Legislature(2019 - 2020)ADAMS ROOM 519
05/06/2019 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB68 | |
| HB31 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 68 | TELECONFERENCED | |
| += | HB 31 | TELECONFERENCED | |
HOUSE BILL NO. 68
"An Act relating to the division of labor standards
and safety; relating to the division of workers'
compensation; establishing the division of workers'
safety and compensation; and providing for an
effective date."
2:35:55 PM
Vice-Chair Johnston MOVED to ADOPT proposed committee
substitute for HB 68, Work Draft 31-GH1049\U(Marx,
05/03/19) (copy on file).
There being NO OBJECTION, it was so ordered.
Co-Chair Wilson invited the department to the testifier
table. The committee would hear from the department and a
review of the committee substitute would follow.
2:36:29 PM
GREY MITCHELL, DIRECTOR, WORKER'S COMPENSATION DIVISION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, relayed that
the bill merged the Division of Worker's Compensation
together with the Division of Labor Standards and Safety.
The divisions shared complimentary missions and functions.
One division worked to prevent accidents, and the other
worked to provide compensation for lost wages and medical
costs if there was an injury. Merging the two divisions
made good sense in many ways. The department was cognizant
of the critical rolls each division played. The merger bill
would not impact any of the legal or regulatory duties of
either division. He aimed to take advantage of position
vacancies and explore opportunities to streamline processes
wherever possible.
Mr. Mitchell continued that the fiscal note reflected
streamlining in a couple of areas. The merger would flatten
the management structure and labor standards and safety by
reclassifying the division director to a deputy director
position. The new position would focus on the new
division's inspection, consultation, and enforcement
functions. It would allow for a middle management reduction
in the Alaska Occupational Safety Health (OSHA) component.
He expected to see additional opportunities to consolidate
and share administrative duties between the division as the
merger matured. The merger would not happen over night but
would be carefully developed over time. The bill did not
propose to change any of the functions of the two
divisions. He expected it to produce opportunities as the
year progressed to share resources and to be more efficient
and effective moving forward delivering the services of the
two divisions.
Co-Chair Wilson asked her staff to further discuss the
bill.
2:39:01 PM
LYNN GATTIS, STAFF, REPRESENTATIVE TAMMIE WILSON, review
the changes in the bill. On page 7, lines 20-22,
"grandparent" was added to AS 23.10.330(a) - exempted
employment which would allow a child to work in a business
that was owned and operated by a parent or a grandparent
under the section. She referred next to page 7, line 26.
The number "17" was changed to "16" to remove authorization
of a work requirement for a 16 year old. On page 8, line 3
"5:00 a.m. to 9:00 p.m." was changed to "7:00 a.m. to
9:00 p.m." defining the time during the day that a 14 year
old or 15 year old child could perform work outside of
school hours. She continued to page 8, lines 8-15 which
added a new section to redefine the conditions and hours
during a day that a 14 year old or 15 year old child could
perform work between June 1 and ending the first Monday of
September of each year as 7:00 a.m. to 10:00 p.m. She
completed reviewing the changes.
Representative Knopp asked about the period beginning
June 1 and ending on the first Monday of September each
year. He clarified that kids would not be allowed to work
starting in September. Co-Chair Wilson indicated there were
two times designated for youth ages 14-15 to be able to
work during school. They would be able to work from 7:00
a.m. to 9:00 p.m. When they were not in school they would
be allowed to work from 7:00 a.m. to 10 p.m.
Representative Knopp did not understand the need for
defining the hours. Co-Chair Wilson explained that defined
times were necessary because of the Fair Labor Standards
act.
Representative LeBon asked if there would be an advantage
to moving the dates back to May 20th. Most high school
graduation dates fell before May 20th. Co-Chair Wilson
relayed that the federal government would not allow it.
2:43:06 PM
Co-Chair Wilson OPENED Public Testimony.
2:43:15 PM
Co-Chair Wilson CLOSED Public Testimony.
Co-Chair Wilson invited the department to review the fiscal
notes.
2:43:43 PM
PALOMA HARBOUR, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, OFFICE OF
MANAGEMENT AND BUDGET, relayed that fiscal note 1 was for
the Workers' Compensation component. It was a zero fiscal
note. The department did not anticipate immediate savings
in Workers' Compensation as a part of the merger, but it
expected out years savings not presently identified. Fiscal
note 2 was for the OSHA component where the department was
finding savings in some administrative support and some
mid-level management. The total savings was $283,000 of
Workers' Safety Compensation Administration account funds.
Representative Knopp was curious about the reduction of
$283,000 in the personal services line. He highlighted that
the funds were listed as DGF. He asked if the savings was
from inter-agency receipts or program receipts. He asked
what would happen to the savings.
Ms. Harbour responded that the funds were designated
general funds from the Workers' Safety Compensation
Administration account. It was a fee on insurance premiums
that went into a DGF account and could go towards Workers'
Compensation and safety program administration. It would be
a savings to the account and would stay in the account for
future year spending.
Representative Knopp asked if there would be any reductions
in employer premiums. Ms. Harbour replied that the cost
savings would not result in premium savings. However, there
had been premium savings which resulted in the revenue
going into the account being lower. She indicated the bill
would help the state to stay at the lower revenue amount.
Co-Chair Wilson indicated amendments were due to the
co-chair's office by May 7, 2019 at 9:00 a.m.
Representative Knopp appreciated the bill, as it
represented the department's efforts towards true
consolidation and efficiencies.
HB 68 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 31 3 SLIDES.pdf |
HFIN 5/6/2019 1:30:00 PM |
HB 31 |
| HB031 Amendment 1 Wilson 5.6.19.pdf |
HFIN 5/6/2019 1:30:00 PM |
HB 31 |