Legislature(2019 - 2020)BARNES 124
03/27/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB45 | |
| HB68 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 45 | TELECONFERENCED | |
| *+ | HB 68 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 68-LABOR STDRS/SAFETY; WORKER COMPENSATION
3:41:17 PM
CO-CHAIR LEDOUX announced that the next order of business would
be 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."
3:42:11 PM
CATHY MUNOZ, Deputy Commissioner, Department of Labor &
Workforce Development, presented HB 68. She stated that this
bill combines two divisions within the Department of Labor &
Workforce Development (DLWD), the Division of Workers
Compensation (DWC) and the Division of Labor Standards and
Safety (DLSS). The DLSS is primarily focused on workplace
accidents and enforcing laws related to workplace safety. They
oversee wage and hour issues, mechanical inspections, and the
Alaska Occupational Safety and Health (AKOSH) program. The DWC
is focused on the efficient administration of benefits to
injured workers and enforcing laws related to the Alaska
Workers' Compensation Act [AS 23.30]. The missions of both
divisions are complementary, they have even worked together
historically. She reported that HB 68 will further increase
their opportunities to remove silos and capitalize on
efficiencies through a unified management structure. She
further noted that when Dr. Tamika Ledbetter was first appointed
as the department's commissioner her first directive was to
increase collaboration between divisions.
3:44:20 PM
CO-CHAIR LEDOUX asked for the meaning of "removing silos."
3:44:32 PM
MS. MUNOZ indicated that "removing silos" signifies
collaborating across divisions to enhance the services provided
to the Alaska public. An example, she said, is when
[Commissioner Ledbetter] directed the Job Center network to work
closely with Alaska Vocational Technical Center (AVTEC). She
stated that the department is cognizant of the responsibilities
of each division and there is no intent on changing either of
their missions.
3:47:02 PM
GRAY MITCHELL, Director, Division of Workers' Compensation,
Department of Labor & Workforce Development, began the sectional
analysis of HB 68. He addressed sections 1 through 6, which he
explained are name changes from the DLSS to the new division's
name, the Division of Workers' Safety and Compensation. Section
7 would repeal and reenact AS 23.05.067, service fees for
administration of workers' safety and compensation programs, to
reflect that the new division would receive reports of certain
workers' compensation payments. Section 8 would amend AS
23.10.080, powers and duties of the division, by adding a
paragraph to incorporate the workers' compensation duties that
would be administered by the new division. Section 9 through 14
are name changes from the DWC to the new division's name.
Section 15 repeals AS 23.30.002, Division of Workers'
Compensation; director. Section 16 is a transitional provision
to account for pending matters. Section 17 establishes a July
1, 2019 effective date.
3:53:35 PM
CO-CHAIR LEDOUX inquired as to the purpose of the current bill.
3:53:53 PM
MS. MUNOZ replied that the fiscal note speaks to the specific
changes.
3:54:02 PM
MR. MITCHELL explained that the main purpose of the current bill
is to combine two divisions that are currently under separate
administrations and integrating them so that enforcement actions
are better coordinated. He expressed hope that their
integration would produce a more efficient delivery of service
to the public.
3:55:20 PM
REPRESENTATIVE HANNAN directed attention to section 15, which
dissolved the director of the division of workers' compensation.
She asked if that position is currently filled and if that is
the only position that would be terminated.
3:56:24 PM
MR. MITCHELL stated section 15 repeals the authority to appoint
a director and moves those provisions under section 7 in the
current bill. He added that there is no current plan to
eliminate either director.
3:57:48 PM
MS. MUNOZ noted the director of labor standards and safety is an
unfilled position and the deputy director is the manager of
labor standards and safety and does all of the day to day
authority decision making that happens in that division, adding
that it is not their intent to change that.
3:59:10 PM
MR. MITCHELL explained the fiscal notes; Fiscal note 1; fiscal
note 2 is the labor standards and safety division fiscal note;
not laying any positions off but deleting 2
4:00:31 PM
CO-CHAIR LEDOUX asked where the savings come from if no one will
be laid off.
4:00:43 PM
MS. MUNOZ explained that it would result as a reduction to the
general fund support to the department.
4:00:54 PM
MR. MITCHELL said that the positions that would be eliminated by
the current bill would be the AKOSH program chief as well as the
assistant chiefs for both the Enforcement Section and the
Consultation and Training Section. He noted that this would be
an effort to flatten the management structure by eliminating a
position in middle management and having the deputy director
take a greater role in managing the AKOSH program overall.
