Legislature(2017 - 2018)HOUSE FINANCE 519
04/18/2017 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HCR3 | |
| SB51 | |
| HB38 | |
| HB69 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 38 | TELECONFERENCED | |
| + | HB 69 | TELECONFERENCED | |
| + | SB 29 | TELECONFERENCED | |
| + | HCR 3 | TELECONFERENCED | |
| += | SB 51 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 18, 2017
1:34 p.m.
1:34:58 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 1:34 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Paul Seaton, Co-Chair
Representative Les Gara, Vice-Chair
Representative Jason Grenn
Representative David Guttenberg
Representative Scott Kawasaki
Representative Dan Ortiz
Representative Lance Pruitt
Representative Steve Thompson
Representative Cathy Tilton
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Representative Geran Tarr, Sponsor; Konrad Jackson, Staff,
Senator Natasha von Imhof; Janey Hovenden, Director,
Division of Corporations, Business and Professional
Licensing, Department of Commerce, Community and Economic
Development; Representative Andy Josephson, Sponsor; Paul
Kelly, Staff, Representative Andy Josephson; Marie Marx,
Director, Workers' Compensation Division, Department of
Labor and Workforce Development; Sheri Gray, Risk Manager,
Division of Risk Management, Department of Administration;
Heidi Drygas, Commissioner, Department of Labor and
Workforce Development; Paloma Harbour, Director, Division
of Administrative Services, Department of Labor and
Workforce Development; Nancy Meade, General Counsel, Alaska
Court System; Paul Grossi, Lobbyist, Alaska State Pipe
Trades and Iron Workers.
PRESENT VIA TELECONFERENCE
Trevor Storrs, Alaska Children's Trust, Anchorage; Teresa
Beck, Alaska Board of Veterinary Examiners, Palmer;
Marianne Burke, Mother of Abigail Caudle, Anchorage; Betty
Caudle, Aunt of Abigail Caudle, Anchorage; Jeffrey Caudle,
Brother of Abigail Caudle, Anchorage; Ron Ross, Grandfather
of Abigail Caudle, Anchorage; Kevin Dougherty, General
Counsel, Alaska Laborers, Eagle River; Angelee Wood, Self,
Anchorage; Eric Croft, Self, Anchorage; Steve Constantino,
Self, Anchorage; Vicki Paddock, Self, Anchorage.
SUMMARY
HB 38 WORKERS' COMPENSATION: DEATH BENEFITS
HB 38 was HEARD and HELD in committee for further
consideration.
HB 69 REPEAL WORKERS' COMP APPEALS COMMISSION
CSHB 69(JUD) was REPORTED out of committee with a
"do pass" recommendation and with two previously
published fiscal notes: FN2 (AJS) and FN3 (LWF).
HCR 3 APRIL 2017: CHILD ABUSE PREVENTION MONTH
CSHCR 3(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published zero fiscal note: FN1 (HHSS Committee).
CSSB 51(FIN)
EXTEND BOARD OF VETERINARY EXAMINERS
CSSB 51(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published fiscal impact note: FN1 (CED).
Co-Chair Foster reviewed the meeting agenda.
HOUSE CONCURRENT RESOLUTION NO. 3
Proclaiming April 2017 as Child Abuse Prevention
Month; and proclaiming April 7, 2017, as Go Blue
Friday.
1:34:58 PM
REPRESENTATIVE GERAN TARR, SPONSOR, explained the bill:
Child abuse in Alaska is a chronic and devastating
problem. In 2014, the Office of Children's Services
statistics showed that there were 40,000 allegations
of child maltreatment, meaning abuse or neglect of a
person under 18 years of age.
Children subject to abuse are more likely to become
abusers themselves. They are also 9 times more likely
to engage in criminal and other anti-social behavior
than children who do not experience neglect.
Emotionally and physically, abuse has long-term
effects including improper brain formation, an
inability to trust, low self-esteem, and an increased
vulnerability to posttraumatic stress disorder,
sexually transmitted diseases, heart disease, cancer,
and depression.
