05/13/2024 08:15 AM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB206 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 206 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
May 13, 2024
8:23 a.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Stanley Wright
Representative Ashley Carrick
Representative Zack Fields
MEMBERS ABSENT
Representative Dan Saddler
COMMITTEE CALENDAR
SENATE BILL NO. 206
"An Act relating to workers' compensation reemployment benefits;
establishing a workers' compensation stay-at-work program; and
providing for an effective date."
- MOVED SB 206 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 206
SHORT TITLE: WORKERS' COMP. STAY-AT-WORK PROGRAM
SPONSOR(s): SENATOR(s) GRAY-JACKSON
01/24/24 (S) READ THE FIRST TIME - REFERRALS
01/24/24 (S) L&C, FIN
02/14/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/14/24 (S) Heard & Held
02/14/24 (S) MINUTE(L&C)
02/21/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/24 (S) Moved SB 206 Out of Committee
02/21/24 (S) MINUTE(L&C)
02/23/24 (S) L&C RPT 3DP 1NR
02/23/24 (S) DP: BJORKMAN, DUNBAR, GRAY-JACKSON
02/23/24 (S) NR: MERRICK
03/20/24 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/20/24 (S) Heard & Held
03/20/24 (S) MINUTE(FIN)
04/24/24 (S) FIN RPT 2DP 4NR
04/24/24 (S) DP: OLSON, KIEHL
04/24/24 (S) NR: STEDMAN, WILSON, MERRICK, BISHOP
04/24/24 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/24/24 (S) Moved SB 206 Out of Committee
04/24/24 (S) MINUTE(FIN)
05/06/24 (S) TRANSMITTED TO (H)
05/06/24 (S) VERSION: SB 206
05/07/24 (H) READ THE FIRST TIME - REFERRALS
05/07/24 (H) L&C, FIN
05/13/24 (H) L&C AT 8:15 AM BARNES 124
WITNESS REGISTER
SENATOR ELVI GRAY-JACKSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented SB 206.
STACY NIWA, Reemployment Benefits Administrator
Division of Workers Compensation
Department of Labor & Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
206.
LUMA DIAZ, Staff
Senator Elvi Gray-Jackson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 206 on behalf of Senator Gray-
Jackson, prime sponsor.
ACTION NARRATIVE
8:23:31 AM
VICE CHAIR RUFFRIDGE called the House Labor and Commerce
Standing Committee meeting to order at 8:23 a.m. Representatives
Carrick, Prax, Wright, and Ruffridge were present at the call to
order. Representatives Fields and Sumner arrived as the meeting
was in progress.
SB 206-WORKERS' COMP. STAY-AT-WORK PROGRAM
8:23:55 AM
VICE CHAIR RUFFRIDGE announced that the only order of business
would be SENATE BILL NO. 206, "An Act relating to workers'
compensation reemployment benefits; establishing a workers'
compensation stay-at-work program; and providing for an
effective date."
8:24:08 AM
SENATOR ELVI GRAY-JACKSON, Alaska State Legislature, as prime
sponsor, presented SB 206. She shared the sponsor statement
[included in committee packet], which read as follows [original
punctuation provided]:
Workers' Compensation Stay at Work Program
Each year, countless workers face the challenges of
injuries, illnesses, or changes in their disability
status, often leading to significant time away from
work. This not only affects their livelihoods but also
impacts the workforce and economy at large. Senate
Bill 206 (which would establish The Stay-at-Work and
Return-to-Work (SAW/RTW)) Program seeks to restore
Alaska's once strong and healthy workforce. Through
the creation of this program, an injured worker may
elect assistance to return-to-work with their employer
at the time of injury. The Program is optional and can
be declined by a worker or an employer.
These programs focus on strategies that retain or
reengage workers experiencing such changes, aiming to
swiftly reintegrate them into the workforce. By
providing necessary support and resources, SAW/RTW
programs ensure that workers can continue their
careers despite new health challenges, thereby
maintaining a robust and resilient workforce.
The goal of the program is to return the worker to the
same position with the same employer or to a modified
position with the same employer after an injury or an
occupational disease occurs. Furthermore, services
provided as part of the assistance program are
provided in lieu of reemployment services. Changes
under this bill would be optimized by the ability of
the insurer, rehabilitation specialist, and the
Department of Labor and Workforce Development to
provide one another necessary information. For
example, the Department of Labor shall advise the
insurer and employer of the request for assistance.