4:01:51 PM
REPRESENTATIVE FIELDS asked if the AKOSH chief position is
partially exempt or fully exempt.
4:02:00 PM
MR. MITCHELL stated that it's a classified position.
4:02:12 PM
MR. MITCHELL stated that the other position that would be
affected is a vacant office assistant 2 position. The idea is
that an office assistant would be used to assist and assume that
position. He noted that there are two other efficiencies that
are planned. One is to reclassify the division of labor
standards and safety director position to the deputy director
position. The director is at a range 27 and the deputy director
is a range 25.
4:05:12 PM
REPRESENTATIVE FIELDS asked about the possibility of effectively
cross training the two positions to allow for flexibility.
4:05:28 PM
MR. MITCHELL replied there's no legal restriction against that
possibility; however, it's the silo issue "that crops up." He
offered his belief when there's two separate divisions operating
under separate leadership there is an automatic resistance.
4:06:36 PM
REPRESENTATIVE FIELDS sought to clarify the relative size of the
different divisions. He asked for the number of staff per
division.
4:07:01 PM
MS. MUNOZ answered approximately 700 positions in the Department
of Labor & Workforce Development.
4:07:18 PM
MR. MITCHELL, in response to Representative Fields, said there
is 51 positions in the Workers Compensation Division and
approximately 89 in the Labor Standards and Safety Division.
4:07:32 PM
REPRESENTATIVE FIELDS asked for the number of staff in the
Department of Labor & Workforce Development's other divisions.
4:07:47 PM
MS. MUNOZ replied she did not have those specific numbers at
this time and would follow up with the answer.
4:08:36 PM
REPRESENTATIVE FIELDS inquired as to the current number of
subdivisions within the Labor Standards and Safety Division and
AKOSH.
4:08:57 PM
MS. MUNOZ stated within the Labor Standards and Safety Division
there is the Alaska Occupational Safety and Health (AKOSH)
program, the Mechanical Inspection Section, and the Wage and
Hour Administration.
4:09:35 PM
MR. MITCHELL shared his understanding that the sections within
Workers' Compensation include the Adjudications Section, The
Fishermen's Fund, the Workers' Compensation Benefits Guaranty
Fund, the Second Injury Fund, the Special Investigations Unit,
the administrative unit, and the Reemployment Benefits Section.
4:10:37 PM
REPRESENTATIVE FIELDS restated his question, asking for the
number of staff within each section of the Labor Standards and
Safety Division.
4:10:54 PM
TERRE GALES, Director, Division of Labor Standards and Safety,
Department of Labor & Workforce Development, replied there are
20 in the Wage and Hour Administration, approximately 20 in the
Mechanical Inspection Section, and about 40 in the AKOSH
section.
4:11:12 PM
REPRESENTATIVE FIELDS asked, of the 40 in AKOSH, if they are
somewhat evenly divided between consultation and enforcement.
4:11:18 PM
MR. GALES offered his understanding that it's not exactly an
even split. He said there are "a couple more" staff in
enforcement than there are in consultation.
4:12:00 PM
REPRESENTATIVE FIELDS asked Mr. Mitchell how many hours per week
he's worked in general as the division director over the years.
4:12:19 PM
MR. MITCHELL said it varies. He estimated during legislative
session he works approximately 60-70 hours per week and during
the interim approximately 50 hours per week.
4:12:42 PM
REPRESENTATIVE FIELDS asked if there has been a similar workload
for the Labor Standards and Safety Division director.
4:12:55 PM
MR. MITCHELL answered yes.
4:13:00 PM
REPRESENTATIVE FIELDS validated that Mr. Mitchell and the other
directors of the effective divisions work "beyond normal" office
hours.
4:13:23 PM
CO-CHAIR LEDOUX opened public testimony on HB 68.
4:13:53 PM
DON ETHERIDGE, Alaska American Federation of Labor and Congress
of Industrial Organizations, on behalf of the Alaska AFL-CIO,
expressed concern that when two departments are combined, one
gets left behind. He opined that both divisions are very
important to Alaskans.
4:14:45 PM
REPRESENTATIVE HANNAN asked Mr. Etherdige to elaborate on his
concern.
