Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/16/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB185 | |
| Confirmation Hearing(s) | |
| SB159 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 159 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 185 | TELECONFERENCED | |
SB 159-UNEMPLOYMENT BENEFITS
2:45:47 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
159, "An Act relating to unemployment benefits."
She stated that this is the second hearing and version I is
before the committee. She asked Ms. Wilterdink to refresh the
committee's recall of SB 159 before she opened public testimony.
2:46:14 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, stated that SB 159 will index the
duration of unemployment benefits Alaskan claimants may receive
to the unemployment rate. When there are more jobs, the
unemployment rate will be lower so fewer weeks of benefits will
be available. The reverse applies when there are few jobs
available.
CHAIR COSTELLO asked for an explanation of what the section on
seasonal workers accomplishes.
MS. WILTERDINK explained that the current system gives fewer
weeks of unemployment benefits to seasonal workers who have
inconsistent income throughout the year compared to workers
whose income is stable throughout the year. SB 159 says seasonal
workers who pay into the system deserve the same duration of
benefits as somebody who works year round and pays into the
system.
2:48:04 PM
CHAIR COSTELLO opened public testimony on SB 159.
2:48:23 PM
JEFF GARNESS, representing self, Anchorage, Alaska, stated that
as a long time private business owner he was speaking in support
of SB 159. He read the following testimony.
As the primary payers of the unemployment system,
business owners like me have a vested interest in
seeking that the program is an effective safety net
that carries workers from one job to the next. But
over the past years, pandemic related pressures
weighed heavily on the unemployment system
exacerbating and exposing some of the unemployment
program's flaws and weaknesses and ultimately
decreasing the program's solvency. Both employers and
workers deserve reforms to the unemployment system
that shore up the program for the long term.
We all want the unemployment program to exist for hard
working Alaskans who need a helping hand between jobs
and Senate Bill 159 contains several proposals to
accomplish that very goal.
Alaska's current unemployment system doesn't account
for the availability of jobs when determining the
duration of benefits. Senate Bill 159 would tie the
actual job market to the duration of benefits thus
treating all Alaskans more fairly, even if they work a
seasonal job.
The indexing of unemployment insurance benefits to the
current state unemployment rate would ensure
individuals receive the support they need when jobs
are scarce, but also giving individuals the push they
may need to get back to work when the jobs are
plentiful. Employers should not be forced to compete
with the unemployment insurance program when jobs are
available, nor should adults be encouraged to forego
work and trade their independence.
This bill also requires checking suspicious activity
such as multiple filings for benefits through the same
IP address. These simple reforms would target
fraudsters and help maintain benefits for those who
truly need them.
I encourage you to pass Senate Bill 159 to help
Alaskans get started on ensuring our state's
unemployment system is poised for success in the
future.
2:50:46 PM
ROY SYREN, representing self, Anchorage, Alaska, stated support
for SB 159 as the owner of a small construction business that
employs people seasonally and year round. There is a limited
window to accomplish this work in Alaska. His business ramps up
employment during construction months and typically lays off 50
percent of these workers in late fall.
He related that it was a challenge in 2021 to fill these jobs
even when no experience was required. Many of the few applicants
did not follow through to an interview. He said it is important
for businesses such as his to have a pool of employees from
which to draw, so he was encouraged when SB 159 was introduced.
It will improve the employment market in the state by putting
potential workers into the market at just the right time. This
will help businesses like his do more business and contribute
positively to the Alaskan economy.
2:52:59 PM
BETHANY MARCUM, Chief Executive Officer, Alaska Policy Forum,
Anchorage, Alaska, read her testimony in support of SB 159:
Alaska's economic recovery from the pandemic has not
been strong. We have not yet recovered the jobs lost
and unemployment trust funds have been greatly
reduced. Too many Alaskans have not returned to the
labor force and by not fully replenishing the funds in
our trust, we are putting our economy at risk in the
event of future crises. Other states such as Idaho,
North Carolina, Alabama, Florida, and Tennessee have
policies in place that promote a healthier economy.
