Legislature(2019 - 2020)SENATE FINANCE 532
04/04/2019 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB55 | |
| SB65 | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 65 | TELECONFERENCED | |
| + | SB 66 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 55 | TELECONFERENCED | |
SENATE BILL NO. 66
"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."
9:20:37 AM
TAMIKA LEDBETTER, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, explained the legislation. She read
from talking points (copy on file):
• This bill proposes to merge the Workers
Compensation and Labor Standards and Safety
Divisions.
• The Division of Labor Standards and Safety is
focused on preventing workplace accidents and
enforcing laws related to workplace safety and
wages, while the Division of Workers Compensation
is focused on the efficient administration of
benefits to injured workers and enforcing laws
related to workers compensation requirements.
• The missions of these two divisions complement each
other in that one works to prevent accidents and the
other works to provide an efficient system of
benefits for injured workers.
• The divisions have historically worked together, and
this bill is expected to further increase the
opportunities to remove silos and capitalize on
efficiencies through a unified management structure.
• The department is cognizant of the critical roles
that each of these divisions have and the proposed
merger does not impact any of the statutes or
regulations currently administered and enforced by
each division.
• The merger aims to take advantage od position
vacancies to explore opportunities to share duties
between divisions where it makes sense, streamline
processes, and cut back on unnecessary middle
management supervisory functions.
• As reflected in the fiscal note, the bill flattens
the management structure in Labor Standards and
Safety by reclassifying the Director to a Deputy
Director who will focus attention on operational
aspects of the new divisions inspection,
consultation and enforcement functions. This will
allow for a mid-level management reduction in the
AKOSH component.
• In addition, the fiscal note illustrates the
opportunity to consolidate and share administrative
duties between the two divisions where it makes
sense.
• Future opportunities for increased efficiency could
come from office space consolidations to increase
opportunity for coordination and improved service
delivery for employers and workers.
• This effort is not expected to happen overnight, but
will be carefully developed over time.
• The bill does not propose to change the functions of
the Division of Labor Standards and Safety or the
Division of Workers Compensation.
• Its all about establishing a structure that creates
maximum opportunities to share resources and get the
work done more efficiently.
9:23:25 AM
GREY MITCHEL, DIRECTOR, DIVISION OF WORKERS' COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, discussed
the Sectional Analysis:
BILL SUMMARY WHAT DOES THIS BILL DO?
This bill will merge the Department of Labor and
Workforce Development divisions of Labor Standards and
Safety and Workers' Compensation into a new Division
of Workers' Safety and Compensation. The new division
would administer the same programs currently
administered by the two separate divisions. This bill
is needed to improve fiscal management of these
programs and to allow for efficiencies through
management and administrative restructuring and
improved coordination of service delivery. This
restructuring will result in an immediate savings
estimated at $238,000 per year starting in FY2020.
Potential future year cost savings will have to be
determined as position responsibilities and lease
space needs are evaluated moving forward. Also, with
office consolidations wherever possible this merger
will improve program services to the public and the
private sector by giving individuals one place to go
versus multiple.
DETAILED SECTIONAL ANALYSIS
Section 1: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.410(b).
Section 2: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.450(a).
Section 3: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055.
Section 4: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055(a).
Section 5: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.235(a).
Section 6: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.05.067(a)(1)(B).
Section 7: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS 23.10.075.
Section 8: Amends the powers and duties of the
division director under AS 23.10.080 to include intent
language
established in AS 23.30.001(1); this bring the
legislative intent of the current division of workers'
compensation into the new division of workers' safety
and compensation.
Section 9: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.025(a).
Section 10: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.280(e)(2).
Section 11: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.395(15).
Section 12: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.30.395(17).
Section 13: Renames the division of workers
compensation to the division of workers' safety and
compensation in AS 23.30.120(c)(14).
Section 14: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 39.25.158(b).
Section 15: Repeals AS 23.30.002; this is the
statutory reference to the current division of
workers' compensation and its director, which is
replaced by the division of workers' safety and
compensation and its director established under
section 7 of the bill.
Section 16: Establishes transition provisions in the
uncodified law of Alaska to allow completion of any
pending actions under the merged division.
9:27:05 AM
Co-Chair von Imhof OPENED public testimony.
9:27:15 AM
LAURA BONNER, SELF, ANCHORAGE (via teleconference), opposed
the bill, because she felt that merging the two divisions
would split each divisions focus. She worried that one
division director would not be enough to oversee the work
of both divisions.
9:29:00 AM
DON ETHERIDGE, AFL-CIO, JUNEAU, testified in opposition to
the merger. He expressed concern that the merger could
affect the effectiveness of the individual divisions.
9:29:42 AM
Senator Olson asked whether the unions were in favor if the
legislation.
9:29:57 AM
Mr. Etheridge replied that unions had not come out in
support or opposition of the legislation.
9:30:07 AM
Senator Olson looked at Section 8, which amended the powers
and duties of the division director. He wondered whether it
would be beneficial to give the director additional power
when overseeing the merged division.
Mr. Etheridge thought that the powers would need to be
expended if the merger was going to work and reiterated his
concern that one person would be able to handle all the
responsibility that the merger would place solely on the
one position.
9:31:06 AM
Co-Chair von Imhof CLOSED public testimony.
9:31:14 AM
Co-Chair von Imhof invited Commissioner Ledbetter to
address the concerns of the previous testifiers.
9:31:23 AM
Commissioner Ledbetter replied anytime a change was
initiated it could spark concern. She assured the committee
that the change was being proposed in order to create
efficiencies and to better serve Alaskans. She noted the
merger that had occurred between the Division of Employment
and Training Services and the Division of Business
Partnership had proved successful. She said that the
current Division Director of Workers Compensation was
familiar with Labor Standards and Safety and the new Deputy
Director of Labor Standards and Safety had an extensive
background in safety. She said that the two working
together provided additional knowledge sharing and
expertise. She said that no positions would be eliminated
because of the change and that the two divisions were
already working together in this manner.
9:33:40 AM
Senator Shower appreciated the attempt at efficiency and
hoped that core competencies would be achieved.
9:34:19 AM
Senator Olson wondered how the program would be more
efficient without the elimination of personnel.
9:34:42 AM
Commissioner Ledbetter replied said that individuals with a
greater capacity were being hired. The work was being done
well and would continue to be done well.
9:35:33 AM
Co-Chair von Imhof noted that the fiscal note showed a
savings of $283,000, although the fund source was
incorrect.
9:36:02 AM
Commissioner Ledbetter deferred to Mr. Mitchell.
9:36:10 AM
Mr. Mitchell explained that there were several areas where
efficiencies were expected. He said that the Administrative
Managers over each division would be reclassified so that
one was subordinate over the other; $8,000 would be saved.
He said that as functions were combined opportunities would
present themselves.
9:37:47 AM
Senator Micciche supported the bill and believed it had the
potential to deliver positive results.
Co-Chair von Imhof said that updated fiscal notes would be
discussed at a future hearing.
SB 66 was HEARD and HELD in committee for further
consideration.
Co-Chair von Imhof discussed the following day's agenda.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 55 Work Draft Version U.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 55 |
| SB 66 support ASHBA.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 - transmittal letter.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 Commissioner Ledbetter Testimony.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |
| SB 66 Bill and Sectional Analysis - DOLWD.pdf |
SFIN 4/4/2019 9:00:00 AM |
SB 66 |