Legislature(2007 - 2008)SENATE FINANCE 532

02/20/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 170 INSURANCE COVERAGE FOR WELL-BABY EXAMS TELECONFERENCED
Heard & Held
+ SB 226 VEXATIOUS LITIGANTS TELECONFERENCED
Heard & Held
+ SB 247 MISSING PERSONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                     February 20, 2008                                                                                          
                         9:15 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 9:15:04 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Lesil  McGuire; Trevor  Fulton, Staff, Senator  Lesil                                                                   
McGuire;  Linda   Hall,  Director,  Division   of  Insurance;                                                                   
Senator  Hollis   French;  Susan   Cox,  Assistant   Attorney                                                                   
General, Department  of Law, Juneau; Darwin  Peterson, Staff,                                                                   
Senator  Stedman;  Doug  Wooliver,  Administrative  Attorney,                                                                   
Alaska Court System                                                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Stephanie Birch,  Section Chief for Woman's,  Children's, And                                                                   
Family Health,  Division of Public Health,  Providence; Susan                                                                   
Johnson,  Director  of  Compensation,   Benefits,  and  Human                                                                   
Resources  information Systems,  Providence; Dr. Jody  Butto,                                                                   
Pediatrician,  President,  American  Academy  of  Pediatrics,                                                                   
Alaska  Chapter;   Dennis  DeWitt,  Alaska   State  Director,                                                                   
National Federation of Independent  Businesses; Peter Maasen,                                                                   
Lawyer, Anchorage; Mary Weir, Mat-Su                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 170    "An  Act   requiring  that  health   care  insurers                                                                   
          provide insurance coverage for well-baby exams."                                                                      
                                                                                                                                
          SB 170 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
                                                                                                                                
SB 226    "An  Act  relating   to  litigation  brought  by  a                                                                   
          vexatious litigant; amending Rules 3, 4, 12, and                                                                      
          41, Alaska Rules of Civil Procedure; and providing                                                                    
          for an effective date."                                                                                               
                                                                                                                                
          SB 226 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
SB 247    "An   Act   relating   to   missing   persons   and                                                                   
          unidentified human remains."                                                                                          
                                                                                                                                
          SB 247 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
9:15:11 AM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 170                                                                                                           
                                                                                                                                
     "An  Act requiring  that  health care  insurers  provide                                                                   
     insurance coverage for well-baby exams."                                                                                   
                                                                                                                                
SENATOR  LESIL  MCGUIRE  provided   an  overview  of  SB  170                                                                   
requiring private  insurers in the  State of Alaska  to offer                                                                   
insurance coverage  for well-baby exams. She  maintained that                                                                   
regular exams  and vaccination schedules are  critical to the                                                                   
long  term health  of a  child. She  indicated that  coverage                                                                   
exists  for many  adult exams  but not  always for  children.                                                                   
Senator  McGuire pointed  out  that the  American Academy  of                                                                   
Pediatrics has  been able to  access results of  these exams,                                                                   
such as, neglect,  malnutrition, parental lack  of knowledge,                                                                   
and also determine the child's  basic skills and development.                                                                   
She believed the philosophy behind  this bill is to show that                                                                   
Alaska cares about its youngest  and most vulnerable. Senator                                                                   
McGuire covered ideas from the sponsor statement:                                                                               
                                                                                                                                
     The first 24  months of a newborn's life  is perhaps the                                                                   
     most critical period in a  child's life. Routine medical                                                                   
     checkups during  this vulnerable stage are  necessary in                                                                   
     order  to monitor  and assess a  baby's normal,  healthy                                                                   
     development.  These checkups -  commonly referred  to as                                                                   
     "well-baby"  exams  - not  only provide  a  professional                                                                   
     medical   assessment   of   a   newborn's   health   and                                                                   
     development,  but they also  provide the opportunity  to                                                                   
     educate parents in proper child care.                                                                                      
                                                                                                                                
     SB 170  would require health  insurance carriers  in the                                                                   
     State of  Alaska to include  in their standard  coverage                                                                   
     for   dependents   "well-baby"   exams.   These   exams,                                                                   
     considered   a   part  of   routine   pediatric   health                                                                   
     supervision,  are  estimated to  cost  between $125  and                                                                   
     $250  per  visit.  The American  Academy  of  Pediatrics                                                                   
     recommends  a schedule  that  includes 10  exams in  the                                                                   
     first 24 months of a baby's  life. A typical "well-baby"                                                                   
     exam includes  monitoring development and  growth rates,                                                                   
     hearing,  vision,  language skills,  motor  development,                                                                   
     diet,    general   and    preventative   health    care,                                                                   
     immunizations, and infectious diseases.                                                                                    
                                                                                                                                
     There   is  evidence   to   suggest  that   preventative                                                                   
     healthcare  coupled  with   early  detection  of  health                                                                   
     related problems  not only improves health  outcomes but                                                                   
     is  also  cost-effective  over the  long  run.  Although                                                                   
     "well-baby"  exams  may  increase  short-term  costs  to                                                                   
     insurance providers,  they inevitably save  money in the                                                                   
     long  run. By  averting severe  and  more costly  health                                                                   
     problems, including serious  illness and emergency care,                                                                   
     "well-baby" exams make sense.                                                                                              
                                                                                                                                
