Legislature(2019 - 2020)SENATE FINANCE 532
03/19/2020 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB240 | |
| HB197 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 240 | TELECONFERENCED | |
| *+ | HB 197 | TELECONFERENCED | |
| *+ | HB 235 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 19, 2020
1:11 p.m.
1:11:02 PM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 1:11 p.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
ALSO PRESENT
Senator Click Bishop, Sponsor; Cody Grussendorf, Staff,
Senator Click Bishop; Lennon Weller, Economist, Department
of Labor and Workforce Development; Representative Chris
Tuck, Sponsor; Kris Curtis, Legislative Auditor, Alaska
Division of Legislative Audit.
PRESENT VIA TELECONFERENCE
Patsy Westcott, Director, Division of Employment and
Training Services, Department of Labor and Workforce
Development.
SUMMARY
SB 240 UNEMPLOYMENT BENEFITS FOR COVID-19
SB 240 was HEARD and HELD in committee for
further consideration.
HB 197 EXTEND SEISMIC HAZARDS SAFETY COMMISSION
HB 197 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 240
"An Act relating to unemployment benefits during a
period of state or national emergency resulting from a
novel coronavirus disease (COVID-19) outbreak; and
providing for an effective date."
1:11:33 PM
Co-Chair von Imhof noted that this was the first hearing on
the bill in committee.
SENATOR CLICK BISHOP, SPONSOR, commented that extraordinary
times required leadership, which the senate would provide.
He stated that senate leadership had been working on the
concept for several weeks and had been working with various
state and federal departments. He commented that as of the
previous Tuesday, there were 12 states that had passed
similar language to expedite the waiting requirements for
benefits. He said that the goal was to get replacement
funds into the economy as soon as possible.
1:14:32 PM
CODY GRUSSENDORF, STAFF, SENATOR CLICK BISHOP, reviewed the
Sectional Analysis (copy on file):
Section 1. Adds a new section to uncodified law
regarding unemployment insurance and the impact of
COVID-19 on workers and employers.
a) This new section says that to the extent
consistent with federal law, an insured worker may not
be disqualified for conduct related to COVID-19,
including:
1. Providing care including medical care, to one or
more persons;
2. Preventing or limiting the spread of COVID-19; or
3. Preventing or limiting economic loss or harm.
b) This section states that such protection of
the insured worker applies for 90 days beginning the
effective date of this act, or the date the worker
applies for a benefit under AS 23.20, whichever is
later.
c) This section states that the one week waiting
period under AS 23.20.375 (b) is waived during the
duration of the state or national emergency.
d) This section states that provision of such
benefit is not a violation of AS 23.20.500, the
Unemployment Security Act.
e) The Commissioner of Labor and Workforce
Development is directed to administer this section.
Section 2. This section modifies the uncodified law of
the State of Alaska to increase dependent allowances
for unemployment insurance. Notwithstanding federal
law, for the duration of a state or national emergency
related to COVID-19, the allowance for dependents of
insured workers under AS 23.20 is $75 per week per
dependent. It instructs the Department of Labor and
Workforce Development to not limit the total
allowances for dependents.
Section 3. This section repeals this Act April 1st,
2021.
Section 4. This section authorizes the Commissioner of
the Department of Labor and Workforce Development to
implement this act, and declares that they are not
subject to the Administrative Procedures Act, AS
44.62.
Section 5. This section declares the Act takes effect
immediately under AS 01.10.070(c)
1:16:18 PM
Co-Chair von Imhof introduced invited testimony.
1:16:39 PM
PATSY WESTCOTT, DIRECTOR, DIVISION OF EMPLOYMENT AND
TRAINING SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT (via teleconference), announced that she was
available for questions.
Senator Bishop understood that the division require
additional staff to meet the growing demand for
unemployment services.
Ms. Westcott stated that the division had reviewed staffing
needs in anticipation of the already increasing workload.
