Legislature(2017 - 2018)

2017-03-13 House Journal

Full Journal pdf

2017-03-13                     House Journal                      Page 0471
HB 23                                                                                                                         
The following, which was held to today's calendar (page 456), was                                                               
read the second time:                                                                                                           
                                                                                                                                
    HOUSE BILL NO. 23                                                                                                           
    "An Act relating to major medical insurance coverage under the                                                              
    Public Employees' Retirement System of Alaska for certain                                                                   
    surviving spouses and dependent children of peace officers and                                                              
    firefighters; and providing for an effective date."                                                                         
                                                                                                                                
with the:                                                  Journal Page                                                         
                                                                                                                                
 FIN RPT CS(FIN) NT 7DP 3AM                                         288                                                         
 FN1: ZERO(ADM)                                                     289                                                         
 FN2: ZERO(DPS)                                                     289                                                         
 FN3: (GOV/FUND CAP)                                                289                                                         
                                                                                                                                
Representative Tuck moved and asked unanimous consent that the                                                                  
following committee substitute be adopted in lieu of the original bill:                                                         
                                                                                                                                

2017-03-13                     House Journal                      Page 0472
    CS FOR HOUSE BILL NO. 23(FIN)                                                                                               
    "An Act creating a fund in the Department of Public Safety;                                                                 
    providing for payment of certain medical insurance premiums for                                                             
    surviving dependents of certain peace officers or firefighters who                                                          
    die in the line of duty; and providing for an effective date."                                                              
                                                                                                                                
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
Amendment No. 1 was offered  by Representative Wilson:                                                                           
                                                                                                                                
Page 1, line 2 (title amendment):                                                                                               
    Following "of certain":                                                                                                 
         Insert "state employees,"                                                                                            
    Following "officers":                                                                                                     
         Insert ","                                                                                                           
                                                                                                                                
Page 1, following line 4:                                                                                                       
    Insert new bill sections to read:                                                                                           
   "* Section 1. AS 39.30.090(a) is amended to read:                                                                          
         (a)  The Department of Administration may obtain a policy or                                                           
    policies of group insurance covering state employees, persons                                                               
    entitled to coverage under AS 14.25.168, 14.25.480,                                                                         
    AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,                                                              
    employees of other participating governmental units, or persons                                                             
    entitled to coverage under AS 23.15.136, subject to the following                                                           
    conditions:                                                                                                                 
             (1)  a group insurance policy shall provide one or more of                                                         
    the following benefits: life insurance, accidental death and                                                                
    dismemberment insurance, weekly indemnity insurance, hospital                                                               
    expense insurance, surgical expense insurance, dental expense                                                               
    insurance, audiovisual insurance, or other medical care insurance;                                                          
             (2)  each eligible employee of the state, the spouse and                                                           
    the unmarried children chiefly dependent on the eligible employee                                                           
    for support, [AND] each eligible employee of another                                                                        
    participating governmental unit, and each person who is eligible                                                        
    for coverage under (13) of this subsection shall be covered by                                                          
    the group policy, unless exempt under regulations adopted by the                                                            
    commissioner of administration;                                                                                             
             (3)  a governmental unit may participate under a group                                                             
    policy if                                                                                                                   

2017-03-13                     House Journal                      Page 0473
                 (A)  its governing body adopts a resolution                                                                    
         authorizing participation and payment of required premiums;                                                            
                 (B)  a certified copy of the resolution is filed with the                                                      
         Department of Administration; and                                                                                      
                 (C)  the commissioner of administration approves the                                                           
         participation in writing;                                                                                              
             (4)  in procuring a policy of group health or group life                                                           
    insurance as provided under this section or excess loss insurance                                                           
    as provided in AS 39.30.091, the Department of Administration                                                               
    shall comply with the dual choice requirements of AS 21.86.310,                                                             
    and shall obtain the insurance policy from an insurer authorized to                                                         
    transact business in the state under AS 21.09, a hospital or                                                                
    medical service corporation authorized to transact business in this                                                         
    state under AS 21.87, or a health maintenance organization                                                                  
    authorized to operate in this state under AS 21.86; an excess loss                                                          
    insurance policy may be obtained from a life or health insurer                                                              
    authorized to transact business in this state under AS 21.09 or                                                             
    from a hospital or medical service corporation authorized to                                                                
    transact business in this state under AS 21.87;                                                                             
             (5)  the Department of Administration shall make                                                                   
    available bid specifications for desired insurance benefits or for                                                          
    administration of benefit claims and payments to (A) all insurance                                                          
    carriers authorized to transact business in this state under                                                                
    AS 21.09 and all hospital or medical service corporations                                                                   
    authorized to transact business under AS 21.87 who are qualified                                                            
    to provide the desired benefits; and (B) insurance carriers                                                                 
    authorized to transact business in this state under AS 21.09,                                                               
    hospital or medical service corporations authorized to transact                                                             
    business under AS 21.87, and third-party administrators licensed                                                            
    to transact business in this state and qualified to provide                                                                 
    administrative services; the specifications shall be made available                                                         
    at least once every five years; the lowest responsible bid submitted                                                        
    by an insurance carrier, hospital or medical service corporation, or                                                        
    third-party administrator with adequate servicing facilities shall                                                          
    govern selection of a carrier, hospital or medical service                                                                  
    corporation, or third-party administrator under this section or the                                                         
    selection of an insurance carrier or a hospital or medical service                                                          
    corporation to provide excess loss insurance as provided in                                                                 
    AS 39.30.091;                                                                                                               
             (6)  if the aggregate of dividends payable under the group                                                         

2017-03-13                     House Journal                      Page 0474
    insurance policy exceeds the governmental unit's share of the                                                               
    premium, the excess shall be applied by the governmental unit for                                                           
    the sole benefit of the employees;                                                                                          
             (7)  a person receiving benefits under AS 14.25.110,                                                               
    AS 22.25, AS 39.35, or former AS 39.37 may continue the life                                                                
    insurance coverage that was in effect under this section at the time                                                        
    of termination of employment with the state or participating                                                                
    governmental unit;                                                                                                          
             (8)  a person electing to have insurance under (7) of this                                                         
    subsection shall pay the cost of this insurance;                                                                            
             (9)  for each permanent part-time employee electing                                                                
    coverage under this section, the state shall contribute one-half the                                                        
    state contribution rate for permanent full-time state employees,                                                            
    and the permanent part-time employee shall contribute the other                                                             
    one-half;                                                                                                                   
             (10)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory,                                                                 
    visual, and dental insurance for that person and eligible                                                                   
    dependents under this section; the level of coverage for persons                                                            
    over 65 shall be the same as that available before reaching age 65                                                          
    except that the benefits payable shall be supplemental to any                                                               
    benefits provided under the federal old age, survivors, and                                                                 
    disability insurance program; a person electing to have insurance                                                           
    under this paragraph shall pay the cost of the insurance; the                                                               
    commissioner of administration shall adopt regulations                                                                      
    implementing this paragraph;                                                                                                
             (11)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term                                                                 
    care insurance for that person and eligible dependents under this                                                           
    section; a person who elects insurance under this paragraph shall                                                           
    pay the cost of the insurance premium; the commissioner of                                                                  
    administration shall adopt regulations to implement this                                                                    
    paragraph;                                                                                                                  
             (12)  each licensee holding a current operating agreement                                                          
    for a vending facility under AS 23.15.010 - 23.15.210 shall be                                                              
    covered by the group policy that applies to governmental units                                                              
    other than the state;                                                                                                   
             (13)  each person who is eligible to receive a benefit                                                         
    under AS 39.35.430 or 39.35.892 as the surviving spouse or                                                              
    dependent child of an employee is eligible for employee                                                                 

