Legislature(2017 - 2018)BUTROVICH 205
02/14/2017 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB48 | |
| SJR2 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 48 | TELECONFERENCED | |
| *+ | SJR 2 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 48-INSURANCE FOR DEPENDENTS OF DECEASED FIRE/POLICE
3:31:22 PM
CHAIR DUNLEAVY announced the consideration of SB 48.
3:31:42 PM
SENATOR JOHN COGHILL, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 48, provided an overview of SB 48 as follows:
SB 48 is an answer to a problem that has been in the
building for some time and that is how to get
insurance benefits for survivors of police officers
and firefighters. Hearing those horrible times when
through no fault of their own, somebody is killed in
the line of action; there was a couple of different
ways to look at it, what we chose to do was to follow
the lead of the administration and try to figure out a
way to establish a fund that could be used by the
Department of Public Safety to take care of state
employees through that funding process.
So you will see in here the rules how that fund would
work and what the qualifications are. Currently the
surviving [beneficiaries lose services] immediately;
well, that's just not acceptable. Not only do you have
a devastating loss in your life, but also you find
yourself in this real awkward spot of asking for
something that you should be a natural matter of
course.
So this legislation has been a topic of some
conversation for the last year and certainly I felt
the pressure for it, the need for it, and the politics
of it quite frankly during the campaign season; but, I
made a commitment that if there's an answer we should
find it and this is the answer, the solution that
we've come up with that would continue medical
insurance coverage for the spouse and dependents, and
it gives some of the qualification timelines for that.
3:33:59 PM
JORDAN SHILLING, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, provided a sectional analysis of SB
48, Version J, as follows:
Section 1
Sec. 39.60.010 - Police officer and firefighter
survivors' fund established:
The police officer and firefighter survivors'
fund is established for the purpose of paying
medical insurance premiums for an eligible
surviving spouse or dependent child of a police
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 medical
insurance premiums for eligible surviving
dependents.
Sec. 39.60.040 - Eligibility of surviving dependents
of police officers and firefighters for medical
insurance premiums:
A surviving dependent may apply to the
commissioner for payment of medical insurance
premiums. The commissioner will make a
determination of eligibility within 30 days of
receiving the application.
A surviving dependent is eligible if:
· At the time of death, the police officer or
firefighter was a year-round, permanent
full-time employee of the state or
municipality that has opted into this fund;
· At the time of death, the surviving
dependent was receiving employer-sponsored
medical insurance benefits;
· The proximate cause of the employee's death
is a bodily injury sustained or a hazard
undergone while in the performance and
within the scope of the employee's duties;
and
· The injury or hazard is not the proximate
result of willful negligence by the
employee.
A surviving spouse becomes ineligible upon
becoming eligible to receive major medical
insurance coverage by other means, or reaches 65
years of age - whichever comes first.
A surviving dependent child becomes ineligible
upon becoming eligible to receive 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 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
police 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 police
officers and firefighters:
A surviving dependent of a police officer or
firefighter who was employed by a municipality
may be eligible for payment if immediately after
the time of death the municipality elects to
participate in the fund, and, at the time of
death, the police officer or firefighter was
receiving employer-sponsored medical insurance.
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",
"police 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.
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.
3:41:23 PM
SENATOR WILSON addressed volunteer firefighters and asked if
municipalities will be able to contribute into the proposed
fund.
MR. SHILLING replied as follows:
When you look at the definition of "firefighter" and
"police officer," under the bill as written now if the
individual that you are referring to is an employee of
the state or is an employee of a municipality that has
chosen to opt in and they are eligible under the other
provisions in the bill then yes, my guess is they
would be eligible for a benefit.
SENATOR WILSON noted page 4, line 15 in the bill as follows:
At the time of death, the police officer or
firefighter was eligible for and receiving employer-
sponsored medical insurance.
He opined that since the firefighters are volunteers they would
not receive the benefit.
MR. SHILLING asked Senator Wilson if the volunteers that he is
referencing are employees of a municipality.
SENATOR WILSON explained that the individuals are volunteers and
do not receive the full benefits of their fulltime counterparts.
MR. SHILLING explained that the bill as designed is for state
and municipal employees that are fulltime, permanent, and work
year-round.
SENATOR WILSON commented that volunteer firefighters risk their
lives just as much as a fulltime employee.
3:44:12 PM
SENATOR COGHILL stated that his office will find out what is
currently available to volunteers and the possibilities for
coverage under the proposed fund.
CHAIR DUNLEAVY opined that volunteer firemen would not qualify
under the bill as currently written if the volunteers are not
employees or employed by a municipality.
MR. SHILLING answered correct.
CHAIR DUNLEAVY asked what the practice has been since statehood
when a police officer or firefighters dies in the line of
service. He inquired if something has happened where benefits
have been diminished.
MR. SHILLING stated that there is currently a benefit provided,
but not for medical insurance premiums which is what SB 48
envisions. He opined that recent deaths may be the reason why
the issue has been brought forward. He recommended that the
Department of Law also address Chair Dunleavy's question.