9:20:56 AM                                                                                                                    
                                                                                                                                
TREVOR FULTON,  STAFF, SENATOR  LESIL MCGUIRE, provided  data                                                                   
supporting  the bill. He  observed that  a major question  of                                                                   
the  well-baby  exams is  who  pays  for them.  His  research                                                                   
indicated that  there is an increase  of .1 to .3  percent in                                                                   
insurance policies that contain  the well-baby coverage. That                                                                   
coverage would equal a thirty-seven  cent to eighty-four cent                                                                   
increase  per employee  per month. He  reported the  employer                                                                   
would  be  contributing  an additional  $1.40  to  $1.87  per                                                                   
member  per month. Mr.  Fulton stressed  that among  children                                                                   
with incomplete  well-child care there is an  increased risk,                                                                   
in first six months, of having an emergency room visit.                                                                         
                                                                                                                                
9:23:05 AM                                                                                                                    
                                                                                                                                
Senator McGuire offered to present  well-baby research to the                                                                   
Committee   members.  She   submitted  this   bill  for   the                                                                   
philosophical  belief  that Alaskan's  have  a commitment  to                                                                   
their  children. Senator  McGuire  acknowledged  that in  the                                                                   
last  committee   meeting  (Health,  Education,   and  Social                                                                   
Services Committee)  there were questions if  well-baby exams                                                                   
were really a  cost saving. She reported a  nationalized move                                                                   
among  employers  to  shift to  more  value  based  budgeting                                                                   
strategies  as  opposed  to  budget  based  allocations.  She                                                                   
referenced an information booklet  for employers to help them                                                                   
think  about what  to  include  in their  insurance  coverage                                                                   
(Investing  in  Maternal  and  Child  Health:  An  Employer's                                                                   
Toolkit,  National Business  Group on  Health, 2007,  copy on                                                                   
file). Senator  McGuire recognized that costs  are important,                                                                   
but  emphasized  that  regular health  exams  and  treatments                                                                   
would give  the children  of Alaska the  best shot at  a good                                                                   
life.                                                                                                                           
                                                                                                                                
9:25:00 AM                                                                                                                    
                                                                                                                                
Senator Dyson  agreed that  it was a  good idea to  get early                                                                   
intervention  to recognize  health or  abuse issues  in young                                                                   
children.  He  remarked  that  he  has  voted  for  insurance                                                                   
mandates before  but has been rethinking those  decisions. As                                                                   
the exploration continues to get  more insurance companies in                                                                   
Alaska  offering a wider  variety of  coverage, new  mandates                                                                   
can  cause  problems.  Alaska  is  a  small  market  and  the                                                                   
cost/benefit ratio for them is  marginal. He proposed that in                                                                   
an  insurance company's  evaluations  a major  factor is  how                                                                   
many mandates  are present that  limit the kinds  of packages                                                                   
they can  offer. Alaska's mandates,  in the middle  or higher                                                                   
range,  can  make   the  state  an  unattractive   place  for                                                                   
insurance  companies   to  cover.  Senator   Dyson  cautioned                                                                   
against spending  "other people's  money" to do  good things.                                                                   
He thought  it was a good  idea for taxpayers to  assume cost                                                                   
for indigent  care as opposed  to shifting it to  third party                                                                   
payers. He  believed well-baby exams  are good but  this bill                                                                   
does not  cover the indigent,  who do not have  insurance and                                                                   
would  ultimately force  it on  to  the insurance  companies.                                                                   
Senator  Dyson  stressed  that  if Alaskans,  as  a  culture,                                                                   
decide to take  care of everybody then the only  fair to make                                                                   
this part of our tax base for all citizens to contribute.                                                                       
                                                                                                                                
9:29:01 AM                                                                                                                    
                                                                                                                                
Senator  Dyson  acknowledged  the  bill  was  based  on  good                                                                   
intentions,  but judged  there can  be significant  potential                                                                   
for  unintended consequences  which do  not get  at the  core                                                                   
problem.                                                                                                                        
                                                                                                                                
9:29:16 AM                                                                                                                    
                                                                                                                                
Senator  Thomas  observed that  statistics  point  to a  cost                                                                   
savings for  these exams and  wondered why employers  did not                                                                   
look at the long range.                                                                                                         
                                                                                                                                
9:30:19 AM                                                                                                                    
                                                                                                                                
Senator  McGuire  indicated  that  there  is  movement  among                                                                   
businesses to  look at the  broader field. She  proposed that                                                                   
businesses  are   better  at   dealing  with  the   insurance                                                                   
companies  since most  individual subscribers  are seen  as a                                                                   
number, not a person. Employers  who know their employees and                                                                   
policy makers  are the  ones who  have to  make this  push to                                                                   
make  things   happen.  She   noted  that  prevention   saves                                                                   
individuals  and  contributes  to a  healthier  civilization.                                                                   
Senator McGuire agreed that the  smaller market in Alaska may                                                                   
not attract as many insurance  companies as desired, but this                                                                   
should not discourage well-intentioned  mandates. She pointed                                                                   
out that  mandated bills  often help  to interject  new ideas                                                                   
into the discussion.                                                                                                            
                                                                                                                                
