Legislature(2017 - 2018)ADAMS ROOM 519

03/27/2018 01:30 PM House FINANCE

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Audio Topic
01:34:26 PM Start
01:35:58 PM Confirmation: Commissioner, Department of Revenue: Sheldon Fisher
02:25:09 PM HB233
03:10:34 PM HB303
04:01:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: Commissioner Sheldon TELECONFERENCED
Fisher, Dept. of Revenue
-- Public Testimony --
+ HB 233 EDUCATION TAX CREDITS; SUNSET; REPEALS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 303 WORKERS' COMP; REHAB/REEMPLOYMENT TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 303                                                                                                            
                                                                                                                                
     "An Act relating to workers' compensation benefits for                                                                     
     the rehabilitation and reemployment of injured                                                                             
     employees."                                                                                                                
                                                                                                                                
3:10:34 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED  to ADOPT  proposed  committee                                                                    
substitute  for HB  303,  Work  Draft (30-GH2709\J,  Wallace                                                                    
3/16/18). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
3:12:11 PM                                                                                                                    
                                                                                                                                
MARIE MARX,  DIRECTOR, WORKER'S COMPENSATION,  DEPARTMENT OF                                                                    
LABOR AND WORKFORCE DEVELOPMENT,  there was only one change.                                                                    
It  inserted  language  that  the  one-year  time  limit  on                                                                    
benefits paid before parties agreed to a training plan.                                                                         
                                                                                                                                
3:13:32 PM                                                                                                                    
                                                                                                                                
HEIDI   DRYGAS,  COMMISSIONER,   DEPARTMENT  OF   LABOR  AND                                                                    
WORKFORCE  DEVELOPMENT,  introduced  herself  and  indicated                                                                    
that Ms. Marx would review the presentation.                                                                                    
                                                                                                                                
Ms.   Marx    introduced   the    PowerPoint   presentation:                                                                    
"Workers' Compensation Reemployment Benefits: HB303,House F                                                                     
inance Committee March 22, 2018" (copy on file).                                                                                
                                                                                                                                
Ms. Marx slide 2: "What is Worker's Compensation?"                                                                              
                                                                                                                                
     A system of insurance that protects workers and employ                                                                     
     ers from some of the losses caused by on-the-job accide                                                                    
     nts and job-related illnesses.                                                                                             
                                                                                                                                
Ms. Marx slide 3: "The Grand Bargain."                                                                                          
                                                                                                                                
    An employer provides prompt, necessary medical and                                                                          
    wage loss benefits to an injured worker for a work                                                                          
     related injury.                                                                                                            
                                                                                                                                
     In exchange, the injured worker receives limited                                                                           
   benefits and gives up the right to sue the employer.                                                                         
                                                                                                                                
Ms. Marx slide 4: "Mission."                                                                                                    
                                                                                                                                
     To ensure the quick, efficient, fair and predictable                                                                       
     delivery of indemnity, medical, and vocational                                                                             
     rehabilitation benefits to injured workers at a reason                                                                     
     able cost to employers                                                                                                     
                                                                                                                                
Ms. Marx slide 5: "Benefits Provided."                                                                                          
                                                                                                                                
     ?Medical Care                                                                                                              
     ?Indemnity (Wage Loss) Benefits                                                                                            
     ?Death Benefits                                                                                                            
     ?Reemployment (Retraining) Benefits                                                                                        
                                                                                                                                
Ms. Marx reviewed slide 6: "Reemployment Benefits."                                                                             
                                                                                                                                
     Intended to return an injured worker to work when the                                                                      
     worker cannot return to the job of injury or to jobs                                                                       
     for which the worker has relevant training or experien                                                                     
     ce.                                                                                                                        
                                                                                                                                
Ms. Marx  moved to  slide 11: "Alaska  Reemployment Benefits                                                                    
Flow Chart:  Current Law."  She stressed  that the  bill did                                                                    
not address  instances where an  injured worker  returned to                                                                    
work  and received  medical  care.  The retraining  benefits                                                                    
were related to  situations where an injured  worker was off                                                                    
work for at  least 90 consecutive days, and  a doctor opined                                                                    
that they could  not return to their job of  injury or other                                                                    
relevant jobs.                                                                                                                  
                                                                                                                                
3:15:23 PM                                                                                                                    
                                                                                                                                
Ms. Marx explained  that the bill was  introduced because of                                                                    
current  challenges. She  reviewed a  list of  challenges on                                                                    
slide 7: "Current Challenges." She read the slide:                                                                              
                                                                                                                                
