00                            HOUSE BILL NO. 170                                                                          
01 "An Act relating to the qualifications of public members of the Public Employees'                                       
02 Retirement Board and the Alaska Teachers' Retirement Board."                                                            
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.25.035(a) is amended to read:                                                                  
05            (a)  There is established the Alaska Teachers' Retirement Board as follows:                                  
06                 (1)  the governor shall appoint five members for overlapping three-year                                 
07       terms; [ONE MEMBER MUST BE A RESIDENT WHO IS RECEIVING                                                            
08       RETIREMENT BENEFITS UNDER THIS CHAPTER;] statewide teacher                                                        
09       organizations may submit to the governor a list of recommended nominees to serve on                               
10       the board; of the five members appointed by the governor under this paragraph,                                
11                      (A)  three of the five shall be persons who are not and have                                   
12            never been employed by an employer participating in a retirement                                         
13            program under this chapter, AS 14.40, AS 22.25, AS 26.05, AS 39.35, or                                   
14            former AS 39.37; and                                                                                     

01                      (B)  at least two of the five shall have significant private                                   
02            sector experience in administration, financing, accounting, or economic                                  
03            development;                                                                                             
04                 (2)  the governor shall appoint two physicians authorized to practice                                   
05       medicine in the state to serve as members of the board and two physicians authorized                              
06       to practice medicine in the state to serve as alternate members to the physician                                  
07       members of the board; the physicians are members of the board only for the purpose                                
08       of hearing appeals to determine medical eligibility for disability benefits under                                 
09       AS 14.25.130; the Public Employees' Retirement Board and the Teachers' Retirement                                 
10       Board may submit to the governor a list of recommended physicians to serve on the                                 
11       board; if the administrator, after making a reasonable effort to secure the participation                         
12       of two physicians to serve on a disability appeal, is unable to do so, the board may                              
13       hear the appeal with the participation of only one physician or alternate, in which case,                         
14       for purposes of a quorum, the board shall be considered to have only one physician as                             
15       a member; physician members and alternates serve at the pleasure of the governor.                                 
16    * Sec. 2.  AS 39.35.030(b) is amended to read:                                                                     
17            (b)  Three public members are appointed by the governor to serve at the                                      
18       pleasure of the governor for six-year staggered terms.  [ONE OF THE PUBLIC                                        
19       MEMBERS MUST BE OR HAVE BEEN EMPLOYED BY AN EMPLOYER                                                              
20       OTHER THAN THE STATE OF ALASKA.]  The governor shall fill a vacancy in an                                         
21       unexpired appointive term by appointment for the remainder of the term.  The three                            
22       public members appointed by the governor under this subsection shall be persons                               
23       who are not and have never been employed by an employer participating in a                                    
24       retirement program under AS 14.25, AS 14.40, AS 22.25, AS 26.05, this chapter,                                
25       or former AS 39.37.  At least two of the three public members shall have                                      
26       significant private sector experience in administration, financing, accounting, or                            
27       economic development.                                                                                         
28    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
29 read:                                                                                                                   
30       TRANSITIONAL PROVISION.  The term of a public member of the Alaska                                                
31 Teachers' Retirement Board or the Public Employees' Retirement Board who has been                                       

01 appointed by the governor before the effective date of this Act is not affected by this Act.