Legislature(1993 - 1994)

05/08/1994 08:40 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                           MAY 8, 1994                                         
                            8:40 P.M.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Bill Hudson, Chairman                                         
  Representative Eldon Mulder                                                  
  Representative Bill Williams                                                 
  Representative Brian Porter                                                  
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Joe Green, Vice-Chairman                                      
  Representative Joe Sitton                                                    
  Representative Jerry Mackie                                                  
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE BILL NO. 213                                                          
  "An Act extending the Alaska Public Utilities Commission and                 
  the regulatory cost charge."                                                 
                                                                               
  SENATE BILL NO. 362                                                          
  "An  Act   relating   to  insurance,   to   the   licensing,                 
  accreditation,  examination,  regulation,  and  solvency  of                 
  persons  engaged   in  the  insurance   business,  including                 
  insurers,  nonadmitted  insurers,  purchasing  groups,  risk                 
  retention  groups,  and  United  States  branches  of  alien                 
  insurers; relating  to the management  of and the  filing of                 
  reports  by  persons  licensed or  otherwise  doing business                 
  under  the  insurance code;  amending  Alaska Rule  of Civil                 
  Procedure 45; and providing for an effective date."                          
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  PAUL FUHS, Commissioner                                                      
  Department of Commerce and Economic Development                              
  P.O. Box 110800                                                              
  Juneau, Alaska  99811-0800                                                   
  465-2500                                                                     
  POSITION STATEMENT:  Supported SB 362                                        
                                                                               
  DAVE WALSH, Director                                                         
  Division of Insurance                                                        
  P.O. Box 110805                                                              
  Juneau, Alaska  99811-0805                                                   
  465-2515                                                                     
  POSITION STATEMENT:  Supported SB 362                                        
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  SB 213                                                                
  SHORT TITLE: APUC EXTENSION AND                                              
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  05/07/93      2113    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  05/07/93      2113    (S)   LABOR & COMMERCE, JUDICIARY,                     
                              FINANCE                                          
  02/08/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  02/08/94              (S)   MINUTE(L&C)                                      
  02/24/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  02/24/94              (S)   MINUTE(L&C)                                      
  03/08/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/08/94              (S)   MINUTE(L&C)                                      
  03/10/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/10/94              (S)   MINUTE(L&C)                                      
  03/15/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/15/94              (S)   MINUTE(L&C)                                      
  03/16/94      3238    (S)   L&C RPT  CS  3DP 1NR NEW TITLE                   
  03/16/94      3238    (S)   ZERO FN TO  SB & CS PUBLISHED                    
                              (DCED)                                           
  03/30/94              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  04/11/94      3550    (S)   JUD RPT CS 2DP 2NR NEW TITLE                     
  04/11/94      3550    (S)   PREVIOUS ZERO FN APPLIES TO                      
                              CS (DCED)                                        
  04/18/94              (S)   FIN AT 09:00 AM SENATE                           
                              FINANCE 518                                      
  04/19/94              (S)   FIN AT 08:15 AM SENATE                           
                              FINANCE 518                                      
  04/19/94      3777    (S)   FIN RPT  CS  5DP 1NR                             
  04/19/94      3777    (S)   FN TO CS PUBLISHED (DCED)                        
  04/19/94      3777    (S)   ZERO FN TO CS PUBLISHED (REV)                    
  04/20/94              (S)   RLS AT 06:45 PM FAHRENKAMP                       
                              ROOM 203                                         
  04/29/94      4109    (S)   RLS RPT  2CAL 2NR 4/29/94                        
  04/29/94      4130    (S)   READ THE SECOND TIME                             
  04/29/94      4130    (S)   FIN  CS ADOPTED Y11 N9                           
  04/29/94      4131    (S)   AM NO  1  MOVED BY KELLY                         
  04/29/94      4131    (S)   AM NO  1  ADOPTED UNAN CONSENT                   
  04/29/94      4131    (S)   ADVANCE TO THIRD READING                         
                              FAILED Y11 N9                                    
  04/29/94      4131    (S)   THIRD READING 5/2 CALENDAR                       
  05/02/94      4240    (S)   AUTOMATICALLY IN THIRD READING                   
  05/02/94      4240    (S)   READ THE THIRD TIME                              
                              CSSB 213(FIN) AM                                 
  05/02/94      4240    (S)   RETURN TO SECOND FOR AM 2                        
                              UNAN CONSENT                                     
  05/02/94      4240    (S)   AM NO  2     MOVED BY DONLEY                     
  05/02/94      4240    (S)   AM NO  2     FAILED  Y5 N15                      
  05/02/94      4241    (S)   AUTOMATICALLY IN THIRD READING                   
  05/02/94      4241    (S)   FAILED PASSAGE Y9 N11                            
  05/02/94      4241    (S)   Ellis  NOTICE OF                                 
                              RECONSIDERATION                                  
  05/03/94      4265    (S)   RECON TAKEN UP - IN THIRD                        
                              READING                                          
  05/03/94      4266    (S)   PASSED ON RECONSIDERATION                        
                              Y11 N9                                           
  05/03/94      4266    (S)   EFFECTIVE DATE FAILED Y13 N7                     
  05/03/94      4302    (S)   TRANSMITTED TO (H)                               
  05/05/94      4019    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  05/05/94      4019    (H)   L&C, STATE AFFAIRS, FINANCE                      
  05/08/94              (H)   L&C AT 08:30 PM CAPITOL 17                       
                                                                               