2017-03-13                     House Journal                      Page 0475
    coverage under the policy of group insurance under this                                                                 
    subsection, AS 39.30.091, or 39.30.095 that covered the                                                                 
    employee not withstanding a provision of those sections to the                                                          
    contrary; this paragraph does not apply to a surviving spouse                                                           
    who is eligible for Medicare.                                                                                           
   * Sec. 2. AS 39.30.095 is amended by adding a new subsection to                                                            
read:                                                                                                                           
         (g)  Notwithstanding (b) and (e) of this section, for the cost of                                                      
    providing benefits under AS 39.30.090(a)(13), the commissioner                                                              
    of administration shall set the rate of employer contribution at 100                                                        
    percent."                                                                                                                   
                                                                                                                                
Page 1, line 5:                                                                                                                 
    Delete "Section 1"                                                                                                        
    Insert "Sec. 3"                                                                                                           
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 1, line 6, following "of":                                                                                               
    Insert "Municipal"                                                                                                        
                                                                                                                                
Page 1, line 13, following "firefighter":                                                                                       
    Insert "who was employed by a municipality"                                                                                 
                                                                                                                                
Page 2, line 12:                                                                                                                
    Delete "The"                                                                                                                
    Insert "Subject to AS 39.60.050 - 39.60.070, the"                                                                           
                                                                                                                                
Page 2, lines 13 - 14:                                                                                                          
    Delete "medical insurance premiums for a surviving dependent of                                                             
a state employee who is eligible under AS 39.60.040,"                                                                           
                                                                                                                                
Page 2, lines 25 - 26:                                                                                                          
    Delete all material and insert:                                                                                             
             "(1)  at the time of death, the employee was not covered                                                           
    by a policy obtained under AS 39.30.090 or 39.30.095 that                                                                   
    provided major medical coverage, and was a full-time employee                                                               
    of a municipality that has elected to participate under                                                                     
    AS 39.60.050;"                                                                                                              
                                                                                                                                

2017-03-13                     House Journal                      Page 0476
Page 3, line 16, following "made":                                                                                              
    Insert ", for an employee of a municipality that has elected to                                                             
participate under AS 39.60.050 and complies with AS 39.60.050 -                                                                 
39.60.070,"                                                                                                                     
                                                                                                                                
Page 3, lines 18 - 22:                                                                                                          
    Delete all material and insert:                                                                                             
             "(1)  the commissioner shall pay 50 percent for an eligible                                                        
    surviving dependent of a deceased employee of a small                                                                       
    municipality;"                                                                                                              
                                                                                                                                
Page 3, following line 26:                                                                                                      
    Insert new sections to read:                                                                                                
         "Sec. 39.60.050. Municipal election to participate in peace                                                          
    officer and firefighter survivors' fund. (a) A municipality may                                                           
    elect to participate in the fund by entering into an agreement with                                                         
    the commissioner that is consistent with AS 39.60.070. If a                                                                 
    municipality elects to participate in the fund, the commissioner                                                            
    shall determine the amount and frequency of the municipality's                                                              
    required contributions to the fund based on the anticipated cost of                                                         
    the municipality's participation, including the department's cost of                                                        
    administering the agreement under this subsection.                                                                          
         (b)  The commissioner shall administer agreements entered                                                              
    into under (a) of this section.                                                                                             
         (c)  A surviving dependent of a peace officer or firefighter                                                           
    who died while employed by a municipality is not eligible for                                                               
    payments from the fund unless the municipality elects to                                                                    
    participate in the fund and is in compliance with an agreement                                                              
    entered into under (a) of this section.                                                                                     
         Sec. 39.60.060. Eligibility of municipal peace officers and                                                          
    firefighters. (a) Notwithstanding AS 39.60.050(c), the                                                                    
    commissioner may determine that a surviving dependent of a                                                                  
    peace officer or firefighter who was employed by a municipality is                                                          
    eligible for premium payments under AS 39.60.040(b), if the                                                                 
    municipality elects to participate in the fund after the employee's                                                         
    death and is in compliance with the terms of an agreement entered                                                           
    into under AS 39.60.050(a).                                                                                                 
         (b)  If a municipality enters into an agreement under                                                                  
    AS 39.60.050(a) and fails to meet a requirement of that                                                                     
    agreement, including a requirement under AS 39.60.070, the                                                                  

2017-03-13                     House Journal                      Page 0477
    commissioner may determine that a surviving dependent of a                                                                  
    peace officer or firefighter employed by a municipality who would                                                           
    otherwise be eligible for payments from the fund under                                                                      
    AS 39.60.040(b) is ineligible and deny payment from the fund                                                                
    until the commissioner determines all requirements of the                                                                   
    agreement are satisfied.                                                                                                    
         Sec. 39.60.070. Terms of agreement by municipality to                                                                
    participate in fund. An agreement under AS 39.60.050(a) for a                                                             
    municipality to participate in the fund must require that the                                                               
    municipality                                                                                                                
             (1)  contribute to the fund as determined by the                                                                   
    commissioner under AS 39.60.050(a);                                                                                         
             (2)  is current with contributions required under this                                                             
    section; and                                                                                                                
             (3)  complies with applicable regulations adopted by the                                                           
    commissioner."                                                                                                              
                                                                                                                                
Page 4, line 27:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 3 and 4"                                                                                                      
                                                                                                                                
Page 4, line 28:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 3 and 4"                                                                                                      
                                                                                                                                
Page 4, line 30:                                                                                                                
    Delete "Section 3"                                                                                                          
    Insert "Section 5"                                                                                                          
                                                                                                                                
Page 4, line 31:                                                                                                                
    Delete "sec. 4"                                                                                                             
    Insert "sec. 6"                                                                                                             
                                                                                                                                
Representative Wilson moved and asked unanimous consent that                                                                    
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                

2017-03-13                     House Journal                      Page 0478
CSHB 23(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 1                                                                                                                 
                                                                                                                                
YEAS:  10   NAYS:  30   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Chenault, Eastman, Johnson, Rauscher, Reinbold, Saddler,                                                                 
Talerico, Thompson, Tilton, Wilson                                                                                              
                                                                                                                                
Nays:  Birch, Claman, Drummond, Edgmon, Fansler, Foster, Gara,                                                                  
Grenn, Guttenberg, Johnston, Josephson, Kawasaki, Kito, Knopp,                                                                  
Kopp, Kreiss-Tomkins, LeDoux, Millett, Neuman, Ortiz, Parish,                                                                   
Pruitt, Seaton, Spohnholz, Stutes, Sullivan-Leonard, Tarr, Tuck,                                                                
Westlake, Wool                                                                                                                  
                                                                                                                                
And so, Amendment No. 1 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 2 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 1, lines 2 - 3 (title amendment):                                                                                          
    Delete "certain peace officers or firefighters"                                                                           
    Insert "law enforcement employees, firefighters, and public                                                               
safety support employees"                                                                                                     
                                                                                                                                
