Legislature(2017 - 2018)SENATE FINANCE 532
04/05/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB48 | |
| HB23 | |
| Public Testimony | |
| SB48 || HB23 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 48 | TELECONFERENCED | |
| += | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
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.
| 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 |