ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 6, 2013                                                                                          
                           9:01 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator Peter Micciche, Vice Chair                                                                                              
Senator Donald Olson                                                                                                            
Senator Bert Stedman                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Johnny Ellis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 71(FIN)                                                                                 
"An  Act requiring  the Department  of  Commerce, Community,  and                                                               
Economic Development to file an  annual report to the legislature                                                               
regarding  statewide and  regional economic  development projects                                                               
and   regional    development   organizations;    extending   the                                                               
termination  date  of  the Alaska  regional  economic  assistance                                                               
program; and providing for an effective date."                                                                                  
                                                                                                                                
     - MOVED CSHB  71(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 175(L&C)                                                                                
"An  Act  allowing,  under  certain  conditions,  a  property  or                                                               
casualty  insurer  to provide  policies  and  endorsements to  an                                                               
insured  by   posting  the  policies  and   endorsements  on  the                                                               
insurer's Internet website."                                                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 168(L&C)                                                                                
"An  Act amending  the  definition of  travel  insurance for  the                                                               
purpose of  describing a person  eligible for a  travel insurance                                                               
limited  producer  license;  and  authorizing  a  person  selling                                                               
travel services to  transact the business of  travel insurance on                                                               
behalf  of and  under the  direction of  a person  licensed as  a                                                               
travel insurance limited producer."                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  71                                                                                                                  
SHORT TITLE: AK REGIONAL ECONOMIC ASSISTANCE PROGRAM                                                                            
SPONSOR(s): REPRESENTATIVE(s) HUGHES                                                                                            
                                                                                                                                
01/16/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (H)       L&C, FIN                                                                                               
02/18/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/18/13       (H)       Heard & Held                                                                                           
02/18/13       (H)       MINUTE(L&C)                                                                                            
03/04/13       (H)       L&C AT 3:15 PM CAPITOL 106                                                                             
03/04/13       (H)       MILITARY TRAINING CREDIT/TEMP. LICENSE                                                                 
03/05/13       (H)       L&C AT 8:00 AM BARNES 124                                                                              
03/05/13       (H)       -- Meeting Continued from 3/4/13 --                                                                    
03/07/13       (H)       L&C RPT CS(L&C) 1DP 5NR                                                                                
03/07/13       (H)       DP: JOSEPHSON                                                                                          
03/07/13       (H)       NR:    MILLETT,     REINBOLD,    HERRON,                                                               
                        CHENAULT, OLSON                                                                                         
03/18/13       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/18/13       (H)       Moved CSHB  71(FIN) Out of Committee                                                                   
03/18/13       (H)       MINUTE(FIN)                                                                                            
03/20/13       (H)       FIN RPT CS(FIN) NT 10DP 1AM                                                                            
03/20/13       (H)       DP: T.WILSON, EDGMON, THOMPSON, NEUMAN,                                                                
                         MUNOZ, HOLMES, COSTELLO, GARA, STOLTZE,                                                                
03/20/13       (H)       AUSTERMAN                                                                                              
03/20/13       (H)       AM: KAWASAKI                                                                                           
03/27/13       (H)       TRANSMITTED TO (S)                                                                                     
03/27/13       (H)       VERSION: CSHB 71(FIN)                                                                                  
03/28/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/28/13       (S)       L&C, FIN                                                                                               
04/04/13       (S)       L&C AT 5:00 PM BELTZ 105 (TSBldg)                                                                      
04/04/13       (S)       Heard & Held                                                                                           
04/04/13       (S)       MINUTE(L&C)                                                                                            
04/06/13       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 175                                                                                                                  
SHORT TITLE: ELECTRONIC POSTING OF INSURANCE POLICIES                                                                           
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/18/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/13       (H)       L&C                                                                                                    
03/27/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/27/13       (H)       Moved CSHB 175(L&C) Out of Committee                                                                   
03/27/13       (H)       MINUTE(L&C)                                                                                            
03/28/13       (H)       L&C RPT CS(L&C) 4DP 3NR                                                                                
03/28/13       (H)       DP: SADDLER, MILLETT, JOSEPHSON, OLSON                                                                 
03/28/13       (H)       NR: CHENAULT, HERRON, REINBOLD                                                                         
04/03/13       (H)       TRANSMITTED TO (S)                                                                                     
04/03/13       (H)       VERSION: CSHB 175(L&C)                                                                                 
04/04/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/13       (S)       L&C                                                                                                    
04/06/13       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 168                                                                                                                  
SHORT TITLE: TRAVEL INSURANCE                                                                                                   
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/15/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/15/13       (H)       L&C                                                                                                    
03/25/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/25/13       (H)       Moved CSHB 168(L&C) Out of Committee                                                                   
03/25/13       (H)       MINUTE(L&C)                                                                                            
03/26/13       (H)       L&C RPT CS(L&C) 4DP 2NR                                                                                
03/26/13       (H)       DP: REINBOLD, SADDLER, JOSEPHSON, OLSON                                                                
03/26/13       (H)       NR: CHENAULT, HERRON                                                                                   
04/04/13       (H)       TRANSMITTED TO (S)                                                                                     
04/04/13       (H)       VERSION: CSHB 168(L&C)                                                                                 
04/05/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/13       (S)       L&C                                                                                                    
04/06/13       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE SHELLY HUGHES                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HB 71.                                                                                         
                                                                                                                                