The services offered as part of the Program are
available as a service apart from a determination
regarding indemnity benefits.
Across the United States, states like Oregon and
Montana, have made significant strides in implementing
SAW/RTW initiatives. These programs have demonstrated
success in reducing the time employees spend away from
work due to disabilities or injuries, offering
financial incentives, and facilitating necessary
workplace adjustments. The adoption of similar
legislation in Alaska promises substantial benefits.
It can enhance our state's workforce stability, reduce
the economic impact of prolonged employee absence, and
promote a more inclusive and supportive work
environment. By passing this legislation, Alaska can
join other states in leading the way towards a more
adaptable and supportive workforce, ultimately
benefiting both our economy and the well- being of
Alaskan workers.
8:29:03 AM
REPRESENTATIVE CARRICK asked for examples of the types of
injuries that someone might have while utilizing the return-to-
work program.
SENATOR GRAY-JACKSON deferred the question to Stacy Niwa.
8:30:36 AM
STACY NIWA, Reemployment Benefits Administrator, Division of
Workers Compensation, Department of Labor & Workforce
Development (DLWD), shared a hypothetical example of an
individual working in construction who injures their back to
exemplify how a return-to-work program would work in the real
world. She explained that the program would likely begin with
modified work duties, often at a lighter load than their normal
work duties.
8:31:46 AM
The committee took a brief at-ease from 8:31 a.m.
[Vice Chair Ruffridge passed the gavel to Representative
Wright.]
8:32:16 AM
REPRESENTATIVE CARRICK asked whether there is a requirement for
a worker who is eligible for the return-to-work program to
utilize such a program rather than taking advantage of a
worker's compensation program.
SENATOR GRAY-JACKSON said it's voluntary for workers utilize
either program.
8:33:01 AM
REPRESENTATIVE PRAX expressed uncertainty as to codifying a
return-to-work program in Alaska Statutes.
SENATOR GRAY-JACKSON explained that the motivation of SB 206 is
to help ease the labor shortage being experienced in Alaska.
8:35:07 AM
LUMA DIAZ, Staff, Senator Elvi Gray-Jackson, Alaska State
Legislature, on behalf of Senator Gray-Jackson, prime sponsor,
explained that SB 206 would add a vocational rehabilitation
council physician to the Division of Worker's Compensation in
order to ease the workload on the DWC.
MS. NIWA added that SB 206 is meant for workers in all sectors
of labor and explained that having someone who specialized in
worker's compensation and disability be a part of the division
is imperative to return an injured worker to the job as soon as
possible.
8:37:44 AM
REPRESENTATIVE PRAX expressed further uncertainty as to the
possible benefits of SB 206.
MS. DIAZ reassured Representative Prax that the position created
by the bill would provide more clear communication with workers
and employers with regard to worker's compensation and a would-
be return-to-work program.
8:40:01 AM
REPRESENTATIVE WRIGHT shared his understanding that the intent
of SB 206 is to provide more transparency within the division.
MS. NIWA said that the proposed program would help return an
injured worker to work in a much more efficient manner than is
currently available.
8:41:49 A4M
REPRESENTATIVE CARRICK asked whether the division has a cost-
benefit analysis of the new position.
MS. NIWA offered to follow up with the requested information.
REPRESENTATIVE CARRICK asked how many other states utilize
worker's compensation programs similar to the one proposed in SB
206.
8:43:32 AM
SENATOR GRAY-JACKSON said Oregon and Montana are two examples of
states that have programs similar to the one proposed in the
bill. She touched on Representative Prax's comment that some
workers might prefer to be on worker's compensation rather than
working and noted that the division is the only agency for the
State of Alaska that deals with worker's compensation issues in
the State.
8:44:51 AM
REPRESENTATIVE PRAX asked whether workers who choose not to
participate in the program would be penalized.
SENATOR GRAY-JACKSON said they would not be penalized and
emphasized that it is a decision to be made by the employee and
employer, not the State.
8:45:24 AM
REPRESENTATIVE WRIGHT opened public testimony on SB 206. After
ascertaining that there was no one who wished to testify, he
closed public testimony.
8:45:46 AM
The committee took a brief at-ease from 8:45 a.m.
8:55:47 AM
REPRESENTATIVE WRIGHT moved to report SB 206 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, SB 206 was reported from the
House Labor and Commerce Standing Committee.
8:56:14 AM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
8:56 a.m.
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