Legislature(1999 - 2000)
04/18/2000 02:04 PM Senate L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
April 18, 2000
2:04 p.m.
MEMBERS PRESENT
Senator Jerry Mackie, Chairman
Senator Tim Kelly, Vice Chairman
Senator Dave Donley
Senator Loren Leman
Senator Lyman Hoffman
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 121(L&C)
"An Act relating to patients' rights under a health care insurance
plan or contract providing coverage for dental care, and
prohibiting certain practices by health care insurers relating to
dental care."
-MOVED OUT OF COMMITTEE
HOUSE BILL NO. 303
"An Act relating to the method of payment of fees and adoption of
regulations under AS 21; relating to orders under AS 21 regarding
risk based capital instructions; relating to accounting standards
for insurance companies; amending the definitions of 'creditable
coverage' and 'late enrollees' in AS 21.54; relating to
requirements for small employer insurers; relating to requirements
for issuance of new voting securities by an insurance company;
requiring health care insurance coverage for reconstructive surgery
following mastectomy; requiring guaranteed renewability of and
certification of coverage regarding certain individual health
insurance policies; and providing for an effective date."
-MOVED SCSHB 303 (L&C) OUT OF COMMITTEE
HOUSE BILL NO. 422
"An Act relating to workers' compensation benefits for injuries
resulting from consumption of alcohol or use of drugs; and
providing for an effective date."
-MOVED SCSHB 422 (L&C) OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
HB 121 - No previous Senate action.
HB 303 - No previous Senate action.
HB 422 - No previous Senate action.
WITNESS REGISTER
Ms. Patty Swenson
Staff to Representative Con Bunde
Alaska State Capitol
Juneau, AK 99802-1182
POSITION STATEMENT: Commented on CSHB 121.
Ms. Katie Campbell
Actuary L/H
Division of Insurance
Department of Community & Economic Development
P.O. Box 110805
Juneau, AK 99811-0805
POSITION STATEMENT: Commented on HB 303.
Mr. Paul Grassi
Director of Division of Workers' Compensation
Department of Labor & Workforce Development
P.O. Box 25512
Juneau, AK 99802-5512
POSITION STATEMENT: Commented on HB 422.
Mr. William Walters
Chief of Adjudications
Division of Workers' Compensation
Department of Labor & Workforce Development
P.O. Box 107019
Anchorage, AK 99510-7019
POSITION STATEMENT: Commented on HB 422.
ACTION NARRATIVE
TAPE 00-16, SIDE A
Number 001
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee
meeting to order at 2:04 p.m. Present were Senators Hoffman,
Leman, T. Kelly, and Mackie. The first order of business to come
before the committee was CS for HB 121.
HB 121-DENTAL CARE INSURANCE
MS. PATTY SWENSON, legislative aide to Representative Con Bunde,
stated CSHB 121(L&C) will allow consumers to choose any dentist
they wish to see including specialists. It will prevent insurers
from reimbursing a covered person at a different rate because of
the person's choice of dentist. CSHB 121(L&C) gives consumers the
right to receive full information regarding their care options
without the fear of adverse actions from insurance companies. The
bill will also allow patients to take civil action against health
care insurers to enforce their rights, and it requires any dental
treatment plan review or utilization review to be conducted by a
dentist.
SENATOR LEMAN suggested letting the drafters know of the technical
change to the bill in Section 1.
SENATOR KELLY asked if dentists are supporting CSHB 121(L&C).
MS. SWENSON answered yes.
SENATOR LEMAN moved CSHB 121(L&C) with individual recommendations
and accompanying fiscal notes. Without objection, the motion
carried.
HB 303-MISC. INSURANCE PROVISIONS
MS. KATIE CAMPBELL, actuarial for the Division of Insurance,
Department of Community & Economic Development, stated HB 303 will
bring Alaska laws into compliance with federal law and it will
update and clarify many of Alaska's health laws.
SENATOR LEMAN moved HB 303 from committee with individual
recommendations and accompanying fiscal notes. Without objection,
the motion carried.
SENATOR LEMAN moved to withdraw his motion for the purpose of a
specific amendment. Without objection, the motion to move HB 303
from committee was withdrawn.
SENATOR LEMAN moved Amendment 1 which reads:
on page 5, line 27, delete the words "and interpret."
Without objection, Amendment 1 was adopted thus creating SCSHB 303
(L&C).
