00                  SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 5                                                                
01 "An Act relating to payment of health benefit premiums for a surviving spouse and                                       
02 dependent child of certain peace officers and firefighters who die in the line of duty; and                             
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 44.41.020 is amended by adding a new subsection to read:                                           
06 (g)  The Department of Public Safety shall: manage and administer the line-of-                                          
07 duty-death survivor health benefit fund established in AS 44.41.070. The Department                                     
08 of Public Safety shall establish standardized procedures and forms for use in                                           
09       administering the line-of-duty-death survivor health benefit fund.                                                
10    * Sec. 2. AS 44.41 is amended by adding new sections to read:                                                      
11 Sec. 44.41.070. Line-of-duty-death survivor health benefit fund. (a) The                                              
12 line-of-duty-death survivor health benefit fund is established as a separate fund in the                                
13 Department of Public Safety. The fund consists of appropriations made to the fund by                                    
14 the legislature and donations made to the fund. Money appropriated to the fund does                                     
01 not lapse. The Department of Public Safety may hold the principal and earnings of the                                   
02 fund for the purpose of reimbursing the union health trust for the cost of health benefit                               
03 premiums for eligible survivors of peace officers and firefighters who die in the line of                               
04       duty.                                                                                                             
05 (b)  Upon application by a person claiming benefits under this section, the                                             
06 commissioner of public safety shall determine if the applicant is a survivor eligible to                                
07       receive fund proceeds for health benefits.                                                                        
08 (c)  If eligibility is established, the first fund payment shall be made for the                                        
09 month following the month in which the survivor applies for fund proceeds and                                           
10       payment shall stop the month after eligibility ends under (e) of this section.                                    
11 (d)  Except as provided in (e) of this section, the following persons are eligible                                      
12       for fund proceeds for health benefit coverage under this section:                                                 
13 (1)  the surviving spouse of a deceased, state-employed peace officer or                                                
14       firefighter who died in the line of duty;                                                                         
15 (2)  the dependent children of a deceased, state-employed peace officer                                                 
16       or firefighter who died in the line of duty.                                                                      
17 (e)  The commissioner of public safety may make expenditures from the fund                                              
18 to reimburse the union health trust fund for eligible survivor health benefit premiums                                  
19       until                                                                                                             
20 (1)  a surviving spouse becomes eligible to receive health or medical                                                   
21 benefits through employment or other means, or becomes eligible to receive system-                                      
22 paid medical benefits through the public employee's retirement system (AS. 39.35), or                                   
23       until the survivor reaches 65 years of age, whichever comes first;                                                
24 (2)  a dependent child becomes eligible to receive health or medical                                                    
25 benefits through employment or other means or reaches 26 years of age, whichever                                        
26       comes first.                                                                                                      
27 (f)  The fund may be used to pay the management and administrative expenses                                             
28       incurred by the Department of Public Safety in administering this section.                                        
29 (g)  Money appropriated to the fund may be spent for the purposes of the fund                                           
30       without further appropriation.                                                                                    
31            (h)  Nothing in this section creates a dedicated fund.                                                       
01            (i)  The Department of Public Safety may adopt regulations necessary to carry                                
02       out the provisions of this section.                                                                               
03            (j)  In this section,                                                                                        
04                 (1)  "died in the line of duty" has the meaning given to "line-of-duty-                                 
05       death" in this section;                                                                                           
06                 (2)  "firefighter" means an airport police and fire officer or a deputy fire                            
07       marshal employed by the state;                                                                                    
08                 (3)  "fund" means the line-of-duty-death survivor health benefit fund;                                  
09                 (4)  "line-of-duty-death" means the death of a peace officer or                                         
10 firefighter employed by the state who died before the employee's retirement and                                         
11 before the employee's normal retirement date, and the proximate cause of death is a                                     
12 bodily injury sustained or a hazard undergone while in the performance and within the                                   
13 scope of the employee's duties, and the injury or hazard is not the proximate result of a                               
14       wilful negligence of the employee;                                                                                
15 (5)  "peace officer" means a trooper, court service officer, or airport                                                 
16       police and fire officer employed by the state;                                                                    
17 (6)  "survivor" means the surviving spouse or dependent children of a                                                   
18       peace officer or firefighter who died in the line of duty;                                                        
