Legislature(1999 - 2000)

04/03/2000 01:45 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE JUDICIARY STANDING COMMITTEE                                                                               
                          April 3, 2000                                                                                         
                            1:45 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Pete Kott, Chairman                                                                                              
Representative Joe Green                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Jeannette James                                                                                                  
Representative Lisa Murkowski                                                                                                   
Representative Eric Croft                                                                                                       
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 419                                                                                                              
"An Act  relating to the weekly  rate of compensation  and minimum                                                              
and  maximum   compensation  rates   for  workers'   compensation;                                                              
specifying  components  of a  workers'  compensation  reemployment                                                              
plan;  adjusting  workers'  compensation  benefits  for  permanent                                                              
partial  impairment, for  reemployment  plans, for  rehabilitation                                                              
benefits,  for widows,  widowers, and orphans,  and for  funerals;                                                              
relating to  permanent total disability  of an employee  receiving                                                              
rehabilitation benefits;  relating to calculation of  gross weekly                                                              
earnings  for  workers'  compensation benefits  for  seasonal  and                                                              
temporary workers  and for workers  with overtime or  premium pay;                                                              
setting  time  limits  for  requesting  a hearing  on  claims  for                                                              
workers' compensation, for selecting  a rehabilitation specialist,                                                              
and for payment  of medical bills; relating to  termination and to                                                              
waiver  of rehabilitation  benefits,  obtaining medical  releases,                                                              
and   resolving   discovery   disputes    relating   to   workers'                                                              
compensation;  setting  an  interest  rate for  late  payments  of                                                              
workers'  compensation;   providing  for  updating   the  workers'                                                              
compensation medical fee schedule;  and providing for an effective                                                              
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 419(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 58                                                                                                               
"An Act relating  to certain audits regarding oil  and gas royalty                                                              
and  net  profits  and  to  audits  regarding  costs  relating  to                                                              
exploration  incentive   credits  and  oil  and   gas  exploration                                                              
licenses; and providing for an effective date."                                                                                 
                                                                                                                                
     - MOVED CSHB 58(JUD) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 163(RLS)                                                                                                 
"An Act relating  to trusts, to  a trustee's duties to  notify and                                                              
inform  beneficiaries,   and  to  the  revocation,   modification,                                                              
termination, reformation, construction, and trustees of trusts."                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
SENATE BILL NO. 268                                                                                                             
"An Act  relating to mandatory  99-year terms of  imprisonment for                                                              
persons convicted of certain murders."                                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 324                                                                                                              
"An  Act  requiring written  consent  by  the  person who  is  the                                                              
subject of the  information before releasing  personal information                                                              
contained  in motor  vehicle  records, to  comply  with 18  U.S.C.                                                              
2721; and providing for an effective date."                                                                                     
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 419                                                                                                                  
SHORT TITLE: WORKERS' COMPENSATION                                                                                              
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/23/00      2279     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/23/00      2279     (H)  L&C, JUD, FIN                                                                                       
 3/08/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/08/00               (H)  Heard & Held                                                                                        
 3/08/00               (H)  MINUTE(L&C)                                                                                         
 3/17/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/17/00               (H)  Heard & Held                                                                                        
 3/17/00               (H)  MINUTE(L&C)                                                                                         
 3/20/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/20/00               (H)  Heard & Held                                                                                        
 3/20/00               (H)  MINUTE(L&C)                                                                                         
 3/27/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/27/00               (H)  Moved CSHB 419(L&C) Out of Committee                                                                
 3/27/00               (H)  MINUTE(L&C)                                                                                         
 3/29/00      2750     (H)  L&C RPT CS(L&C) NT 1DP 5NR                                                                          
 3/29/00      2751     (H)  DP: ROKEBERG; NR: MURKOWSKI, HARRIS,                                                                
 3/29/00      2751     (H)  CISSNA, SANDERS, HALCRO                                                                             
 3/29/00      2751     (H)  3 FNS (UA, LABOR, GOV/ALL DEPTS)                                                                    
 4/03/00               (H)  JUD AT  1:30 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 58                                                                                                                   
SHORT TITLE: OIL & GAS AUDITS                                                                                                   
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/22/99        65     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/22/99        65     (H)  O&G, RES, FIN                                                                                       
 1/22/99        65     (H)  2 FISCAL NOTES (DNR, REV)                                                                           
 1/22/99        65     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 3/04/99               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 3/04/99               (H)  HEARD AND HELD                                                                                      
 3/04/99               (H)  MINUTE(O&G)                                                                                         
 3/05/99       376     (H)  JUD REFERRAL ADDED AFTER RES                                                                        
 3/11/99               (H)  O&G AT 10:00 AM CAPITOL 17                                                                          
 3/11/99               (H)  -- MEETING CANCELED --                                                                              
 4/20/99               (H)  O&G AT  5:00 PM CAPITOL 17                                                                          
 4/20/99               (H)  <BILL POSTPONED TO 4/29>>                                                                           
 4/22/99               (H)  O&G AT  5:00 PM CAPITOL 17                                                                          
 4/22/99               (H)  MOVED OUT OF COMMITTEE                                                                              
 4/22/99               (H)  MINUTE(O&G)                                                                                         
 4/23/99       943     (H)  O&G RPT  4DP 4NR                                                                                    
 4/23/99       944     (H)  DP:PORTER, SMALLEY, HARRIS, WHITAKER;                                                               
 4/23/99       944     (H)  NR: OGAN, KEMPLEN, PHILLIPS, BRICE                                                                  
 4/23/99       944     (H)  2 FISCAL NOTES (DNR, REV) 1/22/99                                                                   
 3/06/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
 3/06/00               (H)  Moved Out of Committee                                                                              
 3/06/00               (H)  MINUTE(RES)                                                                                         
 3/08/00      2444     (H)  RES RPT  4DP 3NR                                                                                    
 3/08/00      2445     (H)  DP: COWDERY, WHITAKER, JOULE, MASEK;                                                                
 3/08/00      2445     (H)  NR: MORGAN, HARRIS, HUDSON                                                                          
 3/08/00      2445     (H)  2 FISCAL NOTES (DNR, REV)                                                                           
 3/08/00      2445     (H)  REFERRED TO JUD                                                                                     
 3/31/00               (H)  JUD AT  1:15 PM CAPITOL 120                                                                         
 3/31/00               (H)  Heard & Held                                                                                        
 3/31/00               (H)  MINUTE(JUD)                                                                                         
 4/03/00               (H)  JUD AT  1:30 PM CAPITOL 120                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
PAUL GROSSI, Director                                                                                                           
Division of Workers' Compensation                                                                                               
Department of Labor & Workforce Development                                                                                     
P.O. Box 25512                                                                                                                  
Juneau, Alaska  99802-5512                                                                                                      
POSITION  STATEMENT:   Testified in  support of  CSHB 419(L&C)  as                                                              
compromise legislation  but requested more time  to review Section                                                              
20 regarding religious treatment; answered questions.                                                                           
                                                                                                                                
WILLEM (WILLY) VAN HEMERT                                                                                                       
1633 West 15th                                                                                                                  
Anchorage, Alaska  99501                                                                                                        
POSITION STATEMENT:   As co-chair  representing management  on the                                                              
ad hoc committee  and on behalf  of WCCA, testified in  support of                                                              
CSHB 419(L&C) except for Section 20.                                                                                            
                                                                                                                                
DON ETHERIDGE, Lobbyist for                                                                                                     
  AFL-CIO for Alaska                                                                                                            
710 West 9th Street                                                                                                             
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   Testified  in support of  HB 419 as  it came                                                              
out of the ad hoc committee.                                                                                                    
                                                                                                                                
MARJORIE LINDER, Vocational Rehabilitation Counselor                                                                            
P.O. Box 230029                                                                                                                 
Anchorage, Alaska 99523                                                                                                         
POSITION STATEMENT:  Testified on HB 419; expressed concerns.                                                                   
                                                                                                                                
MIKE JENSEN, Attorney at Law                                                                                                    
12350 Industry Way, Number 208                                                                                                  
Anchorage, Alaska 99515                                                                                                         
POSITION STATEMENT:  Testified on HB 419.                                                                                       
                                                                                                                                
CAROL CARROLL, Director                                                                                                         
Central Office                                                                                                                  
Division of Support Services                                                                                                    
Department of Natural Resources                                                                                                 
400 Willoughby Avenue, Fifth Floor                                                                                              
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Explained HB  58 and the need for a technical                                                              
amendment.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-45, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN PETE KOTT  called the House Judiciary  Standing Committee                                                              
meeting to  order at  1:45 p.m.   Members present  at the  call to                                                              
order   were  Representatives   Kott,   Rokeberg,  Murkowski   and                                                              
Kerttula.  Representatives  Croft, Green and James  arrived as the                                                              
meeting was in progress.                                                                                                        
                                                                                                                                
HB 419 - WORKERS' COMPENSATION                                                                                                
                                                                                                                                
CHAIRMAN KOTT announced that the  first order of business would be                                                              
HOUSE  BILL NO.  419,  "An  Act relating  to  the weekly  rate  of                                                              
compensation  and  minimum  and  maximum  compensation  rates  for                                                              
workers'  compensation;   specifying  components  of   a  workers'                                                              
compensation  reemployment plan;  adjusting workers'  compensation                                                              
benefits  for  permanent  partial   impairment,  for  reemployment                                                              
plans,  for rehabilitation  benefits,  for  widows, widowers,  and                                                              
orphans, and for funerals; relating  to permanent total disability                                                              
of  an employee  receiving  rehabilitation  benefits; relating  to                                                              
calculation  of gross  weekly earnings  for workers'  compensation                                                              
benefits for seasonal  and temporary workers and  for workers with                                                              
overtime  or premium  pay; setting  time limits  for requesting  a                                                              
hearing  on claims  for  workers'  compensation,  for selecting  a                                                              
rehabilitation  specialist,  and  for payment  of  medical  bills;                                                              
relating to termination and to waiver  of rehabilitation benefits,                                                              
obtaining  medical  releases,  and  resolving  discovery  disputes                                                              
relating to  workers' compensation;  setting an interest  rate for                                                              
late  payments of  workers' compensation;  providing for  updating                                                              
the workers' compensation medical  fee schedule; and providing for                                                              
an effective date."                                                                                                             
                                                                                                                                
[The bill  had been  introduced by  the House  Labor and  Commerce                                                              
(L&C) Standing  Committee, chaired by Representative  Rokeberg, at                                                              
the request  of the  Department of  Labor & Workforce  Development                                                              
and  the Alaska  Labor-Management  Ad  Hoc Committee  on  Workers'                                                              
Compensation.  Before the committee was CSHB 419(L&C).]                                                                         
                                                                                                                                
Number 0070                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  explained that  the  bill  is the  first                                                              
major rewrite  of the workers'  compensation laws in  Alaska since                                                              
1988.   It provides  a long-overdue raise  in benefits  to Alaskan                                                              
workers  and, with  that,  a raise  in  premiums  to the  business                                                              
community of  the state.   Representative  Rokeberg referred  to a                                                              
letter  in  packets  from the  National  Council  on  Compensation                                                              
Insurance (NCCI) to Mr. Paul Grossi,  which indicates the NCCI has                                                              
determined  that  the  impact  on premiums  will  be  between  7.7                                                              
percent and 8.9 percent.                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  pointed out that this bill  is a delicate                                                              
balance between  the business community  and the  labor community,                                                              
including organized labor, in Alaska.   Of several hearings in the                                                              
House L&C Committee,  one was devoted entirely  to the Legislative                                                              
Budget and  Audit Committee  audit on  the bill  in order  to have                                                              
department representatives respond,  on the record, to all aspects                                                              
of  the  audit.    Two  amendments,  which  he  called  conforming                                                              
amendments,  had  been made  in  the  House  L&C Committee.    One                                                              
regards the religious freedom section,  Section 20, which has come                                                              
under some fire  since CSHB 419(L&C) moved out  of that committee.                                                              
Representative Rokeberg alerted the  committee that subsection (r)                                                              
under Section  7 is  also controversial.   He  suggested that  the                                                              
present committee  may want to focus  on those aspects.   He asked                                                              
that Mr. Grossi go over the bill.                                                                                               
                                                                                                                                
Number 0271                                                                                                                     
                                                                                                                                
PAUL  GROSSI,   Director,  Division   of  Workers'   Compensation,                                                              
Department  of Labor  &  Workforce Development,  informed  members                                                              
that  the department  supports this  bill, compromise  legislation                                                              
that is a product  of the labor-management ad hoc  committee.  The                                                              
bill contains  provisions for  both employees  and employers.   As                                                              
mentioned,  it increases benefits  that have  lost value  over the                                                              
last  12 years.    It raises  permanent  partial impairment  (PPI)                                                              
benefits from $135,000 to $177,000;  increases the maximum minimum                                                              
compensation rate,  which is indexed to the Alaska  average weekly                                                              
wage, so that  presently it would  bring the maximum up  to $772 a                                                              
week,  with a  minimum  of  $170 a  week;  raises the  amount  for                                                              
retraining  from   $10,000  to  $13,300;  increases   widows'  and                                                              
orphans'  benefits, as  well as burial  expenses; allows  overtime                                                              
pay to  be part  of the  calculation for  the weekly  compensation                                                              
rate; and  increases benefits during  the retraining  process from                                                              
60 percent of the spendable weekly wage to 70 percent.                                                                          
                                                                                                                                
MR. GROSSI  highlighted  provisions that  the "employer side"  had                                                              
agreed to, for  the most part dealing with the  retraining process                                                              
or the  reemployment  benefits process.   One  big issue has  been                                                              
that  the waiver  of  retraining  benefits  allows for  a  simple,                                                              
summary  way of  waiving  those benefits  and  providing that  the                                                              
waiver  would  be all-inclusive,  he  indicated.   The  bill  also                                                              
streamlines the time line for retraining;  clarifies what benefits                                                              
would  be due  during that  process; clarifies  the two-year  time                                                              
line  for  requesting  a  hearing; increases  the  time  line  for                                                              
payment of  medical bills  from 14  days to  30 days; changes  the                                                              
interest rate  on late  compensation payments  from 10  percent to                                                              
the court rate,  which is 2 percent  above the prime rate,  to his                                                              
belief;  establishes a  simple, summary  process for employers  to                                                              
obtain reasonable medical releases;  and provides for an update of                                                              
the  "usual, customary  and reasonable  fee schedule"  to be  done                                                              
each  year,  an  item  requested  by  employers  that  Mr.  Grossi                                                              
believes will benefit both sides.                                                                                               
                                                                                                                                
Number 0573                                                                                                                     
                                                                                                                                
MR. GROSSI turned  attention to the amendment  regarding religious                                                              
treatment [now Section 20 of CSHB 419(L&C)], which read:                                                                        
                                                                                                                                
