Legislature(2019 - 2020)BARNES 124
03/25/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| HB79 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 30 | TELECONFERENCED | |
| += | HB 79 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 25, 2019
3:17 p.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Adam Wool, Co-Chair
Representative Zack Fields
Representative Sara Hannan
Representative Louise Stutes
Representative Dave Talerico
MEMBERS ABSENT
Representative Josh Revak
COMMITTEE CALENDAR
HOUSE BILL NO. 30
"An Act relating to the exclusiveness of liability of an
employer in the case of death; relating to the payment of
workers' compensation benefits in the case of permanent partial
impairment; relating to notice of workers' compensation death
benefits; relating to the payment of workers' compensation death
benefits payable to a child of an employee where there is no
surviving spouse; relating to the payment of workers'
compensation death benefits for an employee without a surviving
spouse or child; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 79
"An Act relating to participation of certain peace officers and
firefighters in the defined benefit and defined contribution
plans of the Public Employees' Retirement System of Alaska;
relating to eligibility of peace officers and firefighters for
medical, disability, and death benefits; relating to liability
of the Public Employees' Retirement System of Alaska; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 30
SHORT TITLE: WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
02/20/19 (H) PREFILE RELEASED 1/11/19
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) L&C, FIN
03/25/19 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 79
SHORT TITLE: PEACE OFFICER/FIREFIGHTER RETIRE BENEFITS
SPONSOR(s): REPRESENTATIVE(s) KOPP
03/06/19 (H) READ THE FIRST TIME - REFERRALS
03/06/19 (H) L&C, FIN
03/20/19 (H) L&C AT 3:15 PM BARNES 124
03/20/19 (H) Heard & Held
03/20/19 (H) MINUTE(L&C)
03/22/19 (H) L&C AT 3:15 PM BARNES 124
03/22/19 (H) Heard & Held
03/22/19 (H) MINUTE(L&C)
03/25/19 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE ANDY JOSEPHSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 30.
ELISE SORUM-BIRK, Staff
Representative Andy Josephson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
30, on behalf of Representative Josephson, prime sponsor.
REPRESENTATIVE CHUCK KOPP
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered comments on HB
79.
ACTION NARRATIVE
3:17:50 PM
CO-CHAIR ADAM WOOL called the House Labor and Commerce Standing
Committee meeting to order at 3:17 p.m. Representatives Fields,
Hannan, Stutes, Talerico, and Wool were present at the call to
order. Representative LeDoux arrived as the meeting was in
progress.
HB 30-WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR
3:18:38 PM
CO-CHAIR WOOL announced that the first order of business would
be HOUSE BILL NO. 30, "An Act relating to the exclusiveness of
liability of an employer in the case of death; relating to the
payment of workers' compensation benefits in the case of
permanent partial impairment; relating to notice of workers'
compensation death benefits; relating to the payment of workers'
compensation death benefits payable to a child of an employee
where there is no surviving spouse; relating to the payment of
workers' compensation death benefits for an employee without a
surviving spouse or child; and providing for an effective date."
3:18:44 PM
The committee took a brief at-ease at 3:18 p.m.
3:18:53 PM
REPRESENTATIVE STUTES moved to adopt the CS for HB 30, Version
31-LS0280\U, Marx, 1/24/19, as the working document. There being
no objection Version U was before the committee.
3:19:27 PM
REPRESENTATIVE ANDY JOSEPHSON, Alaska State Legislature, as
prime sponsor of HB 30, paraphrased parts of the sponsor
statement [included in the committee packet], which read in its
entirety as follows [original punctuation provided]:
In 2011, a 26-year-old electrical worker, Abigail
Caudle, lost her life to employer- workplace
negligence. Hers was a wrongful death warranting
compensation. Under current Alaska statute, when a
worker without children, a spouse, or dependents dies
due to a work-related injury, their family only
receives reimbursement for the cost of the funeral,
and under worker compensation law, are unable to sue
for wrongful death.
House Bill 30 (HB 30) rectifies this issue and others
in the state's current system and brings Alaska's
compensation levels for injury, illness or death of
workers into the present.
HB 30 specifies that when an employee dies without
having a spouse or minor children, parents of the
deceased can elect to either take legal action against
the employer or receive a death benefit compensation
of $120,000. If there are no surviving parents, this
benefit is payable to the estate of the deceased.
Unmarried, childless workers are the only class of
worker that does not receive some form of death
benefit compensation. HB 30 allows parents of the
deceased appropriate compensation and helps alleviate
the burden of any debt of the deceased. It is time for
Alaska to join the 13 other states offering
compensation to families of workers who die from a
work-related injury or illness but have no eligible
dependents.
HB 30 addresses the problem of inadequate financial
support for older children after their single parent
dies on the job. Currently, financial support is cut
off when children turn 18. The bill provides for
support payments to extend for five years after a
child reaches legal adulthood.