Every child deserves a loving family, a safe home, and
the opportunity to grow into an upstanding and
responsible member of society. We have to work
together to support our children.
This resolution proclaims April 2017 as Child Abuse
Prevention Month in an effort to raise awareness of
child abuse nationally and in-state. In 1983, the U.S.
Legislature proclaimed April the first National Child
Abuse Prevention Month to show a commitment to
identifying and implementing solutions to end child
abuse. As a result, child abuse and neglect awareness
activities are promoted across the country during
April of each year. Many governors also issue
proclamations to encourage initiatives and events in
their respective states.
The high rates of child abuse in Alaska must stop, and
recognition and an open discussion are ways to assist
in breaking this painful cycle. I invite all citizens
in Alaska to join me on April 10th, 2017 to wear blue
as a symbolic gesture that child abuse will not be
tolerated and we stand together in putting an end to
the abuse.
Vice-Chair Gara thanked the bill sponsor. He wondered
whether the bill was permanent or make it an annual basis.
Representative Tarr replied there was an amendment that had
been distributed to deal with the issue. She stated that
the issues were important to address annually. She remarked
that the amendment would name the 2018 dates.
1:39:24 PM
TREVOR STORRS, ALASKA CHILDREN'S TRUST, ANCHORAGE (via
teleconference), spoke in support of the legislation. He
wanted to reduce the deficit and pass the bill which was
about engaging the community at all levels to actively
prevent child abuse and neglect.
Co-Chair Foster CLOSED public testimony.
Co-Chair Foster MOVED to ADOPT Amendment 1, 30-LS0280\A.1
(Glover, 4/18/17) (copy on file).
Representative Wilson OBJECTED for discussion.
Representative Tarr explained the amendment that would name
April of 2018 as the "go blue" Friday.
There being NO OBJECTION, it was so ordered.
Vice-Chair Gara explained the zero fiscal note.
Representative Wilson MOVED to REPORT CSHCR 3(FIN) out of
committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered. CSHCR 3(FIN)
was REPORTED out of committee with a "do pass"
recommendation and with one previously published zero
fiscal note: FN1 (HHSS Committee).
CS FOR SENATE BILL NO. 51(FIN)
"An Act extending the termination date of the Board of
Veterinary Examiners; and providing for an effective
date."
1:46:01 PM
KONRAD JACKSON, STAFF, SENATOR NATASHA VON IMHOF,
introduced the legislation.
Representative Wilson asked //
TERESA BECK, ALASKA BOARD OF VETERINARY EXAMINERS, PALMER
(via teleconference), asked for clarification on the
question.
Representative Wilson clarified // the challenges in rural
areas.
Ms. Beck answered // the veterinarians in that area had a
very unique role //
Representative Wilson wanted to ensure it was on record
that she had received quite a few comments from the public
//
Co-Chair Foster spoke to a lack of availability of
veterinarians in rural Alaska. // the highest quality of
veterinary service in the areas. He asked for detail.
Ms. Beck answered that the board had discussed the issue.
She elaborated that highly qualified veterinarians were
needed to do the work. She characterized the work as "in
the trenches" and it was necessary to have qualified
individuals to provide the services. It was not prudent to
have someone visit a community and leave right away.
1:52:52 PM
Representative Guttenberg referred to the audit
recommendation asking the chair to be more diligent in the
annual audit //. He asked for detail.
Ms. Beck believed it pertained to a clerical error. She
explained detail about the situation. The recommendation
was for the board chair to review the document thoroughly.
Representative Guttenberg asked if Ms. Beck was satisfied
that the documents she received for review were aligned.
Ms. Beck answered in the affirmative. She detailed // the
licensing office had the secretary // it was easy for
clerical errors to occur. She was satisfied.
1:55:13 PM
Co-Chair Foster OPENED and CLOSED public testimony.
Vice-Chair Gara addressed the fiscal note from the
Department of Commerce, Community and Economic Development.
