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HB 435: "An Act relating to the consumer price index; and providing for an effective date."

00HOUSE BILL NO. 435 01 "An Act relating to the consumer price index; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 01.10.060 is amended by adding a new paragraph to read: 05  (15) "consumer price index" means the Consumer Price Indexes, All 06 Items Indexes, All Urban Consumers, U.S. City Average, compiled by the Bureau of 07 Labor Statistics, United States Department of Labor. 08 * Sec. 2. AS 09.38.115(a) is amended to read: 09  (a) The dollar amounts in this chapter change, as provided in this section, 10 according to and to the extent of changes in the consumer price index [CONSUMER 11 PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE ANCHORAGE 12 METROPOLITAN AREA COMPILED BY THE BUREAU OF LABOR STATISTICS, 13 UNITED STATES DEPARTMENT OF LABOR] (the index). The index for January 14 of 1982 is the reference base index.

01 * Sec. 3. AS 09.55.548(a) is amended to read: 02  (a) Damages shall be awarded in accordance with principles of the common 03 law. The fact finder in a malpractice action shall render any award for damages by 04 category of loss. The court may enter a judgment that future damages be paid in 05 whole or in part by periodic payments rather than by a lump-sum payment; the 06 judgment must include, if necessary, other provisions to assure that funds are available 07 as periodic payments become due. Insurance from an authorized insurer as defined in 08 AS 21.90.900 is sufficient assurance that funds will be available. Any part of the 09 award that is paid on a periodic basis shall be adjusted annually according to changes 10 in the consumer price index [IN THE COMMUNITY WHERE THE CLAIMANT 11 RESIDES]. In this subsection, "future damages" includes damages for future medical 12 treatment, care or custody, loss of future earnings, or loss of bodily function of the 13 claimant. 14 * Sec. 4. AS 14.25.143(f) is amended to read: 15  (f) Notwithstanding the definition of consumer price index in AS 01.10.060, 16 for an employee who first became a member of the system before the effective 17 date of this Act, an [AN] increase in benefit payments under this section is effective 18 July 1 of each year and is based on the percentage increase in the consumer price 19 index for urban wage earners and clerical workers for Anchorage, Alaska , during the 20 previous calendar year as determined by the United States Department of Labor, 21 Bureau of Labor Statistics. For an employee first hired in the system on or after 22 the effective date of this Act, an increase in benefit payments under this section 23 is effective July 1 of each year and is based on the percentage increase in the 24 consumer price index. 25 * Sec. 5. AS 14.56.330(b) is amended to read: 26  (b) State money granted to a library under AS 14.56.300 - 14.56.340 may not 27 be used to supplant local money equal to local expenditures for that library in fiscal 28 year 1980, as adjusted annually by the commissioner to conform approximately to 29 changes in the [UNITED STATES DEPARTMENT OF LABOR BUREAU OF 30 LABOR STATISTICS] consumer price index [FOR ANCHORAGE, ALASKA]. A 31 library that uses state money to supplant local money forfeits eligibility for grants

