SB 74-AUTISM: INS. COVERAGE, TASK FORCE  9:09:37 AM CHAIR JOHNSON announced that the next order of business would be SENATE BILL NO. 74, "An Act requiring insurance coverage for autism spectrum disorders, describing the method for establishing a covered treatment plan for those disorders, and defining the covered treatment for those disorders; and providing for an effective date." 9:09:49 AM REPRESENTATIVE OLSON moved to adopt HCS SB 74, Version 27- LS0443\E, Bailey, 4/14/12, as the working document. CHAIR JOHNSON objected. 9:10:02 AM ERIN SHINE, Staff, Representative Johnson, Alaska State Legislature, reviewed the changes encompassed in Version E. In Version E on page 1, lines 10-11, the language "or psychologist," was replaced with the language ", psychologist, or advanced nurse practitioner,". On page 1, line 13, the language "may include" is replaced with the language "includes". On page 2, line 3, the language "necessary to develop, restore, or maintain the functioning of an individual to the maximum extent practicable" was moved from following the term "therapies" to following the term "programs". The aforementioned change clarifies that the standard applies to both applied behavior analysis and structural behavioral therapies. On page 2, lines 25-28, a new subsection (c) that exempts a business with 20 employees or less from being required to provide autism insurance coverage is added. On page 2, line 29 through page 3, line 3, a new subsection (d) is added that specifies that employers with 21-25 employees may be exempt from being required to provide autism insurance coverage when they demonstrate that the increases to their premium for a consecutive 12-month period is greater than 3 percent. 9:12:06 AM REPRESENTATIVE GRUENBERG posed a scenario in which a company has health insurance with company A and it will increase more than 3 percent, but the company could obtain health insurance for a cost less than 3 percent from another company. He asked, "Will they be able to get out under this or is there a duty to try to get insurance that would meet the requirement?" CHAIR JOHNSON said there is no duty to do so, but opined that any prudent businessman would seek a cheaper insurance policy. He highlighted that [the legislature] is trying to avoid mandates on private businesses. 9:13:06 AM MS. SHINE, continuing her review of the changes encompassed in Version E, directed attention to page 3, line 8, following "or" the term "has" was inserted. On page 3, lines 23-24, the language ", psychologist, or advanced nurse practitioner," replaces the language "or psychologist". On page 4, line 7, the enactment date has been changed from "January 1, 2012" to "January 1, 2013". In Section 3, the immediate effective date under AS 01.10.070(c) to January 1, 2013. 9:14:12 AM CHAIR JOHNSON invited public testimony. 9:14:39 AM DENNY DEWITT, Lobbyist/Alaska Director, National Federation of Independent Business, stated that while the National Federation of Independent Business appreciates the movement the legislation makes, unfunded mandates are merely that - unfunded mandates. While the membership of the National Federation of Independent Business appreciates the efforts, particularly that a number of the more fragile businesses in Alaska are protected, it remains a mandate. In a corporate sense, the legislature is a board of directors for the Alaska State corporation. Mr. DeWitt highlighted that the legislature is ignoring its own personnel policies and mandating them to others. 9:15:54 AM CHAIR JOHNSON, upon determining no one else wished to testify, closed public testimony. He then announced that the legislation was before the committee. [Chair Johnson's earlier objection to the adoption of HCS SB 74, Version E, was treated as withdrawn.] 9:16:26 AM REPRESENTATIVE OLSON moved to report HCS SB 74, Version 27- LS0443\E, Bailey, 4/14/12, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS SB 74(RLS) was reported from the House Rules Standing Committee.