     * Sec. 20.  AS 23.30 is amended  by adding a new section                                                                 
     to read:                                                                                                                   
                                                                                                                                
          Sec. 23.30.280.  Coverage for religious nonmedical                                                                  
     health care services.  Nothing  in this chapter shall be                                                                 
     construed  to prevent  an employee  with an injury  from                                                                   
     relying in  good faith on religious nonmedical  services                                                                   
     for  healing  through  prayer   alone  or  care  through                                                                   
     religious  nonmedical nursing  services  provided by  an                                                                   
     individual,  a nursing  facility,  or  a visiting  nurse                                                                   
     service  without  incurring   a  loss  or  reduction  of                                                                   
     compensation or  benefits due under this chapter.   This                                                                   
     section does  not exempt an employee from  submitting to                                                                   
     an  examination by  a physician or  surgeon as  required                                                                   
     under AS 23.30.095(e).                                                                                                     
                                                                                                                                
MR. GROSSI explained the department's  position.  They do see some                                                              
problems  with it  [Section  20].   They  need  time to  determine                                                              
whether  it is a  good idea  and what  the effect  would be;  they                                                              
don't know  that now.   For  example, it  could affect a  premium.                                                              
Also, the department doesn't know  how they would be able to judge                                                              
those things;  it would require  a certain religious  expertise to                                                              
determine whether care is reasonable  and necessary.  Furthermore,                                                              
how does this  fit into the payment  and fee schedule?   What is a                                                              
usual,  customary  and  reasonable  fee  for this  service?    The                                                              
department  doesn't know  whether  it would  be a  problem.   They                                                              
believe it requires  some time to look at, to see  if other states                                                              
do it and, if so, how it affects  them and how those states render                                                              
decisions based on any controversy that occurs.                                                                                 
                                                                                                                                
MR. GROSSI  indicated the final issue,  which he would let  the ad                                                              
hoc committee  speak to,  is concern that  [the ad hoc  committee]                                                              
would withdraw support "if that stays in there as it is."                                                                       
                                                                                                                                
Number 0690                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked who had requested  the addition of Section 20,                                                              
and what the rationale was.                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  answered that  the request had  come from                                                              
Richard  (Dick) Block,  an advocate  for  Christian Scientists  in                                                              
Alaska who  is a former director  of [the Division  of] Insurance.                                                              
Mr. Block's testimony was that he  didn't believe it would have an                                                              
impact,  Representative  Rokeberg reported,  so  the language  was                                                              
adopted.  However, because that had  occurred at the final hearing                                                              
in  the House  L&C  Committee,  he  himself could  appreciate  the                                                              
department's position  regarding the need for review  to determine                                                              
fiscal impacts  and how it would  be administered.  He  noted that                                                              
the same  committee had  recently adopted  a related provision  in                                                              
another bill, the so-called "patients' bill of rights" [HB 211].                                                                
                                                                                                                                
Number 0765                                                                                                                     
                                                                                                                                
MR. GROSSI,  responding to a  question from Representative  James,                                                              
restated his earlier  comments about Section 20,  then elaborated.                                                              
He suggested that perhaps the department  could look at it closely                                                              
between  sessions, to  maybe come  up with  a separate  bill.   It                                                              
needs to be studied,  some legal issues need to  be clarified, and                                                              
the  department needs  to determine  whether it  would affect  the                                                              
premium.                                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES  read from the  last sentence of  Section 20.                                                              
She noted  that such  treatment and healing  would be  less costly                                                              
than treatment by a regular physician  or physical therapist.  She                                                              
said it  seems clear  what it does,  and it  would provide  a cost                                                              
savings.                                                                                                                        
                                                                                                                                
Number 0916                                                                                                                     
                                                                                                                                
MR.  GROSSI  explained  that  issues  would  include  whether  the                                                              
provider of  this care can  make determinations on  disability and                                                              
so forth.   Yes,  the employer  could have  a person examined  and                                                              
perhaps  even controvert  [a  claim]  based on  that  examination.                                                              
However,  at some  point, the  department would  probably have  to                                                              
evaluate  that and  determine  which provider  -  or religious  or                                                              
medical expert  - to follow, and  whether a board  examination was                                                              
needed.  If  so, would they need  a religious expert as  well as a                                                              
medical expert  in order to make  a determination?  Those  are the                                                              
kinds  of issues  that the  department  doesn't know  about.   Mr.                                                              
Grossi reiterated the  desire to know whether other  states do it,                                                              
and, if so,  what the issues are.   Emphasizing the need  for time                                                              
to really look into it, he concluded:                                                                                           
                                                                                                                                
     It could  be that  you're right, and  we come back  next                                                                   
     year  and there's  absolutely nothing  wrong with  this,                                                                   
     ...  and someone  can put in  a bill  and we'd  possibly                                                                   
     support  it, or at  least not  oppose it.   But we  just                                                                   
     don't know, I guess is the answer to that.                                                                                 
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  replied  that   she  doesn't  think  it  is                                                              
measurable.   To her,  it is  either a  good idea  or not,  on its                                                              
face, and any  kind of effort to  determine it will "kill  it," in                                                              
the long  run.   Alluding to faith  healing, Representative  James                                                              
said she  doesn't believe that the  people who do the  prayer, for                                                              
example,  have the  ability  to make  that  decision,  which is  a                                                              
"faith effort."                                                                                                                 
                                                                                                                                
MR. GROSSI again  emphasized that he doesn't know  but wants to at                                                              
least look to  guidance from other states.  The  section does seem                                                              
to allow for  all benefits to proceed  as if this were  a standard                                                              
medical provider, he noted, and it  does allow for the employer to                                                              
have the employee  examined.  But the issue is  whether that still                                                              
will lead to a lot of questions.                                                                                                
                                                                                                                                
REPRESENTATIVE JAMES asked what happens,  if [Section 20] is taken                                                              
out, to a person  who wants to get this kind of  treatment.  Would                                                              
that  person's  benefits be  cut  off?   Or  would  the person  be                                                              
ineligible for any compensation?                                                                                                
                                                                                                                                
MR. GROSSI responded  that it would have to be up  to some medical                                                              
provider to make  a determination of disability and  so forth.  As                                                              
for  treatment with  prayer,  the department  has  never had  this                                                              
situation come  up, to his  knowledge, so  he doesn't know  how to                                                              
answer that question.                                                                                                           
                                                                                                                                
Number 1171                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT asked  whether a provision  in the  workers'                                                              
compensation  law  says  that somebody  who  unreasonably  refuses                                                              
treatment loses his or her benefits.                                                                                            
                                                                                                                                
MR. GROSSI  said not  per se, but  that could  happen if  a person                                                              
does something  that prolongs the disability when  treatment could                                                              
change that; there could be a controversion of those benefits.                                                                  
                                                                                                                                
REPRESENTATIVE  CROFT asked  if the more  important question  here                                                              
isn't whether  a person loses or  affects other rights  because of                                                              
choosing  prayer,  for  example,  rather  than the  issue  of  the                                                              
payment for prayer.                                                                                                             
                                                                                                                                
MR. GROSSI  replied that it  could be, but  there are a  number of                                                              
issues,   including   how   the  department   would   make   these                                                              
determinations,   which  would   involve  difficulties   regarding                                                              
expertise and what those determinations  would be based upon; what                                                              
the  possible costs  are to  the  system; and  how the  department                                                              
would administer this.                                                                                                          
                                                                                                                                
Number 1266                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  asked what  concessions had been  desired or                                                              
achieved  by the  business  community in  return  for raising  the                                                              
benefits to adjust for inflation.   He noted that Sections 2 and 6                                                              
on noncooperation appear  to be in that category,  as well as "the                                                              
waiver idea" in Section 7.                                                                                                      
                                                                                                                                
MR. GROSSI  pointed out  a side-by-side  analysis [dated  March 7,                                                              
2000] that  compares HB 419  with the present  law.  As  for major                                                              
areas,  he   first  listed  the   waiver  of  the   retraining  or                                                              
reemployment  benefits in  a  simple manner  [Section  7].   After                                                              
Representative  Rokeberg called attention  to another  document in                                                              
packets  [dated February  2, 2000,  titled  "Legislative Agenda  -                                                              
Year 2000"],  which lists  concerns of  management and  labor, Mr.                                                              
Grossi  said, "That  pretty  much is  the major  quid  pro quo,  I                                                              
guess."                                                                                                                         
                                                                                                                                
Number 1445                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT  questioned  whether,  philosophically,  the                                                              
process  of  giving  away  some  workers'  rights  in  return  for                                                              
adjusting costs for inflation every 12 years is the correct one.                                                                
                                                                                                                                
MR. GROSSI  pointed out  some increases  in benefits that  clearly                                                              
weren't there  before, such  as the death  benefit; if there  is a                                                              
widow or  widower and a  child, that goes  from 80 percent  of the                                                              
spendable weekly  wage to 90 percent,  and if there is  a widow or                                                              
widower and  two children or just  an orphan, then it goes  to 100                                                              
percent of  the spendable  weekly wage.   Those are beyond  merely                                                              
adjusting  for  inflation.    Also included  is  indexing  of  the                                                              
maximum and minimum compensation  rates.  Compensation is based on                                                              
80 percent  of the  employee's spendable  weekly wage,  Mr. Grossi                                                              
explained, up to  a maximum compensation rate,  which is presently                                                              
$700.   But this  provision allows  that to go  beyond $700  if 80                                                              
percent  of the  employee's  spendable weekly  wage  is more  than                                                              
$700; the same is true with minimum compensation rates.                                                                         
                                                                                                                                
REPRESENTATIVE  ROKEBERG also responded  to Representative  Croft,                                                              
indicating he doesn't  think it is an issue of  balancing one with                                                              
the  other here,  in terms  of the  compromise,  even though  some                                                              
concessions have been made.  Many  "management side" issues relate                                                              
to updating  the customary and  reasonable charge,  which probably                                                              
doesn't  hurt  the worker.    Furthermore,  he believes  that  the                                                              
change  in interest  rate should  have been done  anyway, by  this                                                              
committee.   A number of items  merely "clarify and clean  up," he                                                              
said.   He  suggested  that perhaps  the people  from  the ad  hoc                                                              
committee  should  talk  about  what  went  on  in  terms  of  the                                                              
compromise.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT   agreed  it  seems   to  be  a   mix,  with                                                              
concessions  by   labor  and  management  plus   technical  items.                                                              
However, the  committee is  being presented  with a public  policy                                                              
compromise that  legislators didn't make, he indicated,  with lots                                                              
of difficulties  purported if the  bill is amended.   He expressed                                                              
some discomfort  at being given  legislation and being  told, "You                                                              
can't touch it."   Representative Croft said he at  least wants to                                                              
know on  what basis those public  policy decisions have  been made                                                              
and whether [the  committee] agrees with them.   In particular, is                                                              
this going  to be the process used  in this area forever?   If the                                                              
price for  inflation-proofing benefits  is concessions every  8 to                                                              
12 years, he believes  that is an extremely poor  way to do public                                                              
policy  in  this area.    He  would be  glad  to  ask the  ad  hoc                                                              
committee about that, he added.                                                                                                 
                                                                                                                                
Number 1691                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT turned attention to Section 7, which read:                                                                 
                                                                                                                                
     *Sec.  7.   AS  23.30.041 is  amended  by  adding a  new                                                                 
     subsection to read:                                                                                                        
                                                                                                                                
          (r) Notwithstanding AS 23.30.012, an employee may                                                                     
     waive, at  any time, any  benefits or rights  under this                                                                   
     section,   including  an   eligibility  evaluation   and                                                                   
     benefits related  to a reemployment plan.   To waive any                                                                   
     benefits or rights under this  section, an employee must                                                                   
     file a  statement under  oath with  the board to  notify                                                                   
     the parties  of the waiver and  to specify the  scope of                                                                   
     benefits  or rights  that the employee  seeks to  waive.                                                                   
     The statement  must be on a form prescribed  or approved                                                                   
     by  the board.   The  board  shall serve  the notice  of                                                                   
     waiver on all parties to the  claim within 10 days after                                                                   
     filing.   The waiver  is effective  upon service to  the                                                                   
     party.    A  waiver  effective   under  this  subsection                                                                   
     discharges  the  liability   of  the  employer  for  the                                                                   
     benefits  or  rights contained  in  this section.    The                                                                   
     waiver may not be modified under AS 23.30.130.                                                                             
                                                                                                                                
REPRESENTATIVE  CROFT  pointed out  that  the new  language  would                                                              
allow  the employee  to waive  a benefit,  whereas currently  that                                                              
requires  board approval,  in  effect.   He  asked  whether it  is                                                              
standard in  workers' compensation to  have the board  approve any                                                              
settlement.                                                                                                                     
                                                                                                                                
Number 1717                                                                                                                     
                                                                                                                                
MR.  GROSSI said  the standard  in workers'  compensation is  that                                                              
payments  are made  under the  formulas  in the  statute.   Beyond                                                              
that, it requires a "compromise and release."                                                                                   
                                                                                                                                
REPRESENTATIVE  CROFT  asked whether  any  waiver  or increase  of                                                              
those requires board approval, then.                                                                                            
                                                                                                                                
MR. GROSSI said that is correct, right now.                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT asked  why  that provision  of having  board                                                              
approval for any waiver is in there [in current law], generally.                                                                
                                                                                                                                
MR. GROSSI answered that the statute  reads, to his belief, that a                                                              
"compromise  and release"  must be  in  the best  interest of  the                                                              
employee.   That  is why  it requires  this review,  to make  that                                                              
determination.                                                                                                                  
                                                                                                                                
Number 1749                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG requested  confirmation that the waiver of                                                              
permanent  partial impairment  (PPI)  currently can  be done  only                                                              
after a finding of medical stability.                                                                                           
                                                                                                                                
MR.  GROSSI answered,  "The  permanent partial  impairment  occurs                                                              
after medical  stability occurs,  and then there's  a rating.   As                                                              
far  as  waiving  it,  there  is  no  provision  for  waiving  the                                                              
permanent   partial   impairment."      Following   Representative                                                              
Rokeberg's comment that  he thought that was the  $700, Mr. Grossi                                                              
confirmed  that  Representative  Rokeberg  was talking  about  the                                                              
proposed  language, then  stated  that the  employee, under  this,                                                              
would  be  allowed  to receive  a  lump-sum  payment  rather  than                                                              
getting it in incremental payments  over time.  If a person waived                                                              
rehabilitation benefits  through a  form prescribed by  the board,                                                              
that  form would  have to  indicate every  possible benefit  being                                                              
waived,  and probably  would  indicate  telephone  numbers of  the                                                              
information officer and the board  for the person to call if there                                                              
were questions.                                                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG asked if  what the person would be waiving                                                              
would be the  rehabilitation benefits, which have  a maximum value                                                              
of $13,000 [under the bill].                                                                                                    
                                                                                                                                
