Alaska 2025-2026 Regular Session

Alaska Senate Bill SB5 Compare Versions

Only one version of the bill is available at this time.

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5	5	34-LS0041\A
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11	11	SENATE BILL NO. 5
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY SENATOR HUGHES
18	18
19	19	Introduced: 1/10/25
20	20	Referred: Prefiled
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to group insurance coverage and self-insurance coverage for school 1
28	28	district employees, employees of the University of Alaska, and employees of other 2
29	29	governmental units in the state; and providing for an effective date." 3
30	30	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
31	31	* Section 1. AS 14.08.101 is amended to read: 5
32	32	Sec. 14.08.101. Powers. A regional school board may 6
33	33	(1) sue and be sued; 7
34	34	(2) contract with the department, the Bureau of Indian Affairs, or any 8
35	35	other school district, agency, or regional board for the provision of services, facilities, 9
36	36	supplies, or utilities; 10
37	37	(3) determine its own fiscal procedures, including policies and 11
38	38	procedures for the purchase of supplies and equipment; the regional school boards are 12
39	39	exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State Procurement 13
40	40	Code); 14 34-LS0041\A
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44	44	(4) appoint, compensate, and otherwise control all school employees in 1
45	45	accordance with this title; these employees are not subject to AS 39.25 (State 2
46	46	Personnel Act); 3
47	47	(5) adopt regulations governing organization, policies, and procedures 4
48	48	for the operation of the schools; 5
49	49	(6) establish, maintain, operate, discontinue, and combine schools 6
50	50	subject to the approval of the commissioner; 7
51	51	(7) recommend to the department projects for construction, 8
52	52	rehabilitation, and improvement of schools and education-related facilities as specified 9
53	53	in AS 14.11.011(b), and plan, design, and construct the project when the responsibility 10
54	54	for it is assumed under AS 14.11.020; 11
55	55	(8) by resolution adopted by a majority of all the members of the board 12
56	56	and provided to the commissioner of the department, assume ownership of all land and 13
57	57	buildings used in relation to the schools in the regional educational attendance area, as 14
58	58	provided for in AS 14.08.151(b); 15
59	59	(9) provide housing for rental to teachers, by leasing existing housing 16
60	60	from a local agency or individual, by entering into contractual arrangements with a 17
61	61	local agency or individual to lease housing that will be constructed by the local agency 18
62	62	or individual for that purpose, or, without using for the purpose that portion of public 19
63	63	school funding that consists of state aid provided under AS 14.17, by constructing or 20
64	64	otherwise acquiring housing that is owned and managed by the regional educational 21
65	65	attendance area for rental to teachers; 22
66	66	(10) employ a chief school administrator; 23
67	67	(11) apply for and use the proceeds of a loan from the Alaska energy 24
68	68	efficiency revolving loan fund (AS 18.56.855); 25
69	69	(12) establish and maintain participation in a policy of insurance 26
70	70	as authorized by AS 14.27.010; 27
71	71	(13) exercise those other functions that may be necessary for the 28
72	72	proper performance of its responsibilities. 29
73	73	* Sec. 2. AS 14.14.090 is amended to read: 30
74	74	Sec. 14.14.090. Duties of school boards. In addition to other duties, a school 31 34-LS0041\A
75	75	SB0005A -3- SB 5
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78	78	board shall 1
79	79	(1) determine and disburse the total amount to be made available for 2
80	80	compensation of all school employees and administrative officers, including, when 3
81	81	applicable, the amount necessary to pay for the district's participation in a policy 4
82	82	of insurance under AS 14.27.010; 5
83	83	(2) provide for, during the school term of each year, an educational 6
84	84	program for each school age child who is enrolled in or a resident of the district; 7
85	85	(3) withhold the salary for the last month of service of a teacher or 8
86	86	administrator until the teacher or administrator has submitted all summaries, statistics, 9
87	87	and reports that the school board may require by bylaws; 10
88	88	(4) transmit, when required by the assembly or council but not more 11
89	89	often than once a month, a summary report and statement of money expended; 12
90	90	(5) keep the minutes of meetings and a record of all proceedings of the 13
91	91	school board in a pertinent form; 14
92	92	(6) keep the records and files of the school board open to inspection by 15
93	93	the public at the principal administrative office of the district during reasonable 16
94	94	business hours; 17
95	95	(7) establish procedures for the review and selection of all textbooks 18
96	96	and instructional materials at least once every 10 years, including textbooks and 19
97	97	curriculum materials for statewide correspondence programs, before they are 20
98	98	introduced into the school curriculum; the review includes a review for violations of 21
99	99	AS 14.18.060; nothing in this paragraph precludes a correspondence study student, or 22
100	100	the parent or guardian of a correspondence study student, from privately obtaining or 23
101	101	using textbooks or curriculum material not provided by the school district; 24
102	102	(8) provide prospective employees with information relating to the 25
