Legislature(2023 - 2024)GRUENBERG 120
01/29/2024 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB170 | |
| HB88 | |
| HB63 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 88 | TELECONFERENCED | |
| + | HB 63 | TELECONFERENCED | |
| *+ | HB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 63-REPEAL WORKERS' COMP APPEALS COMMISSION
2:01:57 PM
CHAIR VANCE announced that the final order of business would be
HOUSE BILL NO. 63, "An Act repealing the Workers' Compensation
Appeals Commission; relating to decisions and orders of the
Workers' Compensation Appeals Commission; relating to superior
court jurisdiction over appeals from Alaska Workers'
Compensation Board decisions; repealing Rules 201.1, 401.1, and
501.1, Alaska Rules of Appellate Procedure, and amending Rules
202(a), 204(a) - (c), 210(e), 601(b), 602(c) and (h), and
603(a), Alaska Rules of Appellate Procedure; and providing for
an effective date."
2:02:13 PM
REPRESENTATIVE RAUSCHER, prime sponsor, presented HB 63. He
shared the sponsor statement [included in the committee packet],
which read as follows [original punctuation provided]:
House Bill 63 would save $433,000 per year, remove an
unnecessary bureaucracy, and make Alaska's Workers'
Compensation program more sustainable by repealing the
Alaska Workers' Compensation Appeals Commission.
Passing House Bill 63 will return jurisdiction over
appeals of Workers' Compensation Board decisions to
the Superior Court. Currently the Appeals Commission
handles these cases, and their decisions can be
appealed to the Supreme Court.
For decades, the Superior Court had handled these
cases. Operating the Appeals Commission costs $433,000
annually and it currently has two fulltime employees,
while the Court System has testified that they can
handle these cases with their current budget and
staffing levels. The Appeals Commission's workload has
decreased considerably since it was created in 2005.
In 2007, they had 49 new cases filed and published 42
decisions but by 2022 they only had 14 new cases and
published only 5 decisions.
In 2015, the House Labor and Workforce Finance
Subcommittee found the Appeals Commission to be "an
ineffective division" and that "their closure rate and
average time for closure is not demonstrably better
than the process was before the establishment of the
commission."
This bill would create a transition period between
June 1 and December 1 of 2023 when new cases would be
filed with the Superior Court, but the Appeals
Commission would continue to handle the cases that
were already pending. On December 2, all pending cases
would be transferred to the Superior Court and the
Appeals Commission will be fully repealed on December
31.
Alaska's Workers' Compensation regulation is funded by
service fees collected from insurance providers and
self-insurers. In Fiscal Year 2021 the state collected
$6.3 million in fees and the Department of Revenue
projects this will fall to $5.9 million in FY 2022 and
$5.4 million in FY 2023. Given Alaska's budget deficit
and this declining revenue, we simply cannot afford to
spend $433,000 to operate a separate commission when
the courts are well equipped to handle these cases.
2:04:37 PM
MR. MCKEE, on behalf of Representative Rauscher, prime sponsor,
presented the sectional analysis for HB 63 [included in the
committee packet], which read as follows [original punctuation
provided]:
Section 1 establishes that the Workers' Compensation
Board (Board) shall maintain records of the repealed
Workers' Compensation Appeals Commission (Commission).
It also establishes that Commission decisions remain
as legal precedent unless overturned or modified by
the courts.
Section 2 removes references to the Commission.
Section 3 removes a reference to the Commission.
Section 4 removes a reference to the Commission.
Section 5 creates a new AS 23.30.126 governing appeals
of Workers' Compensation Board decisions.
Subsection (a) establishes that Board decisions and
orders become effective when filed, that these
decisions and orders can be modified or reconsidered,
and that a party may appeal a decision or order to the
superior court.
Subsection (b) establishes that Board decisions and
orders are not automatically stayed pending judicial
review and establishes the criteria for when a court
may issue a stay.
Subsection (c) establishes that factual findings made
by the Board shall be conclusive if supported by
substantial evidence and that AS 44.62.570 governing
administrative appeals shall apply to the appeals of
Board decisions.