01 under AS 14.56.300 - 14.56.340 for two years. 02 * Sec. 6. AS 18.20.340 is amended to read: 03  Sec. 18.20.340. Civil fines. In accordance with regulations adopted by the 04 department under AS 44.62.010 - 44.62.300, the department may assess and collect, 05 with interest, a civil fine of up to $10,000 a day for each day a nursing facility is or 06 was out of compliance with any of the federal or state statutes or regulations listed in 07 AS 18.20.310. The department shall annually increase the maximum amount of the 08 civil fine authorized in this section by a percentage equal to the percentage of increase 09 in [ALL ITEMS OF] the consumer price index [CONSUMER PRICE INDEX FOR 10 ALL URBAN CONSUMERS FOR ANCHORAGE, ALASKA]. Each day upon which 11 the same or a substantially similar noncompliance occurs is a separate violation subject 12 to the assessment of a separate civil fine. A civil fine assessed under this section is 13 not reimbursable under AS 47.07 or AS 47.25.120 - 47.25.300. The department shall 14 deduct the amount of a civil fine from reimbursement due or to be due the nursing 15 facility under AS 47.07 or AS 47.25.120 - 47.25.300. The department may also use 16 any remedy available under law to pursue collection of an unpaid fine. 17 * Sec. 7. AS 21.42.365(b) is amended to read: 18  (b) The benefits described in (a) of this section shall be adjusted January 1, 19 1999, by the director and every three years thereafter to correspond with the change 20 in the medical care component of the consumer price index [FOR ALL URBAN 21 CONSUMERS FOR THE ANCHORAGE METROPOLITAN AREA COMPILED BY 22 THE BUREAU OF LABOR STATISTICS, UNITED STATES DEPARTMENT OF 23 LABOR]. The base year for the first adjustment shall be calendar year 1996. 24 * Sec. 8. AS 21.55.120(a) is amended to read: 25  (a) A state plan other than a Medicare supplement plan may require 26 deductibles of $200 a person, $500 a person, or $1,000 a person. The amount of the 27 deductible may not be greater when a service is rendered on an outpatient basis than 28 when that service is offered on an inpatient basis. Expenses incurred during the last 29 three months of a calendar year and actually applied to an individual's deductible for 30 that year shall also be applied to that individual's deductible in the following calendar 31 year. The $200 maximum, the $500 maximum, and the $1,000 maximum may be

01 adjusted yearly to correspond with the change in the consumer price index 02 [MEDICAL CARE COMPONENT OF THE CONSUMER PRICE INDEX], as 03 adjusted by the director. The base year for the computation shall be the first full 04 calendar year of operation of the association. 05 * Sec. 9. AS 21.55.120(c) is amended to read: 06  (c) Except as provided in (e) of this section, the sum of the deductible and 07 copayments required in any calendar year under a plan may not exceed a maximum 08 limit of $2,000 per covered individual. Covered expenses incurred after the applicable 09 maximum limit has been reached shall be paid at the rate of 100 percent of usual, 10 customary, reasonable, or prevailing charges, except that expenses incurred for 11 treatment of mental and nervous conditions shall be paid at the rate of 50 percent. The 12 $2,000 maximum shall be adjusted yearly to correspond with the change in the 13 consumer price index [MEDICAL CARE COMPONENT OF THE CONSUMER 14 PRICE INDEX] as adjusted by the director. 15 * Sec. 10. AS 26.05.260(b) is amended to read: 16  (b) Members of the Alaska National Guard and Alaska Naval Militia are 17 entitled to receive, for each day of active service under AS 26.05.070, pay and 18 allowances equal to those provided by federal laws and regulations for members of 19 equivalent grades of the United States armed forces. However, a member may not 20 receive less than $65 a [PER] day for active service performed during the fiscal year 21 ending June 30, 1982. For fiscal years beginning after June 30, 1982, the minimum 22 payment of $65 shall be increased one percent for each percent increase in the 23 consumer price index [OF ANCHORAGE, ALASKA, AS DETERMINED BY THE 24 UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR 25 STATISTICS], not to exceed an annual increase of 10 percent. The increase, if any, 26 takes effect not more than 30 days after the release of the consumer price index. The 27 consumer price index that is published immediately after July 1, 1981, is the reference 28 base index. 29 * Sec. 11. AS 34.08.820(a) is amended to read: 30  (a) Notwithstanding the definition of consumer price index in 31 AS 01.10.060, for planned communities created before the effective date of this