KONRAD JACKSON, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Introduced HB 175 on behalf of the sponsor.                                                               
                                                                                                                                
MARTIN HESTER, Deputy Director                                                                                                  
Division of Insurance                                                                                                           
Department of Commerce, Community and Economic Development                                                                      
Juneau, AK                                                                                                                      
POSITION STATEMENT: Answered questions related to HB 168 and HB                                                               
175 and testified that DCCED did not object to either bill.                                                                     
                                                                                                                                
ANNA LATHAM, Staff                                                                                                              
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 168 on behalf of the sponsor.                                                               
                                                                                                                                
JOHN FIELDING, Attorney                                                                                                         
Steptoe & Johnson, LLP                                                                                                          
Washington, D.C.                                                                                                                
POSITION STATEMENT: Testified in support of HB 168.                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:01:43 AM                                                                                                                    
CHAIR  MIKE  DUNLEAVY  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 9:01 a.m.  Present at the                                                               
call to order  were Senators Stedman, Olson,  Micciche, and Chair                                                               
Dunleavy.                                                                                                                       
                                                                                                                                
         HB  71-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM                                                                     
                                                                                                                                
9:02:06 AM                                                                                                                    
CHAIR  DUNLEAVY announced  the consideration  of  HB 71."An  Act                                                               
requiring  the Department  of Commerce,  Community, and  Economic                                                               
Development  to   file  an  annual  report   to  the  legislature                                                               
regarding  statewide and  regional economic  development projects                                                               
and   regional    development   organizations;    extending   the                                                               
termination  date  of  the Alaska  regional  economic  assistance                                                               
program;  and providing  for an  effective date."  He noted  that                                                               
this  was  the  second  hearing. [CSHB  71(FIN)  was  before  the                                                               
committee.]                                                                                                                     
                                                                                                                                
9:02:45 AM                                                                                                                    
REPRESENTATIVE SHELLY  HUGHES, sponsor of  HB 71, noted  that she                                                               
presented the  bill yesterday and  asked if the  committee wanted                                                               
her to review what she stated previously.                                                                                       
                                                                                                                                
SENATOR STEDMAN  suggested the sponsor  provide a  description of                                                               
the bill for the listening public.                                                                                              
                                                                                                                                
