Senate Commerce Minutes 01/23/2001 10:00 AM

76^th Legislative Session _ 2001

Committee: Senate Commerce

Tuesday, January 23, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bogue
P    McCracken
P    Sutton (Dan)
P    Volesky
P    Whiting
P    Daugaard, Vice-Chair
P    Munson, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Munson

MOTION:     TO APPROVE THE MINUTES OF JANUARY 16, 2001

Moved by:    McCracken
Second by:    Daugaard
Action:    Prevailed by voice vote.

         SB 74: add the Student Loan Marketing Association to certain existing permitted investments of insurers and to declare an emergency.

Presented By:    Dave Gerdes, HEMAR Insurance Corporation of America (Handout #1)
Proponents:    Bob O'Connell, HEMAR Insurance Corp of America
        Darla Lyon, Division of Insurance

        Gavel passed to Vice Chair Daugaard

MOTION:     DO PASS SB 74

Moved by:    Whiting
Second by:    Volesky
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND SB 74

On page 2 of the printed bill, delete lines 5 to 7 , inclusive.

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

MOTION:     DO PASS SB 74 AS AMENDED

Moved by:    Bogue
Second by:    McCracken
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Daugaard, Munson

MOTION:     TO AMEND TITLE OF SB 74

On page 1, line 2 of the printed bill, delete " and to declare an emergency " .

Moved by:    Whiting
Second by:    Volesky
Action:    Prevailed by voice vote.

MOTION:     PLACE SB 74 ON CONSENT

Moved by:    Whiting
Second by:    Volesky
Action:    Prevailed by voice vote.

        Gavel returned to Chair Munson

SB 39: establish standards for disability insurance.

Presented By:    Randy Moses, Sept of Insurance
Proponents:    Roberta Vogt, AARP
Opponents:    Dick Tieszen, State Farm Insurance

MOTION:     AMEND SB 39

On page 2, line 17 of the printed bill, after " sixty-two " insert "or in the case of an employer group plan that has twenty or more employees, that periodic payments are actuarially equivalent regardless of age".

On page 3 , line 3, after " month " insert ", except if the plan is an employer plan with fifteen or more employees, then the maximum benefit period for pregnancy, childbirth, or miscarriage may not be less than the maximum benefit period for other covered disabilities".

On page 3 , line 10, after " . " insert "The provisions of this section do not apply to an employer plan if at least fifty percent of the covered employee's disability benefits are subject to federal income taxes.".

Moved by:    Daugaard
Second by:    Whiting
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 39 AS AMENDED

Moved by:    Whiting
Second by:    Daugaard
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 39 UNTIL THURSDAY, JANUARY 25

Moved by:    Volesky
Second by:    Whiting
Action:    Prevailed by voice vote.

         SB 3: revise the health information privacy rule-making authority of the director of insurance to include nonpublic personal financial information.

Presented By:    Senator Ham, Sponsor
Proponents:    Randy Moses, Div of Insurance

        Ron Schmidt, Amer Fam Ins
        Mike Shaw, Natl Assn of Independent Insurers
        Dick Gregerson, Amer Council of Life Insurers

MOTION:     AMEND SB 3

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

" Section 1. That chapter 58-2 be amended by adding thereto a NEW SECTION to read as follows:

The director shall promulgate rules pursuant to chapter 1-26 relating to the privacy of personal nonpublic financial information. The rules must be designed to provide privacy to the public of the personal nonpublic financial information that is shared or obtained in connection with insurance transactions. The director shall design the rules to protect the public's personal nonpublic financial information but also consider the impact of any rules on the cost and availability of insurance in this state. In promulgating the rules required by this Act the director shall give substantial consideration to the privacy standards contained in the NAIC Privacy of Consumer Financial and Health Information Regulation as in effect as of January 1, 2001, and otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the standards for personal nonpublic financial information. The rules may include the following as they relate to financial privacy:

(1) Definition of terms;

(2) Permitting the disclosure and use of personal nonpublic financial information between affiliates;

(3) Opt out procedures for the disclosure and use of personal nonpublic financial information with nonaffiliates;

(4) Notice and disclosure requirements and formats;

(5) Limits on disclosure of personal nonpublic financial information;

(6) Limits on redisclosure and reuse of personal nonpublic financial information;

(7) Limits on sharing account number information for marketing purposes;

(8) Exceptions for opt out and notice requirements; and

(9) Nondiscrimination requirements as they relate to persons who opt out or who do not grant an authorization.

Nothing in this Act applies to any rules that may be promulgated pursuant to § 58-2-40. Nothing in this Act may be construed to impair or conflict with the Fair Credit Reporting Act."

Moved by:    Whiting
Second by:    McCracken
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 3 AS AMENDED

Moved by:    Whiting
Second by:    Bogue
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Daugaard, Munson

MOTION:     TO AMEND TITLE OF SB 3

On page 1, line 1 of the printed bill, delete everything after " to " and insert "provide the director of insurance with rule-making authority regarding personal nonpublic financial information.".

On page 1 , delete line 2 .

Moved by:    Daugaard
Second by:    Bogue
Action:    Prevailed by voice vote.

         SB 43: establish within the State Board of Chiropractic Examiners a disciplinary committee and an ethics committee and to authorize a fee for peer review.

Presented By:    Jeff Fox, Bd of Chiropractors (Handout #2)
Proponents:    Jeff Zel, SD Chiropractic Examiners ( Handout #3)
        Dick Tiezen, State Farm Insurance

MOTION:     AMEND SB 43

On page 2, line 8 of the printed bill, after " review. " insert " However, this fee may only be collected from a licensee or insurer requesting a review. ".

Moved by:    Bogue
Second by:    McCracken
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 43 AS AMENDED

Moved by:    Bogue

Second by:    Volesky
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Daugaard, Munson

        Darla Lyon,Division of Insurance, discussed SB44 which will be coming up for hearing on Thursday, January 25.

MOTION:     ADJOURN

Moved by:    Bogue
Second by:    McCracken
Action:    Prevailed by voice vote.

Margaret Nickels

____________________________

Committee Secretary

David R. Munson, Chair

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