9:32:27 AM                                                                                                                    
                                                                                                                                
Senator Huggins  wondered if  Denali KidCare performed  well-                                                                   
baby  exams.  Senator  McGuire responded  "yes."  Mr.  Fulton                                                                   
replied  he  would  follow-up  on  information  about  Denali                                                                   
KidCare provisions.                                                                                                             
                                                                                                                                
Senator  Huggins  asked the  bill  sponsors  if they  thought                                                                   
about   requesting  tax   breaks  or   incentives  to   small                                                                   
businesses that provide this coverage.                                                                                          
                                                                                                                                
9:33:43 AM                                                                                                                    
                                                                                                                                
Senator McGuire responded  that since there is  no state tax,                                                                   
tax breaks are  not possible. She indicated  that the federal                                                                   
government  has  improved  in  offering  some  incentives  to                                                                   
insurance companies.  She pointed  out that the  indigent are                                                                   
usually  covered   by  other   means  and  individuals   more                                                                   
financially secure  can afford  higher insurance  packages so                                                                   
this bill is aimed at the middle  income class who experience                                                                   
the most financial difficulty.                                                                                                  
                                                                                                                                
9:34:56 AM                                                                                                                    
                                                                                                                                
Senator  Huggins  commented  that   in  Alaska  there  was  a                                                                   
tendency to tax the "other person"  or shift the burden. This                                                                   
is a sensitive issue to many.                                                                                                   
                                                                                                                                
Senator  McGuire allowed  that both sides  have valid  points                                                                   
and she is willing to offer a  later repeal to this bill. She                                                                   
requested  that   the  insurance  companies  return   to  the                                                                   
committee  within  a  year's  time to  respond  to  the  cost                                                                   
differential;  if  it  has  been  a  significant  burden  for                                                                   
employers and  employees then she  would agree to  repeal the                                                                   
bill.  She maintained  her belief  that adding  the costs  of                                                                   
well-baby  exams  should not  significantly  raise  insurance                                                                   
rates or drive small businesses out of town.                                                                                    
                                                                                                                                
9:36:14 AM                                                                                                                    
                                                                                                                                
Senator Olson  remarked that lowering the state  business tax                                                                   
could provide  an incentive to insurance companies.  He asked                                                                   
how many other states have implemented  this type of program.                                                                   
                                                                                                                                
Senator   McGuire  replied   that   twenty-one  states   have                                                                   
implemented a well-baby program.                                                                                                
                                                                                                                                
Senator  Dyson  cautioned  against   being  captured  by  the                                                                   
argument  of "doing  something now  to save  more at a  later                                                                   
time." He  agreed this  can be  a valid  argument but  he has                                                                   
been not hearing  this from the companies involved.  He would                                                                   
like to  see a time  when employers  and employees  have many                                                                   
insurance choices, but is not  convinced that mandating rules                                                                   
is the way to go.                                                                                                               
                                                                                                                                
9:39:38AM                                                                                                                     
                                                                                                                                
LINDA HALL,  DIRECTOR, DIVISION  OF INSURANCE, remarked  that                                                                   
the Division  of Insurance  has not taken  a position  on the                                                                   
bill.                                                                                                                           
                                                                                                                                
Co-Chair Stedman  wondered if this bill applies  to the state                                                                   
employee insurance plan. Ms. Hall replied that it does not.                                                                     
                                                                                                                                
Co-Chair Stedman asked why not.  Ms. Hall stated the Division                                                                   
of Insurance has not supported  mandates as they usually only                                                                   
apply  to a  small segment  of the  population. She  remarked                                                                   
that  during   a  prior  hearing  outside   experts  analyzed                                                                   
Alaska's population.  They found that about  350,000 Alaskans                                                                   
were  covered by  some type  of private  insurance, but  only                                                                   
about  150,000   of  the  350,000  Alaskans   were  in  plans                                                                   
regulated  under  Title  21.  Mandates  do no  apply  to  any                                                                   
insurance  program governed  by  the federal  government  and                                                                   
state  plans  can  be  regulated  by  the  state  legislature                                                                   
imposing statutes if they choose.                                                                                               
                                                                                                                                
9:43:02 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman asked about the  potential impact on private                                                                   
insurance. Ms.  Hall researched health insurance  forms filed                                                                   
within the  Divisions of Insurance  and found that  there are                                                                   
few restrictions on well-baby  coverage in private insurance.                                                                   
She  illustrated that  a restriction  might  be an  employer,                                                                   
small or  large, who  chooses a  plan that,  may or  may not,                                                                   
cover  certain  things. She  proposed  that these  plans  are                                                                   
tailored to the  wishes or needs of that particular  group of                                                                   
employees with the employer having  the final option to cover                                                                   
or  not cover  certain things.  She added  that problems  can                                                                   
ensue when it is  not a broad enough coverage  for the larger                                                                   
group of people  to be insured. She gave an  example of "over                                                                   
50"  employees  not  necessarily  wanting  a  provision  like                                                                   
maternity coverage in their plan.                                                                                               
                                                                                                                                