HB 30 encourages equitable compensation for workers
suffering from permanent injuries or illnesses by
adjusting the base Permanent Partial Impairment (PPI)
values for inflation and provides for an annual
adjustment based on the Anchorage Consumer Price
Index. The Permanent Partial Impairment index has not
been adjusted in 18 years.
HB 30 conservatively increases the aggregate wage
benefits for financially dependent parents,
grandchildren, brothers and sisters of the deceased
from a limit of $20,000 to a limit of $150,000. This
amount hasn't been adjusted for inflation in a
staggering 53 years.
The current values for these benefits are egregious
and warrant serious change. I invite you to discuss
this issue with me further and urge you to support
this legislation.
CO-CHAIR WOOL sought clarification on the benefit if the
deceased had a spouse or child.
REPRESENTATIVE JOSEPHSON answered that scenario becomes a
variable depending on how old the child is and whether the
spouse remarries. If the spouse remarries the benefit could be
as short as two years. He further stated that the maximum
benefit that a family [with dependents] could receive is in the
range of 850,000 dollars spread out over many years.
CO-CHAIR WOOL asked where that payment would come from.
REPRESENTATIVE JOSEPHSON answered workers' compensation
insurance.
3:26:35 PM
REPRESENTATIVE FIELDS recalled that in the past, fines have been
somewhat inconsistent in terms of determining the value of a
human life when it comes to workplace death. He said that he
remembers them being very low for many years until the most
recent deaths, which were the result of negligence, and finally
resulted in a meaningful penalty. He asked if this was true.
REPRESENTATIVE JOSEPHSON replied that he would follow up on
that. He returned to the second part of the bill, explaining
that it increases the beneficiaries' compensation from 20,000
dollars, which was implemented in 1966, to 150,000 dollars on
account of inflation. The third feature of the bill updates the
Permanent Partial Impairment (PPI) ratings. He explained when
someone loses their hand an economic value is placed on that
limb, noting that the value of a human hand hasn't changed in 19
years.
3:30:15 PM
CO-CHAIR LEDOUX offered her understanding that there would be no
difference in benefits between an individual who loses a limb
that their job depends on and an individual who loses a limb
that their job doesn't depend on; for example, a surgeon who
loses a hand and a economist who loses a hand. She asked if
this was correct.
3:31:13 PM
ELISE SORUM-BIRK, Staff, Representative Andy Josephson, Alaska
State Legislature, on behalf of Representative Josephson, prime
sponsor of HB 30, acknowledged that Co-Chair LeDoux's
understanding was correct. She stated that PPI in Alaska is a
specific percentage multiplied by 177,000. She referred the
committee to a chart provided in the committee packet. The
chart displayed the PPI benefit comparisons and percentages
based on body part. For example, the amputation of a dominant
arm is considered a 60 percent impairment. She said it doesn't
consider whether the individual needed their arm for their
profession, just that the individual lost their [dominant] arm
at all.
3:31:57 PM
REPRESENTATIVE JOSEPHSON confirmed Ms. Sorum-Birk's
understanding. He explained that the PPI needs some adjustment
as well. He asked the committee to consider an additional
feature of the bill, directing them to page 2, lines 8-10 of the
CS. Essentially, it allows the family of the deceased to elect
between workers' compensation or taking legal action. He noted
there are several other states that have similar laws, including
Arizona and Minnesota. He said it can be a complicated issue
and suggested that the committee focus on certain critical
aspects during future hearings, such as attorney fees for
personal injury action.
REPRESENTATIVE JOSEPHSON directed attention to the PowerPoint
presentation [included in the committee packet] entitled, "HB 30
The Abigail Caudle Act." He informed the committee that Abigail
Caudle was a young electrical worker who lost her life in the
workplace with no compensation (slide 2). One of the current
bill's major goals is to extend death benefits to single workers
with no dependents and provide parents/estates of these workers
a financial or legal remedy (slide 3).
3:38:26 PM
CO-CHAIR LEDOUX directed attention to page 2, lines 7-14 of the
CS and asked if an injury such as total paralysis would warrant
legal action against the employer.
REPRESENTATIVE JOSEPHSON replied legal action could only be
taken when someone dies.
3:39:04 PM
REPRESENTATIVE FIELDS stated it's time the legislature sent a
strong message that employers should take every effort to
prevent employees' death on the job given there hasn't been
adequate punishment in the past.
CO-CHAIR WOOL questioned whether workplace death was an
infrequent occurrence.
REPRESENTATIVE JOSEPHSON answered very infrequent.
3:39:45 PM
CO-CHAIR LEDOUX directed attention to page 2, lines 13-14 of the
CS. She questioned whether the word "wilful" means intentional
or reckless. She offered her understanding that "wilful" would
imply more than simple negligence and asked if that was correct.