MR. GROSSI said basically, yes.  It is the retraining benefits.                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG  said it is $10,000 now and  will go up to                                                              
$13,000.    He asked  whether  all  the  hullabaloo is  about  the                                                              
potential  of missing  out on a  $13,000 benefit,  when, in  fact,                                                              
many workers don't  even want to take the prescribed  training but                                                              
would rather do it on their own.                                                                                                
                                                                                                                                
MR.  GROSSI answered  that of  perhaps 300  people found  eligible                                                              
yearly, only approximately 25 actually  complete a plan.  The rest                                                              
basically settle out the benefits to obtain a lump-sum payment.                                                                 
                                                                                                                                
Number 1865                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI inquired  about  the difference  between                                                              
the "compromise  and  release" form  now in effect  and this  form                                                              
that the board  would create under subsection (r)  in Section 7 of                                                              
the bill.                                                                                                                       
                                                                                                                                
MR. GROSSI  explained that the  difference is that  the compromise                                                              
and  release requires  a formal  board  review and  determination,                                                              
whereas  this  would be  a  signed  waiver  that would  have  that                                                              
effect.    However,  it  would  only be  for  the  waiver  of  the                                                              
rehabilitation  benefits, not  the entire  claim, he  added.   The                                                              
difference is in the review.                                                                                                    
                                                                                                                                
Number 1904                                                                                                                     
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  returned   attention  to  Section   20                                                              
regarding religious  treatment.   She recalled  that in  the House                                                              
Labor  and Commerce  Standing Committee  it  had been  one of  the                                                              
first amendments presented,  in early March.  She  asked, "Are you                                                              
saying that nobody has had a chance  to look at this and speak up,                                                              
either in favor or in opposition?"                                                                                              
                                                                                                                                
MR. GROSSI  recalled that the amendment  was approved at  the last                                                              
meeting, and  he saw the draft a  day or two later because  he had                                                              
attended that  meeting telephonically.   He  added, "We  knew that                                                              
there was  something  out there;  we'd seen some  letters to  that                                                              
effect, but we really hadn't seen  the language until ... a day or                                                              
so after the [hearing]."                                                                                                        
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  suggested,  however, that  the  earlier                                                              
discussion  of the  draft language  should  have been  a "blip  on                                                              
somebody's radar screen."   She would be curious  to know what the                                                              
ad hoc committee thinks about that when they testify, she added.                                                                
                                                                                                                                
Number 1979                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN   followed  up  on  Representative   Croft's                                                              
concern.   He asked:   Did it take 12  years to get  agreement, or                                                              
were there 12 years when this didn't  need review?  And could this                                                              
issue be revisited in a year or two if this doesn't work?                                                                       
                                                                                                                                
MR. GROSSI  explained that originally  benefits were  addressed in                                                              
1988, when  there was a severe  recession.  Wages were  going down                                                              
but the premium  was going up, so  there was a feeling  that there                                                              
was a need to  address the premium.  The overall  premium has gone                                                              
down quite  a bit, Mr. Grossi  pointed out.  Furthermore,  raising                                                              
benefits has  been under discussion for  the last few years.   Mr.                                                              
Grossi  indicated it  takes some  time to get  enough support  for                                                              
these  kinds of  things  to actually  get  a proposal  before  the                                                              
legislature.  He suggested asking  the ad hoc committee about that                                                              
but said he certainly  would be willing to work in  the interim to                                                              
address  any  potential bills  in  the future  too.    He said  it                                                              
probably would be a good idea to  revisit benefits and those types                                                              
of things every couple of years.                                                                                                
                                                                                                                                
Number 2072                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  referred  to earlier  mention  that  the                                                              
lump-sum  payment  is  related to  the  waiver  of  rehabilitation                                                              
benefits.  She asked how that works,  both now and under the bill.                                                              
                                                                                                                                
MR. GROSSI answered that [now] one  can get a lump sum for waiving                                                              
rehabilitation  or waiving anything,  but it  is a formal  process                                                              
where  there is  a  signed settlement;  that  is  reviewed by  the                                                              
board,  and it  often requires  a  hearing to  get the  settlement                                                              
approved.  It can require some time.                                                                                            
                                                                                                                                
REPRESENTATIVE KERTTULA asked whether,  after passage of the bill,                                                              
one could get a lump sum simply by signing off on it.                                                                           
                                                                                                                                
MR. GROSSI  replied that one could,  but it strictly would  be for                                                              
the waiver  of reemployment benefits;  those would have  a maximum                                                              
of $13,300, plus, potentially, some  stipend benefits - 70 percent                                                              
of  the spendable  weekly  wage -  that might  be  due during  the                                                              
retraining  process.    All  of the  other  benefits  would  still                                                              
require board review.                                                                                                           
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA asked:   Would the  person be  taking the                                                              
money instead of the benefits, or is it some other lump sum?                                                                    
                                                                                                                                
MR. GROSSI answered,  "The law doesn't specifically  address that.                                                              
You  could.   I don't  think there  would  be anything  preventing                                                              
that."                                                                                                                          
                                                                                                                                
REPRESENTATIVE   JAMES  asked   whether   the  partial   permanent                                                              
settlement that one would take in  cash would be twice the $13,300                                                              
maximum amount for reemployment benefits.                                                                                       
                                                                                                                                
MR. GROSSI explained:                                                                                                           
                                                                                                                                
     It   depends.  ...   The  way   the  permanent   partial                                                                   
     impairment  works  is you're  rated under  the  American                                                                   
     Medical  Association  (AMA)  guides for  a  whole-person                                                                   
     impairment.   And  say your impairment  was 10  percent.                                                                   
     Presently, that  would be $13,500.   Under the  new law,                                                                   
     it would be  $17,700. ... It's whatever  percentage that                                                                   
     it is times that number.                                                                                                   
                                                                                                                                
MR. GROSSI,  in response  to a question  by Representative  James,                                                              
restated that  approximately 25  people complete  the plan  out of                                                              
the 300 determined eligible.                                                                                                    
                                                                                                                                
REPRESENTATIVE  JAMES asked  whether  that is  because the  others                                                              
took a settlement instead.                                                                                                      
                                                                                                                                
MR. GROSSI said that is primarily it, for the vast majority.                                                                    
                                                                                                                                
Number 2215                                                                                                                     
                                                                                                                                
REPRESENTATIVE   JAMES  asked:     If  a   person  is   doing  the                                                              
reemployment plan and  is still unable to work,  does this $13,300                                                              
- which is  the maximum that can  be spent - include  the training                                                              
and the ongoing monthly compensation while waiting?                                                                             
                                                                                                                                
MR. GROSSI  explained that as both  present law works and  the new                                                              
law would  work, someone who  chooses the reemployment  benefit is                                                              
paid  a  permanent  partial impairment  in  weekly  increments  of                                                              
whatever  the temporary  total  disability rate  is,  which is  80                                                              
percent of  one's spendable  weekly wage.   If that is  used, then                                                              
the "stipend"  would  kick in  and be  paid until  the end of  the                                                              
retraining process;  under present law, that is 60  percent of the                                                              
spendable  weekly wage,  and under  the new  law, it  would be  70                                                              
percent.  Therefore, there could  be some additional stipend money                                                              
as well.                                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES  said, "Of the  25 out of the  300 potential,                                                              
you're  assuming that  they  take the  money  up-front instead  of                                                              
going on.  Do you have any indication  how many people might start                                                              
and not  finish, or,  for some reason  or other, the  reemployment                                                              
plan wasn't a good plan for them?"                                                                                              
                                                                                                                                
MR.  GROSSI   answered  that  there   are  a  lot   of  variables.                                                              
Suggesting that  some "rehab people"  may have a better  handle on                                                              
it, he  then explained  that people are  basically told  what they                                                              
can be trained  for under the parameters of this  law, which those                                                              
people  may or  may  not want.    If people  don't  want it,  they                                                              
usually settle.                                                                                                                 
                                                                                                                                
REPRESENTATIVE JAMES requested an  overview of how much less money                                                              
people  receive under  the  settlement as  opposed  to taking  the                                                              
reemployment plan.   She suggested that  a person may get  more in                                                              
the latter  case, because  they may  still be permanently  totally                                                              
disabled in the end.                                                                                                            
                                                                                                                                
MR.  GROSSI said  he didn't  know,  but it  could be  less.   Even                                                              
currently,  if someone  doesn't want retraining  in [a  particular                                                              
field], that person won't take that benefit.                                                                                    
                                                                                                                                
Number 2350                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  returned attention  to Section 7.   He asked                                                              
whether  the Administration  would  have any  problem with  saying                                                              
that  one could  waive  any and  all  benefits  under the  compact                                                              
without board approval.                                                                                                         
                                                                                                                                
MR. GROSSI answered, "We may. ... I'd have to think about that."                                                                
                                                                                                                                
REPRESENTATIVE  CROFT  asked whether  it is  the  Administration's                                                              
position that  these rates,  these benefits,  should keep  up with                                                              
inflation.                                                                                                                      
                                                                                                                                
MR. GROSSI  replied, "As best as  possible, yes.  I would  have to                                                              
say that we feel  that would be the best thing.  ... There's a lot                                                              
of variables that  have to be considered, ... one  of which is ...                                                              
how much can be (indisc.)."                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  asked whether having the  "whole-body value"                                                              
go from  $135,000 to  $177,000 keeps  up with  inflation over  the                                                              
last 12 years.                                                                                                                  
                                                                                                                                
MR. GROSSI  said he would  defer to the  ad hoc committee,  but he                                                              
understands  that they  had used  the  Anchorage cost-price  index                                                              
(CPI) for the  calculation; they had started on  this awhile back,                                                              
so as to its present value, he doesn't know.                                                                                    
                                                                                                                                
Number 2409                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  inquired about  a change to allow  for an                                                              
annual readjustment.                                                                                                            
                                                                                                                                
MR. GROSSI  responded that  it is annualized  for the  maximum and                                                              
minimum compensation rates.                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  remarked that  they had taken  the weekly                                                              
caps off  of the benefits and  put those against  the "spendable."                                                              
He suggested there  would be an automatic increase  on that, which                                                              
is the stipend or weekly benefit.  He asked if that is correct.                                                                 
                                                                                                                                
MR.  GROSSI   replied  that  it   has  to  do  with   the  maximum                                                              
compensation rate and the minimum compensation rate.                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG asked whether that is on a weekly basis.                                                                
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
REPRESENTATIVE    ROKEBERG   commented,    "So   that    goes   up                                                              
automatically."                                                                                                                 
                                                                                                                                
Number 2448                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT asked  for confirmation  about what  goes up                                                              
automatically  and what  doesn't.   The  $177,000 -  which is  now                                                              
$135,000 -  wouldn't go up  automatically, but other  things would                                                              
start to be tied to it.  Therefore,  to the extent that got raised                                                              
later, the  other items would "float"  with it.  He  asked whether                                                              
that is accurate, then specified,  "What gets raised automatically                                                              
under this  new bill, and what  continues to need  our involvement                                                              
to raise it?"                                                                                                                   
                                                                                                                                
MR.  GROSSI answered  that the  maximum  and minimum  compensation                                                              
rates would be  adjusted automatically, yearly.   He affirmed that                                                              
the $177,000 wouldn't,  however, nor would the  retraining benefit                                                              
or funeral benefits.  He thinks that is basically it.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG asked to hear from the ad hoc committee.                                                                
                                                                                                                                
Number 2469                                                                                                                     
                                                                                                                                
WILLEM  (WILLY) VAN  HEMERT testified  via teleconference,  noting                                                              
that he is a  resident of Alaska who currently is  an owner of CRW                                                              
Engineering  Group.  He  specified that  he was representing  WCCA                                                              
[Workers'  Compensation   Committee  of  Alaska],   a  management-                                                              
supported  organization   that  looks  at  workers'   compensation                                                              
issues;  he mentioned  that  there  are approximately  150  member                                                              
organizations.   Mr. Van Hemert further  noted that he  had served                                                              
on the ad hoc committee as co-chair representing management.                                                                    
                                                                                                                                
TAPE 00-45, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MR. VAN  HEMERT reported  that the ad  hoc committee  supports the                                                              
proposed CS  with the exception  of Section 20  regarding coverage                                                              
for religious nonmedical health care  services.  He said he agrees                                                              
with Representative  James that, on  first reading, it  would seem                                                              
to  not be  an issue.    He explained  reasons  for opposing  that                                                              
provision:                                                                                                                      
                                                                                                                                
     First of all,  it hasn't had a lot of thought.   I think                                                                   
     anyone  who was on  Representative Rokeberg's  committee                                                                   
     ... seemed  to understand  that the  workers' comp  is a                                                                   
     very  complex system.   There  was no  review by  anyone                                                                   
     other  than  the committee  on  that  particular  issue.                                                                   
     And, to  our knowledge, there  are no other  states that                                                                   
     have  similar   legislation  involving  ...   nonmedical                                                                   
     health care services.                                                                                                      
                                                                                                                                
MR. VAN  HEMERT told members  that the legislation  doesn't really                                                              
address a problem at this time.   He has talked to Mr. Block (ph),                                                              
who will  present his  position as  a Christian  Scientist  to the                                                              
WCCA in two  weeks, "and even  he admits that there  are currently                                                              
no problems."   No one  has been denied  benefits, Mr.  Van Hemert                                                              
said.  Mr. Block  (ph) just perceives a potential  problem that he                                                              
is trying to address with legislation.  Mr. Van Hemert stated:                                                                  
                                                                                                                                
     We see this  as being a significant problem  in carrying                                                                   
     out workers' comp Acts.  We're  going to be looking at a                                                                   
     variety  of home  remedies  while people  are  receiving                                                                   
     benefits.  And Mr. Block (ph)  thinks that by putting in                                                                   
     there "relying  on good faith,"  we avoid the  problems.                                                                   
     But in  the real  world, when someone  puts in a  claim,                                                                   
     the only  way that  you can undo  that or argue  against                                                                   
     that claim is to controvert it.                                                                                            
                                                                                                                                