3:46:54 PM
JOAN WILKERSON, Assistant Attorney General, Alaska Department of
Law, Juneau, Alaska, responded that the survivor-health benefits
has been afforded before. She noted that the benefit is
exclusively available to families of Tier I employees.
CHAIR DUNLEAVY asked Ms. Wilkerson to address the recent issue
for the survivors' health benefits.
MS. WILKERSON stated that there is a void that needs to be
filled.
CHAIR DUNLEAVY asked Mr. Shilling to address how the fund is
funded.
3:49:30 PM
MR. SHILLING specified that on page 2, line 1, two separate
accounts are created where one is for the purpose of paying
benefits to state-employee survivors and the other is to pay
benefits to municipal-employee survivors. He detailed that
appropriations can be made into both accounts by the Legislature
as well as donations. He pointed out that the unique one is
under the municipal employee-survivor account where
municipalities, if opted in, can contribute money into the
account for the purposes of paying the benefit to eligible
dependents.
CHAIR DUNLEAVY noted that the language says the state or
municipality "may appropriate" and interpreted the wording as
meaning the state or municipality does not have to appropriate.
MR. SHILLING answered correct. He said the use of the word "may"
is pervasive throughout the bill and that is to ensure that
nothing is being done that creates a dedicated fund. He pointed
out that the money can be reappropriated by a future
legislature.
CHAIR DUNLEAVY asked what the estimated amount is to start the
fund.
MR. SHILLING replied that $70,000 is currently required for 3-
dependent families.
3:51:00 PM
At ease.
3:51:44 PM
CHAIR DUNLEAVY called the committee back to order. He asked Mr.
Shilling to readdress the fund's initial budget amount.
MR. SHILLING specified that the $70,116 fiscal note is split
among 3-dependent surviving families.
CHAIR DUNLEAVY asked if new funding would have to be
appropriated for future survivor-health benefits.
SENATOR COGHILL detailed that the commissioner will have to make
an assessment on an annual basis to make an adjustment for an
appropriation. He noted that Chair Dunleavy's question hit upon
one of the reasons why the bill in going with a fund approach
rather than an actuarial approach.
MR. SHILLING added that the Legislature could put in additional
money that was necessary for a fiscal year to front-load the
fund in order to accommodate for an untimely death.
CHAIR DUNLEAVY asked how the fund will be managed out of the
commissioner's office or the Department of Revenue.
MR. SHILLING replied that the bill has the Department of Public
Safety's commissioner managing the fund, but doing so in
cooperation with the Department of Administration.
SENATOR WILSON asked if consideration has been given to manage
the fund with a bit more oversite than just one individual.
3:54:39 PM
MR. SHILLING answered that the sponsor's office has talked about
what Senator Wilson addressed. He noted that the Senate State
Affairs Committee can add more oversite.
SENATOR WILSON addressed the "police" definition in the bill and
asked if Village Safety Police Officers (VPSOs) are also
covered.
MR. SHILLING answered no. He detailed that VPSOs are not
employees of the state. He added that VPSOs are not covered
under the state's Public Employees' Retirement System (PERS). He
noted that VPSOs have not been covered under previous iterations
of the bill as well.
CHAIR DUNLEAVY asked Mr. Shilling why the bill's approach is the
way to go. He noted that other ways are possible, including a
life-insurance policy approach.
MR. SHILLING disclosed that the approach originated from one of
the administration's working groups over the interim. He pointed
out that there were some issues with past approaches that
amended the PERS program. He set forth that the case-by-case
approach in the bill allows for more flexibility, allows the
Legislature to have more control, and provides more flexibility
to the municipalities who have the option of opting in.
3:56:49 PM
SENATOR COGHILL added that the approach in the bill is a
premium-payment method. He said the intent is not to be the
insurer, but to quickly get the survivors insurance. He set
forth that the flexibility provides for as immediate action as
possible. He admitted that one of the saddest things that his
office found out from the recent tragedies was that the
insurance stopped as soon as the deaths were certified and that
is why flexibility is needed at the commissioner's office to get
the premium in as soon as practical. He summarized that the
methodology in the bill is more nimble, but an annual
appropriation will be required.
CHAIR DUNLEAVY asked if the annual appropriation can vary
depending upon the unfortunate situation of having families in
need of insurance. He added that the appropriation could rise or
fall based on the number of dependents in a family as well.
MR. SHILLING answered yes.
3:58:15 PM
At ease.
3:58:43 PM
CHAIR DUNLEAVY called the committee back to order. He announced
that SB 48 will be set aside with notice for public testimony
for the committee's next meeting.
SENATOR COGHILL added that testimony from the Department of
Public Safety will be included in the next meeting as well. He
said he noticed a couple of places in the bill where changes
could be made to make the legislation better.
3:59:35 PM
CHAIR DUNLEAVY announced he would hold SB 48 in committee for
future consideration.