REPRESENTATIVE   HUGHES  explained   that  the   Alaska  Regional                                                               
Economic  Assistance (ARDOR)  program expires  June 30,  2013 and                                                               
the bill  extends it to  July 1, 2016. The  bill also adds  a new                                                               
feature that  requires the Department of  Commerce, Community and                                                               
Economic Development  (DCCED) to submit  an annual report  to the                                                               
legislature.  The  purpose  of  the  report  is  to  improve  the                                                               
accountability  of the  12 ARDOR  organizations, and  ensure that                                                               
state  funds  are  properly  used.  DCCED  will  report  on  both                                                               
statewide  and  regional  projects   as  well  as  the  financial                                                               
information  and   strategies  of  the  individual   ARDORs.  She                                                               
explained  that the  ARDORs were  developed on  the premise  that                                                               
local initiatives  with local leadership  are best  to understand                                                               
regional conditions, challenges and opportunities of the region.                                                                
                                                                                                                                
SENATOR STEDMAN asked for a  discussion of the political boundary                                                               
between ARDORS, which are substantially  funded by the state, and                                                               
political advocacy on statewide issues.                                                                                         
                                                                                                                                
REPRESENTATIVE   HUGHES  explained   that   each   ARDOR  has   a                                                               
nonpartisan  board and  community  leaders  are represented.  She                                                               
wasn't aware of any problem associated with the structure.                                                                      
                                                                                                                                
SENATOR  STEDMAN  asked  her  to follow  up  on  the  separation,                                                               
because one  ARDOR is interested in  addressing political matters                                                               
on  a statewide  level.  He  said he  wasn't  comfortable with  a                                                               
subsidiary  of a  state  agency being  a  political advocate.  He                                                               
added  that he  would also  have  a discussion  with the  finance                                                               
chair.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  HUGHES  said  that   in  addition  to  the  added                                                               
accountability  reporting, Legislative  Budget  and Audit  (LB&A)                                                               
was  authorized to  conduct the  first  ever audit  of the  ARDOR                                                               
program. The agency would look at  that sort of thing. She agreed                                                               
that public funds should not be used for political advocacy.                                                                    
                                                                                                                                
9:08:25 AM                                                                                                                    
CHAIR DUNLEAVY closed public testimony.                                                                                         
                                                                                                                                
SENATOR MICCICHE said he had  extensive experience with the ARDOR                                                               
program and he supported the concept.                                                                                           
                                                                                                                                
CHAIR DUNLEAVY solicited a motion.                                                                                              
                                                                                                                                
9:09:20 AM                                                                                                                    
SENATOR  MICCICHE  moved to  report  CSHB  71, 28-LS0288\C,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection, CSHB  71(L&C)                                                               
moved from the Senate Labor and Commerce Standing Committee.                                                                    
                                                                                                                                
9:09:44 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        HB 175-ELECTRONIC POSTING OF INSURANCE POLICIES                                                                     
                                                                                                                                
9:11:15 AM                                                                                                                    
CHAIR DUNLEAVY  announced the  consideration of  HB 175.  "An Act                                                               
allowing,  under  certain  conditions,  a  property  or  casualty                                                               
insurer to  provide policies  and endorsements  to an  insured by                                                               
posting the  policies and endorsements on  the insurer's Internet                                                               
website." He  noted that CSHB  175(L&C) was before  the committee                                                               
and that this was the first hearing.                                                                                            
                                                                                                                                
9:11:50 AM                                                                                                                    
KONRAD JACKSON, Staff, Representative  Kurt Olson, explained that                                                               
HB  175  would permit  insurers  to  post standard  property  and                                                               
casualty  insurance policies  and endorsements  on the  insurer's                                                               
website. Current law in all  50 states requires companies to mail                                                               
or deliver  policies to their customers.  These on-line documents                                                               
would contain  no personally identifiable  information. Consumers                                                               
would have  easy access  to those documents  which would  make it                                                               
easy to  shop for  coverage or  file a claim.  A change  from the                                                               
original version clarifies that  paper contracts will continue to                                                               
be available without an additional fee.                                                                                         
                                                                                                                                