     When the  insurance carrier  controverts that claim,  it                                                                   
     has to  go before the board.   The board will  then have                                                                   
     to  determine whether  Hinduism, Buddhism,  [voodooism],                                                                   
     being part  of the [Jonestown]  cult, being  a Christian                                                                   
     Scientist  ... are  all  good-faith religions  on  which                                                                   
     they  can rely for  nonmedical treatment.   Then  you're                                                                   
     going to have a number of experts  testify as to whether                                                                   
     prayer,  steambaths,  marijuana,   acupuncture  are  all                                                                   
     reasonable remedies for whatever  the injury is at hand.                                                                   
     Those  will all have  to be  determinations made by  the                                                                   
     board, and I think that's what  Mr. Grossi was trying to                                                                   
     allude to.  Currently, the board  has wide discretion in                                                                   
     what they allow  for treatment.  And I think  that's why                                                                   
     it has not been a problem in the past.                                                                                     
                                                                                                                                
     The last item ... is the cost factor.  When you                                                                            
     consider all  these issues that are going  to be brought                                                                   
     before the board, we know a  lot of these claims will be                                                                   
     respected,  and there  is going  to  be cost  associated                                                                   
     with them.  The cost, if you  read in a letter from NCCI                                                                   
     [National  Council  on  Compensation  Insurance,  Inc.],                                                                   
     does not  include this  provision.   And I think  you're                                                                   
     going  to   have  a  very  difficult  time,   until  the                                                                   
     provision  is  enacted,  determining  what the  cost  is                                                                   
     [because],  again, I don't believe  any other  state has                                                                   
     this  provision --  or whether  the longshoremen's  Act,                                                                   
     which is a workers' compensation (indisc.).                                                                                
                                                                                                                                
     We  cannot support  this  amendment.   We  think it  was                                                                   
     well-intentioned,  but we think  it needs more  time, it                                                                   
     needs  more   thought.    And   WCCA  and  the   ad  hoc                                                                   
     [committee]  cannot  ... support  its  inclusion in  the                                                                   
     bill.                                                                                                                      
                                                                                                                                
Number 0168                                                                                                                     
                                                                                                                                
MR.  VAN  HEMERT   turned  attention  to   Representative  Croft's                                                              
question  regarding   whether  "we  [are]  trading   increases  to                                                              
benefits that  should be  normally taken  into account  because of                                                              
inflation by  giving away  benefits to the  injured worker."   Mr.                                                              
Van  Hemert declared,  "Definitely not."   One  reason that  wages                                                              
haven't been  adjusted is  that for  a number  of years,  the $700                                                              
represented  the highest  weekly  maximum of  any state.   To  his                                                              
belief, currently that  amount is still either the  fifth or sixth                                                              
highest of the 50 states.                                                                                                       
                                                                                                                                
MR.  VAN HEMERT  explained that  management  recognizes that  some                                                              
items need to be negotiated periodically,  and there are not a lot                                                              
of  dollar issues  on  the management  side.   Many  of these  are                                                              
implementation issues.  Once a law  is written, the implementation                                                              
is not always similar  to what the intent was, and  many times the                                                              
intent  has been eroded  either through  the court  system  or the                                                              
board's actions.   "And I think a  lot of the things  that we have                                                              
are just trying to restore that," Mr. Van Hemert added.                                                                         
                                                                                                                                
MR. VAN  HEMER turned  attention to the  waiver issue.   Asserting                                                              
that the waiver is strictly for reemployment benefits, he said:                                                                 
                                                                                                                                
     Part  of the  reason that  we requested  this waiver  is                                                                   
     that the PPI is paid as a lump  sum. ... There are times                                                                   
     when the injured worker really  does not want vocational                                                                   
     rehabilitation.   And  in order  to get  a PPI  payment,                                                                   
     there are  a number of steps  he has to go  through that                                                                   
     the  injured worker  may not  want to;  that delays  his                                                                   
     payment.   So  this is  also potential  benefits to  the                                                                   
     injured worker.                                                                                                            
                                                                                                                                
     The other problem  is ... that management  does not like                                                                   
     to see double  dipping.  So what occurs is  sometimes if                                                                   
     the PPI payment  is made in a lump sum,  and the injured                                                                   
     worker  comes  back several  years  later and  asks  for                                                                   
     vocational rehabilition, then  the weekly wages that are                                                                   
     paid come off of a separate  stipend that's not included                                                                   
     in  the  PPI.    The  PPI  is  basically  gone  or  very                                                                   
     difficult to get [back].  We  did try to strengthen that                                                                   
     with this legislation.                                                                                                     
                                                                                                                                
Number 0262                                                                                                                     
                                                                                                                                
REPRESENTATIVE   CROFT   asked   whether   there   was   a   labor                                                              
representative from  the ad hoc  committee available,  and whether                                                              
Mr. Van Hemert was representing the ad hoc committee itself.                                                                    
                                                                                                                                
MR. VAN  HEMERT indicated  Kevin Dougherty,  the ad hoc  committee                                                              
member  who represents  the [District  Council  of Laborers],  was                                                              
unavailable; however,  the two men  had spoken about  these issues                                                              
and were basically in agreement.                                                                                                
                                                                                                                                
CHAIRMAN  KOTT  asked  whether  Mr.   Dougherty  is  also  of  the                                                              
impression that Section 20 should be deleted.                                                                                   
                                                                                                                                
MR. VAN HEMERT  answered, "Yes.  He basically has  no knowledge of                                                              
it, and he feels that it needs more  study before we can really go                                                              
forward with it."                                                                                                               
                                                                                                                                
CHAIRMAN KOTT asked, "Would you withdraw  your support of the bill                                                              
if Section 20 were retained in the bill?"                                                                                       
                                                                                                                                
MR. VAN HEMERT affirmed that.                                                                                                   
                                                                                                                                
Number 0316                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG returned attention  to subsection  (r) in                                                              
Section  7 of  the bill.   He  stated his  understanding that  the                                                              
total amount of  the benefit package for vocational  retraining is                                                              
now going to  be limited, in the  new draft, to $13,300,  but that                                                              
doesn't include the weekly stipend.                                                                                             
                                                                                                                                
Number 0331                                                                                                                     
                                                                                                                                
MR. VAN HEMERT  said no, it does  not.  Normally, if  someone were                                                              
to  request   vocational  rehabilitation,  that   person's  weekly                                                              
stipend would  be paid from their  PPI lump sum until it  ran out.                                                              
Once the PPI lump  sum runs out, they would continue  to receive a                                                              
stipend that comes from a different  pot of money.  They would not                                                              
be left without  a weekly stipend.  He thinks there  is a two-year                                                              
limit on vocational rehabilitation.                                                                                             
                                                                                                                                
Number 0350                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked if  there has  been a problem  with                                                              
some workers  entering into  a vocational rehabilitation  program,                                                              
continuing for  a while,  dropping out, and  then asking  to start                                                              
another one, so that it goes on and on.                                                                                         
                                                                                                                                
MR.  VAN   HEMERT  said  he  is   an  engineer,  not   a  workers'                                                              
compensation  expert, and  doesn't know  about that.   Nor  has he                                                              
heard it mentioned before.                                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG asked how it benefits workers.                                                                          
                                                                                                                                
MR. VAN HEMERT  explained that the benefit is that  the worker can                                                              
get a lump-sum  PPI payment immediately, without having  to go the                                                              
board or to have a vocational rehabilitation evaluation.                                                                        
                                                                                                                                
Number 0401                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  said  he  had  heard in  the  House  L&C                                                              
Committee that  there is  some fear of  coercion, such as  from an                                                              
insurance company that might persuade  an injured worker to take a                                                              
lump  sum "to get  rid of  him," and  the worker  then would  lose                                                              
benefits including  the right  to come back  for retraining.   The                                                              
implication was that there is a greater  total package of benefits                                                              
available  if one  comes back  for  retraining after  a period  of                                                              
time.                                                                                                                           
                                                                                                                                
MR. VAN  HEMERT responded  that there  would be  no difference  in                                                              
benefits  that  he was  aware  of, other  than  the  fact that  an                                                              
injured  worker  who received  a  PPI  payment under  the  current                                                              
system could  [later] go  back and  get vocational  rehabilitation                                                              
because  it is very  difficult to  retrieve the  PPI payment,  and                                                              
this legislation basically undoes the double dipping.                                                                           
                                                                                                                                
MR. VAN  HEMERT explained that normally  the PPI payment  would go                                                              
toward the weekly  stipend.  That is the trade-off.   If one wants                                                              
want vocationally  rehabilitation,  one doesn't get  the PPI  in a                                                              
lump sum;  it just  becomes part  of the  stipend.  Anything  left                                                              
over after  paying out the  weekly stipend  would still go  to the                                                              
injured worker  in a lump sum,  but only after the  weekly stipend                                                              
has been paid  during rehabilitation.                                                                                           
                                                                                                                                
Number 0741                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  asked where  double dipping is  addressed in                                                              
the bill.                                                                                                                       
                                                                                                                                
MR. VAN HEMERT  explained that it  is not in the bill,  which just                                                              
sets time limits  regarding how long after an injury  a worker can                                                              
request  vocational  rehabilitation.   It  has  to be  within  two                                                              
years, and there is some language  more strongly reinforcing that;                                                              
if a worker take the PPI as a lump  sum, that amount will be taken                                                              
out of the worker's  weekly stipend if that worker  later asks for                                                              
vocational rehabilitation.                                                                                                      
                                                                                                                                
Number 0500                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG recalled  an earlier  question about  the                                                              
increase in  the PPI.   He asked if  the committee's  analysis was                                                              
correct that  the weekly benefit goes  up and will continue  to go                                                              
up, but that there is an overall  cap on the total benefit and the                                                              
retraining benefit.                                                                                                             
                                                                                                                                
MR. VAN HEMERT confirmed that that was a correct interpretation.                                                                
                                                                                                                                
Number 523                                                                                                                      
                                                                                                                                
REPRESENTATIVE  MURKOWSKI referred  to  a letter  received by  the                                                              
committee  urging rejection  of Section  7, subsection  (r).   The                                                              
writer had  expressed concern  that an  employee could  waive this                                                              
[vocational  rehabilitation] without  appropriate legal  advice or                                                              
explanation.  Representative Murkowski  conveyed her understanding                                                              
that the compromise  and release form tells workers  what they are                                                              
waiving.   "But is  actual legal  advice being  made available  to                                                              
them, and  is that being  eliminated through this  provision?" she                                                              
asked.                                                                                                                          
                                                                                                                                
Number 0564                                                                                                                     
                                                                                                                                
MR. GROSSI said  a worker can obtain use of an  attorney but isn't                                                              
required to  have one.   If the worker  does use an  attorney, the                                                              
employer may be required to pay for that.                                                                                       
                                                                                                                                
Number 0490                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked:     If  the  division  makes  an                                                              
attorney  available  to a  worker,  is that  at  the worker's  own                                                              
expense?                                                                                                                        
                                                                                                                                
MR. GROSSI  explained that  it could  be, but  an employer  may be                                                              
required to pay the attorney under certain conditions.                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI summarized  her understanding that if the                                                              
committee were to pass this legislation,  individual workers still                                                              
would be  able to  seek their own  legal counsel  just as  they do                                                              
now.                                                                                                                            
                                                                                                                                
MR. GROSSI said that was correct.                                                                                               
                                                                                                                                
REPRESENTATIVE CROFT  said the main  thing that changes,  then, is                                                              
that there  would no longer be  board determination that  a waiver                                                              
is in the best interest of the worker.                                                                                          
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
Number 0625                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  inquired about  a letter from  Mr. Joseph                                                              
A. Kalamarides  that says  currently the  reemployment benefit  is                                                            
paid in a lump sum without [the worker] signing anything.                                                                       
                                                                                                                                
Number 0545                                                                                                                     
                                                                                                                                
MR.  GROSSI explained  that if  the  employee is  not entitled  to                                                              
retraining  benefits,  that  person  is  entitled  to  a  lump-sum                                                              
payment of PPI;  that PPI is paid in weekly increments,  as is the                                                              
temporary total disability compensation  rate, which is 80 percent                                                              
of  the  spendable  weekly  wage.   "The  answer,"  he  said,  "is                                                              
'sometimes,'  but only if  they have not  requested rehab  or they                                                              
are not in  that process."  He  said that would be the  same under                                                              
the proposed law.                                                                                                               
                                                                                                                                
Number 0690                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked whether  it is  the  right of  the                                                              
injured worker  to request the reemployment training,  and whether                                                              
the worker has  to have a certain percentage of  impairment before                                                              
the request can be made.                                                                                                        
                                                                                                                                
MR. GROSSI  explained that the worker  has to have  an impairment,                                                              
and there has to have been a prediction  that the worker is unable                                                              
to return to  the job held at  the time of injury or  any job held                                                              
within the past ten years.                                                                                                      
                                                                                                                                
Number 0709                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked,   "So  that  determination  would                                                              
already have  been made before there  is even a chance  to grant a                                                              
waiver?   In other words, you  have to qualify for  these benefits                                                              
before you can waive them, right?"                                                                                              
                                                                                                                                
MR. GROSSI said yes.                                                                                                            
                                                                                                                                
Number 0722                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked for  clarification about the process                                                              
of  determination of  eligibility  for retraining,  and asked  who                                                              
makes that determination.                                                                                                       
                                                                                                                                
MR. GROSSI explained  that the injured worker makes  a request and                                                              
the division  refers the  worker to  a rehabilitation  specialist.                                                              
The worker is  evaluated, and then there is a  determination as to                                                              
whether that  worker is  eligible or  ineligible according  to the                                                              
statute.  That determination is made  by the reemployment benefits                                                              
administrator.   At that point, the  worker can either  go forward                                                              
with the retraining or settle the case.                                                                                         
                                                                                                                                
Number 0760                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG observed  that this seems to indicate that                                                              
a worker  does not  need a  board ruling  of medical stability  or                                                              
retrainability, for instance.                                                                                                   
                                                                                                                                
MR. GROSSI  replied, "As for as the  referral, no.  As  far as the                                                              
ability  to return  to work,  there has  to be a  prediction  by a                                                              
doctor at this point."                                                                                                          
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  whether  a  dispute  between  the                                                              
worker and  the adjuster about the  worker's ability to  return to                                                              
work would go to the board.                                                                                                     
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  if, when  everybody agrees  that a                                                              
worker  needs  to  be  retrained,   the  adjuster  can  make  that                                                              
determination.                                                                                                                  
                                                                                                                                
MR. GROSSI said the adjuster can  make the referral, but still the                                                              
worker's eligibility has to be determined.                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG  surmised that it would be  the same under                                                              
the new bill as under existing law.                                                                                             
                                                                                                                                
MR. GROSSI confirmed that it would.                                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG  said he wanted  to clarify that  a period                                                              
of time had lapsed before this takes place.                                                                                     
                                                                                                                                
MR. GROSSI  assured him, "Most of  this stuff doesn't  occur until                                                              
medical stability.  There has to be some prediction ...."                                                                       
                                                                                                                                
