03/28/2002 08:04 AM House STA
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 28, 2002
8:04 a.m.
MEMBERS PRESENT
Representative John Coghill, Chair
Representative Jeannette James
Representative Hugh Fate
Representative Gary Stevens
Representative Peggy Wilson
Representative Harry Crawford
MEMBERS ABSENT
Representative Joe Hayes
COMMITTEE CALENDAR
HOUSE BILL NO. 397
"An Act exempting a person driving a snowmobile from driver
licensing requirements."
- MOVED CSHB 397(STA) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 206(TRA)
"An Act relating to registration plates and parking permits for
persons with disabilities and to illegal use of parking spaces
for persons with disabilities."
- MOVED CSSB 206(TRA) OUT OF COMMITTEE
HOUSE BILL NO. 483
"An Act authorizing state procurement of group insurance for
employees of child care facilities, entities licensed as
residential child care facilities, child placement agencies,
foster homes, and maternity houses, and certain adult
residential and day services providers, and for employees of
certain nonprofit entities; repealing a provision of the state
group insurance procurement law relating to payment of dividends
and clarifying a provision of that law relating to part-time
employees; authorizing the commissioner of administration to
adopt regulations regarding state procurement of group
insurance; and providing for an effective date."
- HEARD AND HELD
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 315
"An Act allowing employers that are small businesses, small
nonprofit organizations, or small associations for insurance
purposes to join state employee insurance coverage as a group;
and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 438
"An Act relating to motor vehicle registration plates for
disabled veterans; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS ACTION
BILL: HB 397
SHORT TITLE:EXEMPTIONS FROM DRIVER'S LICENSING
SPONSOR(S): TRANSPORTATION
Jrn-Date Jrn-Page Action
02/08/02 2183 (H) READ THE FIRST TIME -
REFERRALS
02/08/02 2183 (H) TRA, STA
02/21/02 (H) TRA AT 1:00 PM CAPITOL 17
02/21/02 (H) Moved CSHB 397(TRA) Out of
Committee
02/21/02 (H) MINUTE(TRA)
02/25/02 2381 (H) TRA RPT CS(TRA) NT 6DP
02/25/02 2381 (H) DP: KOOKESH, KAPSNER, SCALZI,
OGAN,
02/25/02 2381 (H) MASEK, KOHRING
02/25/02 2381 (H) FN1: ZERO(CRT)
02/25/02 2381 (H) FN2: ZERO(DPS)
03/21/02 (H) STA AT 8:00 AM CAPITOL 102
03/21/02 (H) Scheduled But Not Heard
03/26/02 (H) STA AT 8:00 AM CAPITOL 102
03/26/02 (H) Heard & Held
03/26/02 (H) MINUTE(STA)
03/28/02 (H) STA AT 8:00 AM CAPITOL 102
BILL: SB 206
SHORT TITLE:DISABLED PARKING AND REGISTRATION PLATES
SPONSOR(S): SENATOR(S) DONLEY
Jrn-Date Jrn-Page Action
04/25/01 1262 (S) READ THE FIRST TIME -
REFERRALS
04/25/01 1262 (S) STA
06/08/01 1816 (S) TRA REPLACES STA REFERRAL
02/12/02 (S) TRA AT 1:30 PM BUTROVICH 205
02/12/02 (S) Moved CS(TRA) Out of
Committee
02/12/02 (S) MINUTE(TRA)
02/19/02 2220 (S) TRA RPT CS 5DP SAME TITLE
02/19/02 2220 (S) DP: COWDERY, WILKEN, TAYLOR,
ELTON,
02/19/02 2220 (S) WARD
02/19/02 2220 (S) FN1: (ADM)
02/19/02 2220 (S) FN2: ZERO(DPS)
02/19/02 2220 (S) FIN REFERRAL ADDED AFTER TRA
02/27/02 2325 (S) FIN REFERRAL WAIVED REFERRED
TO RULES
03/01/02 (S) RLS AT 10:30 AM FAHRENKAMP
203
03/01/02 2341 (S) RULES TO CALENDAR 3/1/02
03/01/02 2342 (S) READ THE SECOND TIME
