Link to Zipped WordPerfect Minutes 14K bytes

MINUTES OF THE HOUSE BUSINESS AND LABOR
STANDING COMMITTEE
Room W010, West Office Building, State Capitol Complex
February 8, 2007


Members Present:    Rep. Stephen D. Clark, Chair
            Rep. Jim Dunnigan, Vice Chair            
            Rep. Jackie Biskupski
            Rep. David Clark            
            Rep. Carl W. Duckworth
            Rep. Ben Ferry
            Rep. Gage Froerer
            Rep. Kevin Garn
            Rep. Neil A Hansen
            Rep. Todd E. Kiser
            Rep. Michael T. Morley
            Rep. Paul Neuenschwander
            Rep. Mark Walker        
             
Staff Present:    Allison Nicholson, Policy Analyst            
            Linda Error, Committee Secretary

Note:        List of visitors and a copy of handouts are filed with committee minutes .

Chair S. Clark called the meeting to order at 8:05 a.m.

MOTION:    Rep. Biskupski moved to approve the minutes of the February 6, 2007 meeting. The motion passed unanimously, with Rep. D. Clark, Rep. Kiser, and Rep. Morley absent for the vote.

H.B. 163    Options for Health Care (Rep. J. Dunnigan)

Rep. Dunnigan introduced the bill to the committee, with the assistance of Jennifer Cannaday, Regence Blue Cross and Blue Shield of Utah.

MOTION:    Rep. Ferry moved to delete in title and body H.B. 163 and replace it with 1st. Substitute H.B. 163, and amend the bill as follows:

1.    Page 2, Line 32 :    

             32          31A-8-101, as last amended by Chapter 308, Laws of Utah 2002
      31A-8-105, as last amended by Chapter 329, Laws of Utah 1998      


2.    Page 4, Lines 110 through 114 :    

             110      covered by an organization for which an enrollee is liable in the event of the organization's
             111      insolvency.]
             112          
{   [   }      {   (12)   }       (11)       "Unusual or infrequently used health services" means those health services that

             113      are projected to involve fewer than 10% of the organization's enrollees' encounters with
             114      providers, measured on an annual basis over the organization's entire enrollment.
{  ]   }

    
  Section 2. Section 31A-8-105 is amended to read:      

     31A-8-105 .   General powers of organizations.
     Organizations may:
     (1) buy, sell, lease, encumber, construct, renovate, operate, or maintain hospitals, health care clinics, other health care facilities, and other real and personal property incidental to and reasonably necessary for the transaction of the business and for the accomplishment of the purposes of the organization;
     (2) furnish health care through providers which are under contract with the organization;
     (3) contract with insurance companies licensed in this state or with health service corporations authorized to do business in this state for insurance, indemnity, or reimbursement for the cost of health care furnished by the organization;
     (4) offer to its enrollees, in addition to health care, insured indemnity benefits, but only for emergency care, out-of-area coverage, unusual or infrequently used health services as defined in Section 31A-8-101 , and adoption benefits as provided in Section 31A-22-610.1 ;
     (5) receive from governmental or private agencies payments covering all or part of the cost of the health care furnished by the organization;
     (6) lend money to a medical group under contract with it or with a corporation under its control to acquire or construct health care facilities or for other uses to further its program of providing health care services to its enrollees;
     (7) be owned jointly by health care professionals and persons not professionally licensed without violating Utah law;
{  and   }

      (8) offer to its enrollees a product that permits members the option of obtaining services from a noncontracted provider, which is a point of service or point of sale product; and      

    
{   (8)   }        (9)       do all other things necessary for the accomplishment of the purposes of the organization.

The motion to amend and adopt the substitute passed, with Rep. D. Clark, Rep. Kiser, and Rep. Morley absent for the vote.

Spoke for the bill:    Brad Kuhnhausen, Vice President, Aim Administration, Inc. and Independent Insurance Health Underwriters

MOTION:    Rep. Ferry moved to pass the substitute bill out favorably as amended. The motion passed unanimously, with Rep. D. Clark, Rep. Kiser, and Rep. Morley absent for the vote.