  BILL:  SB 362                                                                
  SHORT TITLE: OMNIBUS INSURANCE REFORM                                        
  SPONSOR(S): LABOR & COMMERCE BY REQUEST                                      
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  03/18/94      3268    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/18/94      3269    (S)   L&C, JUD                                         
  03/29/94              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/29/94              (S)   MINUTE(L&C)                                      
  04/05/94      3447    (S)   L&C RPT  CS  2DP 1NR SAME TITLE                  
  04/05/94      3447    (S)   ZERO FN TO SB & CS PUBLISHED                     
                              (DCED)                                           
  04/11/94              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  05/02/94      4211    (S)   JUD RPT  1DP 2NR   (L&C)CS                       
  05/02/94      4211    (S)   PREVIOUS ZERO FN (CORR)                          
  05/05/94      4355    (S)   RULES RPT 3CAL 2NR   5/5/94                      
  05/05/94      4372    (S)   READ THE SECOND TIME                             
  05/05/94      4372    (S)   L&C  CS ADOPTED UNAN CONSENT                     
  05/05/94      4372    (S)   MOTION TO ADVANCE WITHDRAWN                      
  05/05/94      4372    (S)   THIRD READING 5/6 CALENDAR                       
  05/06/94      4426    (S)   READ THE THIRD TIME                              
                              CSSB 362(L&C)                                    
  05/06/94      4427    (S)   PASSED Y20 N-                                    
  05/06/94      4427    (S)   COURT RULE CHANGE VOTE SAME AS                   
                              PASSAGE                                          
  05/06/94      4427    (S)   EFFECTIVE DATE  SAME AS                          
                              PASSAGE                                          
  05/06/94      4450    (S)   TRANSMITTED TO (H)                               
  05/08/94      4169    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  05/08/94      4170    (H)   LABOR & COMMERCE                                 
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-40, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CHAIRMAN  HUDSON  convened  the  House  Labor  and  Commerce                 
  Committee  at  8:40  p.m.   Committee  members  present were                 
  Representatives  Hudson,  Mulder,   Williams,  and   Porter.                 
  Committee members absent were Representatives Green, Sitton,                 
  and Mackie                                                                   
  CSSB 213(FIN) am(efd  fld) -  APUC EXTENSION AND  REGULATORY                 
  COST CHARGE                                                                  
                                                                               
  CHAIRMAN HUDSON announced that the committee would be taking                 
  action on CSSB 213 (Fin) am(efd fld).                                        
                                                                               
  CHAIRMAN HUDSON informed the committee  members that the new                 
  House version proposed committee substitute deletes Sections                 
  5 and 6, the GCI amendments, and adds the effective dates of                 
  `July 19,  1995' for  the liberally  construed language  and                 
  `July 19,  1994' for  the rest of  the bill.   He  noted the                 
  title  in the  draft version does  not affect  the effective                 
  date.                                                                        
                                                                               
  Number 018                                                                   
                                                                               
  REPRESENTATIVE MULDER moved to adopt  the HCSCSSB 213 (L&C).                 
  Hearing no objection, it was so ordered.                                     
                                                                               
