ALC-Executive Subcommittee

Chairman Caesar Qorum, we'll go ahead and get started. Uh, we'll start with the, uh, presentation from Prayer at Night, Mr. Kyle Hills is already at the table and ready to go, if you would introduce yourself for the record, and you are recognized to start. Sure, I'm Kyle Halls, uh, principal consulting actuary at Per Night. I also am the director of our risk strategies and solutions, um, I'll correct you on one thing. I don't know about ready to go, but I am here, um. So does everyone have a copy of the. Uh The outline that I prepared for uh the timing of everything is, should I, is there a way to share screens or anything or? I think, I think they all have it in their pocket. OK, as long as everyone has a paper copy, that's fine. I'm pulling it up on my computer as well. OK, so. What I put together is a project outline essentially for The captive feasibility study that we're uh putting together and essentially what this does is it takes us from where we ended our original, uh, scope of services with everyone here up through the submission of the captive application process. So it um kind of goes through breaks it down into about 8 different sections, um, I'm not gonna go into a ton of detail with each of these sections. I'll just kind of go, um, more or less at, at a high level. In essence, what our ultimate goal is to do is to uh submit this, uh, captive application by the end of January. So if everything goes as planned, that's kind of the, the estimated timing right now. Um But I'll walk through these in in somewhat of a high detail here, so this, this project initiation, uh, just to find the goals and, and assembling the, the project team. That's essentially, uh, the possibly even later this week. Um, section 2 here is this regulatory uh review. So that's just us going through and just kind of understanding the regulatory requirements for setting up a captive in Arkansas, and it's not so much as understanding the requirements. It's more specific to this captive. There's gonna be some things we're gonna need to talk about in terms of, uh, maybe like how does sales tax impact um this captive? Are they going to pay taxes or not and just some of the other things that we need to, uh, make sure that our, our, our address. as we kind of go throughout this whole process, uh, objective 3 and 4 are primarily the, uh, actuarial work that uh we've started uh when we worked on this over the summer, um, we are preparing updated actuarial report as well as a risk assessment report. Again, it's very similar to a lot of the work that we've done already. It's just uh more or less it's just kind of updating it with more recent information. Item number 4 here is the, the market, um assessment in, in Arkansas and again just kind of analyzing the that's very similar to what we've done over the summer as well, um, but just updating this for any new information that's, that's, uh, come to light, uh, since then. Moving on to the 3rd page, this is the financial um analysis uh essentially again very similar to what we had looked at before, previously, uh, when I met with the subcommittee and uh members in, in this room we're talking a lot of the numbers there we're sort of high level trying to finalize those uh numbers in a little bit more detail, especially on the expense side, but essentially this will be part of the uh financial feasibility report um that will prepare so that that work is to be done in in. December, following up from that is an operational plan for developing the, the framework for the captive insurance entity, um, defining the structure, the governance, business processes, the implementation plan, um, so on and so forth that we hope to have done by mid-January. Then the last two components are the regulatory submission preparation, so this is us just kind of putting together all the uh reports and the information that we'll need when we submit this, uh, captive application to the um Arkansas Insurance department, um, you know, again, creating the business plan, the regulatory submission package and, and that, and we'll be all ready to hit the submit button, um, but we'll wait and, and this is, uh, item number 8 here, just a 100% confirm that we have a no. Goo, uh, scenario from the subcommittee and at that point, um, you know, and I'm anticipating that by the end of January, we'll have, uh, all this information completed. One final thing which I'll mention is the start dates and end dates, that's our best estimate at this time, um, knock on wood, we should be able to hit these time frames. Obviously there's a lot of holidays in there, there may be some feedback that we might need along the way. There are potentially some third parties that will need to uh connect with and and get involved in this process as well. So again, it's, it's hard to 100% say what the timing uh will look like, but with a little luck, we should have this done by the end. of January and, um, you know, and then from there we'll move forward with um the second part of that which would be the captive, uh, set up, uh, process, but right now this is the feasibility in the submission, uh, process. Um, so that's it, that's everything. Socommittee, a couple things that gotta happen. I need a motion to approve the amendment for the contract. The amendment doesn't change the price of the contract at all. It more aligns the contract with the industry standards in the way the process is going to move forward and it's this outline that was just handed out. So do I have that motion? A motion 2, all those in favor say aye. All posed, I have it. So with that or any further questioning for Kyle, seeing none. Thank you, uh, for your presentation. With that Excellent. Thanks everyone. We'll move along to the, uh, proposed amendment to the, uh, rules, uh, with that, I'll recognize Ms. Syer for explanation. Thank you, Mr. Chair, Jill Thayer, Bureau of Legislative Research, uh, you should all have it in your packet in front of you, proposed uh draft amendment to the Legislative council rules. You'll see on all of the changes are in red, and what this does simply is, uh, it. Removes the policymaking subcommittee and moves all of the duties of that subcommittee to the executive subcommittee. This would be effective, um. Following approval of the legislative council, which would happen in December. And so that would then move forward into the rules of the council for next year. Um, the only addition is, uh, the very last provision on page 10 is, uh, providing that, um, during a legislative session, the executive subcommittee would have final approval of contracts, uh, that came before it and would report that to the legislative council. I'll take any questions. Star, is that not been the common practice in the past. Uh, we looked back and the executive subcommittee has done that in the past, um, in 2021 during that session, you did do that, and both of the council chairs do have the authority to do that on their own, um, at this time. Thank you. See any other questions for the committee? Seeing none. Do I have a motion to approve the rule change. I got a motion, have a second. All those in favor, say ah. All posed, eyes have it. With that, seeing no other business, no report from the director, we stand adjourned.