Page 1, line 6:                                                                                                                 
    Delete "Peace Officers and Firefighters"                                                                                  
    Insert "Law Enforcement Employees, Firefighters, and Public                                                               
Safety Support Employees"                                                                                                     
                                                                                                                                
Page 1, line 7:                                                                                                                 
    Delete "Peace officer and firefighter"                                                                                    
    Insert "Law enforcement employee, firefighter, and public                                                                 
safety support employee"                                                                                                      
                                                                                                                                
Page 1, line 9:                                                                                                                 
    Delete "peace officers and firefighters"                                                                                    
    Insert "law enforcement employees, firefighters, and public safety                                                          
support employees"                                                                                                              
                                                                                                                                
Page 1, line 10:                                                                                                                
    Delete "Peace officer and firefighter"                                                                                    
    Insert "Law enforcement employee, firefighter, and public                                                                 
safety support employee"                                                                                                      
                                                                                                                                

2017-03-13                     House Journal                      Page 0479
Page 1, line 11:                                                                                                                
    Delete "peace officer and firefighter"                                                                                      
    Insert "law enforcement employee, firefighter, and public safety                                                            
support employee"                                                                                                               
                                                                                                                                
Page 1, line 13:                                                                                                                
    Delete "peace officer or firefighter"                                                                                       
    Insert "law enforcement employee, firefighter, or public safety                                                             
support employee"                                                                                                               
                                                                                                                                
Page 2, line 1:                                                                                                                 
    Delete "peace officer or firefighter"                                                                                       
    Insert "law enforcement employee, firefighter, or public safety                                                             
support employee"                                                                                                               
                                                                                                                                
Page 2, line 17 - 18:                                                                                                           
    Delete "peace officers and firefighters"                                                                                  
    Insert "law enforcement employees, firefighters, or public                                                                
safety support employees"                                                                                                     
                                                                                                                                
Page 2, line 19:                                                                                                                
    Delete "peace officer or firefighter"                                                                                       
    Insert "law enforcement employee, firefighter, or public safety                                                             
support employee"                                                                                                               
                                                                                                                                
Page 2, lines 23 - 24:                                                                                                          
    Delete "peace officer or firefighter"                                                                                       
    Insert "law enforcement employee, firefighter, or public safety                                                             
support employee"                                                                                                               
                                                                                                                                
Page 4, following line 6:                                                                                                       
    Insert a new paragraph to read:                                                                                             
             "(7)  "investigator" means an employee, other than a                                                               
    firefighter, in a position that requires the employee to investigate                                                        
    matters of law enforcement or public safety regularly for a law                                                             
    enforcement agency or fire department;"                                                                                     
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 4, following line 9:                                                                                                       

2017-03-13                     House Journal                      Page 0480
    Insert a new paragraph to read:                                                                                             
             "(9)  "law enforcement employee" means an employee                                                                 
    occupying a position as a                                                                                                   
                 (A)  probation officer;                                                                                        
                 (B)  parole officer;                                                                                           
                 (C)  prosecutor;                                                                                               
                 (D)  peace officer;                                                                                            
                 (E)  investigator;                                                                                             
                 (F)  fire marshal or deputy fire marshal;                                                                      
                 (G)  University of Alaska public safety officer with                                                           
         general police powers authorized under AS 14.40.043;                                                                  
                 (H)  officer or employee of the Department of                                                                  
         Transportation and Public Facilities who is stationed at an                                                            
         international airport and has been designated to have the                                                              
         general police powers authorized under AS 02.15.230(a);"                                                               
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 4, following line 12:                                                                                                      
    Insert a new paragraph to read:                                                                                             
             "(11)  "public safety support employee" means an                                                                   
    employee occupying a position                                                                                               
                 (A) as a law enforcement or public safety dispatcher;                                                          
                 (B) as a crime law technician;                                                                                 
                 (C) that requires the employee                                                                                 
                      (i)  regularly to serve at a duty station at a state or                                                   
             municipal park; and                                                                                                
                      (ii)  to assist a peace officer or firefighter with                                                       
             enforcing the law;"                                                                                                
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 4, lines 19 - 20:                                                                                                          
    Delete "peace officer and firefighter"                                                                                      
    Insert "law enforcement employee, firefighter, and public safety                                                            
support employee"                                                                                                               
                                                                                                                                
Page 4, lines 22 - 23:                                                                                                          
    Delete "peace officer and firefighter"                                                                                      
    Insert "law enforcement employee, firefighter, and public safety                                                            
support employee"                                                                                                               

2017-03-13                     House Journal                      Page 0481
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
Representative Eastman moved and asked unanimous consent to                                                                     
withdraw Amendment No. 2.  There being no objection, it was so                                                                  
ordered.                                                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representative Wilson:                                                                           
                                                                                                                                
Page 3, line 5:                                                                                                                 
    Delete "(1)"                                                                                                                
                                                                                                                                
Page 3, line 6:                                                                                                                 
    Delete "; or"                                                                                                               
    Insert "or 10 years after the date of the employee's death."                                                                
                                                                                                                                
Page 3, line 7:                                                                                                                 
    Delete all material.                                                                                                        
                                                                                                                                
Representative Wilson moved and asked unanimous consent that                                                                    
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Millett objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 23(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  11   NAYS:  29   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Birch, Eastman, Johnson, Johnston, Knopp, Pruitt, Reinbold,                                                              
Saddler, Sullivan-Leonard, Tilton, Wilson                                                                                       
                                                                                                                                
Nays:  Chenault, Claman, Drummond, Edgmon, Fansler, Foster, Gara,                                                               
Grenn, Guttenberg, Josephson, Kawasaki, Kito, Kopp,                                                                             
Kreiss-Tomkins, LeDoux, Millett, Neuman, Ortiz, Parish, Rauscher,                                                               
Seaton, Spohnholz, Stutes, Talerico, Tarr, Thompson, Tuck, Westlake,                                                            
Wool                                                                                                                            
                                                                                                                                

2017-03-13                     House Journal                      Page 0482
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 4 was offered  by Representative Wilson:                                                                           
                                                                                                                                
Page 1, line 8:                                                                                                                 
    Delete "the"                                                                                                                
    Insert "participating"                                                                                                      
                                                                                                                                
Page 2, line 16, following "fund.":                                                                                             
    Insert "The commissioner may not pay a premium for an eligible                                                              
dependent of a municipal employee from the fund unless the                                                                      
municipal employer has paid the corresponding amount of premium                                                                 
payable by the municipality under AS 39.60.040(e)."                                                                             
                                                                                                                                
Representative Wilson moved and asked unanimous consent that                                                                    
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 23(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  15   NAYS:  25   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Birch, Chenault, Eastman, Johnson, Johnston, Knopp, Neuman,                                                              
Pruitt, Rauscher, Saddler, Sullivan-Leonard, Talerico, Thompson,                                                                
Tilton, Wilson                                                                                                                  
                                                                                                                                
Nays:  Claman, Drummond, Edgmon, Fansler, Foster, Gara, Grenn,                                                                  
Guttenberg, Josephson, Kawasaki, Kito, Kopp, Kreiss-Tomkins,                                                                    
LeDoux, Millett, Ortiz, Parish, Reinbold, Seaton, Spohnholz, Stutes,                                                            
Tarr, Tuck, Westlake, Wool                                                                                                      
                                                                                                                                