03/01/02 2343 (S) TRA CS ADOPTED UNAN CONSENT
03/01/02 2343 (S) ADVANCED TO THIRD READING
UNAN CONSENT
03/01/02 2343 (S) READ THE THIRD TIME CSSB
206(TRA)
03/01/02 2343 (S) PASSED Y18 N- E2
03/01/02 2350 (S) TRANSMITTED TO (H)
03/01/02 2350 (S) VERSION: CSSB 206(TRA)
03/04/02 2459 (H) READ THE FIRST TIME -
REFERRALS
03/04/02 2459 (H) STA, FIN
03/19/02 2611 (H) CROSS SPONSOR(S): MEYER
03/28/02 (H) STA AT 8:00 AM CAPITOL 102
BILL: HB 483
SHORT TITLE:PROCUREMENT OF GROUP HEALTH INSURANCE
SPONSOR(S): REPRESENTATIVE(S)WILSON
Jrn-Date Jrn-Page Action
02/19/02 2317 (H) READ THE FIRST TIME -
REFERRALS
02/19/02 2317 (H) STA, L&C
02/19/02 2317 (H) REFERRED TO STATE AFFAIRS
03/28/02 (H) STA AT 8:00 AM CAPITOL 102
BILL: HB 315
SHORT TITLE:GROUP HEALTH INSURANCE FOR PRIVATE GROUPS
SPONSOR(S): REPRESENTATIVE(S)ROKEBERG
Jrn-Date Jrn-Page Action
01/14/02 1957 (H) PREFILE RELEASED 1/11/02
01/14/02 1957 (H) READ THE FIRST TIME -
REFERRALS
01/14/02 1957 (H) STA, L&C, FIN
02/15/02 2281 (H) SPONSOR SUBSTITUTE INTRODUCED
02/15/02 2281 (H) READ THE FIRST TIME -
REFERRALS
02/15/02 2281 (H) STA, L&C, FIN
03/21/02 (H) STA AT 8:00 AM CAPITOL 102
03/21/02 (H) Scheduled But Not Heard
03/26/02 (H) STA AT 8:00 AM CAPITOL 102
03/26/02 (H) Heard & Held
MINUTE(STA)
03/28/02 (H) STA AT 8:00 AM CAPITOL 102
WITNESS REGISTER
MIKE KRIEBER, Staff
to Representative Vic Kohring
Alaska State Legislature
Capitol Building, Room 24
Juneau, Alaska 99801
POSITION STATEMENT: Presented HB 397 to the committee on behalf
of the bills sponsor, the House Transportation Standing
Committee.
SENATOR DAVE DONLEY
Alaska State Legislature
Capitol Building, Room 506
Juneau, Alaska 99801
POSITION STATEMENT: Testified as the sponsor of SB 206.
CHUCK HOSACK, Deputy Director
Division of Motor Vehicles
Department of Administration
3300B Fairbanks Street
Anchorage, Alaska 99503
POSITION STATEMENT: Answered questions related to SB 206.
WILLIAM CRAIG
Alaska Independent Blind
613 Degroff Street
Sitka, Alaska
POSITION STATEMENT: Testified in support of [CSSB 206(TRA)].
RONNI SULLIVAN, Director
Southern Region Emergency Medical Services Council
6130 Tuttle
Anchorage, Alaska 99507
POSITION STATEMENT: Testified in support of HB 483 and SSHB
315.
MARGARET LaVIGUEUR
Homer Senior Center
3935 Svedlund Street
Homer, Alaska
POSITION STATEMENT: Indicated support of "this bill."
BILL HOGAN, Chief Executive Officer
Life Quest Comprehensive Mental Health Services
230 E. Paulson
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SSHB 315.
MARY ROSENZWEIG, Executive Director
Substance Abuse Directors Association
4111 Minnesota Drive
Anchorage, Alaska 99503
POSITION STATEMENT: Testified in support of [SSHB 315].
FRANK KEEN
Health Insurance Broker
3531 W 31st Avenue
Anchorage, Alaska 99517
POSITION STATEMENT: Encouraged the committee to do what it can
to improve accessibility [to affordable health insurance].
FRED JENKINS, Executive Vice President
United Way of Anchorage
701 W 8th Avenue, Number 230
Anchorage, Alaska 99501
POSITION STATEMENT: Testified in support of any integration of
SSHB 315 and HB 483 [with the addition of] the category for
special service organizations to the bill.
CANDACE WINKLER, Associate Executive Director
Child Care Connection
3350 Commercial Drive
Anchorage, Alaska 99501
POSITION STATEMENT: Testified in support of amending SSHB 315
as proposed.
