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SB 94: "An Act establishing a division of blind services within the Department of Health and Social Services; and relating to the administration of the vocational rehabilitation program."

00 SENATE BILL NO. 94 01 "An Act establishing a division of blind services within the Department of Health and 02 Social Services; and relating to the administration of the vocational rehabilitation 03 program." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 23.15.010 is amended to read: 06 Sec. 23.15.010. Administration of vocational rehabilitation. The 07 commissioner shall administer the vocational rehabilitation program, except that the 08 commissioner of health and social services shall administer the program as it 09 relates to blind persons. 10 * Sec. 2. AS 23.15.100 is amended to read: 11 Sec. 23.15.100. Powers and duties [; VENDING FACILITIES]. (a) In 12 carrying out AS 23.15.010 - 23.15.210, the agency shall 13 (1) take the action it considers necessary or appropriate to carry out the 14 purposes of AS 23.15.010 - 23.15.210 and adopt regulations in conformity with these

01 purposes; 02 (2) determine the eligibility of applicants for vocational rehabilitation 03 service; 04 (3) submit to the governor annual reports of activities and expenditures 05 and, before each regular session of the legislature, estimates of sums required for 06 carrying out AS 23.15.010 - 23.15.210 and estimates of the amounts to be made 07 available for this purpose from all sources; 08 (4) cooperate with public and private departments, agencies, and 09 institutions in providing for the vocational rehabilitation of individuals with 10 disabilities, studying the problems involved in providing this rehabilitation, and 11 establishing, developing, and providing, in conformity with the purposes of 12 AS 23.15.010 - 23.15.210, the programs, facilities, and services that may be necessary 13 or desirable [; 14 (5) SURVEY THE POTENTIAL FOR PROVIDING VENDING 15 FACILITIES ON PUBLIC PROPERTY AND, WHEN FEASIBLE, ESTABLISH 16 VENDING FACILITIES OPERATED BY BLIND PERSONS AND PERSONS 17 WITH SEVERE DISABILITIES ON PUBLIC PROPERTY; 18 (6) LICENSE BLIND PERSONS AND PERSONS WITH SEVERE 19 DISABILITIES IN ACCORDANCE WITH AS 23.15.133 FOR THE OPERATION 20 OF VENDING FACILITIES ON PUBLIC PROPERTY, WITH BLIND PERSONS 21 HAVING FIRST PRIORITY FOR OPERATION OF THE VENDING FACILITIES; 22 (7) PROVIDE THE TRAINING AND SUPERVISION NECESSARY 23 TO ENABLE BLIND PERSONS AND PERSONS WITH SEVERE DISABILITIES 24 TO OPERATE VENDING FACILITIES; 25 (8) PROVIDE THE EQUIPMENT AND INITIAL STOCK 26 NECESSARY TO ENABLE BLIND PERSONS AND PERSONS WITH SEVERE 27 DISABILITIES TO OPERATE VENDING FACILITIES]. 28 (b) In carrying out AS 23.15.010 - 23.15.210, the agency may 29 (1) enter into agreements with other states to provide for the vocational 30 rehabilitation of residents of the states concerned; 31 (2) establish and operate rehabilitation facilities and workshops and

01 make grants to public and other nonprofit organizations for these purposes; 02 (3) supervise the operation of [VENDING STANDS AND OTHER] 03 small businesses established under AS 23.15.010 - 23.15.210 to be conducted by 04 individuals with severe disabilities; 05 (4) make studies, investigations, demonstrations, and reports, and 06 provide training and instruction, including the establishment and maintenance of the 07 research fellowships and traineeships with the stipends and allowances that are 08 considered necessary, in matters relating to vocational rehabilitation; and 09 (5) adopt regulations necessary for carrying out the provisions of 10 AS 23.15.010 - 23.15.210. 11 * Sec. 3. AS 23.15.120(a) is amended to read: 12 (a) The agency shall cooperate with the federal government in carrying out the 13 purposes of federal laws pertaining to vocational rehabilitation [, INCLUDING THE 14 LICENSING OF BLIND PERSONS TO OPERATE VENDING STANDS ON 15 FEDERAL PROPERTY,] and may adopt the methods of administration that are found 16 by the federal government to be necessary for the proper and efficient operation of 17 agreements or plans for vocational rehabilitation. The agency may comply with the 18 conditions that are necessary to obtain the full benefits of the federal laws for the state 19 and its residents. 20 * Sec. 4. AS 23.15.130(c) is amended to read: 21 (c) The commissioner of administration shall separately account for receipts 22 under (b) of this section that are paid into the vocational rehabilitation small business 23 enterprise revolving fund. The annual estimated receipts of the fund may be used by 24 the legislature to make appropriations to the division of blind services, established 25 under AS 47.80.500 [DEPARTMENT TO AID LICENSEES IN OPERATING 26 VENDING MACHINE FACILITIES]. 27 * Sec. 5. AS 23.15.130(d) is repealed and reenacted to read: 28 (d) In this section, 29 (1) "licensee" has the meaning given in AS 47.80.600; 30 (2) "net proceeds" means the gross receipts from operating a vending 31 facility less the costs of operation and a fair return to the operator, to be determined by

