Legislature(1993 - 1994)
04/07/1993 09:20 AM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
April 7, 1993
9:20 a.m.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Robin Taylor
Senator Johnny Ellis
MEMBERS ABSENT
Senator Mike Miller, Vice Chairman
Senator Jim Duncan
COMMITTEE CALENDAR
SENATE BILL NO. 145
"An Act establishing the position of state medical examiner;
and relating to preparation of death certificates."
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 5
"An Act implementing an option available under federal law
to extend Medicaid eligibility to certain persons who are
eligible to be institutionalized but who are not in
institutions; relating to Medicaid waivers; reordering the
priorities assigned to groups of persons served under the
Medicaid program; and providing for an effective date."
SENATE BILL NO. 161
"An Act relating to interest rates and calculation of
interest under certain judgments and decrees and on refunds
of certain taxes, royalties, or net profit shares; and
providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 145 - See State Affairs minutes dated 4/5/93 and
4/7/93. See HESS minutes dated 4/12/93.
SB 5 - See HESS minutes dated 3/24/93 and State Affairs
minutes dated 4/7/93.
SB 161 - See State Affairs minutes dated 4/2/93 & 4/7/93.
See Judiciary minutes dated 4/14/93 and 4/20/93.
WITNESS REGISTER
Joe Winders
800 F St.
Juneau, AK 99801
POSITION STATEMENT: Supports passsage of SB 5
Portia Babcock, Staff to Senate State
Affairs Committee
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 161
Chris Christensen, Legal Counsel
Alaska Court System
303 K St.
Anchorage, AK 99501
POSITION STATEMENT: Offfered testimony on SB 161
Joe Geldhof, Assistant Attorney General
Department of Law
P.O. Box 110300
Juneau, AK 99801-0300
POSITION STATEMENT: Offered testimony on SB 161
ACTION NARRATIVE
TAPE 93-26, SIDE A
Number 001
Chairman Leman called the Senate State Affairs Committee
meeting to order at 9:20 a.m.
SENATOR LEMAN brought SB 145 (POSITION OF STATE MEDICAL
EXAMINER) before the committee as the first order of
business. He offered and moved the following amendment to
page 1, line 10: delete the word "physician" and insert in
its place "forensic pathologist." Hearing no objection, he
stated the amendment was adopted and would be incorporated
into a State Affairs CS.
Number 020
SENATOR ELLIS stated he has some concerns with the
legislation, but would not hold up its passing out of
committee.
Number 163
SENATOR TAYLOR moved and asked unanimous consent that CSSB
145(STA) be passed out of committee with individual
recommendations. Hearing no objection, it was so ordered.
SENATOR LEMAN brought SB 5 (MEDICAID FOR CERTAIN DISABLED
CHILDREN) before the committee as the next order of
business.
Number 183
SENATOR ELLIS said the legislation is the Medicaid option
bill that is sort of a safety net or backup to families that
won't be served through Project Choice with Medicaid
waivers.
JOE WINDERS, father of a severely handicapped child, stated
his strong support for passage of SB 5. He stressed the
need for the assistance the bill would provide to his family
because of the high costs incurred in taking care of their
handicapped child at home rather than having him
insitutionalized.
Number 200
SENATOR TAYLOR moved that SB 5 be passed out of committee
with individual recommendations. Hearing no objection, it
was so ordered.
Number 210
SENATOR LEMAN introduced SB 161 (INTEREST RATES: JUDGMENTS,
TAXES, ROYALTIES) as the final order of business, noting
there was a proposed committee substitute for the
committee's consideration.
SENATOR TYALOR moved that CSSB 161(STA) dated 4/6/93 be
adopted. Hearing no objection, it was so ordered.
Number 230
PORTIA BABCOCK, staff to the Senate State Affairs Committee,
explained that several changes discussed at the previous
hearing on SB 161 have been incorporated into the committee
substitute.