REPRESENTATIVE  ROKEBERG  interjected, "...  of  whether they  can                                                              
return to  work or not  or whether they  need retraining,  so then                                                              
the retraining benefits pop up."                                                                                                
                                                                                                                                
MR. GROSSI said that was correct.                                                                                               
                                                                                                                                
REPRESENTATIVE  ROKEBERG summarized,  "So the  adjuster would  say                                                              
the retraining  benefits are applicable  in this  case; therefore,                                                              
[do] you want  to waive these benefits  and get them right  now or                                                              
do you want to go through this whole  rigmarole?  Okay, I got it."                                                              
                                                                                                                                
Number 0875                                                                                                                     
                                                                                                                                
DON ETHERIDGE,  Lobbyist for AFL-CIO  for Alaska, said  that group                                                              
supports the bill as it came out  of the ad hoc committee.  He has                                                              
heard complaints that more changes  are needed, but as he was told                                                              
years ago,  there only  way to eat  an elephant  is one bite  at a                                                              
time.   "We see this as  our first bite,"  he said, "and  let's go                                                              
for another one at another time,  but let's go ahead and take this                                                              
bite while we have an opportunity  to do so."  He noted that there                                                              
have not been many other improvements  in workers' compensation in                                                              
a long time, and this is a step in the right direction.                                                                         
                                                                                                                                
Number 0933                                                                                                                     
                                                                                                                                
MARJORIE  LINDER, Vocational  Rehabilitation  Counselor, said  she                                                              
has worked  in the  workers' compensation  system since  1978, has                                                              
served  on   the  rehabilitation   committee  in  1988,   and  was                                                              
instrumental  in  helping  to  draft   this  law,  which  she  now                                                              
considers "a  Frankenstein."  Back  then, she thought the  law was                                                              
unbalanced in favor of injured workers.   "But at this point," she                                                              
said, "this law  is so out of balance [in the  opposite direction]                                                              
that if  it were put  in a washing  machine it would  dance across                                                              
the room."                                                                                                                      
                                                                                                                                
MS. LINDER told members she had been  listening to the committee's                                                              
questions and the explanations of  what the rehabilitation benefit                                                              
is and all that  goes into it.  She thinks those  participating in                                                              
the  discussion  have  far  more  intelligence  than  the  average                                                              
injured worker, but even they do  not understand it.  She does not                                                              
see how  they expect this  to be explained  on a board form.   The                                                              
injured worker will  not know what he/she is waiving  until he/she                                                              
is medically  stable.   This law  allows the  worker to  waive the                                                              
benefits at  any time, which  could happen before  being medically                                                              
stable  or  found  eligible,  even;  the  worker  may  be  waiving                                                              
benefits that  he/she may  or may  not even have.   This  law also                                                              
allows one  to waive the benefit  before a rehabilitation  plan is                                                              
written  for it,  so the  person won't  really know  how long  the                                                              
rehabilitation benefit is for, and  therefore how much money he or                                                              
she would get.                                                                                                                  
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
MS. LINDER  testified that an injured  worker is waiving  far more                                                              
than $13,000.   The worker  is waiving [financial]  support during                                                              
the period of  rehabilitation.  For instance, if  the worker had a                                                              
herniated disk, that is a PPI award  of about 7 percent, "so we're                                                              
talking about  seven times $17,070."   She said  that hypothetical                                                              
worker is paid  at $500 a week  for 17.7.  After that,  the worker                                                              
is paid the rehabilitation  stipend for the balance  of what could                                                              
be a two-year  retraining program, which would be  for 84.3 weeks.                                                              
Under the new law,  this would give the worker about  $450 a week.                                                              
So the worker  is paid $450 a  week while retraining for  the rest                                                              
of the 84.3 weeks,  then is paid for tuition and  supplies up to a                                                              
maximum of  $13,300.  Ms. Linder  began doing the math  to come up                                                              
with the total benefits that would be waived.                                                                                   
                                                                                                                                
Number 1130                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG,  citing a  letter  that  Ms. Linder  had                                                              
written to the House L&C Committee,  quoted a total of $51,235 [to                                                              
which Ms. Linder  concurred] that was what the  injured worker was                                                              
really waiving.                                                                                                                 
                                                                                                                                
MS. LINDER  again pointed  out that when  Mr. Grossi had  tried to                                                              
explain what an injured worker was  waiving, the committee members                                                              
couldn't even figure it out.  She  emphasized the complexity.  Ms.                                                              
Linder  expressed   concern  that  an  injured   worker  could  be                                                              
approached at  any time, [perhaps]  two weeks or two  months after                                                              
the injury,  when full  of optimism  and thinking  that he  or she                                                              
would be  going back  to work;  when offered  what sounded  like a                                                              
large cash  settlement, the worker  probably could not  figure out                                                              
what would  be waived.  And what  happens to these people?   Where                                                              
do they go?   "They go to  the state, they go to  other disability                                                              
systems," she  said, then concluded,  "I am simply saying  that we                                                              
need to make  people responsible who should be  responsible in the                                                              
first place, and get rid of this  waiver, and really have a second                                                              
look at it because it is an invitation to litigation."                                                                          
                                                                                                                                
Number 1299                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked Ms. Linder if, as  a rehabilitation                                                              
specialist, she writes rehabilitation  plans.  If so, he requested                                                              
confirmation that she has a vested interest.                                                                                    
                                                                                                                                
MS. LINDER  said that  to some  extent she  does because  about 10                                                              
percent of her practice consists  of writing rehabilitation plans.                                                              
                                                                                                                                
Number 1320                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked:   If  somebody now  enters into  a                                                              
plan that does  not work out, does that person  then start another                                                              
one?                                                                                                                            
                                                                                                                                
MS. LINDER  said that would  be very rare,  and she has  never had                                                              
that happen.  She emphasized that  she objects to the language "at                                                              
any  time."   If people  want to  waive this  after knowing  their                                                              
impairment ratings  and whether they are eligible  for the benefit                                                              
or not,  she has no  objection to that.   However, she  objects to                                                              
their waiving  this before knowing  the outcome of  their injuries                                                              
or whether they will be able to return to work.                                                                                 
                                                                                                                                
Number 1389                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES said she understands Ms. Linder's concern.                                                                 
                                                                                                                                
REPRESENTATIVE  ROKEBERG observed  that a  point being made  might                                                              
have been  missed in  the House L&C  Committee hearing,  regarding                                                              
the timing  [of the waiver] being  "at any time" versus  after the                                                              
finding of impairment.  He suggested  there might be an assumption                                                              
that a  person would wait until  the percentage of  impairment was                                                              
determined  before   it  would  even  be  possible   to  make  the                                                              
calculation.                                                                                                                    
                                                                                                                                
MS. LINDER  said  that would  a lot of  sense.   If the  committee                                                              
would  remove   the  "at  any   time"  and  have   "after  medical                                                              
stability," she believes that would be quite agreeable.                                                                         
                                                                                                                                
Number 1493                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked Mr.  Van Hemert  why "at  any time"                                                              
had been included.                                                                                                              
                                                                                                                                
MR. VAN HEMERT said he did not think  it was anything intentional,                                                              
and actually  the ad  hoc committee  wouldn't oppose an  amendment                                                              
including "after medical  stability"; they want to  make sure that                                                              
medical stability is obtained either  through the injured workers'                                                              
physician or the AMA doctor, for example.                                                                                       
                                                                                                                                
MS. LINDER  said she  did not know,  but she  thinks it  should be                                                              
whoever knows this  person best and has the most  information, for                                                              
example; that is a separate issue.   She indicated the desire that                                                              
this determination  could  be made after  medical stability,  when                                                              
there is more  information.  She concluded by saying  that "at any                                                              
time" is the problem she'd had with this all along.                                                                             
                                                                                                                                
Number 1573                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI informed  members that  she herself  had                                                              
asked this  question in the House  L&C Committee.   She explained,                                                              
"I said, it says  'at any time,' and the assurance  I received was                                                              
that  'it never  happens  at any  time,  it always  happens  after                                                              
medical stability.'  I agree with  Ms. Linder.  I think if that is                                                              
the case, then we should specify it."                                                                                           
                                                                                                                                
Number 1602                                                                                                                     
                                                                                                                                
MR. GROSSI  responded that for  all practical purposes,  he agrees                                                              
that this only happens after medical  stability occurs because the                                                              
permanent  partial impairment  rating cannot  be done until  after                                                              
medical  stability;  neither  can  the determination  be  made  of                                                              
whether retraining  benefits are  due.  Mr.  Grossi said  he could                                                              
not speak for  the ad hoc committee  but did not think  they would                                                              
have a problem with that.                                                                                                       
                                                                                                                                
Number 1708                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  expressed concern about whether  there is                                                              
a definition of "medical stability" in the statute now.                                                                         
                                                                                                                                
MR. GROSSI  assured him  that it is well  defined both  in statute                                                              
and in case law.                                                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG asked what the definition says.                                                                         
                                                                                                                                
MR.  GROSSI  said  he  thinks  AS   23.30  says  45  days  without                                                              
measurable improvement.                                                                                                         
                                                                                                                                
Number 1749                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  suggested  that  the term  shouldn't  be                                                              
"medical stability,"  but that  the trip wire  should be  when the                                                              
impairment has been approved and so forth.                                                                                      
                                                                                                                                
MR.  GROSSI clarified  that medical  stability basically  triggers                                                              
the permanent partial  impairment rating and the  determination as                                                              
to whether the person can go back  to work or may need retraining.                                                              
                                                                                                                                
Number 1803                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI read the  definition [from AS 23.30.395],                                                              
which stated:                                                                                                                   
                                                                                                                                
     (21)  "medical stability"  means  the  date after  which                                                                   
     further  objectively  measurable  improvement  from  the                                                                   
     effects  of the  compensable  injury  is not  reasonably                                                                   
     expected  to  result  from additional  medical  care  or                                                                   
     treatment,   notwithstanding  the   possible  need   for                                                                   
     additional   medical   care   or  the   possibility   of                                                                   
     improvement or deterioration  resulting from the passage                                                                   
     of  time; medical  stability  shall be  presumed in  the                                                                   
     absence  of  objectively measurable  improvement  for  a                                                                   
     period of 45  days; this presumption may  be rebutted by                                                                   
     clear and convincing evidence;                                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG  said the trouble  now is the  ability [of                                                              
an  injured  worker] to  come  back  after  that.   "That  statute                                                              
doesn't work, I don't think," he added.                                                                                         
                                                                                                                                
Number 1844                                                                                                                     
                                                                                                                                
MR. GROSSI disagreed.  He said he  thought Representative Rokeberg                                                              
was talking about  the idea of whether or not the  worker can come                                                              
back and ask for reemployment benefits  after having received [the                                                              
PPI  lump-sum payment].   Right  now,  nothing prevents  that.   A                                                              
person could  receive PPI in a  lump sum, and, under  current case                                                              
law, that  person could  come back in  a year  or so and  might be                                                              
entitled  to  the stipend  or  the  60 percent  of  the  spendable                                                              
[weekly wage]  - or  70 percent under  the new  law - and  be paid                                                              
that.  The waiver  would probably prevent that  from occurring, he                                                              
added.                                                                                                                          
                                                                                                                                
Number 1895                                                                                                                     
                                                                                                                                
REPRESENTATIVE   JAMES  remarked  that   there  is  a   very  good                                                              
possibility that someone could meet  the criterion of being at the                                                              
end  of medical  stability and,  depending  on the  nature of  the                                                              
injury, might  decide to waive  [retraining benefits] and  ask for                                                              
[the  lump-sum  payment]  because  the  person  assumes  there  is                                                              
another job  out there  that is  different from  the old  one, but                                                              
which he  or she can do.   But then  the person tries the  job and                                                              
finds he/she cannot do it.  Then  the worker tries yet another job                                                              
and  finds he/she  cannot  do that  either.   At  that point,  the                                                              
person would  realize the need to  be retrained.   However, he/she                                                              
would have given up the retraining benefit.                                                                                     
                                                                                                                                
MR. GROSSI acknowledged that is possible.                                                                                       
                                                                                                                                
Number 1945                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT observed  that although  people keep  saying                                                              
this waiver  provision is for the  benefit of the  injured worker,                                                              
HB 419  is essentially  taking out the  board determination.   The                                                              
reason for  board approval is to  ensure some check that  a waiver                                                              
is in the  best interests of an  injured worker without  a job and                                                              
with  medical bills  stacking up,  he  indicated.   Representative                                                              
Croft agreed with what Ms. Linder had pointed out.  He stated:                                                                  
                                                                                                                                
     The people who  are negotiating this on [the  employer's]                                                                  
     side  can calculate  out  this $51,000.   They  know  it,                                                                  
     it's their job,  they can figure  it out.  I couldn't  do                                                                  
     it now;  I probably  couldn't  do it  after another  four                                                                  
     hours  of this  hearing, and  I don't  know  how you  can                                                                  
     expect an  injured worker  to really  know what they  are                                                                  
     waiving.   I thought  until  Ms. Linder  started that  it                                                                  
     was $13,300.   Now  I'm not so  sure, but  I am more  and                                                                  
     more sure  that an injured  worker is  not in a  position                                                                  
     to know  all the things  they are waiving.   And all  you                                                                  
     get  if you  leave out  Section 7  is  the board  saying,                                                                  
     "Yes, this is  in your best interests  to do this.   They                                                                  
     have offered  you something else.  They have offered  you                                                                  
     a different  plan that makes  some sense  for you."   Or,                                                                  
     "No,  you're  waiving   much  more  than  $13,000,"   and                                                                  
     explaining it.  That's  what the board ... is  there for,                                                                  
     to  make  sure   that  these  things  are  in   the  best                                                                  
     interests of the worker.                                                                                                   
                                                                                                                                
Number 2029                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  said he thought what they  were trying to                                                              
avoid is  having it  be protracted and  the litigation  that comes                                                              
with  that.   He isn't  satisfied  with "any  time"  either.   But                                                              
neither did he  want to just regress to the  current system, which                                                              
isn't working. He added, "But I don't  think there is anybody here                                                              
other than Mr. Grossi who can explain that."                                                                                    
                                                                                                                                
REPRESENTATIVE  JAMES said  no one  has explained  to her why  the                                                              
current system is not working.                                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  why [HB  419] had been  requested,                                                              
then.  He suggested that what the  ad hoc committee is agreeing to                                                              
is  use of  the term  "medical stability"  and  then allowing  the                                                              
adjuster to [determine]  that, which would avoid the  board.  "I'm                                                              
just concerned about  stretching it beyond what  they've agreed to                                                              
or what they are willing to pay," he concluded.                                                                                 
                                                                                                                                