And so, Amendment No. 4 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 5 was offered  by Representative Eastman:                                                                          
                                                                                                                                
                                                                                                                                

2017-03-13                     House Journal                      Page 0483
Page 1, line 2 (title amendment):                                                                                               
    Following "of certain":                                                                                                 
         Insert "state employees,"                                                                                            
    Following "officers":                                                                                                     
         Insert ","                                                                                                           
                                                                                                                                
Page 1, following line 4:                                                                                                       
    Insert new bill sections to read:                                                                                           
   "* Section 1.  AS 37.05.146(c) is amended by adding a new                                                                  
paragraph to read:                                                                                                              
             (90) receipts of the peace officer and firefighter survivors'                                                      
    fund under AS 39.60.                                                                                                        
   * Sec. 2. AS 39.30.090(a) is amended to read:                                                                              
         (a)  The Department of Administration may obtain a policy or                                                           
    policies of group insurance covering state employees, persons                                                               
    entitled to coverage under AS 14.25.168, 14.25.480,                                                                         
    AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,                                                              
    employees of other participating governmental units, or persons                                                             
    entitled to coverage under AS 23.15.136, subject to the following                                                           
    conditions:                                                                                                                 
             (1)  a group insurance policy shall provide one or more of                                                         
    the following benefits: life insurance, accidental death and                                                                
    dismemberment insurance, weekly indemnity insurance, hospital                                                               
    expense insurance, surgical expense insurance, dental expense                                                               
    insurance, audiovisual insurance, or other medical care insurance;                                                          
             (2)  each eligible employee of the state, the spouse and                                                           
    the unmarried children chiefly dependent on the eligible employee                                                           
    for support, [AND] each eligible employee of another                                                                        
    participating governmental unit, and each person who is eligible                                                        
    for coverage as the result of an election made under (13) of                                                            
    this subsection shall be covered by the group policy, unless                                                            
    exempt under regulations adopted by the commissioner of                                                                     
    administration;                                                                                                             
             (3)  a governmental unit may participate under a group                                                             
    policy if                                                                                                                   
                 (A)  its governing body adopts a resolution                                                                    
         authorizing participation and payment of required premiums;                                                            
                 (B)  a certified copy of the resolution is filed with the                                                      
         Department of Administration; and                                                                                      
                 (C)  the commissioner of administration approves the                                                           

2017-03-13                     House Journal                      Page 0484
         participation in writing;                                                                                              
             (4)  in procuring a policy of group health or group life                                                           
    insurance as provided under this section or excess loss insurance                                                           
    as provided in AS 39.30.091, the Department of Administration                                                               
    shall comply with the dual choice requirements of AS 21.86.310,                                                             
    and shall obtain the insurance policy from an insurer authorized to                                                         
    transact business in the state under AS 21.09, a hospital or                                                                
    medical service corporation authorized to transact business in this                                                         
    state under AS 21.87, or a health maintenance organization                                                                  
    authorized to operate in this state under AS 21.86; an excess loss                                                          
    insurance policy may be obtained from a life or health insurer                                                              
    authorized to transact business in this state under AS 21.09 or                                                             
    from a hospital or medical service corporation authorized to                                                                
    transact business in this state under AS 21.87;                                                                             
             (5)  the Department of Administration shall make                                                                   
    available bid specifications for desired insurance benefits or for                                                          
    administration of benefit claims and payments to (A) all insurance                                                          
    carriers authorized to transact business in this state under                                                                
    AS 21.09 and all hospital or medical service corporations                                                                   
    authorized to transact business under AS 21.87 who are qualified                                                            
    to provide the desired benefits; and (B) insurance carriers                                                                 
    authorized to transact business in this state under AS 21.09,                                                               
    hospital or medical service corporations authorized to transact                                                             
    business under AS 21.87, and third-party administrators licensed                                                            
    to transact business in this state and qualified to provide                                                                 
    administrative services; the specifications shall be made available                                                         
    at least once every five years; the lowest responsible bid submitted                                                        
    by an insurance carrier, hospital or medical service corporation, or                                                        
    third-party administrator with adequate servicing facilities shall                                                          
    govern selection of a carrier, hospital or medical service                                                                  
    corporation, or third-party administrator under this section or the                                                         
    selection of an insurance carrier or a hospital or medical service                                                          
    corporation to provide excess loss insurance as provided in                                                                 
    AS 39.30.091;                                                                                                               
             (6)  if the aggregate of dividends payable under the group                                                         
    insurance policy exceeds the governmental unit's share of the                                                               
    premium, the excess shall be applied by the governmental unit for                                                           
    the sole benefit of the employees;                                                                                          
             (7)  a person receiving benefits under AS 14.25.110,                                                               
    AS 22.25, AS 39.35, or former AS 39.37 may continue the life                                                                

2017-03-13                     House Journal                      Page 0485
    insurance coverage that was in effect under this section at the time                                                        
    of termination of employment with the state or participating                                                                
    governmental unit;                                                                                                          
             (8)  a person electing to have insurance under (7) of this                                                         
    subsection shall pay the cost of this insurance;                                                                            
             (9)  for each permanent part-time employee electing                                                                
    coverage under this section, the state shall contribute one-half the                                                        
    state contribution rate for permanent full-time state employees,                                                            
    and the permanent part-time employee shall contribute the other                                                             
    one-half;                                                                                                                   
             (10)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory,                                                                 
    visual, and dental insurance for that person and eligible                                                                   
    dependents under this section; the level of coverage for persons                                                            
    over 65 shall be the same as that available before reaching age 65                                                          
    except that the benefits payable shall be supplemental to any                                                               
    benefits provided under the federal old age, survivors, and                                                                 
    disability insurance program; a person electing to have insurance                                                           
    under this paragraph shall pay the cost of the insurance; the                                                               
    commissioner of administration shall adopt regulations                                                                      
    implementing this paragraph;                                                                                                
             (11)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term                                                                 
    care insurance for that person and eligible dependents under this                                                           
    section; a person who elects insurance under this paragraph shall                                                           
    pay the cost of the insurance premium; the commissioner of                                                                  
    administration shall adopt regulations to implement this                                                                    
    paragraph;                                                                                                                  
             (12)  each licensee holding a current operating agreement                                                          
    for a vending facility under AS 23.15.010 - 23.15.210 shall be                                                              
    covered by the group policy that applies to governmental units                                                              
    other than the state;                                                                                                   
             (13)  subject to (14) and (15) of this subsection, an                                                          
    employee of the state who is covered by a policy of group                                                               
    medical insurance under this section, AS 39.30.091, or                                                                  
    39.30.095 may elect coverage that extends the benefits                                                                  
    provided beyond the date of the employee's death to cover a                                                             
    surviving spouse or dependent child of the employee who is                                                              
    eligible to receive a benefit under AS 39.35.530 or 39.35.892                                                           
    and is not eligible for Medicare;                                                                                       

