ALASKA STATE LEGISLATURE  HOUSE LABOR AND COMMERCE STANDING COMMITTEE  February 2, 2026 3:18 p.m. DRAFT MEMBERS PRESENT Representative Zack Fields, Co-Chair Representative Carolyn Hall, Co-Chair Representative Ashley Carrick Representative Robyn Niayuq Frier Representative Dan Saddler Representative Julie Coulombe Representative David Nelson MEMBERS ABSENT  All members present COMMITTEE CALENDAR  HOUSE BILL NO. 243 "An Act relating to the powers and duties of the Board of Barbers and Hairdressers and the Department of Commerce, Community, and Economic Development; and providing for an effective date." - MOVED HB 243 OUT OF COMMITTEE HOUSE BILL NO. 210 "An Act relating to occupational disability benefits for peace officers and firefighters; and providing for an effective date." - HEARD & HELD PREVIOUS COMMITTEE ACTION  BILL: HB 243 SHORT TITLE: BARBER, HAIRDRESSER, ESTHETICS LICENSING SPONSOR(s): REPRESENTATIVE(s) CARRICK BY REQUEST 01/20/26 (H) PREFILE RELEASED 1/9/26 01/20/26 (H) READ THE FIRST TIME - REFERRALS 01/20/26 (H) L&C 01/26/26 (H) L&C AT 3:15 PM BARNES 124 01/26/26 (H) Heard & Held 01/26/26 (H) MINUTE(L&C) 02/02/26 (H) L&C AT 3:15 PM BARNES 124 BILL: HB 210 SHORT TITLE: PEACE OFFICERS/FIREFIGHTERS: DISABILITY SPONSOR(s): REPRESENTATIVE(s) KOPP 04/30/25 (H) READ THE FIRST TIME - REFERRALS 04/30/25 (H) L&C, FIN 05/16/25 (H) L&C AT 3:15 PM BARNES 124 05/16/25 (H) 02/02/26 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER  REPRESENTATIVE CHUCK KOPP Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented and answered questions about HB 210. JULIA O'CONNOR, Staff Representative Chuck Kopp Alaska State Legislature Juneau, Alaska POSITION STATEMENT: On behalf of prime sponsor, Representative Kopp, described and answered questions about HB 210. SERGEANT DARRELL EVANS, President Anchorage Police Department Employees Association Anchorage, Alaska POSITION STATEMENT: Gave invited testimony in support of HB 210. SEAN CASE, Chief of Police Anchorage Police Department Municipality of Anchorage Anchorage, Alaska POSITION STATEMENT: Gave invited testimony in support of HB 210. BRANDON ROOMSBURG, Retirement Manager Division of Retirement and Benefits Department of Administration Juneau, Alaska POSITION STATEMENT: Answered questions related to HB 210. ACTION NARRATIVE 3:18:35 PM CO-CHAIR HALL called the House Labor and Commerce Standing Committee meeting to order at 3:18 p.m. Representatives Fields, Hall, Carrick, Frier, Coulombe, Saddler, and Nelson were present at the call to order. HB 243-BARBER, HAIRDRESSER, ESTHETICS LICENSING  3:19:27 PM CO-CHAIR CAROLYN HALL announced that the first order of business would be HOUSE BILL NO. 243, "An Act relating to the powers and duties of the Board of Barbers and Hairdressers and the Department of Commerce, Community, and Economic Development; and providing for an effective date." 3:19:55 PM REPRESENTATIVE CARRICK, as prime sponsor, reintroduced HB 243. She said that the proposed legislation would provide statutory authorization that the Board of Barbers & Hairdressers may delegate licensing authority to the Alaska Division of Corporations, Business, and Professional Licensing. She said that this legislation comes at the request of the chair of the Board of Barbers and Hairdressers. 3:20:35 PM CO-CHAIR HALL opened public testimony on HB 243. After ascertaining that nobody wished to testify, she closed public testimony. 3:21:12 PM CO-CHAIR FIELDS moved to report HB 243 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 243 was reported out of the House Labor and Commerce Standing Committee. 3:21:43 PM The committee took an at-ease from 3:21 p.m. to 3:24 p.m. HB 210-PEACE OFFICERS/FIREFIGHTERS: DISABILITY  3:24:31 PM CO-CHAIR HALL announced that the final order of business would be HOUSE BILL NO. 210, "An Act relating to occupational disability benefits for peace officers and firefighters; and providing for an effective date." 3:25:03 PM REPRESENTATIVE CHUCK KOPP, Alaska State Legislature, as prime sponsor of HB 210 said that before serving in the legislature, he spent his career serving in Alaska as a police officer and a police chief, working "shoulder to shoulder" with firefighters and emergency medical technicians (EMTs). He said that during this time, he worked with fire crews, dealt with incidents, buried friends, and sat with families whose lives were forever changed by a duty-related injury. REPRESENTATIVE KOPP explained that this gets into why the proposed legislation matters: line-of-duty injuries are not hypothetical, they happen. They could