19 (7)  "union health trust" means the health trust maintained by the union                                                
20 that formerly provided health benefits to the peace officer or firefighter who died in                                  
21       the line of duty.                                                                                                 
22 Sec. 44.41.072. Local government election to participate in line-of-duty-                                             
23 death survivor health benefit fund. (a) The commissioner may, from time to time,                                      
24 enter into an agreement under AS 44.41.076 to allow a municipality to participate in                                    
25 the fund, if the municipality elects to participate. If a municipality elects to participate                            
26 in the fund, the commissioner shall determine the amount and frequency of                                               
27 contributions the municipality is required to make to the fund based on the anticipated                                 
28 cost of the municipality's participation, including the department's cost of                                            
29       administering the agreement under this subsection.                                                                
30 (b)  The commissioner shall administer agreements entered into under (a) of                                             
31       this section.                                                                                                     
01 (c)  The surviving spouse or dependent child of a peace officer or firefighter                                          
02 who died while employed by a municipality is not eligible for reimbursement under                                       
03 the fund unless the municipality elects to participate in the fund and is in compliance                                 
04       with an agreement entered into under (a) of this section.                                                         
05 Sec. 44.41.074. Eligibility of municipal peace officers and firefighters. (a)                                         
06 Notwithstanding AS 44.41.072(c), the surviving spouse or dependent child of a peace                                     
07 officer or firefighter who was employed by a municipality may be determined eligible                                    
08       for reimbursement under the fund if, at the time of death,                                                        
09 (1)  the municipality elected to participate in the fund and was in                                                     
10       compliance with the terms of an agreement entered into under AS 44.41.072(a); and                                 
11 (2)  the peace officer or firefighter was a member of the Public                                                        
12 Employees' Retirement System of Alaska (AS 39.35) and not eligible for normal                                           
13       retirement from that system.                                                                                      
14 (b)  The commissioner may determine that a surviving spouse or surviving                                                
15 dependent child of a peace officer or firefighter employed by a municipality who                                        
16 would otherwise be eligible for reimbursement under AS 44.41.072 is ineligible and                                      
17 deny reimbursement until the commissioner determines all requirements of the                                            
18 agreement are satisfied if a municipality enters into an agreement under                                                
19 AS 44.41.072(a) and fails to meet a requirement of that agreement, including a                                          
20       requirement under AS 44.41.076.                                                                                   
21 Sec. 44.41.076. Terms of agreement by municipality to participate in fund.                                            
22 An agreement under AS 44.41.072(a) for a municipality to participate in the fund must                                   
23       require that the municipality                                                                                     
24 (1)  contribute to the fund as determined by the commissioner under                                                     
25       AS 44.41.072(a);                                                                                                  
26                 (2)  is current with contributions required under this section; and                                     
27                 (3)  complies with applicable regulations adopted by the commissioner.                                  
28            Sec. 44.41.079. Definitions. In AS 44.41.070 - 44.41.079,                                                  
29 (1)  "commissioner" means the commissioner of public safety or the                                                      
30       commissioner's designee;                                                                                          
31                 (2)  "department" means the Department of Public Safety;                                                
01 (3)  "dependent child" means an unmarried child of an employee,                                                         
02 including an adopted child, who is dependent on the employee for support and who is                                     
03 either (A) under 19 years of age or (B) under 26 years of age and enrolled on a full-                                   
04 time basis in an accredited educational or technical institution recognized by the                                      
05 Alaska Commission on Postsecondary Education; age restrictions under this paragraph                                     
06       do not apply to a child who is totally and permanently disabled;                                                  
07                 (4)  "firefighter" means a person who is employed by the fire                                           
08       department of a municipality that is bound by an agreement under AS 44.41.025(a);                                 
09                 (5)  "fund" means the line-of-duty-death survivor health benefit fund                                   
10       established in AS 44.41.070;                                                                                      
11                 (6)  "peace officer" means a person who is employed by the police                                       
12       department of a municipality that is bound by an agreement under AS 44.41.072(a).                                 
13    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
14 read:                                                                                                                   
15 TRANSITION: REGULATIONS. The commissioner of public safety may adopt                                                    
16 regulations necessary to implement secs. 1 and 2 of this Act. The regulations take effect under                         
17 AS 44.62 (Administrative Procedure Act), but not before the effective date of secs. 1 and 2 of                          
18 this Act.                                                                                                               
19    * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c).                                    
20    * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect July 1, 2017.