2017-03-13                     House Journal                      Page 0486
             (14)  an employee who elects extended coverage under                                                           
    (13) of this subsection shall contribute monthly, by automatic                                                          
    payroll deduction, an amount determined by the                                                                          
    commissioner of administration under (15) of this subsection;                                                           
             (15)  the commissioner of administration shall                                                                 
    determine the amount of the employee contribution under (14)                                                            
    of this subsection based on the increase in the premium costs                                                           
    payable by the state as a result of including in a policy of                                                            
    group medical insurance under this section, AS 39.30.091, or                                                            
    39.30.095, the benefit for persons eligible for coverage as the                                                         
    result of an election made under (13) of this subsection.                                                               
   * Sec. 3. AS 39.30.095 is amended by adding a new subsection to                                                            
read:                                                                                                                           
         (g)  Notwithstanding (b) and (e) of this section, for the cost of                                                      
    providing benefits to an eligible surviving spouse or dependent                                                             
    child under AS 39.30.090(a)(13), the commissioner of                                                                        
    administration shall set the rate of employer contribution at 100                                                           
    percent."                                                                                                                   
                                                                                                                                
Page 1, line 5:                                                                                                                 
    Delete "Section 1"                                                                                                        
    Insert "Sec. 4"                                                                                                           
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 1, line 6, following "of":                                                                                               
    Insert "Municipal"                                                                                                        
                                                                                                                                
Page 1, line 7:                                                                                                                 
    Delete "Peace"                                                                                                            
    Insert "Municipal peace"                                                                                                  
                                                                                                                                
Page 1, line 10:                                                                                                                
    Delete "Peace"                                                                                                            
    Insert "Municipal peace"                                                                                                  
                                                                                                                                
Page 1, line 13:                                                                                                                
    Following the first occurrence of "a":                                                                                      
         Insert "municipal"                                                                                                     
    Following "firefighter":                                                                                                    

2017-03-13                     House Journal                      Page 0487
         Insert "who was employed by a municipality"                                                                            
                                                                                                                                
Page 2, line 2:                                                                                                                 
    Delete "and other money"                                                                                                    
                                                                                                                                
Page 2, line 3:                                                                                                                 
      Delete "The legislature may appropriate money to the fund."                                                              
                                                                                                                                
Page 2, line 12:                                                                                                                
    Delete "The"                                                                                                                
    Insert "Subject to AS 39.60.050 - 39.60.070, the"                                                                           
                                                                                                                                
Page 2, lines 13 - 14:                                                                                                          
    Delete "medical insurance premiums for a surviving dependent of                                                             
a state employee who is eligible under AS 39.60.040,"                                                                           
                                                                                                                                
Page 2, lines 25 - 26:                                                                                                          
    Delete all material and insert:                                                                                             
             "(1)  at the time of death, the employee was not covered                                                           
    by a policy obtained under AS 39.30.090 or 39.30.095 that                                                                   
    provided major medical coverage, and was a full-time employee                                                               
    of a municipality that has elected to participate under                                                                     
    AS 39.60.050;"                                                                                                              
                                                                                                                                
Page 3, following line 4:                                                                                                       
    Insert a new paragraph to read:                                                                                             
             "(1)  has received the premium payments for 10 years;"                                                             
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 3, following line 10:                                                                                                      
    Insert a new paragraph to read:                                                                                             
             "(1) has received the premium payments for 10 years;"                                                              
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 3, line 14, following "(e)":                                                                                               
    Insert "A municipality that has elected to participate under                                                                
AS 39.60.050 shall pay 100 percent of the premium payable under this                                                            
section."                                                                                                                       

2017-03-13                     House Journal                      Page 0488
Page 3, lines 16 - 26:                                                                                                          
         Delete "as follows:                                                                                                    
             (1)  the commissioner shall pay                                                                                    
                 (A)  100 percent for an eligible surviving dependent                                                           
         of a deceased state employee;                                                                                          
                 (B)  50 percent for an eligible surviving dependent of                                                         
         a deceased employee of a small municipality;                                                                           
             (2)  a large municipality shall pay 100 percent for an                                                             
    eligible surviving dependent of a deceased employee of that                                                                 
    municipality; and                                                                                                           
             (3)  A small municipality shall pay 50 percent for an                                                              
    eligible surviving dependent of a deceased employee of that small                                                           
    municipality"                                                                                                               
                                                                                                                                
Page 3, following line 26:                                                                                                      
    Insert new sections to read:                                                                                                
         "Sec. 39.60.050. Municipal election to participate in peace                                                          
    officer and firefighter survivors' fund. (a) A municipality may                                                           
    elect to participate in the fund by entering into an agreement with                                                         
    the commissioner that is consistent with AS 39.60.070. If a                                                                 
    municipality elects to participate in the fund, the commissioner                                                            
    shall determine the amount and frequency of the municipality's                                                              
    required contributions to the fund based on the anticipated cost of                                                         
    the municipality's participation, including the department's cost of                                                        
    administering the agreement under this subsection.                                                                          
         (b)  The commissioner shall administer agreements entered                                                              
    into under (a) of this section.                                                                                             
         (c)  A surviving dependent of a peace officer or firefighter                                                           
    who died while employed by a municipality is not eligible for                                                               
    payments from the fund unless the municipality elects to                                                                    
    participate in the fund and is in compliance with an agreement                                                              
    entered into under (a) of this section.                                                                                     
         Sec. 39.60.060. Eligibility of municipal peace officers and                                                          
    firefighters. If a municipality enters into an agreement under                                                            
    AS 39.60.050(a) and fails to meet a requirement of that                                                                     
    agreement, including a requirement under AS 39.60.070, the                                                                  
    commissioner may determine that a surviving dependent of a                                                                  
    peace officer or firefighter employed by a municipality who would                                                           
    otherwise be eligible for payments from the fund under                                                                      
    AS 39.60.040(b) is ineligible and deny payment from the fund                                                                

2017-03-13                     House Journal                      Page 0489
    until the commissioner determines all requirements of the                                                                   
    agreement are satisfied.                                                                                                    
         Sec. 39.60.070. Terms of agreement by municipality to                                                                
    participate in fund. An agreement under AS 39.60.050(a) for a                                                             
    municipality to participate in the fund must require that the                                                               
    municipality                                                                                                                
             (1)  contribute to the fund as determined by the                                                                   
    commissioner under AS 39.60.050(a);                                                                                         
             (2)  is current with contributions required under this                                                             
    section; and                                                                                                                
             (3)  complies with applicable regulations adopted by the                                                           
    commissioner."                                                                                                              
                                                                                                                                
Page 4, line 27:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 4 and 5"                                                                                                      
                                                                                                                                
Page 4, line 28:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 4 and 5"                                                                                                      
                                                                                                                                
Page 4, line 30:                                                                                                                
    Delete "Section 3"                                                                                                          
    Insert "Section 6"                                                                                                          
                                                                                                                                
Page 4, line 31:                                                                                                                
    Delete "sec. 4"                                                                                                             
    Insert "sec. 7"                                                                                                             
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 5 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 5 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 23(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  12   NAYS:  28   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                

2017-03-13                     House Journal                      Page 0490
Yeas:  Birch, Chenault, Eastman, Johnson, Johnston, Rauscher,                                                                   
Reinbold, Saddler, Talerico, Thompson, Tilton, Wilson                                                                           
                                                                                                                                
Nays:  Claman, Drummond, Edgmon, Fansler, Foster, Gara, Grenn,                                                                  
Guttenberg, Josephson, Kawasaki, Kito, Knopp, Kopp,                                                                             
Kreiss-Tomkins, LeDoux, Millett, Neuman, Ortiz, Parish, Pruitt,                                                                 
Seaton, Spohnholz, Stutes, Sullivan-Leonard, Tarr, Tuck, Westlake,                                                              
Wool                                                                                                                            
                                                                                                                                