The first change was to page 1, line 7, changing the
language on judgment and decrees to make it clear that this
applied to the judgments that would come down on criminal
cases and civil cases.
On page 1, line 13, the major change was made in how the
interest rate would be calculated and determined. It was
determined that it would be easier for the court system to
have an annual interest rate that would apply throughout the
entire calendar year rather than trying to do several
calculations a year. The annual rate would be determined by
the Commissioner of Revenue.
Section 2 remains the same as in the last draft CS in which
an amendment requested by the Municipality of Anchorage was
incorporated.
On page 3, line 13, a new Section 5 has been added which
sets the overall state interest rate as the same as is set
out is Section 1.
Ms. Babcock said that since the current committee substitute
was drafted, an additional change has been suggested where
it references civil cases, both in prejudgment and post
judgment.
Number 286
SENATOR TAYLOR moved the following Amendment No. 1 to CSSB
161(STA):
Page 2, line 9: delete "in a civil case"
Page 3, lines 18, 20 &23: delete "in civil cases"
Hearing no objection, Amendment No. 1 was adopted.
Number 295
CHRIS CHRISTENSEN, Legal Counsel to the Judicial Branch,
said there was one problem still remaining with the bill and
that is the fact that they would be doing multiple
calculations. Currently, there is one rate of interest that
applies to prejudgment and postjudgment interest.
Mr. Christensen said the bill makes another philosophical
change. In non-tort cases, rather than having the interest
calculated from the date of the harm, it is calculated from
the date that the summons is served on the defendant. He
said the court always knows when the harm occurs when it is
in the complaint, but they never know when the defendant is
actually served.
Mr. Christensen said the court system's recommendation is to
have one rate of interest apply to both prejudgment and
postjudgment interest, to be calculated from the date of the
judgment. There was then discussion on a conceptual
amendment to make the recommended change.
SENATOR TAYLOR suggested on page 2 line 10, after the phrase
"prejudgment interest accrues from the date" add the word
"of" and delete rest of language up to "the entry of
judgment" on line 12.
Number 400
JOE GELDHOF, Assistant Attorney General, Department of Law,
said that while they would prefer the more frequent market
changes that were provided in the original bill, he thought
the legislation is a good sound compromise that meets the
needs of the court system and the administration agencies.
Mr. Geldof suggested amending the bill to reflect that when
the interest rate is determined by the Department of
Revenue, that interest rate be carried out to two decimal
points.
SENATOR LEMAN offered and moved a conceptual Amendment No. 2
to page 5, line 2, which would round off the interest rate
to the nearest 100th percent. Hearing no objection the
amendment was adopted.
CHRIS CHRISTENSEN referred to page 2, beginning at line 12
which contains language relating to how prejudgment interest
is calculated. He suggested that on line 14 adding language
which says "for the year when the initial summons was issued
to the first defendant."
There was extensive discussion on the proposed conceptual
amendments.
TAPE 93-26, SIDE B
Number 060
After further discussion, SENATOR LEMAN offered Amendment
No. 3 to page 2, line 14, to insert the word "initial"
before the word "summons" and insert the word "initial"
before the word "counter." Hearing no objection, Amendment
No. 3 was adopted.
Number 070
SENATOR TAYLOR offered Amendment #4 to page 2, line 10, to
read "prejudgment interest accrues from the date of harm or
injury" and to delete the remainder of line 11 and delete
all of line 12.
Number 073
SENATOR LEMAN asked, why, if this is already in current law,
it is necessary to insert it here. CHRIS CHRISTENSEN
answered that current law has it that way for everything
except torts.
Number 095
SENATOR TAYLOR moved adoption of Amendment #4. SENATOR
LEMAN objected. A hand voted was taken with the following
result: Senators Taylor and Ellis voted "Yea" and Senator
Leman voted "Nay." The Chair stated the motion had carried.
Number 108
SENATOR TAYLOR moved that CSSB 161(STA), as amended, be
passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
There being no further business to come before the
committee, the meeting was adjourned at 10:15 a.m.
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