NUMBER 2206                                                                                                                     
                                                                                                                                
MIKE JENSEN,  Attorney  at Law, testified  by teleconference  from                                                              
Anchorage.  He  said he had been practicing  workers' compensation                                                              
law in  Alaska for 15 years,  representing injured  workers before                                                              
the Workers'  Compensation Board  as well as [longshoremen]  cases                                                              
before administrative law judges.   He does not do personal injury                                                              
law or represent anyone other than  in the compensation situation.                                                              
Mr.  Jensen  said it  is  obvious  to him  that  "everybody  here"                                                              
started out  with the  best of  intentions, and  he thinks  HB 419                                                              
goes in the right direction, making  up for 12 years of neglect as                                                              
far as  workers' compensation  rates.  But  he has some  concerns,                                                              
the biggest  one being that  just referred to  by Ms. Linder.   To                                                              
him,  this  Act  corrects  a problem  that  doesn't  exist.    For                                                              
example,  currently workers  can  waive reemployment  benefits  if                                                              
doing so is in their best interest.                                                                                             
                                                                                                                                
MR. JENSEN  stated his belief that  there is no cause  for concern                                                              
about double dipping.  If a worker  is paid permanent benefits and                                                              
later discovers  that the need for  surgery for a  herniated disk,                                                              
for example, it  is possible to get retraining  benefits if unable                                                              
to work at a former job.  However,  the employer gets to take back                                                              
a portion of the  permanent benefits that were paid  out in a lump                                                              
sum.  There have been board decisions  that require those benefits                                                              
to be paid out with a deduction for  the excess permanent benefits                                                              
paid in the past.                                                                                                               
                                                                                                                                
Number 2361                                                                                                                     
                                                                                                                                
MR.  JENSEN  addressed Representative  Rokeberg's  concerns  about                                                              
dropping one  plan and then  getting into  another plan.   He said                                                              
there is  a [state]  supreme court  case, "Something versus  Greek                                                              
Corner,"  in  which   the  injured  worker  did   not  finish  one                                                              
rehabilitation  plan and  wanted to  start another.   The  supreme                                                              
court said that  under the circumstances, that  worker could start                                                              
a new rehabilitation plan but could  not use up more than $10,000.                                                              
Since the first rehabilitation plan  had used up $5,000 of it, the                                                              
worker could only get another $5,000.   "In other words," he said,                                                              
"you don't  double dip.   There's  a maximum and  that's it."   He                                                              
restated  that the  problems which  HB 419  tries to  fix are  not                                                              
really there, having been corrected  by board decisions as well as                                                              
by the supreme court.  The big fault  he finds with HB 419 is that                                                              
it adds  new time  lines and  makes the  system even more  complex                                                              
because it now allows for at least  two or three different ways to                                                              
forfeit one's benefits that weren't there before.                                                                               
                                                                                                                                
TAPE 00-46, SIDE A                                                                                                            
                                                                                                                              
MR. JENSEN  continued.   He said this  is not  a field of  the law                                                              
that  attorneys are  clamoring to  get  into.   With this  system,                                                              
there is going to  be the need for even more attorneys.   It makes                                                              
it too complex.  When he started  out 15 years ago, a person could                                                              
go through  the whole system, have  a hearing and get  benefits if                                                              
so-entitled  without  meeting  an attorney,  which  is  impossible                                                              
anymore.  His  biggest complaint with the proposed  changes is the                                                              
waiver of  the reemployment  benefits, which  someone could  do at                                                              
any time.  As far as legal advice,  injured workers do not come to                                                              
see  an attorney  like  himself until  something  has gone  wrong.                                                              
With this  proposal, once  the worker has  waived the right  it is                                                              
too late, because there is no recourse  to appeal it or change it.                                                              
A worker can waive  it at any time without the  benefit of advice;                                                              
by the time the  worker finds out that he/she made  a big mistake,                                                              
no  attorney  will get  those  benefits  reinstated.   Mr.  Jensen                                                              
encouraged the committee  to propose an amendment to  allow for an                                                              
informed   waiver  made   only  with  the   appreciation   of  the                                                              
seriousness of the disability.                                                                                                  
                                                                                                                                
Number 0225                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  indicated Mr.  Jensen used to  practice with                                                              
Representative Croft's  father, who is  one of the other  five who                                                              
still practice workers' compensation law.                                                                                       
                                                                                                                                
REPRESENTATIVE MURKOWSKI  surmised that  if the committee  were to                                                              
amend the  bill, then Mr.  Jensen would  also want them  to delete                                                              
the reference to "at any time."                                                                                                 
                                                                                                                                
MR. JENSEN replied, "Yes, definitely."   He again proposed that it                                                              
should  say,  "an   appreciation  of  the  seriousness   of  their                                                              
disability or injury."                                                                                                          
                                                                                                                                
REPRESENTATIVE  ROKEBERG  commented that  it  is  impossible.   He                                                              
agrees regarding [removing] "at any  time," he said, but thinks it                                                              
has to do with trying to determine  the standard.  If they did use                                                              
"medical stability,"  how would that be determined?   He indicated                                                              
the  need  to keep  it  out  of the  Workers'  Compensation  Board                                                              
because  of cost.   He wondered  if rehabilitation  plan would  be                                                              
needed, and what the fee would be.                                                                                              
                                                                                                                                
REPRESENTATIVE  CROFT  indicated  the committee  could  have  that                                                              
debate under the  bill or amendments, but in his  opinion they are                                                              
going to want Workers' Compensation  Board involvement rather than                                                              
a bunch of  lawyers trying to  apprise injured workers of  all the                                                              
consequences at that  time.  Workers could be  informed beforehand                                                              
and  sign  a  waiver  indicating  complete  understanding  of  the                                                              
consequences,  or a determination  could be  made afterwards  by a                                                              
neutral body that  it was done in the worker's best  interest.  He                                                              
added, "That's the system we put in, and it makes some sense."                                                                  
                                                                                                                                
Number 0407                                                                                                                     
                                                                                                                                
REPRESENTATIVE   JAMES   asked   whose   interest   the   Workers'                                                              
Compensation Board is representing.                                                                                             
                                                                                                                                
REPRESENTATIVE CROFT replied, "We've  got one business, one labor,                                                              
and one in-between,"  the latter being a professional  who studies                                                              
the law.                                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  suggested that the  Workers' Compensation                                                              
Board is a quasi-judicial board funded by the Governor.                                                                         
                                                                                                                                
CHAIRMAN  KOTT asked  Mr.  Grossi  to define  the  make-up of  the                                                              
board.                                                                                                                          
                                                                                                                                
MR. GROSSI  clarified that any given  panel that makes  a decision                                                              
on a case consists of a labor member  and an industry-seat member.                                                              
He said, "It can be the commissioner  of [the Department of] Labor                                                              
or  his designee."   The  designee is  an employee  of the  state,                                                              
often an  attorney or  someone trained  in workers'  compensation.                                                              
The entire board makes decisions  on workers' compensation claims.                                                              
The  determination  on  a  case  would  be  whether  the  employee                                                              
statutorily has a  right to a benefit or whether  the employer has                                                              
the right to stop a benefit.  In  answer to further questions from                                                              
the committee,  he said it is  a "pre-court" decision.   The board                                                              
has a fact-finding role and makes  determinations of law.  That is                                                              
usually where it  ends, but a percentage of cases  are appealed to                                                              
the courts.                                                                                                                     
                                                                                                                                
Number 0599                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  indicated  he  can  live  with  "medical                                                              
stability"  but  doesn't  think  it  should go  to  the  board  to                                                              
adjudicate medical stability.                                                                                                   
                                                                                                                                
MR. GROSSI explained that the determinations  of medical stability                                                              
and  permanent  impairment  are always  provided  by  a  physician                                                              
because  they  are  medical  determinations.     With  respect  to                                                              
retraining eligibility, it is a combination  of medical issues and                                                              
a determination made by a rehabilitation specialist.                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG  referred   to  Mr.  Kalamarides'  letter                                                              
[dated  April  3, 2000]  in  which  he  states  that there  is  an                                                              
automatic lump-sum  payment if  there is a  waiver now.   He asked                                                              
Mr.  Jensen if  a worker  would  have to  go  to the  board for  a                                                              
determination.                                                                                                                  
                                                                                                                                
MR. JENSEN  responded, "You  don't if the  doctors all  agree that                                                              
you don't need  retraining - if you don't need  retraining or even                                                              
if the doctors agree that you do  need retraining, but because the                                                              
way the statute  was written, you  can still be denied  rehab even                                                              
if  you can't  return  back  to your  regular  job."   Mr.  Jensen                                                              
pointed  out  that two  supreme  court  decisions have  asked  the                                                              
legislature to  correct this, but it  has not happened yet.   If a                                                              
person is  denied retraining,  and if  he/she is medically  stable                                                              
and rated,  then that  person is  automatically paid the  lump-sum                                                              
benefits.                                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG said, "Unless you go into a plan."                                                                      
                                                                                                                                
MR.  JENSEN responded  that  a person  would  not go  into a  plan                                                              
unless he/she were found entitled to retraining benefits.                                                                       
                                                                                                                                
REPRESENTATIVE   ROKEBERG  asked   what  entitles   a  person   to                                                              
retraining benefits.                                                                                                            
                                                                                                                                
MR. JENSEN  indicated a  person first  needs to  be found  to have                                                              
requested retraining  within 90 days of the injury  or disability.                                                              
Then the person has to be declared  eligible, which occurs after a                                                              
physician determines that the person  cannot do his or her regular                                                              
job or  a job that has  been done in the  last ten years.   Once a                                                              
person  is eligible,  the  rehabilitation  administrator writes  a                                                              
letter indicating a  counselor needs to be chosen  within ten days                                                              
in order to  prepare a plan.   A counselor is chosen  and needs to                                                              
then be approved  by the rehabilitation counselor.   The counselor                                                              
has 90 days to  prepare the plan.  After the plan  is prepared and                                                              
approved by the  rehabilitation counselor, either  side can appeal                                                              
the plan to  the board.  This  process can be very long  and drawn                                                              
out if  the employee  or the insurer  raises objections  along the                                                              
line.                                                                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked whether, anywhere along  that line,                                                              
it would be appropriate to make a  cut-off and allow the waiver to                                                              
occur.                                                                                                                          
                                                                                                                                
MR. JENSEN restated  that he does not think the  current system is                                                              
broken  or needs  to  be fixed.    He said  he  supposes that  the                                                              
appropriate time would  be, at a minimum, when  the injured worker                                                              
is determined stable and it is decided  whether he/she will suffer                                                              
a permanent impairment.                                                                                                         
                                                                                                                                
REPRESENTATIVE  ROKEBERG inquired  whether  the person  has to  be                                                              
found eligible for retraining.                                                                                                  
                                                                                                                                
MR. JENSEN  said yes.   The current problem  is that a  doctor can                                                              
say a  person is  stable, but not  all doctors  do ratings.   Many                                                              
injured  workers  cannot afford  to  obtain  the ratings,  so  the                                                              
injured worker may  wait months to get the money  or find a doctor                                                              
who is willing to do the rating.   There can be a huge gap between                                                              
the date  of stability and  the rating  date, but the  doctor will                                                              
know whether the  injured worker will have a  permanent impairment                                                              
at the time that the doctor pronounces  the injured worker stable.                                                              
Mr. Jensen  observed that  the doctor just  may not do  the rating                                                              
because  of the  cost involved  or  because he/she  does not  feel                                                              
qualified  to do  it.   Mr. Jensen  noted  that at  a minimum  the                                                              
rating  should  be stated  when  the  doctor determines  that  the                                                              
injured  worker is  stable and  predicts that  the injured  worker                                                              
will suffer permanent impairment.                                                                                               
                                                                                                                                
Number 0934                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked if the rating by a  doctor is taken                                                              
care of [in the bill] somewhere.                                                                                                
                                                                                                                                
MR. GROSSI  answered that the rating  is determined either  by the                                                              
treating doctor,  the employer's doctor,  or a board  doctor under                                                              
the proposed law, so there would  at least be more opportunity for                                                              
the rating to occur in an expedited fashion.                                                                                    
                                                                                                                                
MR.  VAN  HEMERT,  in response  to  a  comment  by  Representative                                                              
Rokeberg, clarified  that his  position is  that he would  support                                                              
the inclusion of "any time after  medical stability."  In response                                                              
to a  further question  regarding whether  the eligibility  is for                                                              
retraining, Mr. Van  Hemert said no.  He emphasized  that the base                                                              
rate,  range  two,  is  medical  stability,  and  Mr.  Jensen  had                                                              
indicated that when a point of medical  stability is reached, that                                                              
tells  whether  or  not  the  injured  worker  has  a  partial  or                                                              
permanent impairment.                                                                                                           
                                                                                                                                
Number 1031                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked whether anyone  else wished to testify.  There                                                              
being no response, he closed public testimony.                                                                                  
                                                                                                                                
Number 1060                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  made  a  motion to  adopt  a  conceptual                                                              
amendment [Amendment 1] to Section  7, subsection (r), as follows:                                                              
on page 5, line  26, to delete the words "at any  time" and insert                                                              
the  phrase  "after  medical stability  has  been  determined,  as                                                              
defined  by 'AS  whatever-it-is,  or something  to that  effect.'"                                                              
Representative  Rokeberg  specified  that  the intent  is  to  put                                                              
medical stability in there, however  it can be fitted in.  He then                                                              
suggested,  "...  may  waive  after  medical  stability  has  been                                                              
determined ... under our statute."                                                                                              
                                                                                                                                
Number 1118                                                                                                                     
                                                                                                                                
CHAIRMAN  KOTT called  an  at-ease at  3:35  p.m.   He called  the                                                              
meeting back to order at 3:36 p.m.                                                                                              
                                                                                                                                
REPRESENTATIVE  JAMES  said  she  has  a  feeling  that  what  the                                                              
employee gives  up won't  be represented by  anybody who  has that                                                              
employee's best interests at heart.                                                                                             
                                                                                                                                
CHAIRMAN KOTT asked Mr. Grossi whether he wished to comment.                                                                    
                                                                                                                                
Number 1143                                                                                                                     
                                                                                                                                
MR.  GROSSI said  he  believes that  the  proposed language  talks                                                              
about this waiver being on a form  prescribed by the board.  Those                                                              
various aspects  would have  to be  on that  form, which  would be                                                              
drafted not by the  insurance company but by the  board.  It would                                                              
have to be approved by the board at one of their meetings.                                                                      
                                                                                                                                
