Legislature(2017 - 2018)SENATE FINANCE 532

04/05/2017 09:00 AM Senate FINANCE

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Audio Topic
09:02:35 AM Start
09:04:07 AM SB48
09:39:02 AM HB23
10:06:50 AM Public Testimony
10:06:54 AM SB48 || HB23
10:09:08 AM Public Testimony
10:50:03 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 48 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE TELECONFERENCED
Heard & Held
+= HB 23 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 5, 2017                                                                                            
                         9:02 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:02:35 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:02 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  John Coghill,  Sponsor; Jordan  Shilling, Staff  to                                                                    
Senator   Coghill;  Joan   Wilkerson,  Department   of  Law;                                                                    
Representative  Andy  Josephson,   Sponsor;  Lisa  Weissler,                                                                    
Staff,  Representative Josephson;  Kathie Wasserman,  Alaska                                                                    
Municipal  League,  Juneau;  Brandy Johnson,  Self,  Juneau;                                                                    
Jake Metcalfe, Executive  Director, Public Service Employees                                                                    
Association (PSEA),  Local 803; Jeff Brink,  Police Officer,                                                                    
Member, PSEA Local 803, Juneau.                                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
David Pruhs, City of  Fairbanks, Fairbanks; Rebecca Shwanke,                                                                    
Self,    Glenallen;   Tom    Wescott,   President,    Alaska                                                                    
Professional Firefighters, Eagle  River; Paul Kendall, Self,                                                                    
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 48     INS. FOR DEPENDS. OF DECEASED FIRE/POLICE                                                                             
                                                                                                                                
          SB 48 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CSHB 23(FIN)am                                                                                                                  
         INS. FOR DEPENDS. OF DECEASED FIRE/POLICE                                                                              
                                                                                                                                
          CSHB 23(FIN)am was HEARD and HELD in committee                                                                        
          for further consideration.                                                                                            
                                                                                                                                
SENATE BILL NO. 48                                                                                                            
                                                                                                                                
     "An Act  creating a  fund in  the Department  of Public                                                                    
     Safety;  providing  for   payment  of  certain  medical                                                                    
     insurance premiums for  surviving dependents of certain                                                                    
     police officers  or firefighters who  di e in  the line                                                                    
     of duty; and providing for an effective date."                                                                             
                                                                                                                                
9:04:07 AM                                                                                                                    
                                                                                                                                
SENATOR JOHN COGHILL, SPONSOR, felt that the legislation                                                                        
was immediately necessary. He explained the bill.                                                                               
                                                                                                                                
Co-Chair MacKinnon announced that the senate version did                                                                        
not contain the option for the Permanent Fund deposit.                                                                          
                                                                                                                                
Senator Coghill agreed.                                                                                                         
                                                                                                                                
9:10:39 AM                                                                                                                    
                                                                                                                                
JORDAN SHILLING, STAFF TO SENATOR COGHILL, explained the                                                                        
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1                                                                                                                  
                                                                                                                                
          Sec. 39.60.010 - Peace Officer and Firefighter                                                                        
          Survivors' Fund.                                                                                                      
                                                                                                                                
               The peace officer  and firefighter survivors'                                                                    
               fund  is  established   for  the  purpose  of                                                                    
               paying major  medical insurance  premiums for                                                                    
               an  eligible  surviving spouse  or  dependent                                                                    
               child of a peace officer or firefighter.                                                                         
                                                                                                                                
               The Department of Public Safety shall create                                                                     
               two separate accounts within the fund: a                                                                         
               state  employee   account  and   a  municipal                                                                    
               employee  account. The  accounts can  consist                                                                    
               of   legislative    appropriations,   private                                                                    
               donations, and municipal contributions.                                                                          
                                                                                                                                
          Sec. 39.60.020 - Powers and duties of the                                                                             
          commissioner.                                                                                                         
                                                                                                                                
               Annually, the Commissioner  of the Department                                                                    
               of Public  Safety shall determine  the amount                                                                    
               of  money   necessary  to  pay   premiums  to                                                                    
              eligible surviving dependents.                                                                                    
                                                                                                                                
          Sec. 39.60.030 - Payment authorized.                                                                                  
                                                                                                                                
               The Commissioner of  the Department of Public                                                                    
               Safety  may  use money  in  the  fund to  pay                                                                    
               major   medical    insurance   premiums   for                                                                    
              eligible surviving dependents.                                                                                    
                                                                                                                                
          Sec. 39.60.040 - Eligibility of surviving                                                                             
          dependents of peace officers and firefighters for                                                                     
          medical insurance premiums.                                                                                           
                                                                                                                                
