Legislature(2017 - 2018)GRUENBERG 120

04/13/2017 05:30 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ HB 204 OVERTAKING/PASSING DOT VEHICLES TELECONFERENCED
Moved CSHB 204(JUD) Out of Committee
-- Public Testimony --
+ SB 55 OMNIBUS CRIME/CORRECTIONS TELECONFERENCED
Moved CSSB 55(FIN) Out of Committee
Uniform Rule 23(a) Waived
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 79 OMNIBUS WORKERS' COMPENSATION TELECONFERENCED
Moved CSHB 79(JUD) Out of Committee
              HB 79-OMNIBUS WORKERS' COMPENSATION                                                                           
                                                                                                                                
5:58:41 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 79,  "An Act  relating to  workers' compensation;                                                               
repealing  the second  injury fund  upon satisfaction  of claims;                                                               
relating to  service fees  and civil  penalties for  the workers'                                                               
safety programs  and the workers' compensation  program; relating                                                               
to the liability  of specified officers and  members of specified                                                               
business entities  for payment of workers'  compensation benefits                                                               
and   civil   penalties;   relating  to   civil   penalties   for                                                               
underinsuring  or  failing  to insure  or  provide  security  for                                                               
workers'  compensation  liability; relating  to  preauthorization                                                               
and timely  payment for medical  treatment and  services provided                                                               
to  injured employees;  relating  to  incorporation of  reference                                                               
materials  in  workers'  compensation  regulations;  relating  to                                                               
proceedings  before the  Workers'  Compensation Board;  providing                                                               
for  methods  of  payment  for  workers'  compensation  benefits;                                                               
relating  to the  workers'  compensation  benefits guaranty  fund                                                               
authority  to claim  a  lien;  excluding independent  contractors                                                               
from   workers'    compensation   coverage;    establishing   the                                                               
circumstances   under   which   certain   nonemployee   executive                                                               
corporate  officers and  members of  limited liability  companies                                                               
may  obtain  workers'  compensation  coverage;  relating  to  the                                                               
duties of  injured employees to  report income or  work; relating                                                               
to   misclassification  of   employees  and   deceptive  leasing;                                                               
defining  'employee';  relating   to  the  Workers'  Compensation                                                               
Board's approval of attorney fees  in a settlement agreement; and                                                               
providing for an effective date."  [Before the committee was CSHB                                                               
79(L&C), Version 30-GH1789\O.]                                                                                                  
                                                                                                                                
CHAIR CLAMAN advised  he would move Amendment 5 to  the bottom of                                                               
the stack  of amendments, pending  the committee's  discussion on                                                               
Amendment 8.                                                                                                                    
                                                                                                                                
[CHAIR CLAMAN passed the gavel to Vice Chair Fansler.]                                                                          
                                                                                                                                
5:59:41 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  moved to adopt Amendment  6, Version 30-GH1789\O.5,                                                               
Wallace, 4/4/17, which read as follows:                                                                                         
                                                                                                                                
     Page 18, line 11:                                                                                                          
          Delete "or knowingly fails to report a material                                                                   
     fact"                                                                                                                  
                                                                                                                                
     Page 18, line 23, through page 19, line 5:                                                                                 
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 19, lines 11 - 15:                                                                                                    
          Delete "An employee knowingly fails to report a                                                                       
     material fact under (a) and  (b) of this section if the                                                                    
     employee does not disclose  the receipt of unemployment                                                                    
     or other  disability benefits or other  employment, and                                                                    
     the  employee  knowingly  receives  compensation  under                                                                    
     this  chapter to  which the  employee  is not  entitled                                                                    
     because of the  receipt of the other  benefits or other                                                                    
     employment."                                                                                                               
                                                                                                                                
     Page 21, line 20:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 37"                                                                                                      
                                                                                                                                
     Page 21, line 22:                                                                                                          
          Delete "38"                                                                                                           
          Insert "37"                                                                                                           
                                                                                                                                
     Page 21, line 24:                                                                                                          
          Delete "38"                                                                                                           
          Insert "37"                                                                                                           
                                                                                                                                
     Page 21, line 27:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 37"                                                                                                      
                                                                                                                                
