Legislature(2017 - 2018)BARNES 124
03/31/2018 01:00 PM LABOR & COMMERCE
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HB 401-INSURANCE; REINSURANCE;VALUATION; CREDITS 1:38:32 PM CHAIR KITO announced that the final 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." 1:40:41 PM REPRESENTATIVE WOOL moved to adopt the CS for HB 401 as a working document. CHAIR KITO objected for discussion. 1:40:55 PM CAITLYN ELLIS, Staff, Representative Sam Kito, Alaska State Legislature, presented the changes to the proposed bill on behalf of Representative Kito, prime sponsor. She stated there were a number of drafting issues that were being resolved. The summary of changes [included in committee packet], with an additional table of drafting changes, read as follows: The CS for HB 401 makes drafting changes in accordance with the legislative drafting manual. The original legislation was drafted to repeal and reenact the credit for reinsurance model act. The CS interlineates revisions to model law in existing statute. No substantive changes are made in the revision. 1:42:15 PM CHAIR KITO commented that the bill was being examined for drafting changes to conform to legislative drafting manuals. He stated he would like to continue to move the bill forward as the changes were being implemented. 1:43:01 PM REPRESENTATIVE JOSEPHSON asked about other committee referrals. CHAIR KITO said the bill would be going to House Rules Committee. REPRESENTATIVE JOSEPHSON asked whether the intent was to bring the changes to the House floor. CHAIR KITO answered the changes would be worked on while it moved on through to the other body. 1:44:06 PM CHAIR KITO removed his objection. There being no further objection, Version D was adopted as the working document. 1:44:23 PM LORI WING-HEIER, Director, Division of Insurance, Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on HB 401. She clarified that the bill, in its entirety, is based on NAIC model law. She said the repeal and reenact approach was not in accordance with legislative drafting manuals. She said that all parts of the model law are in the CS and have been noted in the CS, but the overall intent has not changed in the CS. 1:45:41 PM CHAIR KITO announced that public testimony was still open from the previous meeting. REPRESENTATIVE WOOL asked about the issues with repeal and reenact motions. CHAIR KITO explained that the changes were ensuring that the proposed CS conforms to Legislative Drafting manuals and the repeal and replace" of a section of statute was still being worked on. He indicated there was also a time issue. REPRESENTATIVE JOSEPHSON asked for an explanation of the urgency of the adoption of the changes. MS. WING-HEIER answered that first part of the bill credit for reinsurance was for all states seeking accreditation and had an effective date in 2019. The second part of the bill has a 2020 effective date. She stated the 2019 date was most urgent. 1:48:56 PM CHAIR KITO closed public testimony on HB 401. 1:49:07 PM REPRESENTATIVE WOOL moved to report HB 401 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered.