03/08/2018 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB86 | |
| SB205 | |
| SB62 | |
| SB112 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 157 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 205 | TELECONFERENCED | |
| += | SB 62 | TELECONFERENCED | |
| += | HB 86 | TELECONFERENCED | |
| += | SB 112 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 8, 2018
1:32 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Kevin Meyer, Vice Chair
Senator Gary Stevens
Senator Berta Gardner
Senator Peter Micciche
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 86
"An Act relating to nonrenewal of occupational licenses for
default on a student loan."
- MOVED HB 86 OUT OF COMMITTEE
SENATE BILL NO. 205
"An Act relating to the Regulatory Commission of Alaska; and
relating to telecommunications regulations, exemptions, charges,
and rates."
- HEARD & HELD
SENATE BILL NO. 62
"An Act repealing the certificate of need program for health
care facilities; making conforming amendments; and providing for
an effective date."
- HEARD & HELD
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 112
"An Act relating to the controlled substance prescription
database; relating to disability; excluding independent
contractors from workers' compensation coverage; employer-
required drug testing; relating to the office of administrative
hearings; and providing for an effective date." relating to the
Alaska Workers' Compensation Board; relating to the payment of
workers' compensation or benefits; relating to compensable
injuries; relating to rehabilitation and reemployment of injured
workers; relating to reemployment vouchers; relating to the
treatment or care of employees; relating to use of evidence-
based treatment guidelines; relating to prescribing or
dispensing a controlled substance to an employee for a
compensable injury; relating to workers' compensation
prehearings; relating to the filing of claims for workers'
compensation benefits or petitions for other relief; relating to
the burden of proof and credibility of witnesses in workers'
compensation matters; relating to attorney fees; relating to the
filing of a verified annual report; relating to permanent total
disability; relating to temporary total
- HEARD & HELD
HOUSE BILL NO. 157
"An Act relating to the Alaska Life and Health Insurance
Guaranty Association; and providing for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 86
SHORT TITLE: STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL
SPONSOR(s): REPRESENTATIVE(s) CLAMAN
01/27/17 (H) READ THE FIRST TIME - REFERRALS
01/27/17 (H) EDC, L&C
03/01/17 (H) EDC RPT 7DP
03/01/17 (H) DP: TALERICO, PARISH, KOPP, SPOHNHOLZ,
JOHNSTON, FANSLER, DRUMMOND
03/01/17 (H) EDC AT 8:00 AM CAPITOL 106
03/01/17 (H) Moved HB 86 Out of Committee
03/01/17 (H) MINUTE(EDC)
03/22/17 (H) L&C AT 3:15 PM BARNES 124
03/22/17 (H) Heard & Held
03/22/17 (H) MINUTE(L&C)
03/24/17 (H) L&C AT 3:15 PM BARNES 124
03/24/17 (H) Moved HB 86 Out of Committee
03/24/17 (H) MINUTE(L&C)
03/27/17 (H) L&C RPT 6DP 1NR
03/27/17 (H) DP: SULLIVAN-LEONARD, STUTES, WOOL,
JOSEPHSON, BIRCH, KITO
03/27/17 (H) NR: KNOPP
03/29/17 (H) TRANSMITTED TO (S)
03/29/17 (H) VERSION: HB 86
03/31/17 (S) READ THE FIRST TIME - REFERRALS
03/31/17 (S) EDC, L&C
04/12/17 (S) EDC AT 8:00 AM BUTROVICH 205
04/12/17 (S) Heard & Held
04/12/17 (S) MINUTE(EDC)
04/14/17 (S) EDC RPT 4DP
04/14/17 (S) DP: STEVENS, BEGICH, COGHILL, HUGHES
04/14/17 (S) EDC AT 8:30 AM BUTROVICH 205
04/14/17 (S) Moved HB 86 Out of Committee
04/14/17 (S) MINUTE(EDC)
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
01/30/18 (S) Heard & Held
01/30/18 (S) MINUTE(L&C)
03/08/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 205
SHORT TITLE: TELECOMMUNICATIONS REGULATION/EXEMPTIONS
SPONSOR(s): SENATOR(s) MEYER
02/19/18 (S) READ THE FIRST TIME - REFERRALS
02/19/18 (S) L&C
02/27/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/27/18 (S) Heard & Held
02/27/18 (S) MINUTE(L&C)
03/08/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 62
SHORT TITLE: REPEAL CERTIFICATE OF NEED PROGRAM
SPONSOR(s): SENATOR(s) WILSON
02/17/17 (S) READ THE FIRST TIME - REFERRALS
02/17/17 (S) L&C, FIN
04/06/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
04/06/17 (S) Heard & Held
04/06/17 (S) MINUTE(L&C)
04/06/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/06/17 (S) -- Testimony <Invitation Only> --
04/07/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
04/07/17 (S) Heard & Held
04/07/17 (S) MINUTE(L&C)
02/06/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/06/18 (S) Heard & Held
02/06/18 (S) MINUTE(L&C)
03/08/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 112
SHORT TITLE: WORKERS COMPENSATION;DRUG DATABASE & TEST
SPONSOR(s): SENATOR(s) GIESSEL
04/12/17 (S) READ THE FIRST TIME - REFERRALS
04/12/17 (S) L&C, FIN
01/22/18 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
01/22/18 (S) L&C, FIN
02/01/18 (S) L&C AT 1:00 PM BUTROVICH 205
02/01/18 (S) Heard & Held
02/01/18 (S) MINUTE(L&C)
03/08/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE MATT CLAMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 86.
NATASHA MCCLANAHAN, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced the committee substitute for SB
205, committee substitute for SB 62, and committee substitute
for SB 112.
EDRA MORLEDGE, Staff
Senator Kevin Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on SB 205 on behalf of
the bill sponsor.
STEPHEN MCALPINE, Chair
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided information on SB 205.
CHRISTINE O'CONNER, Executive Director
Alaska Telecom Association (ATA)
Anchorage, Alaska
POSITION STATEMENT: Provided information on SB 205.
GARY ZEPP, Staff
Senator David Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on SB 62 on behalf of
the sponsor.
JEAN MISCHEL, Legislative Counsel
Legislative Legal Services
Legislative Affairs Agency
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As drafter, provided information on SB 62.
KARI NORE, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Delivered the sectional analysis for version
L of SB 112 on behalf of the sponsor.
ACTION NARRATIVE
1:32:35 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Gardner, Stevens, Meyer, Micciche, and Chair
Costello.
HB 86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL
1:33:09 PM
CHAIR COSTELLO announced the consideration of HB 86 and asked
the sponsor to provide a summary.
1:33:43 PM
REPRESENTATIVE MATT CLAMAN, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 86, said the bill repeals statutes that
allow the Alaska Commission on Postsecondary Education (ACPE) to
threaten nonrenewal of occupational licenses for individuals who
have defaulted on student loans. In the past, those who have had
their licenses revoked have often left the state to set up
practice elsewhere. The state not only loses the ability to
collect but also a skilled member of the Alaska workforce. The
ACPE has not used this authority since 2010 because wage
garnishment is more effective. It makes sense to eliminate this
punitive and ineffective method of student loan debt collection.
CHAIR COSTELLO found no questions and solicited a motion.
1:34:50 PM
SENATOR MEYER moved to report [HB 86], version A, from committee
with individual recommendations and attached fiscal note(s).
1:35:03 PM
CHAIR COSTELLO found no objection and announced that [HB 86]
moved from the Senate Labor and Commerce Standing Committee.
1:35:13 PM
At ease
CHAIR COSTELLO reconvened the meeting and advised that the wrong
bill number was read in the previous motion.
1:35:56 PM
SENATOR MEYER rescinded the previous motion and moved to report
HB 86, version A, from committee with individual recommendations
and attached fiscal note(s).
