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MINUTES OF THE HOUSE
BUSINESS AND LABOR
STANDING COMMITTEE
Room 405 State Capitol
February 4, 2004

Members Present:    Rep. Katherine M. Bryson, Chair
            Rep. Michael Morley, Vice Chair            
            Rep. J. Stuart Adams        
            Rep. David Clark
            Rep. Stephen D. Clark
            Rep. Carl W. Duckworth
            Rep. Jim Dunnigan
            Rep. Ben C. Ferry
            Rep. Neil A Hansen
            Rep. Todd E. Kiser
            Rep. R. Curt Webb
            
Members Absent:    Rep. Jackie Biskupski
            Rep. Craig W. Buttars
            
Staff Present:    Mark Steinagel, Policy Analyst            
            Linda Error, Committee Secretary

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

Rep. Bryson called the meeting to order at 7:40 a.m.

MOTION:    Rep. Hansen moved to approve the minutes of the February 2, 2004 meeting. The         motion passed unanimously, with Rep. D. Clark, Rep. S. Clark, Rep. Duckworth,         and Rep. Ferry absent for the vote.

H.B. 171    Insurance Fraud Amendments (Rep. J. Ferrin)

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

1.    Page 8, Lines 233 through 243 :    

             233          31A-31-110. Mandatory reporting of fraudulent title insurance acts -- Failure to
             234      report -- Criminal penalties.
             235          (1) A
[[   person   ]]        title insurer       having knowledge      [[   or a reasonable belief   ]] that a fraudulent insurance act is

             236      being, will be, or has been committed related to title insurance shall report the fraudulent act to
             237      the commissioner in a writing that provides information in detail relating to:

             238          (a) the fraudulent insurance act; and
             239          (b) the perpetrator of the fraudulent insurance act.
             240          (2) (a) Any
[[   person   ]]        title insurer       required to report a fraudulent insurance act under Subsection (1)

             241      who willfully fails to comply with Subsection (1) is guilty of a class B misdemeanor.
             242          (b) An action for failure to comply with Subsection (1) shall be commenced within
             243      four years from the date on which the
[[   person   ]]        title insurer       :


Rep. Ferrin explained the bill, assisted by Joe Christensen, Director, Insurance Fraud Division.

Rep. Bryson relinquished the chair to Rep. Morley.

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

H.B. 172    Insurance Liquidation Law Amendments (Rep. J. Ferrin)

Rep. Ferrin explained the bill.

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

1.    Page 3, Lines 77 through 80 :    

             77          (ii)
[[   for any bad or doubtful debts,   ]] perform any other acts necessary or expedient to

             78      collect, conserve, or protect its assets or property, including selling, compounding,
             79      compromising, or assigning
  any bad or doubtful debts       for collection, upon the terms and conditions as [he] the liquidator

             80      considers best[, any bad or doubtful debts]; and

2.    Page 6, Lines 177 through 179 :    

             177          (c) If a reinsurer does not pay the amount billed under Subsection (2)(b) within
[[   60   ]]        180       days

             178      after
[[   receipt of   ]]        the reinsurer has received       the billing, interest on the unpaid billed amount will        begin to       accrue at the statutory legal

             179      rate provided in Subsection 15-1-1 (2)
  , except that all or a portion of the interest may be waived as part of an arbitration proceeding       .


Spoke for the bill :    Gary Thorpe, Reinsurance Association of America

MOTION:    Rep. Hansen moved to pass the bill out favorably. The motion passed              unanimously, with Rep. Duckworth, and Rep. Ferry absent for the vote.

H.B. 245    Insurance Law Revisions (Rep. J. Ferrin)

Rep. Ferrin explained the bill, assisted by Mickey Braun, Assistant Commissioner, Utah State Insurance Department, and Tomi Ossana, Executive Director, HIP Utah.

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

1.    Page 62, Lines 1902 through 1907 :    

             1902          (vii)
[[   [   ]] the individual is      [[   ]   ]] [an eligible employee, a dependent of an eligible employee, or a

             1903      member of]
[[   as for an employer group that offers health insurance or a self-insurance

             1904      arrangement to [all] its eligible employees, dependents, or members[;], the individual is   ]] :
             1905          (A) an eligible employee;
             1906          (B) a dependent of an eligible employee; or
             1907          (C) a member
  of an employer group that offers health insurance or a self-insurance arrangement to its eligible employees, dependents, or members       ;


The motion to amend passed unanimously.

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

1.    Page 63, Lines 1926 through 1930 :    

             1926          (iv)
[[   as for an   ]]        is            [[   employer group that offers health insurance or a self-insurance

             1927      arrangement to its eligible employees, dependents, or members, the individual is   ]] :
             1928          (A) an eligible employee;
             1929          (B) a dependent of an eligible employee; or
             1930          (C) a member
  of an employer group that offers health insurance or a self-insurance arrangement to its eligible employees, dependents, or

members       ;



The motion to amend passed unanimously.

Spoke for the bill:    Kelly Atkinson, Executive Director, Utah Health Insurance Association

MOTION:    Rep. Bryson moved that the HIP Utah board report to interim committee after         Aug 1, 2004 and before Nov 1, 2004. The motion passed unanimously.

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

S.B. 83    Uninsured Employers' Fund Amendments (Sen. E. Mayne)

Sen. Mayne explained the bill, assisted by Joyce Sewell, Director, Industrial Accidents, Labor Commission.

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

S.B. 96    Utah Occupational Safety and Health Act Amendments (Sen. E. Mayne)

Sen. Mayne explained the bill, assisted by Lee Ellertson, Labor Commission, and Bill Adams, technical advisor, Utah Occupational Safety and Health Program .

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

Rep. Morley adjourned the meeting at 9:12 a.m.










                    ____________________________
                     Rep. Katherine Bryson, Chair