Legislature(2017 - 2018)BARNES 124

03/14/2018 03:15 PM House LABOR & COMMERCE

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03:19:55 PM Start
03:20:54 PM SB126
03:24:56 PM SB80
03:50:29 PM HB403
04:14:52 PM HB401
04:29:18 PM Presentation: Update of the 2020 Census Operations
04:55:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Public Testimony --
Heard & Held
-- Public Testimony --
+ Presentation: Update of the 2020 Census TELECONFERENCED
Operations by Julie Lam, Assistant Regional
Director and Jamey Christy, Regional Director,
Los Angeles Regional Office, US Census Bureau
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved HCS CSSB 80(L&C) Out of Committee
-- Public Testimony --
Moved SB 126 Out of Committee
-- Public Testimony --
        HB 401-INSURANCE; REINSURANCE;VALUATION; CREDITS                                                                    
4:14:52 PM                                                                                                                    
CHAIR  KITO announced  that the  next order of  business would  be                                                              
HOUSE BILL  NO. 401,  "An Act relating  to insurance;  relating to                                                              
credit  for   reinsurance;  insurance   standard  valuation;   and                                                              
providing for an effective date."                                                                                               
4:14:59 PM                                                                                                                    
LORI WING-HEIER,  Director, Division  of Insurance,  Department of                                                              
Commerce, Community  & Economic Development (DCCED),  testified in                                                              
the hearing on HB 401. She explained that insurers use re-                                                                      
insurers  to back  their  ability to  pay  claims.   She said  re-                                                              
insurers come from  out of the country and the  state doesn't have                                                              
the authority to  examine financials and accreditation  of foreign                                                              
reinsurers doing  business in Alaska.   She described  the covered                                                              
agreement stating  insurers don't  have to  pledge 100  percent of                                                              
every loss to back  the loss. She said the NAIC  has adopted newer                                                              
standards to ensure claims get paid.                                                                                            
4:18:36 PM                                                                                                                    
CHAIR  KITO noted  issues regarding  legislative  drafting of  the                                                              
proposed bill.   He  asked Ms. Wing-Heier  to share  the direction                                                              
the proposed bill would be going.                                                                                               
4:19:38 PM                                                                                                                    
REPRESENTATIVE   KNOPP  asked  whether   the  federal   government                                                              
addresses what the state was attempting.                                                                                        
MS.  WING-HEIER   said,  "Yes  and  no."  She   said  the  federal                                                              
government  has  challenged  the   states  to  pass  the  bill  as                                                              
CHAIR   KITO   noted   that   the    states   regulate   insurance                                                              
MS.  WING-HEIER  answered,   hat  is  true.    She  explained  the                                                              
division values  state-based regulation  as what works  for Alaska                                                              
won't work  for other  states.   She added state-based  regulation                                                              
has worked for 150 years.                                                                                                       
4:21:18 PM                                                                                                                    
REPRESENTATIVE  WOOL asked  why there  is a  shortage of  American                                                              
companies in reinsurance.                                                                                                       
MS. WING-HEIER answered  there are lots of  domesticated insurance                                                              
companies but  sometimes the risks  are so big that  the companies                                                              
can't  get  enough  re-insurance   to  cover  the  entire  payment                                                              
4:22:31 PM                                                                                                                    
JANA-LEE  PRUITT, Regional  Vice  President,  American Council  of                                                              
Life  Insurers, testified  in  support  of HB  401.  She said  the                                                              
proposed  bill  would  repeal  and   reenact  portions  of  Alaska                                                              
statute governing  credit for reinsurance, making  them consistent                                                              
with NAIC model  law which has been revised twice  in recent years                                                              
to modernize reinsurance  regulations in the U.S.   She added that                                                              
HB 401  would govern  the circumstances  under which the  Division                                                              
of  Insurance  would allow  a  life  insurer  to take  credit  for                                                              
reinsurance  in  its  financial   statements  as  an  asset  or  a                                                              
reduction from liability.                                                                                                       
MS.  PRUITT  stated the  second  section  of  HB 401  would  amend                                                              
Alaska's  valuation law  to be  consistent  with NIAC's  valuation                                                              
law.    She  explained life  insurers  set  aside  capital  called                                                              
"reserves"  to ensure  they will  be  able to  pay future  claims.                                                              
She stated that  until recently, the formula for  calculating life                                                              
insurance reserves was  a "one size fits all" approach.   She said                                                              
in 2017  a new system called  principle-based reserving  (PBR) was                                                              
enacted  in nearly  every state.  She explained  PBR ensures  that                                                              
reserves  match   the  actual  risk  assumed  by   insurers.    To                                                              
implement  PBR, state legislatures  must  enact both the  standard                                                              
valuation  law approved  by the  NAIC  in 2009  and the  revisions                                                              
made  to  the NAIC  standard  non-forfeiture  law  in 2012.    She                                                              
stated  HB 401  includes  the revisions  to  both  those laws  and                                                              
would be a major  step forward in the process of  implementing PBR                                                              
in Alaska.  She  stated there are one or two  minor revisions that                                                              
need to be finalized.                                                                                                           
4:24:47 PM                                                                                                                    
