Legislature(2021 - 2022)ADAMS 519
02/28/2022 02:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB64 | |
| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 64 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 28, 2022
2:40 p.m.
2:40:47 PM
CALL TO ORDER
Co-Chair Merrick called the House Finance Committee meeting
to order at 2:40 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Kelly Merrick, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Bryce Edgmon
Representative DeLena Johnson
Representative Andy Josephson
Representative Bart LeBon
Representative Sara Rasmussen
Representative Steve Thompson
Representative Adam Wool
MEMBERS ABSENT
Representative Ben Carpenter
ALSO PRESENT
Fate Putman, Staff, Representative Louise Stutes; Jerry
McCune, Cordova District Fisherman United, Juneau;
Representative Andy Josephson, Sponsor; Kevin Smith,
Executive Director, Alaska Municipal League Joint Insurance
Association, Juneau.
PRESENT VIA TELECONFERENCE
Phil Doherty, Executive Director, Southeast Alaska Regional
Dive Fisheries Association, Ketchikan; Wes Humbyrd, Self,
Homer; Eric Croft, Former Legislator, Anchorage; Kim Hays,
AFL-CIO, Anchorage.
SUMMARY
HB 30 WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR
CSHB 30(FIN) was REPORTED out of committee with
seven "do pass" recommendations and three "no
recommendation" recommendations and with one
previously published zero fiscal note: FN3
(Gov/Various); and two previously published
fiscal impact notes: FN4 (ADM) and FN5 (LWF).
HB 64 FISHERY DEVELOPMENT ASSOC.; ASSESSMENTS
CSHB 64(FSH) was REPORTED out of committee with
five "do pass" recommendations and four "no
recommendation" recommendations and with one
previously published zero fiscal note: FN3 (DFG);
and two previously published indeterminate fiscal
notes: FN4 (DFG) and FN5 (REV).
Co-Chair Merrick reviewed the meeting agenda.
HOUSE BILL NO. 64
"An Act relating to regional fishery development
associations; and relating to developing fishery
management assessments."
2:41:42 PM
Co-Chair Merrick noted the bill had been previously heard
on February 2.
FATE PUTMAN, STAFF, REPRESENTATIVE LOUISE STUTES, relayed
that the bill would establish regional fishery development
associations to allow for the development of fishery
management assessments in order to support the growth of
new and developing fisheries. He explained that regional
fishery development association fisheries were perspective
fisheries within geographic regions of the state not
currently regulated by the Commercial Fisheries Entry
Commission (CFEC). In the case of new and developing
fisheries, the funding was there to help the fisheries get
started and to conduct surveys and assessments in order for
the Department of Fish and Game (DFG) to open the
fisheries. He highlighted that the bill created a mechanism
to fund the management and new development of fisheries and
allowed for the creation of regional fishery development
associations. He described the associations as nonprofit
organizations representing the fishery stakeholders that
may elect to levy an assessment upon themselves to help pay
for the studies.
Co-Chair Merrick OPENED public testimony.
2:43:14 PM
AT EASE
2:44:38 PM
RECONVENED
JERRY MCCUNE, CORDOVA DISTRICT FISHERMAN UNITED, JUNEAU,
testified in support of the bill. He detailed the
organization had worked with the bill sponsor to develop a
bill that would finance new fisheries. He explained that
due to the budget crisis DFG did not have the funding to
address every new fishery. He detailed that the bill would
enable the financing of some wintertime fisheries in
Cordova including sea cucumbers, crab, and potentially a
new herring fishery near Cape Suckling. The organization
was exploring whether it was possible to generate work in
the winter for fishermen.
