SB 88: "An Act relating to the state insurance catastrophe reserve account; and providing for an effective date."
00 SENATE BILL NO. 88 01 "An Act relating to the state insurance catastrophe reserve account; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.05.289(b) is amended to read: 05 (b) The Department of Administration may allocate to the state insurance 06 catastrophe reserve account, from the appropriations to all state agencies for 07 insurance-related purposes, an amount that the commissioner of administration 08 determines to be necessary to provide an adequate insurance program for the 09 operations of state government. Money remaining in the account at the end of a fiscal 10 year is not a one-year appropriation under AS 37.25.010 and does not lapse, except for 11 amounts determined by the commissioner of administration to be unnecessary to 12 maintain this account at an appropriate level and not to exceed $50,000,000 13 [$5,000,000]. If the amount necessary to satisfy claims or judgments for which 14 payment may be due under the state insurance program in a fiscal year exceeds the
01 unexpended balance of the amounts allocated to the account, the department may 02 charge an additional amount from the unencumbered balance of any appropriation that 03 is determined by the commissioner of administration to be available for lapse at the 04 end of the fiscal year. 05 * Sec. 2. AS 37.05.289(c) is amended to read: 06 (c) The $50,000,000 [$5,000,000] cap, set in (b) of this section, on money that 07 may be retained in the state insurance catastrophe reserve account applies only to 08 unobligated money in the account at the end of a fiscal year. 09 * Sec. 3. This Act takes effect June 30, 2021.