Legislature(2017 - 2018)SENATE FINANCE 532

04/15/2017 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 1:00 p.m. --
+ SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ HB 56 COMMERCIAL FISHING LOANS TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ SB 37 PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ SB 80 TELECOMMUNICATIONS: DISABLED SUBSCRIBERS TELECONFERENCED
Moved CSSB 80(L&C) Out of Committee
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 23 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE TELECONFERENCED
Moved SCS CSHB 23(FIN) Out of Committee
+= HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS TELECONFERENCED
Moved SCS HB 141(FIN) Out of Committee
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."                                                                     
                                                                                                                                
1:02:45 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED to ADOPT the proposed committee                                                                         
substitute for CSHB 23(FIN)am, Work Draft 30-LS0258\N                                                                           
(Wayne, 4/14/17).                                                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
1:03:01 PM                                                                                                                    
                                                                                                                                
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, looked at the                                                                        
"Overview" (copy on file):                                                                                                      
                                                                                                                                
     Overview:   SCS HB 23  (FIN) creates the  peace officer                                                                    
     and   firefighter  survivors'   fund  to   pay  medical                                                                    
     insurance   premiums  to   continue  health   insurance                                                                    
     coverage for an eligible  surviving spouse or dependent                                                                    
     child of a  peace officer or firefighter  killed in the                                                                    
     line  of duty.   The  benefit  is only  available to  a                                                                    
     surviving dependent of  a permanent, full-time employee                                                                    
     who   was   covered   by   employer-sponsored   medical                                                                    
     insurance at the  time of death.   The premium payments                                                                    
     will  allow surviving  dependents  to  remain in  their                                                                    
     current  health plan  and are  paid  to the  applicable                                                                    
     employer medical insurance provider.                                                                                       
                                                                                                                                
     The  state is  required to  pay the  benefit for  state                                                                    
     employees; a  municipality may elect to  participate by                                                                    
     entering into  an agreement with  the state to  pay the                                                                    
     cost of the program for  its recipients. By December 1,                                                                    
     the commissioner  of public  safety will  determine the                                                                    
     amount  needed  to  pay  the  premiums  and  associated                                                                    
     administrative costs.  Once appropriated, funds  do not                                                                    
     lapse and can be spent without further appropriation.                                                                      
                                                                                                                                
     A  surviving dependent  is "presumed  eligible" for  60                                                                    
     days  after   the  death  of   the  peace   officer  or                                                                    
     firefighter,  to allow  time for  the dependent  to get                                                                    
     documents together  and apply  for the  benefit. Within                                                                    
     30  days of  the  application,  the commissioner  shall                                                                    
     determine eligibility; which is reconfirmed annually.                                                                      
                                                                                                                                
     Surviving spouses  are eligible to receive  the benefit                                                                    
     for  10 years,  until eligible  to receive  other major                                                                    
     medical coverage,  or until eligible for  Medicare.  If                                                                    
     a surviving spouse is the  parent of an eligible child,                                                                    
     the spouse  can continue  to receive the  benefit until                                                                    
     the child is no longer eligible.                                                                                           
                                                                                                                                
     Except  for  a child  who  is  totally and  permanently                                                                    
     disabled, a surviving child is  eligible to receive the                                                                    
     benefit until  eligible to receive other  major medical                                                                    
     coverage or age 26.                                                                                                        
                                                                                                                                
     Surviving dependents who become ineligible due to                                                                          
     receiving other major medical coverage can reapply for                                                                     
     benefits if that coverage is lost.                                                                                         
                                                                                                                                
     The definition of "peace officer" is identical to the                                                                      
     definition in CS SB 48 (STA).                                                                                              
                                                                                                                                
     The fund is eligible for donations through "Pick,                                                                          
     Click, Give."                                                                                                              
                                                                                                                                
Ms.  Lucky also  looked  at the  "Major Policy  Differences"                                                                    
(copy on  file), which talked about  the differences between                                                                    
the versions of the bills.                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon stressed  that she  hoped that  the bill                                                                    
was   a  collaboration   of  efforts   between  the   entire                                                                    
legislature and public.                                                                                                         
                                                                                                                                
1:09:46 PM                                                                                                                    
                                                                                                                                
SENATOR JOHN  COGHILL, SPONSOR,  remarked that  the ten-year                                                                    
limit was  an important  addition. He  also stated  that the                                                                    
medical  coverage death  benefit  was  appropriate. He  felt                                                                    
that the "sticking point" would  be the municipal opt-in. He                                                                    
encouraged the committee to include that opt-in.                                                                                
                                                                                                                                
Co-Chair MacKinnon  wondered whether Senator Coghill  was in                                                                    
opposition to the committee substitute.                                                                                         
                                                                                                                                
Senator Coghill replied that he  would approve the committee                                                                    
substitute.                                                                                                                     
                                                                                                                                
Co-Chair  MacKinnon  queried  comments  from  Representative                                                                    
Josephson's staff.                                                                                                              
                                                                                                                                
1:11:17 PM                                                                                                                    
                                                                                                                                
LISA   WEISSLER,  STAFF,   REPRESENTATIVE  ANDY   JOSEPHSON,                                                                    
expressed appreciation on  the work on the  bill. She stated                                                                    
that    Representative    Josephson   supported    requiring                                                                    
municipalities to  provide coverage  to their  employees. He                                                                    
supported all the other provisions.                                                                                             
                                                                                                                                
