Legislature(2013 - 2014)BARNES 124
04/05/2013 03:15 PM House LABOR & COMMERCE
Audio | Topic |
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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.