01 Act, the [THE] dollar amounts specified in AS 34.08.030 and 34.08.510(b)(7) change 02 under (b) and (c) of this section, according to and to the extent of changes in the 03 Consumer Price Index for Urban Wage Earners and Clerical Workers: U.S. City 04 Average, All Items 1967 equal 100, compiled by the Bureau of Labor Statistics, United 05 States Department of Labor, (the "Index"). The Index for December, 1979, which was 06 230, is the Reference Base Index. For planned communities created on or after the 07 effective date of this Act, the change under this section is based on the consumer 08 price index as defined in AS 01.10.060. 09 * Sec. 12. AS 37.05.540(b) is amended to read: 10  (b) Except for appropriations to the permanent fund or for Alaska permanent 11 fund dividends, appropriations to the budget reserve fund, appropriations of revenue 12 bond proceeds, appropriations required to pay the principal and interest on general 13 obligation bonds, and appropriations of money received from a nonstate source in trust 14 for a specific purpose, including revenue of a public enterprise or public corporation 15 of the state that issues revenue bonds, appropriations from the mental health trust 16 settlement income account (AS 37.14.036), and appropriations made to the mental 17 health trust fund (AS 37.14.031), appropriations from the treasury made in a fiscal year 18 may not exceed appropriations made in the preceding fiscal year by more than five 19 percent plus the change in population and inflation since the beginning of the 20 preceding fiscal year. For purposes of applying this limit , an appropriation is 21 considered to be made in the fiscal year in which it is enacted and a reappropriation 22 remains attributed to the fiscal year in which the original appropriation is enacted. The 23 determination of the change in population for purposes of this subsection shall be 24 based on an annual estimate of population by the Department of Labor. The 25 determination of the change in inflation for purposes of this subsection shall be based 26 on the consumer price index [CONSUMER PRICE INDEX FOR ALL URBAN 27 CONSUMERS FOR ANCHORAGE PREPARED BY THE UNITED STATES 28 BUREAU OF LABOR STATISTICS]. The amount of money received by the state 29 that is subject to the appropriation limit includes the balance in the general fund 30 carried forward from the preceding fiscal year. 31 * Sec. 13. AS 37.13.145(c) is amended to read:

01  (c) After the transfer under (b) of this section, the corporation shall transfer 02 from the earnings reserve account to the principal of the fund an amount sufficient to 03 offset the effect of inflation on the principal of the fund during that fiscal year. The 04 corporation shall calculate the amount to transfer to the principal under this subsection 05 by 06  (1) computing the average of the monthly consumer price index 07 [UNITED STATES CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS] 08 for each of the two previous calendar years; 09  (2) computing the percentage change between the first and second 10 calendar year average; and 11  (3) applying that rate to the value of the principal of the fund on the 12 last day of the fiscal year just ended. 13 * Sec. 14. AS 38.05.211(d) is amended to read: 14  (d) Notwithstanding the definition of consumer price index in 15 AS 01.10.060, for mining claims, leasehold locations, and mining leases first 16 acquired from the state before the effective date of this Act, the [THE] rental 17 amount established under this section shall be revised by the commissioner as provided 18 in this section based on changes in the Consumer Price Index for all urban consumers, 19 Anchorage Metropolitan Area (Semi-Annual Average) , compiled by the Bureau of 20 Labor Statistics, United States Department of Labor, as revised, rebased, or replaced 21 by that bureau. The reference base index is the index for January - June 1989, as 22 revised or rebased by that bureau. The rental amount shall be increased or decreased, 23 as appropriate, by an amount equal to the change in the index described in this 24 subsection rounded to the nearest whole $5 unit. The commissioner shall calculate the 25 change in the rental amount each 10 years and, if the rental amount must be revised, 26 shall adopt a regulation establishing the revised rental amount. A revised rental 27 amount applies to a rental payment if the regulation establishing the revised rental 28 amount took effect at least 90 days before the date the rental payment is due. For 29 mining claims, leasehold locations, and mining leases first acquired from the state 30 on or after the effective date of this section, a revision of the rental amount under 31 this Act shall be based on changes in the consumer price index as that term is

