SENATE LABOR AND COMMERCE COMMITTEE May 9, 1998 3:08 P.M. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Jerry Mackie, Vice Chairman Senator Tim Kelly Senator Mike Miller MEMBERS ABSENT Senator Lyman Hoffman COMMITTEE CALENDAR Confirmation Hearing: Mr. John Abshire, Workers' Compensation Board PREVIOUS SENATE COMMITTEE ACTION SB 359 - No previous action to record. WITNESS REGISTER Ms. Barbara Huff Tuckness AFL-CIO 520 W 34th Anchorage, AK 99503 POSITION STATEMENT: Supported SB 359. ACTION NARRATIVE TAPE 98-28, SIDE A Number 001 CHAIRMAN LEMAN called the Senate Labor and Commerce Committee meeting to order at 3:08 p.m. and said they would take up the confirmation of Mr. John Abshire, Workers Compensation Board. He said Mr. Abshire had been available two or three times and through no fault of his or theirs, he hasn't been able to testify. SENATOR MACKIE moved to forward the name of Mr. John Abshire for consideration by the Joint Session. This is not a statement of intent to vote for or against the nominee by any committee members. There were no objections and it was so ordered. SB 359 - INSURANCE PREMIUM TAX CHAIRMAN LEMAN announced SB 359 to be up for consideration. MS. BARBARA HUFF TUCKNESS, Teamsters Local 959, said she supported SB 359. The particular portion of the bill that impacts the Teamster members they represent in the Anchorage school district, although it affects other school districts, as well as cities around the State, is the two percent retaliatory tax that is applied to insurance companies that are domiciled in the state of Washington. Currently, in Alaska there is only one insurance company that fits that particular criteria, Blue Cross, which has the health insurance policy for the Anchorage school district. She asked for their support in passing this bill that would repeal that tax. Their members are currently paying a little over $100 per year to cover the tax and it has nothing to do with the level of benefit coverage they are receiving. SENATOR KELLY asked if Blue Cross said they would actually return the premium tax back to the consumer. MS. HUFF TUCKNESS said that was her understanding. SENATOR KELLY asked if they could get a letter from Blue Cross to that affect. MS. HUFF TUCKNESS said she would make that request. SENATOR MACKIE moved CSSB 359(L&C) from Committee with individual recommendations. There were no objections and it was so ordered. CHAIRMAN LEMAN adjourned the meeting at 3:14 p.m.