80th Legislative Session _ 2005

Committee: Senate Commerce
Thursday, January 20, 2005

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Abdallah
P    Kelly
P    Koetzle
P    Schoenbeck
P    Sutton (Dan)
P    Broderick, Vice-Chair
P    McCracken, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator McCracken, Chair

MOTION:     TO APPROVE THE MINUTES OF JANUARY 18, 2005

Moved by:    Koetzle
Second by:    Kelly
Action:    Prevailed by voice vote.

MOTION:     INTRODUCE THE GOVERNOR'S BILL "AN ACT TO MODIFY PROVISIONS RELATING TO CHARGING EMPLOYERS FOR THE PAYMENTS OF UNEMPLOYMENT INSURANCE BENEFITS."

Moved by:    Broderick
Second by:    Abdallah
Action:    Prevailed by roll call vote.(6-0-1-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Sutton (Dan), Broderick, McCracken

Excused:    Schoenbeck


         SB 50: remove certain references regarding conversion from the requirements for continuation of group health coverage.

Proponents:    Randy Moses, Division of Insurance

MOTION:     AMEND SB 50

50ja
     On page 3, after line 14 of the printed bill, insert:

"      Section 10. That § 58-18C-1 be amended to read as follows:

     58-18C-1.   Every policy of group health insurance providing benefits for hospital or medical expenses delivered or issued for delivery in this state, by a commercial health insurance company, by a nonprofit medical and surgical service plan corporation, by a nonprofit hospital service plan corporation, by a health maintenance organization, or by any other similar mechanism shall, in addition to the provisions required by law, include the right of each employee, upon their employer ceasing operations and the termination of the policy or contract, to have the coverage continue for themselves and their eligible dependents, effective as of the date of loss of the previous group coverage, for a period of twelve months for which the employee shall be financially responsible. In addition, if an employer either fails to submit premium payment to the insurance company resulting in loss of coverage to its employees or cancels the coverage and does not notify the employees of such loss of coverage, the employees and their dependents are then eligible for continuation pursuant to this section if election is made within sixty days of the date of their being notified of the loss of coverage. The employer shall provide notice of any nonpayment of premiums or cancellation of coverage to employees as soon as reasonably possible but no later than ten days after the date of cancellation. If the employer fails to notify the employees and their dependents of the termination of coverage within ten days, the employees and dependents may not be denied coverage by the insurer provided timely election is made after actual receipt of notice. Whether notice is provided or not, the election period for continuation of coverage may expire ninety days from the date the group coverage terminated. Any premiums due for the continuation of coverage may be required to be paid by the employee or dependent as a condition of providing continuation coverage.

     Any former employee who is under continuation coverage at the time an employer ceases operation and terminates the policy, or fails to make premium payments resulting in loss of coverage, or cancels the insurance without notice, is eligible to remain on continuation coverage for the remainder of the continuation term or twelve months, whichever is less, if timely election is made and continuation payments received. ".
                        

Moved by:    Kelly
Second by:    Broderick
Action:    Prevailed by voice vote.



MOTION:     DO PASS SB 50 AS AMENDED

Moved by:    Kelly
Second by:    Sutton (Dan)
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

         SB 52: revise certain provisions regarding the payment of burial expenses by life insurers and fraternal benefit societies.

Proponents:    Randy Moses, Division of Insurance
        Dick Gregerson, Amer Council of Life Insurance
        Gary Steuck, Department of Revenue and Regulation
        Steve Bass, self, Pierre

MOTION:     DO PASS SB 52

Moved by:    Schoenbeck
Second by:    Broderick
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

         SB 68: revise certain provisions regarding the licensing of estheticians.

Proponents:    Marcia Hultman, Department of Labor
        Sue Monge, SD Cosmetology Commission

MOTION:     DO PASS SB 68

Moved by:    Schoenbeck
Second by:    Broderick
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

MOTION:     PLACE SB 68 ON CONSENT CALENDAR

Moved by:    Schoenbeck
Second by:    Sutton (Dan)
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Broderick
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

Grace Curtis

____________________________

Committee Secretary
Royal "Mac" McCracken, Chair


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