And so, Amendment No. 5 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 6 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 1, line 2 (title amendment):                                                                                               
    Following "of certain":                                                                                                 
         Insert "state employees,"                                                                                            
    Following "officers":                                                                                                     
         Insert ","                                                                                                           
                                                                                                                                
Page 1, following line 4:                                                                                                       
    Insert new bill sections to read:                                                                                           
   "* Section 1. AS 37.05.146(c) is amended by adding a new                                                                   
paragraph to read:                                                                                                              
             (90)  receipts of the peace officer and firefighter                                                                
    survivors' fund under AS 39.60.                                                                                             
   * Sec. 2. AS 39.30.090(a) is amended to read:                                                                              
         (a)  The Department of Administration may obtain a policy or                                                           
    policies of group insurance covering state employees, persons                                                               
    entitled to coverage under AS 14.25.168, 14.25.480,                                                                         
    AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,                                                              
    employees of other participating governmental units, or persons                                                             
    entitled to coverage under AS 23.15.136, subject to the following                                                           
    conditions:                                                                                                                 
             (1)  a group insurance policy shall provide one or more of                                                         
    the following benefits: life insurance, accidental death and                                                                
    dismemberment insurance, weekly indemnity insurance, hospital                                                               
    expense insurance, surgical expense insurance, dental expense                                                               
    insurance, audiovisual insurance, or other medical care insurance;                                                          
             (2)  each eligible employee of the state, the spouse and                                                           
    the unmarried children chiefly dependent on the eligible employee                                                           
    for support, [AND] each eligible employee of another                                                                        

2017-03-13                     House Journal                      Page 0491
    participating governmental unit, and each person who is eligible                                                        
    for coverage under (13) of this subsection shall be covered by                                                          
    the group policy, unless exempt under regulations adopted by the                                                            
    commissioner of administration;                                                                                             
             (3)  a governmental unit may participate under a group                                                             
    policy if                                                                                                                   
                 (A)  its governing body adopts a resolution                                                                    
         authorizing participation and payment of required premiums;                                                            
                 (B)  a certified copy of the resolution is filed with the                                                      
         Department of Administration; and                                                                                      
                 (C)  the commissioner of administration approves the                                                           
         participation in writing;                                                                                              
             (4)  in procuring a policy of group health or group life                                                           
    insurance as provided under this section or excess loss insurance                                                           
    as provided in AS 39.30.091, the Department of Administration                                                               
    shall comply with the dual choice requirements of AS 21.86.310,                                                             
    and shall obtain the insurance policy from an insurer authorized to                                                         
    transact business in the state under AS 21.09, a hospital or                                                                
    medical service corporation authorized to transact business in this                                                         
    state under AS 21.87, or a health maintenance organization                                                                  
    authorized to operate in this state under AS 21.86; an excess loss                                                          
    insurance policy may be obtained from a life or health insurer                                                              
    authorized to transact business in this state under AS 21.09 or                                                             
    from a hospital or medical service corporation authorized to                                                                
    transact business in this state under AS 21.87;                                                                             
             (5)  the Department of Administration shall make                                                                   
    available bid specifications for desired insurance benefits or for                                                          
    administration of benefit claims and payments to (A) all insurance                                                          
    carriers authorized to transact business in this state under                                                                
    AS 21.09 and all hospital or medical service corporations                                                                   
    authorized to transact business under AS 21.87 who are qualified                                                            
    to provide the desired benefits; and (B) insurance carriers                                                                 
    authorized to transact business in this state under AS 21.09,                                                               
    hospital or medical service corporations authorized to transact                                                             
    business under AS 21.87, and third-party administrators licensed                                                            
    to transact business in this state and qualified to provide                                                                 
    administrative services; the specifications shall be made available                                                         
    at least once every five years; the lowest responsible bid submitted                                                        
    by an insurance carrier, hospital or medical service corporation, or                                                        
    third-party administrator with adequate servicing facilities shall                                                          

2017-03-13                     House Journal                      Page 0492
    govern selection of a carrier, hospital or medical service                                                                  
    corporation, or third-party administrator under this section or the                                                         
    selection of an insurance carrier or a hospital or medical service                                                          
    corporation to provide excess loss insurance as provided in                                                                 
    AS 39.30.091;                                                                                                               
             (6)  if the aggregate of dividends payable under the group                                                         
    insurance policy exceeds the governmental unit's share of the                                                               
    premium, the excess shall be applied by the governmental unit for                                                           
    the sole benefit of the employees;                                                                                          
             (7)  a person receiving benefits under AS 14.25.110,                                                               
    AS 22.25, AS 39.35, or former AS 39.37 may continue the life                                                                
    insurance coverage that was in effect under this section at the time                                                        
    of termination of employment with the state or participating                                                                
    governmental unit;                                                                                                          
             (8)  a person electing to have insurance under (7) of this                                                         
    subsection shall pay the cost of this insurance;                                                                            
             (9)  for each permanent part-time employee electing                                                                
    coverage under this section, the state shall contribute one-half the                                                        
    state contribution rate for permanent full-time state employees,                                                            
    and the permanent part-time employee shall contribute the other                                                             
    one-half;                                                                                                                   
             (10)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory,                                                                 
    visual, and dental insurance for that person and eligible                                                                   
    dependents under this section; the level of coverage for persons                                                            
    over 65 shall be the same as that available before reaching age 65                                                          
    except that the benefits payable shall be supplemental to any                                                               
    benefits provided under the federal old age, survivors, and                                                                 
    disability insurance program; a person electing to have insurance                                                           
    under this paragraph shall pay the cost of the insurance; the                                                               
    commissioner of administration shall adopt regulations                                                                      
    implementing this paragraph;                                                                                                
             (11)  a person receiving benefits under AS 14.25,                                                                  
    AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term                                                                 
    care insurance for that person and eligible dependents under this                                                           
    section; a person who elects insurance under this paragraph shall                                                           
    pay the cost of the insurance premium; the commissioner of                                                                  
    administration shall adopt regulations to implement this                                                                    
    paragraph;                                                                                                                  
             (12)  each licensee holding a current operating agreement                                                          

2017-03-13                     House Journal                      Page 0493
    for a vending facility under AS 23.15.010 - 23.15.210 shall be                                                              
    covered by the group policy that applies to governmental units                                                              
    other than the state;                                                                                                   
             (13)  each person who is eligible to receive a benefit                                                         
    under AS 39.35.430 or 39.35.892 as the surviving spouse or                                                              
    dependent child of an employee is eligible for employee                                                                 
    coverage under the policy of group insurance under this                                                                 
    subsection, AS 39.30.091, or 39.30.095 that covered the                                                                 
    employee notwithstanding a provision of those sections to the                                                           
    contrary; this paragraph does not apply to a surviving spouse                                                           
    who is eligible for Medicare.                                                                                           
   * Sec. 3. AS 39.30.095 is amended by adding a new subsection to                                                            
read:                                                                                                                           
         (g)  Notwithstanding (b) and (e) of this section, for the cost of                                                      
    providing benefits under AS 39.30.090(a)(13), the commissioner                                                              
    of administration shall set the rate of employer contribution at 100                                                        
    percent."                                                                                                                   
                                                                                                                                
