Legislature(2017 - 2018)BUTROVICH 205

03/02/2017 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SJR 2 CONST AM: APPROPRIATION LIMIT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= SB 48 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Moved SB 26 Out of Committee
        SB 48-INS. FOR DEPENDS. OF DECEASED FIRE/POLICE                                                                     
                                                                                                                                
4:30:03 PM                                                                                                                    
CHAIR DUNLEAVY called  the committee back to  order. He announced                                                               
the  consideration of  SB  48,  and noted  that  the  bill has  a                                                               
committee substitute (CS).                                                                                                      
                                                                                                                                
4:30:11 PM                                                                                                                    
SENATOR  GIESSEL moved  to adopt  the work  draft CS  for SB  48,                                                               
version O.                                                                                                                      
                                                                                                                                
CHAIR DUNLEAVY objected for discussion purposes.                                                                                
                                                                                                                                
4:30:31 PM                                                                                                                    
CHRISTA  MCDONALD, Staff,  Senator  Mike  Dunleavy, Alaska  State                                                               
Legislature,  Juneau, Alaska,  reviewed  the CS  for  SB 48.  She                                                               
summarized the changes from the CS as follows:                                                                                  
                                                                                                                                
   · Changed  the term  "police officer"  to  "peace officer"  in                                                               
     order to  extend the benefits to  probation and correctional                                                               
     officers.                                                                                                                  
   · Consistently uses  the term  "major medical"  throughout the                                                               
     bill's work draft.                                                                                                         
   · Changed  the   annual  deadline  for  the   commissioner  to                                                               
     determine the amount of money  sufficient to pay premiums to                                                               
     December 15.                                                                                                               
   · Eliminates the  gap of coverage by  removing the requirement                                                               
     for  the   surviving  dependent  having  to   apply  to  the                                                               
     commissioner. After the date of  death of a peace officer or                                                               
     firefighter,  the   commissioner  will   have  30   days  to                                                               
     determine continued eligibility.                                                                                           
   · Requires  annual determination  of continued  eligibility by                                                               
     the commissioner.  The commissioner may require  a surviving                                                               
     dependent  to  provide  relevant  information  to  determine                                                               
     continued eligibility.                                                                                                     
   · Clarified  the   term  year-round  by  replacing   it  with,                                                               
     "Fulltime position for which the  state or municipality paid                                                               
    or expected to pay the employee for 12 month each year."                                                                    
   · Established  that  a  surviving spouse  becomes  permanently                                                               
     ineligible for  premium payments upon receiving  10 years of                                                               
     premium  payments,   becoming  eligible  to   receive  major                                                               
     medical insurance, or  by reaching the age  of 65, whichever                                                               
     of those come first.                                                                                                       
   · Removed  the   word  "immediately"   to  clarify   that  the                                                               
     municipality may  elect to  participate in  the fund  at any                                                               
     time.                                                                                                                      
   · Expanded the  definition of  "firefighter" to,  "An employee                                                               
     of  the  state or  municipality  whose  primary duty  is  to                                                               
     perform fire suppression services."                                                                                        
   · Replaced  the  definition of  "police  officer"  with a  new                                                               
     definition for "peace officer."                                                                                            
                                                                                                                                
4:32:37 PM                                                                                                                    
CHAIR DUNLEAVY removed his objection and announced that the CS                                                                  
was adopted without objection.                                                                                                  
                                                                                                                                
SENATOR COGHILL,  sponsor of SB  48, explained  that the CS  is a                                                               
result of  trying to find  ways to  bring the bill  in consistent                                                               
language;  for  example, the  use  of  the terms,  "medical"  and                                                               
"major  medical,"  the  two terms  have  different  meanings.  He                                                               
specified that "major medical" was  coverage without eye care and                                                               
dental care.                                                                                                                    
                                                                                                                                
