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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, Schwanke
Introduced: 4/30/25
Referred: Education, Labor and Commerce
A BILL
FOR AN ACT ENTITLED
"An Act relating to group insurance coverage and self-insurance coverage for school 1
district employees, employees of the University of Alaska, and employees of other 2
governmental units in the state; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 14.08.101 is amended to read: 5
Sec. 14.08.101. Powers. A regional school board may 6
(1) sue and be sued; 7
(2) contract with the department, the Bureau of Indian Affairs , or any 8
other school district, agency, or regional board for the provis ion of services, facilities, 9
supplies, or utilities; 10
(3) determine its own fiscal procedures, including policies an d 11
procedures for the purchase of supplies and equipment; the regi onal school boards are 12
exempt from AS 37.05 (Fiscal Pro cedures Act) and AS 36.30 (Stat e Procurement 13
Code); 14
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(4) appoint, compensate, and otherwise control all school employees in 1
accordance with this title; these employees are not subject to AS 39.25 (State 2
Personnel Act); 3
(5) adopt regulations governing organization, policies, and pr ocedures 4
for the operation of the schools; 5
(6) establish, maintain, operate , discontinue, and combine sch ools 6
subject to the approval of the commissioner; 7
(7) recommend to the department projects for construction, 8
rehabilitation, and improvement of schools and education-related facilities as specified 9
in AS 14.11.011(b), and plan, design, and construct the project when the responsibility 10
for it is assumed under AS 14.11.020; 11
(8) by resolution adopted by a majority of all the members of the board 12
and provided to the commissioner of the department, assume ownership of all land and 13
buildings used in relation to the schools in the regional educational attendance area, as 14
provided for in AS 14.08.151(b); 15
(9) provide housing for rental to teachers, by leasing existin g housing 16
from a local agency or individual, by entering into contractual a r r a n g e m e n t s w i t h a 17
local agency or individual to lease housing that will be constructed by the local agency 18
or individual for that purpose, or, without using for the purpo se that portion of public 19
school funding that consists of state aid provided under AS 14. 17, by constructing or 20
otherwise acquiring housing that is owned and managed by the re gional educational 21
attendance area for rental to teachers; 22
(10) employ a chief school administrator; 23
(11) apply for and use the proceeds of a loan from the Alaska energy 24
efficiency revolving loan fund (AS 18.56.855); 25
(12) establish and maintain participation in a policy of insurance 26
as authorized by AS 14.27.010; 27
(13) exercise those other functions that may be necessary for the 28
proper performance of its responsibilities. 29
* Sec. 2. AS 14.14.090 is amended to read: 30
Sec. 14.14.090. Duties of school boards. In addition to other duties, a school 31
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board shall 1
(1) determine and disburse the t otal amount to be made availab le for 2
compensation of all school employees and administrative officer s, including, when 3
applicable, the amount necessary to pay for the district's participation in a policy 4
of insurance under AS 14.27.010; 5
(2) provide for, during the school term of each year, an educa tional 6
program for each school age child who is enrolled in or a resident of the district; 7
(3) withhold the salary for the last month of service of a tea cher or 8
administrator until the teacher or administrator has submitted all summaries, statistics, 9
and reports that the school board may require by bylaws; 10
(4) transmit, when required by the assembly or council but not more 11
often than once a month, a summary report and statement of money expended; 12
(5) keep the minutes of meetings and a record of all proceedin gs of the 13
school board in a pertinent form; 14
(6) keep the records and files of the school board open to inspection by 15
the public at the principal administrative office of the distri ct during reasonable 16
business hours; 17
(7) establish procedures for the review and selection of all t extbooks 18
and instructional materials at least once every 10 years, inclu ding textbooks and 19
curriculum materials for statewide correspondence programs, bef ore they are 20
introduced into the school curriculum; the review includes a re view for violations of 21
AS 14.18.060; nothing in this paragraph precludes a corresponde nce study student, or 22
the parent or guardian of a co rrespondence study student, from privately obtaining or 23
using textbooks or curriculum material not provided by the school district; 24
(8) provide prospective employees with information relating to the 25