She said that staff from other units within the division
had been diverted to the front lines, overtime and phone
hours had also been increased and expanded. She said that
the division had several vacant positions that would need
to be filled in the coming weeks. She related that 25 PCNs
had already been budgeted for and would be filled.
1:19:10 PM
Co-Chair von Imhof asked about the application process, the
necessary qualifications for benefits, and how benefits
were paid out.
1:20:13 PM
Ms. Westcott said that people could apply online at
myAlaska.com or at call centers.
1:20:46 PM
Co-Chair von Imhof asked about the qualification process.
1:21:03 PM
Ms. Westcott replied that applications were processed in
real time. She stated that eligibility would be reviewed.
She listed those qualifications and discussed possible
waivers. She said that the bill would help to relax
provisions so that the needs of unemployed workers could be
alleviated. She shared that the process normally took two
weeks to first payment. She discussed the various payment
methods. She said that programming changes were in the
works to expedite payments by going to a single week
payment process.
1:23:46 PM
Co-Chair von Imhof asked whether the department was ready
to accept federal dollars.
1:24:07 PM
Ms. Westcott replied in the affirmative.
1:24:25 PM
Senator Wielechowski asked about the solvency of the
Unemployment Insurance fund.
1:24:45 PM
LENNON WELLER, ECONOMIST, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, related that the trust fund solvency was
sound. He said that there was $493 million currently in the
account, which was above the current statutory targets for
full solvency.
Senator Wielechowski asked what sort of flexibility was
afforded by the amount in the fund.
Mr. Weller replied that some stress testing had been done
through the next 12 months. He thought the state could
absorb about an approximate 8-fold increase in cases. He
pointed out that duration and magnitude of an increase
would have an impact on the departments ability to absorb
payments. He thought the division could handle the costs
for three to six months of 10-times what it had
historically experienced.
Co-Chair von Imhof thanked Mr. Weller for stress testing
the fund. She thought that additional help would be
provided by the federal government that would keep
businesses whole.
1:28:10 PM
Senator Wielechowski asked whether Mr. Weller had any sort
of comparison between Alaska and other states considering
the maximum allowable weekly benefit.
Mr. Weller stated that there was a maximum weekly benefit
amount of $370, which put Alaska last on the list
nationally for replacement of lost wages.
Senator Wielechowski was interested in seeing the data
charts.
Mr. Weller was happy to provide the information to the
committee.
1:29:12 PM
Senator Wielechowski wondered how UI was typically funded.
Mr. Weller stated that the Unemployment Insurance Program
was funded solely through a payroll tax collected from
taxable wages, which accounted for 93 percent of all wage
and salary employment in the state.
Senator Bishop asked whether it was true that the
department could receive federal dollars for the fund.
Mr. Weller answered in the affirmative. There was also the
ability to gain federal dollars to pay out emergency
compensation and, in some cases, extended benefits.
1:30:38 PM
Senator Hoffman noted that the sponsor stated that people
under quarantine were eligible for benefits. He asked what
kind of documentation would be needed to procure those
benefits and whether the self-quarantined would be
eligible.
Ms. Westcott stated that when an individual filed for UI,
it was required to certify that the information was true
and correct. She stated that if the department had reason
to question the information, it was investigated. She said
that individuals affected by Covid-19 would be treated no
differently.
Senator Hoffman restated his question about individuals
that were quarantined. He asked about whether individuals
that self-quarantined were eligible.
Ms. Westcott stated that the bill expanded the eligibility
to provide benefits to anyone affected by Covid-19.
1:33:59 PM
Senator Hoffman asked if people that self-quarantined were
eligible for benefits.
Ms. Westcott answered in the affirmative. Part of the goal
with the legislation was to protect communities.
1:34:43 PM
Co-Chair von Imhof asked whether a person quarantined at
home and receiving payment from their employer would be
eligible.
Ms. Westcott answered in the negative.
