80th Legislative Session _ 2005

Committee: House Commerce
Thursday, February 10, 2005

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Boomgarden
P    Bradford
P    Elliott
P    Faehn
P    Hunt
P    Krebs
E    Kroger
P    Pederson (Gordon)
P    Schafer
P    Street
P    Willadsen
P    Rounds, Vice-Chair
P    Sebert, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Sebert.

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 8, 2005

Moved by:    Willadsen
Second by:    Pederson (Gordon)
Action:    Prevailed by voice vote.

         HB 1175: allow physicians to receive payment for services provided to an injured party when the injured party recovers compensation for the injury from another person.

Presented by:    Representative Don Van Etten
Proponents:    Dean Krogman, SD State Medical Assn.

        Tom Barnett, State Bar Association
        Dave Hewitt, SDAHO
Opponents:    Dick Gregerson, Wellmark

MOTION:     AMEND HB 1175

1175jc
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 44-12-1 be amended to read as follows:

     44-12-1.   Any person, association, limited liability company, corporation, county, or other institution, including a municipal corporation, maintaining a hospital licensed under the laws of the State of South Dakota that furnishes hospitalization or other service of any other nature in the treatment of or in connection with an injury not covered by the Workers' Compensation Act, or any physician licensed pursuant to chapter 36-4 or any chiropractor licensed pursuant to chapter 36-5 who furnishes any service of any nature in the treatment of or in connection with an injury not covered by the Workers' Compensation Act, if the injured party asserts or maintains a claim against another for damages on account of the injury, has a lien upon that part going or belonging to the injured party of any recovery or sum had or collected or to be collected by the injured party, or by the injured party's heirs or personal representatives in case of the injured party's death, whether by judgment or by settlement or compromise to the amount of the reasonable and necessary charges of the hospital , physician, or chiropractor for the treatment, care, and maintenance of the injured party in the hospital by the provider up to the date of payment of the damages.

     Section 2. That § 44-12-4 be amended to read as follows:

     44-12-4.   No such lien may be is effective, however, unless a written notice containing the name and address of the injured party, the date of occurrence of the injury, the name and location of the hospital , physician, or chiropractor , and the name of the person, firm, limited liability company, or corporation alleged to be liable to the injured party for the injuries received, is filed in the office of the register of deeds of the county in which the hospital is located or health care services for the injury were provided , before the payment of any moneys to the injured party, the injured party's attorneys or legal representative, as compensation for the injury.

     Section 3. That § 44-12-5 be amended to read as follows:

     44-12-5.   Each register of deeds shall provide a suitable, well-bound book to be called the hospital and medical care provider lien docket in which, upon the filing of any lien claim under the provisions of this chapter, the register of deeds shall enter the name and address of the injured person, the name of the person, firm, or corporation alleged to be liable for the injury, the date of occurrence of the injury and the name and location of the hospital , physician, or chiropractor making the claim. The register of deeds shall make a proper index of the claim in the name of the injured person and shall charge a fee in accordance with subdivision 7-9-15(3).

     Section 4. That § 44-12-6 be amended to read as follows:

     44-12-6.   The hospital , physician, or chiropractor shall also mail, postage prepaid, a copy of the notice required by § 44-12-4 with a statement of the date of filing of the notice to the person, firm, limited liability company, or corporation alleged to be liable to the injured party for the injury sustained before the payment of any moneys to the injured party, the injured party's attorney or legal representative, as compensation for the injury.

     Section 5. That § 44-12-7 be amended to read as follows:

     44-12-7.   Such The hospital , physician, or chiropractor shall mail a copy of such the notice to any insurance carrier which has insured such the person, firm, or corporation against such liability. Such The person, firm, or corporation alleged to be liable to the injured person shall, upon request of the hospital , physician, or chiropractor , disclose the name of the insurance carrier which has insured such the person, firm, or corporation against such liability.

     Section 6. That § 44-12-8 be amended to read as follows:

     44-12-8.   Any person making any payment to such the injured party or to the injured party's attorney, heir, or legal representative as compensation for the injury sustained, after the filing and mailing of the notice, without paying to the hospital , physician, or chiropractor the amount of its lien or so much thereof as can be satisfied out of the moneys due under any final judgment or compromise or settlement agreement, after paying the amount of any prior lien, is liable, for a period of one year from the date of payment of moneys to the injured party or the injured party's heir, attorney, or legal representative, as provided in this section, to the hospital , physician, or chiropractor for the amount which the hospital , physician, or chiropractor was entitled to receive as provided in this section. Any such hospital , physician, or chiropractor may, within such period, enforce the lien by a suit at law against the person, firm, limited liability company, or corporation making such the payment.