     Page 21, line 28:                                                                                                          
          Delete "38" in both places                                                                                            
          Insert "37" in both places                                                                                            
                                                                                                                                
     Page 21, line 30:                                                                                                          
          Delete "38"                                                                                                           
          Insert "37"                                                                                                           
                                                                                                                                
     Page 22, line 18:                                                                                                          
          Delete "Section 41"                                                                                                   
          Insert "Section 40"                                                                                                   
                                                                                                                                
     REPRESENTATIVE LEDOUX objected for discussion.                                                                             
                                                                                                                                
6:00:08 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  explained that  Amendment  6  responds to  written                                                               
concerns his office  received from two or  three lawyers involved                                                               
in  Workers'  Compensation  matters  as to  "knowingly  fails  to                                                               
report  a  material fact."    The  lawyers  noted that  it  could                                                               
actually put  providers, and others,  in a position of  trying to                                                               
determine what  is, or  is not,  a material  fact.   Chair Claman                                                               
noted that this  particular language was a response  to an Alaska                                                               
Supreme Court  case, Shehata v.  Salvation Army, [225 P.  3d 1106                                                             
(2010)] wherein the court found  ambiguity as to whether a worker                                                               
had  a duty  to  report  whether they  were  trying  to work  and                                                               
whether it  was paid  or unpaid  work.   Amendment 6  creates the                                                               
duty to  accurately disclose the  work status of the  worker, and                                                               
it does  not create  undesired duties  for medical  providers and                                                               
others, which was  the prime objection of the  lawyers writing to                                                               
the  committee,  he  explained.    After  consultation  with  the                                                               
department, he advised that it has no objection to Amendment 6.                                                                 
                                                                                                                                
REPRESENTATIVE LEDOUX withdrew her objection.  There being no                                                                   
objection, Amendment 6 was adopted.                                                                                             
                                                                                                                                
6:03:53 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN moved to adopt Amendment 7, written by Chair                                                                       
Claman, which read as follows:                                                                                                  
                                                                                                                                
     Page 4, line 7, following "partnership,":                                                                                  
          Delete "or"                                                                                                           
                                                                                                                                
     Page 9, line 27, following "self-represented,":                                                                            
          Insert "or"                                                                                                           
                                                                                                                                
     Page 9, line 28:                                                                                                           
          Delete "or by a parent of"                                                                                            
          Insert "a parent if the party is"                                                                                     
                                                                                                                                
     Page 11, lines 26 - 27:                                                                                                    
          Delete "if an employer controverts the employee's                                                                 
     right to compensation"                                                                                                 
          Insert "of the controversion"                                                                                     
                                                                                                                                
     Page 14, following line 23:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 27. AS 23.30.205(e) is amended to read:                                                                     
          (e)  An employer or the employer's carrier shall                                                                      
     notify   the  commissioner   of  labor   and  workforce                                                                    
     development of  any possible  claim against  the second                                                                    
     injury fund  as soon  as practicable,  but in  no event                                                                    
     later  than  100  weeks  after   the  employer  or  the                                                                    
     employer's  carrier  has  knowledge of  the  injury  or                                                                    
     death or after the deadline  for submitting a claim for                                                                
     reimbursement in (g) of this section."                                                                                 
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 14, lines 25 - 28:                                                                                                    
          Delete all material and insert:                                                                                       
          "(g)  An employer or the employer's carrier must                                                                      
     establish  all requirements  for reimbursement  in this                                                                    
     section,  including notice  of any  possible claim  and                                                                    
     the  payment of  compensation in  excess of  104 weeks,                                                                    
     before  submitting a  claim  for  reimbursement to  the                                                                    
     second  injury fund.  Notwithstanding  (a)  and (b)  of                                                                    
     this  section, a  claim for  reimbursement  may not  be                                                                    
     submitted  for an  injury or  death  that occurs  after                                                                    
     August 31,   2017,  and   must   be  submitted   before                                                                    
     October 1,  2019.   An  employer  that   qualifies  for                                                                    
     reimbursement  under  this  section  will  continue  to                                                                    
     receive  reimbursement payments  on claims  accepted by                                                                    
     the fund,  or ordered  by the  board, until  the fund's                                                                    
     liabilities for the claim are extinguished."                                                                               
                                                                                                                                