1:35:28 PM
Senator Bishop appreciated Ms. Westcott's earlier comments
when she discussed that the federal guidelines were open
for the states interpretation for application. He wondered
whether the department would need additional PCN authority
going forward.
Ms. Westcott agreed that the department would need some
additional PCN authority and would not turn down additional
PCNs if they were allowed.
1:37:15 PM
Senator Bishop asked how many positions would be needed and
how long it would take to train new staff to take claims.
He asked how long employee training would take.
Ms. Westcott shared that claims taking was a necessary step
for advancement in the division, so must employees had
already been trained. She added that a typical training
period lasted three months.
1:39:23 PM
Senator Wielechowski asked about the maximum time that a
person would be eligible for benefits if the bill passed.
Ms. Westcott stated that the maximum duration of
eligibility was 26 weeks. She referenced Mr. Weller's
mention of possible extended benefits. She said that
because of the expected increased workload, extended
benefits were expected; total weeks of extended benefits
would be 39 weeks.
1:40:51 PM
Senator Wielechowski referenced the concept of a "rolling
closure" and suggested that the COVID-19 virus outbreak
would wax and wane over time. He asked whether a person who
received benefits, went back to work, and then was laid off
again, could they reapply for UI.
Ms. Westcott stated that the 26 weeks would be available at
any time during the benefit year depending upon the
individual need.
1:42:27 PM
Co-Chair von Imhof commented that the bill had an
expiration date of the following April 2021. She thought
the state was entering uncharted territory and would need
to be flexible. She thought it was not possible to know to
what degree Alaskans would be affected or the duration of
the pandemic. She hoped that further work could be done in
January 2021. She relayed that the federal government had
just proposed a one-trillion-dollar emergency fund.
1:43:49 PM
Senator Bishop thought the main takeaway was that the week
waiting period would be waived. He thought cash flow to
Alaskans was top priority.
1:44:37 PM
Co-Chair von Imhof OPENED public testimony.
1:44:48 PM
Co-Chair von Imhof CLOSED public testimony.
SB 240 was HEARD and HELD in committee for further
consideration.
Co-Chair von Imhof set the bill aside. She noted that the
companion legislation would be taken up as soon as it was
in committee.
HOUSE BILL NO. 197
"An Act extending the Alaska Seismic Hazards Safety
Commission; and providing for an effective date."
1:45:16 PM
REPRESENTATIVE CHRIS TUCK, SPONSOR, said that Alaska
experienced numerous earthquakes each year, which put
people and infrastructure at risk. The bill would extend
the Alaska Seismic Hazards Safety Commission, which brings
together key governments official and volunteer experts to
provide recommendations on how to improve earthquake
response and mitigation.
1:48:01 PM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, reviewed the audit report "A Sunset
Review of the Department of Natural Resources, Alaska
Seismic Hazards Safety Commission (commission)" (copy on
file). She stated that the audit found that there continued
to be a public policy need for the commissions existence.
She referenced Page 9 of the report, which showed that the
annual expenditures were relatively low for the expertise
leveraged by the commission. She spoke to the recommended
administrative improvements on Pages 16 and 17:
• The commission's chair should ensure procedures are
implemented to publish meeting notices timely and
accurately.
• The commission's chair should ensure the strategic
plan is updated to reflect current goals and
priorities based on experience.
Ms. Curtis furthered that the department had responded to
the audit (Page 29) by agreeing that the commission was
necessary and that the administrative recommendations would
be addressed. She added that the chair of the commission
agreed to the recommendations and said that meetings would
be noticed and that the administrative plan had been
updated.
1:49:40 PM
Co-Chair von Imhof thought the bill was simple. She listed
the people available for expert testimony.
1:50:24 PM
Co-Chair von Imhof OPENED public testimony.
1:50:35 PM
Co-Chair von Imhof CLOSED public testimony.
Co-Chair von Imhof set the bill aside.
CSHB 197(FIN) was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
1:51:04 PM
The meeting was adjourned at 1:51 p.m.