Legislature(2017 - 2018)BARNES 124
03/14/2018 03:15 PM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB126 | |
| SB80 | |
| HB403 | |
| HB401 | |
| Presentation: Update of the 2020 Census Operations | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 403 | TELECONFERENCED | |
| *+ | HB 401 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 80 | TELECONFERENCED | |
| += | SB 126 | TELECONFERENCED | |
HB 401-INSURANCE; REINSURANCE;VALUATION; CREDITS
4:14:52 PM
CHAIR KITO announced that the next order of business would be
HOUSE BILL NO. 401, "An Act relating to insurance; relating to
credit for reinsurance; insurance standard valuation; and
providing for an effective date."
4:14:59 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community & Economic Development (DCCED), testified in
the hearing on HB 401. She explained that insurers use re-
insurers to back their ability to pay claims. She said re-
insurers come from out of the country and the state doesn't have
the authority to examine financials and accreditation of foreign
reinsurers doing business in Alaska. She described the covered
agreement stating insurers don't have to pledge 100 percent of
every loss to back the loss. She said the NAIC has adopted newer
standards to ensure claims get paid.
4:18:36 PM
CHAIR KITO noted issues regarding legislative drafting of the
proposed bill. He asked Ms. Wing-Heier to share the direction
the proposed bill would be going.
4:19:38 PM
REPRESENTATIVE KNOPP asked whether the federal government
addresses what the state was attempting.
MS. WING-HEIER said, "Yes and no." She said the federal
government has challenged the states to pass the bill as
amended.
CHAIR KITO noted that the states regulate insurance
individually.
MS. WING-HEIER answered, hat is true. She explained the
division values state-based regulation as what works for Alaska
won't work for other states. She added state-based regulation
has worked for 150 years.
4:21:18 PM
REPRESENTATIVE WOOL asked why there is a shortage of American
companies in reinsurance.
MS. WING-HEIER answered there are lots of domesticated insurance
companies but sometimes the risks are so big that the companies
can't get enough re-insurance to cover the entire payment
required.
4:22:31 PM
JANA-LEE PRUITT, Regional Vice President, American Council of
Life Insurers, testified in support of HB 401. She said the
proposed bill would repeal and reenact portions of Alaska
statute governing credit for reinsurance, making them consistent
with NAIC model law which has been revised twice in recent years
to modernize reinsurance regulations in the U.S. She added that
HB 401 would govern the circumstances under which the Division
of Insurance would allow a life insurer to take credit for
reinsurance in its financial statements as an asset or a
reduction from liability.
MS. PRUITT stated the second section of HB 401 would amend
Alaska's valuation law to be consistent with NIAC's valuation
law. She explained life insurers set aside capital called
"reserves" to ensure they will be able to pay future claims.
She stated that until recently, the formula for calculating life
insurance reserves was a "one size fits all" approach. She said
in 2017 a new system called principle-based reserving (PBR) was
enacted in nearly every state. She explained PBR ensures that
reserves match the actual risk assumed by insurers. To
implement PBR, state legislatures must enact both the standard
valuation law approved by the NAIC in 2009 and the revisions
made to the NAIC standard non-forfeiture law in 2012. She
stated HB 401 includes the revisions to both those laws and
would be a major step forward in the process of implementing PBR
in Alaska. She stated there are one or two minor revisions that
need to be finalized.
4:24:47 PM
CHAIR KITO asked about the principles of PBR.
4:25:00 PM
MS. WING-HEIER said the second part of the bill deals with PBR.
She said life insurers have always had a "one size fits all"
approach to how reserves are set. She remarked the approach is
somewhat antiquated. She added PBR will allow the state to look
at the risks that insurance companies have taken on in a
different manner. She stated the industry supports the proposal
because it allows for an accurate portrayal of the risks
insurers are taking on.
4:26:34 PM
CHAIR KITO clarified that PBR stood for principle-based
reserves.
4:26:54 PM
REPRESENTATIVE WOOL asked whether the proposal was akin to a
credit check on the insurance companies.
MS. WING-HEIER answered in the affirmative.
4:27:13 PM
CHAIR KITO opened public testimony on HB 401.
