Legislature(2025 - 2026)
2026-05-11 House Journal
Full Journal pdf2026-05-11 House Journal Page 2475 HB 261 The following was read the second time: HOUSE BILL NO. 261 "An Act relating to education funding; and providing for an effective date." with the: Journal Page EDC RPT CS(EDC) 4DP 1DNP 2NR 2016 FN1: ZERO(EED) 2016 FN2: ZERO(EED) 2016 FN3: (EED) 2016 FN4: (EED/FUND CAP) 2016 FIN RPT CS(FIN) 6DP 1DNP 4AM 2410 FN3: (EED) 2410 FN5: (EED/FUND CAP) 2410 FN6: (EED) 2410 FN7: ZERO(EED) 2410 Representative Kopp moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: 2026-05-11 House Journal Page 2476 CS FOR HOUSE BILL NO. 261(FIN) (same title) Representative Ruffridge objected and withdrew the objection. There being no further objection, CSHB 261(FIN) was adopted. Amendment No. 1 was offered by Representative Himschoot: Page 6, line 23: Delete "must be based on" Insert "is adjusted to" Representative Himschoot moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Johnson objected and withdrew the objection. There being no further objection, Amendment No. 1 was adopted. Amendment No. 2 was offered by Representative Vance: Page 1, line 1, following "funding;" (title amendment): Insert "relating to group insurance coverage and self-insurance coverage for school district employees, employees of the University of Alaska, and employees of other governmental units in the state;" Page 1, following line 6: Insert a new bill section to read: "* Sec. 2. AS 14.08.101 is amended to read: Sec. 14.08.101. Powers. A regional school board may (1) sue and be sued; (2) contract with the department, the Bureau of Indian Affairs, or any other school district, agency, or regional board for the provision of services, facilities, supplies, or utilities; (3) determine its own fiscal procedures, including policies and procedures for the purchase of supplies and equipment; the regional school boards are exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State Procurement Code); (4) appoint, compensate, and otherwise control all school employees in accordance with this title; these employees are not 2026-05-11 House Journal Page 2477 subject to AS 39.25 (State Personnel Act); (5) adopt regulations governing organization, policies, and procedures for the operation of the schools; (6) establish, maintain, operate, discontinue, and combine schools subject to the approval of the commissioner; (7) recommend to the department projects for construction, rehabilitation, and improvement of schools and education-related facilities as specified in AS 14.11.011(b), and plan, design, and construct the project when the responsibility for it is assumed under AS 14.11.020; (8) by resolution adopted by a majority of all the members of the board and provided to the commissioner of the department, assume ownership of all land and buildings used in relation to the schools in the regional educational attendance area, as provided for in AS 14.08.151(b); (9) provide housing for rental to teachers, by leasing existing housing from a local agency or individual, by entering into contractual arrangements with a local agency or individual to lease housing that will be constructed by the local agency or individual for that purpose, or, without using for the purpose that portion of public school funding that consists of state aid provided under AS 14.17, by constructing or otherwise acquiring housing that is owned and managed by the regional educational attendance area for rental to teachers; (10) employ a chief school administrator; (11) apply for and use the proceeds of a loan from the Alaska energy efficiency revolving loan fund (AS 18.56.855); (12) establish and maintain participation in a policy of insurance as authorized by AS 14.27.010; (13) exercise those other functions that may be necessary for the proper performance of its responsibilities." Renumber the following bill sections accordingly. Page 4, following line 28: Insert a new bill section to read: "* Sec. 6. AS 14.14.090 is amended to read: Sec. 14.14.090. Duties of school boards. In addition to other duties, a school board shall 2026-05-11 House Journal Page 2478 (1) determine and disburse the total amount to be made available for compensation of all school employees and administrative officers, including, when applicable, the amount necessary to pay for the district's participation in a policy of insurance under AS 14.27.010; (2) provide for, during the school term of each year, an educational program for each school age child who is enrolled in or a resident of the district; (3) withhold the salary for the last month of service of a teacher or administrator until the teacher or administrator has submitted all summaries, statistics, and reports that the school board may require by bylaws; (4) transmit, when required by the assembly or council but not more often than once a month, a summary report and statement of money expended; (5) keep the minutes of meetings and a record of all proceedings of the school board