2004-02-18                     Senate Journal                      Page 2210
SB 276                                                                                            
The Labor and Commerce Committee considered SENATE BILL NO.                                         
276 "An Act relating to the Alaska Insurance Guaranty Association;                                  
relating to joint insurance arrangements and assessments to the                                     
association; relating to the powers of the Alaska Industrial                                        
Development and Export Authority concerning the association; and                                    
providing for an effective date" and recommended it be replaced with                                
                                                                                                    
          CS FOR SENATE BILL NO. 276(L&C) "An Act                                                   
          relating to the Alaska Insurance Guaranty                                                 
          Association; relating to the powers of the Alaska                                         
          Industrial Development and Export Authority                                               
          concerning the association; and providing for an                                          
          effective date."                                                                          
                                                                                                    
and further recommends the adoption of the following Labor and                                      
Commerce Committee Letter of Intent.                                                                
                                                                                                    
                               Letter of Intent                                                    
                                     for                                                           
                       CS FOR SENATE BILL NO. 276(L&C)                                             
                                                                                                    
          It is the intent of the legislature to use the earnings of                              
          the Permanent Fund to cover the deficit left in the                                       
          Workers' Compensation program ensuing from the                                            
          unexpected insolvency of the Fremont Indemnity                                            
          Company in 2003.                                                                          
                                                                                                    
          In order to minimize the impact upon the business                                         
          community and employees, and by using sound                                               
          insurance principles, it is our intent to spread the                                      
          costs associated with this crisis over the greatest                                       
          number of Alaskans who stand to benefit from                                              
          workers comp…those that are currently employed                                            
          and those that will be employed in the future.                                            
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-18                     Senate Journal                      Page 2211
          It is also the intent of the legislature to spread out                                    
          these appropriations to the Workers' Compensation                                         
          Program over the course of 5 years to cover the                                           
          projected shortfalls:                                                                     
                                                                                                    
          2004~ $5,828,460                                                                          
          2005~ $8,890,657                                                                          
          2006~ $3,825,191                                                                          
          2007~ $1,406,865                                                                          
          2008~ $   263,998                                                                         
          ____________________                                                                      
                                                                                                    
          Total: $20,215,171                                                                        
                                                                                                    
Signing do pass: Senator Bunde, Chair; Senators Seekins, Gary                                       
Stevens. Signing do not pass: Senator French.                                                       
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 6, Senate Labor and Commerce Committee                                             
                                                                                                    
The bill was referred to the Finance Committee.