01 the division of blind services established under AS 47.80.500; 02 (3) "public property" has the meaning given in AS 47.80.600; 03 (4) "vending facility" has the meaning given in AS 47.80.600. 04 * Sec. 6. AS 23.15.133(b) is amended to read: 05 (b) A license issued before the effective date of this Act under this section 06 does not expire. However, a license may be revoked or relinquished if the division of 07 vocational rehabilitation [AGENCY] finds that the licensee is not operating the 08 facility in accordance with regulations adopted by the division of vocational 09 rehabilitation [AGENCY]. 10 * Sec. 7. AS 39.30.090(a) is amended to read: 11 (a) The Department of Administration may obtain a policy or policies of group 12 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 13 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 14 employees of other participating governmental units, or a licensee as defined in 15 AS 47.80.600 [PERSONS ENTITLED TO COVERAGE UNDER AS 23.15.136], 16 subject to the following conditions: 17 (1) A group insurance policy shall provide one or more of the 18 following benefits: life insurance, accidental death and dismemberment insurance, 19 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 20 dental expense insurance, audiovisual insurance, or other medical care insurance. 21 (2) Each eligible employee of the state, the spouse and the unmarried 22 children chiefly dependent on the eligible employee for support, and each eligible 23 employee of another participating governmental unit shall be covered by the group 24 policy, unless exempt under regulations adopted by the commissioner of 25 administration. 26 (3) A governmental unit may participate under a group policy if 27 (A) its governing body adopts a resolution authorizing 28 participation, and payment of required premiums; 29 (B) a certified copy of the resolution is filed with the 30 Department of Administration; and 31 (C) the commissioner of administration approves the

01 participation in writing. 02 (4) In procuring a policy of group health or group life insurance as 03 provided under this section or excess loss insurance as provided in AS 39.30.091, the 04 Department of Administration shall comply with the dual choice requirements of 05 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 06 transact business in the state under AS 21.09, a hospital or medical service corporation 07 authorized to transact business in this state under AS 21.87, or a health maintenance 08 organization authorized to operate in this state under AS 21.86. An excess loss 09 insurance policy may be obtained from a life or health insurer authorized to transact 10 business in this state under AS 21.09 or from a hospital or medical service corporation 11 authorized to transact business in this state under AS 21.87. 12 (5) The Department of Administration shall make available bid 13 specifications for desired insurance benefits or for administration of benefit claims and 14 payments to (A) all insurance carriers authorized to transact business in this state 15 under AS 21.09 and all hospital or medical service corporations authorized to transact 16 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to 17 insurance carriers authorized to transact business in this state under AS 21.09, hospital 18 or medical service corporations authorized to transact business under AS 21.87, and 19 third-party administrators licensed to transact business in this state and qualified to 20 provide administrative services. The specifications shall be made available at least 21 once every five years. The lowest responsible bid submitted by an insurance carrier, 22 hospital or medical service corporation, or third-party administrator with adequate 23 servicing facilities shall govern selection of a carrier, hospital or medical service 24 corporation, or third-party administrator under this section or the selection of an 25 insurance carrier or a hospital or medical service corporation to provide excess loss 26 insurance as provided in AS 39.30.091. 27 (6) If the aggregate of dividends payable under the group insurance 28 policy exceeds the governmental unit's share of the premium, the excess shall be 29 applied by the governmental unit for the sole benefit of the employees. 30 (7) A person receiving benefits under AS 14.25.110, AS 22.25, 31 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in

01 effect under this section at the time of termination of employment with the state or 02 participating governmental unit. 03 (8) A person electing to have insurance under (7) of this subsection 04 shall pay the cost of this insurance. 05 (9) For each permanent part-time employee electing coverage under 06 this section, the state shall contribute one-half the state contribution rate for permanent 07 full-time state employees, and the permanent part-time employee shall contribute the 08 other one-half. 09 (10) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 10 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 11 and eligible dependents under this section. The level of coverage for persons over 65 12 shall be the same as that available before reaching age 65 except that the benefits 13 payable shall be supplemental to any benefits provided under the federal old age, 14 survivors, and disability insurance program. A person electing to have insurance under 15 this paragraph shall pay the cost of the insurance. The commissioner of administration 16 shall adopt regulations implementing this paragraph. 17 (11) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 18 or former AS 39.37 may obtain long-term care insurance for that person and eligible 19 dependents under this section. A person who elects insurance under this paragraph 20 shall pay the cost of the insurance premium. The commissioner of administration shall 21 adopt regulations to implement this paragraph. 22 (12) Each licensee holding a current operating agreement for a vending 23 facility under AS 23.15.010 - 23.15.210 or AS 47.80.500 - 47.80.535 shall be covered 24 by the group policy that applies to governmental units other than the state. 25 * Sec. 8. AS 47.80.030 is amended by adding a new subsection to read: 26 (b) The council shall cooperate, coordinate, and consult with the division of 27 blind services whenever the council is carrying out duties of the council that relate to 28 blind persons. 29 * Sec. 9. AS 47.80 is amended by adding new sections to read: 30 Article 6. Division of Blind Services. 31 Sec. 47.80.500. Division of blind services. There is established in the

01 department the division of blind services for the purpose of coordinating and 02 providing services for blind persons. 03 Sec. 47.80.510. Duties of the division; report; regulations. (a) The division 04 shall, to the extent that sufficient appropriations and other funding are available, 05 (1) coordinate services for blind persons, including vocational 06 rehabilitation services available under AS 23.15; 07 (2) provide independent living and other services for blind persons; 08 (3) receive and disburse money available from federal, state, local, and 09 private sources for the benefit of blind persons; 10 (4) maintain a confidential register of blind persons who reside in the 11 state; the register must include the nature and cause of the person's blindness and 12 identified needs for educational, vocational, and industrial training; 13 (5) establish and implement a job placement program for blind 14 persons; 15 (6) establish and maintain an orientation and adjustment center with 16 qualified instructors for prevocational, vocational, and industrial training for eligible 17 blind persons; 18 (7) purchase specialized equipment and technology for blind persons 19 without approval of the Department of Administration; however, purchases are 20 otherwise subject to the requirements of AS 36.30 (State Procurement Code); 21 (8) prepare and update an annual comprehensive plan and long-range 22 plan relating to the needs of blind persons in the state and the availability of funding to 23 serve those needs; the division shall hold annual public hearings on the plan; 24 (9) formulate policies and programs to implement the purposes of the 25 division; 26 (10) provide information and advice, on request, to local, state, and 27 federal agencies and to individuals, businesses, and community organizations on 28 matters relating to blindness; 29 (11) survey the potential for providing vending facilities on public 30 property and, when feasible, establish vending facilities operated by blind persons on 31 public property;

01 (12) license blind persons in accordance with AS 47.80.520 for the 02 operation of vending facilities on public property; 03 (13) provide the training and supervision necessary to enable blind 04 persons to operate vending facilities; 05 (14) provide the equipment and initial stock necessary to enable blind 06 persons to operate vending facilities. 07 (b) In carrying out the duties under (a) of this section, the division may 08 (1) make recommendations to the governor and the legislature 09 concerning services and programs relating to blindness and blind persons; 10 (2) enter into contracts and agreements for the benefit of blind persons; 11 and 12 (3) adopt regulations necessary to implement AS 47.80.500 - 13 47.80.535. 14 (c) The division shall prepare and submit an annual report to the governor and 15 the legislature by January 30 of each year concerning the activities of the division 16 during the prior fiscal year. 17 Sec. 47.80.515. Vending facilities. (a) A vending facility may not be 18 established on public property that is under the jurisdiction of the state except as 19 authorized by the division. 20 (b) A vending facility authorized by the division shall be selected and located 21 after consulting with the persons responsible for the maintenance and operation of the 22 property to be served by the vending facility. A contract for the operation of the 23 vending facility by a licensee shall be executed by the division and must contain 24 provisions ensuring that the licensee shall charge reasonable prices and that the 25 vending facility shall provide high quality merchandise. 26 Sec. 47.80.520. Vendors' licenses. (a) The division shall issue a license for the 27 operation of a vending facility on public property to a blind person who is a resident of 28 the state at the time of application and who qualifies for a license under 29 (1) 20 U.S.C. 107 - 107f (Randolph-Sheppard Act); or 30 (2) regulations adopted by the division providing for licensing of blind 31 persons.

01 (b) A license issued under this section does not expire. However, a license 02 may be revoked if the division finds that the licensee is not operating the facility in 03 accordance with regulations adopted by the agency. 04 Sec. 47.80.525. Committee of blind vendors. (a) The Committee of Blind 05 Vendors consisting of all blind licensees is established in the division. The division 06 shall conduct a biennial election of a president, vice-president, secretary, and treasurer 07 of the committee and may conduct an election to fill a vacancy in office at any time. 08 (b) The commissioner of health and social services shall ensure active 09 participation by the Committee of Blind Vendors in administrative, policy, and 10 program development decisions concerning vending facilities operated by blind 11 licensees. The division shall, with active participation by the Committee of Blind 12 Vendors, 13 (1) adopt regulations providing for the licensing of blind persons for 14 the operation of vending facilities on public property; 15 (2) consider and respond to grievances of blind licensees; 16 (3) develop and administer a statewide system for the transfer and 17 promotion of blind licensees; 18 (4) develop training and retraining programs for blind licensees and for 19 blind persons interested in obtaining a license to operate a vending facility; 20 (5) organize meetings and conferences for blind licensees; 21 (6) adopt regulations necessary to ensure that vending facilities 22 operated by licensees are administered by the division in a substantially equivalent 23 manner whether a vending facility is located on state or federal property; 24 (7) designate public property as appropriate for the location of a 25 vending facility operated by a blind licensee. 26 (c) To ensure the opportunity for active participation in decisions that affect 27 the administration of vending facilities operated by blind licensees, the division shall, 28 before each meeting of the Committee of Blind Vendors, provide the committee with 29 written information on matters to be considered. The division shall provide the 30 committee with reasons in writing for decisions and actions of the division that do not 31 conform to recommendations submitted by the committee.

01 (d) In this section, "active participation" means a process through which the 02 Committee of Blind Vendors or a licensee is provided the opportunity to exert a major 03 influence in program policies, standards, and procedures affecting the operation of 04 vending facilities, with the commissioner of health and social services having final 05 responsibility. 06 Sec. 47.80.530. Group insurance for certain licensees. The division shall 07 purchase group insurance coverage under AS 39.30.090 for licensees holding current 08 operating agreements. The employer share of the insurance premium shall be paid 09 from the vocational rehabilitation small business enterprise revolving fund under 10 AS 23.15.130. 11 Sec. 47.80.535. Hearings. A blind person aggrieved by a decision or action of 12 the division under AS 47.80.500 - 47.80.535 shall receive a hearing on request in 13 accordance with AS 44.62.330 - 44.62.630 (Administrative Procedure Act). A blind 14 person may also file a complaint in accordance with 20 U.S.C. 107d-1 for arbitration 15 of a grievance. 16 Sec. 47.80.600. Definitions. In AS 47.80.500-47.80.600, 17 (1) "blind person" means a person whose central visual acuity does not 18 exceed 20/200 in the better eye with correcting lenses, or whose visual acuity, if better 19 than 20/200, is accompanied by a limit to the field of vision in the better eye to the 20 degree that its widest diameter subtends an angle of not greater than 20 degrees; an 21 examination by an ophthalmologist or by an optometrist is necessary before a person 22 is found to be blind; 23 (2) "division" means the division of blind services; 24 (3) "licensee" means 25 (A) a blind person or a person with a severe disability licensed 26 by the division of vocational rehabilitation under 20 U.S.C. 107 - 107b and 27 107d - 107f (Randolph-Sheppard Act), former AS 23.15.133(a), and 28 regulations adopted under federal or state law; and 29 (B) a blind person licensed by the division of blind services 30 under AS 47.80.520; 31 (4) "public property" means real or personal property owned or leased

01 by the state or federal government or an agency of the state or federal government; 02 (5) "vending facility" means a vending machine, cafeteria, snack bar, 03 shelter, cart, or counter where food, tobacco, newspapers, periodicals, and other 04 articles are offered for sale to the general public and dispensed automatically or 05 manually whether prepared on or off the premises; and excludes a facility in a 06 hospital, school, or other institution where food or other articles are offered for sale 07 only to patients, inmates, and persons enrolled in or employed by the institution. 08 * Sec. 10. AS 23.15.132, 23.15.133(a), 23.15.134, 23.15.135, 23.15.136, 23.15.180(b), 09 23.15.210(1), 23.15.210(3), 23.15.210(7), 23.15.210(8), 23.15.210(9), and 23.15.210(10) are 10 repealed. 11 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 TRANSITION. (a) A person who is licensed as a vendor under former 14 AS 23.15.133(a) may continue to operate a vending facility on public property until the 15 vendor's current license is relinquished or revoked, after which time a new vendor license 16 shall be issued by the division of blind services under AS 47.80.520, added by sec. 9 of this 17 Act. 18 (b) A person who is a member of the committee of blind vendors under former 19 AS 23.15.135 on the effective date of this Act shall continue as a member of the committee 20 established under AS 47.80.525, added by sec. 9 of this Act, until the expiration of the 21 member's term.