Subsection (d) allows the director of the Division of
Workers' Compensation to intervene in appeals and to
file appeals if a party is not represented by an
attorney and the case presents an unsettled question
of law.
Section 6 is a conforming amendment to reflect the
changes made by Section 5.
Section 7 removes a reference to the Commission.
Section 8 repeals the court rules related to the
Commission.
Section 9 repeals the statutes related to the
Commission.
Section 10 contains indirect court rule amendments to
reflect the changes made by Section 5.
Section 11 establishes which procedures apply to
appeals pending before the Commission between June 1
and December 1, 2023.
Subsection (a) establishes that the Commission shall
continue to handle cases through December 1, 2023 and
that the Commission shall continue all cases pending
on December 1, 2023.
Subsection (b) establishes that the new procedure in
Section 5 does not apply to cases before December 1,
2023.
Subsection (c) establishes that the old statutes apply
for appeals of final decisions made by the commission
and issued by December 1st.
Section 12 establishes transitional provisions.
Subsection (a) establishes that starting June 1, 2023,
all new appeals of Board decisions shall be filed with
the Superior Court under Section 5.
Subsection (b) establishes that appeals of Commission
rulings issued by December 1, 2023 shall be filed with
the Supreme Court.
Subsection (c) ends the Commission's ability to order
reconsideration of cases on December 2, 2023. All
outstanding requests for reconsideration pending on
that date would be automatically rejected, and any
party whose request was denied may appeal their case
to the Supreme Court.
Subsection (d) requires the Commission to transfer the
files for all pending cases to the Superior Court on
December 2, 2023 and to provide the parties 30 days'
notice of the transfer of jurisdiction. If the court
finds that the records do not meet the requirements of
the Rules of Appellate Procedure, it may order the
Commission to make necessary changes and resubmit
them.
Section 13 ends the terms of all Commission members on
December 31, 2023.
Section 14 makes this act only take effect if the
court rule changes in Sections 8 and 10 are adopted.
Section 15 provides a June 1, 2023 effective date.
2:08:42 PM
MR. MCKEE directed attention to a PowerPoint presentation,
titled "House Bill 63 Repeal Workers' Compensation Appeals
Commission" [hard copy included in the committee packet]. He
began on slide 2, "House Bill 63," which read as follows
[original punctuation provided]:
Repeals the Alaska Workers' Compensation Appeals
Commission
Returns jurisdiction over Workers' Compensation
appeals to the Superior Court
Saves $482,400 per year
Helps fill the Workers' Compensation budget deficit
and make Alaska's Workers' Compensation system more
solvent
MR. MCKEE continued to slide 3, which featured a flowchart of
the workers' compensation claim appeals process. He moved to
slide 4, "HB 63 Will Save $482,400 Per Year," which read as
follows [original punctuation provided]:
Currently the Commission has 2 full-time employees and
pays for commissioners' travel and per diem
Previously, the Court System has testified that they
can absorb these cases with a zero fiscal note
2:10:06 PM
MR. MCKEE directed attention to the graph on slide 5, indicating
that the commission's workload had declined from 49 cases filed
and 42 published decisions in 2007 to 4 cases filed and 5
decisions issued in 2023. Slide 6 read as follows [original
punctuation provided]:
"The Worker's Compensation Appeals Commission is an
ineffective division? The Commission during the
calendar year of 2013 closed 30 cases for a closure
rate of 67 percent with an average time from filing to
closure of seven months. This closure rate and average
time for closure is not demonstrably better than the
process was before the establishment of the
commission."
House Department of Labor and Workforce Development
Finance Subcommittee, February 25, 2015
2:11:15 PM
MR. MCKEE continued to slide 7, "The workers' Compensation
Appeals Commission Has Not Closed Cases Faster than the Courts,"
which read as follows [original punctuation provided]:
• The Superior Court took "8 to 18 months" to decide
Workers' Compensation Appeals.
• When the Appeals Commission was created, it was
estimated that the Commission could decide cases in 6
months.