     Page 21, line 20:                                                                                                          
          Delete "38"                                                                                                           
          Insert "39"                                                                                                           
                                                                                                                                
     Page 21, line 22:                                                                                                          
          Delete "38"                                                                                                           
          Insert "39"                                                                                                           
                                                                                                                                
     Page 21, line 24:                                                                                                          
          Delete "38"                                                                                                           
          Insert "39"                                                                                                           
                                                                                                                                
     Page 21, line 27:                                                                                                          
          Delete "38"                                                                                                           
          Insert "39"                                                                                                           
                                                                                                                                
     Page 21, line 28:                                                                                                          
          Delete both occurrences of "38"                                                                                       
          Insert "39" in both places                                                                                            
                                                                                                                                
     Page 21, line 30:                                                                                                          
          Delete "38"                                                                                                           
          Insert "39"                                                                                                           
                                                                                                                                
     Page 21, line 31:                                                                                                          
          Delete "29"                                                                                                           
          Insert "30"                                                                                                           
                                                                                                                                
     Page 22, line 1:                                                                                                           
          Delete "29"                                                                                                           
          Insert "30"                                                                                                           
                                                                                                                                
     Page 22, line 3:                                                                                                           
          Delete both occurrences of "29"                                                                                       
          Insert "30" in both places                                                                                            
                                                                                                                                
     Page 22, line 5:                                                                                                           
          Delete "29"                                                                                                           
          Insert "30"                                                                                                           
                                                                                                                                
     Page 22, following line 5:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(d)  The amendments to AS 23.30.205, added by                                                                        
     secs. 27  and 28 of  this Act,  apply to notice  of any                                                                    
     possible claim and a  claim for reimbursement submitted                                                                    
     on or  after the effective date  of secs. 27 and  28 of                                                                    
     this Act."                                                                                                                 
                                                                                                                                
     Page 22, line 18:                                                                                                          
          Delete "Section 41 of this Act takes"                                                                                 
          Insert "Sections 27, 28, and 42 of this Act take"                                                                     
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete all material and insert:                                                                                       
        "* Sec. 44. Section 31 of this Act takes effect                                                                     
     September 1, 2017."                                                                                                        
                                                                                                                                
     Page 22, line 20:                                                                                                          
          Delete "29"                                                                                                           
          Insert "30"                                                                                                           
                                                                                                                                
REPRESENTATIVE REINBOLD objected.                                                                                               
                                                                                                                                
CHAIR  CLAMAN  related that  Amendment  7  was requested  by  the                                                               
Department of Labor & Workforce  Development (DLWD), and Ms. Marx                                                               
would present the amendment.                                                                                                    
                                                                                                                                
6:04:26 PM                                                                                                                    
                                                                                                                                
MARI   MARX,  Director,   Division   of  Workers'   Compensation,                                                               
Department of Labor & Workforce  Development (DLWD), advised that                                                               
the Department of  Law (DOL) brought this issue  to the attention                                                               
of  DLWD,  and Kimber  Rodger  would  explain  the basis  of  its                                                               
concern.                                                                                                                        
                                                                                                                                
6:04:50 PM                                                                                                                    
                                                                                                                                
KIMBER  RODGERS,  Assistant  Attorney General,  Labor  and  State                                                               
Affairs  Section, Department  of  Law, referred  to Amendment  7,                                                               
page  1,  lines  1-13,  and explained  that  they  are  technical                                                               
changes to correct language issues.   The real substance involves                                                               
the second injury  fund within Amendment 7, page  1, lines 11-22,                                                               
and page  2, lines 4-14, and  she advised that the  idea was that                                                               
they  clarify some  procedures and  extend deadlines  for phasing                                                               
out the  second injury fund.   The new section, Section  27, ends                                                               
the  requirement that  employers provide  notice of  any possible                                                               
second injury  fund claims because  their claims could  no longer                                                               
be submitted to the fund.   She referred to Amendment 7, [page 2,                                                               
lines  4-14], and  the new  subsection (g),  and advised  that it                                                               
explains what is required to  submit a claim for reimbursement to                                                               
the second  injury fund, such that  it does not permit  claims to                                                               
be  based on  a  subsequent  injury or  death  that occurs  after                                                               
August 31,  2017; and requires  that employers file  their claims                                                               
for reimbursement before October 1,  2019, and she noted that the                                                               
new  addition  of  the  section   required  some  renumbering  of                                                               
sections.                                                                                                                       
                                                                                                                                
