SB 52-PORTABLE ELECTRONICS INSURANCE  2:25:00 PM CHAIR DUNLEAVY reconvened the meeting and announced the consideration of SB 52. "An Act providing that portable electronics insurance is not a service contract; providing that a portable electronics manufacturer's warranty or extended warranty is not regulated as insurance; relating to portable electronics insurance; authorizing the director of insurance to issue a limited producer license to a portable electronics vendor for the sale of portable electronics insurance; and relating to authorization and training of employees and representatives of a vendor to transact portable electronics insurance; and providing for an effective date." [CSSB 52, labeled 28-LS0461\N, was before the committee.] This was the second hearing. 2:25:16 PM KARI NORE, Intern, Senator John Coghill, sponsor of SB 52, recapped for the committee that SB 52 seeks to bring regulation to the booming portable electronics industry, and was requested by companies that sell these portable electronics. She noted that there were three amendments for the committee to consider. 2:26:27 PM At ease 2:26:53 PM CHAIR DUNLEAVY reconvened the meeting and recognized Ms. Moss. 2:27:05 PM RYNNIEVA MOSS, Staff, Senator John Coghill, sponsor of SB 52, explained that the proposed amendments were prepared after discussions with legislative attorneys and representatives of the electronics companies. The sponsor wants to clarify in statute that consumers have three options to protect portable electronics: a service contract, a warranty, or portable electronics insurance. She noted that Senator Micciche agreed to carry the amendments and Ms. Nore would explain them. 2:28:08 PM MATTHEW NOWELS, Attorney, Blank & Meenan, P.A., representing Assuring, a primary provider of this produce nationwide offered to answer questions. CHAIR DUNLEAVY found no questions and closed public testimony. 2:28:48 PM SENATOR MICCICHE moved Amendment 1, labeled 28-LS0461\N.2. AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR COGHILL TO: CSSB 52( ), Draft Version "N" Page 6, line 9, following "AS 21.36.515 Insert "and" Page 6, lines 9-16: Delete all material. Page 6, line 17: Delete "(iv)" Insert "(iii)" SENATOR STEDMAN objected for discussion purposes. MS. NORE explained the purpose of the amendment is to remove sub-subparagraph (iii). The director of the Division of Insurance initially requested this provision because he felt there was a possibility that enforcement would be difficult because there was no registry. It was later determined that the division has the authority without this provision. MS. MOSS added that both the industry and the Division of Insurance agreed this was not needed. SENATOR STEDMAN removed his objection. 2:30:03 PM At ease 2:30:13 PM CHAIR DUNLEAVY found no further objection and announced that Amendment 1 was adopted. 2:30:32 PM SENATOR MICCICHE moved Amendment 2, labeled 28-LS0461\N.3. AMENDMENT 2 OFFERED IN THE SENATE BY SENATOR COGHILL TO: CSSB 52( ), Draft Version "N" Page 2, line 9: Delete "damaged by power surges" SENATOR STEDMAN objected for discussion purposes. MS. NORE explained that this amendment came at the request of Apple Electronics. It broadens the language under service contracts, which now is restricted to damages done by power surges, not accidental damage. She noted that the sponsor believes this potentially is a drafting error in the original statutes. MS. MOSS added that legislative legal agrees that this phrase probably was a drafting error when the statute was adopted originally. SENATOR STEDMAN removed his objection. CHAIR DUNLEAVY found no further objection and announced that Amendment 2 was adopted. 2:31:50 PM SENATOR MICCICHE moved Amendment 3, labeled 28-LS0461\N.4. AMENDMENT 3 OFFERED IN THE SENATE BY SENATOR COGHILL TO: CSSB 52( ), Draft Version "N" Page 2, line 2, following "property,": Insert "including portable electronics," Page 2, line 7, following "property": Insert ", including portable electronics," SENATOR STEDMAN objected for discussion purposes. MS. NORE explained that this amendment allows portable electronics to be considered as tangible personal property and be included under service contracts. MS. MOSS noted that legislative legal didn't think this was necessary, but the industry wanted it perfectly clear that it continues to have the ability to offer service contracts. SENATOR STEDMAN removed his objection. CHAIR DUNLEAVY found no further objection and announced that Amendment 3 was adopted. 2:33:05 PM SENATOR MICCICHE moved to report SB 52, 28-LS0461\N as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR DUNLEAVY announced that without objection CSSB 52(L&C) moved from the Senate Labor and Commerce Standing Committee.