               Within the  first 30 days following  a death,                                                                    
               the surviving dependent  is presumed eligible                                                                    
               for  the benefit.  A surviving  dependent may                                                                    
               apply  to  the  commissioner for  payment  of                                                                    
               major   medical   insurance   premiums.   The                                                                    
               commissioner  will  make a  determination  of                                                                    
               eligibility within  30 days of  receiving the                                                                    
               application.   Annually,   the   commissioner                                                                    
               shall determine continued eligibility.                                                                           
                                                                                                                                
          A surviving dependent is eligible if:                                                                                 
                                                                                                                                
                                                                                                                                
                    officer or firefighter was a year-                                                                          
                    round, permanent full-time employee of                                                                      
                    the state or municipality that has                                                                          
                   opted into this fund;                                                                                        
                                                                                                                                
                                                                                                                                
                    dependent   was    receiving   employer-                                                                    
                    sponsored medical insurance benefits;                                                                       
                                                                                                                                
                                                                                                                                
                    death is a bodily  injury sustained or a                                                                    
                    hazard    undergone    while   in    the                                                                    
                    performance and within  the scope of the                                                                    
                    employee's duties; and                                                                                      
                                                                                                                                
                                                                                                                                
                    proximate result of willful negligence                                                                      
                    by the employee.                                                                                            
                                                                                                                                
Co-Chair  MacKinnon queried  the definition  of "approximate                                                                    
cause." Mr. Schilling stated that it was a legal concept.                                                                       
                                                                                                                                
9:14:50 AM                                                                                                                    
                                                                                                                                
JOAN   WILKERSON,   DEPARTMENT   OF  LAW,   explained   that                                                                    
"approximate cause"  was an event sufficiently  related to a                                                                    
legally recognizable  injury to be  held to be the  cause of                                                                    
that injury.  She stated that  it was  the second half  of a                                                                    
two-part causation  analysis. The two types  of causation in                                                                    
the law  were "cause  and effect", or  that an  injury would                                                                    
not have happed but for an event.                                                                                               
                                                                                                                                
Vice-Chair  Bishop wondered  whether the  employee was  also                                                                    
covered off-duty.  Ms. Wilkerson  replied that  the coverage                                                                    
applied to  an officer who was  killed in the line  of duty,                                                                    
whether they were paid or not.                                                                                                  
                                                                                                                                
Co-Chair MacKinnon wondered whether  the person was covered,                                                                    
if they  were murdered  because they  are a  police officer.                                                                    
Ms. Wilkerson replied that it would be considered.                                                                              
                                                                                                                                
Co-Chair  MacKinnon looked  at page  3, line  17, and  noted                                                                    
that  there  was a  member  of  her community  whose  family                                                                    
suffered a  loss of  a firefighter.  They struggled  under a                                                                    
worker's compensation issue to  say that the hazard occurred                                                                    
while the firefighter  was on duty. She  remarked that there                                                                    
was  some information  about the  higher  likelihood to  get                                                                    
cancer with  exposure to hazards. She  wondered whether that                                                                    
idea was  included in  the idea  of "hazard  undergone." Ms.                                                                    
Wilkerson replied in the affirmative.                                                                                           
                                                                                                                                
9:20:32 AM                                                                                                                    
                                                                                                                                
Mr. Shilling continued to discuss the Sectional Analysis:                                                                       
                                                                                                                                
               A   surviving   spouse  becomes   permanently                                                                    
               ineligible  by becoming  eligible to  receive                                                                    
               commensurate  insurance   coverage  by  other                                                                    
               means,  having received  the  benefit for  10                                                                    
               years,  or   reaching  65  years  of   age  -                                                                    
               whichever comes first.                                                                                           
                                                                                                                                
               A    surviving   dependent    child   becomes                                                                    
               permanently  ineligible by  becoming eligible                                                                    
               to receive  major medical  insurance coverage                                                                    
               by other  means, or reaching 26  years of age                                                                    
               - whichever comes first.                                                                                         
                                                                                                                                
               The  commissioner shall  pay the  premium for                                                                    
               the   level   of  major   medical   insurance                                                                    
               coverage  existing  at  the  time  of  death,                                                                    
               beginning the first  month following the date                                                                    
               the  dependent applied  to the  fund. Payment                                                                    
               of  premiums will  be  made  directly to  the                                                                    
               medical insurance provider.                                                                                      
                                                                                                                                