9:44:47 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  referred  to   a  footnote  in  the  Legal                                                                   
Services  memo, stating  that  "most state  employees do  not                                                                   
receive  health  coverage  through the  state's  health  care                                                                   
plan.  Instead, they  receive coverage  through union  trusts                                                                   
plans"  and  asked  Ms.  Hall to  elaborate  on  this  (Legal                                                                   
Services,   Division   of  Legal   and   Research   Services,                                                                   
Legislative Affairs  Agency, State of  Alaska, p. 2,  copy on                                                                   
file). Ms. Hall  remarked that there are different  plans for                                                                   
different employees  depending on  the bargaining  unit; most                                                                   
of the  coverage is  done through  the collective  bargaining                                                                   
process.  The  state  plan  is a  select  benefit  plan  that                                                                   
applies  to legislators,  exempt  employees, the  supervisory                                                                   
unit, and retirees.                                                                                                             
                                                                                                                                
9:45:37 AM                                                                                                                    
                                                                                                                                
Senator Olson inquired if the  same segment of the population                                                                   
who might  not want maternity  leave coverage might  also not                                                                   
want the  well-baby exam  portion. Ms.  Hall responded  that,                                                                   
when looking for insurance coverage,  it is optimal to have a                                                                   
pool of "healthy"  and "unhealthy" people paying  premiums so                                                                   
any  major  health issue,  like  a  major surgery,  would  be                                                                   
spread over  a larger group.  In the individual  market, when                                                                   
coverage is mandated,  people can then elect to  not have the                                                                   
coverage.                                                                                                                       
                                                                                                                                
9:46:45 AM                                                                                                                    
                                                                                                                                
Senator Dyson requested further  elaboration on the impact of                                                                   
mandates  to the  attractiveness of  Alaska as  a market  for                                                                   
insurance  companies.  Ms.  Hall   responded  that  the  more                                                                   
difficult Alaska  makes doing business here,  fewer insurance                                                                   
companies will  be attracted.   The market place  is balanced                                                                   
at the moment to attract companies.  She maintained that more                                                                   
mandates will  affect the flexibility  to tailor  programs in                                                                   
the employer markets. She added  that, although it is hard to                                                                   
put  a  cost value  on  mandates,  insurance  companies  have                                                                   
responded  with  figures  of  one  to  five  percent  of  the                                                                   
premium.  Ms.  Hall regarded  mandates  as  not  particularly                                                                   
expensive but  with the continued  addition of  new mandates,                                                                   
insurance  costs  are  increased   for  a  small  group.  She                                                                   
indicated that  research shows  that as premiums  continue to                                                                   
rise, fewer people will purchase the insurance.                                                                                 
                                                                                                                                
9:49:36 AM                                                                                                                    
                                                                                                                                
STEPHANIE BIRCH,  SECTION CHIEF  FOR WOMAN'S, CHILDREN'S  AND                                                                   
FAMILY  HEALTH,  DIVISION  OF PUBLIC  HEALTH,  testified  via                                                                   
teleconference  and provided  information  and statistics  in                                                                   
support  of this bill.  She observed  that most  self-insured                                                                   
major private  employers  in Alaska, such  as, Carr  Safeway,                                                                   
and  health care  institutions,  such as,  Providence  Alaska                                                                   
Medical Center and Alaska Regional  Medical Center, provide a                                                                   
complete  array  of  child health  care  visits  through  age                                                                   
twenty-one. (copy on file in Senator McGuire's office).                                                                         
                                                                                                                                
9:54:50 AM                                                                                                                    
                                                                                                                                
SUSAN JOHNSON,  DIRECTOR, COMPENSATION,  BENEFITS,  AND HUMAN                                                                   
RESOURCES   INFORMATION   SYSTEMS,  PROVIDENCE   HEALTH   AND                                                                   
SERVICES  ALASKA, testified  via  teleconference and  offered                                                                   
that  Providence's self-funded  plan  provides the  well-baby                                                                   
coverage   as  recommended   by  the   American  Academy   of                                                                   
Pediatrics. Ms.  Johnson reported that about  seventy percent                                                                   
of  claims  submitted  are  from   twenty  percent  of  those                                                                   
covered. The  twenty percent  usually marks the  unhealthiest                                                                   
portion of the  group. She believes it is in  everyone's best                                                                   
interest to  keep a  healthy population  healthy in  order to                                                                   
keep health care  costs down and to provide  a better quality                                                                   
of  life. During  early  routine exams,  potentially  serious                                                                   
illnesses  can be detected,  treated,  and managed to  reduce                                                                   
costs in  future emergency room  visits for the  employer and                                                                   
the family involved.                                                                                                            
                                                                                                                                