  Number 020                                                                   
                                                                               
  REPRESENTATIVE  PORTER moved  to pass HCSCSSB  213(L&C) with                 
  the conceptual amendment adding the effective date language,                 
  and the  zero fiscal  note, out  of committee.   Hearing  no                 
  objection, the motion carried.                                               
  Number 024                                                                   
  CHAIRMAN HUDSON announced  that the committee did  notice SB
  362 but  did not have  the opportunity to waive  the 24 hour                 
  rule on the House  floor.  He said they would  attempt to do                 
  it that  evening and, if not,  the bill would  be before the                 
  committee the next morning.                                                  
                                                                               
  Number 028                                                                   
                                                                               
  CHAIRMAN HUDSON recessed the meeting at 8:41 P.M.                            
                                                                               
  Number 040                                                                   
                                                                               
  CHAIRMAN  HUDSON reconvened  the  House  Labor and  Commerce                 
  Committee at 11:27 a.m.  on May 9, 1994.   Committee members                 
  present  were  Representatives   Hudson,  Green,   Williams,                 
  Mulder,   and  Porter.     Committee  members   absent  were                 
  Representatives Sitton and Mackie.                                           
                                                                               
  CSSB 362 (L&C) - OMNIBUS INSURANCE REFORM                                    
                                                                               
  CHAIRMAN HUDSON  announced the  next order  of business  was                 
  CSSB 362  (L&C), relating to  omnibus insurance reform.   He                 
  noted there is  a workdraft to the  bill dated May 7,  1994,                 
  which considers the technical amendments that were asked for                 
  and were supposed  to have been included in  the bill in the                 
  Senate.  Chairman Hudson He invited Commissioner Fuhs to the                 
  table to present the bill.                                                   
                                                                               
  Number 083                                                                   
                                                                               
  PAUL FUHS, Commissioner, Department of Commerce and Economic                 
  Development,  explained   that  the  "K"   version  contains                 
  technical  amendments  to the  original bill.   He  said the                 
  amendments were adopted  but committee  staff put the  wrong                 
  version before the committee  when the bill moved.   He said                 
  the bill has to do with  solvency of insurance companies and                 
  if they  are in financial  trouble, his department  wants to                 
  know so they can step in  and not end up with a  savings and                 
  loan situation.                                                              
                                                                               
  Number 097                                                                   
                                                                               
  DAVE WALSH,  Director, Division  of Insurance,  testified in                 
  favor  of SB  362.    He added  that  he  believes that  the                 
  amendments are technical,  but it is important that they are                 
  included  in the  bill.   The  amendments  provide for  more                 
  notice, more public  hearings, more  public exposure of  any                 
  changes to national models and regulations that may have  to                 
  be put in force.  He referred to the amendment that would go                 
  on page  20, line  26 and said  one thing  the bill  does is                 
  provide for continuing education rates.  Mr. Walsh said this                 
  is something that  the agents and  brokers are in favor  of.                 
  The  amendment  makes  sure  that  the division  takes  into                 
  account the difficulties  that people  have in rural  Alaska                 
  with attending  classes, etc.   He explained that  they have                 
  always intended to allow  credit for video tapes, etc.   The                 
  amendment  makes it clear that it  has to happen.  Mr. Walsh                 
  said he believes that everyone supports the bill.                            
                                                                               
  Number 125                                                                   
                                                                               
  REPRESENTATIVE MULDER moved for the  adoption of the HCSCSSB
  362 (L&C).  Hearing no objection, it was so ordered.                         
  Number 139                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if the version of the bill before                 
  the  committee provides  any  advantage  to  any  particular                 
  insurance agency or insurance service.                                       
                                                                               
  Number 147                                                                   
                                                                               
  COMMISSIONER  FUHS responded "no."   He added that the whole                 
  bill is supported by the insurance industry.                                 
                                                                               
  Number 154                                                                   
                                                                               
  REPRESENTATIVE  MULDER asked  what  the Chairman's  thoughts                 
  were in regards to entertaining debate on the subject of the                 
  "any willing provider" issue.                                                
                                                                               
  CHAIRMAN HUDSON  stated that  he intended  to move the  bill                 
  without any further amendments.                                              
                                                                               
  Number 175                                                                   
                                                                               
  REPRESENTATIVE PORTER made  a motion move HCSCSSB  362 (L&C)                 
  out  of  the   House  Labor  and  Commerce   Committee  with                 
  individual recommendations and a zero  fiscal note.  Hearing                 
  no objections, the motion carried.                                           
  Number 179                                                                   
                                                                               
  CHAIRMAN HUDSON adjourned the meeting at 11:37 a.m.                          

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