Legislature(2023 - 2024)BARNES 124
01/17/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 100 | TELECONFERENCED | |
HB 100-PAID FAMILY LEAVE INSURANCE PLAN
3:17:08 PM
CHAIR SUMNER announced that the only order of business was HOUSE
BILL NO. 100 "An Act relating to teacher and public employee
leave."
3:17:34 PM
REPRESENTATIVE JENNIE ARMSTRONG, Alaska State Legislature, as
prime sponsor of HB 100, recapped the sponsor statement
[included in committee packet], which read as follows [original
punctuation provided]:
For years, the State of Alaska has faced a net
outmigration of young families. Simultaneously, the
lack of pensions and competitive benefits for state
workers has meant that the State of Alaska faces
crippling vacancy rates in our public sector,
exacerbated by the pandemic. The result is that we pay
the same
penalty thrice as our workforce ages, outmigration
continues, and we are unable to recruit and retain the
best and brightest in Alaska.
A common thread in retention woes and outmigration is
that Alaska does not have opportunity for young
families. The costs associated with raising a family
are prohibitively expensive as parents seek to re-
enter the workforce but struggle to find support
beyond family and friends in areas such as childcare.
HB100 seeks to provide one solution that has become
more popular since the COVID-19 Pandemic: paid family
leave. Ten other states are now offering similar
benefits, and Alaska's benefits under this bill would
become the best in the nation.
Under the current Alaska Family Medical Leave Act,
employees can take up to 18 weeks of unpaid leave in
the event of childbirth, adoption, or a significant
health event related to a loved one. HB100 would
ensure that such leave is paid at 100% of the worker's
salary. This bill would help our public sector recruit
and retain employees, as well as ensure that our state
could be amongst the best in the nation to raise a
family.
3:18:18 PM
REPRESENTATIVE RUFFRIDGE moved to adopt the proposed committee
substitute (CS) to HB 100, Version 33-LS0480\B, Klein, 11/8/23,
as a working document. There being no objection, Version B was
before the committee.
3:19:32 PM
The committee took an at-ease from 3:19 p.m. to 3:20 p.m.
3:20:11 PM
VAL ZANCHUCK, President, Graphicast, Inc., began invited
testimony and relayed that Graphicast has been involved in the
paid family medical leave program in New Hampshire for the last
year. He shared that such a program is important, especially
for a small business like his own which has only 25 employees.
He explained that, in New Hampshire, there are about 7,000 state
employees; that is used as an actuarial basis for insurance
companies to bid on. He said his company applied for six-week
family medical leave insurance, the premium was $5,000 and would
be able to be paid via payroll deduction. He said the company
offering this insurance was a "no-brainer," and he detailed the
factors that brought the insurance premium down to $1,500. He
explained that the leave plan provides the employee up to 60
percent of the employee's wages.
3:28:44 PM
TREVOR STORRS, President/CEO, Alaska Children's Trust, began
invited testimony, stating that policies, like the ones in HB
100, are key in safeguarding children. He stressed the
importance of early childhood development in the first three
years of life, and the effect of abuse and neglect; over 40
percent of children in Alaska who experience abuse or neglect
are under the age of four. He stated that shaken-baby syndrome
has been shown to be reduced when paid family leave policies are
available, which supports new parents in helping to establish
healthy patterns that promote development for the child. He
said that, while there may be an up-front cost to employers, the
long-term benefits include reduced long-term expenditures and
more employee time in the workplace. Further, it supports the
administration's healthy family initiative, as well as the "open
for business" initiative. He urged members to approve HB 100.
3:32:57 PM
TAMAR BEN-YOSEF, Executive Director, All Alaska Pediatric
Partnership, as invited testifier, shared the mission of the All
Alaska Pediatric Partnership, and that its board approved a 12-
week, parental leave policy with eight weeks of paid leave. She
said an organization of the partnership's size can handle one
employee being out for an extended period, but inevitably, the
burden falls to other staff who are already operating at maximum
capacity; if more than one or two employees need to be out for a
long period of time, the partnership could not afford to offer
the eight weeks of paid leave as well as the pay for a
contractor while they are out. She stated that women should not
need to choose between work and motherhood.
3:36:14 PM
CHAIR SUMNER opened public testimony on HB 100.
3:36:54 PM
LAURIE WOLF, MNPL, CFRE, President/CEO, Foraker Group, shared
that Foraker Group is a non-profit, non-partisan organization.
She said the group has been researching the state's non-profit
workforce. She stated that workplace policies that support
broad paid family leave options, like child and elder care, are
a key factor in providing a more welcoming, equitable, and
stable workforce.
3:38:50 PM
JAMIE MORGAN, Relations Regional Lead, American Heart
Association, stated that the American Heart Association is in
support of HB 100. She explained that chronic work stress is
associated with an increased risk for cardiovascular disease;
time off can reduce the likelihood of developing such a disease.
She said that those with higher incomes, college degrees, and
full-time jobs are more likely to have paid family leave and
benefits, while those in production, transportation, and service
sectors have the lowest rate of access. She stated that all
workers should have access to paid family leave.
3:41:32 PM
CHAIR SUMNER, after ascertaining no one else wished to testify,
closed public testimony on HB 100.
3:41:46 PM
REPRESENTATIVE WRIGHT asked about the proposed four and a half
months of leave.
REPRESENTATIVE ARMSTRONG answered that current statute provides
for 18 weeks of unpaid leave, and that HB 100 changes statute to
18 weeks paid.
REPRESENTATIVE WRIGHT inquired if there is data on that amount
of leave.
REPRESENTATIVE ARMSTRONG explained that, according to studies, a
year can be beneficial. She reiterated that the bill changes
statute from 18-weeks unpaid leave to 18-weeks paid leave.
3:42:55 PM
REPRESENTATIVE PRAX expressed curiosity as to how many extra
employees were needed in order to have a paid family leave
program. He asked Mr. Zanchuk if private insurance carriers are
taking on the risk of this program in New Hampshire.
MR. ZANCHUK confirmed the carriers are. In response to a follow
up question, he explained that the premium is $1,500 a year for
their entire 25 employee workforce; employees do not pay as he
himself is covering it.
3:45:25 PM
REPRESENTATIVE ARMSTRONG commented on how businesses handle
employees in paid family leave status. She advised that the
states that have implemented the plan are having a significantly
easier time managing long absences with an insurance premium
because the insurance company handles the wage replacement. She
clarified that the plan is voluntary and gives employers
flexibility.
REPRESENTATIVE PRAX asked whether the state would cover the
insurance risk.
REPRESENTATIVE ARMSTRONG responded that the state will be
covering the premium for state employees, and for everyone else,
the employer will undergo a bidding process.
3:47:27 PM
REPRESENTATIVE SADDLER asked how much the insurance would cost
the state.
3:48:02 PM
TRISTAN WALSH, Staff, Representative Jennie Armstrong, Alaska
State Legislature, answered that, in [the original Version of HB
100], there was estimated cost data created. In a scenario
where the state self insures and replaces every dollar lost, he
said it would cost $17 million to $20 million for all workers.
He explained that in the proposed CS Version B, there is just
the $5 premium to the worker. In response to a follow-up
regarding cost, he said that Version B may cost $9 million to
$10 million.
3:50:54 PM
REPRESENTATIVE FIELDS requested data for a future meeting on
duration of care and what it is in other countries.
[HB 100 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB100 Supporting Document-Letter of Support ACT 1.15.2024.pdf |
HL&C 1/17/2024 3:15:00 PM |
HB 100 |
| ASEA Support for HB100 012224.pdf |
HL&C 1/17/2024 3:15:00 PM |
HB 100 |