05/06/2001 08:32 AM Senate L&C

            HB  58-UNEMPLOYMENT COMPENSATION BENEFITS                                                                       
                                                                                                                              
CHAIRMAN  RANDY  PHILLIPS  called  the  Senate  Labor  &  Commerce                                                            
Committee meeting  to order at 8:32  am and announced HB  58 to be                                                              
up for consideration.                                                                                                           
                                                                                                                                
MS. REBECCA  GAMEZ, Deputy Commissioner,  Department of  Labor and                                                              
Workforce Development,  testified that  HB 58  is much like  SB 30                                                              
that  was  before the  committee  a  few  weeks ago,  without  the                                                              
indexing.                                                                                                                       
                                                                                                                                
     This  bill  will increase  the  maximum  weekly  benefit                                                                   
     amount  to $320 over  a three-year  period from $248  in                                                                   
     the first year  to $272; in year two from  $272 to $296;                                                                   
     and  in year  three from  $296  to $320;  then the  $320                                                                   
     would stay in statute.                                                                                                     
                                                                                                                                
CHAIRMAN PHILLIPS  asked what the  costs were to the  employers as                                                              
opposed to the costs to the employees.                                                                                          
                                                                                                                                
MS. GAMEZ  replied that  it's an  estimated cost  over a  six-year                                                              
period  of  about $10  million  -  $8 million  would  be  employer                                                              
contributions and  $2 million would  be worker contributions.  She                                                              
said this  was in reference to  the private sector and  the fiscal                                                              
notes   speak   to   the  University   and   the   Department   of                                                              
Administration.                                                                                                                 
                                                                                                                                
CHAIRMAN  PHILLIPS  asked  what   the  percentage  match  was  for                                                              
employer an employee for unemployment insurance.                                                                                
                                                                                                                                
MS. GAMEZ replied  that it's an 80/20 split. She  said it's capped                                                              
at roughly $150 for worker contribution.                                                                                        
                                                                                                                                
MR. RON HALL,  Director, Employment Security  Division, explained,                                                              
"Over the  six-year period to 2008  when it's fully in  place, the                                                              
impact of the taxes is raised for  the average employer by $51 per                                                              
employee per year."                                                                                                             
                                                                                                                                
CHAIRMAN PHILLIPS asked if there  was any opposition to this bill.                                                              
                                                                                                                                
MS. GAMEZ replied that the only opposition  that she's aware of is                                                              
that the State  Chamber of Commerce did a survey  and then revised                                                              
their opposition  and said they would  support "one bump  up." She                                                              
said  the  department  hadn't  received  any  complaints  and  had                                                              
actually received a lot of input  from claimants who say that it's                                                              
not enough to get them through times of seasonal unemployment.                                                                  
                                                                                                                                
CHAIRMAN  PHILLIPS asked  if Alaska  was number  50 of the  states                                                              
that have passed legislation like this.                                                                                         
                                                                                                                                
MS. GAMEZ replied, "Yes."                                                                                                       
                                                                                                                                
CHAIRMAN  PHILLIPS asked  if  they would  pass  this, where  would                                                              
Alaska be in the rankings.                                                                                                      
                                                                                                                                
MS.  GAMEZ replied  that  we would  be  at the  lower  end of  the                                                              
middle.                                                                                                                         
                                                                                                                                
MR. HALL  said that it's  a moving target,  "Other states  will be                                                              
going up. We'll still be in the bottom third."                                                                                  
                                                                                                                                
MS. GAMEZ replied that we would be  in the top of the bottom third                                                              
if things stay as they are today.                                                                                               
                                                                                                                                
SENATOR AUSTERMAN  asked what "one  bump up" meant to  the Chamber                                                              
of Commerce.                                                                                                                    
                                                                                                                                
MS.  GAMEZ  replied that  she  thought  it  meant that  they  were                                                              
supportive of the bump from the current $248 to the $272.                                                                       
                                                                                                                                
MR. DON ETHERIDGE, Alaska State AFL-CIO,  said he supported HB 58.                                                              
"Many of our members  pointed out that there is a  lot of seasonal                                                              
employment and they  just cannot make it on the  rate that's being                                                              
paid right now."                                                                                                                
                                                                                                                                
CHAIRMAN PHILLIPS said:                                                                                                         
                                                                                                                                
     I'm a little  hesitant on this bill, not  because of the                                                                   
     subject  matter in the  bill, but  because of the  short                                                                   
     notice on  the effects of  the employers and  not having                                                                   
     them here to  testify either for or against  or at least                                                                   
     list their concerns…                                                                                                       
                                                                                                                                
SENATOR  DAVIS moved  to  pass CSHB  52(L&C)  from committee  with                                                              
individual recommendations  with the  attached fiscal  note. There                                                              
were no objections and it was so ordered.