Legislature(2005 - 2006)BELTZ 211

02/23/2006 01:30 PM Senate LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 298 TRUSTS: CHALLENGES; CLAIMS; LIABILITIES TELECONFERENCED
Moved SB 298 Out of Committee
Bills Previously Heard/Scheduled
Including but Not Limited to:
+= SB 289 INSURANCE TELECONFERENCED
Moved CSSB 289(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 23, 2006                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Con Bunde, Chair                                                                                                        
Senator Ralph Seekins, Vice Chair                                                                                               
Senator Ben Stevens                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Johnny Ellis                                                                                                            
Senator Bettye Davis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 289                                                                                                             
"An Act relating to the  payment of insurer examination expenses,                                                               
to the regulation  of managed care insurance  plans, to actuarial                                                               
opinions  and   supporting  documentation  for  an   insurer,  to                                                               
insurance  firms,   managing  general  agents,   and  third-party                                                               
administrators,  to eligibility  of  surplus  lines insurers,  to                                                               
suitability  of life  and health  insurance policies  and annuity                                                               
contracts,  to unfair  discrimination  under  a health  insurance                                                               
policy, to  prompt payment  of health  care insurance  claims, to                                                               
required notice by an insurer,  to individual deferred annuities,                                                               
to direct payment  to providers under a  health insurance policy,                                                               
to mental health benefits under  a health care insurance plan, to                                                               
the  definitions of  'title insurance  limited  producer' and  of                                                               
other  terms used  in the  title regulating  the practice  of the                                                               
business of  insurance, and to  small employer  health insurance;                                                               
repealing  the  Small  Employer Health  Reinsurance  Association;                                                               
making  conforming amendments;  and  providing  for an  effective                                                               
date."                                                                                                                          
     MOVED CSSB 289(L&C) OUT OF COMMITTEE                                                                                       
                                                                                                                                
SENATE BILL NO. 298                                                                                                             
"An  Act relating  to loans  from trust  property; relating  to a                                                               
trustee's power  to appoint the  principal of a trust  to another                                                               
trust;   relating  to   challenges   to,   claims  against,   and                                                               
liabilities of  trustees, beneficiaries, and creditors  of trusts                                                               
and  of trusts  and  estates; relating  to individual  retirement                                                               
accounts and  plans; relating  to certain  trusts in  divorce and                                                               
dissolutions  of  marriage  situations;   and  providing  for  an                                                               
effective date."                                                                                                                
     MOVED SB 298 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 289                                                                                                                  
SHORT TITLE: INSURANCE                                                                                                          
SPONSOR(s): LABOR & COMMERCE BY REQUEST                                                                                         
                                                                                                                                
02/13/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/06       (S)       L&C, FIN                                                                                               
02/16/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
02/16/06       (S)       Heard & Held                                                                                           
02/16/06       (S)       MINUTE(L&C)                                                                                            
02/23/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: SB 298                                                                                                                  
SHORT TITLE: TRUSTS: CHALLENGES; CLAIMS; LIABILITIES                                                                            
SPONSOR(s): SENATOR(s) SEEKINS                                                                                                  
                                                                                                                                
02/14/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/14/06       (S)       L&C, JUD                                                                                               
02/23/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
LINDA HALL, Director                                                                                                            
Division of Insurance                                                                                                           
Department of Commerce, Community & Economic Development                                                                        
PO Box 110800                                                                                                                   
Juneau, AK 99811-0800                                                                                                           
POSITION STATEMENT:  Commented on SB 289.                                                                                     
                                                                                                                                
KATIE CAMPBELL                                                                                                                  
Life and Health Actuary                                                                                                         
Department of Commerce, Community & Economic Development                                                                        
PO Box 110800                                                                                                                   
Juneau, AK 99811-0800                                                                                                           
POSITION STATEMENT: Commented on SB 289.                                                                                      
                                                                                                                                
DOUGLAS BLATTMACHR, President                                                                                                   
Alaska Trust Company                                                                                                            
Anchorage AK                                                                                                                    
POSITION STATEMENT:  Supported SB 289.                                                                                        
                                                                                                                                
RICHARD THWAITES, Chairman                                                                                                      
Alaska Trust Company                                                                                                            
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
                                                                                                                                
BETH CHAPMAN, Atty.                                                                                                             
Faulkner Banfield                                                                                                               
Juneau AK                                                                                                                       
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
STEVEN GREER, Atty.                                                                                                             
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
JONATHAN BLATTMACHR, Atty.                                                                                                      
New York NY                                                                                                                     
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
DAVID SHAFTEL, Atty.                                                                                                            
Juneau AK                                                                                                                       
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
RICH HOMPESCH                                                                                                                   
Hompesch and Evans                                                                                                              
Fairbanks AK                                                                                                                    
POSITION STATEMENT: Supported SB 298.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR CON BUNDE called the Senate Labor and Commerce Standing                                                                 
Committee meeting to order at 1:32:29 PM. Present were Senators                                                               
Ben Stevens, Ralph Seekins and Chair Con Bunde.                                                                                 
                                                                                                                                