availability and cost of housing in rural areas to which they m ight be assigned, and, 26
when possible, assist them in locating housing; however, nothin g in this paragraph 27
requires a school district to pr ovide teacher housing, whether district owned, leased, 28
rented, or through other means, nor does it require a school bo ard to engage in a 29
subsidy program of any kind regarding teacher housing; 30
(9) train persons required to report under AS 47.17.020, in th e 31
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recognition and reporting of child abuse, neglect, and sexual abuse of a minor; 1
(10) provide for the developmen t and implementation of a preve ntive 2
maintenance program for school facilities; in this paragraph, "preventive maintenance" 3
means scheduled maintenance actions that prevent the premature failure or extend the 4
useful life of a facility, or a facility's systems and componen ts, and that are cost-5
effective on a life-cycle basis; 6
(11) establish procedures for providing the training under 7
AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, 14.30.362, 8
AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures es tablished under this 9
paragraph must include a training schedule that ensures that not less than 50 percent of 10
the total certificated staff employed by the district receive a ll of the training not less 11
t h a n e v e r y t w o y e a r s a n d t h a t a l l o f t h e c e r t i f i c a t e d s t a f f e m ployed by the district 12
receive all of the training not less than every four years. 13
* Sec. 3. AS 14 is amended by adding a new chapter to read: 14
Chapter 27. University and School District Employee Health Insurance. 15
Sec. 14.27.010. University and school district employee group h ealth 16
insurance. (a) A school employer may elect to participate in a policy of i nsurance 17
selected by the commissioner of administration that includes he alth insurance 18
coverage of school employees. If a school employer makes that e lection, the 19
commissioner of administration shall select either a policy of group insurance under 20
AS 39.30.090 that covers state employees and school employees, or a policy of self-21
insurance, provided by the Department of Administration under A S 39.30.091, that 22
provides insurance coverage to state employees and school employees. 23
(b) Subject to (e) of this sec tion, a participating school emp loyer shall 24
contribute to the group health and life benefits fund established under AS 39.30.095 an 25
amount equal to the rate of emplo yer contribution and the rate of employee 26
contribution set by the commissioner of administration under AS 39.30.095. 27
(c) In addition to the contribu tion required under (b) of this section and the 28
reimbursement required under (d) of this section, a participating school employer shall 29
reimburse the Department of Administration an amount equal to the state's cost, if any, 30
of procuring necessary excess loss insurance in connection with c o v e r a g e o f t h e 31
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school employees under AS 39.30.091. 1
(d) In addition to the contribution required under (b) of this section and the 2
reimbursement required under (c) of this section, a participating school employer shall 3
reimburse the Department of Administration the cost of paying i nsurance claims for 4
the first four months school employees are covered by a policy of self-insurance under 5
AS 39.30.091. The commissioner of admin istration shall allow th e reimbursement to 6
be made in equal installments over a period not to exceed 10 ye ars from the date the 7
school employer's participation in the policy begins. 8
(e) Subject to AS 23.40.070 - 23.40.260 (Public Employee Relat ions Act), a 9
participating school employer may require school employees to p ay some or all of the 10
school employer's contribution under (b) of this section and re imbursement under (c) 11
and (d) of this section. 12
(f) In this section, 13
(1) "school employee" means a p erson employed by a municipal 14
school district, a regional educational attendance area, or the University of Alaska; 15
(2) "school employer" means a municipal school district, a reg ional 16
educational attendance area, or the University of Alaska. 17
* Sec. 4. AS 14.40.170(b) is amended to read: 18
(b) The Board of Regents may 19
(1) adopt reasonable rules, orders, and plans with reasonable penalties 20
for the good government of the university and for the regulatio n of the Board of 21
Regents; 22
(2) determine and regulate the c ourse of instruction in the un iversity 23
with the advice of the president; 24
(3) set student tuition and fees; 25
(4) receive university receipt s and, subject to legislative ap propriation, 26
expend university receipts in accordance with AS 37.07 (Executive Budget Act); 27
(5) apply for and use the proceeds of a loan from the Alaska e nergy 28
efficiency revolving loan fund (AS 18.56.855); 29
(6) establish and maintain participation in an insurance policy that 30