MS. RODGERS  referred to  Amendment 7, page  3, lines  25-29, and                                                               
explained  that it  adds a  new subsection  to the  applicability                                                               
section,  and clarifies  that the  second injury  fund amendments                                                               
apply   to  notices   of  any   possible  claim   and  claim   to                                                               
reimbursement submitted  after the effective date  of Sections 27                                                               
and  28, with  the  effective  date of  those  sections being  an                                                               
immediate effective date.   She advised that this  is provided in                                                               
Amendment 7, [page  3, line 31, and page 4,  lines 1-2], where an                                                               
immediate  effective date  is necessary  so  that these  sections                                                               
will take effect  before the injury or death  deadline date after                                                               
August 31, 2017.                                                                                                                
                                                                                                                                
MS.  RODGERS  remarked that  Amendment  7  [page 4,  lines  4-6],                                                               
provides  for a  new  effective  date of  September  1, 2017  for                                                               
renumbered Section 31.   She explained that Section  31 amends AS                                                               
23.30.247(c)  to remove  a provision  allowing  employers to  ask                                                               
about a person's  prior health or disability history  in order to                                                               
document that  employer's knowledge  of a  pre-existing condition                                                               
for a  possible second  injury fund  reimbursement if  the person                                                               
was later  injured at work,  she explained.   As of  September 1,                                                               
2017,  this  provision  will  no  longer  be  needed  because  "a                                                               
subsequent injury  or death had  occurred at that time"  will not                                                               
qualify for  a second injury  fund reimbursement.  Therefore, she                                                               
noted, those questionnaires will no longer be necessary.                                                                        
                                                                                                                                
6:08:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  withdrew her  objection on  Amendment 7.                                                               
There being no objection, Amendment 7 was adopted.                                                                              
                                                                                                                                
[VICE CHAIR FANSLER passed the gavel back to Chair Claman.]                                                                     
                                                                                                                                
6:09:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to adopt Amendment  8, Version 30-                                                               
GH1789\O.10, Wallace, 4/13/17, which read as follows:                                                                           
                                                                                                                                
     Page 16, line 28:                                                                                                          
          Delete "three"                                                                                                    
          Insert "two"                                                                                                      
                                                                                                                                
     Page 16, line 29, following "person":                                                                                  
          Insert "is responsible for the satisfactory                                                                       
     completion of services that the person has contracted                                                                  
      to perform and is subject to liability for a failure                                                                  
     to complete the contracted work, or"                                                                                   
                                                                                                                                
     Page 17, line 1, following "location":                                                                                 
          Insert "or a business mailing address"                                                                            
                                                                                                                                
     Page 17, line 4:                                                                                                           
          Following "person":                                                                                               
          Insert "provides contracted services for two or                                                                   
     more different customers within a 12-month period or"                                                                  
          Following "in":                                                                                                   
          Insert "any kind of"                                                                                              
                                                                                                                                
     Page 17, line 6:                                                                                                           
          Delete ";"                                                                                                        
          Insert "."                                                                                                            
                                                                                                                                
     Page 17, lines 7 - 13:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
REPRESENTATIVE FANSLER objected.                                                                                                
                                                                                                                                
6:09:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  stressed that her name  should have been                                                               
printed on Amendment 8 and asked  that everyone write her name on                                                               
the document "because that's a big deal to me."                                                                                 
                                                                                                                                