                        SB 289-INSURANCE                                                                                    
                                                                                                                                
CHAIR CON BUNDE announced SB 289 to be up for consideration.                                                                    
                                                                                                                                
SENATOR BEN STEVENS moved to adopt Amendment 1 for discussion                                                                   
purposes. There were no objections and it was so ordered.                                                                       
                                                                                                                                
                          Amendment 1                                                                                       
                                                                                                                                
                             Offered by The Division of Insurance                                                               
TO: SB 289                                                                                                                      
                                                                                                                                
Pages 12 - 13                                                                                                                   
AS 21.07.080 is amended to read:                                                                                                
     *Sec. 15.a 21.07.080 IS AMENDED TO READ:                                                                                   
     Sec. 21.07.080. Religious non-medical providers. This                                                                      
chapter may not be construed to                                                                                                 
   (1) restrict or limit the right of a managed care entity to                                                                  
        include [HEALTH  CARE] services  provided by  a religious                                                               
        non-medical provider  as medical  [HEALTH] care  services                                                           
        covered by the managed care plan;                                                                                       
   (2) require a managed care entity, when determining coverage                                                                 
        for [HEALTH CARE] services  provided by a  religious non-                                                               
        medical provider, to                                                                                                    
        (A) apply medically based eligibility standards;                                                                        
        (B)  use health care providers  to determine access  by a                                                               
             covered person;                                                                                                    
        (C)  use health care providers in making a decision on an                                                               
             internal of external appeal; or                                                                                    
        (D)  require a covered person to be  examined by a health                                                               
             care provider as a condition of coverage; or                                                                       
                                                                                                                                
   (3) require a managed care plan to exclude coverage for                                                                      
        [HEALTH CARE]  services  provided  by  a  religious  non-                                                               
        medical  provider   because  the   religious  non-medical                                                               
        provider is not providing medical or  other data required                                                               
        from a health care provider if the  medical or other data                                                               
        is inconsistent with the  religious non-medical treatment                                                               
        or nursing care being provided.                                                                                         
                                                                                                                                
AS 21.07.250 is amended by adding a new paragraph to read:                                                                      
                                                                                                                                
     (18) "medical care" has the meaning given in AS                                                                            
21.90.900(30)                                                                                                                   
                                                                                                                                
AS 21.07.250(15) is amended to read:                                                                                            
     (15) "religious non-medical provider" means a person who                                                                   
[DOES NOT PROVIDE MEDICAL CARE,  BUT WHO] provides only religious                                                               
non-medical treatment or nursing care for an illness or injury;                                                                 
                                                                                                                                
LINDA  HALL,  Director,  Division  of  Insurance,  Department  of                                                               
Commerce,  Community &  Economic Development  (DCCED), said  that                                                               
Ms. Campbell,  DCCED Life and  Health Actuary, would  explain the                                                               
amendment.                                                                                                                      
                                                                                                                                
KATIE CAMPBELL,  Life and Health Actuary,  Division of Insurance,                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED), explained  that an issue  was raised about  changing the                                                               
term "health care services" to  "medical care services" and using                                                               
the term  "medical care" with  a religious  non-medical provider.                                                               
It was  really a  terminology issue.   She came  up with  an easy                                                               
solution  that  removed  the  offending   term  "medical"  in  AS                                                               
21.07.080  and  added  the  definition of  medical  care  to  the                                                               
definitions in  AS 21.07  (because that's the  term that  is used                                                               
throughout that  chapter). She also  clarified the  definition of                                                               
religious  non-medical provider  and  removed  the term  "medical                                                               
care" as well.                                                                                                                  
                                                                                                                                
CHAIR BUNDE asked  if it basically prevented the use  of a double                                                               
negative - "non-medical medical care".                                                                                          
                                                                                                                                
MS. CAMPBELL replied, "Exactly."                                                                                                
                                                                                                                                
1:36:44 PM recessed 2:00:01 PM                                                                                              
                                                                                                                                
CHAIR BUNDE  announced there  were no  objections to  Amendment 1                                                               
and it was adopted.                                                                                                             
                                                                                                                                
SENATOR SEEKINS moved  to pass CSSB 289(L&C)  from committee with                                                               
individual  recommendations and  attached  fiscal notes.  Senator                                                               
Seekins, Ben  Stevens and Chair  Bunde voted  yea; and it  was so                                                               
ordered.                                                                                                                        
2:01:43 PM recess 2:02:42 PM                                                                                                
                                                                                                                                