Representative Wilson pointed to page 2 of the fiscal note.
She asked who paid for staff.
JANEY HOVENDEN, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, replied that
the program absorbed the cost. The program paid for the
other incidentals. The cost was directly associated with
the cost of the board.
Representative Wilson understood the cost was related to
travel and services. She wondered why the costs would be
put out. She thought it seemed all or none would be listed.
Ms. Hovenden answered // board related costs.
Representative Wilson stated // would be a reduction of
staff. // She provided a scenario with four boards in a
year // the board was paying for time. //
2:00:03 PM
Vice-Chair Gara asked if the funding for the receipt
authority was in the operating budget.
Ms. Hovenden replied in the affirmative.
Representative Wilson MOVED to REPORT CSSB 51(FIN) out of
committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, CSSB 51(FIN) was REPORTED out of
committee with a "do pass" recommendation and with one
previously published fiscal impact note: FN1 (CED).
HOUSE BILL NO. 38
"An Act relating to the calculation and payment of
workers' compensation benefits in the case of
permanent partial impairment; relating to the
calculation and payment of workers' compensation death
benefits payable to a child of an employee where there
is no surviving spouse; relating to the calculation
and payment of workers' compensation death benefits
for an employee without a surviving spouse or child;
relating to notice of workers' compensation death
benefits; and providing for an effective date."
2:01:17 PM
Vice-Chair Gara MOVED to ADOPT the proposed committee
substitute for HB 38, Work Draft 30-LS0160\R (Wallace,
4/11/17).
Representative Wilson OBJECTED for discussion.
REPRESENTATIVE ANDY JOSEPHSON, SPONSOR, explained the bill.
House Bill 38 addressed an injustice that came to light
when Abigail Caudle, a twenty-six year-old electrical
worker, was killed on the job in 2011. Because Ms. Caudle
was unmarried and had no dependents, the workers'
compensation system paid only for her funeral expenses. HB
38 directs that when a worker dies without a spouse or
minor children, then either relatives who depended on that
worker for support, or the worker's estate, will receive a
respectful amount of compensation. HB 38 also solves the
problem of inadequate financial support of children after
their single parent dies on the job. Currently, teenagers
may receive only a few months of financial assistance
before their support is cut off when they turn eighteen.
The bill continued payment of the death benefit for five
years after the child reaches legal adulthood. Finally, HB
38 would bring more equitable compensation to workers for
permanent injuries, such as loss of an arm. One-time
payments for permanent, partial disability had not
increased since 2000, and their value had been eroded by
inflation. The bill increased the payments to off-set past
inflation, and provided an annual adjustment based on the
Anchorage Consumer Price Index.
2:10:51 PM
Vice-Chair Gara surmised that a worker's compensation claim
was often much less.
Representative Josephson replied it was generally true.
Vice-Chair Gara wondered whether there would be the same
compensation should a person lose one arm versus both arms.
Representative Josephson replied that he felt that the
compensation would increase, so the scheduled weekly wage
equivalent would increase.
PAUL KELLY, STAFF, REPRESENTATIVE ANDY JOSEPHSON, furthered
that the schedule was determined by the American Medical
Association guides, so that would determine the percentage
of permanent partial impairment that the worker would
receive.
Representative Wilson WITHDREW her OBJECTION. There being
NO OBJECTION, Work Draft 30-LS0160\R was ADOPTED.
Representative Guttenberg noted that there was an elevator
analogy where the worker received compensation, but
wondered whether the customer would receive compensation.
Representative Josephson responded that the customer would
not receive worker's compensation. He stated that there
would generally be no compensation, unless the customer
filed a claim or a lawsuit.
2:14:53 PM
Representative Guttenberg stressed that worker's
compensation was created to get the worker back to work,
and not only to create a "right or wrong." He wondered
whether there was a similar law.
Representative Josephson replied that he did not know the
answer.
2:16:26 PM
Representative Kawasaki referred to Representative
Josephson's statement related to family and friends.
