State of Alaska
Fiscal Note
Bill Version: CSHB 30(FIN)
2022 Legislative Session
Fiscal Note Number: 5
(H) Publish Date: 3/2/2022
Identifier: HB030-DOLWD-WC-01-28-22 Department: Department of Labor and Workforce Development
Title: WORKERS' COMP: DEATH; PERM PARTIAL Appropriation: Workers' Compensation
IMPAIR Allocation: Workers' Compensation
Sponsor: JOSEPHSON OMB Component Number: 344
Requester: Governor
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services
Capital Outlay
Grants & Benefits
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in Revenues
1157 Wrkrs Safe (DGF) 210.8 210.8 210.8 210.8 210.8 210.8
Total 210.8 0.0 210.8 210.8 210.8 210.8 210.8
Estimated SUPPLEMENTAL (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 12/31/22
Why this fiscal note differs from previous version/comments:
Updated to current fiscal year form
Prepared By: Charles Collins, Director Phone: (907)465-2790
Division: Workers' Compensation Division Date: 1/28/22 01:00 PM
Approved By: Dan DeBartolo, Director Date:
OUT OF 01/28/22
Agency: DOL&WD Administrative Services Division REPORTED
Printed 3/1/2022 Page 1 of 2 HFC 03/01/2 022
Control Code: ikecB
CSHB 30(FIN) - Fiscal Note 5
This legislation increases workers' compensation insurance benefits for permanent partial impairment (PPI) and extends
the limit on death benefits for a dependent child from age 19 to age 23, when there is no widow or widower. This
legislation also requires an employer to notify each employee of the workers' compensation death benefits and to provide
notice to the personal representative of a deceased employee about time limits for filing a workers' compensation claim,
as well as where to locate an attorney and grief counselor. Workers' Compensation insurance benefits are paid by insurers
or by self-insured employers, and are regulated by the Division of Workers' Compensation.
The proposed PPI benefit amounts to 54.24% increase. Since PPI benefits amounted to $8.9 million in 2019, this is
estimated to increase benefit cost to insurers and self-insured employers by $4.8 million per year. However, as noted by
the National Council of Compensation Insurance (NCCI) in its 2019 analysis of the impacts of HB30, "studies indicate that
significant benefit increases are typically accompanied by changes in claimant behavior. In this case, changes in claimant
behavior might result in an increased number of PPI claims, potentially higher PPI ratings, and potential for increased
attorney involvement." An increase in attorney involvement may result in higher average impairment awards, as well as
increased loss adjustment expense. As such, NCCI applied a 1.25 utilization factor to the direct indemnity impact to
account for these anticipated behavioral changes. The estimated impact of this proposed provision on overall Alaska
workers compensation system costs including utilization is +2.9% (= +7.9% x 1.25 x 29%).
An updated study by NCCI states:
As PPI awards comprise approximately 14.5% of indemnity benefits, the direct impact on indemnity costs would be
+7.9% (= +54.2% x 14.5%). Indemnity costs comprise 29% of overall benefit costs in Alaska. Therefore, NCCI estimates
that the direct impact on overall workers compensation system costs in Alaska would be +2.3% (= +7.9% x 29%).
The division is unable to calculate the impact of increasing the limit on death benefits for a dependent child from age 19 to
age 23 when there is no widow or widower. In 2018, there were only five claims involving death benefits to children where
there was no widow or widower, so the impact is not expected to be significant.
Increased benefit costs to insurers and self-insured employers do not impact the division's budget. The division does not
anticipate a cost with developing forms related to the employer notification requirements proposed in the legislation.
However, there is currently not a definition for "grief counselors" under the Alaska Workers' Compensation Act, so
regulations will be necessary. Changes to regulations will be combined with planned regulation update packages, so
additional budget authorization is not needed.
Revenue to the Workers' Safety and Compensation Administration Account (WSCAA) comes from fees on premiums and
self-insured benefit costs. As this legislation will cause an increase in benefit costs, it will result in additional annual
revenue estimated at $210,800. The increased revenue is estimated at $105,400 in FY2022 because of the mid-year fiscal
year effective date.
(Revised 11/23/2021 OMB/LFD) Page 2 of 2
HB030-DOLWD-WC-01-28-22 Page 2 of 2 Control Code: ikecB

Statutes affected:
HB0030A, AM HB 30, introduced 02/18/2021: 23.30.215, 23.10.699, 23.10.430, 23.30.190, 23.30.041, 13.06.050
HB0030B, AM CSHB 30(FIN), introduced 03/02/2022: 23.30.190, 23.30.041, 23.30.215
HB0030A, AM HB 30, introduced 01/08/2021: 23.30.215, 23.10.699, 23.10.430, 23.30.190, 23.30.041, 13.06.050