CHAIR KITO held over HB 401.
4:27:44 PM
The committee took an at-ease from 4:27 p.m. to 4:29 p.m.
^Presentation: Update of the 2020 Census Operations
Presentation: Update of the 2020 Census Operations
4:29:18 PM
CHAIR KITO announced that the final order of business would be a
presentation on "Update of the 2020 Census Operations" by James
Christy, Regional Director, Los Angeles Regional Office, US
Census Bureau.
4:29:30 PM
JAMES CHRISTY, Regional Director, US Census Bureau, presented a
PowerPoint on the "2020 Census Update &
Overview." He provided a brief history of the US Census.
REPRESENTATIVE BIRCH asked whether the census counts
undocumented people in the United States.
MR. CHRISTY answered the language in the U.S. Constitution
states the census counts the actual amount of people in the U.S.
He said the census counts everyone that is living in the U.S.
regardless of citizenship status.
REPRESENTATIVE BIRCH mentioned Alaska only has one [U.S.] House
Representative. He remarked there are a lot of undocumented
individuals in California and if they are counted, then the
number of representatives would increase. He asked how the
calculation is reconciled.
MR. CHRISTY described the apportionment process. He explained
there is an algorithm. He added some states will have a small
population threshold. He said, "It's the laws of equal
proportions."
4:33:58 PM
REPRESENTATIVE BIRCH asked to receive the information.
CHAIR KITO reminded that Alaska is a beneficiary of the system
and has more representation than would strictly be entitled
according to the calculation.
4:35:02 PM
REPRESENTATIVE WOOL asked whether the number of representatives
has gone up.
MR. CHRISTY answered the number has been 435 for some time. He
informed that Congress could add to that.
4:35:36 PM
MR. CHRISTY addressed slide 2, "Why We Do a Census":
• Article 1, Section 2 of the US Constitution
- The actual Enumeration shall be made within
three Years after the first Meeting of the
Congress of the United States, and within every
subsequent Term of ten Years, in such Manner as
they shall by Law direct.
• Key Purpose is Apportioning the US House of
Representatives
4:36:43 PM
MR. CHRISTY spoke to slide 3, "Local Update of Census Addresses
(LUCA)":
• What is LUCA?
• Why Participate in LUCA?
• Who can Participate in LUCA?
- States
- Counties
- Incorporated places (Cities, towns)
- Federally recognized tribes and Alaska Native
Regions
MR. CHRISTY explained there had been a series of workshops
and training programs about LUCA in Alaska.
4:38:07 PM
MR. CHRISTY addressed "LUCA Status for Alaska" on slides 4 and
5.
• July 2017
- Invitation mailing to highest elected official
and working contacts
• October/ November 2017
- In person trainings and Alaska specific
webinars hosted by the Alaska State Data Center
- Reminder letter mailing
• December/January 2018
- Targeted contacts by SDC and Regional office to
large governments
- Email reminders and closeouts to all contacts
- Reminder and closeout mailing
• 30 percent of Governments participating,
including the
State of Alaska
• 100 percent of the population is covered though
the
participation by the State of Alaska
• 89 percent of the population is covered though
Boroughs/Alaska Native Regions/cities
• Next steps
- Materials produced and delivered though April
2018
- 23 percent of participants have received their
materials
- 120-day calendar review period
4:38:40 PM
REPRESENTATIVE SULLIVAN-LEONARD asked whether the census uses
Department of Commerce, Community & Economic Development (DCCED)
staff to connect homes, names and places.
MR. CHRISTY answered the question would be addressed in a
subsequent slide.
4:39:12 PM
MR. CHRISTY spoke to slide 6, "Area Census Office (ACO) in
Anchorage, AK":
• There are a total of 248 Area Census Offices in
the nation.
• Anchorage ACO is scheduled to open in Jan 2019 to
support the 2020 Census field operations
• Address Canvassing in the fall of 2019
• Remote Alaska enumeration
• Non-response Follow up in early summer of 2020
4:40:46 PM
MR. CHRISTY explained "How we do the Census" on slide 7:
1. Advance Notice:
• 2/3 will get mailing
• 1/4 will get mail delivery
2. Online response - expecting 60 percent 70 percent
will respond online
3. Will hire staff to follow-up on non-response
4. #1 doesn't equal to 100 percent
MR. CHRISTY described "Remote AK/Other Populations" on slide 8.