1:36:14 PM
CHAIR COSTELLO stated that without objection, HB 86 moved from
the Senate Labor and Commerce Standing Committee.
1:36:28 PM
At ease
SB 205-TELECOMMUNICATIONS REGULATION/EXEMPTIONS
1:39:07 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 205. She noted the proposed committee
substitute (CS).
1:39:28 PM
SENATOR MEYER moved to adopt the work draft CS for SB 205,
labeled 30-LS1431\D, as the working document.
CHAIR COSTELLO objected for discussion purposes.
1:40:10 PM
NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, reviewed the following changes from
version A to version D of SB 205:
• Sec. 5 was removed due to an open docket with the
Regulatory Commission of Alaska (R-18-001) in
relation to exchange access charges and the
administration of those charges.
• The reference to AS 42.05.850 in sec. 7 was also
removed due to the open docket with the
Regulatory Commission of Alaska (R-18-001).
• Sections renumbered accordingly.
CHAIR COSTELLO identified the individuals available to answer
questions. She asked Ms. Morledge if she had anything to add.
1:41:16 PM
EDRA MORLEDGE, Staff, Senator Kevin Meyer, Alaska State
Legislature, Juneau, Alaska, said the committee substitute makes
the relatively minor change of removing Section 5.
CHAIR COSTELLO asked if removing Section 5 and the reference in
Section 7 due to an open docket would increase the likelihood
that portions of the bill would come back before the legislature
in the future.
MS. MORLEDGE said she didn't believe so, but she would defer to
the RCA commissioner who was on line.
1:42:08 PM
STEPHEN MCALPINE, Chair, Regulatory Commission of Alaska,
Anchorage, Alaska, said he can't answer that until the
commission has the public hearing which is scheduled for next
Wednesday. Whether a matter is brought back before the
legislature is dependent upon who may disagree with the outcome
of the commission's work. The regulation itself is dealt with in
public. Several public meetings are typically held and
interested parties are invited to comment.
1:43:38 PM
CHRISTINE O'CONNER, Executive Director, Alaska Telecom
Association (ATA), Anchorage, Alaska, said she didn't expect
that Section 5 and the corresponding reference in Section 7
would be brought back to the legislature based on the outcome of
the docket. ATA is working with the RCA through docket R-18-001
to create a new version and updates to the Alaska Universal
Service Fund. This change will be involved in the resolution.
1:44:25 PM
SENATOR GARDNER asked Commissioner McAlpine if the RCA had
concerns about or had taken a position on SB 205.
MR. MCALPINE said the RCA has done a preliminary analysis of the
bill and found it does a tremendous amount of change in a page
and a half. Some of the changes would significantly alter the
way the RCA does business at the commission and significantly
alter the relationship between the commission and the
telecommunications industry. Although some have said that the
bill does not affect the Alaska Universal Service Fund, he
believes the completed analysis will show that the bill offers
significant changes. He anticipates that the RCA will take a
position on the bill after the public meetings are complete.
SENATOR GARDNER asked if he believes that consumers will be
better off or worse off with passage of SB 205.
MR. MCALPINE said he would answer with an example. When he heard
the comment that the bill would result in significant consumer
changes to RCC [regulatory cost charges] payments, he looked at
his own telephone bill. One bill shows a $0.16 charge as opposed
to the Alaska Universal Service Fund, where the bill shows a
$4.87 charge plus a $4.00 charge that is billed directly from
the telephone company and collected by the telephone company.
Then there is the federal Universal Service Charge, which is an
additional $3.04. Totaling those numbers shows the Alaska
Universal Service Fund in many instances surpasses the amount
that is collected at the federal level. At the last look, 19.1
percent of an individual's bill was for the Alaska Universal
Service Fund and 19 percent was the federal amount.
