Legislature(1999 - 2000)
03/01/2000 11:30 AM Senate RLS
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE RULES COMMITTEE
March 1, 2000
11:30 a.m.
MEMBERS PRESENT
Senator Tim Kelly, Chair
Senator Loren Leman, Vice Chair
Senator Mike Miller
Senator Drue Pearce
Senator Johnny Ellis
MEMBERS ABSENT
None
COMMITTEE CALENDAR
SENATE BILL NO. 175
"An Act relating to state mining law, to methods of locating mining
claims, to the granting of larger mining claims using a legal
subdivision based on rectangular survey descriptions, and to
mandatory rental payments for prospecting rights."
-MOVED ALL VERSIONS OF SB 175 OUT OF COMMITTEE
SENATE BILL NO. 177
"An Act relating to insurance trade practices; and providing for an
effective date."
-MOVED ALL VERSIONS OF SB 177 OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
SB 175 - See Resources Committee minutes dated 2/21/00 and Finance
report dated 2/29/00.
SB 177 - See Labor and Commerce Committee minutes dated 1/18/00
and 2/29/00.
ACTION NARRATIVE
TAPE 00-4, SIDE A
CHAIRMAN KELLY called the Senate Rules Committee meeting to order
at 11:30 a.m. All members were present.
SENATOR LEMAN moved to calendar, at the Chairman's discretion, all
versions of SB 175-STATE MINING LAW with individual recommendations
and accompanying fiscal notes. There being no objection, the
motion carried.
SENATOR LEMAN moved to calendar, at the Chairman's discretion, all
versions of SB 177-INSURANCE TRADE PRACTICES & ACTS with individual
recommendations and accompanying fiscal notes.
SENATOR LEMAN objected to his motion to explain why he will
recommend that the bill be amended on the Senate floor. He
expressed concern that Section 6 could have the effect of limiting
the options available to Alaskans who seek different types of
insurance, such as earthquake insurance. He wants to take a closer
look at that question and whether the removal of Section 6 will
alleviate the problem.
SENATOR KELLY asked for a brief explanation of what the bill
accomplishes in its current form.
SENATOR LEMAN indicated SB 177 was heard by the Senate Labor and
Commerce Committee yesterday. The focus of the bill is whether one
act can be considered an insurance trade practice. Currently, the
Division of Insurance director does not believe he has the
authority under statute to step in and take action when one act
occurs versus when a series of actions occurs. Others disagree
with his interpretation and believe he has the authority but is
choosing not to exercise it. CSSB 177(L&C) clarifies in statute
that one act or one practice, in certain cases, could cause the
director to take action.
SENATOR ELLIS asked if a single act will constitute a practice
under Alaska statute if this bill becomes law.
SENATOR LEMAN said yes, that is essentially what it will do but
that Section 6 does something else. Section 6 pertains to
contributory causes. For example, if an earthquake occurred and a
person's home burned down because hot wires touched during the
earthquake, the issue was whether the person's homeowner insurance
would kick in to cover the fire damage if the person did not have
earthquake insurance. The Division of Insurance proposed the
language in Section 6 but it was not made fully clear during the
meeting why that section was included.
CHAIRMAN KELLY noted that Senator Donley and the Division of
Insurance support the bill while State Farm Insurance does not.
SENATOR LEMAN removed his objection.
CHAIRMAN KELLY announced that with no objections, SB 177 would be
calendared. There being no further business to come before the
committee, he adjourned the meeting at 11:35 a.m.
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