Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                           SB 294.1
                                               SENATE BILL NO. 294
       INTRODUCED BY B. USHER, L. SHELDON-GALLOWAY, B. MERCER, J. CARLSON, A. REGIER, E.
   BUTTREY, L. JONES, J. ESP, T. MANZELLA, J. FULLER, K. KELKER, J. GROSS, J. SMALL, E. BOLDMAN,
    W. SALES, S. HINEBAUCH, T. MCGILLVRAY, S. FITZPATRICK, P. FLOWERS, R. LYNCH, W. MCKAMEY,
     M. NOLAND, D. LENZ, D. BARTEL, G. HERTZ, C. FRIEDEL, J. WELBORN, B. GILLESPIE, C. GLIMM, J.
   ELLSWORTH, K. BOGNER, G. KMETZ, D. ZOLNIKOV, D. EMRICH, J. TREBAS, L. DEMING, T. VERMEIRE
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  A BILL FOR AN ACT ENTITLED: “AN ACT ESTABLISHING THE MONTANA END OF WATCH TRUST AND
  PROVIDING RELATED SUPPORTS; CREATING AN OVERSIGHT BOARD THAT IS ATTACHED TO THE
  DEPARTMENT OF JUSTICE FOR ADMINISTRATIVE PURPOSES; PROVIDING FOR LOCAL
  GOVERNMENT AND STATE GOVERNMENT PAYMENTS FOR HEALTH INSURANCE BENEFITS WHEN AN
  OFFICER IS CATASTROPHICALLY INJURED OR DIES; PROVIDING THAT A BENEFIT RECEIVED FROM
  THE TRUST IS NOT TAXABLE INCOME; PROVIDING FOR RETROACTIVE PAYMENTS FROM THE
  TRUST; PROVIDING DEFINITIONS; SUPERSEDING THE UNFUNDED MANDATE LAWS; AMENDING
  SECTIONS 2-18-704, 15-30-2110, AND 15-30-2120, MCA; AND PROVIDING EFFECTIVE DATES AND A
  RETROACTIVE APPLICABILITY DATE.”
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          WHEREAS, Montana law enforcement officers are charged with the enforcement of the laws of the
  State of Montana as determined by the Montana State Legislature; and
          WHEREAS, law enforcement officers put their lives on the line each day to protect the people of
  Montana; and
          WHEREAS, line of duty deaths and catastrophic injuries often leave behind dependent family members
  who are struggling to cope mentally, emotionally, and financially with the trauma of a line of duty death or to
  provide care to a catastrophically injured spouse; and
          WHEREAS, the State of Montana does not currently provide a line of duty death or catastrophic injury
  benefit to officers or their families when one of these tragedies occurs.
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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68th Legislature 2023                                                                                            SB 294.1
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          NEW SECTION. Section 1.         Definitions. For the purposes of [sections 1 through 4], the following
  definitions apply:
          (1)      "Board" means the Montana end of watch trust board established in [section 3].
          (2)      "Catastrophic injury" means an injury directly related to an individual's required employment
  duties with direct or proximate consequences that renders the individual in need of 24-hour care, permanently
  incapacitates the individual, and permanently prevents the individual from performing any gainful work.
          (3)      "Department" means the department of justice.
          (4)      "Immediate family" means a law enforcement officer's spouse and dependent children under
  age 18, including children to whom the law enforcement officer is a legal guardian.
          (5)      "In the line of duty" means an action taken by a law enforcement officer or an activity in which a
  law enforcement officer participated:
          (a)      as required or authorized by law, rule, regulation, condition of employment, or professional
  ethics; and
          (b)      for which compensation is provided by the officer's employer or would have been provided by
  the officer's employer if the officer had been on duty at the time the action in question was taken.
          (6)      "Law enforcement officer" has the same meaning as provided in 7-32-201.
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          NEW SECTION. Section 2.         Montana end of watch trust benefits -- responsibilities of board of
  investments -- responsibilities of department of justice. (1) (a) There is a Montana end of watch trust within
  the permanent fund type for the purpose of supporting eligible law enforcement officers and their surviving
  immediate family in the event of an officer's death or catastrophic injury in the line of duty.
          (b)      The department may accept contributions and gifts for the trust in money or other forms. When
  accepted, the contributions and gifts must be deposited in the trust.
          (c)      The legislature may transfer money to the trust.
          (d)      Interest and income earned on money in the trust must be retained within the trust.
          (e)      The trust is overseen by the board as provided in [section 3].
