HB 29 — An Act relating to group insurance coverage and self-insurance coverage for school district employees, employees of the University of Alaska, and employees of other governmental units in the state; and providing for an effective date.

34-LS0315\I34-LS0315\A SPONSOR SUBSTITUTE FOR HOUSE BILL NO.

29 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY REPRESENTATIVES VANCE, Underwood, Costello,Costello Schwanke Introduced:

4/30/251/22/25 Referred:

HB0029bHB0029a -1- SSHBHB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I34-LS0315\A (4) appoint, compensate, and otherwise control all school employees in accordance with this title;

In addition to other duties, a school SSHBHB 29 -2- HB0029bHB0029a New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I34-LS0315\A board shall (1) determine and disburse the total amount to be made available for compensation of all school employees and administrative officers, including, when applicable, the amount necessary to pay for the district's participation in a policy of insurance under AS 14.27.010;

(9) train persons required to report under AS 47.17.020, in the HB0029bHB0029a -3- SSHBHB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I34-LS0315\A recognition and reporting of child abuse, neglect, and sexual abuse of a minor;

AS 14.17.300 is amended by adding new subsections to read:

(c) Notwithstanding (a) and (b) of this section, the commissioner of administration (1) may expend from the public education fund to the group health and life benefits fund under AS 39.30.095 amounts necessary for the commissioner of administration to pay claims submitted by district employees who are covered by a policy of self-insurance that is provided by the Department of Administration under AS 39.30.091;

(2) shall, over a period of 10 years from the date the first expenditure authorized under this subsection occurs, reimburse the public education fund for money expended under this section from the public education fund using appropriations for that purpose.

(d) Total expenditures from the public education fund under (c) of this section may not exceed $100,000,000.

* Sec.

4.

(a) A school employer may elect to participate in a policy of insurance HB 29 -4- HB0029a New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A selected by the commissioner of administration that includes health insurance coverage of school employees.

(c) In addition to the contribution required under (b) of this section and the reimbursement required under (d) of this section, a parngparticipating school employer shall reimburse the Department of Administration an amount equal to the state's cost, if any, of procuring necessary excess loss insurance in connection with coverage of the SSHB 29 -4- HB0029b New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I school employees under AS 39.30.091.

HB0029a -5- HB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A * Sec.

4.5.

(6) establish and maintain participation in an insurance policy that includes health insurance, as authorized under AS 14.27.010, to cover persons HB0029b -5- SSHB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I employed by the university.

5.6.

HB 29 -6- HB0029a New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A (3) a governmental unit may participate under a group policy if (A) its governing body adopts a resolution authorizing participation and payment of required premiums;

an excess loss SSHB 29 -6- HB0029b New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I insurance policy may be obtained from a life or health insurer authorized to transact business in this state under AS 21.09 or from a hospital or medical service corporation authorized to transact business in this state under AS 21.87;

the lowest responsible bid submitted by an insurance carrier, hospital or medical service corporation, or third-party administrator with adequate servicing facilities shall govern selection of a carrier, hospital or medical service corporation, or third-party administrator under this section or the selection of an insurance carrier or a hospital or medical service corporation to provide excess loss insurance as provided in HB0029a -7- HB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A AS 39.30.091;

HB0029b -7- SSHB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for that person and eligible dependents under this section;

6.7.

HB 29 -8- HB0029a New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A (2) "governmental unit" means the state, a municipality, a school district, the University of Alaska, or other political subdivision of the state, and the North Pacific Fishery Management Council;

7.8.

8.9.

9.10.

SSHB 29 -8- HB0029b New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I Sec.

10.11.

11.12.

Sections 1 - 1011 of this Act apply to a contract or collective bargaining agreement that becomes legally binding on or after the effective date of secs.

1 - 10HB0029a -9- HB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\A 11 of this Act.

12.13.

Not later than 30 days after enrolling in a health care plan administered by the state under AS 39.30.090 or 39.30.091, a governmental unit that, before the effective date of this section, maintains a self-funded insurance reserve for the purpose of paying employee health insurance claims shall transfer the closing balance of that reserve to the group health and life benefits fund established under AS 39.30.095.

34 of this Act.

IfIn thethis amountsection, transferred"governmental exceedsunit" thehas amount necessary to offset the reimbursementmeaning owed,given thein excess shall be applied to reduce the rate of employee contribution set by the commissioner of administration under AS 39.30.09539.30.090(b). and required under AS 14.27.010(b).

In this section, "governmental unit" has the meaning given in HB0029b -9- SSHB 29 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0315\I AS 39.30.090(b).

13.14.

14.

Sections 12 and 13 of this Act take effect immediately under AS 01.10.070(c).