REPRESENTATIVE NORMAN ROKEBERG
Alaska State Legislature
Capitol Building, Room 118
Juneau, Alaska 99801
POSITION STATEMENT: Testified as the sponsor of SSHB 315.
ACTION NARRATIVE
TAPE 02-33, SIDE A
Number 0001
CHAIR JOHN COGHILL called the House State Affairs Standing
Committee meeting to order at 8:04 a.m. Representatives
Coghill, James, Fate, Stevens, and Crawford were present at the
call to order. Representative Wilson arrived as the meeting was
in progress.
HB 397-SNOWMOBILE DRIVERS' LICENSING EXEMPTION
CHAIR COGHILL announced the first order of business to be HOUSE
BILL NO. 397, "An Act exempting a person driving a snowmobile
from driver licensing requirements." [Before the committee was
CSHB 397, Version 22-LS1448\O, Ford, 3/22/02.]
Number 0155
MIKE KRIEBER, Staff to Representative Vic Kohring, Alaska State
Legislature, presented HB 397 to the committee. He explained
that existing law requires an operator to be 16 years of age and
to possess a driver's license in order to operate a snowmobile,
an all-terrain-vehicle (ATV), a boat, or an airplane. This
applies to operators in the backcountry or any type of parkland,
in addition to roads. He said, "We feel that that is not ... an
appropriate application of the law." He expressed his opinion
that a family should determine the appropriate age of the
operator and the safety requirements. People should be able to
recreate with off-road vehicles without the minimum age
requirement and a driver's license, he opined. Many people in
rural areas do not have vehicles or access to a [Division of
Motor Vehicles] (DMV) field office in order to obtain a license.
He said, "There appears to be an inconsistency in an application
of a law requiring a driver's license for a vehicle where you
don't have any of the common themes of the equipment you're
operating compared to a car driving on roads." He stated that
this bill was prepared by and passed out of the House
Transportation Standing Committee (HTRA) with unanimous
recommendations from its members. He pointed out that a
driver's license would still be required on a roadway were HB
397 to become law.
Number 350
MR. KRIEBER reported that [Representative Kohring's office]
worked with the [Division] of Motor Vehicles and the Department
of Law to draft the current language. He stated that DMV and
Department of Law personnel recently testified in support of HB
397. The Department of Natural Resources (DNR) is working with
the Snowmobile Trails Advisory Committee (SnowTRAC) to address
safety issues. The SnowTRAC board has formed a group to address
safety concerns around the state and to make a recommendation
for statewide or regional programs to address safety,
certification, and age issues. He noted that any
recommendations would be made in collaboration with DNR by the
fall. He indicated that Jim Stratton, Director, Central Office,
Division of Parks and Outdoor Recreation, Department of Natural
Resources, testified at the HTRA hearing about the [forthcoming
recommendations]. Mr. Krieber referenced recent testimony in
HTRA from a member of SnowTRAC regarding the goals or the
SnowTRAC safety program.
Number 0469
REPRESENTATIVE JAMES asked what other states do to address this
issue.
MR. KRIEBER replied that many states have safety programs. Some
states require certification and set a minimum age for
operators.
REPRESENTATIVE JAMES inquired, "Have we ever had anyone in the
state that has been seriously injured or killed ... in a snow
machine accident that was under the age of 16?"
MR. KRIEBER replied that HTRA had heard statistics that
indicated that of the 30-some deaths, 3 deaths were of children
under 16 years of age. He added that one of the goals of the
legislation is to allow law-abiding citizens to recreate. He
related a situation in which non-licensed Boy Scouts couldn't go
on a snowmobile trip, although they had taken a safety-training
course. This scout leader had to tell his non-licensed scouts
that they could not go on the trip.
Number 0546
REPRESENTATIVE JAMES asked how old the scouts were that had to
be excluded from the trip.
MR. KRIEBER replied that they were 14 or 15 years of age.
REPRESENTATIVE JAMES asked if these scouts simply didn't
understand the law.
Number 0615
MR. KRIEBER answered that this law has been on the books for
quite a few years. Various testimony heard last year from the
director of DMV evidenced that Alaska requires a driver's
license for an airplane. He referenced the Department of
Transportation and Public Facilities (DOT&PF) winter
transportation study conducted last year that identified this as
an issue. A pamphlet was published by DOT&PF last fall
concerning requirements for snowmobiles and trails; the
Anchorage Daily News ran a headline story about the information
in the pamphlet. This story resulted in inquiries and requests
from around the state.