          Sec.   39.60.050    -   Municipal    election   to                                                                    
          participate in peace officer and firefighter                                                                          
          survivors' fund.                                                                                                      
                                                                                                                                
               A  municipality may  elect 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.  A                                                                    
               surviving  dependent  is   not  eligible  for                                                                    
               payments  unless the  municipality opts  into                                                                    
               the fund.                                                                                                        
                                                                                                                                
          Sec. 39.60.060 - Eligibility of municipal peace                                                                       
          officers and firefighters.                                                                                            
                                                                                                                                
               A surviving  dependent of a peace  officer or                                                                    
               firefighter   who    was   employed    by   a                                                                    
               municipality may  be eligible for  payment if                                                                    
               the  municipality  elects to  participate  in                                                                    
               the fund.                                                                                                        
                                                                                                                                
          Sec.   39.60.070   -   Terms   of   agreement   by                                                                    
          municipality to participate in fund.                                                                                  
                                                                                                                                
               An agreement  between the commissioner  and a                                                                    
               municipality must include  a requirement that                                                                    
               the  municipality contribute  to the  fund as                                                                    
               needed,  be current  with contributions,  and                                                                    
               comply with all other rules and regulations.                                                                     
                                                                                                                                
          Sec. 39.60.190 - Definitions.                                                                                         
                                                                                                                                
               Definitions   for  "child",   "commissioner",                                                                    
               "department",   "dependent",   "firefighter",                                                                    
               "fund",   "peace  officer",   and  "surviving                                                                    
               spouse".                                                                                                         
                                                                                                                                
     Section 2                                                                                                                  
                                                                                                                                
          AS 44.41.020 - Powers and duties of department                                                                        
          (new subsection)                                                                                                      
                                                                                                                                
               The Department of  Public Safety shall manage                                                                    
               and administer  the fund in  cooperation with                                                                    
               the Department of Administration.                                                                                
                                                                                                                                
9:24:08 AM                                                                                                                    
                                                                                                                                
Senator  Olson   wondered  whether  Village   Public  Safety                                                                    
Officers  (VPSO)  were  covered   in  the  legislation.  Mr.                                                                    
Schilling replied  that the VPSOs were  not covered, because                                                                    
they were not state employees.                                                                                                  
                                                                                                                                
Co-Chair MacKinnon looked  at page 5, line  23. She stressed                                                                    
that  the VPSOs  were not  able to  make arrests.  She noted                                                                    
that "peace officers" included more kinds of police.                                                                            
                                                                                                                                
Senator Micciche  noted that the difference  between the two                                                                    
bills  was related  to the  ineligibility  of the  surviving                                                                    
spouse.  He  queried the  reason  for  the surviving  spouse                                                                    
becoming  permanently ineligible  after  ten years.  Senator                                                                    
Coghill  responded  that there  was  an  examination of  the                                                                    
other states' provisions and the  comparison in the state on                                                                    
other issues.                                                                                                                   
                                                                                                                                
Senator Micciche  wondered if there  was a  consideration to                                                                    
expand the allowance to provide  coverage, should there be a                                                                    
minor  child in  the household.  Senator Coghill  replied in                                                                    
the affirmative.  He stated  that the  child would  still be                                                                    
covered.                                                                                                                        
                                                                                                                                
                                                                                                                                
Senator Dunleavy  queried the  difference between  VPSOs and                                                                    
VPOs. Senator  Coghill replied that they  were both normally                                                                    
under contract with a private organization.                                                                                     
                                                                                                                                
Senator von  Imhof noted that  there were six  families that                                                                    
the state  was providing benefits,  and each year  the money                                                                    
was appropriated for the  families. Senator Coghill deferred                                                                    
to Mr. Schilling, but was sure about three families.                                                                            
                                                                                                                                
Mr. Schilling  explained that the  fiscal note  outlined the                                                                    
number   of  families   that  would   be   covered  by   the                                                                    
legislation. He  stated that the governor  had paid coverage                                                                    
for some of the families, but did not have the details.                                                                         
                                                                                                                                
9:29:50 AM                                                                                                                    
                                                                                                                                
Senator von Imhof wondered whether  the model was determined                                                                    
that $70,000  was sufficient.  Senator Coghill  replied that                                                                    
the modeling was based on the current data.                                                                                     
                                                                                                                                
Senator  Micciche looked  at page  3, line  13. He  wondered                                                                    
whether  an  unborn  child  was  included  in  the  benefit.                                                                    
Senator  Coghill  hoped that  it  would  include the  unborn                                                                    
child.                                                                                                                          
                                                                                                                                
