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MINUTES OF THE SENATE BUSINESS & LABOR
 STANDING COMMITTEE
THURSDAY, FEBRUARY 21, 2008, 8:15 A.M.
ROOM W015, WEST OFFICE BUILDING
STATE CAPITOL COMPLEX


Members Present:    Sen. Kevin VanTassell, Chair
        Sen. Karen Mayne         Sen. Wayne Niederhauser
        Sen. Carlene Walker

Members Excused:    Sen. Gene Davis
        Sen. Dan Eastman
        Sen. Bill Hickman
    
Staff Present:    Allison Nicholson, Policy Analyst
        Karen Allred, Committee Secretary

Public Speakers Present:    Scott Marsell, Utah Building Association
        Robert Moyle, Structural Engineers of Utah
        David Jenkins, structural engineer
        Kelly Atkinson, Executive Director, Utah Health Insurance
        Elizabeth Garbe, Coverage Initiatives Director, Utah Health Policy          Project
        Kent Mitchie, Commissioner, Insurance Department         Leonard Gilroy, Division of Government Reform, Reason Foundation
        Mark Steinagel, Director, Real Estate Division, Department of          Commerce

A list of visitors and a copy of handouts are filed with the committee minutes.

Chair VanTassell called the meeting to order at 8:23 a.m.

1.    S.B. 200 Professional Engineers Licensing Amendments (F. Fife)

    Sen. Fife introduced the bill and the following amendments were distributed:

1.    Page 4, Line 115 through Page 5, Line 142 :    

             115          (E) jails and detention facilities
  with a gross area greater than 3,000 square feet       ; or

             116          (F) an occupancy with an occupant load greater than 5,000;
             117          (ii) buildings and other structures designated as essential facilities, including:
             118          (A) hospitals and other health care facilities having surgery or emergency treatment
             119      facilities
  with a gross area greater than 3,000 square feet       ;

             120
         (B) fire, rescue, and police stations and emergency vehicle garages
  with a mean height greater than 24 feet or a gross area greater than 5,000 square feet       ;

             121          (C) designated earthquake, hurricane, or other emergency shelters wth a
  gross area greater than 3,000 square feet       ;

             122          (D) designated emergency preparedness, communication, and operation centers and
             123      other buildings required for emergency response
  witha mean height more than 24 feet or a gross area greater than 5,000 square feet       ;

             124          (E) power-generating stations and other public utility facilities required as emergency
             125      backup facilities
  with a gross area greater than 3,000 square feet       ;

             126          (F) structures
  with a mean height more than 24 feet or a gross area greater than 5,000 square feet       containing highly toxic materials as defined by the division by rule,

             127      where the quantity of the material exceeds the maximum allowable quantities set by the
             128      division by rule;
  and      

             129          (G) aviation control towers, air traffic control centers, and emergency aircraft hangars
  at commercial service and cargo air services airports as defined by the Federal Aviation Administration with a mean height greater than 35 feet or a gross area greater than 20,000 square feet       ;

             130
{  
     or
             131          (H) buildings having critical national defense functions;   } and
             132          (iii) buildings and other structures requiring special consideration, including:
             133          (A) structures or buildings that are:
             134          (I) normally occupied by human beings; and
             135          (II) five stories or more in height; or
             136          (III) that have an average roof height more than 60 feet above the average ground level
             137      measured at the perimeter of the structure; or
             138          (B) all buildings over 60,000 aggregate gross square feet in area; and
             139          (b)
  includes the definition of       professional engineering or the practice of professional engineering as      {   defined in

             140      this section   }
  provided in Subsection (9)       .

             141          (15) "Structure" means that which is built or constructed, an edifice or building of any
             142      kind, or [any] a piece of work artificially built up or composed of parts joined together in

2.    Page 6, Lines 179 through 180 :    

             179          (e) have successfully completed three years of licensed professional engineering

             180      experience established by rule by the division in collaboration with the board
  , except that prior to January 1, 2009, an applicant for licensure may submit a signed affidavit in a form prescribed by the division stating that the applicant is currently engaged in the practice of structural engineering       ;


3.    Page 6, Line 182 through Page 7, Line 187 :    

             182      collaboration with the board[; and], except that prior to January 1, 2009, an applicant for
             183      licensure may submit a signed affidavit in a form prescribed by the division stating
{   :