REPRESENTATIVE REINBOLD explained that  Amendment 8 revises [Sec.                                                               
28,  AS   23.30.230(a)(11)(H),  page  16,  line   28],  and  adds                                                               
provisions that an  independent contractor "meet at  least two of                                                               
the  three  listed criteria"  to  satisfy  the definition  of  an                                                               
independent  contractor.    She  explained  that  this  amendment                                                               
loosens the  language to ensure that  independent contractors are                                                               
not held  to strict eligibility  standards that may  be difficult                                                               
to  overcome  depending  on the  business  size,  operation,  and                                                               
services  offered.   She  advised  that  this amendment  provides                                                               
flexibility  in  determining   what  constitutes  an  independent                                                               
contractor.     It   is  important   to  foster   small  business                                                               
opportunities including those  offered by independent contractors                                                               
in the time of Alaska's  financial uncertainty.  She related that                                                               
Independent contracting opportunities  keep Alaskan businesses in                                                               
the business  of providing services and  professional services to                                                               
Alaskan and  non-Alaskan businesses.   She described  Amendment 8                                                               
as a "win-win for everybody,"  and urged the committee's support.                                                               
She then  thanked Chair Claman,  committee members,  the National                                                               
Federation of  Independent Business  (NFIB), and  others opposing                                                               
parts of  a "soon to  be withdrawn" amendment, and  the committee                                                               
staff in working  closely with her office to make  this a win-win                                                               
for everyone.                                                                                                                   
                                                                                                                                
6:11:02 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  related that  the  committee  received letters  of                                                               
support from  three different groups,  and also support  from the                                                               
American  Federation   of  Labor   and  Congress   of  Industrial                                                               
Organizations (AFL-CIO).                                                                                                        
                                                                                                                                
REPRESENTATIVE  KOPP   remarked  that   he  fully   supports  the                                                               
amendment.                                                                                                                      
                                                                                                                                
6:11:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FANSLER  withdrew his  objection.  There  being no                                                               
objection, Amendment 8 was adopted.                                                                                             
                                                                                                                                
6:11:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX moved  to adopt  Amendment 9,  Version 30-                                                               
GH1789\O.9, Wallace, 4/11/17, which read as follows:                                                                            
                                                                                                                                
     Page 10, line 14:                                                                                                          
          Delete "21st [14TH]"                                                                                              
          Insert "14th"                                                                                                         
                                                                                                                                
     Page 10, line 17:                                                                                                          
          Delete "21 [14] days"                                                                                             
          Insert "14 days or twice a month"                                                                                 
                                                                                                                                
     Page 10, line 18, following "period.":                                                                                     
          Insert "If the first installment of compensation                                                                  
     due under  this subsection is  not paid within  14 days                                                                
     or a  subsequent installment due under  this subsection                                                                
     is not  paid every 14  days or  twice a month,  a grace                                                                
     period  will not  be allowed  and an  additional amount                                                                
     will become due under (e) of this section."                                                                            
                                                                                                                                
REPRESENTATIVE FANSLER objected for purposes of discussion.                                                                     
                                                                                                                                
6:12:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX explained that  when she introduced the now                                                               
adopted  Amendment  2  [on  4/5/17],  it  provided  that  if  [an                                                               
employer or  insurer] had not paid  workers' compensation benefit                                                               
to a worker within 14 days,  no grace period would be allowed and                                                               
the late  benefit would be  penalized under this section.   Since                                                               
the adoption of Amendment 2,  she remarked, a representative from                                                               
the National  Federation of  Independent Business  (NFIB) pointed                                                               
out  that some  businesses, including  the State  of Alaska,  pay                                                               
their  employees twice  per month  and it  would be  difficult to                                                               
change  the benefits  to  a  14 day  period  within the  computer                                                               
systems of people  paying on a bi-monthly pay  period.  Amendment                                                               
9  changes  it  to  every  14  days,  or  twice  per  month,  she                                                               
explained.                                                                                                                      
                                                                                                                                
REPRESENTATIVE REINBOLD commented that  she likes the 7-day grace                                                               
period  aspect  and she  would  like  feedback from  those  being                                                               
impacted.                                                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX  pointed out  that the  7 day  grace period                                                               
was already eliminated [within the  adoption of Amendment 2], and                                                               
Amendment 9  simply moves the time  period from every 14  days to                                                               
twice per month.  She  reiterated to Representative Reinbold that                                                               
the discussion was  not about the previously deleted  7 day grace                                                               
period.                                                                                                                         
                                                                                                                                