     Section 7. That § 44-12-9 be amended to read as follows:

     44-12-9.   Any person, firm, or corporation legally liable for such the lien or against whom a claim shall be is asserted for compensation for such the injury, shall be permitted may, after waiver or expiration of any privilege granted the injured party under the provisions of § 19-2-3 or any other statute, to examine the records of any such hospital , physician, or chiropractor in reference to such the treatment, care , and maintenance of such the injured person, with respect to the injuries arising out of said the accident.

     Section 8. That chapter 44-12 be amended by adding thereto a NEW SECTION to read as follows:

     If after having filed a lien pursuant to this chapter, the hospital, physician, or chiropractor is afterward satisfied by payment, foreclosure, compromise, or other method, the lienholder shall file a satisfaction with the register of deeds within thirty days of payment.

     Section 9. That chapter 44-12 be amended by adding thereto a NEW SECTION to read as follows:

     The existence and amount of a lien filed pursuant to this chapter is inadmissible in the legal proceeding in which the injured person has asserted a claim against another person for damages based on the injury.

     Section 10. That chapter 44-12 be amended by adding thereto a NEW SECTION to read as follows:

     This chapter provides the exclusive method for a hospital, physician, or chiropractor to obtain a nonjudicial lien on the part or share to be collected by the injured party or the injured party's heirs or representatives from a third party alleged to be responsible for the injury."

Moved by:    Rounds
Second by:    Hunt
Action:    Prevailed by voice vote.

MOTION:     AMEND THE AMENDMENT

1175jd
     In the previously adopted amendment (1175jc), after section 10, insert:
"
     Section 11. That chapter 44-12 be amended by adding thereto a NEW SECTION to read as follows:

     Before filing a lien pursuant to this chapter, a hospital, physician, or chiropractor shall first submit a claim to any health insurer or other third party payer that provides covered health benefits for the injured party. If the hospital, physician, or chiropractor has received full payment from a health insurer or other third party payer as defined by the terms of a contract between the hospital, physician, or chiropractor and the health insurer or other third party payer, this chapter does not apply. If after having filed a lien pursuant to this chapter, the hospital, physician, or chiropractor accepts payment from a health insurer or any other third party payer, the lien holder must file a satisfaction with the register of deeds within thirty days of such acceptance.".
.

Moved by:    Rounds
Second by:    Hunt
Action:    Failed by voice vote.

MOTION:     DO PASS HB 1175 AS AMENDED

Moved by:    Pederson (Gordon)
Second by:    Faehn
Action:    Prevailed by roll call vote.(10-2-1-0)

Voting Yes:    Boomgarden, Bradford, Elliott, Faehn, Krebs, Pederson (Gordon), Schafer, Street, Willadsen, Sebert

Voting No:    Hunt, Rounds

Excused:    Kroger

MOTION:     TO AMEND TITLE OF HB 1175

1175tta
     On page 1, line 1 of the printed bill, delete everything after " Act to " and insert "extend certain lien provisions to physicians and chiropractors.".

     On page 1 , delete lines 2 and 3 .

Moved by:    Pederson (Gordon)
Second by:    Boomgarden
Action:    Prevailed by voice vote.

         HB 1248: revise certain provisions regarding money lenders.

Presented by:    Representative Ed McLaughlin
Proponents:    Roger Novotny, Division of Banking
Opponents:    Brett Koenecke, Community Financial Services Assn. Of America
        Harry Christianson, North American Title Loans

MOTION:     DEFER HB 1248 UNTIL FEBRUARY 15, 2005

Moved by:    Hunt

Second by:    Rounds
Action:    Failed by voice vote.

MOTION:     DO PASS HB 1248

Moved by:    Rounds
Second by:    Pederson (Gordon)
Action:    Failed by roll call vote.(6-5-2-0)

Voting Yes:    Boomgarden, Bradford, Pederson (Gordon), Schafer, Street, Rounds

Voting No:    Elliott, Faehn, Hunt, Willadsen, Sebert

Excused:    Krebs, Kroger

Chair deferred action until later this morning.

         HB 1218: provide disclosure of fee schedules between health carriers and participating providers.

Presented by:    Representative Jean Hunhoff
Proponents:    Darla Pollman-Rogers, Wellmark Blue Cross Blue Shield of South Dakota
        Tim Schwasinger, Avera
        David Christensen, Avera Health
        Dave Hewitt, SDAHO
        Jeremiah Murphy, Avera Health
        Bob Riter Jr., SD Optometric Society
Opponents:    Dennis Duncan, DakotaCare

MOTION:     AMEND HB 1218

1218ja
     On page 3, line 17 of the printed bill, delete everything after " schedule " and insert " , allowable fee, or other information that could apply to services furnished by such participating provider. ".

     On page 3 , line 18, delete everything before " For " .

     On page 3 , line 19, delete " expected " .

     On page 3 , line 20, after " compensation " insert " that may be ".