01 defined in AS 01.10.060, and the reference base index is the index for 1998. 02 * Sec. 15. AS 38.05.321(h) is amended to read: 03  (h) The value of the right to construct housing determined under (e) of this 04 section shall be adjusted to correspond with the change in the consumer price index 05 [FOR ALL URBAN CONSUMERS FOR THE ANCHORAGE METROPOLITAN 06 AREA COMPILED BY THE BUREAU OF LABOR STATISTICS, UNITED STATES 07 DEPARTMENT OF LABOR]. The base year for the computation shall be the 08 calendar year in which the process of conveyance of state land authorized by (a) of 09 this section is initiated under this section. 10 * Sec. 16. AS 39.27.011(e) is amended to read: 11  (e) Effective July 1, 1996, the amounts set out in the salary schedule contained 12 in (a) of this section are increased by the lesser of 13  (1) 1.5 percent; or 14  (2) one-half of the percentage increase in the [UNITED STATES 15 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS,] consumer price 16 index [FOR ALL URBAN CONSUMERS FOR ANCHORAGE, ALASKA,] from the 17 second half of 1994 to the second half of 1995. 18 * Sec. 17. AS 39.27.011(f) is amended to read: 19  (f) Effective July 1, 1997, the amounts set out in the salary schedule contained 20 in (a) of this section, as increased under (e) of this section, are increased by the lesser 21 of 22  (1) 1.5 percent; or 23  (2) one-half of the percentage increase in the [UNITED STATES 24 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS,] consumer price 25 index [FOR ALL URBAN CONSUMERS FOR ANCHORAGE, ALASKA,] from the 26 second half of 1995 to the second half of 1996. 27 * Sec. 18. AS 39.27.011(g) is amended to read: 28  (g) Effective July 1, 1998, the amounts set out in the salary schedule contained 29 in (a) of this section, as increased under (e) and (f) of this section, are increased by 30 the lesser of 31  (1) 1.5 percent; or

01  (2) one-half of the percentage increase in the [UNITED STATES 02 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS,] consumer price 03 index [FOR ALL URBAN CONSUMERS FOR ANCHORAGE, ALASKA,] from the 04 second half of 1996 to the second half of 1997. 05 * Sec. 19. AS 39.35.475(f) is amended to read: 06  (f) Notwithstanding the definition of consumer price index in AS 01.10.060, 07 for an employee who first became a member of the system before the effective 08 date of this Act, an [AN] increase in benefit payments under this section is effective 09 July 1 of each year and is based on the percentage increase in the consumer price 10 index for urban wage earners and clerical workers for Anchorage, Alaska , during the 11 previous calendar year as determined by the United States Department of Labor, 12 Bureau of Labor Statistics. For an employee first hired in the system on or after 13 the effective date of this Act, an increase in benefit payments under this section 14 is effective July 1 of each year and is based on the percentage increase in the 15 consumer price index. 16 * Sec. 20. AS 46.04.045(a) is amended to read: 17  (a) Notwithstanding the definition of consumer price index in 18 AS 01.10.060, for a person who submitted a proof of responsibility before the 19 effective date of this Act, the [THE] dollar amounts in AS 46.04.040 change, as 20 provided in this section, according to and to the extent of changes in the Consumer 21 Price Index for all urban consumers for the Anchorage metropolitan area compiled by 22 the Bureau of Labor Statistics, United States Department of Labor (the index). The 23 index for January 1990 is the reference base index. For a person who submits a 24 proof of responsibility on or after the effective date of this Act, the change 25 provided in this section is based on the consumer price index as that term is 26 defined in AS 01.10.060, and the reference base index is the index for December 27 1998. 28 * Sec. 21. AS 21.55.120(d) is repealed. 29 * Sec. 22. APPLICABILITY. (a) AS 09.55.548(a), as amended by sec. 3 of this Act, 30 applies only to damage awards made on or after the effective date of this Act. 31 (b) AS 21.42.365(b), as amended by sec. 7 of this Act, applies, with respect to

01 hospital and medical service corporations under AS 21.87.340, only to contracts of service 02 corporations entered into on or after the effective date of this Act. 03 (c) AS 38.05.321(h), as amended by sec. 15 of this Act, applies only to landowners 04 who obtain patents on or after the effective date of this Act under a homestead entry permit 05 issued under AS 38.09. 06 * Sec. 23. This Act takes effect January 1, 1999.