(a) Notwithstanding AS 39.60.050(c), and subject to AS 39.60.040(b), the commissioner may determine that a surviving dependent of a peace officer or firefighter who was employed by a municipality is eligible for premium payments under AS 39.60.040(a), if the municipality elects to participate in the fund and is in compliance with the terms of an agreement entered into under AS 39.60.050(a).
(b) If a municipality enters into an agreement under AS 39.60.050(a) and fails to meet a requirement of that agreement, including a requirement under AS 39.60.070, the commissioner may determine that a surviving dependent of a peace officer or firefighter employed by a municipality who would otherwise be eligible for payments from the fund under AS 39.60.040 is ineligible and deny payment from the fund until the commissioner determines all requirements of the agreement are satisfied.