9:14:09 AM                                                                                                                    
SENATOR MICCICHE asked  where the bill says there  wouldn't be an                                                               
additional charge for mailing.                                                                                                  
                                                                                                                                
MR. JACKSON  clarified that  the bill  doesn't attempt  to change                                                               
anything about  mailing costs. The  intent is to make  sure there                                                               
is no fee to receive a paper copy.                                                                                              
                                                                                                                                
SENATOR STEDMAN  asked if Alaska was  the first of the  50 states                                                               
to do this.                                                                                                                     
                                                                                                                                
MR.  JACKSON  replied that  all  states  require the  mailing  or                                                               
delivery  of   policies,  and  about  16   states  are  currently                                                               
providing an electronic option.                                                                                                 
                                                                                                                                
9:16:03 AM                                                                                                                    
CHAIR DUNLEAVY opened public testimony.                                                                                         
                                                                                                                                
9:16:32 AM                                                                                                                    
MARTIN   HESTER,   Deputy   Director,  Division   of   Insurance,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), introduced himself.                                                                                                    
                                                                                                                                
SENATOR   STEDMAN  asked   the  department's   position  on   the                                                               
legislation and if there had been input from the public.                                                                        
                                                                                                                                
MR. HESTER  affirmed that  this legislation  has been  enacted in                                                               
several other  states. He explained  that it does not  remove the                                                               
requirement  for  the  insurer   to  provide  the  insured  their                                                               
declarations  page,  which  has personal  information.  The  bill                                                               
provides  an additional  method of  delivery for  the insured  to                                                               
access  the policy,  although  the insured  may  still request  a                                                               
paper copy.  He relayed  that the Division  of Insurance  sees no                                                               
difficulty with the language proposed in HB 175.                                                                                
                                                                                                                                
9:18:13 AM                                                                                                                    
CHAIR DUNLEAVY stated he would hold  HB 175 in committee and keep                                                               
public testimony open.                                                                                                          
                                                                                                                                
                    HB 168-TRAVEL INSURANCE                                                                                 
                                                                                                                                
9:18:25 AM                                                                                                                    
CHAIR DUNLEAVY  announced the  consideration of  HB 168.  "An Act                                                               
amending the  definition of travel  insurance for the  purpose of                                                               
describing  a  person eligible  for  a  travel insurance  limited                                                               
producer  license;  and  authorizing   a  person  selling  travel                                                               
services to transact  the business of travel  insurance on behalf                                                               
of  and under  the direction  of a  person licensed  as a  travel                                                               
insurance limited  producer." He  noted that  this was  the first                                                               
hearing and that CSHB 168(L&C) was before the committee.                                                                        
                                                                                                                                
9:19:05 AM                                                                                                                    
ANNA  LATHAM, Staff,  Representative  Kurt Olson,  sponsor of  HB                                                               
168,  stated  that  HB  168  is  based  on  National  Council  of                                                               
Insurance  Legislators (NCOIL)  model legislation  that is  being                                                               
implemented  nationwide.  It has  a  goal  of improving  consumer                                                               
protection and  creating consistency  in travel  insurance sales.                                                               
Section 1  redefines travel insurance  so that the  definition is                                                               
standardized  in   all  50  states.   She  noted   that  Alaska's                                                               
definition was  slightly modified. Section  2 adds a  new section                                                               
defining   travel  insurance,   and  who   may  transact   travel                                                               
insurance. It allows a person  that transacts travel services the                                                               
ability to  sell those products  under the direction of  a person                                                               
holding a travel insurance limited  producer license. It requires                                                               
a travel insurance limited lines  producer to maintain a register                                                               
of all persons selling insurance  on their behalf, and to provide                                                               
a  training  program. The  bill  limits  the information  that  a                                                               
person transacting travel insurance may  and may not provide to a                                                               
customer. It  makes the travel insurance  limited producer liable                                                               
for  the acts  of  a  person selling  travel  insurance on  their                                                               
behalf.                                                                                                                         
                                                                                                                                
