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." 1:02:45 PM Vice-Chair Bishop MOVED to ADOPT the proposed committee substitute for CSHB 23(FIN)am, Work Draft 30-LS0258\N (Wayne, 4/14/17). Co-Chair MacKinnon OBJECTED for DISCUSSION. 1:03:01 PM JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, looked at the "Overview" (copy on file): Overview: SCS HB 23 (FIN) creates the peace officer and firefighter survivors' fund to pay medical insurance premiums to continue health insurance coverage for an eligible surviving spouse or dependent child of a peace officer or firefighter killed in the line of duty. The benefit is only available to a surviving dependent of a permanent, full-time employee who was covered by employer-sponsored medical insurance at the time of death. The premium payments will allow surviving dependents to remain in their current health plan and are paid to the applicable employer medical insurance provider. The state is required to pay the benefit for state employees; a municipality may elect to participate by entering into an agreement with the state to pay the cost of the program for its recipients. By December 1, the commissioner of public safety will determine the amount needed to pay the premiums and associated administrative costs. Once appropriated, funds do not lapse and can be spent without further appropriation. A surviving dependent is "presumed eligible" for 60 days after the death of the peace officer or firefighter, to allow time for the dependent to get documents together and apply for the benefit. Within 30 days of the application, the commissioner shall determine eligibility; which is reconfirmed annually. Surviving spouses are eligible to receive the benefit for 10 years, until eligible to receive other major medical coverage, or until eligible for Medicare. If a surviving spouse is the parent of an eligible child, the spouse can continue to receive the benefit until the child is no longer eligible. Except for a child who is totally and permanently disabled, a surviving child is eligible to receive the benefit until eligible to receive other major medical coverage or age 26. Surviving dependents who become ineligible due to receiving other major medical coverage can reapply for benefits if that coverage is lost. The definition of "peace officer" is identical to the definition in CS SB 48 (STA). The fund is eligible for donations through "Pick, Click, Give." Ms. Lucky also looked at the "Major Policy Differences" (copy on file), which talked about the differences between the versions of the bills. Co-Chair MacKinnon stressed that she hoped that the bill was a collaboration of efforts between the entire legislature and public. 1:09:46 PM SENATOR JOHN COGHILL, SPONSOR, remarked that the ten-year limit was an important addition. He also stated that the medical coverage death benefit was appropriate. He felt that the "sticking point" would be the municipal opt-in. He encouraged the committee to include that opt-in. Co-Chair MacKinnon wondered whether Senator Coghill was in opposition to the committee substitute. Senator Coghill replied that he would approve the committee substitute. Co-Chair MacKinnon queried comments from Representative Josephson's staff. 1:11:17 PM LISA WEISSLER, STAFF, REPRESENTATIVE ANDY JOSEPHSON, expressed appreciation on the work on the bill. She stated that Representative Josephson supported requiring municipalities to provide coverage to their employees. He supported all the other provisions. Senator Olson queried the seriousness of the opt-in issue. Ms. Weissler replied that Representative Josephson would discuss the issue with the members of the House. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO further OBJECTION, the proposed committee substitute was adopted. Vice-Chair Bishop MOVED to ADOPT Amendment 1 (copy on file): Page 3, line 6: Delete "spouse" Insert "dependent" Page 3, line 7, following "(c)(2)": Insert "or (d)(1)" Co-Chair MacKinnon OBJECTED for DISCUSSION. Ms. Lucky explained the amendment. Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO further OBJECTION, Amendment 1 was adopted. 1:14:57 PM SYLVAN ROBB, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained the fiscal note. Co-Chair MacKinnon wondered whether the $70,100 would continue through FY 23 with an estimated cost of coverage of $70,100 per year. Ms. Robb replied in the affirmative. 1:17:48 PM KELLY HOWELL DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY, explained the fiscal note. Co-Chair MacKinnon wondered whether there was someone to discuss the Department of Administration (DOA) fiscal note. Senator Hughes asked whether the medical insurance premiums would remain flat. Ms. Howell replied that the language required that the commissioner determine the amount of funding available. She stated that they would monitor a possible increase, and factor those costs into any future budget requests. She stated that the current amount was the only known amount. 1:20:22 PM MICHELE MICHAUD, CHIEF HEALTH OFFICIAL, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, explained that it was a zero fiscal note. There was only one change in the narrative as related to the community opt-in. 1:20:50 PM AT EASE 1:22:58 PM RECONVENED 1:23:15 PM Vice-Chair Bishop MOVED to ADOPT Conceptual Amendment 2 (copy on file): The intent ofthis amendment is to allow all dependents, not just a spouse, the opportunity to reapply for benefits if they become ineligible due to being eligible for other insurance then subsequently lose that insurance. Page 3, line 31, following "becomes" DELETE "permanently" Co-Chair MacKinnon OBJECTED for DISCUSSION. Ms. Lucky explained the amendment. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO OBJECTION, it was so ordered. here being NO OBJECTION, it was so ordered. Vice-Chair Bishop MOVED to REPORT SCS CSHB 23(FIN) out of committee with individual recommendations and attached fiscal notes. Senator Micciche OBJECTED. He wondered whether there was a definition of "dependence" that covered unborn dependents. Co-Chair MacKinnon replied in the negative. She stated that the department would include that definition in regulation. Senator Micciche WITHDREW the OBJECTION. There being NO further OBJECTION, the bill moved from committee. SCS CSHB 23(FIN) was REPORTED out of committee with a "do pass" recommendation and with a new zero fiscal note from the Department of Administration, a new fiscal note from the Governor's Office, and a previously published zero fiscal note: FN 2(DPS). 1:26:04 PM AT EASE 1:27:03 PM RECONVENED