REPRESENTATIVE JAMES queried how many of the deaths last year
were the result of intoxication, and how many of these people
had a revoked driver's license.
MR. KRIEBER replied that he did not know.
Number 0710
REPRESENTATIVE CRAWFORD related that when growing up in
Louisiana, operators without a driver's license could operate a
small motorcycle under 50 CCs; snowmobiles were not an issue in
that state. He stated that he had been working in Houston last
winter where he witnessed youth riding snowmobiles alongside the
road at a speed faster than he was driving on the highway. He
observed that today's snowmobiles can reach speeds of 80 miles
per hour and greater. He asked, "Do we really think ... it's a
good thing for, possibly, a ... 10 [or] 12-year-old to be out
there on a high-powered snow machine or an ATV? Shouldn't there
be some sort of requirements?" He referred to the 3 deaths of
children last year; these represent 3 families that lost their
children. He concluded, "I don't want to rush into anything
that we haven't completely ... thought through."
Number 0858
MR. KRIEBER countered, "What we're trying to achieve here is
focusing on a law that would address this situation." He stated
that leaving the current law on the books creates problems for
families. This legislation addresses four-wheelers and other
off-road vehicles. For example, families who have set-net
permits use four-wheelers and outboard motors for their family
fishing operation. The [law] states that people operating such
vehicles without a license are in violation of the law. He
agreed that these are high-powered machines, and he is appalled
that parents allow 10- or 12-year-old children to drive such
machines outside a family [activity].
Number 0930
CHAIR COGHILL interjected, "The instance that he was ...
alluding to on the highway - it's illegal - whether it's a four-
wheeler or a snow machine." He added that some egregious issues
with watercraft exist; some personal watercraft can be
troublesome when operated irresponsibly. This applies to four-
wheelers, snow machines, and small motorbikes. He noted that in
his district, some of the off-road vehicles create so much noise
that the noise is more troublesome than anything else. Some
operators go through peoples' yards and gardens. He said that a
greater issue exists beyond that of the licensing matter.
Number 0985
REPRESENTATIVE WILSON commented that when she lived in Tok,
during cold spells snowmobiles were the only way some students
could get to school quickly. She added that it is not unusual
for children to operate watercraft in Southeast; parents teach
their children at a young age to run a skiff. It is common in
Alaska for people to use off-highway vehicles for everyday
transportation. She recognized that this issue is a dilemma.
Number 1076
REPRESENTATIVE COGHILL pointed out that this legislation does
not pretend to fix all the problems associated with an
operator's irresponsible behavior. It repeals something that is
problematic for enforcement and those who want to follow the
law, but it is a law that is disregarded by many.
Number 1166
REPRESENTATIVE FATE moved to report CSHB 397 [Version 22-
LS1448\O, Ford, 3/22/02] out of committee with individual
recommendations and the accompanying fiscal notes.
REPRESENTATIVE JAMES objected and indicated her trepidation
about this bill. However, she noted that she would probably
vote to move it out. She agreed that it is a concern especially
in rural areas. She said, "I can tell you that these young kids
going down ... through my yard is very distressing at 'zumpteen'
miles per hour, and I don't want to be responsible for changing
the law to allow them to kill themselves." She predicted that
these youth would probably do the same thing whether the law was
changed or not. She noted that she would be comfortable if [the
bill] provided a fix instead of an "unfix" for something that
doesn't work. She observed that this is not a solution to a
problem; it only removes something that doesn't work, but it's
not replacing it with something that will work. She removed her
objection.
Number 1220
REPRESENTATIVE COGHILL asked Mr. Krieber whether discussion of
further work had occurred to address some of these issues
pertaining to irresponsible operation of off-road vehicles.
Number 1234
MR. KRIEBER replied that work would be done with DNR and other
groups; many of the forthcoming recommendations will apply to
snowmobiles as well as four-wheelers. The boating safety
program through DNR is already in place. He stated that some of
these issues would be addressed by working with the constituency
and the public to determine the best actions to take for various
parts of the state. Urban and rural off-road vehicle uses are
different. He said, "We do intend on following up on this next
year in conjunction with the departments and groups."
REPRESENTATIVE JAMES explained that her house has water on one
side and a ditch on the other. She said, "My yard gets used a
lot."