Co-Chair MacKinnon  looked at  page 6,  Section 2,  line 18.                                                                    
She wondered why  the Department of Public  Safety (DPS) and                                                                    
not Department  of Administration  (DOA) to monitor  a fund.                                                                    
Mr.   Schilling   did  not   know   the   reason  for   that                                                                    
determination.  He stated  that there  was a  hope that  DOA                                                                    
would work with DPS, because of their expertise.                                                                                
                                                                                                                                
Senator  Coghill stated  that  under  the Public  Employees'                                                                    
Retirement  System (PERS),  DPS  had  the responsibility  of                                                                    
notice, qualification, and administration.                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  shared that  she  did  not believe  the                                                                    
determination was appropriately assigned.                                                                                       
                                                                                                                                
9:35:41 AM                                                                                                                    
                                                                                                                                
Mr. Schilling continued to discuss the Sectional Analysis:                                                                      
                                                                                                                                
     Section 3                                                                                                                  
                                                                                                                                
          Uncodified law                                                                                                        
                                                                                                                                
          The  commissioner  of   public  safety  may  adopt                                                                    
          regulations necessary  to implement secs. 1  and 2                                                                    
          of  this Act.  The regulations  take effect  under                                                                    
          the Administrative  Procedure Act, but  not before                                                                    
          the effective date of sections 1 and 2.                                                                               
                                                                                                                                
     Section 4                                                                                                                  
                                                                                                                                
          Effective date                                                                                                        
                                                                                                                                
          Section 3 takes effect immediately.                                                                                   
                                                                                                                                
     Section 5                                                                                                                  
                                                                                                                                
          Effective date                                                                                                        
                                                                                                                                
          Sections 1 and 2 take effect July 1, 2017.                                                                            
                                                                                                                                
Co-Chair   MacKinnon   expressed   concern   regarding   the                                                                    
effective  date. She  wondered  whether  the transition  and                                                                    
regulations would  account for the three  families that were                                                                    
currently  advocating for  change  for  other families.  Mr.                                                                    
Schilling replied  that the legislation's  intent was  to be                                                                    
applied  retroactively  to  provide   the  benefit  for  the                                                                    
families outlined in the fiscal note.                                                                                           
                                                                                                                                
Senator  Coghill  stressed  that there  was  an  eligibility                                                                    
issue within the bill.                                                                                                          
                                                                                                                                
Co-Chair MacKinnon  shared that  she knew of  another family                                                                    
that  suffered  a  loss  due to  cancer,  so  she  expressed                                                                    
concern over the limit of the provision.                                                                                        
                                                                                                                                
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."                                                                     
                                                                                                                                
9:39:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ANDY JOSEPHSON, SPONSOR, thanked Senator                                                                         
Coghill and Representative Millett. He explained the bill.                                                                      
                                                                                                                                
Co-Chair  MacKinnon remarked  that the  senate bill  had the                                                                    
loss of the  spouse coverage at ten years,  but the children                                                                    
would  be  covered  to   age  26.  Representative  Josephson                                                                    
agreed.                                                                                                                         
                                                                                                                                
9:46:34 AM                                                                                                                    
                                                                                                                                
LISA WEISSLER, STAFF, REPRESENTATIVE JOSEPHSON, discussed                                                                       
the Sectional Analysis (copy on file):                                                                                          
                                                                                                                                
     Section 1.                                                                                                                 
                                                                                                                                
     Sec.   39.60.005.  Establishes   that  the   state  and                                                                    
     municipalities  shall  pay medical  insurance  premiums                                                                    
     for   the  surviving   dependents  of   eligible  peace                                                                    
     officers and firefighters.                                                                                                 
                                                                                                                                
     Sec.   39.60.010.   Peace   officer   and   firefighter                                                                    
     survivors'  fund   established.  Establishes   a  peace                                                                    
     officer   and  firefighter   survivors'  fund   in  the                                                                    
     Department  of   Public  Safety  to  pay   the  medical                                                                    
     insurance premiums  on behalf of eligible  survivors of                                                                    
     a peace  officer or  firefighter. Premium  payments are                                                                    
     made  to   the  deceased's   former  employer-sponsored                                                                    
     medical  insurance  provider.   The  fund  consists  of                                                                    
    donations and other money appropriated to the fund.                                                                         
                                                                                                                                
     The legislature  may make  appropriations to  the fund.                                                                    
     The funds do not lapse.  Money appropriated to the fund                                                                    
     may  be spent  for  the purposes  of  the fund  without                                                                    
     further appropriation.                                                                                                     
                                                                                                                                