S.B. 52    Health Regulations for Public Indoor Tanning Beds (Sen. P. Jones)

Sen. Jones introduced the bill to the committee with the assistance of David Hansen, President Elect, Utah Society of Dermatology.

Spoke for the bill:    Ben Tanner, Chief Operating Officer, Huntsman Cancer Institute
            Louis Garrett, Director, Davis County Health Department

MOTION:    Rep. Hansen moved to amend the bill as follows:

1.    Page 2, Line 53 :    

             53          (18)
  commercial       tanning facilities.


2.    Page 3, Lines 65 through 66 :    

             65          (c) "Tanning facility" means any
  commercial       location, place, area, structure, or business which

             66      provides persons access to any tanning device.

The motion to amend passed unanimously, with Rep. D. Clark, Rep. Dunnigan, Rep. Kiser, and Rep. Morley absent for the vote.

MOTION:    Rep. Garn moved to amend the bill as follows:

1.    Page 2            Delete lines 16-17

2.     Page 3 Line 72,     after warning, delete [and written consent required by                      Subsections (2) and (5)]

3.     Page 3             Delete Lines 74-85b    


The motion to amend failed, with Rep. S. Clark, Rep. Ferry, Rep. Froerer, Rep. Garn, and Rep. Walker voting in favor. Rep. D. Clark, and Rep. Morley were absent for the vote.

MOTION:    Rep. Biskupski moved to pass the bill out favorably as amended. The motion passed, with Rep. S. Clark, Rep. Ferry, Rep. Froerer, Rep. Garn, and Rep. Walker voting in opposition. Rep. D. Clark and Rep Morley were absent for the vote.

H.B. 127    Employee Verification, Procurement, and Incentives (Rep. S. Sandstrom)

Rep. Sandstrom introduced the bill to the committee.

MOTION:    Rep. S. Clark moved to amend the bill as follows:

1.    Page 4, Lines 92 through 109 :    

             92          (2)
  (a)       A state        public       procurement unit shall require as a condition of any agreement to procure

             93      supplies, services, and construction
{   that is the subject of a request for proposals   }        described in Subsection (2)(b)       that an

             94      employer submit with that employer's response to a bid
  related to that agreement       a certification that the employer:

             95          
{   (a)   }        (i)       participates in the federal employment verification program; and

             96          
{   (b)   }        (ii)       has not been found to violate the requirements of the federal employment

             97      verification program by:
             98          
{   (i)   }        (A)       the United States Department of Homeland Security; or

             99          
{   (ii)   }        (B)       the division.

    
  (b) This section applies to an agreement to procure supplies, services, or construction that:

    (i) is the subject of a request for proposals; and
    (ii) has a total dollar value equal to or greater than $25,000.  

             100          (3) (a) If the division learns that the employer does not participate in the federal
             101      employment verification program or an employer is found by the United States Department of
             102      Homeland Security to violate the requirements of the federal employment verification program
{   ,   }        :

    (i) the employer shall remedy the violation within 60 days of the earlier of:
    (A) the day on which the division notifies the employer that the division learned that the employer is subject to this Subsection (3); or
    (B) the day on which the employer notifies the division of the finding as

required by Subsection (3)(b); and
    (ii) if the employer fails to remedy the violation within the 60-day period described in Subsection (3)(a)(i):
    (A) for an agreement entered into on or after April 30, 2007, any agreement with a state public procurement unit that is in effect terminates on the day immediately following the day on which the 60-day period ends;
    (B) the state public procurement unit has any remedy available under an agreement described in Subsection (3)(a)(ii)(A) for breach of that agreement; and  


             103          
  (C)       the employer may not enter into a new agreement or renew an agreement to provide supplies,

             104      services, or construction to a state
  public       procurement unit for one year after the day on which the

             105      finding described in
{   this   } Subsection (3)        (a)(i)       becomes final.

             106          (b) If an employer described in this Subsection (3) has an agreement to provide
             107      supplies, services, or contraction to a state
  public       procurement unit, the employer shall notify the

             108      division of the finding described in Subsection (3)(a) within five business days of the day on
             109      which the finding described in Subsection (3)(a) is final.

