Legislature(2009 - 2010)SENATE FINANCE 532
02/11/2010 09:15 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB83 | |
| SB199 | |
| SB159 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 83 | TELECONFERENCED | |
| + | SB 199 | TELECONFERENCED | |
| + | SB 159 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 159
"An Act increasing the maximum funeral expenses payable
as a workers' compensation death benefit; and providing
for an effective date."
10:00:51 AM
SENATOR JOE PASKVAN presented the legislation and the merits
of SB 159. He gave a statement including history about the
workers' compensation death benefit. He discussed the cost
of funeral expenses. The payment of the death benefit is
granted to the survivors. The act increases the maximum
funeral expense payable as a workers' compensation death
benefit and provides for an effective date. The bill
addresses Section 1 of the statute stating that reasonable
and necessary funeral expenses are increased from $5000 to a
more appropriate level of $10,000. During the last ten years
there have been an average of 26 fatalities per year in
Alaska that require payment of funeral expenses under the
workers' compensation statutes. In that decade, the most
number of deaths in a year was 39 and the fewest number of
deaths was 15. Last year there were 17 fatalities in Alaska
that required the payment of workers' compensation funeral
expenses. He mentioned the wide range of necessary services
involved in a funeral. These funeral services easily surpass
the maximum death benefit. If SB 159 is implemented, there
is no fiscal impact to the state. System costs will increase
by less than 0.1 percent. Current funeral benefit has been
unchanged for a decade, and since then the cost of funeral
expenses has risen significantly.
10:03:58 AM
Co-Chair Stedman asked for an approximation of funeral
costs. Senator Paskvan responded that funeral expenses are
estimated at $12 to $15 thousand. The $10 thousand benefit
is designed to compensate for reasonable and moderate
funeral services.
Co-Chair Stedman noted the zero fiscal note from the
Department of Labor and Workforce Development.
10:05:37 AM
TRENA HEIKES, DIRECTOR, DIVISION OF WORKERS' COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT stated that
the department does not have a position on the bill. She
researched the average funeral cost excluding burial and
cemetery charges and the cost is between $6 and $7 thousand
for the casket and the funeral home cost.
Co-Chair Stedman requested various amounts of funeral
expenses comparing cremation versus burial.
Senator Huggins asked if insurance is available to workers
in the state. He asked about insurance offered by unions or
recurring employers. Ms. Heikes responded that for work
related deaths, workers' compensation would pay up to $5000.
She supposed that private insurance and unions might also
contribute if a person participated in them.
Senator Huggins asked if the payment is doubled from $5 to
$10 thousand, who pays for the additional amount.
10:09:40 AM
Ms. Heikes answered that the workers' compensation insurance
carrier who contracts with the employer to provide workers'
compensation insurance. The overall increase in premium is
0.1 percent. She clarified that if an employer paid $1000
premium per year, the cost would be an additional dollar for
the increase from $5 to $10 thousand.
Senator Thomas asked if private benefits would compromise
the ability to collect workers' compensation benefits. Ms.
Heikes answered that if the person has private insurance for
funerals, then the first $5000 would be covered by workers'
compensation.
10:11:25 AM
DON ETHERIDGE, ALASKA, AFL, CIO spoke in support of the
legislation. He acknowledged that funeral costs have
increased dramatically. Typically when a person is lost on
the job, the income is lost for the family. He opined that
the increase is appropriate.
Senator Huggins asked about the percentage increase for the
employees. Mr. Etheridge responded that he was not aware of
the percentage increase for individuals. Senator Huggins
thought that the information was important to determine
exactly how the legislation would impact those involved.
10:13:29 AM
BARBARA HUFF TUCKNESS, DIRECTOR OF LEGISLATIVE and
GOVERNMENTAL AFFAIRS, GENERAL TEAMSTERS LOCAL 959, spoke in
support of the legislation. She noted the safety perspective
and the history of members lost though work related efforts.
She noted that the impact and focus on safety issues is
greater. She added that despite the choice of casket versus
burial, the act of transporting the body adds additional
expense.
10:16:10 AM
Co-Chair Stedman pointed out questions regarding data
retrieval about the number of deaths that occurred in the
workplace. He requested data about the cost of funerals and
additional expenses. He expressed curiosity about the
employees in union and out of union.
KEVIN DOUGHERTY, ALASKA LABORERS, EAGLE RIVER (via
teleconference) spoke in favor of the legislation. He
pointed out that the amount of work related deaths has
declined. He opined that the legislation is of benefit to
workers and also saves insurance funding for workers'
compensation. He stated that he sent price data to the
committee from various funeral homes around Alaska. The data
shows that a typical funeral has escalated from $6 to $10
thousand. The bill would allow the workers' compensation
insurance to cover up to $10 thousand, but a funeral charge
that is less would only receive the amount necessary. He
noted that the benefit has not increased for approximately
10 years, yet the cost of funerals has increased
considerably.
STACY ALLEN, LOBORERS LOCAL 341, ANCHORAGE (via
teleconference) relayed a recent experience where a union
member was lost and she was privy to the financial worries
that greatly affect families and compound the tragedy. She
noted that collections and resources were received from
other union members, but she could not imagine the absence
of the union family.
10:21:27 AM
Senator Thomas asked about the fatalities listed in the
documentation provided by the Department of Labor and
Workforce Development, "Total Filings by Type" (Copy on
File). He was uncertain about the fatality numbers listed in
the lower section of the table beginning with number 224 in
FY99 running to FY08.
Ms. Heikes responded that the upper portion of the data
sheet indicates the actual numbers of injuries reported in
the division. The lower portion represents the number of
files open by insurers. She noted that ongoing death
benefits were payable to the survivors under the statute.
The insurance carriers would have open files because they
continue to pay benefits. The numbers cited by Senator
Thomas indicate the ongoing files through which benefits are
paid. The questions address the issue of whether or not the
workers' compensation act had jurisdiction over the reported
injuries.
SB 159 was HEARD and HELD in Committee for further
consideration.
10:29:10 AM
Co-Chair Stedman provided an overview of the upcoming
committee meetings.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2010_02_10 AARP Support for SB 199.pdf |
SFIN 2/11/2010 9:15:00 AM |
SB 199 |