REPRESENTATIVE JAMES  said that is  the form but doesn't  say what                                                              
is on the form.  She doesn't know  how much would be preprinted or                                                              
added in.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  CROFT  pointed  out   that  he  hadn't  heard  any                                                              
objection  to   Representative  Rokeberg's  conceptual   amendment                                                              
[Amendment  1] on that,  however.   Although he  doesn't know  how                                                              
easy it  will to draft,  the effort can  be made.   Representative                                                              
Croft  noted that  he  would make  a motion  to  delete Section  7                                                              
afterwards.   He then specified that  he has no objection  to this                                                              
current  amendment, taking  out "at  any time"  and adding  "after                                                              
medical stability,"  however the  drafter believes that  it should                                                              
be done.                                                                                                                        
                                                                                                                                
Number 1216                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  specified  that  the citation  is  [AS]                                                              
23.30.395(21).                                                                                                                  
                                                                                                                                
CHAIRMAN  KOTT restated  conceptual  Amendment 1,  noting that  it                                                              
would delete  the words  "at any  time" and  say something  to the                                                              
effect of "may waive after medical  stability has been determined,                                                              
in  accordance   with  [AS]  23.[30].395(21).     There  being  no                                                              
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
REPRESENTATIVE  CROFT  made a  motion  to  adopt Amendment  2,  to                                                              
delete Section 7 [as amended].                                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG objected.                                                                                               
                                                                                                                                
CHAIRMAN KOTT said he would like  hear from Mr. Grossi to see what                                                              
the net effect  would be.  He asked Representative  Croft to speak                                                              
on it while Mr. Grossi came forward.                                                                                            
                                                                                                                                
REPRESENTATIVE CROFT  explained that there  were two issues.   The                                                              
first and most  fundamental is that he objects  to injured workers                                                              
having to bargain  away substantive rights to  give cost-of-living                                                              
updates to benefits because of inflation.   That is extremely poor                                                              
public policy to do to injured workers.   It ends up eventually in                                                              
a slow whittling  away of all their  rights if it continues  to be                                                              
done this way.   Five, ten or  twelve years from now,  in order to                                                              
get  inflation up  from  $177,000  to whatever  it  would be,  the                                                              
workers need  to get rid of this  or that.  The rights  of injured                                                              
workers end up being the elephant  that gets eaten piece by piece.                                                              
He objects on that  basis and to the extent that  this is the most                                                              
substantial objectionable part of  what was a concession the other                                                              
way.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  CROFT said there  hasn't been sufficient  evidence                                                              
put before  the committee that this  is substantially broken.   He                                                              
wants in  each of  these cases a  final look by  the board.   This                                                              
area of  law has gotten  more and more  complicated, to  the point                                                              
where an  attorney probably is needed  now.  Ideally, it  would be                                                              
simplified, and the board would be  there as a final watch to make                                                              
sure  that  people's  rights  were  protected,  things  were  done                                                              
accurately  and people had  good notice.   A  shift away  from the                                                              
board taking  a look at this  shifts almost into more  lawyers and                                                              
litigation.   This  is the  board's job;  the board  already is  a                                                              
compromise  between  labor  and  business  in that  there  is  one                                                              
representative  of each.   He isn't sure  this section  is broken,                                                              
and it shouldn't be fixed.                                                                                                      
                                                                                                                                
Number 1424                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  remarked that  he believes that  they had                                                              
amended this  section to  take away some  of the biggest  problems                                                              
voiced by a number of people.  Ms.  Linder and Mr. Jensen had both                                                              
agreed it was an improvement, he  said, and there was an agreement                                                              
by the ad hoc  committee.  If it [Section 7]  is removed entirely,                                                              
the bill may  be jeopardized.  The  primary thrust of the  bill is                                                              
to raise benefits  to the workers.  It raises premiums  by as much                                                              
as 8 percent  to the business community  in the state;  that is no                                                              
little concession.   He  agreed with  Representative Croft  on the                                                              
matrix of a decision that there has  to be rationality.  He is not                                                              
sure what the delicate balance is,  but historically the tinkering                                                              
has be  kept to a  minimum.   Notwithstanding a responsibility  to                                                              
the  public to  assert  the rights,  power  and  authority of  the                                                              
legislature, he said this has had  substantial review in the House                                                              
L&C Committee,  and today has been  a good hearing where  the bill                                                              
has been improved.  He would hate  to lose this bill down the road                                                              
because of this, he concluded.                                                                                                  
                                                                                                                                
Number 1502                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES asked Mr. Grossi  to delineate the difference                                                              
between what  exists currently and  this, now that it  is amended.                                                              
There is  an attorney  on this board,  she noted,  and she  is not                                                              
convinced  that that  attorney does  anything else  except to  see                                                              
what side would be more challenged  as to whether it is a balanced                                                              
decision.   One thing  this does  is say, "This  is it."   Provide                                                              
notice to  the people, and  ten days later  it is over,  she said.                                                              
She asked  how that is different  than the current  system besides                                                              
not having to go in front of the board with this issue.                                                                         
                                                                                                                                
Number 1570                                                                                                                     
                                                                                                                                
MR. GROSSI  replied that  not going  before the  board is  the big                                                              
difference.  Once  someone goes before the board  and waives those                                                              
[benefits],  and  the  board  approves   it,  it  is  over.    The                                                              
difference is  this wouldn't require  going through  that process,                                                              
which can be time-consuming and can  involve some litigation.  The                                                              
major difference  is it  can be done  with this relatively  simple                                                              
form; although  it would be on  a board-prescribed form,  it would                                                              
have   to   indicate  the   various   benefits   [being   waived].                                                              
Substantively, the only difference  would be the board's review in                                                              
determining  whether this  would be  in the best  interest  of the                                                              
employee.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GREEN requested clarification  about the numbers of                                                              
people who go before the board now.                                                                                             
                                                                                                                                
MR. GROSSI  restated  that of the  300 people  found eligible  for                                                              
reemployment  benefits,  about 25  complete  [the  program].   The                                                              
percentage that actually go before  the board is relatively small.                                                              
Most people get  their benefits under the formulas  and go back to                                                              
work.  Approximately  28,000 people are  injured a year.   Of that                                                              
number, maybe 1,200 come to the board  for anything; most of those                                                              
issues  are resolved  informally,  and about  300-350 [cases]  are                                                              
actually  decided  by  the  board.   As  far  as  compromises  and                                                              
releases, approximately 600 of those are done a year.                                                                           
                                                                                                                                
REPRESENTATIVE  GREEN  commented  that it  is  still down  in  the                                                              
single-digit as far  as percentage.  He asked if  that would still                                                              
constitute a burden to continue that  way as opposed to having the                                                              
waiver.  Since  this says "may,"  he asked Mr. Grossi if  he feels                                                              
there  will be  a significant  difference  in the  way things  are                                                              
handled.                                                                                                                        
                                                                                                                                
MR.  GROSSI  stated  that  he doesn't  believe  there  will  be  a                                                              
significant  difference.  He  suspects that  the people  who waive                                                              
the  benefit under  the current  law will  be the  ones that  will                                                              
waive it  under the  new law.   It will just  happen in  a simpler                                                              
fashion.   This  is  a prediction.   However,  if  the support  of                                                              
either  management or  labor is  lost,  the chances  of this  bill                                                              
being passed  are probably fairly  negligible.  He  suggested that                                                              
the whole  bill needs  to be looked  at to see  what it does.   It                                                              
does make a lot of important improvements  for injured workers, he                                                              
noted; he  would hate to lose  those.  The windows  of opportunity                                                              
haven't been  numerous over  the last 12  years.  He  is concerned                                                              
they would have to go another 12  years or a period of time before                                                              
they could  again get  to this point  of being  able to  make some                                                              
substantive  changes for  injured workers  and for  those who  are                                                              
affected by  the law.  As far  as doing business the  way they are                                                              
now, they're doing it.                                                                                                          
                                                                                                                                
REPRESENTATIVE  GREEN asked Mr.  Grossi whether  he feels,  as Mr.                                                              
Kalamarides'  letter  says, that  this  section  would provide  an                                                              
opportunity that  isn't there  now for an  injured employee  to be                                                              
taken advantage of.                                                                                                             
                                                                                                                                
MR.  GROSSI said  that  is  hard question.    He doesn't  like  to                                                              
believe that of people.                                                                                                         
                                                                                                                                
REPRESENTATIVE GREEN mentioned being  forced to take a longer time                                                              
than just writing on a form.                                                                                                    
                                                                                                                                
MR. GROSSI said  it could happen.  However, he  suspects that with                                                              
the  amendment where  one waits  until  medical stability  occurs,                                                              
there is  probably less chance of  that happening because  now the                                                              
healing process has occurred.  Those  health problem stressors are                                                              
no longer there.                                                                                                                
                                                                                                                                
Number 1862                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  noted  that  a  provision  in  statutes                                                              
allows the  board to make modifications  of an award.   She asked:                                                              
If someone  finds out that he/she  has signed a waiver  but really                                                              
didn't understand what  the disability was going to  be, could the                                                              
board, on its own, make a retraction for that person?                                                                           
                                                                                                                                
MR. GROSSI said the way this is written,  no, because modification                                                              
occurs of  AS 23.30.130 and  that is taken  away.  In  the current                                                              
law, he doesn't believe modification applies.                                                                                   
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  asked,   "So  we're  eliminating   the                                                              
modification provision?"                                                                                                        
                                                                                                                                
MR. GROSSI  said yes.  It  is also eliminated once  the compromise                                                              
(indisc.), so  one doesn't  have the ability  to modify  under the                                                              
current law either.                                                                                                             
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked:   At no  point,  for no  reason,                                                              
would  the  board   have  the  ability  to  modify   any  workers'                                                              
compensation award?                                                                                                             
                                                                                                                                
MR. GROSSI  said no,  he believes  they could  modify [an  award].                                                              
There would be  that potential if fraud, duress or  those types of                                                              
special situations were to occur.                                                                                               
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  conveyed  her  understanding  that  Mr.                                                              
Grossi was saying those provisions are taken out with this law.                                                                 
                                                                                                                                
MR. GROSSI clarified that modification  is under AS 23.30.130.  He                                                              
indicated   AS  23.30.012,   regarding  agreement,   also  has   a                                                              
provision.                                                                                                                      
                                                                                                                                
Number 1984                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT  quoted in part  from AS 23.30.130(a),  which                                                              
read:                                                                                                                           
                                                                                                                                
Sec. 23.30.130.   Modification of awards.                                                                                       
          (a) Upon its own initiative, or upon the                                                                              
     application of any party in  interest on the ground of a                                                                   
     change in conditions, including,  for the purposes of AS                                                                   
     23.30.175,  a  change  in residence,  or  because  of  a                                                                   
     mistake in its  determination of a fact,  the board may,                                                                   
     before one  year after the date  of the last  payment of                                                                   
     compensation  benefits  under AS  23.30.180,  23.30.185,                                                                   
     23.30.190,  23.30.200, or  23.30.215, whether  or not  a                                                                   
     compensation order  has been issued, or before  one year                                                                   
     after the  rejection of a  claim, review a  compensation                                                                   
     case  under  the  procedure  prescribed  in  respect  of                                                                   
     claims  in AS 23.30.110.  Under AS  23.30.110 the  board                                                                   
     may  issue a  new compensation  order which  terminates,                                                                   
     continues,  reinstates,  increases,   or  decreases  the                                                                   
     compensation, or award compensation.                                                                                       
                                                                                                                                
REPRESENTATIVE  CROFT  commented,  "So  this  says  it  cannot  be                                                              
modified under this anymore."                                                                                                   
                                                                                                                                
MR.  GROSSI referred  to AS  23.30.012,  regarding compromise  and                                                              
release  settlement agreements  relating to  claims, and  restated                                                              
that there is a similar provision in that.                                                                                      
                                                                                                                                
REPRESENTATIVE CROFT  replied, "But  this wouldn't be  the subject                                                              
of a  compromise and  release anymore.   So  that wouldn't  apply,                                                              
right?  This is explicitly outside of any ...."                                                                                 
                                                                                                                                
REPRESENTATIVE JAMES interjected that this is a "done deal."                                                                    
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
REPRESENTATIVE   CROFT  added  that   it  looks  irrevocable   and                                                              
unmodifiable.                                                                                                                   
                                                                                                                                
MR.  GROSS replied,  "Yes,  but  what I'm  saying  is,  if it  was                                                              
settled under a compromise and release, it would be ...."                                                                       
                                                                                                                                
Number 2033                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked whether  anyone  could provide  an                                                              
actual example where a waiver had gone awry.                                                                                    
                                                                                                                                
REPRESENTATIVE CROFT further asked  whether the board had rejected                                                              
a waiver of benefits.                                                                                                           
                                                                                                                                
MR. GROSSI answered:                                                                                                            
                                                                                                                                
     They  deny  compromise  and  releases  ...  for  various                                                                   
     reasons,  and, yes, I'm  sure that  waiver of rehab  has                                                                   
     been subject  -- usually,  most compromise and  releases                                                                   
     do make it before the board.  ... Sometimes they have to                                                                   
     address  certain   issues  to  make  that   happen,  and                                                                   
     sometimes it  has to be  done by way  of a hearing.   In                                                                   
     fact, the majority of them do get approved ultimately.                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES asked whether  the goal  here is to  avoid a                                                              
hearing.                                                                                                                        
                                                                                                                                
MR. GROSSI affirmed  that, saying that is basically  what is going                                                              
on here.                                                                                                                        
                                                                                                                                
Number 2092                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG requested  confirmation  that right  now,                                                              
all of these waivers would have to come before the board.                                                                       
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG conveyed  his understanding from testimony                                                              
that  there  is  a lump-sum  payment  that  is  automatic  if  the                                                              
adjuster  and everybody  agrees to  it,  which doesn't  go to  the                                                              
board.                                                                                                                          
                                                                                                                                
MR. GROSSI  clarified that  the PPI  is always  due in a  lump-sum                                                              
payment unless there is a retraining benefit.                                                                                   
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked whether  it goes  to the  board now                                                              
only if retraining comes into play.                                                                                             
                                                                                                                                
MR. GROSSI answered, "In order to  waive it, yes, ... or waive any                                                              
benefit, for that matter.  It goes to the board."                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG  said the effect of Section  7, subsection                                                              
(r), is  to still  provide for  a lump-sum  benefit but  stops the                                                              
process from having to go to the board to be reviewed.                                                                          
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
Number 2150                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG commented:                                                                                              
                                                                                                                                
     And  we  found  that  the  language  makes  that  waiver                                                                   
     irrevocable.   But we've heard  testimony today -  and I                                                                   
     understand it now  a little better - was that  it can be                                                                   
     like  90 days  or it  can be  a  protracted period,  ...                                                                   
     almost like a  year to get even to the  board sometimes.                                                                   
     And  we also heard  testimony earlier  that this  should                                                                   
     benefit the workers, too, because  they'll get the money                                                                   
     faster.                                                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES responded, "But not nearly as much."                                                                       
                                                                                                                                