in a pertinent form; (6) keep the records and files of the school board open to inspection by the public at the principal administrative office of the district during reasonable business hours; (7) establish procedures for the review and selection of all textbooks and instructional materials at least once every 10 years, including textbooks and curriculum materials for statewide correspondence programs, before they are introduced into the school curriculum; the review includes a review for violations of AS 14.18.060; nothing in this paragraph precludes a correspondence study student, or the parent or guardian of a correspondence study student, from privately obtaining or using textbooks or curriculum material not provided by the school district; (8) provide prospective employees with information relating to the availability and cost of housing in rural areas to which they might be assigned, and, when possible, assist them in locating housing; however, nothing in this paragraph requires a school district to provide teacher housing, whether district owned, leased, rented, or through other means, nor does it require a school board to engage in a subsidy program of any kind regarding teacher housing; (9) train persons required to report under AS 47.17.020, in the recognition and reporting of child abuse, neglect, and sexual 2026-05-11 House Journal Page 2479 abuse of a minor; (10) provide for the development and implementation of a preventive maintenance program for school facilities; in this paragraph, "preventive maintenance" means scheduled maintenance actions that prevent the premature failure or extend the useful life of a facility, or a facility's systems and components, and that are cost-effective on a life-cycle basis; (11) establish procedures for providing the training under AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, 14.30.362, AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures established under this paragraph must include a training schedule that ensures that not less than 50 percent of the total certificated staff employed by the district receive all of the training not less than every two years and that all of the certificated staff employed by the district receive all of the training not less than every four years." Renumber the following bill sections accordingly. Page 14, line 18: Delete "sec. 9" Insert "sec. 11" Page 16, following line 19: Insert new bill sections to read: "* Sec. 18. AS 14 is amended by adding a new chapter to read: Chapter 27. University and School District Employee Health Insurance. Sec. 14.27.010. University and school district employee group health insurance. (a) A school employer may elect to participate in a policy of insurance selected by the commissioner of administration that includes health insurance coverage of school employees. If a school employer makes that election, the commissioner of administration shall select either a policy of group insurance under AS 39.30.090 that covers state employees and school employees, or a policy of self-insurance, provided by the Department of Administration under AS 39.30.091, that provides insurance coverage to state employees and school employees. (b) Subject to (e) of this section, a participating school 2026-05-11 House Journal Page 2480 employer shall contribute to the group health and life benefits fund established under AS 39.30.095 an amount equal to the rate of employer contribution and the rate of employee contribution set by the commissioner of administration under AS 39.30.095. (c) In addition to the contribution required under (b) of this section and the reimbursement required under (d) of this section, a participating school employer shall reimburse the Department of Administration an amount equal to the state's cost, if any, of procuring necessary excess loss insurance in connection with coverage of the school employees under AS 39.30.091. (d) In addition to the contribution required under (b) of this section and the reimbursement required under (c) of this section, a participating school employer shall reimburse the Department of Administration the cost of paying insurance claims for the first four months school employees are covered by a policy of self- insurance under AS 39.30.091. The commissioner of administration shall allow the reimbursement to be made in equal installments over a period not to exceed 10 years from the date the school employer's participation in the policy begins. (e) Subject to AS 23.40.070 - 23.40.260 (Public Employee Relations Act), a participating school employer may require school employees to pay some or all of the school employer's contribution under (b) of this section and reimbursement under (c) and (d) of this section. (f) In this section, (1) "school employee" means a person employed by a municipal school district, a regional educational attendance area, or the University of Alaska; (2) "school employer" means a municipal school district, a regional educational attendance