9:57:06 AM                                                                                                                    
                                                                                                                                
DR.  JODY  BUTTO, PEDIATRITION,  PRESIDENT  OF  THE  AMERICAN                                                                   
ACADEMY OF  PEDIATRICS, ALASKA CHAPTER, ANCHORAGE,  testified                                                                   
via  teleconference  in  support  of  SB 170,  on  behalf  of                                                                   
herself and  the Alaska  Chapter of  the American Academy  of                                                                   
Pediatrics.  She reminded  the  Committee  that studies  have                                                                   
shown  this to be  cost effective  care and  stressed that  a                                                                   
"well" population  only uses a small amount  of the resources                                                                   
available.                                                                                                                      
                                                                                                                                
9:58:54 AM                                                                                                                    
                                                                                                                                
DENNIS  DEWITT,   STATE  DIRECTOR,  NATIONAL   FEDERATION  OF                                                                   
INDEPENDENT BUSINESSES  opposed SB  170. He asserted  that it                                                                   
is not an  issue about the  value of well-baby visits;  it is                                                                   
an issue  of who  pays. He  pointed out  that employers  have                                                                   
limited funds  for employee compensation  and this  should be                                                                   
left  to the  employer  to decide  how  that compensation  is                                                                   
decided. Each mandate  added by an external  force limits the                                                                   
choices that employers  and employees have for  providing and                                                                   
obtaining  insurance. The  issue  of this  bill  is if  there                                                                   
should be mandates  for how those benefits are  decided. This                                                                   
bill  covers a  very small  portion  of Alaska's  population.                                                                   
State employees are  not covered under this  bill, along with                                                                   
the big  box stores.  Mr. DeWitt commented  that the  big box                                                                   
stores   are  often   in   direct  competition   with   small                                                                   
independent businesses.  He maintained  that this  bill would                                                                   
force  a very small  group of  employers to  fund a  decision                                                                   
made by  the legislature for  coverage that employees  may or                                                                   
may not  want. He estimated a  one to three  percent increase                                                                   
in the cost of insurance and often  new smaller employers are                                                                   
opting not  to offer  any health  insurance coverage  at all,                                                                   
because of the cost.                                                                                                            
                                                                                                                                
10:01:57 AM                                                                                                                   
                                                                                                                                
Senator Olson requested  the dollar amount to be  paid by the                                                                   
employer  or the  employee  when  looking at  the  percentage                                                                   
increase.  Mr.  DeWitt replied  that  he  did not  have  that                                                                   
number  but  believed  the  numbers would  be  close  to  the                                                                   
sponsor's numbers.                                                                                                              
                                                                                                                                
Senator  Thomas   understood   Mr.  DeWitt's  concern   about                                                                   
mandates  but  wondered  if  he   had  ever  negotiated  with                                                                   
insurance  companies on  behalf  of small  businesses to  not                                                                   
raise rates  every time there  was a new mandate,  especially                                                                   
if  statistics showed  there were  cost savings  in the  long                                                                   
run.                                                                                                                            
                                                                                                                                
10:03:21 AM                                                                                                                   
                                                                                                                                
Mr. DeWitt responded that the  Alaska Chapter of the National                                                                   
Federation of  Independent Businesses has not  been active in                                                                   
doing this, although  it has occurred on the  national level.                                                                   
He reminded  the committee that  his membership is  small. He                                                                   
believed a  better avenue  for negotiation  would be  for the                                                                   
State Of Alaska,  who represents a larger group  and has more                                                                   
power, to get involved.                                                                                                         
                                                                                                                                
10:05:16 AM                                                                                                                   
                                                                                                                                
Senator Elton  observed that it  is easy to identify  cost to                                                                   
an  insurance  plan  with  mandates  but  more  difficult  to                                                                   
identify the benefits  that can accrue with  having a healthy                                                                   
family.  He wondered  if there  had been a  debate among  his                                                                   
membership about  making employers recognizes  the importance                                                                   
of having a healthy workforce.                                                                                                  
                                                                                                                                
10:06:31 AM                                                                                                                   
                                                                                                                                
Mr.  DeWitt   agreed  that   small  business  employers   are                                                                   
interested in having healthy employees  since the loss due to                                                                   
sickness  can  have a  greater  impact. In  making  insurance                                                                   
decisions, there are many factors,  such as, employee health,                                                                   
age, money, and  small children. They are not  suggesting the                                                                   
well-baby  mandate is  not  a valid  program  only that  such                                                                   
decisions should be made by the  employers and employees, not                                                                   
a legislative mandate.                                                                                                          
                                                                                                                                
10:08:48 AM                                                                                                                   
                                                                                                                                
Senator McGuire  encouraged members  to understand  that when                                                                   
earlier mandates  have passed,  insurance companies  have not                                                                   
astronomically  raised their  rates  or left  the state.  She                                                                   
reminded them that  she was open to having  the bill repealed                                                                   
if it did not prove cost efficient and successful.                                                                              
                                                                                                                                