MS. LATHAM explained that NCOIL  developed this model legislation                                                               
to streamline  the process  for selling  travel insurance  on the                                                               
Internet or across state lines. The  problem is that there are 41                                                               
different  licensing qualification  codes to  become licensed  to                                                               
sell travel  insurance in all  50 states  and many states  do not                                                               
accept the  same electronic  application. As  a result,  it takes                                                               
about six months to become  licensed. This is burdensome for this                                                               
high turnover industry when insurance  sales account for just two                                                               
percent of travel agents overall revenue.                                                                                       
                                                                                                                                
The NCOIL  model establishes a licensing  framework that reflects                                                               
the  unique  distribution  system  of  travel  insurance  in  the                                                               
industry  and places  the regulatory  burden on  the insurer  who                                                               
develops  and distributes  the  product.  This improves  consumer                                                               
protection by  requiring clear accountability  and notice  to the                                                               
consumer  and  regulator regarding  who  is  responsible for  the                                                               
sale.  To date,  a version  of  this model  legislation has  been                                                               
enacted in  eight states and  is awaiting governor  signatures in                                                               
two  other states.  Legislation is  pending in  16 other  states,                                                               
including Alaska.                                                                                                               
                                                                                                                                
MS. LATHAM  said the  only difference  between the  original bill                                                               
and the committee substitute (CS) appears  on page 5, line 7. The                                                               
phrase "an  employee of the person  transacting travel insurance"                                                               
was changed  to "a person  transacting travel  insurance" because                                                               
the former lacked clarity.                                                                                                      
                                                                                                                                
9:23:08 AM                                                                                                                    
SENATOR OLSON asked how many people purchase travel insurance.                                                                  
                                                                                                                                
MS. LATHAM said there are  259 resident and non-resident licensed                                                               
producers within  the state, and  she could get  that information                                                               
from them.                                                                                                                      
                                                                                                                                
SENATOR OLSON asked if the trend was up, down, or stable.                                                                       
                                                                                                                                
MS. LATHAM said the trend  is toward on-line sales. She estimated                                                               
that up to 90 percent of policies are purchased that way.                                                                       
                                                                                                                                
SENATOR MICCICHE  commented that  most people don't  realize that                                                               
the option to  purchase insurance is available  whenever a person                                                               
purchases a ticket.                                                                                                             
                                                                                                                                
9:26:18 AM                                                                                                                    
MARTIN   HESTER,   Deputy   Director,  Division   of   Insurance,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), Juneau, AK, introduced himself.                                                                                        
                                                                                                                                
SENATOR  STEDMAN  asked  if  the   department  had  received  any                                                               
complaints about travel insurance.                                                                                              
                                                                                                                                
MR.  HESTER  replied  he  wasn't  aware  of  any.  He  said  this                                                               
legislation  allows an  employee  to sell  insurance under  their                                                               
employer's  limited   producer  license,  and  the   Division  of                                                               
Insurance  has  no  problems  with  the  language.  It  is  model                                                               
legislation.                                                                                                                    
                                                                                                                                
SENATOR STEDMAN  asked if the model  included recommendations for                                                               
the training  program and how  that comports with  the division's                                                               
regulatory responsibilities.                                                                                                    
                                                                                                                                
9:28:24 AM                                                                                                                    
MR.  HESTER  offered  to  follow up  with  information,  but  his                                                               
understanding  was that  the  legislation does  not  lay out  the                                                               
training  regimen.  It  simply  states  that  the  employer  must                                                               
implement a training program for employees.                                                                                     
                                                                                                                                
SENATOR STEDMAN requested the information.                                                                                      
                                                                                                                                