CHAIR KITO asked about the principles of PBR.                                                                                   
4:25:00 PM                                                                                                                    
MS. WING-HEIER  said the second part  of the bill deals  with PBR.                                                              
She  said life  insurers have  always had  a "one  size fits  all"                                                              
approach to  how reserves are set.   She remarked the  approach is                                                              
somewhat antiquated.   She added PBR will allow the  state to look                                                              
at  the  risks  that  insurance  companies  have  taken  on  in  a                                                              
different manner.   She stated the industry supports  the proposal                                                              
because  it  allows  for  an  accurate   portrayal  of  the  risks                                                              
insurers are taking on.                                                                                                         
4:26:34 PM                                                                                                                    
CHAIR   KITO  clarified   that  PBR   stood  for   principle-based                                                              
4:26:54 PM                                                                                                                    
REPRESENTATIVE  WOOL asked  whether  the proposal  was  akin to  a                                                              
credit check on the insurance companies.                                                                                        
MS. WING-HEIER answered in the affirmative.                                                                                     
4:27:13 PM                                                                                                                    
CHAIR KITO opened public testimony on HB 401.                                                                                   
CHAIR KITO held over HB 401.                                                                                                    
4:27:44 PM                                                                                                                    
The committee took an at-ease from 4:27 p.m. to 4:29 p.m.                                                                       
^Presentation: Update of the 2020 Census Operations                                                                             
       Presentation: Update of the 2020 Census Operations                                                                   
4:29:18 PM                                                                                                                    
CHAIR KITO announced  that the final order of business  would be a                                                              
presentation on  "Update of the  2020 Census Operations"  by James                                                              
Christy,  Regional  Director,  Los  Angeles  Regional  Office,  US                                                              
Census Bureau.                                                                                                                  
4:29:30 PM                                                                                                                    
JAMES CHRISTY,  Regional Director,  US Census Bureau,  presented a                                                              
PowerPoint on the "2020 Census Update &                                                                                         
Overview."  He provided a brief history of the US Census.                                                                       
REPRESENTATIVE   BIRCH    asked   whether   the    census   counts                                                              
undocumented people in the United States.                                                                                       
MR.  CHRISTY  answered  the  language  in  the  U.S.  Constitution                                                              
states the census  counts the actual amount of people  in the U.S.                                                              
He said  the census  counts everyone  that is  living in  the U.S.                                                              
regardless of citizenship status.                                                                                               
REPRESENTATIVE BIRCH  mentioned Alaska  only has one  [U.S.] House                                                              
Representative.   He  remarked  there are  a  lot of  undocumented                                                              
individuals  in  California and  if  they  are counted,  then  the                                                              
number  of  representatives would  increase.    He asked  how  the                                                              
calculation is reconciled.                                                                                                      
MR. CHRISTY  described the  apportionment  process.  He  explained                                                              
there is  an algorithm.   He added some  states will have  a small                                                              
population  threshold.     He  said,  "It's  the   laws  of  equal                                                              
4:33:58 PM                                                                                                                    
REPRESENTATIVE BIRCH asked to receive the information.                                                                          
CHAIR KITO  reminded that  Alaska is a  beneficiary of  the system                                                              
and  has  more representation  than  would  strictly  be  entitled                                                              
according to the calculation.                                                                                                   
4:35:02 PM                                                                                                                    
REPRESENTATIVE  WOOL asked whether  the number of  representatives                                                              
has gone up.                                                                                                                    
MR. CHRISTY answered the number has been 435 for some time.  He                                                                 
informed that Congress could add to that.                                                                                       
4:35:36 PM                                                                                                                    
MR. CHRISTY addressed slide 2, "Why We Do a Census":                                                                            
        • Article 1, Section 2 of the US Constitution                                                                           
          -  The  actual  Enumeration shall  be  made  within                                                                   
          three  Years   after  the  first  Meeting   of  the                                                                   
          Congress  of the  United States,  and within  every                                                                   
          subsequent  Term of  ten Years,  in such Manner  as                                                                   
          they shall by Law direct.                                                                                             
        • Key Purpose is Apportioning the US House of                                                                           
4:36:43 PM                                                                                                                    
MR. CHRISTY spoke to slide 3, "Local Update of Census Addresses                                                                 
        • What is LUCA?                                                                                                         
        • Why Participate in LUCA?                                                                                              
        • Who can Participate in LUCA?                                                                                          
          - States                                                                                                              