4:15:38 PM
MR. ETHERIDGE explained the concern is that either department
could get left behind. He said there is concern about the Labor
Standards and Safety Division not being able to complete
inspections because they are already "short-handed." He stated
that Workers' Compensation is also an important division to the
AFL-CIO.
4:16:38 PM
REPRESENTATIVE TALERICO reflected on his personal (previous?)
experience in the private sector. He said there is probably and
opportunity to make incredible improvements to any type of state
safety program by having a closer merger with Workers'
Compensation and the safety department. He offered his belief
that having safety people directly connected to the details and
analysis of compensated injuries is the best way to develop a
far better safety culture and develop programs that improve the
safety of all the workers on site. He opined that combination
could make incredible improvements to an entire safety culture,
even statewide.
4:19:02 PM
REPRESENTATIVE FIELDS acknowledged he agrees with the premise
that the two divisions are complementary. He expressed concern
with the loss of the AKOSH chief, adding that it's more of a
technical professional position than the deputy commissioner,
which is more managerial and policy. He expressed concern with
the idea of permanently losing that ability to insure those
AKOSH functions are united.
4:20:42 PM
CO-CHAIR WOOL said he hopes that the projected savings and
efficiencies will be there. He suggested reevaluating this
after some time to see if it will be more streamlined and more
efficient or more work.
4:22:25 PM
REPRESENTATIVE HANNAN expressed curiosity as to whether the
Alaska DLWD have parallels in the federal government, adding
that state agency structures are frequently developed in
response to federal bureaucracy. She further noted that if it
is known where the injuries are happening then preventing them
is a cheaper and more efficient outcome; however, if it results
in a position going from 70 hours per week to 100 hours, it
probably isn't more efficient.
4:24:27 PM
CO-CHAIR LEDOUX sought clarification on the structure of the
division. She asked if, previously, there was both a director
and a deputy director position, and how long director position
had been vacant.
4:25:07 PM
MR. MITCHELL answered no, the deputy director position that's on
the books now is the same position that the director held in the
past - there was no deputy director position. He offered his
belief that in anticipation for this proposed merger, the person
appointed to head the DLSS was appointed as a deputy director to
avoid having to make adjustments in the future.
4:26:04 PM
CO-CHAIR LEDOUX inquired as to whether there would still be the
deputy director of Labor Standards and Safety who is now acting
as the director doing that work.
4:26:51 PM
MR. MITCHELL answered that's exactly right. He offered a "sneak
peak" into their plan, which is to establish an operational
managerial control over all the enforcement functions within the
combined divisions; primarily that's currently within Labor
Standards and Safety (wage and hour, mechanical inspection,
occupational safety and health). Added to that would be the
special investigations unit that's currently in Workers'
Compensation. He said the deputy director would focus on the
operational management of those enforcement inspection type
related functions, while the director would focus on the overall
administrative issues, the adjudication functions in the
division of Workers' compensation, as well as the benefit
programs and providing support to the deputy director. He opined
that the workload wouldn't necessarily change because there will
still be two leaders in place, adding that producing a joint
leadership team creates unification that could overall provide
better service with the combined divisions.
4:29:17 PM
CO-CHAIR LEDOUX expressed uncertainty that this would be a good
idea. She stated that it looks like there would be savings of
283,000 dollars; however, if there used to be a director instead
of the deputy director and the deputy director is functioning as
the director does it really save anything by taking away the
director position.
4:30:05 PM
MR. MITCHELL said the savings associated with reclassifying the
director position to a deputy position are minimal, adding that
makes up approximately 10,000 of the 283,000 dollars. He stated
the big savings comes from flattening the management structure
in Occupational Safety and Health, noting that almost 200,000
dollars of the total comes from that position alone. He said it
depends on the thought process; whether there needs to be a lot
of people overseeing a program for efficiency or to streamline
things from a management perspective. He noted that there will
still be leadership in both main programs within Occupational
Safety and Health and if things start to go awry with either of
those positions then adjustments can be made.
4:32:27 PM
CO-CHAIR LEDOUX announced HB 68 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 45.Sponsor Statement.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Bill Version A.PDF |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Fiscal Note DCCED.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Backup Sunset Review.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 68.Bill Version A.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Transmittal Letter.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Sectional.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Fiscal Note.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Fiscal Note 2.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Backup Merger Request.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |