03/21/2013 01:30 PM Senate LABOR & COMMERCE

             SB  52-PORTABLE ELECTRONICS INSURANCE                                                                          
                                                                                                                                
2:25:00 PM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration  of   SB  52.  "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."  [CSSB  52,                                                               
labeled  28-LS0461\N, was  before  the committee.]  This was  the                                                               
second hearing.                                                                                                                 
                                                                                                                                
2:25:16 PM                                                                                                                    
KARI  NORE,  Intern, Senator  John  Coghill,  sponsor of  SB  52,                                                               
recapped for the  committee that SB 52 seeks  to bring regulation                                                               
to the  booming portable electronics industry,  and was requested                                                               
by  companies that  sell these  portable  electronics. She  noted                                                               
that there were three amendments for the committee to consider.                                                                 
                                                                                                                                
2:26:27 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:26:53 PM                                                                                                                    
CHAIR DUNLEAVY reconvened the meeting and recognized Ms. Moss.                                                                  
                                                                                                                                
2:27:05 PM                                                                                                                    
RYNNIEVA MOSS,  Staff, Senator  John Coghill,  sponsor of  SB 52,                                                               
explained  that  the  proposed  amendments  were  prepared  after                                                               
discussions  with legislative  attorneys  and representatives  of                                                               
the  electronics  companies.  The  sponsor wants  to  clarify  in                                                               
statute  that consumers  have three  options to  protect portable                                                               
electronics:  a   service  contract,  a  warranty,   or  portable                                                               
electronics insurance. She noted  that Senator Micciche agreed to                                                               
carry the amendments and Ms. Nore would explain them.                                                                           
                                                                                                                                
2:28:08 PM                                                                                                                    
MATTHEW  NOWELS, Attorney,  Blank  &  Meenan, P.A.,  representing                                                               
Assuring, a  primary provider of this  produce nationwide offered                                                               
to answer questions.                                                                                                            
                                                                                                                                
CHAIR DUNLEAVY found no questions and closed public testimony.                                                                  
                                                                                                                                
2:28:48 PM                                                                                                                    
SENATOR MICCICHE moved Amendment 1, labeled 28-LS0461\N.2.                                                                      
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR COGHILL                                                                 
          TO:  CSSB 52(   ), Draft Version "N"                                                                                  
                                                                                                                                
     Page 6, line 9, following "AS 21.36.515                                                                                  
          Insert "and"                                                                                                          
                                                                                                                                
     Page 6, lines 9-16:                                                                                                        
          Delete all material.                                                                                                  
                                                                                                                                
     Page 6, line 17:                                                                                                           
          Delete "(iv)"                                                                                                         
          Insert "(iii)"                                                                                                        
                                                                                                                                
SENATOR STEDMAN objected for discussion purposes.                                                                               
                                                                                                                                
MS.  NORE explained  the purpose  of the  amendment is  to remove                                                               
sub-subparagraph  (iii).   The  director   of  the   Division  of                                                               
Insurance  initially requested  this  provision  because he  felt                                                               
there  was  a possibility  that  enforcement  would be  difficult                                                               
because there was  no registry. It was later  determined that the                                                               
division has the authority without this provision.                                                                              
                                                                                                                                
MS.  MOSS  added that  both  the  industry  and the  Division  of                                                               
Insurance agreed this was not needed.                                                                                           
                                                                                                                                
SENATOR STEDMAN removed his objection.                                                                                          
                                                                                                                                
2:30:03 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:30:13 PM                                                                                                                    
CHAIR  DUNLEAVY found  no further  objection  and announced  that                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
2:30:32 PM                                                                                                                    
SENATOR MICCICHE moved Amendment 2, labeled 28-LS0461\N.3.                                                                      
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR COGHILL                                                                 
          TO:  CSSB 52(   ), Draft Version "N"                                                                                  
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "damaged by power surges"                                                                                      
                                                                                                                                
SENATOR STEDMAN objected for discussion purposes.                                                                               
                                                                                                                                
MS. NORE  explained that  this amendment came  at the  request of                                                               
Apple  Electronics.  It  broadens   the  language  under  service                                                               
contracts,  which now  is  restricted to  damages  done by  power                                                               
surges,  not  accidental  damage.  She  noted  that  the  sponsor                                                               
believes this  potentially is  a drafting  error in  the original                                                               
statutes.                                                                                                                       
                                                                                                                                
MS. MOSS  added that  legislative legal  agrees that  this phrase                                                               
probably  was  a drafting  error  when  the statute  was  adopted                                                               
originally.                                                                                                                     
                                                                                                                                
SENATOR STEDMAN removed his objection.                                                                                          
                                                                                                                                
CHAIR  DUNLEAVY found  no further  objection  and announced  that                                                               
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
2:31:50 PM                                                                                                                    
SENATOR MICCICHE moved Amendment 3, labeled 28-LS0461\N.4.                                                                      
                                                                                                                                
                          AMENDMENT 3                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR COGHILL                                                                 
              TO:  CSSB 52(   ), Draft Version "N"                                                                              
                                                                                                                                
     Page 2, line 2, following "property,":                                                                                     
          Insert "including portable electronics,"                                                                          
                                                                                                                                
     Page 2, line 7, following "property":                                                                                      
          Insert ", including portable electronics,"                                                                        
                                                                                                                                
SENATOR STEDMAN objected for discussion purposes.                                                                               
                                                                                                                                
MS.   NORE  explained   that  this   amendment  allows   portable                                                               
electronics to  be considered as  tangible personal  property and                                                               
be included under service contracts.                                                                                            
                                                                                                                                
MS.  MOSS noted  that  legislative legal  didn't  think this  was                                                               
necessary, but  the industry  wanted it  perfectly clear  that it                                                               
continues to have the ability to offer service contracts.                                                                       
                                                                                                                                
SENATOR STEDMAN removed his objection.                                                                                          
                                                                                                                                
CHAIR  DUNLEAVY found  no further  objection  and announced  that                                                               
Amendment 3 was adopted.                                                                                                        
                                                                                                                                
2:33:05 PM                                                                                                                    
SENATOR MICCICHE moved  to report SB 52,  28-LS0461\N as amended,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  DUNLEAVY announced  that  without  objection CSSB  52(L&C)                                                               
moved from the Senate Labor and Commerce Standing Committee.