          - Counties                                                                                                            
          - Incorporated places (Cities, towns)                                                                                 
        - Federally recognized tribes and Alaska Native                                                                         
MR. CHRISTY explained there had been a series of workshops                                                                      
and training programs about LUCA in Alaska.                                                                                     
4:38:07 PM                                                                                                                    
MR. CHRISTY addressed "LUCA Status for Alaska" on slides 4 and                                                                  
        • July 2017                                                                                                             
          - Invitation mailing to highest elected official                                                                      
          and working contacts                                                                                                  
        • October/ November 2017                                                                                                
          - In person trainings and Alaska specific                                                                             
        webinars hosted by the Alaska State Data Center                                                                         
          - Reminder letter mailing                                                                                             
        • December/January 2018                                                                                                 
          - Targeted contacts by SDC and Regional office to                                                                     
          large governments                                                                                                     
        - Email reminders and closeouts to all contacts                                                                         
          - Reminder and closeout mailing                                                                                       
        • 30  percent   of    Governments    participating,                                                                     
          including the                                                                                                         
          State of Alaska                                                                                                       
        • 100 percent of the population is covered though                                                                       
          participation by the State of Alaska                                                                                  
        • 89 percent of the population is covered though                                                                        
          Boroughs/Alaska Native Regions/cities                                                                                 
        • Next steps                                                                                                            
          - Materials produced and delivered though April                                                                       
          - 23 percent of participants have received their                                                                      
          - 120-day calendar review period                                                                                      
4:38:40 PM                                                                                                                    
REPRESENTATIVE SULLIVAN-LEONARD asked whether the census uses                                                                   
Department of Commerce, Community & Economic Development (DCCED)                                                                
staff to connect homes, names and places.                                                                                       
MR. CHRISTY answered the question would be addressed in a                                                                       
subsequent slide.                                                                                                               
4:39:12 PM                                                                                                                    
MR. CHRISTY spoke to slide 6, "Area Census Office (ACO) in                                                                      
Anchorage, AK":                                                                                                                 
        • There are a total of 248 Area Census Offices in                                                                       
          the nation.                                                                                                           
        • Anchorage ACO is scheduled to open in Jan 2019 to                                                                     
          support the 2020 Census field operations                                                                              
        • Address Canvassing in the fall of 2019                                                                                
        • Remote Alaska enumeration                                                                                             
        • Non-response Follow up in early summer of 2020                                                                        
4:40:46 PM                                                                                                                    
MR. CHRISTY explained "How we do the Census" on slide 7:                                                                        
     1. Advance Notice:                                                                                                         
        • 2/3 will get mailing                                                                                                  
        • 1/4 will get mail delivery                                                                                            
     2. Online response - expecting 60 percent  70 percent                                                                      
     will respond online                                                                                                        
     3. Will hire staff to follow-up on non-response                                                                            
     4. #1 doesn't equal to 100 percent                                                                                         
MR. CHRISTY described "Remote AK/Other Populations" on slide 8.                                                                 
     Special operation to count people in the remote areas                                                                      
     of Alaska (see map)                                                                                                        
        • Conducted in January  April 2020                                                                                      
       - First person in the 2020 Census will be counted                                                                        
     in Alaska!                                                                                                                 
        • Military                                                                                                              
          - Conducted incorporation with the Dept. of                                                                           
          - Most captured administratively                                                                                      
        • Other Populations                                                                                                     
          - Group Quarters                                                                                                      
          - Homeless                                                                                                            
          - Transitory locations                                                                                                
4:45:24 PM                                                                                                                    
CHAIR KITO asked about efforts to count the homeless.                                                                           
MR. CHRISTY  explained that  the census takers  tend to  count the                                                              