includes health insurance, a s authorized under AS 14.27.010, to cover persons 31
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employed by the university. 1
* Sec. 5. AS 39.30.090(a) is amended to read: 2
(a) The Department of Administration may obtain a policy or policies of group 3
insurance covering state employees, persons entitled to coverag e under AS 14.25.168, 4
14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 5
employees of other participating governmental units, or persons entitled to coverage 6
under AS 23.15.136, subject to the following conditions: 7
(1) a group insurance policy shall provide one or more of the following 8
benefits: life insurance, accidental death and dismemberment in surance, weekly 9
indemnity insurance, hospital ex pense insurance, surgical expen se insurance, dental 10
expense insurance, audiovisual insurance, or other medical care insurance; 11
(2) each eligible employee of the state or other participating 12
governmental unit and [,] the spouse and the unmarried children chiefly dependent 13
on the eligible employee for support [, AND EACH ELIGIBLE EMPLO YEE OF 14
ANOTHER PARTICIPATING GOVERNMENTAL UNIT] shall be covered by th e 15
group policy, unless exempt under regulations adopted by the co mmissioner of 16
administration; 17
(3) a governmental unit may participate under a group policy if 18
(A) its governing body adopts a resolution authorizing 19
participation and payment of required premiums; 20
(B) a certified copy of the resolution is filed with the 21
Department of Administration; and 22
(C) the commissioner of ad ministration approves the 23
participation in writing; 24
(4) in procuring a policy of group health or group life insura nce as 25
provided under this section or ex cess loss insurance as provide d in AS 39.30.091, the 26
Department of Administration shall comply with the dual choice requirements of 27
AS 21.86.310, and shall obtain the insurance policy from an ins urer authorized to 28
transact business in the state under AS 21.09, a hospital or medical service corporation 29
authorized to transact busin ess in this state under AS 21.87, o r a health maintenance 30
organization authorized to ope rate in this state under AS 21.86 ; an excess loss 31
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insurance policy may be obtaine d from a life or health insurer authorized to transact 1
business in this state under AS 21.09 or from a hospital or med ical service corporation 2
authorized to transact business in this state under AS 21.87; 3
(5) the Department of Administration shall make available bid 4
specifications for desired insurance benefits or for administration of benefit claims and 5
payments to (A) all insurance carriers authorized to transact b usiness in this state 6
under AS 21.09 and all hospital or m edical service corporations authorized to transact 7
business under AS 21.87 who are qualif ied to provide the desire d benefits; and (B) 8
insurance carriers authorized to transact business in this stat e under AS 21.09, hospital 9
or medical service corporations a uthorized to transact business under AS 21.87, and 10
third-party administrators licensed to transact business in thi s state and qualified to 11
provide administrative services; the specifications shall be made available at least once 12
every five years; the lowest responsible bid submitted by an in surance carrier, hospital 13
or medical service corporation, or third-party administrator wi th adequate servicing 14
facilities shall govern selection of a carrier, hospital or med ical service corporation, or 15
third-party administrator under this section or the selection of an insurance carrier or a 16
hospital or medical service corporation to provide excess loss insurance as provided in 17
AS 39.30.091; 18
(6) if the aggregate of dividends payable under the group insu rance 19
policy exceeds the governmental unit's share of the premium, th e excess shall be 20
applied by the governmental unit for the sole benefit of the employees; 21
(7) a person receiving benefits under AS 14.25.110, AS 22.25, 22
AS 39.35, or former AS 39.37 may con tinue the life insurance co verage that was in 23
effect under this section at the time of termination of employm ent with the state or 24
participating governmental unit; 25
(8) a person electing to have insurance under (7) of this subs ection 26
shall pay the cost of this insurance; 27
(9) for each permanent part-time employee electing coverage un der 28
this section, the state shall contribute one-half the state contribution rate for permanent 29
full-time state employees, and the permanent part-time employee shall contribute the 30
other one-half; 31
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(10) a person receiving be nefits under AS 14.25, AS 22.25, AS 39.35, 1
or former AS 39.37 may obtain auditory, visual, and dental insu rance for that person 2
and eligible dependents under th is section; the level of covera ge for persons over 65 3