10:11:03 AM                                                                                                                   
                                                                                                                                
SB  170  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:11:20 AM                                                                                                                   
                                                                                                                                
SENATE BILL NO. 226                                                                                                           
                                                                                                                                
     "An Act  relating to litigation  brought by  a vexatious                                                                   
     litigant; amending Rules  3, 4, 12, and 41, Alaska Rules                                                                   
     of  Civil  Procedure;  and providing  for  an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Senator Hollis French read his sponsor statement:                                                                               
                                                                                                                                
          SB 226 creates a process in statute for courts to                                                                     
     manage the  problem of  lawsuits brought by  individuals                                                                   
     who are "vexatious litigants."                                                                                             
                                                                                                                                
          A vexatious litigant is defined as a person who,                                                                      
     among  other  things,  repeatedly   litigates  the  same                                                                   
     claims or  previous adverse  decisions against  the same                                                                   
     parties, files  multiple frivolous lawsuits,  repeatedly                                                                   
     files pleadings or motions  that are frivolous or in bad                                                                   
     faith,  or  repeatedly  engages   in  tactics  that  are                                                                   
     without merit or intended to cause unnecessary delay.                                                                      
                                                                                                                                
          The bill allows the court to impose reasonable                                                                        
     restrictions  on  vexatious  litigants'  access  to  the                                                                   
     court.  Under SB  226 a  court  can require  conditions,                                                                   
     such as the posting of security  or pre-filing review of                                                                   
     a  complaint  by a  presiding  judge, before  an  action                                                                   
     filed  by  a vexatious  litigant  can  proceed.  Several                                                                   
     states have  passed similar  legislation to  control the                                                                   
     problem of vexatious litigation.  The provisions in this                                                                   
     bill are based on California's  Code of Civil Procedure.                                                                   
                                                                                                                                
          Vexatious litigation needlessly burdens the                                                                           
     resources of  the court system, and  creates unnecessary                                                                   
     expense  for  individuals who  are  the  target of  this                                                                   
     litigation  in the  public  and private  sectors. It  is                                                                   
     certainly  important   to  recognize  and   protect  the                                                                   
     individual's  right  to  litigate  claims in  our  court                                                                   
     system.  SB 226 will  only affect  those few cases  that                                                                   
     are clearly without merit.  This bill will provide means                                                                   
     for screening  out extreme  examples of meritless  cases                                                                   
     before they  are filed. Please join me  in supporting SB
     226.                                                                                                                       
                                                                                                                                
10:15:13 AM                                                                                                                   
                                                                                                                                
Senator Elton inquired  about costs to the court  system when                                                                   
making a decision if a litigant  is vexatious or not. Senator                                                                   
French expressed  his belief that the costs  would be minimal                                                                   
since the cost  of deflecting the lawsuit would  be less than                                                                   
processing  the lawsuit.  Senator Elton  questioned if  there                                                                   
was any discussion on imposing a time limit.                                                                                    
                                                                                                                                
Senator  French  pointed out  that  on  page 3,  line  12-16,                                                                   
identifies  a  "vexatious  litigant,   a  person  who  reacts                                                                   
without a lawyer, who:                                                                                                          
                                                                                                                                
     (A)  commenced,   prosecuted,  or   maintained  as   the                                                                   
     plaintiff at least five litigations  in state or federal                                                                   
     court,  other  than  small claims  actions,  during  the                                                                   
     preceding seven years                                                                                                      
                                                                                                                                
10:17:51 AM                                                                                                                   
                                                                                                                                
Senator  Huggins  asked what  would  happen  if the  sentence                                                                   
about  "not" having  an attorney  was removed  from the  bill                                                                   
(page 3, line 12-13).                                                                                                           
                                                                                                                                
Senator French  answered that he  did not believe  this would                                                                   
affect  the  bill   or  any  lawyer,  but  deferred   to  the                                                                   
Department  of  Law  or  the   court  system.  Senator  Elton                                                                   
wondered if someone suing multiple  individuals over the same                                                                   
case could be classified as a vexatious litigant.                                                                               
                                                                                                                                
10:19:23 AM                                                                                                                   
                                                                                                                                
Senator  French deferred  the question  to the Department  of                                                                   
Law.                                                                                                                            
                                                                                                                                
10:19:34 AM                                                                                                                   
                                                                                                                                
SUSAN  COX, ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT OF  LAW,                                                                   
JUNEAU,  responded to  previous  questions  by the  committee                                                                   
members. She  answered the  question regarding an  individual                                                                   
filing lawsuits over a period  of time, refraining for a time                                                                   
period,  then   resuming  again.  She  indicated   that  this                                                                   
legislation was  modeled after  the California Code  of Civil                                                                   
Procedure,  enacted 40 years  ago, where  there is  a process                                                                   
for having  a pre-filing orders  vacated. Ms.  Cox reiterated                                                                   
that this  legislation does  not bar  anyone's access  to the                                                                   
courts,   only   places  some   restrictions   precedent   to                                                                   
litigating for vexatious litigants.                                                                                             
                                                                                                                                