          (2)      The board of investments shall:
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68th Legislature 2023                                                                                              SB 294.1
          (a)      manage the trust;
          (b)      report the annual available balance, changes in the trust's earnings, and any other pertinent
  financial information to the end of watch trust board established in [section 3] and the department by June 30 of
  each year;
          (c)      reinvest into the trust all interest generated by the trust when there are no eligible recipients
  during a fiscal year; and
          (d)      allow the department to administer benefits from the interest generated by the trust when there
  are eligible recipients during a fiscal year.
          (3)      The department shall disburse payments to an officer's designated beneficiary, as indicated by
  the officer on a form provided by the department.
          (4)      (a) Loss payments for a catastrophic injury or death in the line of duty must be made monthly
  for 5 calendar years from the date of the injury or death.
          (b)      The minimum monthly payment is $8,000 and must be increased in accordance with the
  consumer price index.
          (5)      The money in the account is subject to legislative appropriation.
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          NEW SECTION. Section 3.          Montana end of watch trust board. (1) There is a volunteer board to
  oversee the administration of the Montana end of watch trust provided for in [section 2]. The board is attached
  to the department of justice for administrative purposes only, as provided in 2-15-121.
          (2)      The board consists of five members appointed by the attorney general, including:
          (a)      a representative of the Montana sheriffs and peace officers association;
          (b)      a representative of the Montana police protective association;
          (c)      a representative of the association of Montana troopers;
          (d)      a representative of the Montana association of chiefs of police; and
          (e)      a representative from the department of justice.
          (3)      The board shall:
          (a)      meet at least once each fiscal year;
          (b)      act as an advocate for officers catastrophically injured in the line of duty and the surviving
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68th Legislature 2023                                                                                              SB 294.1
  immediate family members of officers who died in the line of duty;
          (c)      settle disputes and concerns regarding trust benefits; and
          (d)      communicate with the board of investments regarding the money in the trust, including
  reporting needs.
          (4)      The representatives in subsection (2) must be sworn officers of a participating agency.
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          NEW SECTION. Section 4.         End of watch health insurance support. (1) (a) Local governments that
  employ a law enforcement officer as defined in 7-32-201 and provide health insurance benefits to an officer, an
  officer's spouse, or an officer's dependents shall renew the coverage of the officer and the officer's spouse or
  dependents if the officer is catastrophically injured or dies in the line of duty as those terms are defined in
  [section 1].
          (b)      Renewals of coverage under this section must provide for the same level of benefits as is
  available to other members of the group. Premiums charged to an officer, spouse, or dependent under this
  section must be the same as premiums charged to other similarly situated members of the group.
          (c)      Dependent special enrollment must be allowed under the terms of the insurance contract or
  plan.
          (d)      The provisions of this section are applicable to an officer, spouse, or dependent who is insured
  under a COBRA continuation provision.
          (2)      The law enforcement officer's employing agency shall pay the premium for 1 month after the
  catastrophic injury or death in the line of duty, after which the officer, spouse, or dependent shall pay the
  premium.
          (3)      The benefit plans may discontinue or not renew the coverage of an officer, spouse, or
  dependent only if:
          (a)      the officer, spouse, or dependent has failed to pay premiums or contributions for which the
  individual is responsible;
          (b)      the officer, spouse, or dependent has performed an act or practice that constitutes fraud or has
  made an intentional misrepresentation of a material fact under the terms of the coverage; or
          (c)      the state employee group benefit plans cease to offer coverage in accordance with applicable
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68th Legislature 2023                                                                                           SB 294.1
  state law.
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          Section 5. Section 2-18-704, MCA, is amended to read:
          "2-18-704.   Mandatory provisions. (1) An insurance contract or plan issued under this part must
  contain provisions that permit:
          (a)      the member of a group who retires from active service under the appropriate retirement
  provisions of a defined benefit plan provided by law or, in the case of the defined contribution plan provided in
  Title 19, chapter 3, part 21, a member with at least 5 years of service and who is at least age 50 while in
  covered employment to remain a member of the group until the member becomes eligible for medicare under
  the federal Health Insurance for the Aged Act, 42 U.S.C. 1395, unless the member is a participant in another
  group plan with substantially the same or greater benefits at an equivalent cost or unless the member is
  employed and, by virtue of that employment, is eligible to participate in another group plan with substantially the
  same or greater benefits at an equivalent cost;
          (b)      the surviving spouse of a member to remain a member of the group as long as the spouse is
  eligible for retirement benefits accrued by the deceased member as provided by law unless the spouse is
  eligible for medicare under the federal Health Insurance for the Aged Act or unless the spouse has or is eligible
  for equivalent insurance coverage as provided in subsection (1)(a);
          (c)      the surviving children of a member to remain members of the group as long as they are eligible
  for retirement benefits accrued by the deceased member as provided by law unless they have equivalent
  coverage as provided in subsection (1)(a) or are eligible for insurance coverage by virtue of the employment of
  a surviving parent or legal guardian.