PHIL DOHERTY, EXECUTIVE DIRECTOR, SOUTHEAST ALASKA REGIONAL
DIVE FISHERIES ASSOCIATION (SARDFA), KETCHIKAN (via
teleconference), testified in support of the bill. He
relayed that SARDFA was the only fishing association that
was set up "such as under HB 64." He stated the association
had been working under its own legislative rules since
1998. The funds had been generated to allow dive fisheries
in Southeast Alaska to help pay the State of Alaska for
management of three species including sea cucumbers, sea
urchins, and geoduck clams. He explained that monies
generated from the fisheries paid DFG for its management
and assessment. He reported the three fisheries combined
had a vessel value of $15 million. He elaborated that
SARDFA had been started because at the time, DFG did not
have the funds to conduct management or assessment of the
three dive fisheries. The method had worked very well. He
relayed the fisheries were ongoing throughout the winter
and employed 70 to 100 divers, crew members, boats, and
companies.
WES HUMBYRD, SELF, HOMER (via teleconference), shared that
he was a commercial fisherman in all different species of
fisheries. He relayed he is a member of the Cook Inlet
Drift Association and noted there was also aquaculture in
Cook Inlet. He stated that a 2 percent tax was taken from
Cook Inlet fishermen and the fishermen did not get anything
back. He hoped that if the bill passed, the legislature
would make certain the fishery saw some type of recovery
from the tax. He relayed that he had friends who fished in
Bristol Bay, Cook Inlet, and other areas in the state. He
reported one of his friends made $300,000 fishing in
Bristol Bay the previous year. He suggested going back to
an income tax and giving some of the generated funds to DFG
to enable it to do its job. He had worked for DFG years
back and recalled hearing the state had no money. He
implored the legislature to figure out a way to get money
without taxing the people if they were not going to get
anything back from it. He stressed the Cook Inlet fishery
did not get anything back from the tax it paid into
aquaculture. He provided a personal example related to
taxes. He emphasized that people coming to Alaska and
generating revenue from the different fisheries needed to
start paying something. He saw where the bill could work
for certain fisheries.
2:50:33 PM
Co-Chair Merrick CLOSED public testimony.
Mr. Putman noted there was an individual available online
to answer any questions.
Co-Chair Merrick noted Representative Wool and
Representative Thompson had joined the meeting.
2:51:32 PM
AT EASE
2:51:41 PM
RECONVENED
Co-Chair Foster MOVED to REPORT CSHB 64(FSH) out of
committee with individual recommendations and the
accompanying fiscal notes.
CSHB 64(FSH) was REPORTED out of committee with five "do
pass" recommendations and four "no recommendation"
recommendations and with one previously published zero
fiscal note: FN3 (DFG); and two previously published
indeterminate fiscal notes: FN4 (DFG) and FN5 (REV).
2:52:07 PM
AT EASE
2:53:19 PM
RECONVENED
HOUSE BILL NO. 30
"An Act relating to notice of workers' compensation
death benefits; relating to the payment of workers'
compensation benefits in the case of permanent partial
impairment; relating to the payment of workers'
compensation death benefits; and providing for an
effective date."
2:53:23 PM
Co-Chair Merrick reported the bill had last been heard on
February 2. She asked for a brief review of the
legislation.
REPRESENTATIVE ANDY JOSEPHSON, SPONSOR, reintroduced the
bill. He noted that the bill had been previously introduced
st
under the same number in the 31 legislature. The bill was
almost identical to the version that passed the House in
2020. He explained the bill did three major things. First,
the bill updated permanent partial impairment rates for the
for the whole body to reflect inflation. He noted the rates
had not been addressed since 2000. Second, the bill updated
a death benefit for non-nuclear family dependents that had
not been updated in over 50 years and adjusted two other
death benefit amounts for inflation. The bill did not
change how death benefits were calculated in general, since
the calculation in Alaska was tied to the average weekly
wage. Third, subject to a forthcoming amendment to be heard
by the committee, the bill would provide employees notice
about death benefits, specifically about the lack of
benefits for single workers. Additionally, the bill would
allow dependent children who were orphaned because their
single parent died on the job, to receive death benefits
th
for an additional five years following their 19 birthday.
He noted it had already been true, but the bill would
expand the group of 19 year-olds who would receive a death
benefit.
Co-Chair Merrick noted Representative Edgmon had joined the
meeting.
Representative Johnson stated the last time the bill head
been heard Representative Josephson had referenced the
grand bargain of give and take between employers and
employees. She asked for a recap.
Representative Josephson complied. He explained there would
be numerous tort actions (personal injury actions) if there
was not a workers' compensation system; employees injured
at work would sue their employers frequently. Workers could
sue employers under the workers' compensation statute if
they were deprived of benefits. The system was designed to
be a win-win for employers and employees, also known as the
grand bargain. He explained the win for the employer was it
was insurable, the costs were forecast, they knew what they
were getting into, and they would not be sued directly or
personally. The win for the employee was they were entitled
to maintenance and rehabilitation if they could prove they
were injured at work.
2:56:49 PM
Co-Chair Merrick OPENED public testimony.
KEVIN SMITH, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE
JOINT INSURANCE ASSOCIATION, JUNEAU, believed there were a
couple of problems with the bill. He stated that
Representative LeBon's [forthcoming] amendment would take
care of most of the problems. He believed the permanent
partial impairment (PPI) had not been updated in long
enough that he did not have a problem with having to pay a
bit more. However, he stated "we're not ready for" the
other tweaks to the law. He encouraged the committee to
adopt an amendment by Representative LeBon. Otherwise, he
opposed the bill without the amendment. He had provided a
letter to the committee following the previous hearing on
the bill that outlined the position.
Vice-Chair Ortiz asked what the statement "we are not ready
for that kind of change" meant.
Mr. Smith answered that he was personally not ready for the
change. Additionally, the members of Alaska Municipal
League Joint Insurance Association (158 cities and school
districts) were not ready for the change. He pointed out
that Representative Josephson had indicated earlier that
the things could be figured out ahead of time and actuarily
predicted. However, he noted it had not been done in the
bill for the Joint Insurance Association.
2:59:44 PM
Representative Josephson asked for clarity on what Mr.
Smith's reference to "that kind of change" meant.
Mr. Smith answered, "Increased cost."
Representative Josephson stated that the bill's primary
feature was updating the PPI that was 22 years old. He
referenced a statement in a letter written by Mr. Smith
that the amounts paid for PPI had not changed in many years
and it was appropriate for them to be updated. He asked if
Mr. Smith agreed that the action was fundamentally all the
legislation would do if the amendment [by Representative
LeBon] was adopted.
Mr. Smith disagreed. He stated the bill also put a burden
on employers to notify people of changes proposed in the
legislation with respect to death benefits. He added there
were other changes.
Representative Josephson noted that the amendment would
remove the things Mr. Smith had mentioned.
Representative Wool asked if the adoption of the amendment
would resolve Mr. Smith's concerns. He asked if the
notification and cost was specifically the issue.
Mr. Smith answered that the amendment would resolve his
concerns.
3:01:43 PM
ERIC CROFT, FORMER LEGISLATOR, ANCHORAGE (via
teleconference), stated that the bill was appropriate,
particularly after the amendment, though he thought the
notice provisions were appropriate previously. He
highlighted that [the PPI] had not been increased since
2000. He stated the benefit in the bill was the benefit for
workers who went back to work. He explained that the
benefit for workers who did not go back to work who were
disabled and received a disability benefit was indexed to
the average weekly wage. He detailed that the disability
benefit rose along with wage increases. The bill applied to
workers who faced a work-related medical challenges who
recovered and returned to work. He shared that his law
office represented injured workers. He provided a personal
story about a paralegal who had worked in his office who
had lost her eye due to eye cancer a couple of years back.
She had been able to return to work and the loss of her eye
had not impacted her earning capacity at the time. The bill
applied to injured workers who went back to work and were
not claiming disability. He believed increasing the PPI for
inflation was appropriate. He shared that he had testified
in support of a separate bill earlier in the day to index
campaign limits to inflation; the limits had not been
increased in 15 years. He believed the current bill was as
important and the PPI had not been increased in over 20
years.
