HOUSE LABOR AND COMMERCE STANDING COMMITTEE MAY 8, 1994 8:40 P.M. MEMBERS PRESENT Representative Bill Hudson, Chairman Representative Eldon Mulder Representative Bill Williams Representative Brian Porter MEMBERS ABSENT Representative Joe Green, Vice-Chairman Representative Joe Sitton Representative Jerry Mackie COMMITTEE CALENDAR SENATE BILL NO. 213 "An Act extending the Alaska Public Utilities Commission and the regulatory cost charge." SENATE BILL NO. 362 "An Act relating to insurance, to the licensing, accreditation, examination, regulation, and solvency of persons engaged in the insurance business, including insurers, nonadmitted insurers, purchasing groups, risk retention groups, and United States branches of alien insurers; relating to the management of and the filing of reports by persons licensed or otherwise doing business under the insurance code; amending Alaska Rule of Civil Procedure 45; and providing for an effective date." WITNESS REGISTER PAUL FUHS, Commissioner Department of Commerce and Economic Development P.O. Box 110800 Juneau, Alaska 99811-0800 465-2500 POSITION STATEMENT: Supported SB 362 DAVE WALSH, Director Division of Insurance P.O. Box 110805 Juneau, Alaska 99811-0805 465-2515 POSITION STATEMENT: Supported SB 362 PREVIOUS ACTION BILL: SB 213 SHORT TITLE: APUC EXTENSION AND SPONSOR(S): LABOR & COMMERCE JRN-DATE JRN-PG ACTION 05/07/93 2113 (S) READ THE FIRST TIME/REFERRAL(S) 05/07/93 2113 (S) LABOR & COMMERCE, JUDICIARY, FINANCE 02/08/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 02/08/94 (S) MINUTE(L&C) 02/24/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 02/24/94 (S) MINUTE(L&C) 03/08/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 03/08/94 (S) MINUTE(L&C) 03/10/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 03/10/94 (S) MINUTE(L&C) 03/15/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 03/15/94 (S) MINUTE(L&C) 03/16/94 3238 (S) L&C RPT CS 3DP 1NR NEW TITLE 03/16/94 3238 (S) ZERO FN TO SB & CS PUBLISHED (DCED) 03/30/94 (S) JUD AT 01:30 PM BELTZ ROOM 211 04/11/94 3550 (S) JUD RPT CS 2DP 2NR NEW TITLE 04/11/94 3550 (S) PREVIOUS ZERO FN APPLIES TO CS (DCED) 04/18/94 (S) FIN AT 09:00 AM SENATE FINANCE 518 04/19/94 (S) FIN AT 08:15 AM SENATE FINANCE 518 04/19/94 3777 (S) FIN RPT CS 5DP 1NR 04/19/94 3777 (S) FN TO CS PUBLISHED (DCED) 04/19/94 3777 (S) ZERO FN TO CS PUBLISHED (REV) 04/20/94 (S) RLS AT 06:45 PM FAHRENKAMP ROOM 203 04/29/94 4109 (S) RLS RPT 2CAL 2NR 4/29/94 04/29/94 4130 (S) READ THE SECOND TIME 04/29/94 4130 (S) FIN CS ADOPTED Y11 N9 04/29/94 4131 (S) AM NO 1 MOVED BY KELLY 04/29/94 4131 (S) AM NO 1 ADOPTED UNAN CONSENT 04/29/94 4131 (S) ADVANCE TO THIRD READING FAILED Y11 N9 04/29/94 4131 (S) THIRD READING 5/2 CALENDAR 05/02/94 4240 (S) AUTOMATICALLY IN THIRD READING 05/02/94 4240 (S) READ THE THIRD TIME CSSB 213(FIN) AM 05/02/94 4240 (S) RETURN TO SECOND FOR AM 2 UNAN CONSENT 05/02/94 4240 (S) AM NO 2 MOVED BY DONLEY 05/02/94 4240 (S) AM NO 2 FAILED Y5 N15 05/02/94 4241 (S) AUTOMATICALLY IN THIRD READING 05/02/94 4241 (S) FAILED PASSAGE Y9 N11 05/02/94 4241 (S) Ellis NOTICE OF RECONSIDERATION 05/03/94 4265 (S) RECON TAKEN UP - IN THIRD READING 05/03/94 4266 (S) PASSED ON RECONSIDERATION Y11 N9 05/03/94 4266 (S) EFFECTIVE DATE FAILED Y13 N7 05/03/94 4302 (S) TRANSMITTED TO (H) 05/05/94 4019 (H) READ THE FIRST TIME/REFERRAL(S) 05/05/94 4019 (H) L&C, STATE AFFAIRS, FINANCE 05/08/94 (H) L&C AT 08:30 PM CAPITOL 17 BILL: SB 362 SHORT TITLE: OMNIBUS INSURANCE REFORM SPONSOR(S): LABOR & COMMERCE BY REQUEST JRN-DATE JRN-PG ACTION 03/18/94 3268 (S) READ THE FIRST TIME/REFERRAL(S) 03/18/94 3269 (S) L&C, JUD 03/29/94 (S) L&C AT 01:30 PM FAHRENKAMP ROOM 203 03/29/94 (S) MINUTE(L&C) 04/05/94 3447 (S) L&C RPT CS 2DP 1NR SAME TITLE 04/05/94 3447 (S) ZERO FN TO SB & CS PUBLISHED (DCED) 04/11/94 (S) JUD AT 01:30 PM BELTZ ROOM 211 05/02/94 4211 (S) JUD RPT 1DP 2NR (L&C)CS 05/02/94 4211 (S) PREVIOUS ZERO FN (CORR) 05/05/94 4355 (S) RULES RPT 3CAL 2NR 5/5/94 05/05/94 4372 (S) READ THE SECOND TIME 05/05/94 4372 (S) L&C CS ADOPTED UNAN CONSENT 05/05/94 4372 (S) MOTION TO ADVANCE WITHDRAWN 05/05/94 4372 (S) THIRD READING 5/6 CALENDAR 05/06/94 4426 (S) READ THE THIRD TIME CSSB 362(L&C) 05/06/94 4427 (S) PASSED Y20 N- 05/06/94 4427 (S) COURT RULE CHANGE VOTE SAME AS PASSAGE 05/06/94 4427 (S) EFFECTIVE DATE SAME AS PASSAGE 05/06/94 4450 (S) TRANSMITTED TO (H) 05/08/94 4169 (H) READ THE FIRST TIME/REFERRAL(S) 05/08/94 4170 (H) LABOR & COMMERCE ACTION