homeless  population  over 2  to  3  days.   He  said  they go  to                                                              
shelters and count  people who are there overnight.  He added they                                                              
also  look for  mobile  services such  as  meals in  a  park.   He                                                              
stated  the third  activity is  to identify  the street  locations                                                              
where people are  sleeping.  He underlined the  enumerators do not                                                              
wake people up but do attempt to  ensure the counts are accurate.                                                               
REPRESENTATIVE BIRCH  asked how  soon the information  is publicly                                                              
available after the information is gathered.                                                                                    
MR. CHRISTY  answered the  date is  in statute.   He informed  the                                                              
data is delivered  to the President for purposes  of apportionment                                                              
by December  31, 2020.  He  added his department likes  to deliver                                                              
before that  date.  He  said the office  will also deliver  to the                                                              
governor and to  the senate and house leadership of  each state by                                                              
April 1, 2021, for the purposes of the redistricting process.                                                                   
4:48:10 PM                                                                                                                    
MR. CHRISTY moved to slide 9, "Recruiting, Hiring, & Staffing,                                                                  
Anchorage ACO positions":                                                                                                       
        • Summer 2018                                                                                                           
          - ACO Management (approx. 10)                                                                                         
        • Fall 2018                                                                                                             
           - ACO office staff, Recruiting Assistants                                                                            
     (approx.  25)                                                                                                              
          - Partnership Specialists (TBD)                                                                                       
        • Spring 2019                                                                                                           
          - Address Canvassing field staff (300 plus)                                                                           
          - Remote Alaska field staff (TBD)                                                                                     
        • Fall 2019                                                                                                             
          - Non-Response Follow-Up field staff (TBD)                                                                            
MR.   CHRISTY   continued   to    describe   the   recruiting                                                                   
information on slide 10:                                                                                                        
        • Online application (Paper Alternative)                                                                                
        • Competitive pay rates                                                                                                 
        • Qualifications                                                                                                        
          - U.S Citizen                                                                                                         
          - Pass a background check                                                                                             
          - Veteran's Preference                                                                                                
4:49:29 PM                                                                                                                    
MR. CHRISTY address the "Census Partnership and Engagement                                                                      
Program (CPEP)" on slides 11 and 12:                                                                                            
        • Goals                                                                                                                 
          - Improve public cooperation                                                                                          
          - Leverage existing networks and "trusted voices"                                                                     
         - Focus on communities who are less likely to                                                                          
          - Formation of Complete Count Committees                                                                              
          - Support operational efforts                                                                                         
        • Partnership Specialist stationed in Alaska since                                                                      
        • Met with tribes and Alaska Native Regional                                                                            
          governments to promote LUCA and build contact                                                                         
        • Continue working with partners/stakeholders to                                                                        
          promote the important of the 2020 Census                                                                              
        • Continue to expand and increase our partnership                                                                       
          presence in Alaska                                                                                                    
        • Alaska Working Group is a great example!                                                                              
4:52:12 PM                                                                                                                    
REPRESENTATIVE  SULLIVAN-LEONARD   remarked  that  she  found  the                                                              
census  takers in  the previous  census "very  pushy," and  "quite                                                              
intrusive."   She asked whether  there was a format  for answering                                                              
basic questions  without contributing  to data-driven  information                                                              
for [Washington] D.C. statistics.                                                                                               
MR. CHRISTY  answered that for the  2020 census the  subjects have                                                              
been submitted  to Congress.   He added  there are other  programs                                                              
that  are  more in-depth.    He  said the  upcoming  census  would                                                              
involve only seven questions.                                                                                                   

Document Name Date/Time Subjects
SB80 Ver O.pdf HL&C 3/14/2018 3:15:00 PM
SB 80
HB 401 Transmittal Letter 3.6.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 401
HB 401 Fiscal Note-DCCED DOI 3.6.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 401
HB 401 ver A 3.6.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 401
HB 401 Sectional 3.6.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 401
HB157-403 Summary of Changes 3.13.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 157
HB403 Sectional Analysis 3.13.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 403
HB403 Sponsor Statement 3.13.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 403
HB403 Fiscal Note DCCED DOI 3.9.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 403
HB403 version D.PDF HL&C 3/14/2018 3:15:00 PM
HB 403
HB403 Sponsor Statement 3.13.18.pdf HL&C 3/14/2018 3:15:00 PM
HB 403
HLAC Update on 2020 Census Operation 3.12.18.pdf HL&C 3/14/2018 3:15:00 PM
Presentation Census
SB080 Letters of Support 3.15.18.pdf HL&C 3/14/2018 3:15:00 PM
SB 80