Legislature(2015 - 2016)BILL RAY CENTER 208
06/06/2016 08:00 AM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB4002 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB4002 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
June 6, 2016
10:05 a.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
OTHER LEGISLATORS PRESENT
Representative Lora Reinbold
COMMITTEE CALENDAR
HOUSE BILL NO. 4002
"An Act relating to major medical insurance coverage under the
Public Employees' Retirement System of Alaska for certain
surviving spouses and dependent children of peace officers and
firefighters; and providing for an effective date."
- WAIVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 4002
SHORT TITLE: INS. FOR DEPENDS. OF DECEASED FIRE/POLICE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
05/23/16 (H) READ THE FIRST TIME - REFERRALS
05/23/16 (H) L&C, FIN
05/26/16 (H) L&C AT 11:00 AM BILL RAY CENTER 208
05/26/16 (H) Heard & Held
05/26/16 (H) MINUTE(L&C)
05/31/16 (H) L&C AT 1:15 PM BILL RAY CENTER 208
05/31/16 (H) -- MEETING CANCELED --
06/01/16 (H) L&C AT 1:15 PM BILL RAY CENTER 208
06/01/16 (H) Heard & Held
06/01/16 (H) MINUTE(L&C)
06/02/16 (H) L&C AT 1:15 PM BILL RAY CENTER 208
06/02/16 (H) -- MEETING CANCELED --
06/03/16 (H) L&C AT 11:00 AM BILL RAY CENTER 208
06/03/16 (H) Heard & Held
06/03/16 (H) MINUTE(L&C)
06/04/16 (H) L&C AT 11:00 AM BILL RAY CENTER 208
06/04/16 (H) Heard & Held
06/04/16 (H) MINUTE(L&C)
06/06/16 (H) L&C AT 8:00 AM BILL RAY CENTER 208
WITNESS REGISTER
MARIE MARKS, Director
Division of Workers' Compensation
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
4002.
SCOTT JORDAN, Director
Division of Risk Management
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
4002.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking on behalf of Representative Olson,
answered questions during the hearing on HB 4002.
ACTION NARRATIVE
10:05:01 AM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 10:05 a.m. Representatives Olson,
Colver, Tilton, Kito, Josephson, and LeDoux were present at the
call to order. Representative Hughes arrived as the meeting was
in progress. Also present was Representative Reinbold.
HB4002-INS. FOR DEPENDS. OF DECEASED FIRE/POLICE
10:05:16 AM
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 4002, "An Act relating to major medical insurance
coverage under the Public Employees' Retirement System of Alaska
for certain surviving spouses and dependent children of peace
officers and firefighters; and providing for an effective date."
10:06:47 AM
MARIE MARKS, Director, Division of Workers' Compensation,
Department of Labor & Workforce Development, in response to
Chair Olson, said the division is researching data on 22
fatalities in 2015 in order to determine the number of police
officers, firefighters, or State of Alaska employees.
CHAIR OLSON said the completed data will be provided to the
House Finance Committee. He then asked for information on death
benefits provided under workers' compensation.
MS. MARKS informed the committee that under the terms of the
Alaska Workers' Compensation Act, when an employee suffers a
work-related [death], the Act provides certain benefits to the
surviving spouse and any eligible dependents as follows:
reasonable and necessary funeral expenses not exceeding $10,000;
a lump sum payment of $5,000 paid to the surviving spouse or
equally divided among surviving children; an ongoing benefit
paid to the surviving spouse and children, which is calculated
on the number of surviving children, and is paid for twelve
years unless the spouse remarries or reaches retirement age.
The benefit is paid to the children until they reach nineteen
years of age, or for four more years if attending college.
CHAIR OLSON asked whether the calculation is based on a
percentage of the decedent's salary.
MS. MARKS said the calculation is based on a percentage of the
spendable weekly wage. A surviving spouse with no children
would receive 80 percent; if there were one child, the spouse
would receive 50 percent, and the child would receive 40
percent. For example, if an employee earned an average weekly
wage of $1,076, the widow or widower would receive $673 per week
and the child would receive $538 per week. There is a maximum
payable for benefits under workers' compensation of $1,211 per
week.
CHAIR OLSON asked whether workers' compensation could subrogate
payments from an accidental death policy.
10:10:25 AM
MS. MARKS stated that workers' compensation death payments are
paid regardless of other insurance; however, Social Security
Administration (Social Security) payments may be offset in
certain circumstances.