REPRESENTATIVE JOSEPHSON answered absolutely. He said that word
was chosen because the state of Arizona also uses it in statute.
REPRESENTATIVE JOSEPHSON, responding to a follow-up question
from Co-Chair LeDoux, stated that "wilful" indicates more than
recklessness. He added this language raises some concern in
that it could be a point of "tremendous litigation."
3:41:05 PM
REPRESENTATIVE FIELDS offered his belief that "wilful" was an
appropriate word choice
REPRESENTATIVE JOSEPHSON directed attention to slide 3 and
related that increasing the PPI rates for inflation is a top
priority in HB 30. Adjusting the rate of death benefit paid to
non-child dependents, which was last updated in 1966, is another
major goal. He noted the current bill also allows dependent
children to continue to receive benefits for five years
following legal adulthood.
3:42:42 PM
CO-CHAIR WOOL questioned whether 5 years was chosen arbitrarily.
REPRESENTATIVE JOSEPHSON said that it was, in a sense,
arbitrary. The Affordable Care Act (ACA) was a point of
reference, as it treats "college-age people" as being eligible
for their parents' healthcare.
REPRESENTATIVE JOSEPHSON returned to the presentation. Under
current law single workers without dependents are the only class
of worker who receives no death benefit - parents cannot sue or
collect workers' compensation; however, HB 30 amends AS
23.30.055 [Exclusiveness of liability] to allow the parent or
estate of the deceased a choice between taking legal action
against the employer or receiving compensation through workers'
compensation. HB 30 also adds a new subsection under AS
23.30.215(a) to provide a death benefit for single workers
without dependents of 120,000 dollars payable to parents or
estate (slide 4). PPI rates have not been adjusted for
inflation since 2000. HB 30 adjusts the amount of 177,000
dollars to 255,854 dollars to account for inflation and ties
this figure to the Anchorage Consumer Price Index (slide 5).
Under AS 23.30.215(a)(4) the death benefit paid to a dependent
father, mother, grandchild, brother or sister is a maximum of
only 20,000 dollars - an amount set in 1966. HB 30 amends this
statute to adjust for inflation and sets the new maximum amount
at 150,000 dollars (slide 6). Representative Josephson further
noted that the current bill made it through the House last year
and then died in the Senate Finance committee.
3:48:01 PM
REPRESENTATIVE HANNAN asked how the benefit would be calculated
if Abigail Caudle had been married without children.
REPRESENTATIVE JOSEPHSON replied it would be based on her
spendable weekly earnings, adding that her husband would have
enjoyed some sort of maintenance for a period of time.
3:48:51 PM
MS. SORUM-BIRK, in response to Representative Hannan, stated
that the compensation would be 90 percent of the workers'
spendable, after-tax weekly wages. She added that the statutory
limit is 12 years.
REPRESENTATIVE HANNAN asked if there are any states that
compensate a workers' death regardless of marital status.
REPRESENTATIVE JOSEPHSON answered yes.
REPRESENTATIVE HANNAN sought to understand the rationale for
differentiating between married and unmarried couples when
determining compensation.
REPRESENTATIVE JOSEPHSON said Representative Hannan's point was
noted; however, that particular issue doesn't pertain to the
current bill. He added that an individual must be married and
not just cohabiting [to receive benefits] under HB 30.
REPRESENTATIVE HANNAN pointed out that there are many groups in
Alaska that allow benefits despite marital status and asked why
the current bill uses it as the determining factor for
compensation.
REPRESENTATIVE JOSEPHSON noted that marriage is not the only
determinant as dependents are also takes into consideration.
3:52:37 PM
CO-CHAIR WOOL mentioned that the current bill isn't to be
construed as a penalty; alternatively, it is compensation for
someone's loss of wage-earning ability. It also takes into
consideration what that effect might be on their dependents.
REPRESENTATIVE JOSEPHSON established a scenario in which both an
employee and a customer die after the elevator breaks in a large
department store. He explained under current Alaska law, if the
employee was single and had no children, he or she would only
receive a 10,000-dollar funeral reimbursement, whereas the
customer's estate could receive millions of dollars. He
expressed concern with the difference in compensation between
the two.
3:54:11 PM
CO-CHAIR WOOL announced that HB 30 was held over.
HB 79-PEACE OFFICER/FIREFIGHTER RETIRE BENEFITS
3:54:18 PM
CO-CHAIR WOOL announced that the final order of business would
be HOUSE BILL NO. 79, "An Act relating to participation of
certain peace officers and firefighters in the defined benefit
and defined contribution plans of the Public Employees'
Retirement System of Alaska; relating to eligibility of peace
officers and firefighters for medical, disability, and death
benefits; relating to liability of the Public Employees'
Retirement System of Alaska; and providing for an effective
date."