9:29:50 AM                                                                                                                    
VICE-CHAIR  MICCICHE, acting  as  chair, asked  if  this was  any                                                               
different than purchasing travel insurance  from an employee at a                                                               
rental car counter.                                                                                                             
                                                                                                                                
MR.  HESTER   said  that  scenario   is  similar  to   what  this                                                               
legislation would do. His understanding  was that the employee at                                                               
the  rental car  counter is  acting  under the  authority of  the                                                               
limited producer license that belongs to the rental car company.                                                                
                                                                                                                                
SENATOR OLSON asked the administration's position on the bill.                                                                  
                                                                                                                                
MR.  HESTER  reiterated  that  DCCED  has  no  objection  to  the                                                               
language in HB 168.                                                                                                             
                                                                                                                                
9:31:22 AM                                                                                                                    
VICE-CHAIR MICCICHE  opened public testimony, and  noted it would                                                               
remain open through the next meeting.                                                                                           
                                                                                                                                
9:31:37 AM                                                                                                                    
JOHN FIELDING, Attorney, Steptoe &  Johnson, LLP, stated that his                                                               
firm represents  U. S. Travel  Insurance Association  (USTIA). He                                                               
urged the  committee to support HB  168, describing it as  a step                                                               
forward  for  consumers,  regulators and  industry  players.  The                                                               
legislation is  good for consumers  because it  requires employee                                                               
training and  disclosures to the  consumers, neither of  which is                                                               
currently required.  With regard to the  question about training,                                                               
he  said that  some states  have  asked the  insurers to  provide                                                               
copies of the training materials  to the regulatory department to                                                               
ensure  that the  training is  sufficiently robust.  He suggested                                                               
that Alaska might do that in  the future. The legislation is good                                                               
for  the  regulators  because  it  provides  a  more  streamlined                                                               
process. It is also good for  the industry because it places much                                                               
of the regulatory  burden on the insurers  or intermediaries that                                                               
develop and  distribute the products.  He urged the  committee to                                                               
support HB 168.                                                                                                                 
                                                                                                                                
9:35:34 AM                                                                                                                    
SENATOR OLSON asked about the penalties for noncompliance.                                                                      
                                                                                                                                
MR.  FIELDING  said  the  current   authority  of  the  insurance                                                               
department remains intact.                                                                                                      
                                                                                                                                
SENATOR OLSON questioned  the need for the  legislation since Mr.                                                               
Hester said there  have been no complaints. He  commented that it                                                               
appeared to add to bureaucracy.                                                                                                 
                                                                                                                                
MR. FIELDING  said this lessens  the bureaucracy.  It streamlines                                                               
the process by  focusing on the insurers  and intermediaries that                                                               
put the product together and provide  it. It's a process his firm                                                               
has worked through  with other stakeholders as it  was debated by                                                               
NCOIL and  other states.  They all thought  it would  be helpful,                                                               
less burdensome, and more effective.                                                                                            
                                                                                                                                
SENATOR OLSON asked where training would be held.                                                                               
                                                                                                                                
MR. FIELDING said  there is a requirement for  a training program                                                               
to be  in place, but it  doesn't dictate the type  of training or                                                               
location. The training could take place on-line.                                                                                
                                                                                                                                
SENATOR   OLSON  maintained   that  it   was  another   level  of                                                               
bureaucracy and quite possibly unnecessary  since there have been                                                               
no complaints.                                                                                                                  
                                                                                                                                
9:39:23 AM                                                                                                                    
VICE-CHAIR MICCICHE noted that Paul  Brown with AIG was available                                                               
for questions. Finding no further  questions or public testimony,                                                               
he stated that he would hold HB 168 in committee.                                                                               
                                                                                                                                
9:40:03 AM                                                                                                                    
There being no further business to come before the committee,                                                                   
Vice-Chair Micciche adjourned the Senate Labor and Commerce                                                                     
Standing Committee meeting at 9:40 a.m.