area, or the University of Alaska. * Sec. 19. AS 14.40.170(b) is amended to read: (b) The Board of Regents may (1) adopt reasonable rules, orders, and plans with reasonable penalties for the good government of the university and for the regulation of the Board of Regents; (2) determine and regulate the course of instruction in the university with the advice of the president; (3) set student tuition and fees; (4) receive university receipts and, subject to legislative 2026-05-11 House Journal Page 2481 appropriation, expend university receipts in accordance with AS 37.07 (Executive Budget Act); (5) apply for and use the proceeds of a loan from the Alaska energy efficiency revolving loan fund (AS 18.56.855); (6) establish and maintain participation in an insurance policy that includes health insurance, as authorized under AS 14.27.010, to cover persons employed by the university. * Sec. 20. AS 39.30.090(a) is amended to read: (a) The Department of Administration may obtain a policy or policies of group insurance covering state employees, persons entitled to coverage under AS 14.25.168, 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, employees of other participating governmental units, or persons entitled to coverage under AS 23.15.136, subject to the following conditions: (1) a group insurance policy shall provide one or more of the following benefits: life insurance, accidental death and dismemberment insurance, weekly indemnity insurance, hospital expense insurance, surgical expense insurance, dental expense insurance, audiovisual insurance, or other medical care insurance; (2) each eligible employee of the state or other participating governmental unit and [,] the spouse and the unmarried children chiefly dependent on the eligible employee for support [, AND EACH ELIGIBLE EMPLOYEE OF ANOTHER PARTICIPATING GOVERNMENTAL UNIT] shall be covered by the group policy, unless exempt under regulations adopted by the commissioner of administration; (3) a governmental unit may participate under a group policy if (A) its governing body adopts a resolution authorizing participation and payment of required premiums; (B) a certified copy of the resolution is filed with the Department of Administration; and (C) the commissioner of administration approves the participation in writing; (4) in procuring a policy of group health or group life insurance as provided under this section or excess loss insurance as provided in AS 39.30.091, the Department of Administration shall comply with the dual choice requirements of AS 21.86.310, 2026-05-11 House Journal Page 2482 and shall obtain the insurance policy from an insurer authorized to transact business in the state under AS 21.09, a hospital or medical service corporation authorized to transact business in this state under AS 21.87, or a health maintenance organization authorized to operate in this state under AS 21.86; an excess loss insurance policy may be obtained from a life or health insurer authorized to transact business in this state under AS 21.09 or from a hospital or medical service corporation authorized to transact business in this state under AS 21.87; (5) the Department of Administration shall make available bid specifications for desired insurance benefits or for administration of benefit claims and payments to (A) all insurance carriers authorized to transact business in this state under AS 21.09 and all hospital or medical service corporations authorized to transact business under AS 21.87 who are qualified to provide the desired benefits; and (B) insurance carriers authorized to transact business in this state under AS 21.09, hospital or medical service corporations authorized to transact business under AS 21.87, and third-party administrators licensed to transact business in this state and qualified to provide administrative services; the specifications shall be made available at least once every five years; the lowest responsible bid submitted by an insurance carrier, hospital or medical service corporation, or third-party administrator with adequate servicing facilities shall govern selection of a carrier, hospital or medical service corporation, or third-party administrator under this section or the selection of an insurance carrier or a hospital or medical service corporation to provide excess loss insurance as provided in AS 39.30.091; (6) if the aggregate of dividends payable under the group insurance policy exceeds the governmental unit's share of the premium, the excess shall be applied by the governmental unit for the sole benefit of the employees; (7) a person receiving benefits under AS 14.25.110, AS 22.25, AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in effect under this section at the time of termination of employment with the state or participating governmental unit; (8) a person electing to have insurance under (7) of this subsection shall pay the cost of this insurance; 2026-05-11 House Journal Page 2483 (9) for each permanent part-time employee