He  opined  that   the  care  should  be   continuous,  but  with                                                               
limitations. He  said he did  not know if 10-year  eligibility is                                                               
perfect, but determined that the  period is consistent across the                                                               
U.S. as well as  being used in a previous bill.  He added that he                                                               
did not want  the youngsters caught up in  the 10-year limitation                                                               
by  providing  eligibility  until  age  26  or  if  insurance  is                                                               
obtained from a job.                                                                                                            
                                                                                                                                
SENATOR  COGHILL asserted  that  the legislation  allows for  the                                                               
best  way to  provide immediate  care.  He remarked  that he  was                                                               
disturbed when he heard that the  month a trooper died his family                                                               
found out that they were without health insurance.                                                                              
                                                                                                                                
He provided additional details on SB 48 as follows:                                                                             
                                                                                                                                
   · The   presumption  is   coverage  is   provided  until   the                                                               
     commissioner  determines   that  there  is   an  eligibility                                                               
     problem,  an  easier  determination for  a  commissioner  to                                                               
     make.                                                                                                                      
   · Expands  to  correctional  officers because  they  transport                                                               
     dangerous criminals to and from jail.                                                                                      
   · Allows municipalities  to figure out a  way to retroactively                                                               
     pick   up  those   that  previously   had  the   unfortunate                                                               
     circumstances found in the bill.                                                                                           
   · Requires the  commissioner to annually tell  the Legislature                                                               
     what is in the fund.                                                                                                       
   · The fund rolls  over and grows rather than  being swept back                                                               
     into  the  Constitutional  Budget  Reserve  (CBR);  however,                                                               
     appropriation is up to the Legislature.                                                                                    
   · Annual  review  by  the  commissioner  determines  continued                                                               
     eligibility due to marriage, turning  65, or hitting the 10-                                                               
     year mark. The  review by the commissioner is a  way to make                                                               
     sure that there is communication.                                                                                          
   · Changed  eligibility from  year-round  employee to  fulltime                                                               
     employee.  Providing   coverage  for  a  person   that  does                                                               
     dangerous,  fulltime  work  for  5 months  or  8  months  is                                                               
     appropriate.                                                                                                               
                                                                                                                                
He summarized as follows:                                                                                                       
                                                                                                                                
     It's a  little different  approach then what  the other                                                                    
     body is doing,  but I'm trying to  stay independent and                                                                    
     just think through,  "Okay, if I was a mayor  and I had                                                                    
     to  hire  them, how  would  I  deal with  this  thing?"                                                                    
     because what we  are doing is we are  actually paying a                                                                    
     premium for somebody to get  an extended benefit, which                                                                    
     I  think is  entirely appropriate,  but it  should have                                                                    
     some  limitations and  I'm trying  to  decide the  best                                                                    
     limitations that  we can  do and  still make  sure that                                                                    
     people are  being taken care  of well, it's just  a way                                                                    
     to honor people the best way we can.                                                                                       
                                                                                                                                
4:38:44 PM                                                                                                                    
SENATOR GIESSEL noted  that in section 1, page 3,  lines 6-9, the                                                               
sentence says,  "On the  day employee's  death, the  employee was                                                               
employed  by the  state or  a  municipality that  was elected  to                                                               
participate in a permanent fulltime  position for which the state                                                               
or  municipality paid  or expected  to  pay the  employee for  12                                                               
months  each  year." She  asked  if  an  individual worked  in  a                                                               
seasonal position  for only four  months that had  an unfortunate                                                               
loss of life would be eligible.                                                                                                 
                                                                                                                                
SENATOR  COGHILL  clarified  that a  permanent-fulltime  employee                                                               
would be  covered. He noted that  he would verify if  a permanent                                                               
employee that worked seasonally would be covered.                                                                               
                                                                                                                                
SENATOR  WILSON commented  that  he appreciated  the change  from                                                               
"police" to  "peace officer" so  that correctional  and probation                                                               
officers are included.                                                                                                          
                                                                                                                                