             184          (i)   } that the applicant is currently engaged in the practice of structural engineering;
{   and

             185          (ii) the applicant is competent to engage in the practice of structural engineering as
             186      defined in Section 58-22-102 ;   } and
             187          (g) meet with the board or representative of the division upon request for the purpose

4.    Page 10, Line 305 through Page 11, Line 307 :    

             305          (4) engaging in the practice of engineering, structural engineering, or surveying as set
             306      forth in Subsections 58-22-102 (9), (11), and (14),
  if the person has not been licensed under this chapter,       except as provided in Section 58-1-307 or

             307      Subsections 58-3a-304 (1)(b) through (f); or
    
     MOTION: Sen. VanTassell moved to adopt the amendments.

    The motion passed unanimously with Sen. Walker absent for the vote.

    Scott Marsell, Utah Building Association, and Robert Moyle, Structural Engineers of Utah,     spoke in support of the bill.

    David Jenkins, structural engineer, spoke in opposition to the bill.

     MOTION: Sen. Walker moved to pass the bill out favorably as amended.

    The motion passed unanimously with Sen. Niederhauser absent for the vote.

2.    H.B. 342 Insurance Code Amendments (J. Dunnigan)

    Rep. Dunnigan introduced the bill and the following amendments were distributed:

1.    Page 2, Lines 38 through 40 :    

             38      Insurance Act;
  and      

             39          
{   .    addresses when individual carriers must accept individuals; and   }

             40          .    makes additional technical amendments.

2.    Page 3, Line 70 :    

             70          
{   31A-30-108, as last amended by Laws of Utah 2004, Chapters 2 and 329   }


3.    Page 12, Lines 341 through 354
    House Floor Amendments
    2-12-2008 :    

             341          (50) (a) "Eligible employee" means:
             342          (i) an employee who:
             343          (A) works on a full-time basis; and
             344          (B) has a normal work week of 30 or more hours;
{   [   } or      {   ]   }

             345          
{   [   } (ii) a person described in Subsection (50) (b).      {   ]   }

             346          
{   [   } (b) "Eligible employee" includes, if the individual is included under a health benefit

             347      plan of a small employer:
{   ]   }

             348          
{   [   } (i)      {   ]   }      {   (ii)   } a sole proprietor;

             349          
{   [   } (ii)      {   ]   }      {   (iii)   } a partner in a partnership; or

             350          
{   [   } (iii)      {   ]   }      {   (iv)   } an independent contractor.

             351          
{   [   } (c)      {   ]   }      {   (b)   } "Eligible employee" does not include H. [[] , unless eligible under Subsection

             352      (50)(b): (i) []] .H an individual who works on a temporary or substitute basis for a small
             352a      employer H. [[] ; []] [.]
             353           [[] (ii) an employer's spouse; or []]
             354           [[] (iii) a dependent of an employer. []] .H

4.    Page 64, Line 1980 through Page 65, Line 1983 :    

             1980          (4) The Basic Health Care Plan adopted by the commissioner under this section shall
             1981      provide for:
             1982          (a) a lifetime maximum benefit per person not to exceed $1,000,000;
             1983          (b) an annual maximum benefit per person not
{   to exceed $300,000   }        less than $250,000       ;


5.    Page 103, Line 3166 through Page 106, Line 3269 :    

             3166     
{       Section 26. Section 31A-30-108 is amended to read:

             3167          31A-30-108. Eligibility for small employer and individual market.
             3168          (1) (a) Small employer carriers shall accept residents for small group coverage as set
             3169      forth in the Health Insurance Portability and Accountability Act, P.L. 104-191, 110 Stat. 1962,
             3170      Sec. 2701(f) and 2711(a).
             3171          (b) Individual carriers shall accept residents for individual coverage pursuant:
             3172          (i) to P.L. 104-191, 110 Stat. 1979, Sec. 2741(a)-(b); and
             3173          (ii) Subsection (3).
             3174          (2) (a) Small employer carriers shall offer to accept all eligible employees and their
             3175      dependents at the same level of benefits under any health benefit plan provided to a small
             3176      employer.
             3177          (b) Small employer carriers may:
             3178          (i) request a small employer to submit a copy of the small employer's quarterly income
             3179      tax withholdings to determine whether the employees for whom coverage is provided or
             3180      requested are bona fide employees of the small employer; and
             3181          (ii) deny or terminate coverage if the small employer refuses to provide documentation
             3182      requested under Subsection (2)(b)(i).
             3183          (3) Except as provided in Subsections (5) and (6) and Section 31A-30-110 , individual
             3184      carriers shall accept for coverage individuals to whom all of the following conditions apply:
             3185          (a) the individual is not covered or eligible for coverage:
             3186          (i) (A) as an employee of an employer;
             3187          (B) as a member of an association; or
             3188          (C) as a member of any other group; and
             3189          (ii) under:
             3190          (A) a health benefit plan; or
             3191          (B) a self-insured arrangement that provides coverage similar to that provided by a
             3192      health benefit plan as defined in Section 31A-1-301 ;
             3193          (b) the individual is not covered and is not eligible for coverage under any public
             3194      health benefits arrangement including:

             3195          (i) the Medicare program established under Title XVIII of the Social Security Act;
             3196          [(ii) the Medicaid program established under Title XIX of the Social Security Act;]
             3197          [(iii)] (ii) any act of Congress or law of this or any other state that provides benefits
             3198      comparable to the benefits provided under this chapter; or
             3199          [(iv)] (iii) coverage under the Comprehensive Health Insurance Pool Act created in
             3200      Chapter 29, Comprehensive Health Insurance Pool Act;
             3201          (c) unless the maximum benefit has been reached the individual is not covered or
             3202      eligible for coverage under any:
             3203          (i) Medicare supplement policy;
             3204          (ii) conversion option;
             3205          (iii) continuation or extension under COBRA; or
             3206          (iv) state extension;
             3207          (d) the individual has not terminated or declined coverage described in Subsection
             3208      (3)(a), (b), or (c) within 93 days of application for coverage, unless the individual is eligible for
             3209      individual coverage under P.L. 104-191, 110 Stat. 1979, Sec. 2741(b), in which case, the
             3210      requirement of this Subsection (3)(d) does not apply; and
             3211          (e) the individual is certified as ineligible for the Health Insurance Pool if:
             3212          (i) the individual applies for coverage with the Comprehensive Health Insurance Pool
             3213      within 30 days after being rejected or refused coverage by the covered carrier and reapplies for
             3214      coverage with that covered carrier within 30 days after the date of issuance of a certificate
             3215      under Subsection 31A-29-111 (5)(c); or
             3216          (ii) the individual applies for coverage with any individual carrier within 45 days after:
             3217          (A) notice of cancellation of coverage under Subsection 31A-29-115 (1); or
             3218          (B) the date of issuance of a certificate under Subsection 31A-29-111 (5)(c) if the
             3219      individual applied first for coverage with the Comprehensive Health Insurance Pool.
             3220          (4) (a) If coverage is obtained under Subsection (3)(e)(i) and the required premium is
             3221      paid, the effective date of coverage shall be the first day of the month following the individual's
             3222      submission of a completed insurance application to that covered carrier.
             3223          (b) If coverage is obtained under Subsection (3)(e)(ii) and the required premium is
             3224      paid, the effective date of coverage shall be the day following the:
             3225          (i) cancellation of coverage under Subsection 31A-29-115 (1); or

             3226          (ii) submission of a completed insurance application to the Comprehensive Health
             3227      Insurance Pool.
             3228          (5) (a) An individual carrier is not required to accept individuals for coverage under
             3229      Subsection (3) if the carrier issues no new individual policies in the state after July 1, 1997.
             3230          (b) A carrier described in Subsection (5)(a) may not issue new individual policies in
             3231      the state for five years from July 1, 1997.
             3232          (c) Notwithstanding Subsection (5)(b), a carrier may request permission to issue new
             3233      policies after July 1, 1999, which may only be granted if:
             3234          (i) the carrier accepts uninsurables as is required of a carrier entering the market under
             3235      Subsection 31A-30-110 ; and
             3236          (ii) the commissioner finds that the carrier's issuance of new individual policies:
             3237          (A) is in the best interests of the state; and
             3238          (B) does not provide an unfair advantage to the carrier.
             3239          (6) (a) If the Comprehensive Health Insurance Pool as set forth under Title 31A,
             3240      Chapter 29, is dissolved or discontinued, or if enrollment is capped or suspended, an individual
             3241      carrier may decline to accept individuals applying for individual enrollment, other than
             3242      individuals applying for coverage as set forth in P.L. 104-191, 110 Stat. 1979, Sec. 2741
             3243      (a)-(b).
             3244          (b) Within two calendar days of taking action under Subsection (6)(a), an individual
             3245      carrier will provide written notice to the Utah Insurance Department.
             3246          (7) (a) If a small employer carrier offers health benefit plans to small employers
             3247      through a network plan, the small employer carrier may:
             3248          (i) limit the employers that may apply for the coverage to those employers with eligible
             3249      employees who live, reside, or work in the service area for the network plan; and
             3250          (ii) within the service area of the network plan, deny coverage to an employer if the
             3251      small employer carrier has demonstrated to the commissioner that the small employer carrier:
             3252          (A) will not have the capacity to deliver services adequately to enrollees of any
             3253      additional groups because of the small employer carrier's obligations to existing group contract
             3254      holders and enrollees; and
             3255          (B) applies this section uniformly to all employers without regard to:

             3256          (I) the claims experience of an employer, an employer's employee, or a dependent of an
             3257      employee; or
             3258          (II) any health status-related factor relating to an employee or dependent of an
             3259      employee.
             3260          (b) (i) A small employer carrier that denies a health benefit product to an employer in
             3261      any service area in accordance with this section may not offer coverage in the small employer
             3262      market within the service area to any employer for a period of 180 days after the date the
             3263      coverage is denied.
             3264          (ii) This Subsection (7)(b) does not:
             3265          (A) limit the small employer carrier's ability to renew coverage that is in force; or
             3266          (B) relieve the small employer carrier of the responsibility to renew coverage that is in
             3267      force.
             3268          (c) Coverage offered within a service area after the 180-day period specified in
             3269      Subsection (7)(b) is subject to the requirements of this section.
  }
Renumber remaining sections accordingly


     MOTION: Sen. Mayne moved to adopt the amendments.

    The motion passed unanimously with Sen. Niederhauser absent for the vote..         
    Kelly Atkinson, Executive Director, Utah Health Insurance; Elizabeth Garbe, Coverage     Initiatives Director, Utah Health Policy Project; and Kent Mitchie, Commissioner,     Insurance Department; spoke in support of the bill.

     MOTION: Sen. Mayne moved to pass the bill out favorably as amended.

    The motion passed unanimously with Sen. Niederhauser absent for the vote.

     MOTION: Sen. Walker moved to place the bill on the Consent Calendar.

    The motion passed unanimously with Sen. Niederhauser absent for the vote.

3.    H.B. 184 Construction Amendments (M. Morley)

    Rep. Morley introduced the bill and Sen. Jenkins proposed the following amendments:

1.    Page 1, Lines 17 through 18
    House Committee Amendments
    2-8-2008 :    

             17      Other Special Clauses:
             18          H. [None] This bill takes effect on
{   January 1, 2009   }        July 1, 2008       . .H


2.    Page 2, Lines 48a through 48b
    House Committee Amendments
    2-8-2008 :    

             48a      H. Section 2. Effective Date
             48b          This bill takes effect on
{   January 1, 2009   }        July 1, 2008       . .H


     MOTION: Sen. Walker moved to adopt the amendments.

    The motion passed unanimously.

     MOTION: Sen. Walker moved to pass the bill out favorably as amended.

    The motion passed unanimously.

     MOTION: Sen. Walker moved to place the bill on the Consent Calendar.

    The motion passed unanimously.

4.    2nd Sub. H.B. 75 Inventory and Review of Commercial Activities (C. Frank)

    Rep. Frank introduced the bill.

    Leonard Gilroy, Division of Government Reform, Reason Foundation, spoke in support of     the bill.

     MOTION: Sen. Niederhauser moved to pass the bill out favorably.

    The motion passed unanimously.

5.    2nd Sub. H.B. 346 Division of Real Estate Related Amendments (G. Froerer)

    Sen. Niederhauser introduced the bill.

    Mark Steinagel, Director, Real Estate Division, Department of Commerce, further explained     and spoke in support of the bill.

     MOTION: Sen. Niederhauser moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Mayne absent for the vote.

     MOTION: Sen. Walker moved to adjourn.

    The motion passed unanimously with Sen. Mayne absent for the vote.

    Chair VanTassell adjourned the meeting at 9:14 a.m.






                _________________________________
                Sen. Kevin VanTassell, Committee Chair