10:23:08 AM                                                                                                                   
                                                                                                                                
Senator Elton  wondered about  a person becoming  a vexatious                                                                   
litigant, not over filing too  many cases in the exacted time                                                                   
period, but  filing multiple  suits against different  people                                                                   
over the  same issue, such  as a neighborhood  situation. Ms.                                                                   
Cox  responded  again  that  the   definition  requires  five                                                                   
different law suits over a seven  year period and all decided                                                                   
adversely against the filer.                                                                                                    
                                                                                                                                
10:25:59 AM                                                                                                                   
                                                                                                                                
Senator  Thomas  inquired  about  how many  people  would  be                                                                   
considered vexatious  litigants if this bill  were law today.                                                                   
Ms.  Cox  replied  that  about  six  people  fall  into  this                                                                   
definition  and   another  six  against  the   Department  of                                                                   
Corrections.  In  total, less  than  twenty  people would  be                                                                   
considered vexatious litigants.                                                                                                 
                                                                                                                                
10:27:28 AM                                                                                                                   
                                                                                                                                
Senator Huggins wondered if the  sentence regarding attorneys                                                                   
on page 3, line  12-13, was struck from the  bill, what would                                                                   
be the effect.   Ms. Cox remarked that the  intention of bill                                                                   
is directed  toward those  people who  have abused  the court                                                                   
system without  the representation  of a lawyer.  Lawyers are                                                                   
controlled  by  contempt  of  court  or  ethics  regulations.                                                                   
Senator Huggins  suggested it  would not  hurt if taken  out.                                                                   
Ms. Cox was  not sure if it  would add or take  anything away                                                                   
from the bill.                                                                                                                  
                                                                                                                                
10:28:58 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman inquired how  the five and seven year number                                                                   
was arrived at. Ms. Cox responded  that it was simply modeled                                                                   
on the California plan that has  been in place for over forty                                                                   
years.                                                                                                                          
                                                                                                                                
Senator Elton followed up on Senator  Huggins' question about                                                                   
removing  the "attorney"  language  and asked  if this  would                                                                   
become a  problem for  attorneys. Ms.  Cox believed  it would                                                                   
only penalize the  plaintiff but there was some  confusion in                                                                   
the language  that could  affect a  lawyer who represented  a                                                                   
vexatious litigant.                                                                                                             
                                                                                                                                
10:30:50 AM                                                                                                                   
                                                                                                                                
DOUG WOOLIVER, ADMINISTRATIVE  ATTORNEY, ALASKA COURT SYSTEM,                                                                   
responded to Senator Elton's question  about fiscal impact to                                                                   
the court system.  He does not see any impact  but noted that                                                                   
this bill  will certainly be  challenged before the  court by                                                                   
the same people it is intended to target.                                                                                       
                                                                                                                                
Senator  Elton wondered  if Mr.  Wooliver saw  a negative  or                                                                   
positive  fiscal impact.  Mr. Wooliver  responded that  there                                                                   
could be  some time and  effort saved  by the court  but this                                                                   
bill really  targets just a  handful of individuals  and will                                                                   
not be used that often.                                                                                                         
                                                                                                                                
10:32:29 AM                                                                                                                   
                                                                                                                                
PETER    MAASEN,    LAWYER,    ANCHORAGE,    testified    via                                                                   
teleconference in  support of SB 226. He believed  this added                                                                   
a  necessary  tool  for trial  judges.  Although  he  opposes                                                                   
anyone not having access to the  court system, he agreed that                                                                   
sometimes situations can go too  far.  Mr. Maasen presented a                                                                   
personal trial case situation  where a client repeatedly sued                                                                   
him and the trial judge when things  did not go his way. This                                                                   
has been  a costly  situation  to him personally  and to  the                                                                   
courts.                                                                                                                         
                                                                                                                                
10:37:00 AM                                                                                                                   
                                                                                                                                
Mr.  Maasen  continued explaining  the  difficulties  dealing                                                                   
with  individuals who  continue  to tie  up  court time  with                                                                   
multiple litigations. He supported  this bill and believes it                                                                   
will be effective in dealing with such cases.                                                                                   
                                                                                                                                
10:37:40 AM                                                                                                                   
                                                                                                                                
Senator French  elaborated that  the bill specifically  notes                                                                   
that this  only deals with  those individuals  who repeatedly                                                                   
file court  cases after  they have lost  a judgment  from the                                                                   
court.  In  all  cases,  the  judge  has  the  discretion  of                                                                   
deciding if someone is indeed a vexatious litigant.                                                                             
                                                                                                                                
10:39:21 AM                                                                                                                   
                                                                                                                                
SB  226  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:39:27 AM                                                                                                                   
                                                                                                                                
SENATE BILL NO. 247                                                                                                           
                                                                                                                                
     "An  Act relating  to missing  persons and  unidentified                                                                   
     human remains."                                                                                                            
                                                                                                                                
DARWIN PETERSON,  STAFF, SENATOR STEDMAN introduced  the bill                                                                   
that  he helped  to  draft when  he was  a  staff member  for                                                                   
Senator Green.  He read  a section  of the sponsor  statement                                                                   
that says:                                                                                                                      
                                                                                                                                
     Specifically, SB 247:                                                                                                      
                                                                                                                                
