05/06/2005 01:00 PM House JUDICIARY

SB 130 - WORKERS' COMPENSATION/ INSURANCE                                                                                     
                                                                                                                                
2:11:52 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE announced that the  next order of business would be                                                               
CS  FOR SENATE  BILL  NO.  130(FIN) am,  "An  Act  relating to  a                                                               
special   deposit  for   workers'  compensation   and  employers'                                                               
liability insurers; relating to  assigned risk pools; relating to                                                               
workers'  compensation  insurers;  stating   the  intent  of  the                                                               
legislature,   and  setting   out  limitations,   concerning  the                                                               
interpretation,  construction,  and  implementation  of  workers'                                                               
compensation laws;  relating to the Alaska  Workers' Compensation                                                               
Board;  assigning  certain  Alaska  Workers'  Compensation  Board                                                               
functions  to  the  division  of  workers'  compensation  in  the                                                               
Department  of  Labor  and  Workforce  Development  and  to  that                                                               
department, and authorizing the  board to delegate administrative                                                               
and enforcement  duties to the  division; providing  for workers'                                                               
compensation   hearing   officers    in   workers'   compensation                                                               
proceedings;   establishing  a   Workers'  Compensation   Appeals                                                               
Commission;  relating to  workers' compensation  medical benefits                                                               
and to charges for and payment  of fees for the medical benefits;                                                               
relating  to  agreements  that  discharge  workers'  compensation                                                               
liability; relating to workers'  compensation awards; relating to                                                               
reemployment benefits  and job dislocation benefits;  relating to                                                               
coordination  of  workers'  compensation and  certain  disability                                                               
benefits; relating to division  of workers' compensation records;                                                               
relating  to  release  of  treatment   records;  relating  to  an                                                               
employer's  failure  to  insure   and  keep  insured  or  provide                                                               
security;  providing   for  appeals  from   compensation  orders;                                                               
relating  to  workers'  compensation proceedings;  providing  for                                                               
supreme  court   jurisdiction  of   appeals  from   the  Workers'                                                               
Compensation Appeals  Commission; providing for a  maximum amount                                                               
for  the  cost-of-living  adjustment  for  workers'  compensation                                                               
benefits;  relating to  attorney  fees with  respect to  workers'                                                               
compensation;  providing   for  the  department  to   enter  into                                                               
contracts  with nonprofit  organizations  to provide  information                                                               
services   and  legal   representation   to  injured   employees;                                                               
providing  for administrative  penalties for  employers uninsured                                                               
or without adequate security  for workers' compensation; relating                                                               
to fraudulent acts or false  or misleading statements in workers'                                                               
compensation and penalties for the  acts or statements; providing                                                               
for members of  a limited liability company to be  included as an                                                               
employee for  purposes of  workers' compensation;  establishing a                                                               
workers' compensation  benefits guaranty fund;  making conforming                                                               
amendments;  providing for  a  study and  report  by the  medical                                                               
services  review  committee;  establishing   the  Task  Force  on                                                               
Workers'  Compensation; and  providing  for  an effective  date."                                                               
[Before  the  committee was  HCS  CSSB  130(L&C), as  amended  on                                                               
5/5/05.]                                                                                                                        
                                                                                                                                
The committee took an at-ease from 2:12 p.m. to 2:13 p.m.                                                                       
                                                                                                                                
2:13:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT relayed  that  he'd objected  to moving  the                                                               
bill  from   committee  yesterday   because  he'd   had  concerns                                                               
regarding the  "second injury  fund," and  was hoping  to acquire                                                               
further information on that issue.  He added:                                                                                   
                                                                                                                                
     It still seems  to be somewhat confusing  as to whether                                                                    
     or not  the second injury fund  is working or not.   My                                                                    
     sense is  that we err on  the side of conservatism.   I                                                                    
     think at this  point we should leave  the second injury                                                                    
     fund as  is, in the bill,  as it was put  in yesterday,                                                                    
     [and I  think] Representative Coghill thought  the same                                                                    
     -  [that]  there  may  be some  other  impacts  from  a                                                                    
     judicial  standpoint.    So  I  think  at  this  point,                                                                    
     between now  and whenever this  bill reaches us  on the                                                                    
     floor for a vote, there'll still be sufficient time.                                                                       
                                                                                                                                
     But  I believe,  at this  point, that  we should  leave                                                                    
     that second  injury fund in  the bill in spite  of what                                                                    
     Mr.  Cattanach  said, that  it's  not  working.   So  I                                                                    
     haven't been convinced one way  or the other that it is                                                                    
     or is  not working.   I know it  is somewhat of  a cost                                                                    
     driver [though]  we couldn't get  the numbers  from the                                                                    
     Division of  Insurance [regarding] what it  was costing                                                                    
     employers to  keep it in.   I still believe there  is a                                                                    
     tail  on  some  of  those   cases,  and  I'm  a  little                                                                    
     concerned that  those injured workers may  not get what                                                                    
     is ultimately due to them.                                                                                                 
                                                                                                                                
REPRESENTATIVE  KOTT, in  conclusion,  relayed  that having  been                                                               
given some assurance  that his concerns are being met,  he is now                                                               
willing to move the bill from committee.                                                                                        
                                                                                                                                
REPRESENTATIVE  KOTT  moved  to  report  HCS  CSSB  130(L&C)  [as                                                               
amended]  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There  being no  objection, HCS                                                               
CSSB  130(JUD) was  reported from  the  House Judiciary  Standing                                                               
Committee.