REPRESENTATIVE REINBOLD  argued that  the amendment went  from 14                                                               
days to 21 days.                                                                                                                
                                                                                                                                
6:14:01 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN disagreed  and advised  that the  amendment changes                                                               
the 21 days to 14 days, [or twice per month].                                                                                   
                                                                                                                                
REPRESENTATIVE  REINBOLD after  re-reading  the amendment  agreed                                                               
that Chair  Claman and Representative  LeDoux were correct.   She                                                               
commented  that she  did not  know whether  anyone would  like to                                                               
testify,  but  she  would not  fight  it  because  Representative                                                               
LeDoux had the votes.                                                                                                           
                                                                                                                                
REPRESENTATIVE  EASTMAN  commented  that  he likes  the  idea  of                                                               
Amendment 9,  and suggested that under  its current construction,                                                               
an  employer  could  probably  do what  was  unintended  by  this                                                               
amendment due  to the word "or,"  and pay the money  twice on day                                                               
30 and would be in compliance.                                                                                                  
                                                                                                                                
REPRESENTATIVE  LEDOUX answered  that  she supposed  it could  be                                                               
read in that manner, although,  that certainly wasn't the purpose                                                               
of the amendment, but Representative Eastman may have a point.                                                                  
                                                                                                                                
CHAIR CLAMAN referred to  Representative Eastman's suggestion and                                                               
said that because  the employer was not paying for  past time and                                                               
was  paying for  the time  going  forward, that  if the  employee                                                               
received a  full month  at one time  the employee  probably would                                                               
have  no objection.   Although,  he commented,  the odds  that an                                                               
employer would actually  choose to pay in one lump  sum is pretty                                                               
unlikely.                                                                                                                       
                                                                                                                                
6:17:23 PM                                                                                                                    
                                                                                                                                
MS. MARX answered  that the language is "very broad"  and is open                                                               
to  multiple interpretations,  and  the  division would  probably                                                               
have  difficulties  in  calculating   penalties.    Whereas,  the                                                               
division could easily calculate when  penalties may be due with a                                                               
set  date, and  every employer  having the  same due  date.   The                                                               
language "twice per month," she related,  could be read to be two                                                               
days in one month period, a 30 day or a 31 day period.                                                                          
                                                                                                                                
6:18:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX,  noting that the division  knows where the                                                               
committee wants  to go  with this  language and  is aware  of the                                                               
problem, asked the language the division would suggest.                                                                         
                                                                                                                                
MS.  MARX  related  that originally  the  compensation  was  paid                                                               
within  14  days with  a  grace  period  of  7 days,  meaning  an                                                               
employer actually had 21 days in  which to pay.  She opined, that                                                               
the administration changed it, and the  feeling is to back to the                                                               
way it  was before, "but changing  it here."  She  explained. "So                                                               
here,  I think  the intent  is to  pay 14  days, and  'this right                                                               
here' adding twice  per month, I'm not sure that  that would meet                                                               
that intent to pay that 14 days."                                                                                               
                                                                                                                                
CHAIR CLAMAN pointed out that it is  not an attempt to make it 14                                                               
days, it's an attempt to  recognize that many employers pay twice                                                               
per month.   He commented  that while technically  a possibility,                                                               
in the  real world no employer  would pay the entire  payment for                                                               
one month on the last two days of the month.                                                                                    
                                                                                                                                
MS. MARX related  that in her experience as a  hearing officer, 9                                                               
out of  10 employers  would follow  the intent, and  1 out  of 10                                                               
would  construe the  language against  the intent,  and it  would                                                               
happen often  enough that it  would be  a concern.   She remarked                                                               
that  in  a  perfect  world,  the fraud  unit  would  not  be  in                                                               
existence.                                                                                                                      
                                                                                                                                