happen at a traffic stop, domestic violence call, structure fire, vehicle extrication, and multiple other areas. All these things can cause serious injuries. He said that police and firefighters both know that risk is part of the job, and the bill recognizes that they should not accept financial ruin as part of the risk. REPRESENTATIVE KOPP explained that under current Alaska law, a permanently disabled police officer or firefighter would receive 40 percent of gross pay. He said that this is a 60 percent pay cut overnight. This often occurs when there is no ability to work elsewhere. He said that this can be devastating for families already faced with a high cost of living. Occupational disability is supposed to be a safety net, not a trapdoor. He said that 40 percent of income does not sustain expenses such as mortgage, medical travel, housing, or family obligations. He said that current structure sends a message that "you're on your own." This is not the message that should be sent to men and women who "run toward danger." REPRESENTATIVE KOPP said that HB 210 would fix a one-time, well- defined problem. After the first 12 months of occupational disability, benefits would increase from 40 percent to 75 percent of gross pay for police officers and firefighters. He said that one would not need to requalify every year to show that they are in fact disabled and unable to return to work. He said that it does not create a windfall and does not expand benefits beyond public safety. He said that the proposed legislation would not add health benefits but would restore a livable income following a career ending injury. REPRESENTATIVE KOPP said that these types of assurances are directly related to recruitment and retention issues with first responders. He said that someone asking questions such as what would happen if they got hurt, what would happen to their family, and why Alaska offers less protection than other states may opt for work in other states. He explained that some other states offer upwards of 75 percent pay for occupational disability and Alaska is losing experienced individuals to better systems. REPRESENTATIVE KOPP said that he looks at this as a moral obligation and public safety was not better but different. He noted that officers and firefighters cannot refuse a dangerous call. They cannot choose the conditions - fire behavior or other hazards - and the risk is inherent. He said that HB 210 would not elevate them but ensure that they are not abandoned. He said that the proposal is fiscally responsible and the occupational disability trust funds are strongly overfunded. He said that the bill is a predictable adjustment and not an open- ended liability. From an operational standpoint, the cost of vacancies, overtime, burnout, and turnover is far greater than the cost of implementing this measure. REPRESENTATIVE KOPP concluded that the bill is about trust: trust between the state and the officers and firefighters who protect Alaska communities, and trust that officers and their families will not face financial ruin in the event of a career ending injury. He said the message is clear: "You protect Alaska and Alaska will protect you." 3:30:55 PM JULIA O'CONNOR, Staff, Representative Chuck Kopp, Alaska State Legislature, on behalf of Representative Kopp, prime sponsor of HB 210, said the proposed bill would change Alaska's occupational disability benefit for peace officers and firefighters who are permanently injured in the line of duty. She said this would ensure that public safety personnel that are injured are not pushed into poverty and would not lose retirement security. Under the current Public Employees' Retirement System (PERS) and Teachers' Retirement System (TRS) disability coverage varies by tier. Defined contribution members, PERS Tier IV and TRS Tier III, are only eligible for occupational disability benefits and do not receive non- occupational disability or healthcare coverage during their disability period. She said HB 210 would work within this existing framework to improve the benefit level for the limited group that the system already serves. MS. O'CONNOR echoed the comments of the bill sponsor by stating that under current law, a permanently disabled peace officer or firefighter receives just 40 percent of their gross salary at the time of separation. For families already dealing with medical and recovery costs, this income reduction creates real financial pressure and does not reflect the higher risk nature of the job. She said that HB 210 would increase occupational