REPRESENTATIVE COLVER questioned whether there is an offset for
children who get Social Security benefits from a deceased
parent.
MS. MARKS said payments may be reduced by a Social Security
offset, and offered to research this issue.
REPRESENTATIVE JOSEPHSON restated that if the deceased is single
without dependents, their estate would receive $10,000 for
expenses, and there would be no other compensation.
MS. MARKS affirmed that benefits are payable to dependents, thus
if there are no dependents, the benefit would be funeral
expenses up to $10,000.
REPRESENTATIVE JOSEPHSON posited that in the case of an accident
that causes the death of a single person without dependents,
there could be an Occupational Safety & Health Administration
(OSHA), U.S. Department of Labor, violation, but there would be
no further investigation.
MS. MARKS confirmed that the Alaska Workers' Compensation Act
"is the exclusive liability for workplace, workplace injuries."
In the example of a workplace injury to an employee with no
dependents to file a claim, no benefits would be payable. In
further response to Representative Josephson, she remarked:
Under the Alaska workers' comp. Act, that is correct.
It is the exclusive remedy position. In exchange for
giving up the right to bring a tort action, the
dependents who are making claims do not have to
provide, or prove, fault. Or damages, sorry.
REPRESENTATIVE COLVER clarified that the aforementioned
provision of workers' compensation applies to any employee
statewide.
MS. MARKS explained that the Alaska Workers' Compensation Act
provides benefits to dependents. Regarding dependents who are
seeking to recover outside the Act, she said she was unsure what
dependents' causes of action would be outside of the Act.
10:15:35 AM
CHAIR OLSON inquired as to whether Ms. Marks was familiar with
the [remote site doctrine] which provides workers' compensation
coverage to workers in remote sites, such as the Trans-Alaska
Pipeline System and canneries. He asked whether workers are
covered "24 hours" when working at a remote site.
MS. MARKS said correct.
There followed discussion of an incident at a remote site, and
other issues not pertinent to the bill.
REPRESENTATIVE KITO returned discussion to coverage for police
and firefighters, and asked whether workers' compensation
provides a health care benefit to surviving spouses or
dependents.
MS. MARKS advised that it does not provide a health care
benefit, but does provide a continuing monetary benefit to be
used as the surviving spouse sees fit.
REPRESENTATIVE KITO restated that the bill addresses health care
benefits to surviving spouses and dependents, independent of
what workers' compensation provides. Although there are cash
payments, he questioned the expectation that spouses and
dependents would be able to use that money for expensive
insurance, when an existing insurance plan is available. He
remarked:
It does seems like we have a bill in front of us that
addresses that, and I don't know that, that workers'
compensation is the place where we need to be really
discussing it ... we've got a bill that addresses it,
I think that's very clear, in front of us.
10:20:27 AM
SCOTT JORDAN, Director, Division of Risk Management, Department
of Administration (DOA), in response to Chair Olson, said the
committee has heard correct answers to all of the questions
related to workers' compensation.
REPRESENTATIVE JOSEPHSON posed the situation of a trooper who
was killed in an accident, when not specifically on the job or
of a criminal nature, and asked whether HB 4002 would apply, and
if there would be coverage for the dependents.
MR. JORDAN advised that a trooper at a remote site is covered
[twenty-four hours per day, seven days per week (24/7)] under
workers' compensation for injury or loss of life.
REPRESENTATIVE JOSEPHSON clarified his question is that if the
death was not of a criminal nature, is the bill comprehensive,
and whether it would cover the dependents.
MR. JORDAN expressed his understanding that the bill provides
coverage for a work-related injury or death; thus at a remote
site, in the case of loss of life, there would be worker's
compensation death benefits, "and I would assume that this bill
would, would then come into play."
CHAIR OLSON observed that [troopers and wildlife officers] often
take vehicles home, and asked if a fatal accident off-duty with
a state vehicle would be covered.
MR. JORDAN said an employee in a state-issued vehicle is covered
until they leave the vehicle.
REPRESENTATIVE LEDOUX asked whether this issue is relative to HB
4002.
CHAIR OLSON explained that the committee needs to look all of
the benefits available to one involved in a fatal incident, and
workers' compensation is a portion of that.
REPRESENTATIVE COLVER suggested that the chair provide the
committee an oral report on the forthcoming committee substitute
(CS) for HB 4002.