MR. MCALPINE said one of the things the regulation looks at is
trying to gain control over the ever-increasing charge to the
consumer on the Alaska Universal Service Fund. SB 205 would
cease the payment of the regulatory cost charges the $0.16, as
of June 30, 2019. The RCA still has to maintain staff to perform
the federal services as well as going through regulatory matters
and legislative matters. The staff has been reduced from five to
two. But getting rid of the regulatory cost charges (RCCs) does
not affect the amount of time and labor these staff are
investing. It just eliminates the telephony industry from having
to pay their share of that. In addition, the electric, water,
sewer, garbage, all of the other utilities, would have to make
up for that because it's basically pro-rata on the amount of
time the RCA spends with the various industries.
He said he imagines after the commission has done a full and
detailed analysis as well as holding public meetings and
comments the RCA will be better able to inform the committee.
SENATOR GARDNER said she looks forward to the report once the
analysis is complete.
SENATOR MEYER asked when the committee could expect the results
of the public meetings and comments and the full analysis.
MR. MCALPINE said the commission did the initial analysis in two
days and staff is working on it now. The first public meeting
for this agenda item is scheduled for next Wednesday and the
analysis should be complete by March 19, 2018.
1:50:52 PM
At ease
1:51:57 PM
CHAIR COSTELLO reconvened the meeting and welcomed Ms. O'Connor
to respond to Mr. McAlpine's comments.
1:52:10 PM
MS. O'CONNOR said SB 205 does not change AS 42.05.254 that
authorizes the RCA to self-fund. The transition will allow time
to adjust the RCCs to actual cost. The bill does eliminate
activity that the telecommunications industry generates to the
RCA. These are things like tariff filings and reports about long
distance competition. She noted that she described those things
when she testified previously. There will definitely be a
decrease in activity and the transition will provide time to
develop a mechanism to assess actual costs per AS 42.05.254.
1:53:19 PM
SENATOR GARDNER said she had contact with concerned constituents
who had misunderstood the bill the same way she had. Two who
cannot get good cell phone reception worried about losing their
landlines in outlying areas and Ms. O'Connor was going to put on
the record that they would not be in danger of losing their
landlines.
MS. O'CONNER said SB 205 does not change the obligation to
provide landline service. That obligation exists through the
certificate of public convenience and necessity, which is AS
42.05.261 and AS 42.05.271. There must be permission from the
RCA to do that. A provision in regulation, 3 AAC 52.365,
prohibits long distance carriers from discontinuing service
without RCA permission. There is another level of federal rules
that require companies to ask permission. She noted 48 percent
of households have landlines. They are committed to providing
that service. They are just trying to make the paperwork less
expensive for themselves and the RCA.
1:55:33 PM
CHAIR COSTELLO said it is not her intention to slow the bill,
but in the interest of the public process it should be held in
committee until they have the position of the RCA.
SENATOR MEYER asked for a description of the Alaska Universal
Fund. Chair McAlpine expressed concern about not getting the
money from that anymore. He did not understand the difference
between that and the RCC fund.
MS. O'CONNER said the Alaska Universal Service Fund comes from a
surcharge on customer bills. That fund supports the
telecommunications networks in Alaska and is distributed through
the Alaska Universal Service Administrative Company, which
reports to the RCA. The funds support voice and broadband
service because the networks today support all services. Docket
R-18-001 is open at the RCA to modernize that. Due to the
declining number of landlines that support that fund, it is
funded by an assessment on certain revenues. That surcharge has
increased to 19 percent and they feel it's too high. They filed
a comprehensive proposal in the docket last Monday to set a 10
percent cap. It will have an impact on companies' support for
remote areas, but they felt it needed to happen in the consumer
interest. It is not connected to this bill. The regulatory cost
charge that is allowed to the RCA under AS 42.05.254 is
connected and it is much smaller.
SENATOR MEYER said there is talk that this bill would have a
negative impact on rural households and the commissioner said
other utility companies.