disability for all public safety servants and all PERS tiers from 40 to 75 percent of salary after the first 12 months of disability. This change would allow a realistic chance at basic living after a career ending injury. She explained that a firefighter earning $6,000 who became permanently disabled would receive around $25,000 in additional annual support. She said that this amount can make a meaningful difference in household stability. MS. O'CONNOR explained that HB 210 would be a responsible targeted improvement that addresses a gap for public safety workers. She acknowledged that it would not solve every problem in Alaska's retirement system but would address a clear inequity using resources that already exist. She said this is a workforce stability bill. 3:33:58 PM SERGEANT DARRELL EVANS, President, Anchorage Police Department Employees Association (APDEA), gave invited testimony in support of HB 210. He said that he was also a police officer with over 30 years of experience in Alaska. He said that Alaska presents unique and dangerous challenges which include cold temperatures, hazardous driving conditions, unpredictable and dangerous animals, and dangerous waterways. He said that all these are added to pre-existing dangers in law enforcement. He said that in over 30 years as a police officer, he has suffered several injuries, but none have left him permanently disabled from work. He said he has worked with others who were not as lucky. Some were involved in car crashes, shot, or experienced other injuries. He said that for those officers who had to leave their profession earlier than planned, he thanked Representative Kopp for these considerations. He said the bill would honor the sacrifices made by police officers and firefighters and show that the State of Alaska would stand behind men and women when they need it most. 3:37:02 PM SEAN CASE, Chief of Police, Anchorage Police Department, Municipality of Anchorage, gave invited testimony in support of HB 210. The proposed legislation would recognize the unique risks and sacrifices made by Alaska's first responders. Everyday Alaska's firefighters and police officers face threats while in service to the state's communities. He said that when a public safety officer becomes injured, their ability to support their families should not be compromised. He said that the current 40 percent structure puts financial hardship on families. He said that the proposed bill would correct this inequity and make a sustainable level of support for career ending injuries. He said that it would help with recruitment and retention as well. He said that HB 210 sends a clear message that Alaska would stand behind those who serve and will not abandon them if they are injured. In conclusion, he emphasized that the bill is not about numbers but about values; it would ensure that first responders and families are not left behind. 3:39:25 PM CO-CHAIR FIELDS asked about current vacancy rates with the Anchorage Police Department. CHIEF CASE responded that current vacancy rates were about 36 percent and there were an additional 48 officers in training. He said that after this training, most funded positions would be filled. 3:40:13 PM REPRESENTATIVE CARRICK noted that there is an indeterminate fiscal note associated with the proposed bill. She asked whether pay adjustments would be retroactive for peace officers already injured on the job and whether there was a sense of how many people would receive coverage. REPRESENTATIVE KOPP responded that the legislature could structure it retroactively. He said that given discussions with the Department of Public Safety (DPS) and leaders around the state, there was a handful of people that were currently in a career ending status. He said that disabilities can also be work related due to chemical exposure, he said this was especially true with firefighting. He noted that a career ending injury can happen for a few reasons. He thought that the Division of Retirement and Benefits (DRB) could say exactly how many individuals in Alaska are on permanent disability status. REPRESENTATIVE CARRICK asked Representative Kopp whether the bill would include correctional officers. REPRESENTATIVE KOPP responded that he did not believe that it would; however, he allowed that he could be mistaken and said he could follow up with a response. 