SENATOR LEMAN moved SCSHB 303(L&C) from committee with individual
recommendations and accompanying fiscal notes. Without objection,
the motion carried.
HB 422-WORKERS' COMPENSATION:DRUGS & ALCOHOL
CHAIRMAN MACKIE stated HB 422 was heard at a previous committee
hearing but was held because Senator Donley had concerns about the
proximate cause of injuries that occur on the job.
Number 519
SENATOR DONLEY asked what the outcome would be if a person was
excluded from workers' compensation coverage because of proximate
cause.
MR. PAUL GROSSI, Director of the Division of Workers' Compensation,
Department of Labor & Workforce Development (DOLWD), stated Mr.
Walters will answer Senator Donley's questions.
SENATOR DONLEY asked what the definition of "proximate cause" is in
workers' compensation claims.
MR. WILLIAM WALTERS, Chief of Adjudications for the Division of
Workers' Compensation, DOLWD, stated "proximate cause" is defined
as the substantial cause of an accident.
SENATOR DONLEY asked if, under HB 422, intoxication was a cause of
an injury but the majority of the causation was from other factors,
whether an employee would be excluded from workers' compensation
coverage.
MR. WALTERS stated HB 422 does not change the standard for
intoxication at the workplace.
SENATOR DONLEY stated the standard under present law is
intoxication which is a higher standard than consumption. A person
may have consumed alcohol but not be intoxicated so the alcohol may
not have been a dominant cause. If another person was intoxicated
and alcohol was the major cause of the accident, the person who had
merely consumed alcohol is out of luck. He asked where that
employee turns if kicked out of the workers' compensation system
because of the accident.
CHAIRMAN MACKIE asked whether a person who consumed two beers and,
while on the work premises, was severely injured when a pallet fell
off of a vehicle driving by, would be denied a workers'
compensation claim.
MR. WALTERS replied the person would not lose benefits if it was
proven that the alcohol consumed was not a factor and the person
was not impaired.
CHAIRMAN MACKIE asked if Mr. Walters could think of a scenario in
which a person had consumed alcohol and was involved in an accident
and would be denied workers' compensation.
MR. WALTERS stated any person involved in an accident who was
impaired would be denied workers' compensation.
CHAIRMAN MACKIE stated it would have to be proven that the
impairment from the alcohol was the proximate cause of the
accident.
SENATOR DONLEY stated there can be more than one proximate cause of
an accident. If one of the events or causes involves the
consumption of alcohol, that person is denied workers'
compensation.
CHAIRMAN MACKIE asked if the intent of HB 422 is to give an
employer who has a zero tolerance policy the ability to show that
the consumption of alcohol was the cause of an accident versus
having to prove absolute intoxication of an employee.
MR. WALTERS stated those scenarios are hypothetical. The outcome
would be different if an employer was trying to prove intoxication
versus consumption and which of the two was the proximate cause of
an accident.
SENATOR DONLEY stated that a better standard might be to shift from
intoxication to consumption and that consumption was not the
dominant cause of the injury. After the situation has been
assessed, consumption of alcohol may not be the only factor of
proximate cause. He asked what happens to people who are denied
workers' compensation coverage.
MR. WALTERS stated a situation with many proximate causes, one
being alcohol consumption but not intoxication, should be turned
over to the Superior Court for a ruling on Workers' Compensation.
SENATOR DONLEY stated that would be a good safety valve if it were
part of HB 422. If 51 percent of the proximate cause was a factor
other than the consumption of alcohol, that person could pursue
workers' compensation or damages.
CHAIRMAN MACKIE asked if Mr. Walters could see a potential problem
dealing with HB 422 if it passes.
MR. WALTERS replied if HB 422 passes, it should not affect the
workload.
SENATOR DONLEY moved a conceptual amendment (Amendment 1) as
follows:
on page 2, delete lines 9 and 10 and insert, on line 9, "the
consumption of an alcoholic beverage, injury was not
proximately caused by the intoxication of the injured employee
or".
SENATOR LEMAN objected. The motion carried with Senators Hoffman,
Donley, and T. Kelly voting "Yea," and Senators Leman and Mackie
voting "Nay."
SENATOR LEMAN moved SCSHB 422 (L&C) from committee with individual
recommendations and accompanying fiscal notes. Without objection,
the motion carried.
There being no further business to come before the committee,
CHAIRMAN MACKIE adjourned the meeting at 2:27 p.m.
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