     Sec. 39.60.020. Powers and  duties of the commissioner.                                                                    
     The commissioner  of Public Safety  annually determines                                                                    
     the  amount  of  money  needed   to  pay  premiums  for                                                                    
     eligible   survivors   and  associated   administrative                                                                    
     costs.  The  commissioner  shall adopt  regulations  to                                                                    
     implement the chapter.                                                                                                     
                                                                                                                                
     Sec.  39.60.030. Payment  authorized. The  commissioner                                                                    
     may  use  money in  the  fund's  state account  to  pay                                                                    
     medical insurance premiums for  eligible survivors of a                                                                    
     state  employee,  50  percent  of  the  premium  for  a                                                                    
     surviving  dependent   of  an   employee  of   a  small                                                                    
     municipality, and for administrative costs.                                                                                
                                                                                                                                
     Sec. 39.60.040. Eligibility  of surviving dependents of                                                                    
     peace officers  and firefighters for  medical insurance                                                                    
     premiums.  A surviving  dependent of  a deceased  peace                                                                    
     officer or  firefighter may apply to  the Department of                                                                    
     Public  Safety   commissioner  for  payment   of  their                                                                    
     medical  insurance premiums.  The survivor  is eligible                                                                    
     for  premium payments  if, at  the time  of death,  the                                                                    
     deceased  was a  full-time employee;  the survivor  was                                                                    
     receiving    employer-sponsored    medical    insurance                                                                    
     benefits;  the proximate  cause of  death was  a bodily                                                                    
     injury or hazard incurred while  in the performance and                                                                    
     within  the scope  of the  employee's  duties; and  the                                                                    
     injury  or  hazard  was not  the  proximate  result  of                                                                    
     willful negligence by the employee.                                                                                        
                                                                                                                                
     A  surviving  spouse  becomes ineligible  for  payments                                                                    
     from  the fund  when  the spouse  becomes eligible  for                                                                    
     major medical  insurance coverage by other  means or is                                                                    
     eligible  for Medicare,  whichever comes  first. Except                                                                    
     for a child who is  totally and permanently disabled, a                                                                    
     dependent  child becomes  ineligible  when they  become                                                                    
     eligible for major medical  insurance coverage by other                                                                    
     means  or  reaches 26  years  of  age, whichever  comes                                                                    
     first.                                                                                                                     
                                                                                                                                
     The commissioner  shall pay the  premium for  the level                                                                    
     of medical  coverage that  applied at  the time  of the                                                                    
     employee's death.  Payments are made to  the applicable                                                                    
     employer medical insurance provider.                                                                                       
                                                                                                                                
     Municipalities  with  populations  of  10,000  or  more                                                                    
     shall pay  the full premium for  eligible dependents of                                                                    
     municipal  peace officers  and firefighters.  For small                                                                    
     municipalities with  populations less than  10,000, the                                                                    
     commissioner shall pay 50 percent  of the premiums, and                                                                    
     the municipality pays the other half.                                                                                      
                                                                                                                                
9:50:29 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wondered whether  the major  medical was                                                                    
consistent with the  senate version, and the  house bill did                                                                    
not address  only major medical.  Ms. Weissler  replied that                                                                    
the bill contained only "medical",  because it broadened the                                                                    
definition  to  include the  coverage  at  the time  of  the                                                                    
employee's death.  She stressed that major  medical could be                                                                    
more restrictive.                                                                                                               
                                                                                                                                
Co-Chair MacKinnon  requested a reason for  the same premium                                                                    
costs for the different insurances.                                                                                             
                                                                                                                                
Co-Chair  MacKinnon explained  that she  was looking  at the                                                                    
difference  in the  coverage between  the  house and  senate                                                                    
versions.                                                                                                                       
                                                                                                                                
Senator Micciche  surmised that the bill  covered the spouse                                                                    
until  that  spouse  was  eligible   for  medical  care.  He                                                                    
remarked  that  that  the  senate bill  did  not  have  that                                                                    
provision,  but  had  the  same  fiscal  note.  He  wondered                                                                    
whether there was additional cost  to covering a spouse. Ms.                                                                    
Weissler replied that it was an unknown.                                                                                        
                                                                                                                                
Co-Chair  MacKinnon explained  that family  coverage may  be                                                                    
the same regardless of including the spouse in the policy.                                                                      
                                                                                                                                
Ms. Weissler continued to discuss the Sectional Analysis:                                                                       
                                                                                                                                