Those states link unemployment benefits to economic
conditions. In those states, when economic conditions
are such that there are not many job openings, workers
receive payments for longer periods of time. And when
employers are hiring and many jobs are available,
benefits are provided for a shorter duration.
It's a policy that helps in multiple ways. First, it
helps by restoring the funds in our trust so that we
can continue to support those who have lost jobs
during difficult times. Second, it helps individuals
get the support they need and return to the workforce
when jobs do exist. Third, it helps to create a market
as workers for employers who are trying to hire as
they maintain or expand their businesses.
The data from those states which have implemented this
policy is strong and compelling. They have continued
recovering jobs post-pandemic at a much higher rate
than Alaska. Their residents have returned to the
workforce and now their state trust fund balances are
on the right trajectory. The data also shows that
people who are out of the job market for longer
periods of time are less likely to return to work.
Thus our policies should encourage workers to return
as soon as the economy supports the jobs.
As elected officials, you have the power to pass
policies that will put our economy on the right path.
I encourage you to take a look at policies that exist
that will reduce Alaska's labor shortage and improve
our economy.
2:55:06 PM
CHAIR COSTELLO discerned nobody else wished to comment and she
closed public testimony on SB 159.
She noted who were available to answer questions and asked Brian
Sikma what his experience was with bills such as SB 159 that
index the duration of benefits to the unemployment rate.
2:55:48 PM
BRIAN SIKMA, Visiting Fellow, Opportunity Solutions Project,
Wisconsin, stated his organization has worked in a number of
states that either already have or plan to implement this type
of indexing reform. There are numerous benefits to labor
markets, responsiveness to job openings, and trust fund
stability. Calculations he and his colleagues have run indicate
that Alaska's unemployment insurance trust fund would grow by
about $96 million per year which would make a significant
difference in the solvency of the fund without raising taxes on
employers or employees.
MR. SIKMA offered his professional opinion that many states are
looking at this type of legislation to refill their trust funds
without having to raise taxes. Large workforce shortages are
also a factor. The US Department of Labor data shows that Alaska
had more job openings, seasonally adjusted per capita, than any
other state in the union. Based on the experience of other
states that have enacted similar legislation, Alaska will likely
see workers return to work much more quickly if this legislation
passes.
MR. SIKMA described SB 159 as a multiple solution to
incentivizing people to return to work.
2:58:30 PM
SENATOR STEVENS asked for a simple explanation of indexing
reform and how it works.
MR. SIKMA explained that indexing bases the duration of
unemployment benefits on the unemployment rate that is measured
with federal data. For every half percentage point that the
unemployment rate rises, an additional week of benefits is
added, up to a cap. SB 159 establishes a floor such that the
minimum duration of benefits would be 12 weeks if the employment
rate is below seven percent and up to 20 weeks if the
unemployment rate is 10.51 percent or higher.
CHAIR COSTELLO asked Clifford Napier how the Division of
Employment and Training Services overlaps with the Unemployment
Insurance Benefit Program.
3:00:15 PM
CLIFFORD NAPIER, Assistant Director, Unemployment Insurance,
Division of Employment and Training Services, Department of
Labor and Workforce Development (DOLWD), Anchorage, Alaska,
explained that individuals who are collecting unemployment are
required to search for work and report those efforts. Unemployed
workers are registered with the job centers and they are
required to go through a reemployment assessment process that
looks at ways the individual could become better ready for the
labor market. This might include a referral for training or
simply improving the individual's resume.
3:01:32 PM
At ease
3:01:43 PM
CHAIR COSTELLO reconvened the meeting and solicited a motion.
3:01:52 PM
SENATOR STEVENS moved to report the CS for SB 159, work order
32-LS1313\I, from committee with individual recommendations and
attached fiscal note(s).
3:02:14 PM
CHAIR COSTELLO found no objection and CSSB 159(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 185 Version I.pdf |
SL&C 3/16/2022 1:30:00 PM |
SB 185 |
| SLAC Gov Appointee Julie Sande Resume.pdf |
SL&C 3/16/2022 1:30:00 PM |
|
| SB 159 Written Testimony received as of 3.15.22.pdf |
SL&C 3/16/2022 1:30:00 PM |
SB 159 |