• Instead, in 2018 it averaged 12.2 months to decide
cases.
• Even as their workload decreased, in 2021 they still
averaged 9.3 months to decide cases.
• More Commission decisions are appealed to the
Supreme Court, adding months to years before final
resolution.
Sources: Testimony of Paul Lisankie, Director,
Division of Workers' Compensation, Senate Labor and
Commerce Committee, March 10, 2005.
Alaska Workers' Compensation Appeals Commission Annual
Report for Calendar Year 2021.
MR. MCKEE proceeded to slide 8, "HB 63 Will Reduce Appeals to
the Supreme Court," which read as follows [original punctuation
provided]:
When the Superior Court handled appeals approximately
25% of their decisions were appealed to the Supreme
Court.
Since the Commission was created in 2005, 36% of its
decisions have been appealed to the Supreme Court.
Since 2011, 50% of Commission decisions have been
appealed.
Sources: Testimony of Doug Wooliver, administrative
attorney, Alaska Court System, Senate Labor and
Commerce Committee, March 10, 2005. Legislative
Research Services Report 19-175.
2:12:41 PM
MR. MCKEE moved to slide 9, which read as follows [original
punctuation provided]:
Alaska's Workers' Compensation and Safety Program
Faces a Growing Budget Deficit-HB 63 Will Help Fill It
• Workers' Compensation and Safety are funded by a tax
on Workers' Compensation payments
• These programs cost $9.1 million annually and are
projected to remain flat
• Saving $482,4000 will help close the growing budget
gap.
MR. MCKEE concluded on slide 10, "Bottom Line," which read as
follows [original punctuation provided]:
HB 63 saves $482,400 annually
Preserves parties' right to have their cases heard in
timely manner
Will reduce appeals to the Supreme Court
Makes Alaska's Workers' Compensation system more
solvent
2:13:37 PM
REPRESENTATIVE ALLARD asked whether there were any attorneys or
paralegals on the commission.
MR. MCKEE stated that the chair was a lawyer; however, the two
commissioners were not. In response to a follow up question, he
confirmed that the caseload had decreased significantly, but the
time it takes to render a decision remained the same.
REPRESENTATIVE ALLARD highlighted the letter from Mr. Croft, an
attorney, in the supporting documents.
2:14:55 PM
REPRESENTATIVE GROH asked why the number of cases had fallen
over the years.
MR. MCKEE pointed out that more safety measures were being
implemented by companies, resulting in fewer grievances being
filed.
REPRESENTATIVE RAUSCHER explained that businesses were
constantly holding safety meetings and implementing safety
measures to decrease injuries on the job because compensation
costs money.
2:16:35 PM
REPRESENTATIVE GRAY sought to confirm that there was a zero
fiscal note for up to 30 cases.
MR. MCKEE confirmed that the commission could take up to 30
cases at no additional cost. In response to a follow up
question, he said the courts would determine the fiscal cost if
the case count were to rise above 30.
2:17:40 PM
CHAIR VANCE announced that HB 63 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 170 - Sponsor Statement.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 170 |
| HB 170 - v.A.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 170 |
| HB 170 - Sectional Analysis.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 170 |
| HB 170 - Civil Divison of DOL Fiscal Note.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 170 |
| HB 88 - v.B.PDF |
HJUD 1/29/2024 1:00:00 PM |
HB 88 |
| HB 88 - Sectional Analysis v.B.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 88 |
| HB 88 - Explanation of Changes Between v.A to v.B.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 88 |
| HB 88 - DOA Fiscal Note.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 88 |
| HB 88 - DOL Fiscal Note.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 88 |
| HB 63 - Sponsor Statement.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - v.A.PDF |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Sectional Analysis.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Powerpoint Presentation.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Legislative Research - AWCAC Cases 2005-2022.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Supporting Document-Croft Letter 4.2.17.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Supporting Document-Croft Research 4.2.17.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - Court System Fiscal Note.pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |
| HB 63 - DOL - Workers Comp..pdf |
HJUD 1/29/2024 1:00:00 PM |
HB 63 |