MS. O'CONNER said there will be no adverse effect on rural
communities. Some of the companies that will benefit the most
from having more efficiencies in not having to do filings that
are characterized as unactionable serve rural areas. They will
devote any resources they save to operating their networks. It
is not the intent to impact other utility companies. They fully
expect to pay the cost of any continuing oversight and
regulations of the telecommunications industry. It will be much
reduced. Should issues regarding telecommunications come to the
RCA, that self-funding statute allows the assessment of actual
cost. They are open to proposals and suggestions. The intent is
not to disrupt the activities. They are trying to be more
efficient for the industry and the RCA.
SENATOR MEYER summarized that should SB 205 pass, there should
be less activity for the RCA and there will also be less revenue
coming in. He said, "But the two in your mind should balance
out. Is that fair?"
MS. O'CONNER said yes and that is why ATA proposed the year-long
extension of the effective date. It is to ensure that there is
no disruption.
CHAIR COSTELLO asked Mr. McAlpine if the RCA will use testimony
from this committee in its review of the impact of the bill.
MR. MCALPINE replied that's a definite yes.
CHAIR COSTELLO asked if the sponsor had anything to add.
MS. MORLEDGE pointed out that the fiscal note was prepared by
the RCA on February 23, 2018. She added, "I think perhaps they
have been continuing their analysis of the bill since that
time."
2:01:24 PM
CHAIR COSTELLO removed her objection. Finding no further
objection, version D of SB 205 was adopted.
[SB 205 was held in committee.]
2:01:51 PM
At ease
SB 62-REPEAL CERTIFICATE OF NEED PROGRAM
2:04:33 PM
CHAIR COSTELLO reconvened the meeting, announced the
consideration of SB 62, and noted the proposed committee
substitute (CS).
2:05:02 PM
SENATOR MEYER moved to adopt the work draft CS for SB 62,
labeled 30-LS0502\D, as the working document.
CHAIR COSTELLO objected for discussion purposes.
2:05:19 PM
NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, explained the following changes
from version A to version D of SB 62:
SB 62 version A would have repealed the certificate of
need program for healthcare facilities. After three
committee hearings in Senate Labor and Commerce
changes were made to the legislation based on
conversations with stakeholders and public testimony.
SB 62 version D allows for an exemption from the
certificate of need program if the new construction of
a healthcare facility, alteration of bed capacity, or
addition of a category of health services is in a
location that is over 100 miles from another
healthcare facility. This removes a barrier for remote
communities that are currently struggling to attract
and retain healthcare services in an effort to provide
equal access to care for all Alaskans.
2:06:22 PM
CHAIR COSTELLO removed her objection and version D was adopted.
She noted an attorney from legislative legal was available to
answer questions. She asked Mr. Zepp to comment on how the
committee substitute changes the scope of the bill. It is a
tailored response to the testimony the committee heard from
Interior Alaskans about their inability to access health care in
the community. She noted that the next committee of referral is
Finance.
GARY ZEPP, Staff, Senator David Wilson, Alaska State
Legislature, Juneau, Alaska, said the evolution of the bill is
in the right direction for the people of Delta. The original
intent was for communities to decide and remove the government
barriers that are currently in place for the certificate of need
program. While the bill isn't as broad in scope, he believes the
sponsor would be pleased that it is still helping Alaskans
provide health care services and facilities in their
communities.
CHAIR COSTELLO said the committee also heard that going through
the process of certificate of need was valuable. Communities can
still go through that process. She noted that they reached out
to the Department of Health and Social Services (DHSS) for
information about applications received and what communities are
paying. There was a recognition that the regulations regarding
certificate of need have not been updated in some time. Her hope
is that as this version of the bill moves forward, it sends a
message to the department that updating the regulations would be
helpful. She looks forward to discussion in the Senate Finance
because it surrounds the cost of health care. Whether this is
the answer remains to be seen.
2:10:17 PM
SENATOR GARDNER asked if the committee could expect to hear from
the Department of Health and Social Services on the committee
substitute and see updated fiscal notes.
CHAIR COSTELLO said it was her understanding that DHSS won't
state a position on the bill until it looks like it will pass.
