he would have to do if he was currently a                                                                  
manicurist.                                                                                                                     
                                                                                                                                
MS. REARDON indicated all current manicurists would have until the                                                              
legislation's effective date, September 1, 2001, to receive the 12                                                              
hours of training and obtain their licenses.  Ms. Reardon expressed                                                             
her belief that if there is enough risk to public health and safety                                                             
to merit licensure and 12 hours of health and safety training for                                                               
this currently unregulated profession, not requiring existing                                                                   
practitioners to take this 12 hours of training would belie the                                                                 
concern about health and safety risk.                                                                                           
                                                                                                                                
Number 1438                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG commented it is the chairman's desire to take                                                                 
Representative Sanders' advice and assign this legislation to a                                                                 
very small subcommittee.  The chairman indicated this does not                                                                  
reflect negatively on Mr. Salik's efforts and that would be                                                                     
communicated to Senator Tim Kelly.  Chairman Rokeberg noted he is                                                               
concerned about the 12 hours.  He indicated he would like also like                                                             
to receive some feedback from ACPE on how this fits in; the                                                                     
chairman commented they obviously need an amendment in that area                                                                
just to clarify that and to make an examination is required before                                                              
someone is certified, with records of that examination, et cetera.                                                              
Additionally, they need to make sure the transition provisions are                                                              
acceptable.  Chairman Rokeberg indicated it sounds as if they are.                                                              
He guesses it is this issue regarding the length of hours and how                                                               
it fits into "postsecondary."                                                                                                   
                                                                                                                                
REPRESENTATIVE MURKOWSKI commented on the reference on page 5, line                                                             
7, to payment of a credential investigation fee for someone                                                                     
entering from another state.  She noted the person basically waives                                                             
into this licensure by proving her/his licensing in the other                                                                   
state.  She wondered whether this is the regular licensure fee or                                                               
if the person pays the license fee plus the credential                                                                          
investigation fee and exactly what this is all about.                                                                           
                                                                                                                                
MS. REARDON indicated she would have to check.                                                                                  
                                                                                                                                
Number 1575                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked how reciprocity with other states is                                                                 
handled.                                                                                                                        
                                                                                                                                
MR. SALIK indicated the legislation would create a temporary permit                                                             
for people who are already licensed in another state to allow these                                                             
people to practice in Alaska while obtaining Alaska licensure.                                                                  
                                                                                                                                
REPRESENTATIVE BRICE thought the committee would also want to have                                                              
the discussion about people who have had course work beyond the 12                                                              
hours through other licenses.                                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG noted he thinks that is one of the issues with                                                                
postsecondary education.  He appointed Representative Brice as                                                                  
chair of the subcommittee on SB 51 because of Representative                                                                    
Brice's expertise regarding this legislation.  The chairman                                                                     
indicated the two female members of the House Labor and Commerce                                                                
Standing Committee, Representative Cissna, also of the minority,                                                                
and Representative Murkowski would serve on the subcommittee.  The                                                              
chairman noted this is not a sexist recommendation; he indicated he                                                             
thinks "you of the fairer sex" have more expertise in this area                                                                 
than "us dumb guys over here."                                                                                                  
                                                                                                                                
REPRESENTATIVE CISSNA mentioned she has never had her nails done.                                                               
                                                                                                                                
CHAIRMAN ROKEBERG requested that the subcommittee, in conjunction                                                               
with Mr. Salik and Senator Tim Kelly, expeditiously bring back a                                                                
slightly revised version so SB 51 could properly be sent to the                                                                 
House floor in a proper way.  [CSSB 51(L&C) WAS ASSIGNED TO                                                                     
SUBCOMMITTEE]                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 1705                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing                                                               
Committee meeting at 4:51 p.m.                                                                                                  

Document Name Date/Time Subjects