Legislature(2017 - 2018)SENATE FINANCE 532
04/05/2017 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| 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 |
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.
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 |