Legislature(1993 - 1994)
04/06/1993 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
April 6, 1993
3:00 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chairman
Rep. Brian Porter
Rep. Eldon Mulder
Rep. Bill Williams
Rep. Jerry Mackie
Rep. Joe Sitton
MEMBERS ABSENT
None
COMMITTEE CALENDAR
*HCR 17: Relating to a health insurance pool established
for residents of the Kenai Peninsula Borough.
MOVED FROM COMMITTEE
HB 237: "An Act relating to marine pilot licensing and
tariffs."
MOVED FROM COMMITTEE
HB 12: "An Act relating to health insurance for small
employers; and providing for an effective date."
MOVED FROM COMMITTEE
(* First public hearing.)
WITNESS REGISTER
REP. GARY DAVIS
Alaska State Legislature
State Capitol
Juneau, Alaska 99801-1182
465-2693
Position Statement: Prime Sponsor of HCR 17
STAN STEDMAN, Executive Director
Kenai Peninsula Economic Development District, Inc.
110 S. Willow, Suite 106
Kenai, Alaska 99611
283-3335
Position Statement: Supported HCR 17
BOB LOHR, Executive Director
Alaska Public Utilities Commission
1016 W. 6th Ave., Suite 400
Anchorage, Alaska 99501-1963
276-6222
Position Statement: Testified as to APUC's role in HB 237
KARL LUCK, Director
Division of Occupational Licensing
Department of Commerce and Economic Development
P.O. Box 110806
Juneau, Alaska 99811-0806
465-2538
Position Statement: Testified HB 237
KATE TESAR
Alaska Coastwise Pilots
P.O. Box 2754
Juneau, Alaska 99802
463-5657
Position Statement: Testified on HB 237
MICHAEL SPENCE
Alaska Coastwise Pilots
P.O. Box 3040
Ketchikan, Alaska 99901
247-8382
Position Statement: Opposed HB 237
CHARLES BATES
Independent Contract Pilot
P.O. Box 210001
Auke Bay, Alaska 99821
789-3224
Position Statement: Testified on HB 237
REP. BETTYE DAVIS
Alaska State Legislature
State Capitol
Juneau, Alaska 99801-1182
465-3875
Position Statement: Prime Sponsor of HB 12
GORDON EVANS
Health Insurance Association of America
318 4th St.
Juneau, Alaska 99801
586-3210
Position Statement: Supported HB 12
HARLAN KNUDSON
Alaska State Hospital & Nursing Home Association
319 Seward St., #1
Juneau, Alaska 99801
586-1790
Position Statement: Supported HB 12
RESA JERREL, Lobbyist
National Federation of Independent Business
9159 Skywood Lane
Juneau, Alaska 99801
789-4278
Position Statement: Supported HB 12
PREVIOUS ACTION
BILL: HCR 17
SHORT TITLE: KENAI PENINSULA INSURANCE POOL
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) G.DAVIS
TITLE: Relating to a health insurance pool established for
residents of the Kenai Peninsula Borough.
JRN-DATE JRN-PG ACTION
03/24/93 760 (H) READ THE FIRST TIME/REFERRAL(S)
03/24/93 760 (H) LABOR & COMMERCE, HES, FINANCE
04/06/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 237
SHORT TITLE: MARINE PILOT LICENSING AND TARIFFS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) HUDSON,Phillips,Brice,
Sitton,Sanders
TITLE: "An Act relating to marine pilot licensing and
tariffs."
JRN-DATE JRN-PG ACTION
03/19/93 707 (H) READ THE FIRST TIME/REFERRAL(S)
03/19/93 707 (H) L&C, TRANSPORTATION, STA AFF,
FINANCE
03/30/93 (H) L&C AT 03:00 PM CAPITOL 17
04/01/93 (H) L&C AT 03:00 PM CAPITOL 17
04/01/93 (H) TRA AT 05:00 PM CAPITOL 17
BILL: HB 12
SHORT TITLE: GROUP HEALTH INS. FOR SMALL EMPLOYERS
BILL VERSION: SSHB 12
SPONSOR(S): REPRESENTATIVE(S) B.DAVIS,Ulmer,Nordlund,Brice
TITLE: "An Act relating to health insurance for small
employers; and providing for an effective date."
