Legislature(2021 - 2022)GRUENBERG 120
04/27/2021 03:00 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB163 | |
| HB102 | |
| HB157 | |
| HB118 | |
| HB5 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 163 | TELECONFERENCED | |
| += | HB 102 | TELECONFERENCED | |
| += | HB 157 | TELECONFERENCED | |
| += | HB 118 | TELECONFERENCED | |
| += | HB 5 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 102-STATE INSUR. CATASTROPHE RESERVE ACCT.
3:25:58 PM
CHAIR KREISS-TOMKINS announced that the next order of business
would be HOUSE BILL NO. 102, "An Act relating to the state
insurance catastrophe reserve account; and providing for an
effective date."
3:26:59 PM
CHAIR KREISS-TOMKINS opened public testimony. After
ascertaining the no one wished to testify, he closed public
testimony and invited questions from the committee.
3:27:15 PM
REPRESENTATIVE EASTMAN asked whether the funds in the State
Insurance Catastrophe Reserve Account were available for
appropriation by the legislature.
3:27:37 PM
PALOMA HARBOUR, Fiscal Management Analyst, Office of Management
& Budget, Office of the Governor, answered yes. She said the
legislature could appropriate this funding for any purpose, as
there was no such thing as a dedicated fund.
REPRESENTATIVE EASTMAN assumed that the funds were swept into
the Constitutional Budget Reserve (CBR) at the end of the fiscal
year. He asked if that was correct.
MS. HARBOUR replied, "That is not correct." She stated that
just because the funding could be appropriated did not mean it
required further appropriation to spend. For that reason, it
was not subject to the sweep, she said.
REPRESENTATIVE EASTMAN questioned whether Legislative Legal
Services was of the same opinion as Ms. Harbour.
CHAIR KREISS-TOMKINS invited closing comments from committee
members on HB 102.
3:29:28 PM
REPRESENTATIVE TARR pointed out that if legislators could find
additional bills like HB 102 that saved the state millions of
dollars, their work would be easier.
REPRESENTATIVE VANCE agreed. She believed that the proposed
legislation exemplified the wise financial decisions that
Alaskans had been waiting for. She added that she was happy to
support this bill.
REPRESENTATIVE CLAMAN agreed that there were many positive
aspects of the bill and stated his support for it; however, he
indicated that it would not come without risk because "when
everyone self-insures, it only takes a couple of catastrophic
losses for somebody to come back and say, 'what were you all
thinking.'" He said he would be remiss not to recognize that
the decision came with some degree of risk, but it would be a
risk worth taking.
REPRESENTATIVE STORY thanked the bill sponsoring for providing
the 10-year history of [state property premiums and losses].
Additionally, she thanked Representative Claman for addressing
the potential risk.
REPRESENTATIVE EASTMAN appreciated the administration's effort
in bringing down costs, as reflected in the proposed
legislation. Nonetheless, he believed that per the Constitution
of the State of Alaska, the money would be swept from the CBR,
which would allow the legislature to "make proposals like this
bill in the form of a permanent fund that isn't subject to that
penalty." He said he would be inclined to create a dedicated
fund for this purpose because it would make sense financially
and legally; however, he said the legislature was "trying to
have [its] cake and eat it too." For that reason, he stated
that he would be hesitant to support the bill at this time.
3:33:26 PM
REPRESENTATIVE KAUFMAN, in response to Representative Eastman,
suggested amending the bill.
CHAIR KREISS-TOMKINS echoed the initial comments. He
characterized the bill as "terrific policy," and said he was
very glad to see the administration bring it forward. He
acknowledged the risk but believed the legislature would be
paralyzed if it allowed the sweep to dictate its every decision.
He pointed out that the sweep had almost always been reversed
without fail. Further, he opined that failing to reverse the
sweep did not serve a productive purpose.
3:35:28 PM
REPRESENTATIVE CLAMAN moved to report HB 102 out of committee
with individual recommendations and the accompanying fiscal
notes. Without objection, HB 102 was moved from the House State
Affairs Standing Committee.