     On page 3 , line 21, after " by the " insert " participating ".

     On page 3 , line 22, delete " amount " and insert " coinsurance, copayments, and deductibles ".

     On page 3 , line 23, after " the " insert " benefit ".

     On page 3 , line 23, after " contract. " insert " Disclosure of this information does not constitute a guarantee of payment under the terms of the applicable benefit contract. ".

     On page 4 , line 2, after " information " insert " . A health carrier is only obligated to honor two such requests made annually by such participating provider ".

Moved by:    Willadsen
Second by:    Elliott
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1218 AS AMENDED

Moved by:    Boomgarden
Second by:    Street
Action:    Failed by roll call vote.(6-4-3-0)

Voting Yes:    Boomgarden, Elliott, Hunt, Krebs, Street, Sebert

Voting No:    Faehn, Pederson (Gordon), Willadsen, Rounds

Excused:    Bradford, Kroger, Schafer

MOTION:     DEFER HB 1218 TO THE 41ST LEGISLATIVE DAY

Moved by:    Pederson (Gordon)
Second by:    Willadsen
Action:    Failed by roll call vote.(4-6-3-0)

Voting Yes:    Faehn, Pederson (Gordon), Willadsen, Rounds

Voting No:    Boomgarden, Elliott, Hunt, Krebs, Street, Sebert

Excused:    Bradford, Kroger, Schafer

MOTION:     DEFER HB 1218 UNTIL FEBRUARY 15, 2005

Moved by:    Hunt
Second by:    Rounds
Action:    Prevailed by voice vote.

         HB 1248: revise certain provisions regarding money lenders.

The committee returned to discussion and action on this bill.

MOTION:     AMEND HB 1248

1248jb
     On page 1, line 7 of the printed bill, after " partners, " insert " members, ".

     On page 1 , line 8, overstrike " as required by " .

     On page 1 , line 8, overstrike " by rule or order " and insert " may consider necessary ".

     On page 2 , line 14, delete " and the capital ".

     On page 2 , line 15, delete " adequacy ".

     On page 3 , line 13, after " license " insert " . A licensee aggrieved by such order may appeal pursuant to chapters 1-26 and 1-26D ".

     On page 3 , line 15, overstrike " chapter " and insert " chapters ".

     On page 3 , line 16, after " 1-26 " insert " and 1-26D ".

     On page 4 , line 1, overstrike " also " .

     On page 4 , line 1, after " brought " insert " in circuit court ".

     On page 4 , line 4, delete everything after " injunction. " .

     On page 4 , delete lines 5 to 24 , inclusive.

     On page 5 , delete lines 1 to 8 , inclusive.

     On page 5 , line 10, overstrike " shall " and insert " may ".

     On page 5 , line 10, after " annually " insert " , or as often as the director considers necessary, ".
     On page 5 , line 11, overstrike everything after " inclusive. " .

     On page 5 , line 12, overstrike everything before " The " .

     On page 5 , delete lines 17 to 24 , inclusive.

     On page 6 , delete lines 1 and 2 .

     On page 6 , line 8, delete " division " and insert "director".

     On page 6 , line 9, delete " its " and insert "the director's".

     On page 6 , delete lines 10 to 14 , inclusive, and insert:

"
     Section 10. That chapter 54-4 be amended by adding thereto a NEW SECTION to read as follows:

     A person licensed pursuant to this Act shall appoint a resident agent for service of process and provide notice of such appointment to the director.

     Section 11. That chapter 54-4 be amended by adding thereto a NEW SECTION to read as follows:

     A person licensed pursuant to this Act shall consent to be sued in the circuit courts of the state for purposes of the director enforcing any provision of chapter 54-4 and any rules promulgated pursuant to chapter 54-4. The consent to suit shall be demonstrated by the execution and submission of a consent to suit form prepared by the director, with proof of authority to consent and execute the form.".

Moved by:    Rounds
Second by:    Street
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1248 AS AMENDED

Moved by:    Rounds
Second by:    Pederson (Gordon)
Action:    Prevailed by roll call vote.(7-3-3-0)

Voting Yes:    Boomgarden, Elliott, Faehn, Krebs, Pederson (Gordon), Street, Rounds


Voting No:    Hunt, Willadsen, Sebert

Excused:    Bradford, Kroger, Schafer

         HB 1256: regulate residential contractors.

The Chair deferred HB 1256 until February 15, 2005.

         HB 1118: revise certain provisions regarding the interest rate on past due moneys.

The Chair deferred HB 1118 until February 15, 2005.

MOTION:     ADJOURN

Moved by:    Rounds
Second by:    Pederson (Gordon)
Action:    Prevailed by voice vote.

Cindy Tryon

____________________________

Committee Secretary
Lou Sebert, Chair

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