SENATE LABOR AND COMMERCE COMMITTEE May 14, 1999 2:23 P.M.> MEMBERS PRESENT Senator Jerry Mackie, Chairman Senator Tim Kelly, Vice Chairman Senator Dave Donley Senator Loren Leman Senator Lyman Hoffman MEMBERS ABSENT All members present COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 143(L&C) "An Act relating to the executive officer employed for the Real Estate Commission, to the real estate surety fund, and to employees paid from money in the real estate surety fund." -MOVED CSHB 143(L&C) OUT OF COMMITTEE CS FOR HOUSE BILL NO. 158(L&C) "An Act relating to the annual report of the director of the division of insurance and to notice of cancellation of personal insurance." -MOVED CSHB 158(L&C) OUT OF COMMITTEE HOUSE JOINT RESOLUTION NO. 10 Opposing the closure of any portion of Denali National Park and Preserve to snowmachine access. -SCHEDULED BUT NOT HEARD PREVIOUS SENATE COMMITTEE ACTION HB 143 - No previous action to consider. HB 158 - No previous action to consider. HJR 10 - No previous action to consider. WITNESS REGISTER Representative Rokeberg State Capitol Bldg. Juneau, AK 99811-1182 POSITION STATEMENT: Sponsor of HB 143 and HB 158. Ms. Catherine Reardon, Director Division of Occupational Licensing Department of Commerce and Economic Development P.O. Box 110806 Juneau, AK 99811-0806 POSITION STATEMENT: Supported HB 143. Mr. John Ference, Director Division of Insurance Department of Commerce and Economic Development P.O. Box 110805 Juneau, AK 99811-0805 POSITION STATEMENT: Commented on HB 158. Mr. John George National Association of Independent Insurers 3328 Fritz Cove Rd. Juneau, AK 99801 POSITION STATEMENT: Supported HB 158. ACTION NARRATIVE TAPE 99-22, SIDE A Number 001 HB 143-REAL ESTATE:SURETY FUND & COMMISSION CHAIRMAN MACKIE called the Senate Labor and Commerce Committee meeting to order at 2:23 p.m. and announced HB 143 to be up for consideration. REPRESENTATIVE ROKEBERG, sponsor of HB 143, said this is a housekeeping bill that relates to the surety fund of the Real Estate Commission. It makes modest changes to provide more flexibility for use of the funds within the surety fund by removing the lapsing requirement and allows the publications specialist to be used not just for the educational requirement, but to back up the executive administrator of the Commission. He explained that the publications specialist, because they are paid by the surety fund, can't assist the executive administrator when they are out of town, because they can only do things that are related to education. This bill allows that person to be able to help out. The fund is calculated on an average basis and this increases the efficiency of the fund. MS. CATHERINE REARDON, Division of Occupational Licensing, said the Department supports the bill. SENATOR LEMAN moved to report HB 143 from committee with individual recommendations. There were no objections and it was so ordered. CHAIRMAN MACKIE announced HB 158 to be up for consideration. REPRESENTATIVE ROKEBERG, sponsor, said this bill is important to pass this year, because it meets the biennial licensing cycle. It authorizes the Division of Insurance to make inquiries of the health insurers as to the numbers of individual or group policies that they write in this State. Representative Rokeberg said as a member of the Labor and Commerce Committee for five years, he has wondered who is really covered by insurance mandates, because they sound real good, but have a negative impact on the affordability of insurance to people. Most people are covered by ARITHA or self insured plans which the insurance mandate bills don't reach out to. There may be under 100,000 people who are actually affected by any insurance mandate bill. This provision allows the Division to get that information. The second thing this bill does is because of a situation with an 83 year old neighbor who forgot to pay his premium and got in an automobile accident. It requires the insurance industry to give notice to everyone in the state that a person over 70 years of age may request and have designated a third party to which their insurance premiums and notifications will be mailed to. Industry has also indicated to Representative Rokeberg that they are willing to do this in their general publications on all insurance policies sent within the state. He noted that this only covers personal insurance like auto and home owners. It's not meant to go into other areas. Number 136 SENATOR KELLY asked why the age wasn't set at 65. REPRESENTATIVE ROKEBERG said that statistics show that the onset of ADRD type dementia disease start when you get into the older ages. SENATOR DONLEY asked if section 2, repealing existing notice requirements, changes any the notice requirements for anyone under 70 years of age. MR. JOHN FERENCE, Division of Insurance, answered that it didn't change those requirements. It adds the opportunity for an extra notice for someone over 70 years of age. Number 176 MR. JOHN GEORGE, National Association of Independent Insurers, said that this version is better than the original bill which industry did not support. SENATOR DONLEY asked if section 2 overturns any court cases or change any current rules as far as providing notice to the elderly. MR. FERENCE answered no. SENATOR LEMAN moved to report HB 158 from committee with individual recommendations. There were no objections and it was so ordered. CHAIRMAN MACKIE adjourned the meeting at 2:35 p.m.