Representative Josephson replied he had meant the statement
almost in a spiritual sense.
Representative Kawasaki asked how far the benefit extended.
Representative Josephson replied that the benefit ended at
the parents; if there were no parents it went to the
estate.
2:20:06 PM
Representative Kawasaki spoke about a person who was a
beneficiary of the estate. He asked for verification the
money could go to someone who was not a family member.
Representative Josephson supposed there could be a best
friend named in the will who would get the benefit.
Representative Kawasaki asked if the $100,000 was an
admission that it was the current status with inflation.
Representative Josephson replied that his staff had done
some research and the number may be as high as $140,000.
Representative Wilson pointed to agency receipts in the
fiscal note. She wondered if employers would be paying more
into workers' compensation to cover the increase.
Representative Josephson answered that the number was
$512,000, which came principally from an increase in the
PPI [personal property insurance]; it was a fiscal note
increase that would have to be collected in the event of
death. The problem was if the situation was not upgraded
they were stuck at 2000 indefinitely.
Representative Wilson did not understand where the money
was coming from. She asked for detail.
2:24:54 PM
Representative Josephson answered risk management was
funded by interagency receipts.
MARIE MARX, DIRECTOR, WORKERS' COMPENSATION DIVISION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, introduced
herself.
SHERI GRAY, RISK MANAGER, DIVISION OF RISK MANAGEMENT,
DEPARTMENT OF ADMINISTRATION, answered that the
dissemination to the agencies was through the cost of risk
agencies who were under the state's self-insurance plan for
worker's compensation. She explained that it involved the
number of full-time employees and a formula of experience
of actual worker's compensation claims and the expectation
of additional claims. She remarked that there was a complex
process, and she could not fully explain the process.
Representative Wilson surmised that the interagency
receipts were paid into the funds to pay for the possible
occurrence.
Ms. Gray answered that she did not know.
Representative Wilson stated the money had to be coming
from somewhere. She was trying to determine the fiscal
impact. She asked the department to follow up. She
understood the note was indeterminate.
Ms. Gray answered that the allocations to the agencies were
done on an annual basis and were based on 80 percent of
prior five years claims and 20 percent of expected claims.
The process it was spread out through agencies, so they
were not taking the full brunt.
2:29:37 PM
Representative Wilson asked if there was a specific fund
where the money was collected into.
Ms. Gray replied in the affirmative.
Representative Wilson asked how it was done.
Ms. Gray would follow up.
Vice-Chair Gara stated there was an annual contribution by
agencies, and remarked in some years where there was not
enough money there would have to be an additional
appropriation.
Ms. Gray agreed to follow up with additional information.
2:30:49 PM
MARIANNE BURKE, MOTHER OF ABIGAIL CAUDLE, ANCHORAGE (via
teleconference), testified that she was the mother of
Abigail Caudle. Her daughter had been up on a ladder
working and inadvertently touched a live wire. She had not
been revived. It had been very difficult to understand that
there was no liability to the employer. Abigail had been
given nothing for her life. She continued to explain the
situation. She was frustrated there had been no justice.
She could not go to civil court, and could only pursue
workers' compensation. She asked the committee members to
consider the value of their children's lives. She thought
$20,000 was an insult to the value of life. She wondered
what was wrong with Alaska being number one in recognizing
human life. She stressed that the accident had not been her
daughter's fault. She urged the committee to pass the bill.
2:37:50 PM
Vice-Chair Gara expressed his sympathy.
Ms. Burke looked at Chapter 25 of Alaska State Statute,
which was the "Defective Machinery Act." She stressed that
in that statute, the employer was liable, but she had
received to recognition of that statute.
[Co-Chair Seaton joined the meeting]
Co-Chair Foster indicated that Mr. Kelly had a short
presentation.
2:39:58 PM
Mr. Kelly provided a PowerPoint presentation titled "HB 38:
Abigail Caudle Act" (copy on file):
The estate of a single worker with no dependents who
dies on the job has no remedy
protect these employees
PPI