Legislature(2011 - 2012)FAHRENKAMP 203
04/14/2012 08:00 AM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB219 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | HB 219 | ||
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 14, 2012
8:04 a.m.
MEMBERS PRESENT
Senator Donald Olson, Chair
Senator Thomas Wagoner
Senator Linda Menard
MEMBERS ABSENT
Senator Albert Kookesh
Senator Johnny Ellis
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 219(STA)
"An Act exempting certain activities of ambulance, emergency,
and fire department services from regulation as insurance."
- MOVED CSHB 219(STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 219
SHORT TITLE: FIRE AND EMERGENCY MEDICAL SERVICES
SPONSOR(s): REPRESENTATIVE(s) FEIGE
03/31/11 (H) READ THE FIRST TIME - REFERRALS
03/31/11 (H) CRA, STA
02/16/12 (H) CRA AT 8:00 AM BARNES 124
02/16/12 (H) Heard & Held
02/16/12 (H) MINUTE(CRA)
03/01/12 (H) CRA AT 8:00 AM BARNES 124
03/01/12 (H) Moved Out of Committee
03/01/12 (H) MINUTE(CRA)
03/02/12 (H) CRA RPT 3DP 3NR
03/02/12 (H) DP: AUSTERMAN, DICK, FOSTER
03/02/12 (H) NR: SADDLER, GARDNER, MUNOZ
03/15/12 (H) STA AT 8:00 AM CAPITOL 106
03/15/12 (H) Heard & Held
03/15/12 (H) MINUTE(STA)
03/20/12 (H) STA AT 8:00 AM CAPITOL 106
03/20/12 (H) Moved CSHB 219(STA) Out of Committee
03/20/12 (H) MINUTE(STA)
03/21/12 (H) STA RPT CS(STA) NT 5DP 1NR
03/21/12 (H) DP: KELLER, GRUENBERG, SEATON,
PETERSEN, LYNN
03/21/12 (H) NR: JOHANSEN
04/04/12 (H) TRANSMITTED TO (S)
04/04/12 (H) VERSION: CSHB 219(STA)
04/06/12 (S) READ THE FIRST TIME - REFERRALS
04/06/12 (S) CRA, STA
04/12/12 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
04/12/12 (S) Bills Previously Heard/Scheduled
04/14/12 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE ERIC FEIGE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Prime sponsor of HB 219.
LINDA HALL, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified that DCCED did not oppose HB 219.
ACTION NARRATIVE
8:04:42 AM
CHAIR DONALD OLSON called the Senate Community and Regional
Affairs Standing Committee meeting to order at 8:04 a.m. Present
at the call to order were Senators Menard, Wagoner and Chair
Olson.
HB 219-FIRE AND EMERGENCY MEDICAL SERVICES
8:04:53 AM
CHAIR OLSON announced the consideration of HB 219.
8:04:57 AM
REPRESENTATIVE ERIC FEIGE, Alaska State Legislature, prime
sponsor of HB 219, introduced the bill by stating the following:
House Bill 219 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 equipment or
repairing a building, but money is very rarely
available for operating expenses.
HB 219 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 many communities the power to levy taxes provides
sufficient funding to operate these departments. When
it doesn't, or when it isn't an option, organizations
turn to other sources for money - sometimes it's 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 they take even more of
the emergency volunteers' time, time they need to
spend training and responding to emergencies.
Donations are also 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 encourage people 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
regulations.
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. [This is] hardly feasible for a few
people in a remote village who want to create a
service that takes those that are sick or injured to
the local clinic. The alternative [is] hope that
somebody comes along that can take them [to the
clinic]. If you just charge the individual for the
service, it's not a problem. But if you ask for money
upfront to keep gas in the ambulance and the station
heated, in exchange for not charging the individual if
you come to a system, it's considered insurance, and
subject to all of 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. In some areas you might hear
it referred to as a subscription department. In a
subscription department, you pay in advance to receive
the service and then receive a discount on costs if
you use the service. If the service then provides
assistance to someone who has not paid the
subscription and charges the person, the organization
is providing insurance to those that paid a
subscription.
This bill does only one thing. It exempts
municipalities and community nonprofit organizations
engaged in emergency services from insurance
regulation if they receive money in advance and then
don't charge for services offered to those that give
donations. You can help by moving HB 219 to exempt
those organizations from regulation by the Department
of Insurance.
8:08:44 AM
CHAIR OLSON asked where the idea came from that [subscription
sales by fire departments] is considered insurance.
8:09:25 AM
REPRESENTATIVE FEIGE said he didn't know but it falls under the
statutory definition of insurance if a department receives money
for services that may be provided. Thus, it is subject to the
regulation.
8:09:46 AM
CHAIR OLSON asked if anyone was against the bill.
REPRESENTATIVE FEIGE answered not at this point.
8:10:04 AM
LINDA HALL, Director, Division of Insurance, Department of
Commerce, Community, and Economic Development, noted that the
bill packets included a letter from the Division of Insurance
that may answer some questions, but the definition of
"insurance" in Title 21 is very broad. Accepting money for a
transfer of risk is considered insurance.
CHAIR OLSON asked the thinking behind that because it appeared
to be causing trouble, especially in smaller communities.
8:11:23 AM
MS. HALL answered that it was an unintended consequence when the
definition of insurance was written and adopted by the
legislature. It's a common definition in other states, and there
was probably no intention to pick up things like subscription
sales by fire departments. The bill provides an exemption for
that action.
8:12:12 AM
CHAIR OLSON asked if the administration supported the
legislation.
MS. HALL answered the division was not opposed to the
legislation.
SENATOR MENARD asked how many other states had adopted this
definition and if it was common practice in the Lower 48.
MS. HALL said either 17 or 27 states have adopted a waiver for
medical transport. She said she wasn't aware of any states that
had adopted a waiver for the fire department subscription
service, but Alaska probably had more small, volunteer fire
departments than many other states.
8:13:28 AM
CHAIR OLSON closed public testimony.
8:14:25 AM
At ease from 8:14:25 to 8:14:38.
8:14:38 AM
CHAIR OLSON asked Representative Feige if he had any closing
comments.
REPRESENTATIVE FEIGE disclosed that he was fire chief of a
department that would be affected by the bill, and there were
several other departments within his district that were engaged
in this type of activity.
CHAIR OLSON asked for assurance that he was able to carry the
bill without compromising himself.
REPRESENTATIVE FEIGE responded that he declared a conflict on
the House floor and he did not believe he was compromised.
8:15:32 AM
SENATOR MENARD moved to report CS for HB 219, version E, from
committee with individual recommendations and attached fiscal
note(s).
8:15:47 AM
SENATOR WAGONER objected to discuss the fact that the bill was
not brought in front of the committee.
CHAIR OLSON countered that the bill was before the committee.
8:15:59 AM
At ease from 8:15 a.m. to 8:17 a.m.
8:17:05 AM
CHAIR OLSON asked if there was objection to the motion on the
floor to report HB 219 from committee. Finding no further
objection, he announced that CSHB 219(STA) moved out of the
Senate Community and Regional Affairs Standing Committee.
8:17:15 AM
CHAIR OLSON recessed the Senate Community and Regional Affairs
Standing Committee meeting [to a call of the chair].
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