NARRATIVE TAPE 94-40, SIDE A Number 001 CHAIRMAN HUDSON convened the House Labor and Commerce Committee at 8:40 p.m. Committee members present were Representatives Hudson, Mulder, Williams, and Porter. Committee members absent were Representatives Green, Sitton, and Mackie CSSB 213(FIN) am(efd fld) - APUC EXTENSION AND REGULATORY COST CHARGE CHAIRMAN HUDSON announced that the committee would be taking action on CSSB 213 (Fin) am(efd fld). CHAIRMAN HUDSON informed the committee members that the new House version proposed committee substitute deletes Sections 5 and 6, the GCI amendments, and adds the effective dates of `July 19, 1995' for the liberally construed language and `July 19, 1994' for the rest of the bill. He noted the title in the draft version does not affect the effective date. Number 018 REPRESENTATIVE MULDER moved to adopt the HCSCSSB 213 (L&C). Hearing no objection, it was so ordered. Number 020 REPRESENTATIVE PORTER moved to pass HCSCSSB 213(L&C) with the conceptual amendment adding the effective date language, and the zero fiscal note, out of committee. Hearing no objection, the motion carried. Number 024 CHAIRMAN HUDSON announced that the committee did notice SB 362 but did not have the opportunity to waive the 24 hour rule on the House floor. He said they would attempt to do it that evening and, if not, the bill would be before the committee the next morning. Number 028 CHAIRMAN HUDSON recessed the meeting at 8:41 P.M. Number 040 CHAIRMAN HUDSON reconvened the House Labor and Commerce Committee at 11:27 a.m. on May 9, 1994. Committee members present were Representatives Hudson, Green, Williams, Mulder, and Porter. Committee members absent were Representatives Sitton and Mackie. CSSB 362 (L&C) - OMNIBUS INSURANCE REFORM CHAIRMAN HUDSON announced the next order of business was CSSB 362 (L&C), relating to omnibus insurance reform. He noted there is a workdraft to the bill dated May 7, 1994, which considers the technical amendments that were asked for and were supposed to have been included in the bill in the Senate. Chairman Hudson He invited Commissioner Fuhs to the table to present the bill. Number 083 PAUL FUHS, Commissioner, Department of Commerce and Economic Development, explained that the "K" version contains technical amendments to the original bill. He said the amendments were adopted but committee staff put the wrong version before the committee when the bill moved. He said the bill has to do with solvency of insurance companies and if they are in financial trouble, his department wants to know so they can step in and not end up with a savings and loan situation. Number 097 DAVE WALSH, Director, Division of Insurance, testified in favor of SB 362. He added that he believes that the amendments are technical, but it is important that they are included in the bill. The amendments provide for more notice, more public hearings, more public exposure of any changes to national models and regulations that may have to be put in force. He referred to the amendment that would go on page 20, line 26 and said one thing the bill does is provide for continuing education rates. Mr. Walsh said this is something that the agents and brokers are in favor of. The amendment makes sure that the division takes into account the difficulties that people have in rural Alaska with attending classes, etc. He explained that they have always intended to allow credit for video tapes, etc. The amendment makes it clear that it has to happen. Mr. Walsh said he believes that everyone supports the bill. Number 125 REPRESENTATIVE MULDER moved for the adoption of the HCSCSSB 362 (L&C). Hearing no objection, it was so ordered. Number 139 REPRESENTATIVE GREEN asked if the version of the bill before the committee provides any advantage to any particular insurance agency or insurance service. Number 147 COMMISSIONER FUHS responded "no." He added that the whole bill is supported by the insurance industry. Number 154 REPRESENTATIVE MULDER asked what the Chairman's thoughts were in regards to entertaining debate on the subject of the "any willing provider" issue. CHAIRMAN HUDSON stated that he intended to move the bill without any further amendments. Number 175 REPRESENTATIVE PORTER made a motion move HCSCSSB 362 (L&C) out of the House Labor and Commerce Committee with individual recommendations and a zero fiscal note. Hearing no objections, the motion carried. Number 179 CHAIRMAN HUDSON adjourned the meeting at 11:37 a.m.