103	103	availability and cost of housing in rural areas to which they might be assigned [,] and, 26
104	104	when possible, assist them in locating housing; however, nothing in this paragraph 27
105	105	requires a school district to provide teacher housing, whether district owned, leased, 28
106	106	rented, or through other means, nor does it require a school board to engage in a 29
107	107	subsidy program of any kind regarding teacher housing; 30
108	108	(9) train persons required to report under AS 47.17.020 [,] in the 31 34-LS0041\A
109	109	SB 5 -4- SB0005A
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112	112	recognition and reporting of child abuse, neglect, and sexual abuse of a minor; 1
113	113	(10) provide for the development and implementation of a preventive 2
114	114	maintenance program for school facilities; in this paragraph, "preventive maintenance" 3
115	115	means scheduled maintenance actions that prevent the premature failure or extend the 4
116	116	useful life of a facility, or a facility's systems and components, and that are cost-5
117	117	effective on a life-cycle basis; 6
118	118	(11) establish procedures for providing the training under 7
119	119	AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, 14.30.362, 8
120	120	AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures established under this 9
121	121	paragraph must include a training schedule that ensures that not less than 50 percent of 10
122	122	the total certificated staff employed by the district receive all of the training not less 11
123	123	than every two years and that all of the certificated staff employed by the district 12
124	124	receive all of the training not less than every four years. 13
125	125	* Sec. 3. AS 14.17.300 is amended by adding new subsections to read: 14
126	126	(c) Notwithstanding (a) and (b) of this section, the commissioner of 15
127	127	administration 16
128	128	(1) may expend from the public education fund to the group health and 17
129	129	life benefits fund under AS 39.30.095 amounts necessary for the commissioner of 18
130	130	administration to pay claims submitted by district employees who are covered by a 19
131	131	policy of self-insurance that is provided by the Department of Administration under 20
132	132	AS 39.30.091; 21
133	133	(2) shall, over a period of 10 years from the date the first expenditure 22
134	134	authorized under this subsection occurs, reimburse the public education fund for 23
135	135	money expended under this section from the public education fund using 24
136	136	appropriations for that purpose. 25
137	137	(d) Total expenditures from the public education fund under (c) of this section 26
138	138	may not exceed $100,000,000. 27
139	139	* Sec. 4. AS 14 is amended by adding a new chapter to read: 28
140	140	Chapter 27. University and School District Employee Health Insurance. 29
141	141	Sec. 14.27.010. University and school district employee group health 30
142	142	insurance. (a) A school employer may elect to participate in a policy of insurance
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147	147	selected by the commissioner of administration that includes health insurance 1
148	148	coverage of school employees. If a school employer makes that election, the 2
149	149	commissioner of administration shall select either a policy of group insurance under 3
150	150	AS 39.30.090 that covers state employees and school employees or a policy of self-4
151	151	insurance provided by the Department of Administration under AS 39.30.091 that 5
152	152	provides insurance coverage to state employees and school employees. 6
153	153	(b) Subject to (e) of this section, a participating school employer shall 7
154	154	contribute to the group health and life benefits fund established under AS 39.30.095 an 8
155	155	amount equal to the combined employer and employee contribution rates set by the 9
156	156	commissioner of administration under AS 39.30.095(b). 10
157	157	(c) In addition to the contribution required under (b) of this section and the 11
158	158	reimbursement required under (d) of this section, a participating school employer shall 12
159	159	reimburse the Department of Administration an amount equal to the state's cost, if any, 13
160	160	of procuring necessary excess loss insurance in connection with coverage of the 14
161	161	school employees under AS 39.30.091. 15
162	162	(d) In addition to the contribution required under (b) of this section and the 16
163	163	reimbursement required under (c) of this section, a participating school employer shall 17
164	164	reimburse the Department of Administration the cost of paying insurance claims for 18
165	165	the first four months school employees are covered by a policy of self-insurance under 19
166	166	AS 39.30.091. The commissioner of administration shall allow the reimbursement to 20
167	167	be made in equal installments over a period not to exceed 10 years from the date the 21
168	168	school employer's participation in the policy begins. 22
169	169	(e) Subject to AS 23.40.070 - 23.40.260 (Public Employment Relations Act), 23
170	170	a participating school employer may require school employees to pay some or all of 24
171	171	the school employer's contribution under (b) of this section and reimbursement under 25
172	172	(c) and (d) of this section. 26
173	173	(f) In this section, 27
174	174	(1) "school employee" means a person employed by a municipal 28
175	175	school district, a regional educational attendance area, or the University of Alaska; 29
176	176	(2) "school employer" means a municipal school district, a regional 30
177	177	educational attendance area, or the University of Alaska.
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182	182	* Sec. 5. AS 14.40.170(b) is amended to read: 1
183	183	(b) The Board of Regents may 2
184	184	(1) adopt reasonable rules, orders, and plans with reasonable penalties 3
185	185	for the good government of the university and for the regulation of the Board of 4
186	186	Regents; 5
187	187	(2) determine and regulate the course of instruction in the university 6
188	188	with the advice of the president; 7
189	189	(3) set student tuition and fees; 8
190	190	(4) receive university receipts and, subject to legislative appropriation, 9
191	191	expend university receipts in accordance with AS 37.07 (Executive Budget Act); 10
192	192	(5) apply for and use the proceeds of a loan from the Alaska energy 11
193	193	efficiency revolving loan fund (AS 18.56.855); 12
194	194	(6) establish and maintain participation in an insurance policy that 13
195	195	includes health insurance, as authorized under AS 14.27.010, to cover persons 14
196	196	employed by the university. 15
197	197	* Sec. 6. AS 39.30.090(a) is amended to read: 16
198	198	(a) The Department of Administration may obtain a policy or policies of group 17
199	199	insurance covering state employees, persons entitled to coverage under AS 14.25.168, 18
200	200	14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 19
201	201	employees of other participating governmental units, or persons entitled to coverage 20
202	202	under AS 23.15.136, subject to the following conditions: 21
203	203	(1) a group insurance policy shall provide one or more of the following 22
204	204	benefits: life insurance, accidental death and dismemberment insurance, weekly 23
205	205	indemnity insurance, hospital expense insurance, surgical expense insurance, dental 24
206	206	expense insurance, audiovisual insurance, or other medical care insurance; 25
207	207	(2) each eligible employee of the state or other participating 26
208	208	governmental unit and [,] the spouse and the unmarried children chiefly dependent 27
209	209	on the eligible employee for support [, AND EACH ELIGIBLE EMPLOYEE OF 28
210	210	ANOTHER PARTICIPATING GOVERNMENTAL UNIT] shall be covered by th e 29
211	211	group policy, unless exempt under regulations adopted by the commissioner of 30
212	212	administration; 31 34-LS0041\A
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216	216	(3) a governmental unit may participate under a group policy if 1
217	217	(A) its governing body adopts a resolution authorizing 2
218	218	participation and payment of required premiums; 3
219	219	(B) a certified copy of the resolution is filed with the 4
220	220	Department of Administration; and 5
221	221	(C) the commissioner of administration approves the 6
222	222	participation in writing; 7
223	223	(4) in procuring a policy of group health or group life insurance as 8
224	224	provided under this section or excess loss insurance as provided in AS 39.30.091, the 9
225	225	Department of Administration shall comply with the dual choice requirements of 10
226	226	AS 21.86.310 [,] and shall obtain the insurance policy from an insurer authorized to 11
227	227	transact business in the state under AS 21.09, a hospital or medical service corporation 12
228	228	authorized to transact business in this state under AS 21.87, or a health maintenance 13
229	229	organization authorized to operate in this state under AS 21.86; an excess loss 14
230	230	insurance policy may be obtained from a life or health insurer authorized to transact 15
231	231	business in this state under AS 21.09 or from a hospital or medical service corporation 16
232	232	authorized to transact business in this state under AS 21.87; 17
233	233	(5) the Department of Administration shall make available bid 18
234	234	specifications for desired insurance benefits or for administration of benefit claims and 19
235	235	payments to (A) all insurance carriers authorized to transact business in this state 20
236	236	under AS 21.09 and all hospital or medical service corporations authorized to transact 21
237	237	business under AS 21.87 who are qualified to provide the desired benefits; and (B) 22
238	238	insurance carriers authorized to transact business in this state under AS 21.09, hospital 23
239	239	or medical service corporations authorized to transact business under AS 21.87, and 24
240	240	third-party administrators licensed to transact business in this state and qualified to 25
241	241	provide administrative services; the specifications shall be made available at least once 26
242	242	every five years; the lowest responsible bid submitted by an insurance carrier, hospital 27
243	243	or medical service corporation, or third-party administrator with adequate servicing 28
244	244	facilities shall govern selection of a carrier, hospital or medical service corporation, or 29
245	245	third-party administrator under this section or the selection of an insurance carrier or a 30
246	246	hospital or medical service corporation to provide excess loss insurance as provided in
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251	251	AS 39.30.091; 1
252	252	(6) if the aggregate of dividends payable under the group insurance 2
253	253	policy exceeds the governmental unit's share of the premium, the excess shall be 3
254	254	applied by the governmental unit for the sole benefit of the employees; 4
255	255	(7) a person receiving benefits under AS 14.25.110, AS 22.25, 5
256	256	AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 6
257	257	effect under this section at the time of termination of employment with the state or 7
258	258	participating governmental unit; 8
259	259	(8) a person electing to have insurance under (7) of this subsection 9
260	260	shall pay the cost of this insurance; 10
261	261	(9) for each permanent part-time employee electing coverage under 11
262	262	this section, the state shall contribute one-half the state contribution rate for permanent 12
263	263	full-time state employees, and the permanent part-time employee shall contribute the 13
264	264	other one-half; 14
265	265	(10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 15
266	266	or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 16
267	267	and eligible dependents under this section; the level of coverage for persons over 65 17
268	268	shall be the same as that available before reaching age 65 except that the benefits 18
269	269	payable shall be supplemental to any benefits provided under the federal old age, 19
270	270	survivors, and disability insurance program; a person electing to have insurance under 20
271	271	this paragraph shall pay the cost of the insurance; the commissioner of administration 21
272	272	shall adopt regulations implementing this paragraph; 22
273	273	(11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 23
274	274	or former AS 39.37 may obtain long-term care insurance for that person and eligible 24
275	275	dependents under this section; a person who elects insurance under this paragraph 25
276	276	shall pay the cost of the insurance premium; the commissioner of administration shall 26
277	277	adopt regulations to implement this paragraph; 27
278	278	(12) each licensee holding a current operating agreement for a vending 28
279	279	facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 29
280	280	applies to governmental units other than the state. 30
281	281	* Sec. 7. AS 39.30.090(b)(2) is amended to read: 31 34-LS0041\A
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285	285	(2) "governmental unit" means the state, a municipality, a school 1
286	286	district, the University of Alaska, or other political subdivision of the state, and the 2
287	287	North Pacific Fishery Management Council; 3
288	288	* Sec. 8. AS 39.30.090(b) is amended by adding a new paragraph to read: 4
289	289	(4) "school district" means a municipal school district or regional 5
290	290	educational attendance area. 6
291	291	* Sec. 9. AS 39.30.091 is amended to read: 7
292	292	Sec. 39.30.091. Authorization for self-insurance and excess loss insurance. 8
293	293	Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration 9
294	294	may provide, by means of self-insurance, one or more of the benefits listed in 10
295	295	AS 39.30.090(a)(1) for [STATE] employees eligible under AS 39.30.090(a) [FOR 11
296	296	THE BENEFITS BY LAW] or under a collective bargaining agreement and for 12
297	297	persons receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 13
298	298	[,] and their dependents. The department shall procure any necessary excess loss 14
299	299	insurance under AS 39.30.090. 15
300	300	* Sec. 10. AS 39.30.091 is amended by adding a new subsection to read: 16
301	301	(b) If the Department of Administration is required by (a) of this section to 17
302	302	procure excess loss insurance in connection with coverage of employees who are not 18
303	303	state employees, the department may allocate the cost of that insurance across all 19
304	304	employers, other than the state, that participate in self-insurance provided by the 20
305	305	department under this section. 21
306	306	* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 22
307	307	read: 23
308	308	APPLICABILITY. Sections 1 - 10 of this Act apply to a contract or collective 24
309	309	bargaining agreement that becomes legally binding on or after the effective date of secs. 1 - 25
310	310	10 of this Act. 26
311	311	* Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 27
312	312	read: 28
313	313	TRANSITION. Not later than 30 days after enrolling in a health care plan 29
314	314	administered by the state under AS 39.30.090 or 39.30.091, a governmental unit that, before 30
315	315	the effective date of this section, maintains a self-funded insurance reserve for the purpose of 31 34-LS0041\A
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317	317	New Text Underlined [DELETED TEXT BRACKETED]
318	318
319	319	paying employee health insurance claims shall transfer the closing balance of that reserve to 1
320	320	the group health and life benefits fund under AS 39.30.095. An amount transferred under this 2
321	321	section by a governmental unit that is a school district shall be applied to offset 3
322	322	reimbursement owed by that school district under AS 14.27.010(d), enacted by sec. 4 of this 4
323	323	Act. In this section, "governmental unit" has the meaning given in AS 39.30.090(b). 5
324	324	* Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 6
325	325	read: 7
326	326	REGULATIONS. The commissioner of administration shall adopt regulations 8
327	327	necessary to implement the changes made by this Act. The regulations may not take effect 9
328	328	before the effective date of the law implemented by the regulation. 10
329	329	* Sec. 14. Sections 12 and 13 of this Act take effect immediately under AS 01.10.070(c). 11
330	330	* Sec. 15. Except as provided in sec. 14 of this Act, this Act takes effect July 1, 2026. 12