Legislature(2019 - 2020)BELTZ 105 (TSBldg)

03/21/2019 01:30 PM LABOR & COMMERCE

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Audio Topic
01:30:10 PM Start
01:31:58 PM Confirmation Hearing(s):
01:36:15 PM SB65
01:41:35 PM SB66
01:53:44 PM SB69
02:25:32 PM Confirmation Hearing(s)
02:39:06 PM SJR8
02:48:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
- Workers' Compensation Board - Chuck Collins,
Sarah Lefebvre
- Board of Physical Therapy & Occupational
Therapy - Dr. Enlow Walker
-- Public Testimony --
*+ SB 69 EXEMPT CHARITABLE GAMING FROM PERMIT/FEES TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
*+ SJR 8 U.S.-MEXICO-CANADA AGREEMENT ON TRADE TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 65 DEPT. OF LABOR: TECHNICAL ED. PROGRAMS TELECONFERENCED
Moved SB 65 Out of Committee
+= SB 66 LABOR STANDARDS/SAFETY; WORKER COMP. TELECONFERENCED
Moved SB 66 Out of Committee
**Streamed live on AKL.tv**
           SB 66-LABOR STANDARDS/SAFETY; WORKER COMP.                                                                       
                                                                                                                                
1:41:35 PM                                                                                                                    
CHAIR REINBOLD  announced that the  next order of  business would                                                               
be SENATE BILL NO. 66, "An  Act relating to the division of labor                                                               
standards  and  safety;  relating  to the  division  of  workers'                                                               
compensation; establishing  the division  of workers'  safety and                                                               
compensation; and providing for an effective date."                                                                             
                                                                                                                                
1:42:35 PM                                                                                                                    
GREY  MITCHELL,  Director,  Division  of  Workers'  Compensation,                                                               
Central  Office, Department  of Labor  and Workforce  Development                                                               
(DOLWD), Juneau,  briefly reviewed  SB 66.  As stated  during the                                                               
previous  hearing, SB  66  would combine  the  Division of  Labor                                                               
Standards  and  Safety  (DLSS)  with  the  Division  of  Workers'                                                               
Compensation. The  department does  not intend  to change  any of                                                               
the programs,  but to create  opportunities for  efficiencies and                                                               
remove silos between  the two divisions. The  department hopes to                                                               
capture  some  immediate  savings by  flattening  the  management                                                               
structure  in the  Occupational Safety  and Health  component and                                                               
taking advantage  of a vacancy  in an administrative  position in                                                               
Fairbanks.  The  department   would  combine  the  administrative                                                               
functions in the two divisions.  One provision in the fiscal note                                                               
is related  to reclassification of  the director's position  to a                                                               
deputy director,  who would work  in tandem with the  director of                                                               
the  Division  of  Workers'  Compensation  in  the  newly  formed                                                               
Division of  Worker Safety  and Compensation.  The administrative                                                               
officer  II  position   that  is  currently  in   DLSS  would  be                                                               
reclassified  to  an  administrative  officer  I  position.  This                                                               
position would be  part of the team for the  combined division to                                                               
more effectively  manage the administrative operations.  It would                                                               
help create a safety net  and career pathway within the division.                                                               
Currently,  when  one  position  becomes  vacant,  it  means  the                                                               
department must train  a new person. This would  help ensure that                                                               
someone  is trained  and ready  to step  in at  the same  time it                                                               
would create efficiencies and better overall management.                                                                        
                                                                                                                                
1:44:16 PM                                                                                                                    
SENATOR BISHOP  reviewed the zero-fiscal note  for the Department                                                               
of Labor and Workforce,  Workers' Compensation. The appropriation                                                               
and  allocation  are  both  Workers'  Compensation  and  the  OMB                                                               
component  is  344. He  read  the  fiscal note  commentary:  This                                                               
merger  will  not result  in  an  immediate cost  savings  within                                                               
Workers' Compensation.  Potential future  year cost  savings will                                                               
have  to be  determined  as position  responsibilities and  lease                                                               
space needs are evaluated moving forward.                                                                                       
                                                                                                                                