          (2)      An insurance contract or plan issued under this part must contain the provisions of subsection
  (1) for remaining a member of the group and also must permit:
          (a)      the spouse of a retired member the same rights as a surviving spouse under subsection (1)(b);
          (b)      the spouse of a retiring member to convert a group policy as provided in 33-22-508; and
          (c)      continued membership in the group by anyone eligible under the provisions of this section,
  notwithstanding the person's eligibility for medicare under the federal Health Insurance for the Aged Act.
          (3)      (a) A state insurance contract or plan must contain provisions that permit a legislator to remain
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68th Legislature 2023                                                                                                SB 294.1
  a member of the state's group plan until the legislator becomes eligible for medicare under the federal Health
  Insurance for the Aged Act if the legislator:
           (i)        terminates service in the legislature and is a vested member of a state retirement system
  provided by law; and
           (ii)       notifies the department of administration in writing within 90 days of the end of the legislator's
  legislative term.
           (b)        A former legislator may not remain a member of the group plan under the provisions of
  subsection (3)(a) if the person:
           (i)        is a member of a plan with substantially the same or greater benefits at an equivalent cost; or
           (ii)       is employed and, by virtue of that employment, is eligible to participate in another group plan
  with substantially the same or greater benefits at an equivalent cost.
           (c)        A legislator who remains a member of the group under the provisions of subsection (3)(a) and
  subsequently terminates membership may not rejoin the group plan unless the person again serves as a
  legislator.
           (4)        (a) A state insurance contract or plan must contain provisions that permit continued
  membership in the state's group plan by a member of the judges' retirement system who leaves judicial office
  but continues to be an inactive vested member of the judges' retirement system as provided by 19-5-301. The
  judge shall notify the department of administration in writing within 90 days of the end of the judge's judicial
  service of the judge's choice to continue membership in the group plan.
           (b)        A former judge may not remain a member of the group plan under the provisions of this
  subsection (4) if the person:
           (i)        is a member of a plan with substantially the same or greater benefits at an equivalent cost;
           (ii)       is employed and, by virtue of that employment, is eligible to participate in another group plan
  with substantially the same or greater benefits at an equivalent cost; or
           (iii)      becomes eligible for medicare under the federal Health Insurance for the Aged Act.
           (c)        A judge who remains a member of the group under the provisions of this subsection (4) and
  subsequently terminates membership may not rejoin the group plan unless the person again serves in a
  position covered by the state's group plan.
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68th Legislature 2023                                                                                             SB 294.1
          (5)       A person electing to remain a member of the group under subsection (1), (2), (3), or (4) shall
  pay the full premium for coverage and for that of the person's covered dependents.
          (6)       An insurance contract or plan issued under this part that provides for the dispensing of
  prescription drugs by an out-of-state mail service pharmacy, as defined in 37-7-702:
          (a)       must permit any member of a group to obtain prescription drugs from a pharmacy located in
  Montana that is willing to match the price charged to the group or plan and to meet all terms and conditions,
  including the same professional requirements that are met by the mail service pharmacy for a drug, without
  financial penalty to the member; and
          (b)       may only be with an out-of-state mail service pharmacy that is registered with the board under
  Title 37, chapter 7, part 7, and that is registered in this state as a foreign corporation.
          (7)       An insurance contract or plan issued under this part must include coverage for:
          (a)       treatment of inborn errors of metabolism, as provided for in 33-22-131;
          (b)       therapies for Down syndrome, as provided in 33-22-139;
          (c)       treatment for children with hearing loss as provided in 33-22-128(1) and (2);
          (d)       the care and treatment of mental illness in accordance with the provisions of Title 33, chapter
  22, part 7; and
          (e)       telehealth services, as provided for in 33-22-138.
          (8)       (a) An insurance contract or plan issued under this part that provides coverage for an individual
  in a member's family must provide coverage for well-child care for children from the moment of birth through 7
  years of age. Benefits provided under this coverage are exempt from any deductible provision that may be in
  force in the contract or plan.
          (b)       Coverage for well-child care under subsection (8)(a) must include:
          (i)       a history, physical examination, developmental assessment, anticipatory guidance, and
  laboratory tests, according to the schedule of visits adopted under the early and periodic screening, diagnosis,
  and treatment services program provided for in 53-6-101; and
          (ii)      routine i