Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/18/2014 07:30 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB206 | |
| HB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 206 | TELECONFERENCED | |
| + | HB 28 | TELECONFERENCED | |
HB 28-FIRE AND EMERGENCY MEDICAL SERVICES
7:44:37 AM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 28. "An Act exempting solicitations or
voluntary agreements to provide ambulance, emergency, or fire
department services from regulation as insurance." This was the
first hearing.
7:44:42 AM
REPRESENTATIVE ERIC FEIGE, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 28, introduced the bill stating the
following:
HB 28 addresses an issue important to many
organizations: money.
Capital grants from the State of Alaska and other
entities help many emergency service organizations
exist. Unfortunately, money is often available for
projects such as buying new equipment or repairing a
building, but money is very rarely available for
operating expenses.
House Bill 28 provides a mechanism to help emergency
service agencies maintain sustainability. Fire
departments, ambulance services and other emergency
service organizations often struggle to keep the doors
open. In some communities, the power to levy taxes
provides sufficient funding to operate these
departments. In others, it is not an option. When
sufficient funds are not available, organizations turn
to other sources for money. Sometimes it is a pancake
supper or a fish fry. Maybe it's a bake sale or some
other project. Maybe BINGO. In different communities,
different things work. The problem with these types of
activities is that they take even more of the
emergency volunteer's time. Time they need to spend
training and responding to other emergencies.
Donations also are very helpful, but it is becoming
increasingly difficult to convince people to give
money to an organization. People have come to expect
the government to provide these services.
One alternative to entice people to provide donations
to help support fire and EMS services in the community
is to offer a "no charge" policy to those that give to
the organization. Unfortunately, such a simple concept
is considered insurance in Alaska and subject to
numerous laws and regulation.
An ambulance service can become a health services
corporation and become exempt from many of the
insurance laws. To do so requires the organization to
put up a minimum bond of $100,000 along with other
requirements. Hardly feasible for a few people in a
remote village who want to create a service to take
those that are sick or injured to the local clinic.
The alternative [is to] hope someone comes along that
can take the injured or sick person because no
organized local ambulance service exists.
If you just charge the individual for the service,
it's no problem. But if you ask for money up front to
keep gas in the ambulance and to keep the fire station
heated in exchange for not charging the longtime donor
if you come to assist them, it falls under the
category of insurance and is subject to all the
regulations of the Division of Insurance.
In a similar situation, a community that has no fire
department might want to start one. Often
organizations charge if they have to come to help you.
Others ask for donations. You might hear it referred
to as a subscription fire department. In a
subscription department, you pay in advance to receive
the service and then receive a discount on costs if
you have to use the service. The State of Alaska
considers this insurance.
This bill does only one thing. It exempts
municipalities and community-based nonprofit
organizations engaged in emergency services from the
insurance regulations for donations received that
result in a production of fees charged.
CHAIR DUNLEAVY requested a synopsis of what the bill does.
REPRESENTATIVE FEIGE said it removes subscription-type emergency
organizations from the regulations of the Division of Insurance.
CHAIR DUNLEAVY observed that it would help rural areas of the
state.
REPRESENTATIVE FEIGE agreed.
SENATOR MICCICHE commented that the bill essentially calls
insurance something else.
REPRESENTATIVE FEIGE clarified that it establishes that
subscription services are not insurance.
SENATOR OLSON asked if the Division of Insurance is in favor of
the bill.
7:50:26 AM
MARTY HESTER, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED), stated
that the division does not oppose HB 28. It is similar to
legislation that was carved out for the air ambulance industry.
HB 28 would carve out for municipalities and community-based
nonprofits to offer similar subscription services.
SENATOR OLSON admonished the division for taking a neutral
stance on legislation that obviously would help emergency
services in rural Alaska. He asked if it's true that the
division has a negative view of people that provide these
subscription-type services.
MR. HESTER replied it is not true. He said the division has to
enforce insurance statutes and it's been opined that these types
of subscription memberships are insurance. HB 28 would remove
municipalities and community-based nonprofits from regulation by
the division.
SENATOR OLSON asked if he had lived in rural Alaska.
MR. HESTER answered no.
CHAIR DUNLEAVY asked if he sees any harm resulting from the
bill.
MR. HESTER answered no.
SENATOR MICCICHE said he supports the bill because emergency
services are an appropriate application, but it shouldn't grow
beyond that.
CHAIR DUNLEAVY opened and closed public testimony.
7:53:17 AM
SENATOR MICCICHE moved to report HB 28 from committee with
individual recommendations and attached fiscal note(s).
CHAIR DUNLEAVY announced that without objection, HB 28 moved
from the Senate Labor and Commerce Standing Committee.