CHAIR OLSON stated his intention to release the CS this
afternoon.
REPRESENTATIVE KITO asked who requested the CS and what the
issues are involved, because he had not heard any comments about
issues in the bill that need to be addressed. He pointed out
the slow pace of hearings on what he characterized as a simple
bill, and that if there are changes that have been requested by
the chair, the committee needs to be informed.
10:27:42 AM
KONRAD JACKSON, Staff to Representative Kurt Olson, Alaska State
Legislature, speaking on behalf of Representative Olson,
explained that some of the changes made by the CS will be minor
technical changes that are usually sought by Legislative Legal
Services, Legislative Affairs Agency, to bills that were drafted
by the Department of Law, including drafting and style changes.
The first change is a time limit of 10 years to the benefits for
surviving spouses, which was based on provisions from some other
states. The other change is that in the event of remarriage,
the surviving spouse would no longer qualify for free medical
coverage.
REPRESENTATIVE JOSEPHSON surmised the intent of the CS is to
meld concepts in workers' compensation with the health care
death benefit of HB 4002.
MR. JACKSON said there was no intention to mirror workers'
compensation as relates to the children, and the current
language of the bill remains unchanged in that regard.
REPRESENTATIVE LEDOUX said she wished to see the bill advance in
its present form, and inquired how the chair would schedule
amendments.
CHAIR OLSON responded that amendments would be scheduled after
24 hours. He further explained that 13 other states have
similar legislation, and the drafters took an average of other
states' coverage. The way the bill is written now, one could
have full medical up to age 65, and at that point in time have
secondary insurance. Regarding the pace of the hearings, he
pointed out that the committee waited one year for the first
fiscal note, which he understood to be about $60 million. Two
fiscal notes and two actuarial studies were received within the
last month.
REPRESENTATIVE LEDOUX questioned whether the $60 million fiscal
note was for a previous iteration of the bill and was unrelated
to the "very narrow" bill before the committee.
10:31:58 AM
CHAIR OLSON said:
I haven't seen that fiscal note, but this one doesn't
include any other state employees other than the ones
that are listed in the current policy. The only
changes that Konrad just laid out are made out to ...
the bill as before us, it doesn't add any other
classes, it doesn't change any of the definitions of
employees, it's just straight spouse support.
REPRESENTATIVE COLVER said he cannot support a 10-year
limitation on benefits, because the families' circumstances are
unknowable. He opined the benefits are a moral - as well as a
financial - obligation to those who have lost their lives in the
line of duty; furthermore, in today's world families need
insurance coverage for children to age 26. Representative
Colver expressed his preference to support the original version.
10:33:57 AM
CHAIR OLSON recalled that the bill had one hearing in the Senate
in two years because there was not a lot of support. He said
his goal is to advance a bill that would be passed to the
Senate, and opined that HB 4002 would not pass out of the House
Finance Committee.
REPRESENTATIVE JOSEPHSON agreed with the foregoing comments of
Representatives LeDoux and Colver. He recalled that related
legislation proposed in 2014 was designed to do what the
previous administration was already doing administratively, and
received a tremendous amount of coverage by the media.
Representative Josephson cautioned that legislators cannot
"assert that this has caught them unawares," and said that it is
time to move the bill.
10:36:16 AM
[The committee took an at ease from 10:36 a.m. to 10:54 a.m.]
10:54:32 AM
CHAIR OLSON announced that a waiver of the bill would be
circulated for committee members' signatures.
[Although a formal motion was not made, HB 4002 was waived out
of committee.]
10:54:39 AM
The committee took an at ease from 10:54 a.m. to 10:56 a.m.
10:56:40 AM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
10:56 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB4002 Opposing Documents-Email Tim Staton 06-04-16.pdf |
HL&C 6/6/2016 8:00:00 AM |
HB4002 |
| HB4002 Opposing Documents-Email John and Candy Miller 06-04-16.pdf |
HL&C 6/6/2016 8:00:00 AM |
HB4002 |
| HB4002 Supporting Documents-Assorted Emails 06-06-16.pdf |
HL&C 6/6/2016 8:00:00 AM |
HB4002 |
| HB4002 Supporting Documents-Assorted Emails and Letters 06-05-16.pdf |
HL&C 6/6/2016 8:00:00 AM |
HB4002 |