MS. MCCLANAHAN agreed; a letter to that effect from [the DHSS
deputy commissioner] is in the backup documents.
2:11:08 PM
SENATOR STEVENS commented that it's backward to think that the
department won't get involved until it looks like the bill will
pass.
CHAIR COSTELLO said unless it's a governor's bill, that's been
the common approach. She said her office could reach out to the
department and see if they have a position on the committee
substitute.
2:11:52 PM
SENATOR MICCICHE said the change to AS 18.07.031(a) adds the
words "in a location within 100 miles of another healthcare
facility." The applicability seems to require two parts -
located more than 100 miles from another health care facility
and that it has an existing certificate of need issued by DHSS.
He asked when a certificate of need exists, does it remain in
effect after the construction and during the operation of the
health care facility or at some point, could it be closed down
after the project is complete and would the applicability affect
the outcome of Section 1.
2:12:59 PM
JEAN MISCHEL, Legislative Counsel, Legislative Legal Services,
Legislative Affairs Agency, Alaska State Legislature, Juneau,
Alaska, said the applicability provision is essentially a hold
harmless provision. The courts have found that certificates of
need have some value and are construed as a property interest.
They exist during the operation of the health care facility;
they don't go away after construction. They're attached, they
get renewed, and modified over time.
SENATOR MICCICHE commented that exactly 100 miles is not
covered. Section 1 has more than 100 miles in applicability and
within 100 miles, which is somewhat less than 100 miles. He
asked if that is a potential problem. Although the chance that
it is exactly between 100 and 101 miles is rare, he asked if
that is a gap the committee should clarify.
MS. MISCHEL said she didn't see the gap. Legislative legal
interprets "within 100 miles" to include 100 miles and "more
than 100 miles" would be anything over 100 miles.
2:15:04 PM
CHAIR COSTELLO stated she would hold SB 62 until the Department
of Health and Social Services provided an updated opinion on the
topic.
MS. MCCLANAHAN clarified that the letter was from the deputy
commissioner of DHSS, not the commissioner.
2:15:28 PM
At ease
SB 112-WORKERS COMPENSATION;DRUG DATABASE & TEST
2:17:19 PM
CHAIR COSTELLO announced the consideration of SB 112 and noted
the proposed committee substitute (CS).
2:17:43 PM
SENATOR MEYER moved to adopt the work draft CS for SSSB 112,
version 30-LS0318\L, as the working document.
CHAIR COSTELLO objected for discussion purposes.
2:18:06 PM
NATASHA MCCLANAHAN, Staff, Senator Costello, Alaska State
Legislature, Juneau, Alaska, reviewed the following changes from
version R to version L of SB 112.
The following changes were made based on conversations
with stakeholders, public testimony at the initial
hearing before the Senate Labor and Commerce Committee
and based on conversations with the Department of
Labor:
• The transferring of hearing duties from Hearing
Officers to the Office of Administrative
Hearings, Administrative Law Judges was removed.
• The PDMP/Controlled Substance sections were
revised to prevent possible HIPPA violations.
• Changes to the Workers Comp Board composition
have been removed.
• Permanent Total Disability benefit termination
has been removed.
• Permanent Partial Impairment benefit termination
and lump sum payment have been removed.
• Temporary Total Disability benefit termination at
104 weeks has been removed.
• The repeal and reenacting of the vocational
rehabilitation program to a voucher system has
been removed.
• Reference to an employer choosing a physician has
been removed.
• Reporting duties of the Medical Services Review
Committee have been removed.
2:19:30 PM
KARI NORE, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, delivered the following sectional
analysis for version L of SB 112 on behalf of the sponsor:
Section 1: Amends AS 23.10.620 by adding a new
subsection to allow an employer to require an employee
to undergo drug testing if the employee has been
prescribed a controlled substance under AS 23.30.096.
