05/09/1998 03:08 PM Senate L&C

         SENATE LABOR AND COMMERCE COMMITTEE                                   
                     May 9, 1998                                               
                      3:08 P.M.                                                
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Loren Leman, Chairman                                                  
Senator Jerry Mackie, Vice Chairman                                            
Senator Tim Kelly                                                              
Senator Mike Miller                                                            
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Senator Lyman Hoffman                                                          
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
Confirmation Hearing: Mr. John Abshire, Workers' Compensation Board            
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
SB 359 - No previous action to record.                                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
Ms. Barbara Huff Tuckness                                                      
AFL-CIO                                                                        
520 W 34th                                                                     
Anchorage, AK 99503                                                            
POSITION STATEMENT: Supported SB 359.                                          
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-28, SIDE A                                                             
                                                                               
Number 001                                                                     
                                                                               
CHAIRMAN LEMAN called the Senate Labor and Commerce Committee                  
meeting to order at 3:08 p.m. and said they would take up the                  
confirmation of Mr. John Abshire, Workers Compensation Board.  He              
said Mr. Abshire had been available two or three times and through             
no fault of his or theirs, he hasn't been able to testify.                     
                                                                               
SENATOR MACKIE moved to forward the name of Mr. John Abshire for               
consideration by the Joint Session.  This is not a statement of                
intent to vote for or against the nominee by any committee members.            
There were no objections and it was so ordered.                                
                                                                               
                  SB 359 - INSURANCE PREMIUM TAX                               
                                                                               
CHAIRMAN LEMAN announced SB 359 to be up for consideration.                    
                                                                               
MS. BARBARA HUFF TUCKNESS, Teamsters Local 959, said she supported             
SB 359.  The particular portion of the bill that impacts the                   
Teamster members they represent in the Anchorage school district,              
although it affects other school districts, as well as cities                  
around the State, is the two percent retaliatory tax that is                   
applied to insurance companies that are domiciled in the state of              
Washington.  Currently, in Alaska there is only one insurance                  
company that fits that particular criteria, Blue Cross, which has              
the health insurance policy for the Anchorage school district.  She            
asked for their support in passing this bill that would repeal that            
tax.  Their members are currently paying a little over $100 per                
year to cover the tax and it has nothing to do with the level of               
benefit coverage they are receiving.                                           
                                                                               
SENATOR KELLY asked if Blue Cross said they would actually return              
the premium tax back to the consumer.                                          
                                                                               
MS. HUFF TUCKNESS said that was her understanding.                             
                                                                               
SENATOR KELLY asked if they could get a letter from Blue Cross to              
that affect.                                                                   
                                                                               
MS. HUFF TUCKNESS said she would make that request.                            
                                                                               
SENATOR MACKIE moved CSSB 359(L&C) from Committee with individual              
recommendations.  There were no objections and it was so ordered.              
                                                                               
CHAIRMAN LEMAN adjourned the meeting at 3:14 p.m.