Legislature(1997 - 1998)
04/21/1997 09:10 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
21 April 1997
9:10 a.m.
TAPES
SFC-97, #117, Side 1 (000 - 591)
117, Side 2 (591 - 000)
118, Side 1 (000 - 166)
CALL TO ORDER
Senator Bert Sharp, Co-chair, convened the meeting at
approximately 9:10 a.m.
PRESENT
In addition to Co-chair Sharp, Senators Pearce, Donley,
Torgerson and Adams were present when the meeting convened.
Senator Parnell arrived shortly thereafter and Senator
Phillips arrived at 10:35 a.m.
ALSO ATTENDING: Representative Con Bunde; Nancy Buell,
Director, Teaching and Learning Support, Department of
Education; Marilyn Wilson, staff to Senator Bert Sharp;
Marianne K. Burke, Director, Division of Insurance,
Department of Commerce and Economic Development; and aides
to committee members and other legislators.
via Teleconference: Randy Simmons, Executive Director,
AIDEA; Tom Stahr, Municipal Light and Power, Anchorage; Norm
Story, Homer Electric; and Don Edwards, Chugach Electric.
SUMMARY INFORMATION
CS FOR HOUSE BILL NO. 145(HES)
"An Act relating to certification of teachers."
Representative Con Bunde was invited to join the committee.
He said this bill would provide quality control over
teachers.
(There was a malfunction of the recording equipment between
log numbers 000 - 062.)
Senator Adams asked who would administer the necessary
testing that would be required. Representative Bunde
indicated that the Department of Education would administer
the testing and it would be paid for by the applicant.
Senator Torgerson asked if this would apply only to new
hires and Representative Bunde indicated this was correct.
Nancy Buell, Director, Teaching and Learning Support,
Department of Education was invited to join the committee.
She said all teachers would need teacher certificates and
they must meet current requirements. Senator Donley said he
did not want any more restrictions to be applied other than
what the department was already applying. He asked what the
cost of the license would be and Ms. Buell responded saying
that the department did not know the cost to the applicant
at this point. Senator Pearce said she thought for most
programs in the State the licensee covered their own costs
and why should the State bear this burden. Ms. Buell said
the cost of certification in Alaska was the highest in the
nation. It would need a long term plan to be defined.
Senator Pearce asked if the State was subsidizing to a
lesser degree than others and Ms. Buell indicated that some
states were not charging at all. Representative Bunde said
it was the sponsor's intent for this program to be self
supporting.
Senator Parnell inquired if any certificate had been
suspended for incompetency and Ms. Buell said that most
likely there had been some suspended but she did not have
any details.
Senator Pearce requested the bill be held in committee
pending further discussion with the department and it was so
ordered by co-chair Sharp.
SENATE BILL NO. 175
"An Act relating to revenue bonds issued by the Alaska
Industrial Development and Export Authority for
interties between Healy and Fairbanks and between
Anchorage and the Kenai Peninsula; and providing for an
effective date."
Co-chair Sharp introduced SB 175. Marilyn Wilson, staff to
Senator Sharp was invited to join the committee and read the
sponsor statement into the record.
Randy Simmons, Executive Director, AIDEA, Department of
Commerce and Economic Development testified via
teleconference from Anchorage. He said AIDEA supported the
bill.
Tom Stahr, general manager, municipal light and power,
Anchorage; Norm Story, Homer Electric, Homer; and Don
Edwards, general counsel for Chugach Electric testified via
teleconference from Anchorage. All three voiced their
support for the bill.
Senator Pearce moved SB 175 with individual recommendations
and zero fiscal note. Without objection, Co-chair Sharp
reported out SB 175 with individual recommendations and zero
fiscal note from Department of Commerce and Economic
Development.
CS FOR SENATE BILL NO. 104(L&C)
"An Act relating to regulation and examination of
insurers and insurance agents; relating to kinds of
insurance; relating to payment of insurance taxes and to
required insurance reserves; relating to insurance
policies; relating to regulation of capital, surplus,
and investments by insurers; relating to hospital and
medical service corporations; and providing for a n
effective date."
Senator Pearce introduced SB 104 and referred to the work
draft version O-LS0407\H dated 4/14/97. She moved the
version be adopted for discussion purposes. Senator Donley
objected and said he wanted to know what was in the bill.
Co-chair Sharp said he would hold it pending before the
committee and would take testimony at this time. Senator
Pearce noted for the committee that there was a sectional
analysis in each file.
Marianne K. Burke, Director, Division of Insurance,
Department of Commerce and Economic Development was invited
to join the committee. She gave a brief overview of the
bill and then answered questions posed by the committee
members. She said this bill would make sure the rules for
all insurance companies would be the same. It was proposed
that the requirements for the certificate of solvency be
removed. She referred briefly to the Kassebaum-Kennedy bill
passed in U.S. Congress. She said wherever there was a
conflict the federal regulations were adopted. Consumer
groups were in favour of this bill. Senator Donley asked
which sections dealt specifically with Kassebaum-Kennedy and
she noted they were sections 3, 11, 12, 31 - 34, and 43 -
57. These would adopt the minimum standards required under
federal law. She further said people did not buy insurance
and pay premiums in anticipation of illness. Senator Donley
asked if there were specific conditions for specific
coverages. Ms. Burke indicated that section 59 would
eliminate barriers to compliance. She further explained
that if an individual changed their job or terminated a new
insurance company could not start individual coverage all
over again. A grace period of 90 days was allowed between a
break and reinstatement. Senator Donley asked about
individual health insurance and Ms. Burke said it was
decided by age and deductible not health. He further
referred to section 92 and she said this section was
requested by title insurance. She explained the elements of
title insurance that made it unique. Co-chair Sharp asked
what about those who chose not to live a healthy life style
(tobacco, alcohol, drugs, etc.) and Ms. Burke said there was
not a concern for life style. Unfortunately the costs of
unhealthy life styles were passed on to others. But she did
note that high risk groups were not cheap. She further
noted that alcohol and drugs were covered under the mental
health provision. Alaska companies can set limits for drug
and alcohol at approximately $9,500 per year. Senator
Donley asked how the state viewed rates and Ms. Burke said
there was no influence and they adopted only the minimum
requirements. There was one section concerning small
employers and it was proposed not to sunset next year.
Senator Donley requested this bill be held over. He removed
his objection to the work draft and said he would have some
amendments drafted.
Michael Lessmeier, Esq. was invited to join the committee.
He testified on behalf of State Farm insurance co. He asked
the 10 year record requirement on page 4, line 29 be lowered
to 5 years of record keeping.
Co-chair Sharp asked that any amendments be handed in to the
Senate Finance Committee Secretary within the next twenty-
four hours and held the bill in committee. Senator Adams
noted the title was open.
SENATE BILL NO. 177
"An Act relating to the international trade and
business endowment; and providing for an effective date."
Senator Pearce commented on behalf of this bill. She said
there was no hidden agenda. The balance of the endowment
was at about $7 million and they would transfer the original
$4.5 million, leaving the interest and balance in the
University foundation. She noted there would be forthcoming
fiscal notes from the University and Commerce. Senator
Pearce moved SB 177 contingent upon receipt of fiscal notes
and letters from the University and Department of Commerce.
Without objection it was reported out with individual
recommendations and contingent upon receipt of fiscal notes
and letters.
Co-chair Sharp outlined the evening meeting saying the
committee would take up HB 51.
ADJOURNMENT
Co-chair Sharp recessed the committee until 6:00 p.m. this
evening.
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