     ?Mandatory reemployment benefits eligibility                                                                               
     evaluations                                                                                                                
     ?Maximum plan cost of $13,300                                                                                              
    ?Retraining plans focus on quickest return to work                                                                          
     option,                                                                                                                    
    regardless of worker's interest in that vocational                                                                          
     goal                                                                                                                       
     ?Declining pool of rehabilitation specialists                                                                              
     ?No rehabilitation specialist fee schedule                                                                                 
                                                                                                                                
Ms. Marx  reviewed the benefits  of HB  303 on slide  8: "HB
303." She read the slide:                                                                                                       
                                                                                                                                
    ?Improves the delivery of reemployment benefits to                                                                          
     injured  workers                                                                                                           
     ?Provides eligible employees with more choices in                                                                          
     reemployment goals and plans                                                                                               
    ?Encourages injured employees' early return to work                                                                         
     ?Helps employers control costs                                                                                             
                                                                                                                                
3:17:55 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg queried  the number of individuals                                                                    
who were hurt on the job and not eligible.                                                                                      
                                                                                                                                
Ms. Marx  explained that one  of the provisions of  the bill                                                                    
would  no   longer  permit  an  injured   worker  to  settle                                                                    
reemployment benefits  with their employer. She  stated that                                                                    
the following slides showed the  statistics about the policy                                                                    
call.                                                                                                                           
                                                                                                                                
Ms.  Marx   pointed  to  slide  9:   "Reemployment  Benefits                                                                    
Eligibility Statistics FY 17."                                                                                                  
                                                                                                                                
     ?564injured workers were referred for a reemployment                                                                       
     benefits eligibility evaluation                                                                                            
     ?148injured workers were determined eligible                                                                               
     for reemployment benefits                                                                                                  
     ?14injured workers completed reemployment plans                                                                            
                                                                                                                                
Ms.  Marx   turned  to  slide  10:   "Reemployment  Benefits                                                                    
Settlement Statistics FY 17."                                                                                                   
                                                                                                                                
     164injured workers settled reemployment benefits                                                                           
                                                                                                                                
     48        of those injured workers settled reemployment                                                                    
     benefits before an eligibility determination was  made                                                                     
                                                                                                                                
     80       of those injured workers settled reemployment                                                                     
     benefits before completing a retraining plan                                                                               
                                                                                                                                
     36       of those injured workers settled reemployment                                                                     
     benefits after being found ineligible for benefit                                                                          
                                                                                                                                
3:22:00 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg asked about  the change. He wanted                                                                    
to  understand  that  instead  of the  money  going  to  the                                                                    
individual it would go to the  school. He noted that much of                                                                    
the controversy was that the  injured worker needed money to                                                                    
pay their mortgages.  The person took the  benefit money but                                                                    
did not use the money for its intended use. .                                                                                   
                                                                                                                                
Ms.  Marx explained  that  it allowed  an  injury worker  to                                                                    
receive the benefit.                                                                                                            
                                                                                                                                
Representative Guttenberg  wanted to  confirm that  the lump                                                                    
sum would not be paid to an individual.                                                                                         
                                                                                                                                
3:26:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED Public Testimony.                                                                                        
                                                                                                                                
3:26:59 PM                                                                                                                    
                                                                                                                                
KAYLA  KADE, SELF,  ANCHORAGE  (via  teleconference), was  a                                                                    
vocational  rehabilitation  specialist.  She did  not  agree                                                                    
with some of  the current regulations in place.  She did not                                                                    
agree with paying an individual lump sum.                                                                                       
                                                                                                                                
3:31:04 PM                                                                                                                    
                                                                                                                                
DEBBIE EVEN, SELF, ANCHORAGE  (via teleconference), spoke in                                                                    
opposition  of the  bill. She  disagreed with  the provision                                                                    
that did not allow for a lump sum to be distributed.                                                                            
                                                                                                                                
Representative Wilson asked if Ms.  Even would getting a sum                                                                    
of money plus help with schooling.                                                                                              
                                                                                                                                
Ms.  Evan  decided  to  settle  with  Worker's  Compensation                                                                    
because of the time frame.                                                                                                      
                                                                                                                                