     Prohibits  the disposal  of  unidentified human  remains                                                                   
     unless DNA samples are archived.                                                                                           
                                                                                                                                
     Prohibits  a law  enforcement  agency  from refusing  to                                                                   
     accept a missing persons report.                                                                                           
                                                                                                                                
     Provides a  detailed list of specific information  to be                                                                   
     gathered  and  recorded   by  law  enforcement  about  a                                                                   
     missing person.                                                                                                            
                                                                                                                                
     Allows law  enforcement to obtain a DNA  sample from the                                                                   
     family  of a  missing person  who has  been missing  for                                                                   
     more than  30 days and forward  that DNS to  an approved                                                                   
     facility  for  analysis  and  dissemination  to  missing                                                                   
     persons databases.                                                                                                         
                                                                                                                                
     Requires all  missing person reports to  be entered into                                                                   
     a  National  Crime  Information  center  (NCIC)  Missing                                                                   
     Person  File,  the  Unidentified person  File,  and  the                                                                   
     state crime information system.                                                                                            
                                                                                                                                
     Provides  a mechanism for  law enforcement  to determine                                                                   
     if a  missing person  is deemed "high  risk" and  if so,                                                                   
     take immediate action.                                                                                                     
                                                                                                                                
     Improves procedures for handling human remains and                                                                         
     communicating with the family of a missing person.                                                                         
                                                                                                                                
He expounded  that if  there was  an increase in  cooperation                                                                   
among law  enforcement agencies  to locate and  safely return                                                                   
missing persons then this is a worthwhile effort.                                                                               
                                                                                                                                
10:42:32 AM                                                                                                                   
                                                                                                                                
Senator Elton  questioned if this  falls under  the "refusing                                                                   
to accept" provision of a missing  persons report. In reading                                                                   
page 2,  Section 3, line 6,  "Each law enforcement  agency in                                                                   
the state with  reason to believe a missing person  is in the                                                                   
jurisdiction served by the agency  shall accept a report of a                                                                   
missing.." Senator  Elton assumed that  a family member  of a                                                                   
missing person  who happens  to live in  New York  City could                                                                   
call a law enforcement person  in the State of Alaska if they                                                                   
believed that person was heading to Alaska.                                                                                     
                                                                                                                                
10:43:58 AM                                                                                                                   
                                                                                                                                
Mr. Peterson  responded  that Senator  Elton was accurate.  A                                                                   
person does  not have to  be an Alaska  resident to  call law                                                                   
enforcement for this kind of help.                                                                                              
                                                                                                                                
Senator Elton  wondered if a  high risk missing  person, like                                                                   
an Alzheimer's  patient,  wandered from  nursing home,  would                                                                   
this prompt  the same  law enforcement procedures  regardless                                                                   
of how long the person had been  missing. Mr. Peterson agreed                                                                   
that law enforcement would have  to initiate a missing person                                                                   
investigation.                                                                                                                  
                                                                                                                                
10:45:31 AM                                                                                                                   
                                                                                                                                
Senator Elton  remarked that earlier  in the bill  it states,                                                                   
"regardless of  the period of  time a person is  missing" and                                                                   
wondered if  this could spike  a significant effort  and work                                                                   
load  to the  law  enforcement  community. He  questioned  if                                                                   
there  was  anything in  the  bill  that would  preclude  law                                                                   
enforcement from  having to act.  Mr. Peterson  believed that                                                                   
the  reading  of the  legislation  allows  anyone to  file  a                                                                   
missing  persons   report  even  if  other   law  enforcement                                                                   
agencies are actively looking for that person.                                                                                  
                                                                                                                                
10:47:23 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  referenced  the three  fiscal  notes.  Mr.                                                                   
Peterson  commented   on  the  fiscal  note's   requests  and                                                                   
believed, since the work load  would increase, there would be                                                                   
a need for an  extra law enforcement individual.  In the last                                                                   
section  of  the bill,  it  was  inserted  that there  be  no                                                                   
retroactivity  in  the  bill. Mr.  Peterson  confirmed  there                                                                   
would not  be any additional work  going back to  "cold case"                                                                   
missing persons.  Fiscal notes could go down  or disappear if                                                                   
Department  of Public  Safety concern  about the  "mandatory"                                                                   
language was changed to "permissive."                                                                                           
                                                                                                                                
10:49:59 AM                                                                                                                   
                                                                                                                                
MARY  WEIR, MATSU,  MOTHER, testified  via teleconference  in                                                                   
support of  SB 247. Her daughter  disappeared in 2005  and it                                                                   
was   nineteen  months   before  her   daughter's  body   was                                                                   
identified.  She contended  that  if this  bill  had been  in                                                                   
place, the  action to  find her  missing daughter would  have                                                                   
been  immediate. She  insisted  that it  is really  important                                                                   
legislation  with many systems  already in  place to  act and                                                                   
noted  that  there   is  also  federal  funding   and  grants                                                                   
available.                                                                                                                      
                                                                                                                                
10:52:23 AM                                                                                                                   
                                                                                                                                
SB  247  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:52 AM                                                                                           
                                                                                                                                

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