JRN-DATE JRN-PG ACTION
01/04/93 27 (H) PREFILE RELEASED
01/11/93 27 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 27 (H) HES, L&C, JUDICIARY, FINANCE
01/27/93 167 (H) COSPONSOR(S): NORDLUND
02/10/93 312 (H) COSPONSOR(S): BRICE
02/18/93 380 (H) SPONSOR SUBSTITUTE
INTRODUCED-REFERRALS
02/18/93 380 (H) HES, L&C, JUDICIARY, FINANCE
03/23/93 (H) HES AT 03:00 PM CAPITOL 106
03/23/93 (H) MINUTE(HES)
03/24/93 (H) HES AT 03:00 PM CAPITOL 106
03/24/93 (H) MINUTE(HES)
03/26/93 779 (H) HES RPT 4DP 1DNP 2NR
03/26/93 779 (H) DP: G.DAVIS, B.DAVIS, NICHOLIA,
BRICE
03/26/93 779 (H) DNP: VEZEY
03/26/93 779 (H) NR: BUNDE, TOOHEY
03/26/93 779 (H) -ZERO FISCAL NOTE (DCED) 3/26/93
03/31/93 (H) MINUTE(ECO)
04/06/93 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 93-34, SIDE A
Number 001
CHAIRMAN HUDSON called the House Labor and Commerce
Committee Meeting to order at 3:25 p.m. Members present
were Reps. Hudson, Porter, Green, Mulder, Williams and
Mackie.
HCR 17 KENAI PENINSULA INSURANCE POOL
REP. GARY DAVIS, PRIME SPONSOR of HCR 17, read the following
sponsor statement:
"The Legislature established a Health Resources and Access
Task Force in 1991. That Task Force submitted a final
report with recommendations to the Governor and the
Legislature in January 1993. The recommendations can be
found on page 2 of this resolution.
"The Kenai Peninsula Borough Economic Development District
has established a Kenai Peninsula Borough Health Care
Advisory Council to develop recommendations for a health
care plan for the Kenai Peninsula Borough. This plan is a
step in the right direction to address health care reform
issues. They would like to have the plan address health
care reform issues. They would like to have the plan
implemented as a model for other areas statewide. The Kenai
Peninsula Borough Health Care Advisory Council would like to
be recognized as a model regional area for pooling insurance
requirements, for establishing community rating for
insurance premiums, for developing small group insurance
regulatory reform measures, and for establishing a health
maintenance organization.
"HCR 17 requests that the Governor direct the Commissioner
of Health and Social Services assist the Kenai Peninsula
Borough Health Care Advisory Council in their pursuit of a
model region wide health access and basic care program."
Number 117
STAN STEDMAN, EXECUTIVE DIRECTOR, KENAI PENINSULA ECONOMIC
DEVELOPMENT DISTRICT and CO-CHAIR of the HEALTH CARE
ADVISORY COUNCIL, testified in support of HCR 17. Mr.
Stedman pointed out that in the packet he included an
overview of the project and was available to answer
questions.
MR. STEDMAN stated that his group's primary goal would be to
make available affordable health insurance to all residents,
which would thereby increase access and utilization of the
local health care system.
Number 229
REP. PORTER asked if this project would provide insurance to
some of the people who don't have insurance.
Number 235
ME. STEDMAN stated that this project would provide insurance
to a certain number of persons who currently don't have
insurance. Mr. Stedman added that it would not be feasible
to cover everyone at this time.
Number 250
CHAIRMAN HUDSON asked if this program would be all
voluntary.
MR. STEDMAN replied that it would.
Number 253
CHAIRMAN HUDSON noted that the information states that they
will access revenue bonding capabilities and asked what some
of the expenses would be anticipated that would require
raising millions of dollars. He asked if the group was
anticipating building clinics, etc.
Number 268
MR. STEDMAN answered that they would be just capitalizing
against risk.
Number 278
REP. GREEN asked if this concept was like a cooperative and
what would prevent this organization from going under
because of too many high risk persons joining.
MR. STEDMAN stated that it was a complex issue and the
project was being constantly worked on to be cost
competitive.
Number 296
REP. MACKIE moved for passage of HCR 17 with individual
recommendations and a zero fiscal note.
No objections were heard; it was so ordered.
HB 237 MARINE PILOT LICENSING AND TARIFFS
Number 310
CHAIRMAN HUDSON stated that this bill was crafted to try to
solve some of the problems within marine pilotage.
CHAIRMAN HUDSON offered amendment 1, moving some of the
authority to the APUC (Alaska Public Utilities Commission).
REP. MACKIE moved amendment 1 drafted by Lauterbach.
Number 350
BOB LOHR, EXECUTIVE DIRECTOR, ALASKA PUBLIC UTILITIES
COMMISSION, testified from Anchorage via teleconference in
reference to amendment 1.
MR. LOHR stated that the commission adopted a position paper
regarding the transfer of the authority to set the number of
pilots per region to the APUC. He said the APUC believes
that the authority should stay with the board and not
transfer to APUC. The commission does not believe it has
the expertise to undertake this mission.