6:20:49 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  HEIDI  DRYGAS,  Department  of  Labor  &  Workforce                                                               
Development,  clarified that  there  are  different systems  when                                                               
paying workers' compensation benefits.   Typically, it is not the                                                               
employer paying the  benefits - it's the insurer, and  to have an                                                               
insurer pay every  14 days or every 21 days  is a reasonable part                                                               
of  its responsibilities.    She commented  that  there are  some                                                               
self-insured employers in this state.   The workers' compensation                                                               
benefits  system  versus  regular  wages  and  benefits  paid  to                                                               
working employees  are completely different and,  she opined, the                                                               
attempt  to try  to  fit it  into an  employer's  version of  how                                                               
employees are paid may not be necessary.                                                                                        
                                                                                                                                
6:21:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  Mr. DeWitt's  perspective  on  the                                                               
amendment.                                                                                                                      
                                                                                                                                
6:22:05 PM                                                                                                                    
                                                                                                                                
DANNY DeWITT, State Director,  National Federation of Independent                                                               
Business (NFIB),  related that  he is not  an expert  in workers'                                                               
compensation  and advised  that 14  days plus  14 days  equals 28                                                               
days   and  most   months  have   31  days   which  causes   math                                                               
difficulties.   He related that he  does not have a  solution but                                                               
offered concern that without the  grace period, it could create a                                                               
significant problem for  folks paying on the 1st and  15th of the                                                               
month.                                                                                                                          
                                                                                                                                
6:23:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  remarked   that  as  Commissioner  Drygas                                                               
pointed out,  everyone is  covered through  workers' compensation                                                               
insurance,  or through  those  who might  be  self-insured.   She                                                               
commented  that she  did not  know whether  anyone was  available                                                               
from  the  workers'  compensation  carriers to  testify,  but  it                                                               
wouldn't appear to  actually impact Mr. DeWitt's  clients, and it                                                               
might impact the workers' compensation insurance carrier.                                                                       
                                                                                                                                
MR. DeWITT explained that everything  an insurance company has to                                                               
do is  charged in  premiums which  directly affects  his clients.                                                               
He offered  concern that if a  payment was made on  the 14th, the                                                               
next payment  would be on the  28th, which means three  days into                                                               
the next  month which puts everyone  on a 54 year  payment cycle,                                                               
rather than a 52 year cycle.                                                                                                    
                                                                                                                                
CHAIR CLAMAN  commented that Mr.  DeWitt may be getting  his math                                                               
wrong but he wasn't going to quarrel with the math.                                                                             
                                                                                                                                
MR. DeWITT  advised that  he appreciates  Representative LeDoux's                                                               
intent,  but it  begs the  question  of whether  the math  works,                                                               
which is why a grace period is necessary.                                                                                       
                                                                                                                                
6:25:19 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN clarified that the  issue Commissioner Drygas raised                                                               
was that it  gets referred to the  workers' compensation carrier.                                                               
The workers'  compensation carrier is  accustomed to the  14 days                                                               
rule, might prefer the 14 days  rule, and might prefer not to get                                                               
confused by the twice per month rule, he said.                                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX  commented that at  this point she  was not                                                               
particularly interested in Amendment 9.                                                                                         
                                                                                                                                
REPRESENTATIVE  EASTMAN  noted  that  if 14  days  poses  a  math                                                               
problem, whether 16 days or 17 days would solve the problem.                                                                    
                                                                                                                                
MR. DeWITT stated that he  was hesitant to respond and underlined                                                               
that "I  really don't know  enough of the technical  issues," but                                                               
if  forced  to respond,  would  think  that  16 days  would  work                                                               
because it would cover one month.                                                                                               
                                                                                                                                
REPRESENTATIVE  REINBOLD  reiterated  that   a  grace  period  is                                                               
important and  then read to  the committee [Amendment 9,  page 1,                                                               
lines 10-13].                                                                                                                   
                                                                                                                                
6:27:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX, in reference  to Mr. DeWitt's comments and                                                               
the 16 days, commented that  she was unsure it was mathematically                                                               
better.   In response to Representative  Reinbold's comments, she                                                               
pointed out  there is  not a grace  period when  paying someone's                                                               
salary and she  could not see why there should  be a grace period                                                               
with workers' compensation benefits.   Representative LeDoux then                                                               
remarked  that  if  she  had  her druthers,  she  would  like  to                                                               
withdraw  the  amendment and  as  the  bill progresses,  that  an                                                               
insurance carrier  advise as to  whether adopting  this amendment                                                               
would  become  a  data  nightmare  and  how  to  solve  the  data                                                               
nightmare.                                                                                                                      
                                                                                                                                