3:54:54 PM
REPRESENTATIVE CHUCK KOPP, Alaska State Legislature, as prime
sponsor, stated HB 79 is a new defined benefits bill that was
modeled after some of the most successful pension plans in the
nation. He opined advancing the current bill would provoke a
discussion that is long overdue. He continued by highlighting
testimony from public safety agencies that addressed a divide
between Tier 3 and Tier 4 employees. Essentially, he said,
Alaska has become a "five-and-out" training ground that's
costing agencies and the state millions of dollars in lost
training expenses. Representative Kopp implored committee
members to consider if the legislature is adequately addressing
public safety concerns. He offered his understanding from
hearing previous testimony that the primary issue driving the
recruitment and retention problems within public safety agencies
is the current Tier 4 system, adding HB 79 is a solution that
doesn't increase the liability to the state. He shared his
belief that if HB 79 advances and turns out to be successful, it
would improve employee retention as well as the public safety of
Alaskans and ultimately, the state could apply it to a broader
group of employees.
3:59:42 PM
The committee took a brief at-ease at 3:59 p.m.
4:00:04 PM
CO-CHAIR WOOL acknowledged that the previous public testimony
was persuasive and compelling.
REPRESENTATIVE HANNAN expressed concern that the current bill
does not go far enough, adding she would like to see a stronger
health plan and more employees covered. She mentioned she would
like to see young Alaskans stay in Alaska. She further noted
that she intends on supporting HB 79 but would have hoped that
it went further to incorporate more employees.
4:03:05 PM
CO-CHAIR LEDOUX stated she was around during the former defined
contributions bill and that she was one of the few Republicans
in the House that voted against it. She agreed with
Representative Hannan that she would also like to see HB 79
cover more employees. Nonetheless, she said she viewed the
current bill as a "pilot project" and encouraged others to give
it a chance to work.
4:04:47 PM
REPRESENTATIVE FIELDS shared his support and stated that he
would be curious to see what would happen if there were a
broader pool of public employees.
CO-CHAIR WOOL thanked Representative Kopp and said he shared the
sentiments of his colleagues. He offered his belief that a
smaller "pilot project" like this might be more palatable and
then changes could be made later.
4:06:41 PM
REPRESENTATIVE KOPP acknowledged the importance of proving that
this model works in order to demonstrate a path "towards a
better tomorrow" for other employees.
4:07:25 PM
The committee took a brief at-ease at 4:07 p.m.
4:08:11 PM
CO-CHAIR WOOL announced that HB 79 was held over.
4:08:44 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor & Commerce Standing Committee meeting was adjourned at
4:08 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 30.Sponsor Statement.pdf |
HL&C 3/25/2019 3:15:00 PM HL&C 4/5/2019 3:15:00 PM HL&C 4/8/2019 3:15:00 PM |
HB 30 |
| HB 30.Bill Version A.pdf |
HL&C 3/25/2019 3:15:00 PM |
|
| HB 30.Sectional Analysis.pdf |
HL&C 3/25/2019 3:15:00 PM HL&C 4/5/2019 3:15:00 PM |
HB 30 |
| HB 30.Fiscal Note DOA.pdf |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB 30.Fiscal Note DOLWD.pdf |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup PPI Cost Increase Estimate.pdf |
HL&C 3/25/2019 3:15:00 PM HL&C 4/5/2019 3:15:00 PM HL&C 4/8/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup PPI By State.pdf |
HL&C 3/25/2019 3:15:00 PM HL&C 4/8/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup Workers Comp Benefits.pdf |
HL&C 3/25/2019 3:15:00 PM HL&C 4/8/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup Similar Legislation.pdf |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup Support Letter Caudle Family.pdf |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup Support Letter Alaska Council of Laborers.pdf |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB 30.Backup Overview Presentation.pptx |
HL&C 3/25/2019 3:15:00 PM |
HB 30 |
| HB79 version U.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 79 |
| HB79 Sponser Statement ver U.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM |
HB 79 |
| HB79 Sectional Analysis ver U 3.12.2019.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 79 |
| HB79 Additional Information APFO Recruitment Retention Report 3.11.2019.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM |
HB 79 |
| HB79 Additional Information DPS Commissioned Employee Engagement Survey Results Overview December 2017 3.11.2019.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 79 |
| HB79 PERS Tier Comparisons for Bill 3.18.2019.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 79 |
| HB 79. Backup. Letter of Opposition.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 79 |
| HB 79. Backup. Letters of Support.pdf |
HL&C 3/20/2019 3:15:00 PM HL&C 3/22/2019 3:15:00 PM HL&C 3/25/2019 3:15:00 PM |
HB 79 |