The motion to amend passed, with Rep. D. Clark, Rep. Morley, and Rep. Walker absent for the vote.

Spoke to the bill:    Roger Tsai, Attorney, Parsons Behle & Latimer (handout)
            
MOTION:    Rep. Garn moved to proceed to the next item on the agenda. The motion passed, with Rep. Kiser voting in opposition. Rep. D. Clark was absent for the vote.

1st Sub. H.B. 126    Reporting of Fraudulent Insurance Acts (Rep. D. Aagard)

Rep. Aagard introduced the bill to the committee.



MOTION:    Rep. Dunnigan moved to amend the bill as follows:

1.    Page 3, Lines 62 through 71
    House Committee Amendments
    2-2-207 :    

             62          (ii) the person is:

             63          
{   (A) an insurer;

             64          (B) a producer;
             65          (C) a limited line producer;
             66          (D) a customer service representative;
             67          (E) a consultant;
             68          (F) a managing general agent;
             69          (G)   }
{         (A)       an insurance adjuster;   }        (A) an insurer;       or

             70          
{   (H)   }        (B)       in relation to the business of title insurance, an auditor that is employed by a title

             71      insurer.

2.    Page 4, Lines 98 through 104 :    

             98          (3) The department
{   shall   }        may       by rule made in accordance with Title 63, Chapter 46a, Utah

             99      Administrative Rulemaking Act, provide a process by which
{   an insurer and an individual

             100      described in Subsection (1)(a)(ii) may comply with Subsection (1) by submitting a single report
             101      of an act described in Subsection (1)(a).   }
  a person described in Subsection (1)(a)(ii) may comply with the requirements of Subsection (1) by reporting a fraudulent insurance act to the insurer with whom the person is employed, except that the rule shall provide that if the person reports the fraudulent insurance act to the insurer, the insurer is required to report the fraudulent insurance act to the department.      

             102          (4) A person described in Subsection (1)(a)(ii) who in good faith makes a report under
             103      this section is immune from civil action, civil penalty, or damages for making that report in
             104      accordance with Section 31A-31-105 .
  (5) This section does not apply to a fraudulent insurance act related to health insurance.      


The motion to amend passed unanimously, with Rep. Biskupski and Rep. D. Clark absent for the vote.

MOTION:    Rep. Dunnigan moved to amend as follows:

1.    Page 3, Lines 57 through 71 :    

             57          (1) (a) A person shall report a fraudulent insurance act to the department if:
             58          (i) the person has a good faith belief on the basis of a preponderance of the evidence
             59      that
{   an act that   }        a fraudulent insurance act       is being, will be, or has been

committed [related to title insurance shall report


             60      the fraudulent act to the commissioner in a writing that provides]
{   is a fraudulent insurance act   } ;

             61      and

The motion to amend passed unanimously, with Rep. Biskupski and Rep. D. Clark absent for the vote.

MOTION:    Rep. Kiser moved to pass the bill out favorably as amended. The motion passed unanimously, with Rep. Biskupski and Rep. D. Clark absent for the vote.

S.B. 153    Malpractice Liability During Pandemic Event (Sen. G. Bell)

Rep. Garn introduced the bill to the committee with the assistance of Dave Gibson, Utah Hospital and Health Association.

MOTION:    Rep. Froerer moved to pass the bill out favorably. The motion passed unanimously, with Rep. Dunnigan and Rep. D. Clark absent for the vote.

MOTION:    Rep. Ferry moved that S.B. 153 be placed on the Consent Calendar. The motion passed unanimously, with Rep. Dunnigan and Rep. D. Clark absent for the vote.

S.B. 150    Property Exempt from Execution (Sen. L. Hillyard)

Sen Hillyard introduced the bill to the committee.

MOTION:    Rep. Dunnigan moved to pass the bill out favorably. The motion passed unanimously.

MOTION:    Rep. Dunnigan moved that S.B. 150 be placed on the Consent Calendar. The motion passed unanimously.


MOTION:    Rep. Neuenschwander moved to adjourn the meeting. The motion passed unanimously.

Chair S. Clark adjourned the meeting at 9:35 a.m.



                    _________________________
                     Rep. Stephen D. Clark, Chair