3:33:05 PM                                                                                                                    
                                                                                                                                
CYNTHIA  BRADLEY,  SELF,   ANCHORAGE  (via  teleconference),                                                                    
opposed the legislation.  She was injured on the  job at the                                                                    
end of 2011.  She settled her claim. She  disagreed with the                                                                    
statistic provided  by the department.  She received  a lump                                                                    
sum settlement.  She indicated she  had been making  $50 per                                                                    
hour at the  job where she was injured. She  was trained for                                                                    
a job where she only made $18.                                                                                                  
                                                                                                                                
3:37:25 PM                                                                                                                    
                                                                                                                                
GRETCHEN  CUSACK,  ALASKA  INTEGRATED  CARE  ACTIONS,  EAGLE                                                                    
RIVER  (via teleconference),  opposed  HB  303. She  relayed                                                                    
that there  were many misconceptions.  She provided  some of                                                                    
her  background  and  was  well-versed  in  the  field.  She                                                                    
appreciated a couple of the changes.                                                                                            
                                                                                                                                
Co-Chair Foster encouraged additional testimony.                                                                                
                                                                                                                                
3:44:22 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked how much  it took for  a worker                                                                    
to have a plan made up and to follow through to succession.                                                                     
                                                                                                                                
Ms. Cusack thought  it would be difficult to  say because of                                                                    
several factors. Plans could range  from $3000 to $20,000. A                                                                    
person  needed  to  be  medically   stable.  She  asked  the                                                                    
committee to be aware of the complexity of each case.                                                                           
                                                                                                                                
3:46:05 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  asked whether  all rehabilitation                                                                    
specialists were  the same. He  asked how to set  the rates.                                                                    
He wondered if it was by plan or qualifications.                                                                                
                                                                                                                                
Commissioner  Drygas  responded  that the  specialists  were                                                                    
required  to  have master's  degrees.  She  stated that  the                                                                    
department  could receive  different reports  from different                                                                    
specialists.                                                                                                                    
                                                                                                                                
Ms.  Marx  responded  that  one of  the  things  the  system                                                                    
struggles  with was  that a  specialist might  not meet  the                                                                    
statutory  requirement. Ultimately  both  would reach  plans                                                                    
within the statutory requirements.                                                                                              
                                                                                                                                
Representative Guttenberg  wondered whether the  payment was                                                                    
because of the billed appointments.                                                                                             
                                                                                                                                
Ms. Marx responded in the affirmative.                                                                                          
                                                                                                                                
3:50:50 PM                                                                                                                    
                                                                                                                                
GREG WEAVER,  SELF, KNIK (via teleconference),  indicated he                                                                    
had been an injured worker.  He provided a background of his                                                                    
injury.  He  spoke  about  a huge  black  hole  in  Worker's                                                                    
Compensation. He  provided details about his  experience. He                                                                    
continued   to  provide   information   about  is   personal                                                                    
experience. He wanted people in  Alaska that were injured on                                                                    
the job to be treated fairly.                                                                                                   
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair Foster relayed that amendments  were due by Friday,                                                                    
March 30, 2018 at 5:00 PM.                                                                                                      
                                                                                                                                
Representative  Wilson wondered  whether  there  could be  a                                                                    
delay in the  amendment deadline, because she  did not fully                                                                    
understand the legislation.                                                                                                     
                                                                                                                                
Co-Chair Foster relayed that he would hold off on the                                                                           
amendment deadline.                                                                                                             
                                                                                                                                
Commissioner  Drygas thanked  those  that  testified on  the                                                                    
bill and indicated that it  was difficult to find a balance.                                                                    
She wanted to see workers  back in the workforce rather than                                                                    
drawing on public assistance.                                                                                                   
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following                                                                           
meeting.                                                                                                                        
                                                                                                                                
HB 303 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 233 Education Tax Credit Support Letter Sitnasuak 2018.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB233 Additional Documents - DOR Education Tax Credit Report CY2017. 2.28.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB233 Additional Documents - FY2012-FY2016 Education Tax Credits 2.28.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB233 Sectional Analysis.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB233 Sponsor Statement 2.28.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB233 Supporting Documents - Support Letters 2.28.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB 303 Letters of opposition 3.23.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 303
HB233 Edu Tax Credit Presentation 3.26.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 233
HB 303 - Letter of Opposition - 3.27.18.pdf HFIN 3/27/2018 1:30:00 PM
HB 303
3.18 NANA Teck HB 233 Testimony.pdf HFIN 3/27/2018 1:30:00 PM
HB 233