electing coverage under this section, the state shall contribute one-half the state contribution rate for permanent full-time state employees, and the permanent part-time employee shall contribute the other one-half; (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for that person and eligible dependents under this section; the level of coverage for persons over 65 shall be the same as that available before reaching age 65 except that the benefits payable shall be supplemental to any benefits provided under the federal old age, survivors, and disability insurance program; a person electing to have insurance under this paragraph shall pay the cost of the insurance; the commissioner of administration shall adopt regulations implementing this paragraph; (11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person and eligible dependents under this section; a person who elects insurance under this paragraph shall pay the cost of the insurance premium; the commissioner of administration shall adopt regulations to implement this paragraph; (12) each licensee holding a current operating agreement for a vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that applies to governmental units other than the state. * Sec. 21. AS 39.30.090(b)(2) is amended to read: (2) "governmental unit" means the state, a municipality, a school district, the University of Alaska, or other political subdivision of the state, and the North Pacific Fishery Management Council; * Sec. 22. AS 39.30.090(b) is amended by adding a new paragraph to read: (4) "school district" means a municipal school district or regional educational attendance area. * Sec. 23. AS 39.30.090 is amended by adding a new subsection to read: (c) When the Department of Administration receives a resolution from a governmental unit authorizing participation 2026-05-11 House Journal Page 2484 under a state group insurance policy, before the commissioner of administration approves the participation, the department shall investigate the potential cost of admitting the unit, including whether as a result of admitting the unit the rates of eligible employees will increase or decrease, and provide actuarial analysis to the legislature. * Sec. 24. AS 39.30.091 is amended to read: Sec. 39.30.091. Authorization for self-insurance and excess loss insurance. Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration may provide, by means of self- insurance, one or more of the benefits listed in AS 39.30.090(a)(1) for [STATE] employees eligible under AS 39.30.090(a) [FOR THE BENEFITS BY LAW] or under a collective bargaining agreement and for persons receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall procure any necessary excess loss insurance under AS 39.30.090. * Sec. 25. AS 39.30.091 is amended by adding a new subsection to read: (b) If the department is required by (a) of this section to procure excess loss insurance in connection with coverage of employees who are not state employees, the department may allocate the cost of that insurance across all employers, other than the state, that participate in self-insurance provided by the department under this section." Renumber the following bill sections accordingly. Page 16, following line 25: Insert a new bill section to read: "* Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to read: APPLICABILITY. Sections 2, 6, and 18 - 25 of this Act apply to a contract or collective bargaining agreement that becomes legally binding on or after the effective date of secs. 2, 6, and 18 - 25 of this Act." Renumber the following bill sections accordingly. 2026-05-11 House Journal Page 2485 Page 16, line 29: Delete "sec. 6" Insert "sec. 8" Page 17, line 1: Delete "sec. 6" Insert "sec. 8" Page 17, line 3: Delete "sec. 6" Insert "sec. 8" Page 17, line 6: Delete "sec. 6" Insert "sec. 8" Page 17, line 11: Delete "sec. 7" Insert "sec. 9" Page 17, line 16: Delete "sec. 7" Insert "sec. 9" Page 17, line 17: Delete "sec. 8" Insert "sec. 10" Page 17, line 18: Delete "sec. 14" Insert "sec. 16" Delete "sec. 15" Insert "sec. 17" Page 17, line 21: Delete "sec. 8" Insert "sec. 10" Page 17, line 22: Delete "sec. 14" Insert "sec. 16" 2026-05-11 House Journal Page 2486 Page 17, line 26: Delete "sec. 8" Insert "sec. 10" Page 17, following line 26: Insert new bill sections to read: "* Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: TRANSFER OF SELF-FUNDED INSURANCE RESERVE. Not later than 30 days after enrolling in a health care plan administered by the state under AS 39.30.090 or 39.30.091, a governmental unit that, before the effective date of this section, maintains a self-funded insurance reserve for the purpose of paying employee health insurance claims shall transfer the closing balance of that reserve to the group health and life benefits fund established under AS 39.30.095. An amount transferred under this section by a governmental unit that is a school district shall be applied to offset reimbursement owed by that school district under AS 