3:42:56 PM REPRESENTATIVE SADDLER commented that there are a lot of intricacies about disability and retirement benefits, the tiers, circumstances, and more. He said that it would take time to understand the mechanics. He asked whether this was for firefighters or police officers who permanently end their career or whether support was temporary, or both. REPRESENTATIVE KOPP responded that the determination for occupational disability is made from an annual medical review. He said that someone with a permanent disability would require a medical panel evaluation annually to requalify for benefits. REPRESENTATIVE SADDLER said that he was trying to look at what percentage of people who go on disability can return to work. He said that some of the background and support testimony had suggested that people would want disability coverage for non- work-related injuries, he asked whether this was considered. REPRESENTATIVE KOPP responded that when the State of Alaska went from the legacy retirement tiers to defined contribution, it dropped all the nonoccupational disability and healthcare. He said that it was unfortunate because 85 percent of career ending injuries happen off duty. He said that the proposed bill does not touch on this topic; it would stay with the plan related to work related injuries. He said that there are plenty of people who would like this coverage, but it falls outside the scope of the bill. REPRESENTATIVE SADDLER asked whether Representative Kopp had any intention of adding any amendments that would support wider coverage. REPRESENTATIVE KOPP responded that his intention was to maintain the current bill structure. REPRESENTATIVE SADDLER, looking at some of the details of the program, observed that for somebody who is on disability year- to-year, under the 40 percent calculation, their families and dependents, depending on age, would still receive full medical coverage at the 40 percent rate. He asked if this was correct. REPRESENTATIVE KOPP clarified that Representative Saddler was referring to line-of-duty deaths. He explained that line-of- duty deaths by executive order extend benefits of the state to cover uninsured families and possibly education benefits as well. He explained that there was a federal program for firefighters and police officers who die in the line-of-duty, but it was related to life insurance. 3:47:43 PM REPRESENTATIVE COULOMBE said that she was trying to determine the mechanics of the bill. She said if the factor increased to 75 percent, then it would fall on the state. She asked if this was the right assumption. REPRESENTATIVE KOPP responded that it ties into the disability trust and it is a separate fund that is responsible for paying disability payments. He reiterated that the trust is significantly overfunded. He said that given the overfunding and the limited nature of career ending injuries it was not a financial point of concern. He affirmed that the trust was "under the umbrella" of the retirement system. REPRESENTATIVE COULOMBE asked how the trust is funded and where the money comes from. REPRESENTATIVE KOPP responded that it comes from monthly payments from the employer and employee contributions. He said that there is a disability payment and it is funded monthly. REPRESENTATIVE COULOMBE said that her understanding was that it was overfunded and asked whether it was just the health portion. REPRESENTATIVE KOPP responded that the disability trust was also overfunded. REPRESENTATIVE COULOMBE asked if he understood how much the overfunding was. 3:49:28 PM MS. O'CONNOR commented that the PERS Tier IV disability trust fund is 399 percent funded and the TRS [Tier III] is 5,172 percent funded. 3:49:45 PM REPRESENTATIVE COULOMBE said that she did not know how overfunded it was and whether it would reverse. But it sounds as if there would not be many people covered by the bill. REPRESENTATIVE KOPP said that the bill would thankfully apply to a small portion of people, and it is not anticipated that this change would have considerable impact on the fund. 3:50:38 PM BRANDON ROOMSBURG, Retirement Manager, Division of Retirement and Benefits, Department of Administration, said that he would need to follow-up with the committee given the health of the funds. 3:51:02 PM REPRESENTATIVE COULOMBE said that she often hears that Alaska loses police officers and firefighters to Washington. She asked if the 40 percent coverage was low and whether there was context to how other states manage disability benefits. REPRESENTATIVE KOPP responded that this bill is not about retirement system, just about disability benefits. He said that the retirement system is what it is; the bill is about a small thing that the state can do to demonstrate an investment in people. He said that information pertaining to occupational benefits could be found in the committee file. He remarked that most states are between 50 to 75 percent. 