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 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