SENATE RULES COMMITTEE May 10, 1994 9:40 a.m. MEMBERS PRESENT Senator Rick Halford, Chair Senator Steve Rieger, Vice Chair Senator George Jacko Senator Fred Zharoff MEMBERS ABSENT Senator Suzanne Little COMMITTEE CALENDAR HOUSE BILL NO. 356 "An Act relating to living wills and do not resuscitate orders; and providing for an effective date." HOUSE BILL NO. 403 "An Act requiring that automobile liability insurance include coverage for uninsured or underinsured motor vehicles and an offer of policy limits for that coverage equal to coverage voluntarily purchased for bodily injury or death; and providing for an effective date." CS FOR HOUSE BILL NO. 447(FIN) "An Act establishing the Afognak Island State Park." CS FOR HOUSE BILL NO. 494(STA) am "An Act changing the Alaska State Pension Investment Board to the Alaska Pension Investment Authority and relating to the authority; and providing for an effective date." CS FOR HOUSE BILL NO. 538(L&C) "An Act relating to uniform claims forms, uniform standards, and uniform procedures for processing data relating to billing and payment of health care services; and providing for an effective date." HOUSE JOINT RESOLUTION NO. 47 am Relating to schools on military installations. HOUSE JOINT RESOLUTION NO. 64 Relating to the projects of the Alaska Aerospace Development Corporation for satellite ground stations and a rocket launch facility. SENATE CONCURRENT RESOLUTION NO. 24 Suspending Uniform Rules 24(c), 35, 41(b), and 42(e) of the Alaska State Legislature concerning House Bill No. 538, relating to billing and payment for health care services. HOUSE BILL NO. 456 am "An Act making appropriations to satisfy the agreed-upon monetary terms of certain collective bargaining agreements for certain public employees; and providing for an effective date." CS FOR HOUSE BILL NO. 517(JUD) "An Act relating to innocent misrepresentations by agents in real property transfers." PREVIOUS SENATE COMMITTEE ACTION HB 356 - See Judiciary minutes dated 5/3/94. Finance report 5/8/94. HB 403 - See Labor and Commerce minutes dated 4/12/94 and 4/14/94. See Judiciary minutes dated 5/3/94. HB 447 - Finance report 5/9/94. HB 494 - See State Affairs minutes dated 4/18/94 and 4/20/94. Finance report 5/8/94. HB 538 - See Health, Education & Social Services minutes dated 5/4/94. Labor & Commerce waived referral 5/5/94. HJR 47 - See Health, Education & Social Services minutes dated 4/30/94. HJR 64 - See Labor and Commerce minutes dated 4/26/94. SCR 24 - No previous action to record. HB 456 - Finance report 5/7/94. HB 517 - Judiciary referral waived 5/9/94. WITNESS REGISTER Josh Fink, Staff to Senator Tim Kelly State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on HB 517 Commissioner Nancy Usera Department of Administration P.O. Box 110200 Juneau, AK 99811-0200 POSITION STATEMENT: Offered information on HB 456 ACTION NARRATIVE TAPE 94-9, SIDE A Number 001 CHAIRMAN RICK HALFORD called the Senate Rules Committee meeting to order at 9:40 a.m. SENATOR RIEGER moved and asked unanimous consent that HB 356 (LIVING WILLS AND MEDICAL CARE ORDERS) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that HB 403 (AUTOMOTIVE LIABILITY INSURANCE COVERAGE) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that CSHB 447(FIN) ) (ESTABLISH AFOGNAK ISLAND STATE PARK_ be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that CSHB 494(STA) ) am (ALASKA PENSION INVESTMENT AUTHORITY) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that CSHB 538(L&C) ) (HEALTH CARE PAYMENTS & HIGH RISK INS) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that HJR 47 am (FUNDS TO UPGRADE MILITARY BASE SCHOOLS) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that HJR 64 (PROJECTS OF ALASKA AEROSPACE DEV. CORP.) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that SCR 24 (SUSPEND UNIFORM RULES FOR HB 538) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. CHAIRMAN HALFORD brought CSHB 517(JUD) (REAL PROPERTY TRANSFERS) before the committee as the next order of business. JOSH FINK, aide to Senator Tim Kelly who introduced the Senate companion bill to HB 517, explained the legislation will remove real estate professionals from liability of innocent misrepresentation in real property transactions. In 1982 the Supreme Court ruled that brokers who make an innocent misrepresentation to a purchaser of real property are liable for the misrepresentation, and HB 517 will correct that decision. He emphasized that the due diligence responsibility of brokers still applies and this strictly applies to an innocent misrepresentation. SENATOR JACKO moved that CSHB 517(JUD) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. SENATOR JACKO moved and asked unanimous consent that CSHB 517(JUD) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. CHAIRMAN HALFORD brought HB 456 am (APPROP: COST OF CERTAIN LABOR AGREEMENTS) before the committee as the final order of business. There was a Rules SCS before the committee for its consideration. COMMISSIONER NANCY USERA, Department of Administration, stated she believes that more importantly than just the money that was saved in terms of negotiating the agreement are the terms under which it was done. It clarified and cleaned up a lot of the language that was particularly problematic for the state under this contract, but even more importantly, for the implications it had on the other 10 bargaining units, she said. Commissioner Usera explained the Rules SCS adds the terms of the Public Safety Employees Association letter of agreement as part of the monetary terms of the negotiated agreements. It also includes intent language which makes it clear that this is a replacement agreement for the original arbitration. SENATOR RIEGER pointed out that Section 11 is a conditional appropriation rather than intent language. CHAIRMAN HALFORD agreed, saying that appropriation is only conditioned upon the acceptance and the modification of the letter; it is much stronger than intent language. SENATOR JACKO moved that SCS HB 456(RLS) be adopted. Hearing no objection, the motion carried. SENATOR JACKO moved that SCS HB 456(RLS) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Before the bill was approved for calendaring, COMMISSIONER USERA commented that these are landmark agreements; they are excellent agreements for the state that make a fundamental shift in the relationship between the state and its employees. SENATOR JACKO moved and asked unanimous consent that SCS HB 456(RLS) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting was adjourned at 9:50 a.m.