     Sec. 39.60.190. Definitions.                                                                                               
                                                                                                                                
     The   definitions  include   a  definition   of  "peace                                                                    
     officer" that  means a peace officer,  chief of police,                                                                    
     regional public  safety officer,  correctional officer,                                                                    
    correctional superintendent, or probation officer.                                                                          
                                                                                                                                
     A "firefighter" is defined an employee occupying a                                                                         
     position as a firefighter or fire chief.                                                                                   
                                                                                                                                
     A "small municipality" means a municipality with a                                                                         
     population of less than 10,000.                                                                                            
                                                                                                                                
9:54:21 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  wondered   whether  the  definition  of                                                                    
"large   municipality"   and   "small   municipality"   were                                                                    
consistent  in  statute.  Ms. Weissler  responded  that  the                                                                    
definitions were  created, and  based on  conversations with                                                                    
the Alaska Municipal League.                                                                                                    
                                                                                                                                
Senator Olson  queried the number of  smaller municipalities                                                                    
were  participating  in  the  50  percent  cost  share.  Ms.                                                                    
Weissler replied that  approximately 37 communities employed                                                                    
police officers, and unknown how many employ firefighters.                                                                      
                                                                                                                                
Ms. Weissler continued to discuss the Sectional Analysis:                                                                       
                                                                                                                                
     Sections 2 to  5. Amends AS 43.23.062 to  add the peace                                                                    
     officer   and  firefighter   survivors'   fund  as   an                                                                    
     organization   included    in   the    Permanent   Fund                                                                    
     contribution list.                                                                                                         
                                                                                                                                
     Section  6.  Amends  AS  44.41.020   to  add  that  the                                                                    
     Department  of Public  Safety  shall  manage the  peace                                                                    
     officer and firefighter  survivors' fund in cooperation                                                                    
     with the  Department of Administration.  The Department                                                                    
     of  Public Safety  shall  establish standardized  forms                                                                    
     for use in administering the fund.                                                                                         
                                                                                                                                
     Section  7. Transition:  Regulations. The  commissioner                                                                    
     of  public safety  may adopt  regulations to  implement                                                                    
     the Act.                                                                                                                   
                                                                                                                                
     Section 8. Section 7 takes effect immediately.                                                                             
                                                                                                                                
     Section 9. Other  than section 8, the  Act takes effect                                                                    
     July 1, 2017.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon  noted that the sponsor's  intent was not                                                                    
in  the  bill.  Representative Josephson  replied  the  bill                                                                    
seemed  to   indicate  that  the  application   allowed  for                                                                    
retroactivity.                                                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  queried  the parameters  of  the  "look                                                                    
back" provision. Representative  Josephson replied that both                                                                    
bills  needed to  clarify that  provision. He  remarked that                                                                    
the  administration  was  dealing  with the  coverage  in  a                                                                    
"patch work" way.                                                                                                               
                                                                                                                                
Co-Chair  MacKinnon  hoped  to  outline  the  two  bills  by                                                                    
component.                                                                                                                      
                                                                                                                                
10:00:24 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:01:07 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:01:16 AM                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon   looked  at   the  fiscal   note  dated                                                                    
2/17/2017  for Fund  Capitalization with  the allocation  to                                                                    
the  Survivor's Fund.  She noted  that the  language in  the                                                                    
last line  of the third  paragraph stated that "in  the last                                                                    
45 years, 40  peace officers, and 11  firefighters have been                                                                    
killed  in  Alaska  in  the   line  of  duty.  None  of  the                                                                    
firefighters  would be  eligible  because  they were  either                                                                    
federal  employees,  volunteer  firefighters,  or  with  the                                                                    
Anchorage Fire Department." She  stressed that the issue was                                                                    
statewide,  and  local communities  could  opt  into in  the                                                                    
future.                                                                                                                         
                                                                                                                                
Senator Micciche  recalled that  the sponsor stated  that an                                                                    
ineligible  might  become  re-eligible, and  wondered  where                                                                    
that provision  was in the  bill. Ms. Weissler  replied that                                                                    
SB  48 outlined  that  the person  would become  permanently                                                                    
ineligible, and HB 23 did not have that qualifier.                                                                              
                                                                                                                                
Co-Chair MacKinnon felt that the  lack of language inclusion                                                                    
did not specifically allow for that re-eligibility.                                                                             
                                                                                                                                
Representative   Josephson   commented   that   the   fallen                                                                    
firefighter  would   be  eligible  for  coverage,   and  the                                                                    
municipality might cover their claim under HB 23.                                                                               
                                                                                                                                