REPRESENTATIVE  ROKEBERG  countered, "No,  not  necessarily."   He                                                              
agreed  that  there is  some  confusion  about  it, saying  he  is                                                              
confused himself.                                                                                                               
                                                                                                                                
REPRESENTATIVE GREEN said that is reassuring.                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  continued, saying it is only  if there is                                                              
a vocational  rehabilitation  put in  place where  the stipend  is                                                              
paid out, but that is paid out of  the PPI, up to the $13,300, but                                                              
can actually  go beyond  that, according  to testimony  heard that                                                              
day.                                                                                                                            
                                                                                                                                
MR. GROSSI said under the new law  it would be a percentage of the                                                              
$177,000, which would make those benefits last longer.                                                                          
                                                                                                                                
Number 2203                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG commented  that the more he looks at this,                                                              
the  more confused  he  gets.   He said  he  was trying  to get  a                                                              
benefit to the worker to "cut this  thing off," rather than having                                                              
it  be  protracted.    It keeps  [workers]  from  having  to  hire                                                              
attorneys,  he suggested.   He  asked whether  the employers  hire                                                              
attorneys to go before the board.                                                                                               
                                                                                                                                
MR. GROSSI affirmed that.                                                                                                       
                                                                                                                                
REPRESENTATIVE   JAMES  requested   confirmation  that   no  labor                                                              
representative was available to talk on this.                                                                                   
                                                                                                                                
REPRESENTATIVE  ROKEBERG  replied  that Mr.  Dougherty  was  quite                                                              
clear  in  his  testimony  before   the  House  Labor  &  Commerce                                                              
Committee.                                                                                                                      
                                                                                                                                
MR. GROSSI added that [Mr. Dougherty]  was also co-chair of the ad                                                              
hoc committee, along with Mr. Van Hemert.                                                                                       
                                                                                                                                
Number 2247                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT  restated that Amendment  2 was to delete  Section 7                                                              
in its entirety.   He asked Mr.  Van Hemert whether, if  Section 7                                                              
were deleted from the bill, support would be withdrawn.                                                                         
                                                                                                                                
MR. VAN  HEMERT answered that right  now, probably yes.   Although                                                              
it goes a  little beyond his own  knowledge, in the past  this has                                                              
been an issue.   It eliminates a need to go before  the board, and                                                              
testimony has indicated  it can take up to six months  to do that.                                                              
He  believes  that  nothing  prevents   the  injured  worker  from                                                              
obtaining all of  the benefits under this provision,  and there is                                                              
no  issue of  how  much  of the  benefit  the worker  can  obtain.                                                              
Referring  to   confusion  expressed  about  the   amount  of  the                                                              
benefits, he said  Ms. Linder was referring to how  much in actual                                                              
benefits a  person could  obtain under vocational  rehabilitation,                                                              
yet this  isn't something that the  injured worker would  get in a                                                              
lump sum in exchange for not going to vocational rehabilitation.                                                                
                                                                                                                                
MR. VAN  HEMERT continued.   He said at  some point, one  needs to                                                              
respect the  injured worker's intelligence  level.  He  believes a                                                              
great effort is  being made to protect the injured  worker, and he                                                              
himself has  no problem with that,  but this is a  form prescribed                                                              
by  the board.   If  the information  isn't correctly  documented,                                                              
that person  can go back to the  board because it was  fraud or it                                                              
wasn't  properly   explained,  Mr.   Van  Hemert  asserted.     He                                                              
concluded, "I  would have to  say, at this  point in time,  that I                                                              
think management  would object  and not support  the bill  if this                                                              
was  completely  taken out.    I think  we  made a  compromise  to                                                              
(indisc.)  'after medical  stability,'  and I  think that's  where                                                              
we'd like to leave it."                                                                                                         
                                                                                                                                
CHAIRMAN KOTT noted that there was an objection to Amendment 2.                                                                 
                                                                                                                                
A roll  call vote  was taken.   Voting to  adopt Amendment  2 were                                                              
Representatives Croft, Kerttula and  Kott.  Voting against it were                                                              
Representatives  Murkowski,  Rokeberg and  James.  [Representative                                                              
Green was absent.]  Therefore, Amendment  2 failed by a vote of 3-                                                              
3.                                                                                                                              
                                                                                                                                
Number 2414                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CROFT  made a  motion  to  adopt Amendment  3,  to                                                              
replace  "$177,000"  on page  10,  line 9,  with  "$189,662".   He                                                              
explained  that on page  10, line  9, the  amount of $135,000  had                                                              
been changed  to $177,000; however,  the legislative audit  on the                                                              
Workers' Compensation  Division, on page 43, says  that "the value                                                              
of  the  1988 whole-body  compensation  of  $135,000  would  equal                                                              
$189,662  in today's  dollars."   Representative Croft  emphasized                                                              
the  need to  update for  inflation correctly.   He  added to  the                                                              
amendment,  "I  guess  I'll  combine it,  that  that  number,  the                                                              
reemployment number  of $13,300 and  the funeral number  of $3,300                                                              
be indexed  for inflation."  He  suggested these should  be at the                                                              
appropriate  number  and  then indexed  so  that  the  legislature                                                              
doesn't have to mess with this every five, ten or twenty years.                                                                 
                                                                                                                                
Number 2448                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG objected  to Amendment 3.  He provided the                                                              
following  reasons:    the  committee  had  just  done  away  with                                                              
indexing on another bill; the amendment  is incomplete in terms of                                                              
what index is being  used or how it would be  calculated; there is                                                              
no  footnote showing  the  calculation [in  the  audit], which  he                                                              
suggested is a  "throwaway figure" without support  for the dollar                                                              
figure; the calculation is based  on "the delicate negotiations in                                                              
the ad hoc committee"; and the amendment would kill the bill.                                                                   
                                                                                                                                
TAPE 00-46, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES explained that  she had struggled to say "no"                                                              
on that last amendment because of  testimony that management would                                                              
pull out of it.  Now, if she does  something on [Amendment 3], the                                                              
other  side will  be "out  of balance."   She  announced that  she                                                              
wasn't interested in doing any more amendments.                                                                                 
                                                                                                                                
REPRESENTATIVE CROFT  said that was his last one  anyway.  He then                                                              
emphasized  the need to  look at  these to  see whether  they make                                                              
public policy  sense and,  more importantly,  to see whether  they                                                              
strike the right  balance.  Although it is fine to  have an ad hoc                                                              
group provide a  proposal, he said, it is objectionable  to him to                                                              
have  that  group  insist  upon that  as  the  only  proposal  the                                                              
legislature can look at.  As for  killing the bill, the only thing                                                              
that can  do that is lack  of votes in  the House and Senate.   He                                                              
again emphasized  the  need to approach  this  on its merits,  not                                                              
merely on whether it has the stamp of labor or business.                                                                        
                                                                                                                                
Number 0084                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG, in  response  to a  query from  Chairman                                                              
Kott, affirmed  that  he maintained  his objection.   He said  the                                                              
bill has been amended in the previous  committee and this one, and                                                              
he doesn't buy that argument.                                                                                                   
                                                                                                                                
CHAIRMAN KOTT  pointed out  that as these  bills have  come before                                                              
the legislature in the past, they  have tinkered with them to some                                                              
degree, "but  there have never  been any substantive  changes from                                                              
both the ad hoc committee or the  WCCA group."  He said he had sat                                                              
in on  some of  those meetings.   However, this  bill has  a House                                                              
Finance Committee  referral, and  his own  vote will reflect  [the                                                              
desire  to have  it] go on  to that  committee to  deal with  that                                                              
particular issue.                                                                                                               
                                                                                                                                
A roll  call vote  was taken.   Voting  to adopt  Amendment  3 was                                                              
Representative  Croft.   Voting  against it  were  Representatives                                                              
Kerttula, Rokeberg,  Murkowski and  Kott.  [Representatives  Green                                                              
and James were  not present.]  Therefore, Amendment  3 failed by a                                                              
vote of 4-1.                                                                                                                    
                                                                                                                                
Number 0135                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA offered Amendment  4, to delete Section 20                                                              
of the bill.                                                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES objected.                                                                                                  
                                                                                                                                
CHAIRMAN KOTT  said he couldn't  recall whether earlier  testimony                                                              
had indicated that inclusion of Section  20 would diminish support                                                              
from both sides.                                                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG responded, "In the affirmative."                                                                        
                                                                                                                                
Number 0160                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  replied  that  she believes  that  is  a                                                              
terrible  argument,  but  she doesn't  know,  for  instance,  what                                                              
religious  nonmedical nursing  services  encompasses.   It is  too                                                              
amorphous.  For that reason, she would like to see it deleted.                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG remarked that  testimony of  the director                                                              
of the  Division of  Workers' Compensation  was that they  weren't                                                              
sure what the cost ramifications would be.                                                                                      
                                                                                                                                
REPRESENTATIVE   KERTTULA   acknowledged   that   testimony,   but                                                              
specified that  the argument  she likes is  that she  doesn't know                                                              
what these items  are or what the impact will be.   She feels very                                                              
uncomfortable including [Section 20].                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES affirmed that she maintained her objection.                                                                
                                                                                                                                
A roll  call vote  was taken.   Voting to  adopt Amendment  4 were                                                              
Representatives  Kerttula, Rokeberg, Murkowski  and Kott.   Voting                                                              
against it were Representatives James  and Croft.  [Representative                                                              
Green was absent.]   Therefore, Amendment 4, deleting  Section 20,                                                              
was adopted by a vote of 4-2.                                                                                                   
                                                                                                                                
Number 0261                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG offered conceptual  Amendment 5.   Noting                                                              
that  page  5, line  31,  says  "a  statement  may  be in  a  form                                                              
prescribed  or  approved by  the  board",  he specified  that  the                                                              
amendment would be  to insert, following "board",  the phrase "and                                                              
include a  statement informing the  applicant that it  should seek                                                              
legal counsel before waiver, in a follow-up statement."                                                                         
                                                                                                                                
REPRESENTATIVE  CROFT commented,  "Take out the  board and  put in                                                              
the lawyers."                                                                                                                   
                                                                                                                                
AN  UNIDENTIFIED MEMBER  asked  whether it  would  be "should"  or                                                              
"may."                                                                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG responded, "Should."                                                                                    
                                                                                                                                
Number 0290                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT objected to the motion.                                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG explained  that this had been discussed in                                                              
the House  L&C Committee  by others  too, just as  a form  to make                                                              
sure that people who were waiving [their rights] were notified.                                                                 
                                                                                                                                
CHAIRMAN  KOTT said  he thinks  it  is a  good idea  but he  would                                                              
probably hold the bill over in order to check with a few people.                                                                
                                                                                                                                
REPRESENTATIVE  ROKEBERG responded  that  in that  case, he  would                                                              
just remove the amendment.  [Amendment 5 was thus withdrawn.]                                                                   
                                                                                                                                
Number 0325                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  made a motion  to move CSHB  419(L&C), as                                                              
amended, from  the committee  with individual recommendations  and                                                              
the  attached  fiscal  notes.   There  being  no  objection,  CSHB
419(JUD) moved from the House Judiciary Standing Committee.                                                                     
                                                                                                                                
CHAIRMAN  KOTT indicated  he was  adjourning the  meeting at  4:15                                                              
p.m.  but called  the  meeting back  to  order almost  immediately                                                              
thereafter in order to take up another bill.                                                                                    
                                                                                                                                
HB 58 - OIL & GAS AUDITS                                                                                                      
                                                                                                                                
CHAIRMAN KOTT announced that the  final order of business would be                                                              
HOUSE BILL  NO. 58, "An Act  relating to certain  audits regarding                                                              
oil and gas royalty and net profits  and to audits regarding costs                                                              
relating  to  exploration  incentive   credits  and  oil  and  gas                                                              
exploration licenses; and providing for an effective date."                                                                     
                                                                                                                                
Number 0342                                                                                                                     
                                                                                                                                
CAROL  CARROLL,  Director,  Central Office,  Division  of  Support                                                              
Services,  Department  of  Natural   Resources,  came  forward  to                                                              
explain  HB  58.    She  advised  members  that  the  bill  simply                                                              
transfers  some  oil  and  gas auditors  from  the  Department  of                                                              
Revenue  back  to  the Department  of  Natural  Resources.    Both                                                              
departments  agree  this should  be  done,  and it  will  increase                                                              
efficiency  and productivity.   She noted  that Mike Barnhill  was                                                              
present from the Department of Law to answer legal questions.                                                                   
                                                                                                                                
[End of tape 00-46; no testimony is missing.]                                                                                   
                                                                                                                                
TAPE 00-47, SIDE A                                                                                                              
                                                                                                                                
REPRESENTATIVE KERTTULA asked if  the written amendment in packets                                                              
was necessary to change the title.  That amendment read:                                                                        
                                                                                                                                
     Change title by adding the underlined                                                                                      
                                                                                                                                
     An Act relating to certain audits  regarding oil and gas                                                                   
     royalty and  net profits and  to audits regarding  costs                                                                   
     relating  to exploration incentive  credits and  oil and                                                                   
     gas   exploration   licenses;   repealing   the   notice                                                                 
     requirement for  the issuance of final  written findings                                                                 
     regarding  sale, lease,  or disposal  of an interest  in                                                                 
     state land  or resources for  oil and gas subject  to AS                                                                 
     38.05.180(b); and providing for an effective date.                                                                       
                                                                                                                                
     Add to page 4 line 28 the underlined                                                                                       
                                                                                                                                
     Sec.     7.      AS     38.05.036(d),      38.05.036(e),                                                                   
     38.05.945(a)(3)(B), and AS 43.05.010(15) are repealed.                                                                   
                                                                                                                                
MS. CARROLL answered that it is an  amendment from the department,                                                              
but she  didn't necessarily believe  it had to be  adopted because                                                              
HB 259,  which is  in this committee,  does the  same thing.   She                                                              
then advised members that since [HB  58] was introduced last year,                                                              
it has an  effective date of  1999 that, if the  committee wishes,                                                              
should be changed to 2000.                                                                                                      
                                                                                                                                
CHAIRMAN KOTT  noted that  his staff had  pointed that out  to him                                                              
earlier.    [It  was then  indicated  that  a  proposed  committee                                                              
substitute (CS)  had already been requested regarding  the updated                                                              
effective date.]                                                                                                                
                                                                                                                                
Number 0167                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  made  a  motion  to move  HB  58  from  the                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal note.   There  being no  objection, it  was so ordered  and                                                              
[because of the  technical amendment changing the  effective date]                                                              
CSHB  58(JUD)   was  moved  from  the  House   Judiciary  Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Judiciary Standing Committee meeting was adjourned at 4:20 p.m.                                                                 

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