REPRESENTATIVE COGHILL added that he lives on the same slough,
and it becomes a "raceway" in the summer. He observed that many
operators have acted irresponsibly, have wound up in the water,
and have had to be rescued. He acknowledged that significant
safety problems exist; this [bill] is not pretending to fix them
all.
There being no objection, CSHB 397(STA) was reported out of
committee.
SB 206-DISABLED PARKING AND REGISTRATION PLATES
CHAIR COGHILL announced that the next order of business would be
CS FOR SENATE BILL NO. 206(TRA), "An Act relating to
registration plates and parking permits for persons with
disabilities and to illegal use of parking spaces for persons
with disabilities."
Number 1380
SENATOR DAVE DONLEY, Alaska State Legislature, testified as the
sponsor of SB 206. He explained that SB 206 updates Alaska's
parking laws for disabled persons. For the last three years
Senator Donley has sent requests [for input and interest in this
legislation] to all groups and individuals that his office could
identify as representing the disabled community. Over the three
years there were many changes, which ultimately resulted in SB
206. Senator Donley pointed out that under current law it's not
clear whether the handicapped individual has to be in the
vehicle in order for the handicap permit to be used. This bill
makes it clear that to the use the handicap permit there must be
a handicapped/disabled individual in the vehicle getting in and
out of the vehicle. Additionally, the fine for illegally
parking in a handicap parking spot is increased to $125 and
places two points on a person's driver's license for any offense
after the first offense. Moreover, the bill creates a new fine
of $250 and two points on a person's driver's license if an
individual misuses a disabled permit.
SENATOR DONLEY noted that the original version of SB 206 was
patterned after legislation in other states that require some
sort of photo identification so that the permits could be
matched to the actual individual that was supposed to use the
permit. After talking with the Division of Motor Vehicles
(DMV), the division was able to modify its computer programming
such that when police officers check for an individual's license
and registration, there will be a record as to whether the
individual is authorized to use a handicap parking permit.
Therefore, the identification wouldn't be necessary. Senator
Donley remarked that this legislation adds protections for those
who really need handicap parking spaces.
Number 1563
REPRESENTATIVE WILSON said this is important legislation.
REPRESENTATIVE STEVENS inquired as to the rules that businesses
must follow when designating handicap parking spots.
Number 1680
CHUCK HOSACK, Deputy Director, Division of Motor Vehicles,
Department of Administration, testified via teleconference. In
most cases, the number of parking spaces is governed by
municipal code. There is no state requirement. Some of the
stores with more than the minimum [municipal] requirement have
done so by their own choice.
SENATOR DONLEY recalled that per the federal Americans with
Disabilities Act (ADA) there are specifications with regard to
the size of handicap parking spaces as well as how they should
be identified.
MR. HOSAK agreed. He explained that handicap parking spaces
must be a certain dimension and allow wheelchair access. The
ADA also provides guidelines for the ratio of handicap parking
to regular parking.
Number 1765
WILLIAM CRAIG, Alaska Independent Blind, expressed support of
[CSSB 206(TRA)]. Mr. Craig related his experience with folks
who are not disabled parking a car with disabled plates in a
handicap space. Although parking permits for disabled
individuals is a good idea, some of the loopholes need to be
closed. This legislation appears to do just that.
CHAIR COGHILL highlighted that intent [language] for citizen
volunteers. Therefore, he inquired as to how the issuance of
these parking permit fines interacts with the citizen groups.
SENATOR DONLEY explained that when comments were solicited on
the first draft legislation, one of the more common responses
was to provide for voluntary enforcement. Quite a few
municipalities in other states have authorized citizens to issue
a citation or some sort of enforcement action. Although that
option already exists under Alaska law, many of the local
governments weren't utilizing that option. Therefore, the
intent language was inserted in order to encourage local
governments to use this option.
REPRESENTATIVE FATE directed attention to page 4, line 27, which
refers to a fine of $250 and eight hours of community service
for a violation under AS 28.10.181. He inquired as to why the
penalty is almost double under AS 28.10.181.
SENATOR DONLEY clarified that the aforementioned penalty is
assessed when an individual intentionally misuses a permit and
thus there is an element of fraud.
REPRESENTATIVE JAMES asked if the aforementioned fine could be
issued in a situation in which a person who isn't handicap is
driving a car that has handicap license plates without the
handicap person in the car and parks in a handicap parking
space.
SENATOR DONLEY replied yes.