SENATOR COGHILL explained that the focus  is on people who are in                                                               
unpredictable and  dangerous circumstances to make  sure families                                                               
are not left  high and dry. He conceded  that fallen firefighters                                                               
or troopers have  other benefits, but health care  was a dramatic                                                               
empty spot. He explained that he  was made aware when the wife of                                                               
a fallen trooper,  constituents of his, was  left languishing. He                                                               
said he  made a commitment  to do whatever  he could to  find the                                                               
best  way to  move forward.  He  explained that  the coverage  is                                                               
outside of  the Public Employee Retirement  System (PERS) because                                                               
the coverage  cannot actuarily work  in Alaska. He said  the good                                                               
news is the state  has too few people, but the  bad news is there                                                               
are people that  need coverage and the state must  make sure they                                                               
are  taken  care of.  He  specified  that  the fund  allows  both                                                               
municipalities and  the state to  add into  the fund that  can be                                                               
drawn out immediately to pay the premiums for health care.                                                                      
                                                                                                                                
4:42:31 PM                                                                                                                    
CHAIR DUNLEAVY opened public testimony for SB 48.                                                                               
                                                                                                                                
4:43:23 PM                                                                                                                    
PAT  HOLMES,  representing  self, Kodiak,  Alaska,  testified  in                                                               
support of  SB 48.  He asked  that Fish  and Game  field-staff be                                                               
considered for coverage as well. He disclosed historical                                                                        
fatality records for Fish and Game field-staff.                                                                                 
                                                                                                                                
4:46:45 PM                                                                                                                    
BRANDY JOHNSON, representing self and family, Fairbanks, Alaska,                                                                
read the following statement in support of SB 48:                                                                               
                                                                                                                                
     I  am testifying  in  support  of SB  48  on behalf  of                                                                    
     myself, my three daughters,  my deceased husband, Scott                                                                    
     Johnson, surviving  families of  past and  future line-                                                                    
     of-duty  state  troopers  as well  as  law  enforcement                                                                    
     officers in the State of Alaska.                                                                                           
                                                                                                                                
     On  May 1,  2014, my  husband, Scott  Johnson and  Gabe                                                                    
     Rich were  murdered while in  the performance  of their                                                                    
     job  in  Tanana, Alaska.  Scott's  job  was that  of  a                                                                    
     sergeant with the Alaska State  Troopers, he had worked                                                                    
     as a  state trooper for over  21 years with a  total of                                                                    
     over  23   years  vested   in  the   public  employee's                                                                    
     retirement system. He could have  retired with 20 years                                                                    
     of  service;  however,  Scott and  I  decided  that  he                                                                    
     should  work  another  5  years  to  gain  the  medical                                                                    
     benefits for  our family  after the  25-year mark  as a                                                                    
     Tier II  employee, it was  while trying to  obtain this                                                                    
     promised  benefit  goal  that Scott  was  ambushed  and                                                                    
     killed.  Scott would  have  retired  this past  October                                                                    
     with  major  medical  benefits   for  himself  and  our                                                                    
     family.                                                                                                                    
                                                                                                                                
     I  had  asked the  state  troopers  assisting me  after                                                                    
     Scott  was  killed  if  my   family  still  had  health                                                                    
     insurance,  I initially  was told  that I  was set  for                                                                    
     life  by  one lieutenant;  however,  that  was not  the                                                                    
     case. I was later told  that my family's benefits would                                                                    
     expire at the end of  the month. I was disappointed and                                                                    
     angry, my choices were to  pay $1,150 per month for the                                                                    
     retirement,  major medical  health care  that he  would                                                                    
     have received  in a  year and  a half at  no cost  as a                                                                    
     retirement   benefit,  or   $1,700  for   full-coverage                                                                    
     [Consolidated   Omnibus   Budget  Reconciliation   Act]                                                                    
     (COBRA). What is frustrating is  the person who shot my                                                                    
     husband  to death  and his  father,  who desecrated  my                                                                    
     husband's  dead body,  while incarcerated  have medical                                                                    
     care available  at no  cost to  them as  their families                                                                    
     also have free  health care. I felt  Scott's last three                                                                    
     years of service were all for nothing.                                                                                     
                                                                                                                                