14.27.010(d), enacted by sec. 18 of this Act. If the amount transferred exceeds the amount necessary to offset the reimbursement owed, the excess shall be applied to reduce the rate of employee contribution set by the commissioner of administration under AS 39.30.095 and required under AS 14.27.010(b). In this section, "governmental unit" has the meaning given in AS 39.30.090(b). * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: REGULATIONS. The commissioner of administration shall adopt regulations necessary to implement the changes made by secs. 2, 6, 18 - 25, 29, and 32 of this Act. The regulations may not take effect before the effective date of the law implemented by the regulation. * Sec. 34. Sections 32 and 33 of this Act take effect immediately under AS 01.10.070(c)." Renumber the following bill sections accordingly. Page 17, line 27: Delete "Sections 10 and 18" Insert "Sections 12 and 28" 2026-05-11 House Journal Page 2487 Page 17, line 29: Delete "sec. 21" Insert "secs. 34 and 35" Representative Vance moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Story objected. Representative Stutes rose to a point of order regarding impugning the motives of others. The Speaker cautioned members to refrain from impugning the motives of others. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 261(FIN) am Second Reading Amendment No. 2 YEAS: 19 NAYS: 21 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Bynum, Costello, Coulombe, Elam, Johnson, Kopp, McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler, Schwanke, St. Clair, Tomaszewski, Underwood, Vance Nays: Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier, Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson, Mears, Mina, Schrage, Stapp, Story, Stutes And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representative Bynum: Page 6, line 25, following "AS 14.17.600;": Insert "or" Page 6, lines 26 - 27: Delete all material. 2026-05-11 House Journal Page 2488 Renumber the following sub-subparagraph accordingly. Page 6, lines 30 - 31: Delete "greater of the ADMs described in (1) or (2) of this subsection by five" Insert "ADM described in (i) of this subparagraph by 2.5" Page 12, lines 11 - 13: Delete all material and insert: "(A) the district's prior three-year average intensive student count, calculated by combining the number of special education students who needed and received intensive services and were enrolled on the last day of the count period conducted under AS 14.17.600(a) in each of the immediately preceding three fiscal years and dividing that sum by three; or" Page 12, line 16, following "AS 14.17.600(a)": Insert ", but only if the number of special education students who needed and received intensive services and were enrolled on the last day of the count period conducted in the current fiscal year under AS 14.17.600(a) exceeds the ADM described in (A) of this paragraph by 2.5 percent or more" Page 12, lines 17 - 20: Delete all material. Page 13, lines 11 - 13: Delete "number of special education students who needed and received intensive services and are enrolled on the last day of the count period, which the department shall use" Insert "intensive student count information the department determines is necessary to calculate a district's intensive services funding under AS 14.17.420. The department shall use the intensive student count information" Page 14, line 25: Delete "Except as provided in (d) of this section, the [THE]" Insert "The" 2026-05-11 House Journal Page 2489 Page 14, line 27: Delete "district's student count data reported in the previous" Insert "[DISTRICT'S STUDENT COUNT] data reported for that" Page 15, lines 6 - 7: Delete "AS 14.17.420(a)(2)(B) or (C) or 14.17.410(b)(1)(A)(iii)" Insert "AS 14.17.410(b)(1)(A)(ii) or 14.17.420(a)(2)(B)" Page 16, line 8, following "AS 14.17.600;": Insert "or" Page 16, lines 9 - 10: Delete all material. Renumber the following paragraph accordingly. Page 16, lines 13 - 14: Delete "greater of the ADMs described in (1) or (2) of this subsection by five" Insert "ADM described in (1) of this subsection by 2.5" Page 17, lines 11 - 15: Delete "year ending June 30, 2027, if student count data is unavailable to calculate the number of special education students who needed and received intensive services and were enrolled on the last day of the count period conducted under AS 14.17.600(a), a district shall use student count data that is applicable to the fiscal year ending June 30, 2026," Insert "years ending June 30, 2027, June 30, 2028, and June 30, 2029, if student count data is unavailable to calculate a district's prior three-year average intensive student count under AS 14.17.420(a)(2)(A), as amended by sec. 7 of this Act, a district shall, for each year of the prior three-year average intensive student count for which data is unavailable, use student count data that is applicable to that year" Representative Bynum moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Story objected.