3:52:28 PM CO-CHAIR FIELDS said that he had a similar question, mainly who would be an actuary who monitors the occupational disability fund, who could speak to why this would be sustainable. He wanted to hear it on the record. 3:52:56 PM REPRESENTATIVE SADDLER asked for clarification of the percentage of overfunding associated with the funds. MS. O'CONNOR reiterated that this is for the defined contribution retirement disability trust. She noted that provided in the committee file is an Alaska Retirement Management Board ("ARM Board") resolution that has information about the occupational disability background. REPRESENTATIVE SADDLER said that he understood the percentages but was interested in the total balance, or raw numbers. MS. O'CONNOR responded that she did not know but was happy to follow up with the numbers. 3:54:23 PM REPRESENTATIVE COULOMBE asked whether emergency medical service (EMS) workers were included in the proposed legislation. REPRESENTATIVE KOPP responded that EMS workers would only be covered if they were classified as a local government PERS public safety employee. He noted that many EMS workers are employed outside of this context. 3:54:52 PM REPRESENTATIVE SADDLER said that looking at information from the Division of Retirement and Benefits, it suggested that PERS occupational benefits were not taxable if the benefit was calculated at 40 percent and asked whether an increase would generate a tax burden. REPRESENTATIVE KOPP responded that he was not sure what the specific Internal Revenue Service (IRS) rules were. He said that he was certain there is a rule on disability benefits. He said that during the bill presentation, the amount that would come in would be based on a $6,000 a month figure. He said it would be a $2,500 to $4,500 a month coverage. He thought it would be a 15 percent tax bracket but if married and having other factors, it likely would not be a lot of a tax burden. REPRESENTATIVE SADDLER asked if $72,000 was an average wage for fire fighters and police officers and how the figure was calculated. REPRESENTATIVE KOPP responded that the $72,000 figure was an example. He said that fire fighters and police officers in Alaska have a significant salary range depending on the employer and work location. He said that a starting officer salary can be $50,000 and earnings for others could reach over $100,000. He said that $6,000 a month is a good average estimate and illustrates how it would impact the disability benefit. 3:57:13 PM REPRESENTATIVE CARRICK appreciated the list included in the committee file that compared Alaska's occupational disability benefits to other states. She was wondering why a 75 percent figure was chosen given the variance of other plans. She noted that there was plenty of fund capital to support the 75 percent figure but asked how the figure was determined. REPRESENTATIVE KOPP responded that looking at the age of those plans and how long ago the rates were set, it may not have accounted for inflation and higher living costs. He said there was no magic to it, but it was a rate that took into consideration Alaska's higher cost of living. REPRESENTATIVE CARRICK said that it would be great to see Washington's rates since as Representative Coulombe had mentioned, Alaska often loses members of its workforce to it. REPRESENTATIVE KOPP said that he could follow up with a concise answer. 3:58:55 PM REPRESENTATIVE SADDLER said that the systems are complicated and he looked forward to digging into it. He noted that a document included in the committee packet suggested that a spouse or dependent was qualified for healthcare benefits at no cost if someone was on disability benefits. He asked whether he understood this correctly. REPRESENTATIVE KOPP responded that the medical coverage is if someone was hurt on duty and it does not apply if it is a non- occupational disability. He said that the bill does not touch on this. 3:59:33 PM MS. O'CONNOR added that defined benefit retirement systems do have healthcare provided. She clarified that defined contribution plans do not have healthcare provided. REPRESENTATIVE KOPP noted that most employees were in defined contribution plans. REPRESENTATIVE SADDLER responded that there are nuances that he needed to understand. 4:00:17 PM CO-CHAIR HALL announced that HB 210 was held over. 4:00:32 PM ADJOURNMENT  There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:00 p.m.