Page 1, line 5:                                                                                                                 
    Delete "Section 1"                                                                                                        
    Insert "Sec. 4"                                                                                                           
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 1, line 6, following "of":                                                                                               
    Insert "Municipal"                                                                                                        
                                                                                                                                
Page 1, line 7, following "Sec. 39.60.005.":                                                                                  
    Insert "Municipal"                                                                                                        
                                                                                                                                
Page 1, line 10, following "Sec. 39.60.010.":                                                                                 
    Insert "Municipal"                                                                                                        
                                                                                                                                
Page 1, line 13:                                                                                                                
    Following the first occurrence of "a":                                                                                      
         Insert "municipal"                                                                                                     
    Following "firefighter":                                                                                                    
         Insert "who was employed by a municipality"                                                                            
                                                                                                                                
Page 2, line 2:                                                                                                                 
    Delete "and other money"                                                                                                    
                                                                                                                                

2017-03-13                     House Journal                      Page 0494
Page 2, line 3:                                                                                                                 
      Delete "The legislature may appropriate money to the fund."                                                              
                                                                                                                                
Page 2, line 12:                                                                                                                
    Delete "The"                                                                                                                
    Insert "Subject to AS 39.60.050 - 39.60.070, the"                                                                           
                                                                                                                                
Page 2, lines 13 - 14:                                                                                                          
    Delete "medical insurance premiums for a surviving dependent of                                                             
a state employee who is eligible under AS 39.60.040,"                                                                           
                                                                                                                                
Page 2, lines 25 - 26:                                                                                                          
    Delete all material and insert:                                                                                             
             "(1)  at the time of death, the employee was not covered                                                           
    by a policy obtained under AS 39.30.090 or 39.30.095 that                                                                   
    provided major medical coverage, and was a full-time employee                                                               
    of a municipality that has elected to participate under                                                                     
    AS 39.60.050;"                                                                                                              
                                                                                                                                
Page 3, following line 4:                                                                                                       
    Insert a new paragraph to read:                                                                                             
             "(1)  has received the premium payments for 10 years;"                                                             
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 3, following line 10:                                                                                                      
    Insert a new paragraph to read:                                                                                             
             "(1)  has received the premium payments for 10 years;"                                                             
                                                                                                                                
Renumber the following paragraphs accordingly.                                                                                  
                                                                                                                                
Page 3, line 16, following "made":                                                                                              
    Insert ", for an employee of a municipality that has elected to                                                             
participate under AS 39.60.050 and complies with AS 39.60.050 -                                                                 
39.60.070,"                                                                                                                     
                                                                                                                                
Page 3, lines 18 - 22:                                                                                                          
    Delete all material and insert:                                                                                             
             "(1)  the commissioner shall pay 50 percent for an eligible                                                        
    surviving dependent of a deceased employee of a small                                                                       
    municipality;"                                                                                                              

2017-03-13                     House Journal                      Page 0495
Page 3, following line 26:                                                                                                      
    Insert new sections to read:                                                                                                
         "Sec. 39.60.050. Municipal election to participate in peace                                                          
    officer and firefighter survivors' fund. (a) A municipality may                                                           
    elect to participate in the fund by entering into an agreement with                                                         
    the commissioner that is consistent with AS 39.60.070. If a                                                                 
    municipality elects to participate in the fund, the commissioner                                                            
    shall determine the amount and frequency of the municipality's                                                              
    required contributions to the fund based on the anticipated cost of                                                         
    the municipality's participation, including the department's cost of                                                        
    administering the agreement under this subsection.                                                                          
         (b)  The commissioner shall administer agreements entered                                                              
    into under (a) of this section.                                                                                             
         (c)  A surviving dependent of a peace officer or firefighter                                                           
    who died while employed by a municipality is not eligible for                                                               
    payments from the fund unless the municipality elects to                                                                    
    participate in the fund and is in compliance with an agreement                                                              
    entered into under (a) of this section.                                                                                     
         Sec. 39.60.060. Eligibility of municipal peace officers and                                                          
    firefighters. (a) Notwithstanding AS 39.60.050(c), the                                                                    
    commissioner may determine that a surviving dependent of a                                                                  
    peace officer or firefighter who was employed by a municipality is                                                          
    eligible for premium payments under AS 39.60.040(b), if the                                                                 
    municipality elects to participate in the fund after the employee's                                                         
    death and is in compliance with the terms of an agreement entered                                                           
    into under AS 39.60.050(a).                                                                                                 
         (b)  If a municipality enters into an agreement under                                                                  
    AS 39.60.050(a) and fails to meet a requirement of that                                                                     
    agreement, including a requirement under AS 39.60.070, the                                                                  
    commissioner may determine that a surviving dependent of a                                                                  
    peace officer or firefighter employed by a municipality who would                                                           
    otherwise be eligible for payments from the fund under                                                                      
    AS 39.60.040(b) is ineligible and deny payment from the fund                                                                
    until the commissioner determines all requirements of the                                                                   
    agreement are satisfied.                                                                                                    
         Sec. 39.60.070. Terms of agreement by municipality to                                                                
    participate in fund. An agreement under AS 39.60.050(a) for a                                                             
    municipality to participate in the fund must require that the                                                               
    municipality                                                                                                                
             (1)  contribute to the fund as determined by the                                                                   

2017-03-13                     House Journal                      Page 0496
    commissioner under AS 39.60.050(a);                                                                                         
             (2)  is current with contributions required under this                                                             
    section; and                                                                                                                
             (3)  complies with applicable regulations adopted by the                                                           
    commissioner."                                                                                                              
                                                                                                                                
Page 4, line 27:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 4 and 5"                                                                                                      
                                                                                                                                
Page 4, line 28:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 4 and 5"                                                                                                      
                                                                                                                                
Page 4, line 30:                                                                                                                
    Delete "Section 3"                                                                                                          
    Insert "Section 6"                                                                                                          
                                                                                                                                
Page 4, line 31:                                                                                                                
    Delete "sec. 4"                                                                                                             
    Insert "sec. 7"                                                                                                             
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 6 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 6 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 23(FIN)                                                                                                                    
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
YEAS:  8   NAYS:  32   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Eastman, Neuman, Rauscher, Reinbold, Saddler, Talerico,                                                                  
Tilton, Wilson                                                                                                                  
                                                                                                                                
Nays:  Birch, Chenault, Claman, Drummond, Edgmon, Fansler,                                                                      
Foster, Gara, Grenn, Guttenberg, Johnson, Johnston, Josephson,                                                                  
Kawasaki, Kito, Knopp, Kopp, Kreiss-Tomkins, LeDoux, Millett,                                                                   

2017-03-13                     House Journal                      Page 0497
Ortiz, Parish, Pruitt, Seaton, Spohnholz, Stutes, Sullivan-Leonard,                                                             
Tarr, Thompson, Tuck, Westlake, Wool                                                                                            
                                                                                                                                
And so, Amendment No. 6 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 7 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 1, line 3, following "duty;" (title amendment):                                                                          
    Insert "relating to contributions from permanent fund                                                                     
dividends to the peace officer and firefighter survivors' fund;"                                                              
                                                                                                                                