shall be the same as that available before reaching age 65 exce pt that the benefits 4
payable shall be supplemental to any benefits provided under th e federal old age, 5
survivors, and disability insurance program; a person electing to have insurance under 6
this paragraph shall pay the cost of the insurance; the commiss ioner of administration 7
shall adopt regulations implementing this paragraph; 8
(11) a person receiving be nefits under AS 14.25, AS 22.25, AS 39.35, 9
or former AS 39.37 may obtain long -term care insurance for that person and eligible 10
dependents under this section; a p erson who elects insurance un der this paragraph 11
shall pay the cost of the insurance premium; the commissioner o f administration shall 12
adopt regulations to implement this paragraph; 13
(12) each licensee holding a current operating agreement for a vending 14
facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 15
applies to governmental units other than the state. 16
* Sec. 6. AS 39.30.090(b)(2) is amended to read: 17
(2) "governmental unit" means the state, a municipality, a school 18
district, the University of Alaska, or other political subdivision of the state, and the 19
North Pacific Fishery Management Council; 20
* Sec. 7. AS 39.30.090(b) is amended by adding a new paragraph to read: 21
(4) "school district" means a m unicipal school district or reg ional 22
educational attendance area. 23
* Sec. 8. AS 39.30.090 is amended by adding a new subsection to read: 24
(c) When the Department of Administration receives a resolutio n from a 25
governmental unit authorizing pa rticipation under a state group insurance policy, 26
before the commissioner of admin istration approves the particip ation, the department 27
shall investigate the potential cost of admitting the unit, inc luding whether as a result 28
of admitting the unit the rates of eligible employees will incr ease or decrease, and 29
provide actuarial analysis to the legislature. 30
* Sec. 9. AS 39.30.091 is amended to read: 31
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Sec. 39.30.091. Authorization for self-insurance and excess los s insurance. 1
Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration 2
may provide, by means of self-insurance, one or more of the ben efits listed in 3
AS 39.30.090(a)(1) for [STATE] employees eligible under AS 39.30.090(a) [ F O R 4
THE BENEFITS BY LAW] or under a collective bargaining agreement and for 5
persons receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37, 6
and their dependents. The depar tment shall procure any necessar y excess loss 7
insurance under AS 39.30.090. 8
* Sec. 10. AS 39.30.091 is amended by adding a new subsection to read: 9
(b) If the department is required by (a) of this section to pr ocure excess loss 10
insurance in connection with coverage of employees who are not state employees, the 11
department may allocate the cost of that insurance across all e mployers, other than the 12
state, that participate in self-insurance provided by the department under this section. 13
* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 14
read: 15
APPLICABILITY. Sections 1 - 10 of this Act apply to a contract or collective 16
bargaining agreement that becomes legally binding on or after t he effective date of secs. 1 - 17
10 of this Act. 18
* Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 19
read: 20
TRANSITION. Not later than 30 days after enrolling in a health care plan 21
administered by the state under AS 39.30.090 or 39.30.091, a go vernmental unit that, before 22
the effective date of this sec tion, maintains a self-funded ins urance reserve for the purpose of 23
paying employee health insurance claims shall transfer the clos ing balance of that reserve to 24
the group health and life benefits fund established under AS 39 .30.095. An amount 25
transferred under this section by a governmental unit that is a school district shall be applied 26
to offset reimbursement owed by that school district under AS 14.27.010(d), enacted by sec. 3 27
of this Act. If the amount tra nsferred exceeds the amount neces sary to offset the 28
reimbursement owed, the excess sh all be applied to reduce the r ate of employee contribution 29
set by the commissioner of a dministration under AS 39.30.095 an d required under 30
AS 14.27.010(b). In this section, "governmental unit" has the m eaning given in 31
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AS 39.30.090(b). 1
* Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 2
read: 3
REGULATIONS. The commissioner of administration shall adopt reg ulations 4
necessary to implement the changes ma de by th is A c t. T h e r eg u lations may not take effect 5
before the effective date of the law implemented by the regulation. 6
* Sec. 14. Sections 12 and 13 of this Act take effect immediately under AS 01.10.070(c). 7
* Sec. 15. Except as provided in sec. 14 of this Act, this Act takes effect July 1, 2025. 8