SENATE RULES COMMITTEE March 1, 2000 11:30 a.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Loren Leman, Vice Chair Senator Mike Miller Senator Drue Pearce Senator Johnny Ellis MEMBERS ABSENT None COMMITTEE CALENDAR SENATE BILL NO. 175 "An Act relating to state mining law, to methods of locating mining claims, to the granting of larger mining claims using a legal subdivision based on rectangular survey descriptions, and to mandatory rental payments for prospecting rights." -MOVED ALL VERSIONS OF SB 175 OUT OF COMMITTEE SENATE BILL NO. 177 "An Act relating to insurance trade practices; and providing for an effective date." -MOVED ALL VERSIONS OF SB 177 OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 175 - See Resources Committee minutes dated 2/21/00 and Finance report dated 2/29/00. SB 177 - See Labor and Commerce Committee minutes dated 1/18/00 and 2/29/00. ACTION NARRATIVE TAPE 00-4, SIDE A CHAIRMAN KELLY called the Senate Rules Committee meeting to order at 11:30 a.m. All members were present. SENATOR LEMAN moved to calendar, at the Chairman's discretion, all versions of SB 175-STATE MINING LAW with individual recommendations and accompanying fiscal notes. There being no objection, the motion carried. SENATOR LEMAN moved to calendar, at the Chairman's discretion, all versions of SB 177-INSURANCE TRADE PRACTICES & ACTS with individual recommendations and accompanying fiscal notes. SENATOR LEMAN objected to his motion to explain why he will recommend that the bill be amended on the Senate floor. He expressed concern that Section 6 could have the effect of limiting the options available to Alaskans who seek different types of insurance, such as earthquake insurance. He wants to take a closer look at that question and whether the removal of Section 6 will alleviate the problem. SENATOR KELLY asked for a brief explanation of what the bill accomplishes in its current form. SENATOR LEMAN indicated SB 177 was heard by the Senate Labor and Commerce Committee yesterday. The focus of the bill is whether one act can be considered an insurance trade practice. Currently, the Division of Insurance director does not believe he has the authority under statute to step in and take action when one act occurs versus when a series of actions occurs. Others disagree with his interpretation and believe he has the authority but is choosing not to exercise it. CSSB 177(L&C) clarifies in statute that one act or one practice, in certain cases, could cause the director to take action. SENATOR ELLIS asked if a single act will constitute a practice under Alaska statute if this bill becomes law. SENATOR LEMAN said yes, that is essentially what it will do but that Section 6 does something else. Section 6 pertains to contributory causes. For example, if an earthquake occurred and a person's home burned down because hot wires touched during the earthquake, the issue was whether the person's homeowner insurance would kick in to cover the fire damage if the person did not have earthquake insurance. The Division of Insurance proposed the language in Section 6 but it was not made fully clear during the meeting why that section was included. CHAIRMAN KELLY noted that Senator Donley and the Division of Insurance support the bill while State Farm Insurance does not. SENATOR LEMAN removed his objection. CHAIRMAN KELLY announced that with no objections, SB 177 would be calendared. There being no further business to come before the committee, he adjourned the meeting at 11:35 a.m.