Page 4, following line 17:                                                                                                      
    Insert new bill sections to read:                                                                                           
"* Sec. 2. AS 43.23.062(a) is amended to read:                                                                                
         (a)  Notwithstanding AS 43.23.069, the Department of                                                                   
    Revenue shall prepare the electronic Alaska permanent fund                                                                  
    dividend application to allow an applicant who files electronically                                                         
    to direct that money be subtracted from the dividend payment and                                                            
    contributed to the peace officer and firefighter survivors' fund                                                        
    or to one or more of the educational organizations, community                                                           
    foundations, or charitable organizations that appear on the                                                                 
    contribution list contained in the application. A contribution to the                                                   
    peace officer and firefighter survivors' fund or to an                                                                  
    organization may be $25, $50, $75, $100, or more, in increments                                                             
    of $50, up to the total amount of the permanent fund dividend that                                                          
    the applicant is entitled to receive. If the total amount of                                                                
    contributions elected by an applicant exceeds the amount of the                                                             
    permanent fund dividend that the applicant is entitled to receive,                                                          
    contributions shall be deducted from the dividend in the order of                                                           
    priority elected by the applicant on the application until the entire                                                       
    amount of the dividend that the applicant is entitled to receive is                                                         
    allocated for contribution. The electronic dividend application                                                             
    form must include notice that seven percent of the money                                                                    
    contributed will be used for administrative costs incurred in                                                               
    implementing this section, and money from the dividend fund will                                                            
    not be used for that purpose.                                                                                               
   * Sec. 3. AS 43.23.062(b) is amended to read:                                                                              
         (b)  The department shall list each educational organization,                                                          
    community foundation, or charitable organization eligible under                                                             
    (c) and (d) of this section, [AND] each university campus that                                                              

2017-03-13                     House Journal                      Page 0498
    applies under (l) of this section, and the peace officer and                                                            
    firefighter survivors' fund on the contribution list. The                                                               
    department shall maintain an electronic database for the                                                                    
    contribution list that is accessible to the public and that permits                                                         
    searches by organization or fund name, geographic location, and                                                         
    type. The department shall provide a statement of the                                                                       
    contributions made by an individual that is suitable for federal                                                            
    income tax purposes to each individual who elects to contribute                                                             
    under (a) of this section.                                                                                                  
   * Sec. 4. AS 43.23.062(m) is amended to read:                                                                              
         (m)  In addition to the application fee in (f) of this section, the                                                    
    department shall withhold a coordination fee from each                                                                      
    organization, foundation, or university campus that receives                                                                
    contributions under this section in the immediately preceding                                                               
    dividend year. The coordination fee for an organization,                                                                    
    foundation, or university campus that receives contributions under                                                          
    this section shall be seven percent of the amount of contributions                                                          
    reported by the department under (j) of this section for the                                                                
    organization, foundation, or university campus for the                                                                      
    immediately preceding dividend year. The coordination fee shall                                                             
    be separately accounted for under AS 37.05.142 and shall be                                                                 
    accounted for separately from the application fee collected under                                                           
    (f) of this section. The annual estimated balance in the account                                                            
    maintained under AS 37.05.142 for coordination fees collected                                                               
    under this subsection may be appropriated for costs of                                                                      
    administering this section. The department may not withhold a                                                           
    coordination fee for contributions to the peace officer and                                                             
    firefighter survivors' fund.                                                                                            
   * Sec. 5. AS 43.23.062(n) is amended to read:                                                                              
         (n)  In this section,                                                                                                  
             (1)  "community foundation" means a nonprofit,                                                                 
    autonomous, philanthropic institution that is organized and                                                                 
    operated primarily as a permanent collection of endowed funds for                                                           
    the long-term benefit of a defined geographic area within one or                                                            
    more municipalities, that has a long-term goal of increasing its                                                            
    permanent unrestricted charitable endowment to benefit the area                                                             
    served, that primarily provides benefits by making grants and may                                                           
    also provide other forms of charitable services, that makes grants                                                          
    that are not limited to providing one type of benefit or to serving                                                         
    one population segment, and that makes grants to multiple                                                                   

2017-03-13                     House Journal                      Page 0499
    grantees;                                                                                                               
             (2)  "peace officer and firefighter survivors' fund" has                                                       
    the meaning given in AS 39.60.010(a)."                                                                                  
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 4, line 27:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 1 and 6"                                                                                                      
                                                                                                                                
Page 4, line 28:                                                                                                                
    Delete "secs. 1 and 2"                                                                                                      
    Insert "secs. 1 and 6"                                                                                                      
                                                                                                                                
Page 4, line 30:                                                                                                                
    Delete "Section 3"                                                                                                          
    Insert "Section 7"                                                                                                          
                                                                                                                                
Page 4, line 31:                                                                                                                
    Delete "sec. 4"                                                                                                             
    Insert "sec. 8"                                                                                                             
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 7 be adopted.                                                                                                     
                                                                                                                                
Representative Tarr objected and withdrew the objection.  There being                                                           
no further objection, Amendment No. 7 was adopted, and the new title                                                            
follows:                                                                                                                        
                                                                                                                                
    CS FOR HOUSE BILL NO. 23(FIN) am                                                                                            
    "An Act creating a fund in the Department of Public Safety;                                                                 
    providing for payment of certain medical insurance premiums for                                                             
    surviving dependents of certain peace officers or firefighters who                                                          
    die in the line of duty; relating to contributions from permanent                                                           
    fund dividends to the peace officer and firefighter survivors' fund;                                                        
    and providing for an effective date."                                                                                       
                                                                                                                                
Representative Tuck moved and asked unanimous consent that CSHB
23(FIN) am be considered engrossed, advanced to third reading, and                                                              
placed on final passage.  There being no objection, it was so ordered.                                                          
                                                                                                                                

2017-03-13                     House Journal                      Page 0500
CSHB 23(FIN) am was read the third time.                                                                                        
                                                                                                                                
Representative LeDoux rose to a point of order.                                                                                 
                                                                                                                                
The Speaker cautioned the member to confine remarks to the bill.                                                                
                                                                                                                                
Representative Eastman moved and asked unanimous consent to                                                                     
abstain from voting because of a conflict of interest.  Objection was                                                           
heard, and he was required to vote.                                                                                             
                                                                                                                                
The question being:  "Shall CSHB 23(FIN) am pass the House?"  The                                                               
roll was taken with the following result:                                                                                       
                                                                                                                                
CSHB 23(FIN) am                                                                                                                 
Third Reading                                                                                                                   
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  40   NAYS:  0   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Birch, Chenault, Claman, Drummond, Eastman, Edgmon,                                                                      
Fansler, Foster, Gara, Grenn, Guttenberg, Johnson, Johnston,                                                                    
Josephson, Kawasaki, Kito, Knopp, Kopp, Kreiss-Tomkins, LeDoux,                                                                 
Millett, Neuman, Ortiz, Parish, Pruitt, Rauscher, Reinbold, Saddler,                                                            
Seaton, Spohnholz, Stutes, Sullivan-Leonard, Talerico, Tarr,                                                                    
Thompson, Tilton, Tuck, Westlake, Wilson, Wool                                                                                  
                                                                                                                                
And so, CSHB 23(FIN) am passed the House.                                                                                       
                                                                                                                                
Representative Tuck moved and asked unanimous consent that the roll                                                             
call on the passage of the bill be considered the roll call on the                                                              
effective date clause.  There being no objection, it was so ordered.                                                            
                                                                                                                                
CSHB 23(FIN) am was referred to the Chief Clerk for engrossment.