     Scott always  took his responsibilities  very seriously                                                                    
     to protect  the people of  Alaska. I believed  upon his                                                                    
     death the  state would also take  responsibility to now                                                                    
     take  care  of his  family;  graciously,  the State  of                                                                    
     Alaska has these two and a  half years until the gap in                                                                    
     law could  be resolved. Our  family has paid  the price                                                                    
     for  this   benefit.  We  have   paid  into   the  PERS                                                                    
     retirement system. We have paid  with the endless call-                                                                    
     outs  whether it  be K-9,  [Special Emergency  Reaction                                                                    
     Team]  (SERT), or  one of  the  many other  specialized                                                                    
     emergency responses  Scott was  involved with;  this is                                                                    
     called, "To give of yourself for the sake of others."                                                                      
                                                                                                                                
     I am here today asking for  your support of SB 48; this                                                                    
     bill   is  more   than  what   I  have   advocated  the                                                                    
     Legislature  for as  a health  benefit. SB  48 provides                                                                    
     full-coverage  health  insurance  that  takes  care  of                                                                    
     young  surviving  families  that  need  the  well-child                                                                    
     check-ups. The  retirement health-care  plan was  not a                                                                    
     long-term solution; it was a  band-aide so to say and a                                                                    
     safety net in case of  a major-medical emergency. SB 48                                                                    
     will  ensure that  another  surviving  spouse does  not                                                                    
     have  to experience  what I  have; they  will have  the                                                                    
     assurance that their children will  be taken care of if                                                                    
     there was a health emergency.                                                                                              
                                                                                                                                
     I would like  to state my concern over one  word in the                                                                    
     legislation, the word  is "may" on page 3,  line 27. As                                                                    
     a surviving spouse, I wouldn't  want to hear "may elect                                                                    
     to participate."  I have been  left wondering  about so                                                                    
     much  in  regard  to  life. By  changing  one  word  to                                                                    
     "shall"  would provide  a great  sense of  security and                                                                    
     comfort to past and future surviving spouses.                                                                              
                                                                                                                                
     Thank you for your time  and your consideration of this                                                                    
     important legislation.                                                                                                     
                                                                                                                                
4:50:36 PM                                                                                                                    
SENATOR COGHILL noted that Ms. Johnson had referenced the bill's                                                                
older version prior to the CS.                                                                                                  
                                                                                                                                
SENATOR GIESSEL pointed out that the language Ms. Johnson                                                                       
referenced was on page 4, line 6.                                                                                               
                                                                                                                                
4:51:47 PM                                                                                                                    
DAVID PRUHS, City Council Member, City of Fairbanks, Alaska,                                                                    
testified in support of SB 48. He shared that the City of                                                                       
Fairbanks also had  a tragedy with the passing  of Officer Brandt                                                               
where  his insurance  terminated immediately.  He disclosed  that                                                               
the City  of Fairbanks took it  upon itself to fund  Mr. Brandt's                                                               
family's insurance  for 2016, 2017,  and most likely in  2018. He                                                               
noted that  he did not review  the CS for  SB 48. He said  he was                                                               
concerned about  unfunded mandates to  the City of  Fairbanks and                                                               
possibly for carrying the cost  of insurance to the Brandt family                                                               
through  2038. He  asked  that  he have  an  opportunity to  meet                                                               
privately with Senator Coghill to  find a solution. He added that                                                               
the  City  of  Fairbanks  is  talking  about  having  a  specific                                                               
insurance policy  in its contracts  with police officers  to have                                                               
their  insurance premiums  funded  throughout the  life of  their                                                               
spouses and for children up to the age of 26.                                                                                   
                                                                                                                                
SENATOR  COGHILL  replied  that  SB  48  is  not  a  mandate.  He                                                               
explained that  the bill  has an  opt-in for  municipalities that                                                               
allows for a  retroactive "look back." He detailed  that the fund                                                               
is managed  by the  state, but the  municipalities would  have to                                                               
fund. He suggested that Mr. Pruhs review the bill's CS.                                                                         
                                                                                                                                