SENATOR BISHOP said the second  fiscal note for the Department of                                                               
Labor &  Workforce Development shows  the potential  savings. The                                                               
appropriation is  Labor Standards  and Safety, the  allocation is                                                               
Occupational Safety and Health, and  the OMB component is 970. He                                                               
said  there would  be a  general  fund reduction  of $71,400  and                                                               
designated general fund  savings of $211,600 for  a total savings                                                               
of $283,000. He read the following fiscal note analysis:                                                                        
                                                                                                                                
     This   legislation  merges   the   Division  of   Labor                                                                    
     Standards  and  Safety  and the  Division  of  Workers'                                                                    
     Compensation into  the Division of Workers'  Safety and                                                                    
     Compensation.  The new  division  would administer  the                                                                    
     same programs as are currently  administered by the two                                                                    
     separate divisions.  The department's  regulations need                                                                    
     to be updated to reflect the division name change.                                                                         
                                                                                                                                
     This  merger would  result in  immediate administrative                                                                    
     efficiencies  resulting  in   position  reductions  and                                                                    
     personal services  savings. The estimated  cost savings                                                                    
     is  based   on  the   reclassification  of   the  Labor                                                                    
     Standards and  Safety Director (range  27) to  a Deputy                                                                    
     Director (range  25) position,  the elimination  of the                                                                    
     Occupational  Safety   and  Health  Chief   (range  23)                                                                    
     position  with  those  duties  assumed  by  the  Deputy                                                                    
     Director, the elimination of  a vacant office assistant                                                                    
     II (range  10) position, and the  reclassification of a                                                                    
     vacant  Administrative Officer  II (range  19) position                                                                    
     to an Administrative Officer I (range 17) position.                                                                        
                                                                                                                                
1:46:45 PM                                                                                                                    
CHAIR  REINBOLD  expressed  appreciation   for  the  fiscal  note                                                               
analysis.                                                                                                                       
                                                                                                                                
1:47:06 PM                                                                                                                    
SENATOR  BISHOP  removed  his  objection. He  said  that  he  has                                                               
workload concerns about the director  position and he would offer                                                               
an  amendment in  the Senate  Finance Committee.  He said  he has                                                               
previously held discussions with  Mr. Mitchell. During his tenure                                                               
as  commissioner  of  the  Department   of  Labor  and  Workforce                                                               
Development (DOLWD),  he considered  collapsing the  division. He                                                               
said  he would  err  on the  side of  worker  safety for  working                                                               
people.  He  expressed concern  that  the  director would  suffer                                                               
burnout.                                                                                                                        
                                                                                                                                
1:48:34 PM                                                                                                                    
SENATOR COSTELLO moved  to report SB 66,  work order 31-GS1049\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal  note(s). There  being no  objection, SB  66 was  reported                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          

Document Name Date/Time Subjects
L&C Physical Therapy Resume - Walker.pdf SL&C 3/21/2019 1:30:00 PM
L&C Workers Compensation Resume - Collins.pdf SL&C 3/21/2019 1:30:00 PM
L&C Workers Compensation Resume - LeFebvre.pdf SL&C 3/21/2019 1:30:00 PM
SB 69 Version A.PDF SL&C 3/21/2019 1:30:00 PM
SB 69
SB 69 Transmittal Letter - 02.21.19 President Giessel.pdf SL&C 3/21/2019 1:30:00 PM
SB 69
SB 69 FN SB69-DOR-TAX-3-20-2019.pdf SL&C 3/21/2019 1:30:00 PM
SB 69
SJR 8 Ver. A.PDF SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 - Sponsor Statement.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - GDP and Trade AK 2017.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - june_13_-_pnwer_press_release_on_tariffs_-_for_immediate_release.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Proposed USMCA Trade Agreement (1).pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR8 Support Letter.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Alaska - Canada trade.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Alaska USMCA.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SB 65 SB 66 DOLWD Responses to Committee Questions from (S) L&C hearing on 03.19.19.pdf SL&C 3/21/2019 1:30:00 PM
SB 65
SB 66