Number 395
KARL LUCK, DIRECTOR, OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT, testified that the
composition of the pilot board would make the selection of a
set number of pilots per region very political with very
little, if any, analytical determination made.
MR. LUCK stated that the whole idea behind the amendment was
to remove the process from the board, which is primarily
made up of pilots.
REP. MACKIE asked what the makeup was of the Board of Marine
Pilots.
MR. LUCK answered that there are two public members, two
pilots, two agents, and a representative of the commissioner
of Commerce.
Number 433
REP. MACKIE asked Mr. Lohr, if the information were
presented to the APUC from the Board of Marine Pilots
regarding setting the number of applicants needed to pilot
the ships in the state, could the commission handle it?
Number 447
MR. LOHR answered that the commission was not unwilling to
handle the job, but after talking to other states'
commission's, it was felt that the commission does not have
the expertise to adequately handle the task's involved.
Number 460
REP. MACKIE commented that the commission has handled other
complicated and controversial tasks, so why would this be
any different.
Number 477
MR. LOHR reiterated the commission's position that it is not
in a position to adequately handle this process.
Number 483
MR. LUCK added that right now there are six pilot
organizations in the state and only two are represented on
the board.
Number 495
CHAIRMAN HUDSON asked Mr. Luck what his opinion was on
amendment 2 offered by the Alaska Coastwise Pilots that
would amend the composition of the board membership.
Number 508
MR. LUCK responded that this amendment would not be the
answer to the problem of seating a fair and representative
board.
Number 557
CHAIRMAN HUDSON stated that he still believes the APUC is
the best impartial entity to establish the limits needed for
marine pilotage. Chairman Hudson said he understands that
the commission will need some extra funds to create and
development the expertise needed to tackle this task.
Number 606
REP. MACKIE moved amendment 1 by Chairman Hudson.
Discussion continued on amendment 1.
TAPE 93-34, SIDE B
Number 185
Amendment 1 was adopted conceptually. The committee
intended that the amendment say that the Board of Marine
Pilots, by regulation, shall set the criteria that will be
used by the board to issue pilot licenses in a region where
the number of qualified applicants for licensing, when added
to the number of pilots already licensed for the region,
exceeds the number of pilots determined to be needed for
that region under AS 08.62.047. (The APUC shall set the
actual limits of total number of marine pilots per region.)
Number 200
CHAIRMAN HUDSON directed committee staff to work with Legal
Services to word the amendment to fit in the bill as
intended.
Conceptual amendment 1 was adopted.
Number 248
KATE TESAR, representing the ALASKA COASTWISE PILOTS,
testified on amendment 2. She said this amendment dealt
with the creation and membership of the Board of Marine
Pilots. Ms. Tesar stated that this amendment grew from a
joint meeting with members of various marine pilot
organizations, Chairman Hudson's staff and Director Luck.
The amendment was proposed to alleviate any perceived
conflict of interest on the board.
Number 280
REP. MACKIE stated he feels strongly that board appointments
are an administrative function that the legislature should
not tamper with.
Number 304
CHAIRMAN HUDSON stated he opposed the amendment.
REP. MACKIE moved amendment 2.
Amendment 2 failed by voice vote.
Number 330
MS. TESAR testified that amendment 3 would conceptually
disallow anyone anywhere in the state from limiting the
number of pilots in the state.
CHAIRMAN HUDSON ruled amendment 3 out of order.
Number 391
MS. TESAR testified on amendment 4. Ms. Tesar explained
that this amendment would provide for independent, impartial
and unbiased examiners not employed by, or affiliated with,
or past or present members of, any pilot organization in the
state.
Number 406
MR. LUCK said he opposed this amendment as written on the
grounds that it would not be practicable to bring in out-of-
state examiners to do the job that he believed the Board of
Marine pilots could handle.
Number 425
CHAIRMAN HUDSON suggested that the amendment be modified to
delete the reference of who would give the exam and just
state that it be independent, impartial and unbiased.
Number 439
MS. TESAR said Alaska Coastwise Pilots does not believe one
organization should be administering and grading others'
exams.
Number 467
REP. PORTER moved amendment 4 as amended.
Number 475
MS. TESAR testified that amendment 5 would allow the APUC to
set a maximum tariff that may be charged by pilots and not
fixed tariffs as specified in the bill.
MS. TESAR stated that HB 237 as written does not take into
account safety records or experience. The bill takes away
any competition among marine pilots.
Number 485
CHAIRMAN HUDSON stated he believes HB 237 as written will
encourage industry to hire on performance alone.
REP. PORTER moved amendment 5.
REP. MACKIE objected.
Amendment 5 failed.
Number 535
REP. WILLIAMS moved amendment 8.