Section 2: Repeals and reenacts AS 23.30.010(a) to
provide that a compensable injury must be established
using relevant objective medical evidence and must be
the major contributing cause of any resulting
condition, disability, or need for medical treatment.
Provides that subjective complaints must be confirmed
by physical examination or diagnostic testing.
2:20:37 PM
At ease
2:20:55 PM
CHAIR COSTELLO reconvened the meeting.
2:21:05 PM
MS. NORE continued the sectional analysis for SB 112, version L.
Section 3: Amends AS 23.30.095(a) to require that the
employer furnish medical treatment in accordance with
evidence-based treatment guidelines. Allows employer
or insurer to request a third party to conduct a
utilization review for treatment recommended outside
of the evidence-based treatment guidelines. Provides
that if medical treatment is recommended two years
after the date of injury, the employee may not be
afforded the presumption of compensability but that
the injured will have a right to review by the board.
Section 4: Amends AS 23.30.095(d) to allow for
suspension of compensation for refusal of appropriate
diagnostic tests.
Section 5: Amends AS 23.30.095(e) to require, in
certain circumstances, submission to examination by a
mental health provider.
Section 6: Amends AS 23.30.095(o) to require
palliative care after medical stability to be
consistent with evidence-based treatment guidelines.
Section 7: Amends AS 23.30.095 by adding new
subsections relating to payment for durable medical
equipment, prosthetics, orthotics or supplies and
prescription drugs.
Section 8: Amends AS 23.30 by adding AS 23.30.096
relating to prescribing or dispensing controlled
substances to employees.
Section 9: Amends AS 23.30.097(d) to state that
payment for medical treatment is not due immediately
or on demand, it is due within 30 days after the
employer receives the provider's bill and a completed
report.
Section 10: Amends AS 23.30.097(g) to add that an
employer shall reimburse an employee's prescription
charges within 30 days after the employer receives the
employee's request for reimbursement.
Section 11: Amends AS 23.30.105(a) to replace the term
disability.
Section 12: Amends AS 23.30.107(b) to remove a
reference related to the Second Independent Medical
Exam.
Section 13: Amends AS 23.30.110(e) to allow for
electronic submission of the acceptance or rejection
of a claims.
Section 14: Amends AS 23.30.120(a) to require that an
employee establish a preliminary link between
employment and resulting condition, disability, or
need for medical treatment through objective relevant
medical evidence before being afforded the
presumptions listed in that subsection.
Section 15: Amends AS 23.30.120 by adding new
subsections relating to establishing the preliminary
link and presumption under AS 23.30.120(a).
Section 16: Amends AS 23.30.122 by adding new
subsections relating to medical expert and lay
testimony.
Section 17: Repeals and reenacts AS 23.30.145
governing the award and payment of attorney fees.
Section 18: Amends AS 23.30.155(m) to repeal the
$1,000 civil penalty when an annual report is
incomplete when filed.
Section 19: Amends AS 23.30.230(a) to provide a
definition of "independent contractor."
Sections 20-21: Amend the definitions of "arising out
of and in the course of employment" and "attending
physician."
Section 22: Repeals AS 23.30.095(k) (relating to a
second independent medical evaluation), 23.30.110(g)
(relating to submission to a physical examination),
23.30.135(a) (relating to procedure before the board),
23.30.155(h) (relating to the board's authority).
Section 23: Adds an applicability provision that
states that secs. 2-22 of the Act apply to claims for
injuries filed on or after the effective dates of
those sections.
2:25:29 PM
CHAIR COSTELLO stated her intention to hold the bill to give
members a chance to review it. She asked the members to send any
questions to her aide, Natasha McClanahan, and they would be
forwarded to Senator Giessel. She asked Ms. Nore if she had
anything to add.
MS. NORE advised that the committee substitute was drafted in
response to the public testimony and the concerns that were
voiced.
2:26:18 PM
CHAIR COSTELLO removed her objection and version L was adopted.
[SB 112 was held in committee with public testimony closed.]
2:26:49 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:26 p.m.