SENATE RULES COMMITTEE February 17, 1998 11:22 a.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Loren Leman, Vice Chair Senator Robin Taylor Senator John Torgerson Senator Jim Duncan MEMBERS ABSENT All members present COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 309(RLS) "An Act naming the Robert B. Atwood Building." HOUSE JOINT RESOLUTION NO. 29 Supporting an increase in federal funding for prostate cancer research. SENATE BILL NO. 197 "An Act relating to health care services provided by, and practices of, a health maintenance organization; and prohibiting health maintenance organizations from limiting free speech of health care providers." PREVIOUS SENATE COMMITTEE ACTION HB 309 - No previous action to record. HJR 29 - See Senate Health, Education & Social Services minutes dated 5/7/97. SB 197 - See HESS minutes dated 1/14/98, 1/16/98, and 1/21/98. WITNESS REGISTER Ms. Annette Deal, Staff to Representative John Cowdery State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on CSHB 209(RLS) Keith Gerken Division of General Services Department of Administration P.O. Box 110210 Juneau, AK 99811-0210 POSITION STATEMENT: Testified in support of CSHB 209(RLS) Representative Kim Elton State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of HJR 29 Senator Dave Donley State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of SB 197 Ms. Lynn Hartz Alaska Nurse Practitioner Association 3104 Brookside Drive Anchorage, AK 99517 POSITION STATEMENT: Testified in support of CSSB 197(RLS) with inclusion of a suggested amendment Ms. Kathy Volz Alaska Physical Therapy Association P.O. Box 140351 Anchorage, AK 99514 POSITION STATEMENT: Testified in support of CSSB 197(RLS) ACTION NARRATIVE TAPE 98-1 , SIDE A HB 309 - NAMING ATWOOD BLDG IN ANCHORAGE CHAIRMAN KELLY called the Senate Rules Committee meeting to order at 11:22 a.m., and noted all members were present. He then brought CSHB 309(RLS) before the committee as the first order of business. ANNETTE DEAL, staff to Representative John Cowdery who is the prime sponsor of the legislation, explained HB 309 was originally a one sentence bill to change the name of the Bank of America Building in Anchorage, which was recently purchased by the state of Alaska, to the Robert B. Atwood Building. However, it came to the sponsor's attention that the Bank of America had sign rights in their lease. The committee substitute added a new sentence to give the Department of Administration the right to negotiate that lease for sign rights. CHAIRMAN KELLY related that his understanding from Representative Cowdery is that there has been a understanding reached with the Bank of America and they are close to agreeing to name the building the Bank of America, Robert B. Atwood Building until the year 2002 when the ability of the naming of it by the Bank of America expires. CHAIRMAN KELLY asked Mr. Gerken of the Department of Administration if there are any legal problems with this arrangement. KEITH GERKEN stated the amended bill solves the conflict between the proposal and lease which the state inherited upon the purchase of the building. There being no further testimony on CSHB 309(RLS), CHAIRMAN KELLY asked for the will of the committee. SENATOR LEMAN stated it was appropriate to name the Bank of America Building after a man who contributed so much to the state of Alaska. He then moved CSHB 309(RLS) be passed out of committee with individual recommendations and approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered. HJR 29 - FUNDING FOR PROSTATE CANCER RESEARCH CHAIRMAN KELLY brought HJR 29 before the committee as the next order of business. He directed attention to a proposed Rules SCS. REPRESENTATIVE KIM ELTON, prime sponsor of HJR 29, said the resolution asks the federal government to raise the awareness of prostate cancer research programs and to more fully fund prostate cancer research. He pointed out prostate cancer afflicts one out of every five men and causes 41,000 deaths a year. Representative Elton explained the committee substitute changes two references from 1997 to 1998. On page 1, line 7, the 334,500 new cases of prostrate cancer figure has been changed to 209,900 which more accurately reflects what the number is. There being no further testimony on HJR 29, CHAIRMAN KELLY requested motions on the legislation. SENATOR DUNCAN moved the adoption of SCS HJR 29(RLS). Hearing no objection, the motion carried. SENATOR DUNCAN moved SCS HJR 29(RLS) be approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered. SB 197 - REGULATING HEALTH MAINTENANCE ORGS. CHAIRMAN KELLY brought SB 197 before the committee and noted there was a proposed Rules CS for the committee's consideration. SENATOR DAVE DONLEY, prime sponsor of SB 197, explained the committee substitute adds language on page 3, line 21, which provides that health maintenance organizations would have to provide an 'point of service' option that could require additional costs on the part of the people that choose option, but it would allow them to go to other types of health care. He said it is a way of making sure the consumers have an option to buy additional coverages of the types that they may feel is appropriate and not be limited by HMOs to not have that option available to them. Senator Donley voiced his support for an amendment that was being offered by Senator Leman. He said the amendment also increases consumer options within the HMO system. SENATOR TAYLOR moved the adoption of CSSB 197(RLS). Hearing no objection, the motion carried. SENATOR LEMAN moved adoption of the following amendment to CSSB 197(RLS). CHAIRMAN KELLY objected for the purpose of discussion on the amendment. Amendment No. 1 Page 1, following line 7, insert a new bill section to read: "*Section 1. AS 21.36.090(d) is amended to read: (d) Except to the extent necessary to comply with AS 21.42.365 and AS 21.56, a person may not practice or permit unfair discrimination against a person who provides a service covered under a group health insurance policy that extends coverage on an expense incurred basis, or under a group service or indemnity type contract issued by a health maintenance organization or a nonprofit corporation, if the service is within the scope of the provider's occupational license. In this subsection, "provider" means a state licensed physician, dentist, osteopath, optometrist, chiropractor, nurse midwife, advanced nurse practitioner, naturopath, physical therapist, occupational therapist, psychologist, psychological associate, or licensed clinical social worker, or certified direct- entry midwife." Page 1, line 8: Delete "Section 1." and insert "Sec. 2." Renumber the following bill sections accordingly. CHAIRMAN KELLY stated the committee would take testimony from Anchorage via the teleconference network. LYNN HARTZ, a family nurse practitioner and a legislative representative of the Alaska Nurse Practitioner Association, testified in support of CSSB 197(RLS). She said it contains some important consumer protection aspects relating to disclosure to the enrollee of what is covered and what will not be covered, as well as protecting the lines of communication between the clinician and patient. Ms. Hartz suggested that in addition to the changes in the committee substitute and the proposed amendment, there is additional language in the HMO statutes that would need to be changed to allow enrollees continued choice in their health care providers inside the HMO network. She said it is their view that the change will allow health care consumer choice in their preferred health care provider inside the HMO network as Senator Donley's amendment provides for choice in providers outside the HMO network. She said she would fax the suggested change to the Chairman. KATHY VOLZ, testifying from Anchorage on behalf of the Alaska Physical Therapy Association, voiced their support for the committee substitute and Senator Leman's amendment. CHAIRMAN KELLY removed his objection to the adoption of Amendment No. 1, and there being no further objection, he stated the amendment was adopted and it would be incorporated into a new Rules CS. SENATOR TAYLOR moved and asked unanimous consent CSSB 197(RLS), as amended, be approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting adjourned at 11:33 a.m.