Number 537
MS. TESAR spoke to amendment 8. Ms. Tesar stated that this
amendment would establish by regulation the maximum number
of pilots to be licensed in a region based on the number
needed to assure the safety of human life and property. The
number of pilots to be licensed in a region shall not be
less than the number of pilots licensed for that region in
1990.
Number 550
MR. LUCK spoke against the amendment stating that the 1990
figures would not represent any kind of analytical data that
would be representative of what would be needed.
Amendment 8 failed.
Number 617
MICHAEL SPENCE, ALASKA COASTWISE PILOTS, testified from
Ketchikan on amendment 6. Mr. Spence noted that this
amendment would change the entry requirements for deputy
marine pilots.
TAPE 93-35, SIDE A
CHAIRMAN HUDSON ruled amendment 6 out of order since it did
not pertain to HB 237 before the committee.
Number 075
MR. LUCK stated that the marine pilot board addressed this
issue and they were adamantly opposed to it. The board felt
that this was a major retreat from the present entry level
requirements.
Number 170
REP. MACKIE stated he would not feel comfortable addressing
this amendment now since it would change the existing
statute and it was complex in nature.
Number 185
CHAIRMAN HUDSON ruled that committee staff, division staff,
and members of Alaska Coastwise Pilots work on this
amendment.
Number 200
MR. SPENCE addressed amendment 7, the nondiscrimination
clause, and stated that it is not presently in the marine
pilot statute.
MR. SPENCE noted that in the 22 years of regulating
pilotage, the state of Alaska has never issued a license to
an ethnic minority or to a gender minority.
Number 211
MR. LUCK expressed concern that this would place a
requirement on one board and might indicate a problem that
the board has been discriminatory in the past.
Number 239
REP. MACKIE pointed out that this amendment was not drawn up
by the legal section and he would like to see an opinion
that it does not just duplicate some other statute.
CHAIRMAN HUDSON noted that he looked favorably on anti-
discrimination efforts, but suggested that this amendment be
amended to delete section c, which would require the board
to report annually.
Number 273
CHAIRMAN HUDSON ordered staff to work with legal on this
issue and make recommendations to the next committee.
Amendment 7 was withdrawn.
Number 293
CAPTAIN CHARLES BATES, INDEPENDENT CONTRACT PILOT, spoke to
amendment 9. He said this amendment would require proof to
the board that a pilot engaged in piloting vessels over 1000
gross tons, including vessels of the Alaska Marine Highway.
Number 347
MR. LUCK testified that this amendment would be a major
change to the current statutes. Mr. Luck pointed out that
the Alaska Ferry's don't necessarily travel the same routes
as the cruise ships. The current requirements give credit
for piloting ferry ships, but also require pilots to cover
certain routes to be licensed.
Number 441
CHAIRMAN HUDSON set aside amendment 9.
MR. LOHR offered some amendments to HB 237.
Chairman Hudson asked him to send the amendments down and
instructed staff to work them into the bill with the legal
drafter.
Number 564
REP. MACKIE moved for passage of CSHB 237(L&C) with zero
fiscal note and asked unanimous consent.
No objections were heard; it was so ordered.
HB 12 GROUP HEALTH INS. FOR SMALL EMPLOYERS
REP. BETTYE DAVIS, PRIME SPONSOR of HB 12, read her sponsor
statement. Rep. Davis stated that SSHB 12 promotes the
availability of health insurance coverage for small
employers and reforms the small employer health insurance
market. Based on model legislation drafted by the National
Association of Insurance Commissioners, SSHB 12 would
improve the overall fairness and efficiency of the small
employer health insurance market.
Number 611
GORDON EVANS, representing the Health Insurance Association
of America, testified in support of SSHB 12. Mr. Evans
stated that HB 12 was supported by the Health Care Task
Force and has been adopted by 24 states.
TAPE 93-35, SIDE B
Number 015
HARLAN KNUDSON, representing the ALASKA STATE HOSPITAL &
NURSING HOME ASSOCIATION, testified in support of HB 12.
MR. KNUDSON stated that HB 12 would fit into the National
Health reform.
Number 030
RESA JERREL, representing the NATIONAL FEDERATION OF
INDEPENDENT BUSINESS, testified in support of HB 12. Ms.
Jerrel stated that health insurance was a number one
priority for business across the states.
Number 040
REP. MACKIE moved to consolidate the two amendments offered
by Rep. Davis and to pass them.
No objections were heard, the amendments were adopted.
Number 057
REP. PORTER moved to pass SSHB 12 as amended with individual
recommendations.
No objections were heard; it was so ordered.
CHAIRMAN HUDSON adjourned the meeting at 6:04 p.m.
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