Co-Chair MacKinnon  stressed that  it yet to  be determined.                                                                    
She did not want to set false expectations for families.                                                                        
                                                                                                                                
SENATE BILL NO. 48                                                                                                            
                                                                                                                                
     "An Act  creating a  fund in  the Department  of Public                                                                    
     Safety;  providing  for   payment  of  certain  medical                                                                    
     insurance premiums for  surviving dependents of certain                                                                    
     police officers or firefighters who  die in the line of                                                                    
     duty; and providing for an effective date."                                                                                
                                                                                                                                
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."                                                                     
                                                                                                                                
10:06:54 AM                                                                                                                   
                                                                                                                                
^PUBLIC TESTIMONY                                                                                                             
                                                                                                                                
10:06:50 AM                                                                                                                   
                                                                                                                                
KATHIE WASSERMAN, ALASKA MUNICIPAL  LEAGUE, JUNEAU, spoke in                                                                    
specific support of  SB 48, because it gave  the ability for                                                                    
municipalities to  elect to  be a part  of the  program. She                                                                    
remarked  that the  municipality  has historically  "stepped                                                                    
up" after  a fatality.  She felt  that a  mandate took  on a                                                                    
different  direction.  She  remarked that  there  were  some                                                                    
small  municipalities  who  were   not  able  to  pay  their                                                                    
worker's  compensation  bills,  so requiring  a  50  percent                                                                    
payment may be a problem.                                                                                                       
                                                                                                                                
Senator Micciche  wondered whether her  statements reflected                                                                    
any  other municipality  besides Juneau  and Fairbanks.  Ms.                                                                    
Wasserman responded  that the comments reflected  the Alaska                                                                    
Municipal  League's   general  principle,  which   was  that                                                                    
municipalities could  elect to  do as they  choose according                                                                    
their finances.  She stressed that municipalities  would not                                                                    
support unfunded mandates.                                                                                                      
                                                                                                                                
10:09:08 AM                                                                                                                   
                                                                                                                                
BRANDY  JOHNSON,  SELF,  JUNEAU,  spoke in  support  of  the                                                                    
bills. She stated  that she had a deceased  husband who died                                                                    
in the line of duty.                                                                                                            
                                                                                                                                
10:13:45 AM                                                                                                                   
                                                                                                                                
JAKE METCALFE, EXECUTIVE  DIRECTOR, PUBLIC SERVICE EMPLOYEES                                                                    
ASSOCIATION  (PSEA),  LOCAL 803,  spoke  in  support of  the                                                                    
bills.                                                                                                                          
                                                                                                                                
Co-Chair MacKinnon  queried the  reason why the  benefit was                                                                    
not bargained into contracts. Mr.  Metcalfe replied that the                                                                    
public   service  employees   worked  for   the  state   and                                                                    
municipalities. The  employees were hired to  do a dangerous                                                                    
job, and  they could  be killed protecting  Alaska citizens.                                                                    
He  stressed that  the  PSEA did  not  employ those  people,                                                                    
rather only represented them.                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair MacKinnon  wondered whether PSEA  negotiated health                                                                    
care benefits. Mr. Metcalfe replied in the affirmative.                                                                         
                                                                                                                                
Co-Chair   MacKinnon  concurred   with  his   comments.  Mr.                                                                    
Metcalfe stressed that PSEA did not hire the employees.                                                                         
                                                                                                                                
Co-Chair   MacKinnon   wondered   whether  the   issue   had                                                                    
previously been put forward. Mr.  Metcalfe replied that Tier                                                                    
1  level provided  the benefit  to  families. The  remaining                                                                    
tiers did not provide that benefit.                                                                                             
                                                                                                                                
10:20:37 AM                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon  asked  when  Tier 2  was  enacted.  Mr.                                                                    
Metcalfe replied that Tier 1 ended  in 1986, so Tier 2 would                                                                    
have occurred  at that point.  He shared that  families were                                                                    
often  too  overwhelmed  by  the  tragedy  to  consider  the                                                                    
benefits. He  remarked that many  people may have  not known                                                                    
who or how to reach out.                                                                                                        
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether there  was  an  issue                                                                    
since 1986 to know whether  there was coverage. Mr. Metcalfe                                                                    
could not speak to that timeframe.                                                                                              
                                                                                                                                