4:54:14 PM                                                                                                                    
PAULA JOHNSON,  representing self and family,  Fairbanks, Alaska,                                                               
read the following statement in support of SB 48:                                                                               
                                                                                                                                
     Good afternoon, my name is  Paula Johnson. Scott was my                                                                    
     brother  in-law  for  almost  22  years  until  he  was                                                                    
     murdered in the  line of duty in Tanana,  Alaska on May                                                                    
     1, 2014. Upon  Scott's death, he was past  his 20 years                                                                    
     with the state  and could have retired prior  to May 1,                                                                    
     2014. Prior to  Scott's passing, he stood  in his house                                                                    
     in a personal  conversation and told me  he is choosing                                                                    
     to put the extra five years  in so he could retire with                                                                    
     full  medical benefits  for  his  family. Scott  prided                                                                    
     himself in  taking care  of his  family being  the sole                                                                    
     wage earner so  Brandy could stay home  and raise their                                                                    
     three  girls,  this  was  very  important  to  him  and                                                                    
     Brandy. If  Scott had not died  in the line of  duty on                                                                    
     May  1, 2014,  he would  have already  retired and  his                                                                    
     family would have full medical  benefits. To fund SB 48                                                                    
     is  the right  thing  to  do for  the  family of  slain                                                                    
     officers.                                                                                                                  
                                                                                                                                
4:55:45 PM                                                                                                                    
KATHIE  WASSERMAN, Executive  Director, Alaska  Municipal League,                                                               
Juneau,  Alaska, testified  in support  of  SB 48.  She said  AML                                                               
appreciates that the  bill is not an unfunded  mandate. She noted                                                               
that   many  municipalities   are   behind   in  their   worker's                                                               
compensation bills  and new  bills will simply  not be  paid. She                                                               
opined  that every  municipality seems  to have  had a  police or                                                               
firefighter tragedy,  but have "stepped  up to the plate"  and in                                                               
turn made communities stronger.                                                                                                 
                                                                                                                                
4:57:56 PM                                                                                                                    
SUSAN  HECKS,  Executive   Director,  Southern  Region  Emergency                                                               
Medical  Services Unit  (EMS) Council,  Inc., Division  of Public                                                               
Health,  Alaska   Department  of  Health  and   Social  Services,                                                               
Anchorage, Alaska, testified  in support of SB  48. She explained                                                               
that the  State of Alaska  is divided into seven-EMS  regions and                                                               
the Southern Region  EMS Council is one of the  seven. She stated                                                               
that she was  representing the seven regions. She  added that the                                                               
EMS Regional Coordinators/Directors support SB  48 in addition to                                                               
her  testimony.  She stated  that  she  supported the  definition                                                               
change of "firefighter,"  but remarked that there  was one aspect                                                               
missing  from the  bill regarding  EMS  personnel. She  explained                                                               
that there are  many EMS personnel who are  not firefighters, but                                                               
they  are also  exposed  to the  same  dangerous situations.  She                                                               
asked that EMS personnel be included in SB 48.                                                                                  
                                                                                                                                
5:00:49 PM                                                                                                                    
CHAIR  DUNLEAVY  stated that  he  would  hold  SB 48  for  future                                                               
consideration, and public testimony would remain open.                                                                          

Document Name Date/Time Subjects
SB 48 - DOA Fiscal Note.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
SB 48 - DPS Updated Fiscal Note.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
SB 48 - Letter of Support Teamsters Local 959.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
SB 48 - Brandy Johnson Testimony.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
SJR 2 -Mitchell, Mercatus Testimony.pdf SSTA 3/2/2017 3:30:00 PM
SJR 2
SB 48 - Mayor Matherly Letter of Support.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
CS SB 48, Version O.pdf SSTA 3/2/2017 3:30:00 PM
SB 48
SB 48 - STA CS Summary of Changes.pdf SSTA 3/2/2017 3:30:00 PM
SB 48