Senator Olson  queried the seriousness of  the opt-in issue.                                                                    
Ms.  Weissler replied  that  Representative Josephson  would                                                                    
discuss the issue with the members of the House.                                                                                
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further  OBJECTION, the  proposed  committee substitute  was                                                                    
adopted.                                                                                                                        
                                                                                                                                
Vice-Chair  Bishop  MOVED  to ADOPT  Amendment  1  (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Page 3, line 6:                                                                                                            
     Delete "spouse"                                                                                                            
     Insert "dependent"                                                                                                         
     Page 3, line 7, following "(c)(2)":                                                                                        
     Insert "or (d)(1)"                                                                                                         
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Ms. Lucky explained the amendment.                                                                                              
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
further OBJECTION, Amendment 1 was adopted.                                                                                     
                                                                                                                                
1:14:57 PM                                                                                                                    
                                                                                                                                
SYLVAN ROBB, OFFICE OF MANAGEMENT  AND BUDGET, OFFICE OF THE                                                                    
GOVERNOR, explained the fiscal note.                                                                                            
                                                                                                                                
Co-Chair  MacKinnon  wondered   whether  the  $70,100  would                                                                    
continue through  FY 23 with  an estimated cost  of coverage                                                                    
of $70,100 per year.  Ms. Robb replied in the affirmative.                                                                      
                                                                                                                                
1:17:48 PM                                                                                                                    
                                                                                                                                
KELLY HOWELL  DIRECTOR, ADMINISTRATIVE  SERVICES, DEPARTMENT                                                                    
OF PUBLIC SAFETY, explained the fiscal note.                                                                                    
                                                                                                                                
Co-Chair  MacKinnon wondered  whether there  was someone  to                                                                    
discuss the Department of Administration (DOA) fiscal note.                                                                     
                                                                                                                                
Senator Hughes asked whether  the medical insurance premiums                                                                    
would  remain flat.  Ms. Howell  replied  that the  language                                                                    
required  that  the  commissioner determine  the  amount  of                                                                    
funding  available. She  stated  that they  would monitor  a                                                                    
possible increase,  and factor  those costs into  any future                                                                    
budget requests. She stated that  the current amount was the                                                                    
only known amount.                                                                                                              
                                                                                                                                
1:20:22 PM                                                                                                                    
                                                                                                                                
MICHELE   MICHAUD,  CHIEF   HEALTH  OFFICIAL,   DIVISION  OF                                                                    
RETIREMENT  AND  BENEFITS,   DEPARTMENT  OF  ADMINISTRATION,                                                                    
explained that  it was  a zero fiscal  note. There  was only                                                                    
one  change in  the narrative  as related  to the  community                                                                    
opt-in.                                                                                                                         
                                                                                                                                
1:20:50 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:22:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:23:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop MOVED  to  ADOPT  Conceptual Amendment  2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     The   intent  ofthis   amendment   is   to  allow   all                                                                    
     dependents,  not  just  a spouse,  the  opportunity  to                                                                    
     reapply for  benefits if they become  ineligible due to                                                                    
     being  eligible for  other insurance  then subsequently                                                                    
     lose that insurance.                                                                                                       
                                                                                                                                
     Page 3, line 31, following "becomes"                                                                                       
     DELETE "permanently"                                                                                                       
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Ms. Lucky explained the amendment.                                                                                              
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
OBJECTION, it  was so ordered.  here being NO  OBJECTION, it                                                                    
was so ordered.                                                                                                                 
                                                                                                                                
Vice-Chair Bishop  MOVED to REPORT  SCS CSHB 23(FIN)  out of                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Senator Micciche  OBJECTED. He wondered whether  there was a                                                                    
definition of  "dependence" that covered  unborn dependents.                                                                    
Co-Chair MacKinnon replied in  the negative. She stated that                                                                    
the department would include that definition in regulation.                                                                     
                                                                                                                                
Senator Micciche WITHDREW the OBJECTION.                                                                                        
                                                                                                                                
There  being  NO  further OBJECTION,  the  bill  moved  from                                                                    
committee.                                                                                                                      
                                                                                                                                
SCS CSHB  23(FIN) was REPORTED  out of committee with  a "do                                                                    
pass" recommendation  and with a  new zero fiscal  note from                                                                    
the  Department of  Administration, a  new fiscal  note from                                                                    
the  Governor's  Office,  and a  previously  published  zero                                                                    
fiscal note: FN 2(DPS).                                                                                                         
                                                                                                                                
1:26:04 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:27:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 23 SCS HB 23 FIN v. N.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 SCS HB23 FIN Overview.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 141 - DOLWD Response 2017.04.14.pdf SFIN 4/15/2017 9:00:00 AM
HB 141
HB 23 Amendment 2 MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Amendment 1 MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Support Letter Olsen.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Support for Municipals Hallett.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Public Testimony Dupee.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB141 - Amendment 1 Bishop, Hoffman, Olson, Micciche, MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 141
SB 80 Support Letter - Statewide Independent Living Council of Alaska.pdf SFIN 4/15/2017 9:00:00 AM
SB 80
HB 23 Major Policy Differences.pdf SFIN 4/15/2017 9:00:00 AM
HB 23