3:05:17 PM
KIM HAYS, AFL-CIO, ANCHORAGE (via teleconference), shared
information about the organization representing more than
50,000 union members across the state. She spoke in support
of the legislation. She noted the organization had
submitted a letter of support to the committee. She stated
that the bill did just what the organization worked toward:
providing dignity for work done for those injured or killed
on the job. She underscored that the workplaces in Alaska
were dangerous and workers in the state were proud of the
work even in the face of danger. She spoke to the
importance for the State of Alaska and employers to honor
the working commitment. One way to honor the commitment was
through PPI benefits. She detailed that when a person was
injured on the job permanently, it altered the person's
life and ability to work. She highlighted it had been 22
years since the PPI rate had been increased. She pointed
out that much had changed during the timeframe including
the cost of goods and housing. She believed it was only
fair to adjust the PPI benefit upwards.
Ms. Hays reported that Alaska currently ranked among the
states with the lowest PPI benefit. She believed it was
time to correct the issue. She stated that PPI existed to
honor the sacrifice of a worker injured on the job.
Additionally, the benefit provided a safety net for workers
searching for new work and adjusting to a new reality. The
bill also increased the funeral expenses for individuals
killed on the job. She stressed it was paramount for
families of Alaskans killed at work to not have to worry
about the expenses. She stated the workers' compensation
system, including PPI and death benefits, was part of the
grand bargain discussed by Representative Johnson and
Representative Josephson earlier in the meeting. She hoped
the legislature would elect to update the outdated
benefits.
3:07:52 PM
Co-Chair Merrick CLOSED public testimony.
Representative LeBon MOVED to ADOPT Amendment 1, 32-
LS0238\A.2 (Marx, 2/26/22):
Page 1, line 1:
Delete "relating to notice of workers' compensation
death benefits;"
Page 1, line 6, through page 2, line 10:
Delete all material.
Page 2, line 11:
Delete "Sec. 2"
Insert "Section 1"
Renumber the following bill sections accordingly.
Page 2, line 21, through page 3, line 4:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, line 5:
Delete "2022"
Insert "2023"
Co-Chair Merrick OBJECTED for discussion.
Representative LeBon explained the amendment would remove
Sections 1 and 3 and change the effective date. He
elaborated that Section 1 had created a requirement for
employers to notify employees at the time of hire regarding
types of compensation available in the event of a work-
related death, notably regarding lack of availability for
death benefits for a single childless worker. He stated the
requirement presented an undue burden on employers and
likely created more questions than answers. He expounded in
the unfortunate event an employee needed program benefits,
specific information pertinent to their situation would be
available at that time.
Representative LeBon explained that Section 3 had added a
requirement for employers to provide notification to a
personal representative regarding the list of legal counsel
and grief counselors. He relayed the section was a problem
as employers were prohibited from directing medical care
and should not be held responsible for providing guidance
on legal counsel or grief counselors. Additionally, the
personal representatives could also be unknown for a period
of time. He stated that in a situation where the personal
representative was unknown, the bill provision added a
burden on employers to have to "chase after folks on the
list" if the personal representative was not immediately
available. He continued that an employer would have no way
of knowing the standing relationship with the employee,
spouse, or other family members. He relayed that generally
employees provide an emergency contact and employers should
have the right and obligation to contact the individual.
Lastly, the bill's effective date was changed from January
1, 2022 to January 1, 2023.
3:10:39 PM
Co-Chair Merrick WITHDREW her OBJECTION.
There being NO further OBJECTION, Amendment 1 was ADOPTED.
Co-Chair Foster MOVED to REPORT CSHB 30(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
CSHB 30(FIN) was REPORTED out of committee with seven "do
pass" recommendations and three "no recommendation"
recommendations and with one previously published zero
fiscal note: FN3 (Gov/Various); and two previously
published fiscal impact notes: FN4 (ADM) and FN5(LWF).
Co-Chair Merrick reviewed the schedule for the following
day.
ADJOURNMENT
3:11:51 PM
The meeting was adjourned at 3:11 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 30 Rep. LeBon Amd A.2.pdf |
HFIN 2/28/2022 2:30:00 PM |
HB 30 |