Legislature(2013 - 2014)BARNES 124
04/05/2013 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings|| Regulatory Commission of Alaska|| Board of Marine Pilots|| Board of Pharmacy|| Alaska Workers' Compensation Board | |
| HB32 | |
| HB150 | |
| SB52 | |
| HB121 | |
| HB152 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 32 | TELECONFERENCED | |
| *+ | HB 150 | TELECONFERENCED | |
| + | SB 52 | TELECONFERENCED | |
| *+ | HB 169 | TELECONFERENCED | |
| *+ | HB 121 | TELECONFERENCED | |
| *+ | HB 152 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 52-PORTABLE ELECTRONICS INSURANCE
4:08:27 PM
VICE CHAIR REINBOLD announced that the next order of business
would be the CS FOR SENATE BILL NO. 52(L&C) "An Act providing
that portable electronics insurance is not a service contract;
providing that a portable electronics manufacturer's warranty or
extended warranty is not regulated as insurance; relating to
portable electronics insurance; authorizing the director of
insurance to issue a limited producer license to a portable
electronics vendor for the sale of portable electronics
insurance; and relating to authorization and training of
employees and representatives of a vendor to transact portable
electronics insurance; and providing for an effective date."
4:08:40 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State
Legislature, informed the committee that Senator Coghill's
staff, Kari Nore, is a student from Gonzaga University serving
as an intern through the University of Alaska Southeast (UAS).
Ms. Nore drafted and researched the bill, prepared documents,
and has been presenting the bill to committees.
KARI NORE, Intern, Senator John Coghill, Alaska State
Legislature, introduced herself.
4:09:29 PM
REPRESENTATIVE CHENAULT moved to adopt the proposed House
committee substitute (CS) for SB 52, labeled 28-LS0461\O,
Bailey, 4/5/13 as the working document.
VICE CHAIR REINBOLD objected for purpose of discussion.
4:09:49 PM
MS. NORE stated that this bill would establish portable
electronic insurance under AS 21. This bill would attempt to
bring structure to the electronics insurance market and protect
consumers by adding portable electronic insurance not included
under a service contract, but regulated through the Division of
Insurance. Section 2 would add a new subsection, AS
21.03.021(g), to clarify that Title 21 does not apply to a
portable electronics manufacturer's warranty or extended
warranty. Section 3 would add a citation to reflect the
addition of the portable electronic insurance that is outlined
in Section 4. Section 4 would add a new paragraph (8) [to AS
21.27.150(a)] to allow the state's director, Division of
Insurance (DOI), to issue a portable electronics limited
producer license to a vendor that sells or offers portable
electronics insurance. The license would cover the vendor and
employees for all locations in the state where the vendor sells
the products. The employees do not have to be licensed so long
as they are not solely compensated based on the sale of
insurance. The vendor would have a training program and will
maintain a registry, she said.
4:11:09 PM
MS. NORE related that Section 5 would define portable
electronics insurance, list the materials that must be presented
to the consumer in writing, define the procedure for
modification of the terms of the insurance, define the
procedures to terminate the insurance, and list the types of
devices that will be covered under portable electronics
insurance. Section 6 would provide an effective date of January
1, 2014, to allow the DOI time to complete installation of a new
software program for data entry. This will prevent the bill
from having a fiscal impact, she said.
4:12:18 PM
REPRESENTATIVE SADDLER, referring to Section 3, asked for
clarification as to whether the employees who are not solely
compensated have to be licensed.
MS. NORE referred to page 5, line 29, which read:
(i) the employees or authorized
representatives are not compensated based primarily on
the number of customers enrolled for coverage;
however, an employee or authorized representative may
receive compensation for activities under the license
that is incidental to the employee's or authorized
representative's overall compensation;
MS. NORE explained that the employees will receive salaries, and
the vendor can offer a bonus if they choose to do so. Thus,
this bill does not mandate it.
4:13:32 PM
REPRESENTATIVE SADDLER asked if an employees are commissioned,
the salaries are not compensated based primarily on the number
of customers enrolled for coverage. He asked whether this is
solely for salaried employees or if it would also apply to
commission sales.
MS. NORE related her understanding that this bill would apply to
salaried employees.
REPRESENTATIVE SADDLER remarked it would be easier to manage.
4:13:53 PM
MS. NORE explained that on page 2, line 2, of CSSB 52(L&C)
portable electronics was included as tangible personal property;
however, through discussions, the sponsor decided this was
unnecessary since portable electronics were already considered
as personal property. Therefore, Version O does not include the
language "including portable electronics" on page 2, lines 2 and
8.
4:14:57 PM
MS. NORE pointed out that originally the language on page 10,
line 10, of CSSB 52(L&C) read: "a service contract governed by
AS 21.03.021(e);" which was found to be confusing. Thus, the
language was reworded in Version O to read: "(i) A service
contract described in AS 21.03.021 (e);" in order to clarify it.
VICE CHAIR REINBOLD removed her objection. [No further
objection was stated and the committee treated Version O as
before it.]
4:15:46 PM
STEPHEN MCDANIEL, Asurion Wireless Insurance Services [Asurion],
said he is available to answer questions. He stated that
Asurion is a provider of this portable electronics insurance and
works with wireless carriers to provide this protection program
to customers. He stated he is here in support of the bill.
4:16:34 PM
REPRESENTATIVE SADDLER asked whether he could describe the most
common losses.
MR. MCDANIEL answered he was unsure, but probably damage to the
device from dropping it, which is from his personal experience.
He said the program would cover physical damage, loss, and theft
of the devices.
VICE CHAIR REINBOLD, after first determining no one else wished
to testify, closed public testimony on SB 52.
4:17:45 PM
REPRESENTATIVE CHENAULT moved to report the proposed House
committee substitute (CS) for CSSB 52(L&C), labeled 28-LS0461\O,
Bailey, 4/5/13, out of committee with individual recommendations
and the accompanying fiscal notes. There being no objection,
HCS CSSB 52(L&C) was reported from the House Labor and Commerce
Standing Committee.