Co-Chair  MacKinnon  wanted  to  know whether  there  was  a                                                                    
loophole about  why the conversation  did not occur  in that                                                                    
timeframe. She  wondered why the  union did not  address the                                                                    
issue sooner.  Mr. Metcalfe responded  that PSEA  could only                                                                    
negotiate contracts  for three  years with the  state. There                                                                    
would be  a renegotiation of  the benefit. He stated  that a                                                                    
statute would be permanent.                                                                                                     
                                                                                                                                
10:26:19 AM                                                                                                                   
                                                                                                                                
Senator  Micciche  wondered  whether the  survivor  benefits                                                                    
were lost between  Tiers 2 and 3. Mr.  Metcalfe replied that                                                                    
only Tier 1 had the benefit.                                                                                                    
                                                                                                                                
Senator  Micciche surmised  that  the number  in the  fiscal                                                                    
note may  be less, because  some of those officers  may have                                                                    
been Tier 1. Mr. Metcalfe agreed.                                                                                               
                                                                                                                                
10:27:32 AM                                                                                                                   
                                                                                                                                
JEFF BRINK, POLICE OFFICER, MEMBER,  PSEA LOCAL 803, JUNEAU,                                                                    
spoke in support of the bills.                                                                                                  
                                                                                                                                
10:28:41 AM                                                                                                                   
                                                                                                                                
DAVID   PRUHS,    CITY   OF   FAIRBANKS,    FAIRBANKS   (via                                                                    
teleconference), spoke in support of the bills.                                                                                 
                                                                                                                                
10:31:39 AM                                                                                                                   
                                                                                                                                
REBECCA  SHWANKE,  SELF,   GLENALLEN  (via  teleconference),                                                                    
spoke in support of the bills.                                                                                                  
                                                                                                                                
10:33:53 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:34:03 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:34:19 AM                                                                                                                   
                                                                                                                                
TOM  WESCOTT, PRESIDENT,  ALASKA PROFESSIONAL  FIREFIGHTERS,                                                                    
EAGLE RIVER  (via teleconference),  testified in  support of                                                                    
the bills.                                                                                                                      
                                                                                                                                
10:35:57 AM                                                                                                                   
                                                                                                                                
PAUL  KENDALL, SELF,  ANCHORAGE (via  teleconference), spoke                                                                    
against the bills.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
10:43:23 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon stressed that  the major medical coverage                                                                    
must   be  addressed.   She   remarked   that  the   payment                                                                    
information was an issue.                                                                                                       
                                                                                                                                
Senator  Micciche  wanted   to  understand  the  retroactive                                                                    
benefits, and the possible additional costs.                                                                                    
                                                                                                                                
Co-Chair  MacKinnon remarked  that  the issue  of an  unborn                                                                    
child benefit would be covered.                                                                                                 
                                                                                                                                
Senator von  Imhof queried  the current  disability payments                                                                    
related to an injury.                                                                                                           
                                                                                                                                
                                                                                                                                
Co-Chair MacKinnon wanted to know  the language used in Tier                                                                    
1.                                                                                                                              
                                                                                                                                
Senator  Dunleavy wondered  whether  the step-children  were                                                                    
included.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  replied that step-children  were covered                                                                    
in at least of the bills.                                                                                                       
                                                                                                                                
Senator  Olson commented  that the  smaller communities  did                                                                    
not often  have a police  officer, so  it fell on  the state                                                                    
troopers to address an issue.                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon announced  that amendments  were due  by                                                                    
noon the following Friday.                                                                                                      
                                                                                                                                
SB  48  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CSHB 23 (FIN)am was HEARD  and HELD in committee for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:50:03 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:50 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 23 Support Letter Colasacco.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
HB 23 Support Letter PSEA-AFSCME.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
HB 23 SUPPORT APOA.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
HB 23 Survivor Benefits - HB 23 and SB 48.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
SB 48
CSHB023 Sectional Analysis.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
CSHB023 Sponsor Statement.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
CSHB023 Explanation of Changes.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
CSHB023 Fairbanks Letter.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
CSHB023 Letters Summary.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
SB 48 Wescott Letter.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Summary of Changes (ver. J to ver. U).pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Sponsor Statement.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Sectional Summary.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Letter - City of Fairbanks.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Letter - City Borough Juneau.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
SB48 Legal and Policy Concerns with PERS.pdf SFIN 4/5/2017 9:00:00 AM
SB 48
HB 23 SB 48 Public Testimony Duran.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
SB 48
HB 23 Public Testimony Cook.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
HB23 _ SB48 Public Testimony Lister.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
SB 48
HB 23 SB 48 Testimony Johnson.pdf SFIN 4/5/2017 9:00:00 AM
HB 23
SB 48