04/26/2019 03:15 PM House LABOR & COMMERCE

         HB  68-LABOR STDRS/SAFETY; WORKER COMPENSATION                                                                     
                                                                                                                                
3:58:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  final 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."                                                                             
                                                                                                                                
3:59:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute (CS) for HB 68,  labeled 31-GH1049\M, Marx, 4/5/19, as                                                               
the working draft.                                                                                                              
                                                                                                                                
CO-CHAIR LEDOUX objected for the purpose of discussion.                                                                         
                                                                                                                                
3:59:56 PM                                                                                                                    
                                                                                                                                
DENEEN  TUCK,  Staff,  Representative  Gabrielle  LeDoux,  Alaska                                                               
State   Legislature,   presented   the   changes   in   committee                                                               
substitute, Version M.   She stated that there  was "a three-year                                                               
sunset added on to it in several sections."                                                                                     
                                                                                                                                
4:00:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked why a sunset was added.                                                                             
                                                                                                                                
MS. TUCK explained  that if joining the  two [divisions] together                                                               
doesn't work after three years they will separate.                                                                              
                                                                                                                                
CO-CHAIR LEDOUX added  that a sunset allows for a  trial run with                                                               
the ability  to return to the  present system if it  doesn't work                                                               
out as planned.                                                                                                                 
                                                                                                                                
REPRESENTATIVE HANNAN  pointed out that  HB 68 originated  at the                                                               
request of the governor.  She  asked why there wasn't a sunset in                                                               
the original  bill and  the Department  of Commerce,  Community &                                                               
Economic Development (DCCED) views it as the only change.                                                                       
                                                                                                                                
4:01:53 PM                                                                                                                    
                                                                                                                                
CATHY  MUNOZ,   Deputy  Commissioner,   Department  of   Labor  &                                                               
Workforce  Development,  responded  that the  proposed  committee                                                               
substitute  includes the  three-year  sunset, which  is the  only                                                               
change from the  original bill.  She further noted  that the idea                                                               
for the division  merger came from within the  department and the                                                               
governor supported proceeding with legislation.                                                                                 
                                                                                                                                
REPRESENTATIVE  HANNAN  questioned  whether  the  DCCED  has  any                                                               
objection to the sunset.                                                                                                        
                                                                                                                                
MS.  MUNOZ replied  that  it's more  work;  nonetheless they  are                                                               
willing to address concerns and  demonstrate that the merger will                                                               
be a success.                                                                                                                   
                                                                                                                                
4:02:50 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:02:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES moved to report  CSHB 68, Version GH1049\M,                                                               
Marx, 4/5/19,  out of  committee with  individual recommendations                                                               
and the  accompanying fiscal  notes.   There being  no objection,                                                               
CSHB 68(L&C)  was reported  out of the  House Labor  and Commerce                                                               
Standing Committee.