Number 1995
CHAIR COGHILL turned to Section 8, which inserts a new
subsection that speaks to municipalities. This new subsection
seems to increase the awareness of the municipalities.
SENATOR DONLEY agreed. He pointed out that some municipalities
in Alaska have adopted their own parking and traffic codes.
This language allows the local governments the option to adopt
their own [ordinances] in order to do their own enforcement
using their own local resources.
REPRESENTATIVE STEVENS mentioned his frustration when he sees
seemingly healthy individuals [park in] handicap parking spaces.
However, he has been concerned that those people might have a
disability that he couldn't see or understand.
SENATOR DONLEY specified that Alaska law is consistent with the
federal ADA criteria, although Alaska could adopt its own law if
it wanted. He offered to provide the committee with a
description of that federal law. In further response to
Representative Stevens, Senator Donley clarified that SB 206
doesn't change existing standards nor does it deviate from the
national standards.
REPRESENTATIVE JAMES indicated that [ADA] specified a [maximum]
length, perhaps 200 feet, that a handicap individual could walk
and thus for that length the individual may not look handicap.
Number 2203
REPRESENTATIVE FATE moved to report CSSB 206(TRA) out of
committee with individual recommendations and the accompanying
zero fiscal notes. There being no objection, CSSB 206(TRA) was
reported from the House State Affairs Standing Committee.
HB 483-PROCUREMENT OF GROUP HEALTH INSURANCE
SSHB 315-GROUP HEALTH INSURANCE FOR PRIVATE GROUPS
CHAIR COGHILL announced that the next order of business would be
the following two bills: HOUSE BILL NO. 483, "An Act
authorizing state procurement of group insurance for employees
of child care facilities, entities licensed as residential child
care facilities, child placement agencies, foster homes, and
maternity houses, and certain adult residential and day services
providers, and for employees of certain nonprofit entities;
repealing a provision of the state group insurance procurement
law relating to payment of dividends and clarifying a provision
of that law relating to part-time employees; authorizing the
commissioner of administration to adopt regulations regarding
state procurement of group insurance; and providing for an
effective date"; and SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 315,
"An Act allowing employers that are small businesses, small
nonprofit organizations, or small associations for insurance
purposes to join state employee insurance coverage as a group;
and providing for an effective date."
CHAIR COGHILL noted that these bills will be heard together
because he understood that they [may be] combined in a committee
substitute (CS) for SSHB 315.
Number 2311
RONNI SULLIVAN, Director, Southern Region Emergency Medical
Services Council, testified via teleconference. Ms. Sullivan
informed the committee that the Southern Region EMS, a 501(c)(3)
nonprofit organization, is one of seven regions around the
state. Southern Region EMS supports the activities of ambulance
and first responder services throughout the region. There are
92 ambulance and first responder services in the region. Ms.
Sullivan noted that about 75 percent of the Southern Region EMS
funding is received from state grant funds. The Southern Region
EMS has a staff of ten employees, eight of which are full-time
employees who are eligible for benefits. The trend over the
years has been increasing costs and fixed or decreasing grant
funds. Furthermore, health insurance costs have risen
disproportionately and perhaps even more disproportionately in
small businesses with under ten employees. In the Southern
Region, health insurance rates have risen by over 52 percent
over the last seven years; 42 percent of that 52 percent
increase occurred last year alone.
MS. SULLIVAN reiterated that Southern Region EMS is a small
group. Insurers really don't want to insure small groups. She
said that insurers of small groups have the ability to provide
[small groups] with unfair scrutiny of individual health
histories. Whenever there are claims against the policy, it
seems that the policy amounts increase the next period. For the
most part, the state bears the burden of those increases because
Southern Region EMS's grant pays for its personnel and health
care costs. Ms. Sullivan noted that Southern Region EMS has
tried to live within a reasonable budget and even had to drop
dependent coverage due to the increased cost. Furthermore,
coverage for Southern Region EMS employees only covers the
employee, the deductible was raised, and the coverage was
decreased. Little more can be done. Ms. Sullivan informed the
committee that for eight employees she pays $7,000 a month for
health care, which is unreasonably high. Unfortunately, there
is no relief in sight. Without benefits, she can't keep people,
she said. Ms. Sullivan said that both [HB 483 and SSHB 315]
would provide an opportunity for Southern Region EMS to provide
good insurance for a reasonable price while saving the state
money.
MS. SULLIVAN informed the committee that most emergency medical
services are nonprofits, which aren't associated with their
municipality. There have been problems with recruitment and
retention of volunteers willing to take on the degree of
responsibility [necessary]. This has also been the case with
agencies within the fire service. Therefore, [these bills]
would provide an opportunity for those volunteer agencies to
perhaps have access to health insurance. In conclusion, she
urged the committee's support of both bills whether individually
or collectively.
Number 2543
MARGARET LaVIGUEUR, Homer Senior Center, testified via
teleconference. Ms. LaViguer agreed with Ms. Sullivan's
comments. She indicated support of "this bill."
BILL HOGAN, Chief Executive Officer, Life Quest Comprehensive
Mental Health Services, testified via teleconference. He
informed the committee that Life Quest is primarily responsible
for [providing] most of the mental health needs of the residents
of the Mat-Su Valley. Life Quest is funded by a mix of both
state and federal grants, contracts, and fees. Over the past
five years, Life Quest's health care premiums have increased by
over 100 percent. Therefore, a number of years ago Life Quest
was forced to drop employer-funded dependent coverage because it
became too expensive. The most recent benefit cycle with its
dramatic increase in premiums forced Life Quest to drop dental
and vision coverage and increase deductibles. With about 110
employees, it's very difficult to find affordable health care
premiums. "Our ability to attract and retain qualified,
effective employees is compromised by the quality of the health
care coverage we're able to provide," he pointed out. Mr. Hogan
noted support of the efforts outlined in SSHB 315, which gives
nonprofits such as Life Quest access to a larger insurance pool
that offers the advantage of premium rates that a large pool can
command.
Number 2685
MARY ROSENZWEIG, Executive Director, Substance Abuse Directors
Association, testified via teleconference. Mr. Rosenzweig noted
that she has sent the committee her testimony. She informed the
committee that the Substance Abuse Directors Association
represents a little over 50 agencies and individuals across the
state who provide substance abuse treatment and prevention
services. The issue of health insurance has come to the surface
over the past two years when [the association] conducted a
survey of its membership. On average the premium increases have
been about 36 percent over that two year period. However, some
agencies are experiencing a 100 percent increase over the course
of a year. In the two years of the survey, the average agency
per employee premium has increased from $4,400 to almost $6,000.
Furthermore, health insurance is taking a larger portion of the
[association's] operating budget. In the two years of the
survey, the health benefit average rose from 5.8 percent of the
operating budget to 7.6 percent of the operating budget.
Therefore, there is less money for services. These agencies
haven't received any increases, inflationary increases, in more
than 12 years. Since many of the agencies are providing state
social services as a nonprofit grantee, this all means that the
state is able to purchase less service with its dollars. She
informed the committee that the association has increased
deductibles and decreased the level of coverage. The
association has reached the point at which recruitment and
retention is a critical mass. Therefore, [such organizations]
are seeking relief, which [SSHB 315] will provide with little
cost to the state. In conclusion, Ms. Rosenzweig urged support
of [SSHB 315].
Number 2822
FRANK KEEN, Health Insurance Broker, testified via
teleconference. He said that he sees the increasing health care
costs in Alaska every day and thus he encouraged the committee
to do what it can to improve accessibility [to affordable health
insurance], especially for organizations that hire lower
compensated employees who can't afford health insurance. Mr.
Keen noted his opposition to any adverse action on the current
Denali Kid Care program. He explained that many of the
employers that he serves have employees and dependent children
who wouldn't have any coverage without the availability of
Denali Kid Care. He identified the biggest problem in Alaska as
the lack of competition. Mr. Keen recalled earlier comments
regarding discrimination against smaller employers, which he
says exists. Therefore, he said he believes that the state
should take action to prohibit discrimination against smaller
employers.
Number 2928
FRED JENKINS, Executive Vice President, United Way of Anchorage,
testified via teleconference. The United Way of Anchorage
provides funding for 48 nonprofit health and human service
agencies based in Anchorage. Mr. Jenkins said that he felt
confident in saying [for those 48 nonprofits] that anything the
legislature can do to make health insurance more affordable
would be very helpful. Mr. Jenkins explained that the obstacle
to affordable health insurance is probably not the fault of the
industry but rather it's that the insurance system doesn't work
well in Alaska. The reason the insurance system doesn't work
well in Alaska is partially because of the small pool of
potential insureds as well as some of the characteristics of the
population that "we're trying to insure." However, the lack of
affordable health insurance is an obstacle to nonprofits having
a stable workforce. In November, Mr. Jenkins did a survey of
the 48 funded nonprofits with which he works. He offered to
submit [the results] in writing.
TAPE 02-33, SIDE B
MR. JENKINS related [from the findings of his survey] that
premium costs averaged $6,000 per employee, which can only rise.
United Way of Anchorage experienced a 40 percent increase in its
insurance coverage this year. Mr. Jenkins announced that he
would support any integration of SSHB 315 and HB 483 [with the
addition of] the category for special service organizations to
the bill. He encouraged the committee not to limit access to
the plan to organizations who have large numbers of employees.
Many nonprofits have large employee bases because they operate
multi-site childcare or residential treatment facilities that
have to be staffed on a 24-hour basis. However, the number of
employees in an organization's base isn't an indicator of their
ability to afford insurance.
MR. JENKINS informed the committee that Dennis McMillan,
President, United Way of Anchorage, has worked closely with the
Departments of Health & Social Services, Administration, and
Commerce & Economic Development in order to develop solutions to
this problem. However, the major factor in accessing insurance
is affordability. Any help that the legislature can offer in
that vein would be appreciated.
CHAIR COGHILL noted that the committee substitute (CS) that will
be adopted soon does include the special service organizations.
Number 2875
CANDACE WINKLER, Associate Executive Director, Child Care
Connection, testified via teleconference in support of amending
SSHB 315 as proposed. Ms. Winkler informed the committee that a
four-year-old recently illustrated the child care crisis when
that child asked the question, "Mommy, who's going to be my
teacher today?" This child had three teachers in six months.
As an advocate for children and child care providers, Ms.
Winkler was disturbed by that comment. The turnover rate [for
child care providers] is 49 percent. She attributed the high
turnover rates to inadequate pay and lack of benefits. Most
child care providers earn between $16,000-$19,000 a year. Half
of all child care providers are living below the poverty level
and less than a third of them have health insurance.
MS. WINKLER emphasized that child care providers are important
to Alaska's economy. Currently, two-thirds of families with
children have two working parents. Furthermore, 65 percent of
mothers with children under six are working. Ms. Winkler
highlighted the importance child care providers have on the
future of the children with which they have contact. Currently,
there are approximately 5,000 child care workers in Alaska. Ms.
Winkler said:
For us to be able to provide consistent, quality care
to kids, it's important for us to be able to retain
staff members who have the experience in child
development. We can only do that by making their
lifestyle healthier by providing them with access to
health insurance. And by promoting the health of the
child care providers, we're wisely investing in those
who care for and refine Alaska's children. Please do
what you can to support this bill and to support the
people who are working on the front lines to raise our
kids.
CHAIR COGHILL apologized that the committee wouldn't be able
take further testimony today.
Number 2725
REPRESENTATIVE FATE moved to adopt CSSSHB 315, LS1177\O, Craver,
3/27/02, as the working document. There being no objection,
Version O was before the committee.
CHAIR COGHILL announced that he wouldn't close public testimony
today.
Number 2678
REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature,
testified as the sponsor of SSHB 315. He explained that Version
O adopts the concept of special service organizations and thus
allows people who are sole proprietors to participate. The bill
contains a litany of groups covered and defined. He pointed out
that Section 5 changes the effective date from July 2003 to
January 3, 2003, due to the significant demand for this bill.
Section 4 changes the small business organization size
requirement of 300 eligible employees to 50 eligible employees.
He explained that he has spent the last eight years trying to
create an environment in which private insurance underwriters
can enter the state. Therefore, he is sensitive to the group
that will be created and the type of competition there will be
with the private sector. This bill creates a new group that
will be under a private plan. Therefore, it avoids the mingling
of private people with state employees, which could jeopardize
the governmental exemption under the Employee Retirement and
Income Security Act of 1974 (ERISA). The provisions of the bill
provide a bidding process under the private sector.
CHAIR COGHILL noted that he will be inquiring as to the [make
up] of the pool; its access; and [interaction] with other
insurance areas under ERISA.
Number 2517
REPRESENTATIVE WILSON, sponsor of HB 483, said she was pleased
that Representative Rokeberg was willing to look at both bills
and consider what could be done for those in the special
services organizations. She expressed her pleasure in the
merging of the two bills. [HB 483 and SSHB 315 were held over.]
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:02
a.m.
| Document Name | Date/Time | Subjects |
|---|