         SB 298-TRUSTS: CHALLENGES; CLAIMS; LIABILITIES                                                                     
                                                                                                                              
2:03:21 PM                                                                                                                    
CHAIR CON BUNDE announced SB 298 to be up for consideration.                                                                    
                                                                                                                                
SENATOR RALPH  SEEKINS, sponsor of  SB 298, said that  it revises                                                               
Titles  13  and 34  pertaining  to  the administration  of  trust                                                               
assets. The  updates include the clarifying  language relating to                                                               
the various powers conferred upon  the trustee, trustee reporting                                                               
requirements  and claims  made against  trust assets.  Updates to                                                               
language  in Title  34 pertain  to   the exemption  from transfer                                                               
provisions for  certain IRA  trust assets,  technical corrections                                                               
made  to AS  32.40.110(b) and  the  handling of  trust assets  in                                                               
cases of divorce or dissolution.                                                                                                
                                                                                                                                
He explained  that since 1997,  the Alaska State  Legislature has                                                               
consistently worked to update and  improve the laws regarding the                                                               
use  and  administration  of  trusts.  As  a  result,  Alaska  is                                                               
considered  one  of  the  premier   trust  jurisdictions  in  the                                                               
country.  At least  seven other  states have  enacted legislation                                                               
similar  to  Alaska's.  The  proposed  updates  are  intended  to                                                               
preserve Alaska's leading position  within the universes of trust                                                               
products  and services  offered nationwide.  Alaska's trust  laws                                                               
encourage citizens to keep their  assets in the state and attract                                                               
capital  from all  over the  country. SB  298 clarifies  previous                                                               
trust legislation,  makes the administration of  trusts in Alaska                                                               
more efficient  and cost  effective. It will  keep Alaska  as the                                                               
jurisdiction of choice for trust administration.                                                                                
                                                                                                                                
DOUGLAS  BLATTMACHR, President,  Alaska Trust  Company, supported                                                               
Senator Seekins comments and SB 298.                                                                                            
                                                                                                                                
2:07:24 PM                                                                                                                    
MR. RICHARD  THWAITES, Chairman, Alaska Trust  Company, said that                                                               
most of  his clients don't use  the services of the  Alaska Trust                                                               
Company, but  the estate  planning services  he does  provide are                                                               
now  more easily  attainable and  beneficial to  them because  of                                                               
Alaska's trust law.                                                                                                             
                                                                                                                                
BETH CHAPMAN, Atty.,  Faulkner and Banfield, said  she also works                                                               
with individual Alaskans in planning  their estates and this bill                                                               
continues  to improve  the  state's law,  which  assists them  in                                                               
meeting their  estate planning goals, particularly  in responding                                                               
to changed  circumstances in  their family.  SB 298  continues to                                                               
improve Alaska  trust laws. She  was not aware of  any opposition                                                               
to SB 298.                                                                                                                      
                                                                                                                                
STEVEN GREER, private practitioner in  Anchorage, said he was not                                                               
connected  with  the  Alaska  Trust  Company,  but  that  SB  298                                                               
improved Alaska's trust laws and he supported its passage.                                                                      
                                                                                                                                
2:09:58 PM                                                                                                                    
JONATHAN BLATTMACHR,  Atty., said  he practices primarily  in New                                                               
York City, but has a license  in Alaska. He said that seven other                                                               
states  have tried  to  do "copycat"  legislation  of the  Alaska                                                               
trust provisions.  He supported SB  298 saying it  would continue                                                               
to draw business to Alaska before people turn to other states.                                                                  
                                                                                                                                
DAVID SHAFTEL, Atty.,  said he is a member of  the informal group                                                               
of  estate  and  trust  attorneys who  practice  in  Alaska.  His                                                               
clients have  benefited from Alaska's  superior estate  and trust                                                               
laws.  He participated  in drafting  some of  the provisions  and                                                               
urged passage of SB 298.                                                                                                        
                                                                                                                                
2:12:34 PM                                                                                                                    
RICH HOMPESCH, Hompesch and  Evans, Fairbanks, supported previous                                                               
testimony and SB 298. He  said his clients have benefited greatly                                                               
from  Alaska's superior  trust estate  laws. He  had heard  of no                                                               
opposition to this bill.                                                                                                        
                                                                                                                                
CHAIR BUNDE asked Senator Seekins if he had heard of any                                                                        
opposition to the bill.                                                                                                         
                                                                                                                                
2:13:42 PM                                                                                                                    
SENATOR SEEKINS  replied that he  hadn't heard of  any opposition                                                               
to  this bill.  He  moved  to pass  SB  298  from committee  with                                                               
individual  recommendations   and  attached  zero   fiscal  note.                                                               
Senators Seekins, Ben  Stevens and Chair Bunde voted  yea; and SB
298 moved from committee.                                                                                                       
                                                                                                                                
CHAIR BUNDE adjourned the meeting at 2:15:30 PM.                                                                              

Document Name Date/Time Subjects