Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/04/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB132 | |
| SB11 | |
| SB81 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 11 | TELECONFERENCED | |
| += | SB 81 | TELECONFERENCED | |
| += | SB 132 | TELECONFERENCED | |
SB 132-OMNIBUS INSURANCE BILL
1:36:19 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
132 "An Act relating to insurance; and providing for an
effective date."
1:37:05 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented a brief recap of SB 132.
1:38:01 PM
CHAIR BJORKMAN solicited a motion.
1:38:03 PM
SENATOR MERRICK moved to adopt Amendment 1, work order 34-
LS0415\G.
34-LS0415\G.1
Wallace
4/2/25
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR ____________
Page 27, lines 9 - 13:
Delete all material and insert:
"Sec. 21.60.030. Depreciation of labor. In a
residential property policy, the valuation of the
expense of labor may not be depreciated, except where
offered as a stand-alone endorsement that specifically
identifies the nontangible items subject to
depreciation. An endorsement offered under this
section must be an optional coverage and provide a
proportionate reduction in premium."
1:38:07 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:38:24 PM
LORI WING-HEIER, Director, Division of Insurance, Anchorage,
Alaska, offered an explanation of Amendment 1 to SB 132 and
stated that the amendment changes the original bill, which
prohibited labor depreciation, by creating a compromise. Under
the amendment, labor may be depreciated only for residential
properties, and only if the insured is provided with a
standalone endorsement. She said this endorsement must clearly
show the cost difference between a policy with labor
depreciation and one without, giving consumers the choice
between a lower-cost policy that includes depreciation or a
higher-cost policy without it.
1:39:33 PM
CHAIR BJORKMAN gave an example if he had a garage that burnt
down and had to decide which policy would best address his
situation and asked whether the division is confident that
consumers would make a well-informed choice about which policy
is right for them.
1:40:13 PM
MS. WING-HEIER replied that the amendment ensures that the
standard policy will not allow labor depreciation. Consumers
must actively choose an endorsement if they want depreciation
for a lower premium. She said agents are required to explain how
the endorsement works, what savings it offers, and that labor
costs would be depreciated in the event of a claim. The intent
is to make sure consumers clearly understand their choice and
the two differences.
1:41:08 PM
CHAIR BJORKMAN removed his objection.
1:41:14 PM
CHAIR BJORKMAN found no further objection and Amendment 1 was
adopted.
1:41:18 PM
CHAIR BJORKMAN solicited a motion.
1:41:20 PM
SENATOR MERRICK moved to adopt Amendment 2, work order 34-
LS0415\G.
34-LS0415\G.2
Wallace
4/2/25
A M E N D M E N T 2
OFFERED IN THE SENATE BY SENATOR ____________
Page 23, following line 3:
Insert a new bill section to read:
"* Sec. 40. AS 21.36.475(a) is amended to read:
(a) An owner controlled insurance program
or a contractor controlled insurance program is
subject to both AS 21.39 and AS 21.42, must be
approved by the director, and shall be allowed only
for a major construction project or a major multi-
owner residential construction project. Owner
controlled and contractor controlled insurance
programs are limited to property insurance as defined
in AS 21.12.060 and casualty insurance as defined in
AS 21.12.070."
Renumber the following bill sections accordingly.
Page 23, following line 14:
Insert a new bill section to read:
"* Sec. 42. AS 21.36.475(c) is amended by adding a
new paragraph to read:
(7) "major multi-owner residential
construction project" means a construction project for
condominiums, townhouses, cooperative housing
developments, or other residential housing involving
at least 50 units and three or more property owners
with a total cost of $25,000,000 or more."
Renumber the following bill sections accordingly.
Page 32, line 14:
Delete "sec. 40"
Insert "sec. 41"
Page 32, line 16:
Delete "sec. 42"
Insert "sec. 44"
1:41:24 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:41:32 PM
LORI WING-HEIER, Director, Division of Insurance, Anchorage,
Alaska, offered an explanation of Amendment 2 to SB 132 and
stated that the new amendment adds to AS 21.36.475(a); owner or
contractor controlled insurance programs for large multi-owner
residential construction projects. The Amendment adds AS
21.36.475(c), which defines such multi-owner residential
construction projects as having at least 50 units, three owners,
and a minimum cost of $25 million.
1:42:13 PM
SENATOR MERRICK asked how the $25 million was calculated.
1:42:17 PM
MS. WING-HEIER replied that the original statute set the
threshold for major construction projects at $50 million, which
was considered too high. She said some suggested lowering the
threshold to $5 million, but that was seen as too low. The
compromise set the limit at $25 million, which is the amount
included in the endorsement.
1:43:01 PM
CHAIR BJORKMAN removed his objection.
1:43:08 PM
SENATOR BJORKMAN found no further objection and Amendment 2 was
adopted.
1:43:55 PM
CHAIR BJORKMAN solicited the will of the committee.
1:43:58 PM
SENATOR MERRICK moved to report SB 132, work order 34-LS0415\G,
as amended, from committee with individual recommendations and
attached fiscal note(s).
1:44:12 PM
CHAIR BJORKMAN found no objection and CSSB 132(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB132 Draft Proposed Amendment G.1.pdf |
SL&C 4/4/2025 1:30:00 PM |
SB 132 |
| SB132 Draft Proposed Amendment G.2.pdf |
SL&C 4/4/2025 1:30:00 PM |
SB 132 |
| SB81 Sectional Analysis ver A.pdf |
SL&C 3/3/2025 1:30:00 PM SL&C 4/4/2025 1:30:00 PM |
SB 81 |
| SB81 Sponsor Statement ver A.pdf |
SL&C 3/3/2025 1:30:00 PM SL&C 4/4/2025 1:30:00 PM |
SB 81 |
| SB81 ver A.pdf |
SL&C 3/3/2025 1:30:00 PM SL&C 4/4/2025 1:30:00 PM |
SB 81 |
| SB81 Fiscal Note-DOA-DRB 02.28.25.pdf |
SL&C 4/4/2025 1:30:00 PM |
SB 81 |
| SB81 Presentation to SLAC 04.04.25.pdf |
SL&C 4/4/2025 1:30:00 PM |
SB 81 |