Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/10/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Trauma-informed and Resilience-building Workforces and Workplaces | |
| SB73 | |
| SB60 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 73 | TELECONFERENCED | |
| += | SB 60 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 60-REPEAL WORKERS' COMP APPEALS COMMISSION
2:48:44 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 60 "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."
CHAIR BJORKMAN invited Mr. Dunsmore to put himself on the record
and recap the bill. He said this bill was first heard on
February 27.
2:49:14 PM
DAVID DUNSMORE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, said SB 60 would repeal the Alaska
Workers' Compensation Appeals Commission (WCAC), which handles
appeals directly from the Alaska Workers' Compensation Board.
SB 60 would restore jurisdiction of those appeals to the Alaska
Court System. The repeal would save the state $472,900 per year.
He said the Alaska Court System provided a zero fiscal note.
2:50:13 PM
CHAIR BJORKMAN asked whether, taking into account the history
and structure of the Workers' Compensation Appeals Commission,
there is another quasi-judicial, decision-making board in the
state that follows a similar process of appealing to an
intermediary entity before petitioning the Alaska Supreme Court.
MR. DUNSMORE expressed his belief that the answer is no, stating
he believes this is a unique structure where the appeals
commission takes on the role that the Superior Court plays in
other administrative matters.
CHAIR BJORKMAN asked whether a different state agency could take
on this role.
MR. DUNSMORE replied that the Office of Administrative Hearings
(OAH) contracts with certain agencies to handle administrative
hearings. It has been discussed in the past whether moving this
responsibility to OAH would be appropriate. He said that Senator
Wielechowski's position is this would not result in cost
savings. It is appropriate for the courts to hear these appeals
since they are from the initial deliberative administrative
body.
CHAIR BJORKMAN wondered what recourse a person who disputes a
workers' compensation claim decision would have if the Workers'
Compensation Appeals Commission were eliminated.
2:52:53 PM
MR. DUNSMORE replied that SB 60 would restore the jurisdiction
for those appeals to the Alaska Superior Court. A workers'
compensation appeal would be handled like other administrative
appeals and decisions. The Superior Court would handle the part
of the Workers' Compensation Appeals Commission.
CHAIR BJORKMAN said the Workers' Compensation Appeals Commission
was created in 2006. He said that initially, the number of cases
rose; however, the number of cases heard in the past ten years
has decreased significantly. He asked what caused the Workers'
Compensation Appeals Commission workload to decrease by two-
thirds or more.
MR. DUNSMORE replied that he cannot provide a specific answer to
that question. However, the commission is an appeals body that
primarily handles matters of law, and as more case law is
developed, there is less ambiguity that parties might choose to
challenge. He said that the decrease in workload is likely due,
in part, to this factor.
CHAIR BJORKMAN said that it is his understanding, as well, that
there has been significant work toward mediation in the
proceedings before the Alaska Workers' Compensation Board that
likely avoids appeals to the commission.
2:54:48 PM
SENATOR DUNBAR commented that since 2006, industry often reports
about its tremendous focus on safety. He expressed hope that
workers' compensation claims are decreasing as a whole because
there are fewer injured workers. Safety is a commitment in
almost every industry. Alaska has seen a significant reduction
in workplace injuries. He expressed curiosity about who appeals
to the commission, for example, the employee, the insurer, or
other party.
MR. DUNSMORE replied that he has not seen a breakdown of the
number of appeals from claimants and the number from insurers.
SENATOR DUNBAR noted that he found only one statement in his
packet either for or against SB 60, and that statement came from
insurers in favor of keeping WCAC. He expressed his belief that
the committee did not receive any statements of opposition from
workers' groups. He said this seems to indicate that perhaps
insurers might take advantage of the Workers' Compensation
Appeals Commission more frequently, but it is hard to know with
only one piece of commentary in the packet.
2:56:44 PM
CHAIR BJORKMAN expressed his understanding that before
2005/2006, when the Workers' Compensation Appeals Commission was
established, it took the Superior Court 8 - 18 months to render
a decision. Since then, the timeframe to issue a decision has
averaged around one year. In 2015, a Department of Labor and
Workforce Development (DOLWD) report stated that the timeliness
of those decisions changed very little. He sought confirmation
as to the accuracy of this information.
MR. DUNSMORE expressed his belief that the information is
correct. He noted that a significant decrease in workload has
led to enhanced efficiency within the commission in recent
years. He expressed his belief that enacting SB 60 would improve
the average speed of reaching a final resolution in cases. He
explained that during the deliberation on legislation to create
the Workers' Compensation Appeals Commission, committee minutes
indicated that approximately 25 percent of appeals from the
Superior Court were appealed to the Supreme Court. In recent
years, about 50 percent of the commission's cases were appealed.
The sponsor believes that restoring jurisdiction to the
[superior] court would expedite the average time to reach final
resolution for cases. This is because an appeal to the Supreme
Court can add months or years to the time it takes to get a
final resolution.
CHAIR BJORKMAN sought clarification that currently appeals go
straight from the Workers' Compensation Appeals Commission to
the Supreme Court and that repealing the Worker's Compensation
Appeals Commission would restore jurisdiction to the Superior
Court.
MR. DUNSMORE replied that is correct.
2:59:10 PM
CHAIR BJORKMAN opened invited and public testimony on SB 60.
3:00:10 PM
CHAIR BJORKMAN expressed his intention to ask Mr. Collins
questions to provide more depth to the deliberations.
[Technical audio difficulty.]
3:00:38 PM
At ease.
3:01:52 PM
CHAIR BJORKMAN reconvened the meeting and asked Mr. Collins how
the process for a workers' compensation claimant works currently
and how a claimant would be affected if SB 60 were enacted.
3:02:39 PM
CHARLES COLLINS, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development (DOLWD), Juneau,
Alaska, explained the current workers' compensation process in
Alaska. Under the existing system, an injured employee has the
right to file a claim and receive the appropriate benefits. He
said it is supposed to be a non-confrontational law; however, on
occasion, employers may contest claims if they suspected errors
in a claim or had concerns about certain benefits, like
indemnity or medical. In such cases, the matter can be brought
before the Alaska Workers' Compensation Board. This board
consists of a hearing officer employed by the Division of
Workers' Compensation and two panel members, one representing
labor and one representing industry.
MR. COLLINS said the board conducts an adjudication process, and
its decision is published. If any party, be it the employer, an
insurance company acting on behalf of the employer, or the
employee, believes the case was not properly decided, they have
the right to appeal. Currently, these appeals are directed to
the Workers' Compensation Appeals Commission that deals
exclusively with workers' compensation matters. The appeals
commission consists of an administrative law judge or
commissioner with workers' compensation law expertise, two
industry members, and two labor members, all of whom are past
Alaska Workers' Compensation Board members.
3:04:42 PM
MR. COLLINS said appeals are submitted in writing to the appeals
commission or, occasionally, via oral testimony. The Workers'
Compensation Appeals Commission has the option to remand it
back, remand it back in part, or uphold the board's decision.
Due process allows a party the right to further appeal to the
Supreme Court. He said all of these things happen occasionally.
He offered a few statistics about appeals to the Workers'
Compensation Appeals Commission. In the past three years, 54
percent of those appeals involved legal assistance, and 46
percent were pro se, unrepresented employees.
[Technical audio difficulty.]
3:05:46 PM
At ease.
3:06:45 PM
CHAIR BJORKMAN reconvened the meeting. He asked whether there
are other similar bodies specifically assembled to review
decisions made by another quasi-judicial body.
MR. COLLINS replied that the closest comparable body would be
the Office of Administrative Hearings (OAH). OAH hears appeals
from many departments, including occasional unemployment
insurance tax appeals from DOLWD. OAH was established to provide
a centralized venue for administrative law matters and due
process. Alaska refrained from using OAH for workers'
compensation cases because of the specialized nature of workers'
compensation law.
CHAIR BJORKMAN asked whether committee members had questions or
if Mr. Collins wanted to add to his testimony.
MR. COLLINS said he would like to submit additional information.
He said workers' compensation law is in Title 23 of the Alaska
Statutes and 8 AAC 45 of the Alaska Administrative Code. He held
up a book governing workers' compensation law and underscored
that this area of law is considerably more specialized than many
types of law in the state. He noted that having a specialized
knowledge of workers' compensation is not required to practice
it but reiterated that it is a specialized subset of the law in
its own right.
3:10:00 PM
CHAIR BJORKMAN asked if other states have a structure similar to
the Workers' Compensation Appeals Commission in Alaska.
MR. COLLINS replied every state administers workers'
compensation law differently. Workers' compensation is a state
prerogative, and its administration differs from state to state.
Several states have commissions where appeals stay within their
workers' compensation domain and eventually make it to the
Supreme Court. For instance, Maryland does not have panels; they
have judges overseeing the first hearings, which can be appealed
to a commission judge with whom they work closely and is more
interchangeable than in Alaska. In contrast, Alaska separates
the appeals commission from the workers' compensation
adjudication process. While the appeals commission falls under
the Director of the Division of Workers' Compensation, it is
separate from the adjudication side. Information is not shared
until formal paperwork is sent indicating an appeal has been
initiated. The two entities operate from separate locations,
maintaining a distinct separation.
CHAIR BJORKMAN sought confirmation that in other states, the
workers' compensation board has an internal appeals process to
review their decisions, address potential issues, and
subsequently make another decision.
MR. COLLINS replied that is correct. Some states are more
aligned internally and do not set their process off. He noted
that the specific procedures vary from state to state, but there
is always an appeals component. There are very few states that
go directly to the courts. For example, Nebraska does not have a
workers' compensation board. He expressed his belief that
everything goes through the courts there. The breadth of what
happens across America and worldwide varies, and Alaska's
approach falls within the more common area.
3:13:06 PM
CHAIR BJORKMAN asked Ms. Mead what the additional caseload on
the court system would be and the effect on its capacity to
carry out its functions if WCAC were eliminated.
3:13:38 PM
NANCY MEADE, General Counsel, Alaska Court System (ACS),
Anchorage, Alaska, said she submitted a zero fiscal note. She
explained that SB 60 will represent more work for the ACS
judges; however, that will not justify another judge or staff
person. She anticipates that the appeals will be spread around
the state, but most will be filed in Anchorage or Juneau. She
reiterated that these cases are very difficult, but the court
can handle them. ACS receives appeals from other agencies and
the Office of Administrative Hearings, which are handled
differently in the Superior Court from other cases. Superior
Court cases are usually trials, but agency appeals are submitted
mostly on documents. There is often no oral argument, so they
are paper-intensive. They are a little bit of a side issue for
judges compared to the day-to-day work of hearings, monitoring
the progress of ongoing trials, and pretrial preparation. It is
hard to anticipate their numbers and effect on the court system.
She said in past years there were 30 to 35 cases per year.
However, during the pandemic, those numbers plummeted because
fewer people were working and fewer things were happening in
state government and business. However, if the case numbers
returned to 30 to 35, that would mean an increase in
administrative appeals that would need to be handled by Superior
Court judges. She said the judges in Anchorage will get more
cases than others, possibly three per Anchorage civil judge. She
reiterated that these are time-consuming, difficult cases. In
the past, before WCAC, cases were resolved in eight to eighteen
months. She expressed her concern about this statistic, noting
judges are not generally familiar with these cases, and each
case presents a learning opportunity for the judge to whom it is
assigned. She testified that ACS can accept these cases if that
is the policy of the legislature.
3:16:19 PM
SENATOR DUNBAR said the sponsor provided evidence indicating
that before the appeals commission was established, about 25
percent of the Superior Court decisions were appealed to the
Supreme Court, whereas 50 percent of WCAC decisions have been
appealed to the Supreme Court since 2011. He expressed his
understanding that SB 60 would increase the workload on Superior
Court judges. He asked whether the bill might decrease the
workload on the Supreme Court because the Superior Court judges
might resolve the cases in a way that reduces their
susceptibility to appeal.
MS. MEADE replied that she has not been able to verify or find
data on that difference and how many cases go to the Supreme
Court, so she said that she could not comment on that matter.
She conveyed that one of the advantages of having a Workers'
Compensation Appeals Commission is that the decision of that
commission binds the Alaska Workers' Compensation Board, which
creates precedent. Each decision creates a precedent, which
might explain why fewer cases are going to WCAC. The body of law
is well established now. The same is not true of Superior Court
judges. She said that if Judge Jones in Anchorage renders a
decision on a workers' compensation appeal, that decision will
not impact a different Superior Court judge. The court system
will not get settled law until the Supreme Court renders a
decision in a case. So, this is something that could be lost by
eliminating the Workers' Compensation Appeals Commission. She
reiterated that Superior Court decisions do not have
precedential value, which is one of the reasons these cases were
given to an appeals commission in the past.
3:18:31 PM
SENATOR DUNBAR said that with 50 percent of WCAC decisions
appealed to the Alaska Supreme Court, it is rendering decisions
on the appeals commission's rulings, and those decisions are
generating precedent. He sought confirmation that those Supreme
Court decisions have generated precedent for the last 17 to 18
years.
MS. MEADE replied yes; however, a majority of those appealed to
the Supreme Court were ultimately dismissed or denied. The
Alaska Supreme Court only publishes a handful of workers'
compensation opinions yearly, which has been fairly consistent.
3:19:46 PM
CHAIR BJORKMAN closed public testimony on SB 60.
CHAIR BJORKMAN commented that this bill requires legislators to
make a policy call on whether the $500,000 cost to operate the
Worker's Compensation Appeals Commission is worth its value to
workers and employers. Arguments for and against have
accumulated over its 17-year history. He expressed his belief
that the Senate Judiciary Committee should review the quasi-
judicial, judicative questions and, for that reason, he wishes
to move SB 60 to the next committee of referral. He expressed
his intention to sign "no recommendation" to this bill today,
continue policy discussions, and weigh the merits of the bill.
CHAIR BJORKMAN found no further discussion and solicited the
will of the committee.
3:21:16 PM
SENATOR GRAY-JACKSON moved to report SB 60, work order 33-
LS0330\A, from committee with individual recommendations and
attached fiscal note(s).
CHAIR BJORKMAN found no objection and SB 60 was reported from
the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 73 Draft Proposed CS ver D.pdf |
SL&C 5/10/2023 1:30:00 PM |
SB 73 |
| Presentation to SL&C-Vickie Choitz_CSW_Trauma and Resilience at Work 05.10.23.pdf |
SL&C 5/10/2023 1:30:00 PM |
Trauma and Resilience at Work |
| SB 60 Fiscal Note-JUD-ACS-02-27-23.pdf |
SL&C 5/10/2023 1:30:00 PM |
SB 60 |
| SB 60 Public Testimony-Letter_APCIA 03.15.23.pdf |
SL&C 5/10/2023 1:30:00 PM |
SB 60 |