6:29:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX withdrew Amendment 9.                                                                                     
                                                                                                                                
6:29:14 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  asked Representative  Reinbold,  in  light of  the                                                               
committee action  on Amendment  8, whether  she preferred  to not                                                               
offer Amendment 5.                                                                                                              
                                                                                                                                
REPRESENTATIVE REINBOLD  related her  appreciation with  the AFL-                                                               
CIO, NFIB,  Chair Claman's office,  and the passage  of Amendment                                                               
8, and opined that the parties  came to a "great compromise," and                                                               
said she would not to make a motion to adopt Amendment 5.                                                                       
                                                                                                                                
6:29:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX noted that the  department did not weigh in                                                               
on Amendment  8, and  asked whether  the department  accepted the                                                               
committee's action.                                                                                                             
                                                                                                                                
CHAIR CLAMAN advised that Commissioner  Drygas gave him a "thumbs                                                               
up" to indicate that the department was good with Amendment 8.                                                                  
                                                                                                                                
REPRESENTATIVE  LEDOUX stated  that  she was  both impressed  and                                                               
amazed  that  this  was accomplished  and  thanked  everyone  who                                                               
worked on this bill to come up with a "win-win for everybody."                                                                  
                                                                                                                                
REPRESENTATIVE KOPP commented  that this is a  "great example" of                                                               
the public and private sector  working together toward the common                                                               
goal of taking care of employees.                                                                                               
                                                                                                                                
6:30:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FANSLER moved to report CSHB 79, Version 30-                                                                     
GH1789\O,   as  amended,   out  of   committee  with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection, CSHB  79(JUD) passed  out of  the House  Judiciary                                                               
Standing Committee.                                                                                                             
                                                                                                                                

Document Name Date/Time Subjects
HB204 Draft Proposed CS ver D 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Explanation of Changes 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 CS (JUD) Sponsor Statement 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 ver A 4.13.17.PDF HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Sectional Analysis ver A 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Supporting Document-AAA State Move Over Laws 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Supporting Document-Minor Offenses Table 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Supporting Document-DoT Work Zone Safety Week PR 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Supporting Document-Delaware Move Over Law Informational 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Supporting Document-Citation Statistics 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
HB204 Fiscal Note DPS-AST 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 204
SB55 ver T 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Sponsor Statement ver T 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Bill Contents ver T 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Summary of Changes ver D to T 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Sectional Summary ver T 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Additional Documents-ACJC Recommendations 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Fiscal Note JUD-ACS 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
SB55 Fiscal Note Various-Executive 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
SB 55
HB079 ver O 3.27.17.pdf HJUD 3/31/2017 1:00:00 PM
HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Transmittal Letter 3.27.17.pdf HJUD 3/31/2017 1:00:00 PM
HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Sectional Analysis ver O 3.27.17.pdf HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Letters Index 4.3.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Supporting Document-Letters of Support 4.3.17.pdf HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB079 Opposing Document-Letters of Opposition 4.3.17.PDF HJUD 4/13/2017 5:30:00 PM
HB079 Additional Document-Sponsor's Reply to House Judiciary Committee Questions 4.5.17.pdf HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Supporting Document-Letter Alaska State Home Building Association 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Supporting Document-Letter Alaska Trucking Association 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Supporting Document-Letter NFIB 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Amendments #1-9 HJUD Final Votes 4.13.17.pdf HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Fiscal Note DOA-DRM 3.27.17.pdf HJUD 3/31/2017 1:00:00 PM
HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Fiscal Note DOLWD-WC 3.28.17.pdf HJUD 3/31/2017 1:00:00 PM
HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79
HB079 Fiscal Note DOLWD-SIF 3.27.17.pdf HJUD 3/31/2017 1:00:00 PM
HJUD 4/5/2017 1:00:00 PM
HJUD 4/13/2017 5:30:00 PM
HB 79