Special operation to count people in the remote areas
of Alaska (see map)
• Conducted in January April 2020
- First person in the 2020 Census will be counted
in Alaska!
• Military
- Conducted incorporation with the Dept. of
Defense
- Most captured administratively
• Other Populations
- Group Quarters
- Homeless
- Transitory locations
4:45:24 PM
CHAIR KITO asked about efforts to count the homeless.
MR. CHRISTY explained that the census takers tend to count the
homeless population over 2 to 3 days. He said they go to
shelters and count people who are there overnight. He added they
also look for mobile services such as meals in a park. He
stated the third activity is to identify the street locations
where people are sleeping. He underlined the enumerators do not
wake people up but do attempt to ensure the counts are accurate.
REPRESENTATIVE BIRCH asked how soon the information is publicly
available after the information is gathered.
MR. CHRISTY answered the date is in statute. He informed the
data is delivered to the President for purposes of apportionment
by December 31, 2020. He added his department likes to deliver
before that date. He said the office will also deliver to the
governor and to the senate and house leadership of each state by
April 1, 2021, for the purposes of the redistricting process.
4:48:10 PM
MR. CHRISTY moved to slide 9, "Recruiting, Hiring, & Staffing,
Anchorage ACO positions":
• Summer 2018
- ACO Management (approx. 10)
• Fall 2018
- ACO office staff, Recruiting Assistants
(approx. 25)
- Partnership Specialists (TBD)
• Spring 2019
- Address Canvassing field staff (300 plus)
- Remote Alaska field staff (TBD)
• Fall 2019
- Non-Response Follow-Up field staff (TBD)
MR. CHRISTY continued to describe the recruiting
information on slide 10:
• Online application (Paper Alternative)
• Competitive pay rates
• Qualifications
- U.S Citizen
- Pass a background check
- Veteran's Preference
4:49:29 PM
MR. CHRISTY address the "Census Partnership and Engagement
Program (CPEP)" on slides 11 and 12:
• Goals
- Improve public cooperation
- Leverage existing networks and "trusted voices"
- Focus on communities who are less likely to
respond
- Formation of Complete Count Committees
- Support operational efforts
• Partnership Specialist stationed in Alaska since
10/2016
• Met with tribes and Alaska Native Regional
governments to promote LUCA and build contact
lists
• Continue working with partners/stakeholders to
promote the important of the 2020 Census
• Continue to expand and increase our partnership
presence in Alaska
• Alaska Working Group is a great example!
4:52:12 PM
REPRESENTATIVE SULLIVAN-LEONARD remarked that she found the
census takers in the previous census "very pushy," and "quite
intrusive." She asked whether there was a format for answering
basic questions without contributing to data-driven information
for [Washington] D.C. statistics.
MR. CHRISTY answered that for the 2020 census the subjects have
been submitted to Congress. He added there are other programs
that are more in-depth. He said the upcoming census would
involve only seven questions.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB80 Ver O.pdf |
HL&C 3/14/2018 3:15:00 PM |
SB 80 |
| HB 401 Transmittal Letter 3.6.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 401 |
| HB 401 Fiscal Note-DCCED DOI 3.6.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 401 |
| HB 401 ver A 3.6.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 401 |
| HB 401 Sectional 3.6.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 401 |
| HB157-403 Summary of Changes 3.13.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 157 |
| HB403 Sectional Analysis 3.13.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 403 |
| HB403 Sponsor Statement 3.13.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 403 |
| HB403 Fiscal Note DCCED DOI 3.9.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 403 |
| HB403 version D.PDF |
HL&C 3/14/2018 3:15:00 PM |
HB 403 |
| HB403 Sponsor Statement 3.13.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
HB 403 |
| HLAC Update on 2020 Census Operation 3.12.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
Presentation Census |
| SB080 Letters of Support 3.15.18.pdf |
HL&C 3/14/2018 3:15:00 PM |
SB 80 |