04/25/2022 09:00 AM Senate FINANCE

HOUSE BILL NO. 102                                                                                                            
                                                                                                                                
     "An Act relating to the state insurance catastrophe                                                                        
     reserve account; and providing for an effective date."                                                                     
                                                                                                                                
9:04:38 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop relayed that it was the second hearing for                                                                      
HB 102.                                                                                                                         
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT proposed committee                                                                              
substitute for HB 102, Work Draft 32-GH1689\B (Marx,                                                                            
4/22/22).                                                                                                                       
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
9:05:09 AM                                                                                                                    
                                                                                                                                
ERIN SHINE, STAFF, SENATOR CLICK  BISHOP, explained that the                                                                    
only alteration  proposed in  the committee  substitute (CS)                                                                    
was the change  of the effective date from June  30, 2021 to                                                                    
June 30, 2022.                                                                                                                  
                                                                                                                                
9:06:01 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:06:18 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
LESLIE ISAACS,  ADMINISTRATIVE SERVICE  DIRECTOR, DEPARTMENT                                                                    
OF ADMINISTRATION,  OFFICE OF MANAGEMENT AND  BUDGET, OFFICE                                                                    
OF  THE GOVERNOR,  explained that  HB 102  would adjust  the                                                                    
upper limit  of the  catastrophic reserve account  fund from                                                                    
$5  million to  $50 million.  He noted  that the  bill would                                                                    
allow  the legislature  to self-insure  the property,  which                                                                    
had been previously discussed. He  added that there had been                                                                    
a question  about the involvement  of the  Federal Emergency                                                                    
Management Agency (FEMA) in a  previous hearing and reported                                                                    
that there needed  to be either a state  or federal disaster                                                                    
declaration in order for FEMA to be involved.                                                                                   
                                                                                                                                
Co-Chair Bishop  affirmed that the  question had  been asked                                                                    
in  the   prior  week  and   thanked  Mr.  Issacs   for  the                                                                    
clarification.                                                                                                                  
                                                                                                                                
Co-Chair Bishop  presented the fiscal  impact note  from the                                                                    
Department  of Administration  (DOA) with  OMB component  71                                                                    
and control code  RwdhS. He relayed there seemed to  be a $3                                                                    
million savings in FY 23 and  FY 24, a $5 million savings in                                                                    
FY 25, and a $6 million savings in FY 26 through FY 28.                                                                         
                                                                                                                                
9:08:01 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to REPORT  SCS HB  102(FIN) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS HB 102(FIN) was REPORTED  out of committee with four "do                                                                    
pass"  recommendations  and  with  two  "no  recommendation"                                                                    
recommendations, and  with one new  fiscal impact  note from                                                                    
the Department of Administration.                                                                                               
                                                                                                                                
9:08:22 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:10:15 AM                                                                                                                    
RECONVENED