04/01/2014 03:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB214 | |
| HB204 | |
| HB141 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 214 | TELECONFERENCED | |
| + | HB 204 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 1, 2014
3:33 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator Peter Micciche, Vice Chair
Senator Johnny Ellis
MEMBERS ABSENT
Senator Donald Olson
Senator Bert Stedman
COMMITTEE CALENDAR
SENATE BILL NO. 214
"An Act relating to insurance adjuster licensing."
- HEARD & HELD
CS FOR SS FOR HOUSE BILL NO. 204(FIN)
"An Act relating to a product development tax credit for certain
salmon and herring products; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 141
"An Act setting the fee for medical treatment or services
performed outside the state under the Alaska Workers'
Compensation Act, requiring a provider of medical treatment or
services under the Alaska Workers' Compensation Act to submit
bills for treatment or services to employers within 180 days
after the date the treatment or services are rendered, and
limiting the time for appealing an employer's denial or
reduction of a bill; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 214
SHORT TITLE: INSURANCE ADJUSTER LICENSING
SPONSOR(s): LABOR & COMMERCE
03/21/14 (S) READ THE FIRST TIME - REFERRALS
03/21/14 (S) L&C
04/01/14 (S) L&C AT 3:30 PM BELTZ 105 (TSBldg)
BILL: HB 204
SHORT TITLE: SALMON & HERRING PRODUCT DEV'T TAX CREDIT
SPONSOR(s): AUSTERMAN
04/11/13 (H) READ THE FIRST TIME - REFERRALS
04/11/13 (H) FSH, FIN
02/05/14 (H) SPONSOR SUBSTITUTE INTRODUCED
02/05/14 (H) READ THE FIRST TIME - REFERRALS
02/05/14 (H) FSH, FIN
02/06/14 (H) FSH AT 10:00 AM CAPITOL 120
02/06/14 (H) Heard & Held
02/06/14 (H) MINUTE(FSH)
02/13/14 (H) FSH AT 10:00 AM CAPITOL 120
02/13/14 (H) Moved Out of Committee
02/13/14 (H) MINUTE(FSH)
02/14/14 (H) FSH RPT 4DP
02/14/14 (H) DP: FEIGE, KREISS-TOMKINS, OLSON,
SEATON
02/27/14 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/27/14 (H) Heard & Held
02/27/14 (H) MINUTE(FIN)
02/28/14 (H) FIN AT 9:30 AM HOUSE FINANCE 519
02/28/14 (H) Moved CSSSHB 204(FIN) Out of Committee
02/28/14 (H) MINUTE(FIN)
03/03/14 (H) FIN RPT CS(FIN) 7DP 2NR
03/03/14 (H) DP: GUTTENBERG, HOLMES, EDGMON, MUNOZ,
T.WILSON, COSTELLO, AUSTERMAN
03/03/14 (H) NR: NEUMAN, STOLTZE
03/14/14 (H) TRANSMITTED TO (S)
03/14/14 (H) VERSION: CSSSHB 204(FIN)
03/17/14 (S) READ THE FIRST TIME - REFERRALS
03/17/14 (S) L&C
03/26/14 (S) FIN REFERRAL ADDED AFTER L&C
04/01/14 (S) L&C AT 3:30 PM BELTZ 105 (TSBldg)
BILL: HB 141
SHORT TITLE: WORKERS' COMPENSATION MEDICAL FEES
SPONSOR(s): LABOR & COMMERCE
02/25/13 (H) READ THE FIRST TIME - REFERRALS
02/25/13 (H) L&C
01/31/14 (H) L&C AT 3:15 PM BARNES 124
01/31/14 (H) -- MEETING CANCELED --
02/03/14 (H) L&C AT 3:15 PM BARNES 124
02/03/14 (H) Moved Out of Committee
02/03/14 (H) MINUTE(L&C)
02/05/14 (H) L&C RPT 5DP 1NR
02/05/14 (H) DP: MILLETT, HERRON, REINBOLD, SADDLER,
OLSON
02/05/14 (H) NR: JOSEPHSON
02/10/14 (H) TRANSMITTED TO (S)
02/10/14 (H) VERSION: HB 141
02/12/14 (S) READ THE FIRST TIME - REFERRALS
02/12/14 (S) L&C
04/01/14 (S) L&C AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
STEVE RICCI, Aide
Senate Labor & Commerce Committee
POSITION STATEMENT: Introduced SB 214 on behalf of the
committee.
PAUL FASSBENDER, Director
Public Policy and Economic Development
Asurion
Nashville, Tennessee
POSITION STATEMENT: Testified in support of SB 214.
STEPHEN MCDANIEL, Outside Regulatory Counsel
Asurion
POSITION STATEMENT: Provided supporting information for SB 214.
MARTY HESTER, Deputy Director
Division of Insurance
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Commented on SB 214.
ASTRID ROSE, Staff
Representative Alan Austerman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 204 on behalf of the sponsor.
MICHAEL KAZMAC, Tax Auditor
Tax Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 204.
VINCE O'SHEA, Vice President
Pacific Seafood Processors Association (PSPA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 204 and HB 141.
JOE PLESHA, Chief Legal Officer
Trident Seafoods
Seattle, Washington
POSITION STATEMENT: Testified in support of HB 204.
MARK PALMER, President and CEO
Ocean Beauty Seafood, Inc.
Seattle, Washington
POSITION STATEMENT: Testified in support of HB 204.
JOE JACOBSON, Director
Division of Economic Development
Department of Commerce, Community and Economic Development
(DCCED)
POSITION STATEMENT: Delivered a PowerPoint in support of SB 214.
ANNA LATHAM, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 141 on behalf of the sponsor.
SALLIE STUVEK, Human Resources Director
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 141.
ACTION NARRATIVE
3:33:41 PM
CHAIR MIKE DUNLEAVY called the Senate Labor and Commerce
Standing Committee meeting to order at 3:33 p.m. Present at the
call to order were Senators Micciche, Ellis, and Chair Dunleavy.
SB 214-INSURANCE ADJUSTER LICENSING
3:34:12 PM
CHAIR DUNLEAVY announced the consideration of SB 214. "An Act
relating to insurance adjuster licensing." This was the first
hearing.
3:34:28 PM
STEVE RICCI, Aide, Senate Labor & Commerce Committee, introduced
SB 214 on behalf of the committee. He spoke to the following
sponsor statement:
The product that is at the heart of this bill is an
insurance program that protects a consumer's
investment in their wireless communications device by
insuring it against loss, theft, damage, and internal
malfunction of the device. The bill provides for a
claims adjusting structure that efficiently meets the
needs of consumers of this product and maintains the
Division of Insurance's proper regulatory authority.
As wireless devices have become an integral part of
our everyday lives their functionalities have expanded
exponentially and with these developments the cost of
these devices has also risen. Portable electronics
insurance not only ensures that a consumer's
investment in such a device is protected, but also
ensures that a consumer receives quick service by
getting a pre-programmed phone or other portable
electronic device in the consumer's hands often times
the very next day after a claim has been made.
The bill creates a regulatory framework tailored to
portable electronics insurance adjusting in Alaska.
The approach set forth in this important piece of
legislation ensures a balanced regulatory structure
that would avoid the need to license every individual
who takes claims calls from Alaska consumers while
insisting on a supervisory structure of insurance
producers or adjusters to ensure proper oversight.
Because a consumer's device is critical to their
everyday life, it is critical that portable
electronics insurance claims be handled efficiently
and swiftly. Recognizing this, the portable
electronics insurance industry utilizes automated
claims adjudication systems to ensure expedient
resolution to claims to ensure a replacement phone
reaches the consumer as quickly as possible. This
legislation authorizes the use of such a system while
also ensuring that it is developed to comply with
Alaska law governing claims handling.
The bill also amends state law to further clarify how
a nonresident adjuster is licensed in Alaska by
utilizing a designated home state, a concept embraced
by the National Association of Insurance
Commissioners.
This model proposed in this legislation is consistent
with the national trend to the regulation of this
product as it creates an efficient and fair licensing
framework, and gives regulators the authority they
need to effectively oversee these activities.
Legislation similar to this has been enacted into law
in twenty-eight states including Texas, Florida,
Hawaii, Washington, Oregon, and Michigan.
In summary, this is a good bill not only for insurers
offering portable electronics insurance but also for
the consumers of Alaska. The bill creates a regulatory
structure suitable for this product which allows the
Division of Insurance regulatory oversight to ensure
that claims made by Alaska consumers are handled in
the right way.
MR. RICCI advised that a committee substitute was forthcoming
and noted the individuals who were available to answer
questions.
3:36:34 PM
PAUL FASSBENDER, Director, Public Policy and Economic
Development, Asurion, Nashville, Tennessee, stated that his
company provides insurance for portable electronics, primarily
phones. He explained that SB 214 adds to legislation passed last
year that established standards for adjusting portable
electronic insurance claims. It will remove the gray areas in
these claim adjustments and provide stability for operating in a
regulated environment.
3:38:00 PM
STEPHEN MCDANIEL, Outside Regulatory Counsel, Asurion, offered
to answer questions.
CHAIR DUNLEAVY opened public testimony.
3:38:46 PM
SENATOR ELLIS asked the subject of the new language in the
forthcoming CS that Mr. Ricci mentioned.
MR. RICCI explained that the Division of Insurance noticed the
need to make technical changes related to the home state where
adjusters are registered and whether or not the company has a
physical presence in that state. He deferred further explanation
to the Division of Insurance.
SENATOR ELLIS asked if the industry or the Division of Insurance
brought this up.
MR. RICCI replied the industry brought it up and Senator
Dunleavy's office has been working with the Division of
Insurance on the language.
MR. FASSBENDER added that the issue is a consequence of a
virtual marketplace. Insurance adjusters supervise clerical
staffs that take claims nationwide and they apply for
nonresident adjuster licenses in various states. The technical
issue relates to whether the adjuster needs to have a brick and
mortar facility or be a resident of a state in order to claim it
as a home state. When states drafted their insurance laws they
didn't necessarily take into account Asurion's business model.
CHAIR DUNLEAVY asked Mr. Hester to supplement the record
regarding the reason for the technical language change in the
anticipated committee substitute.
3:41:14 PM
MARTY HESTER, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, explained that Alaska is one of the states that requires
a license for this particular type of insurance and a physical
storefront. The language in the forthcoming committee substitute
would allow a company doing virtual claims to operate from the
state that they're currently licensed out of.
3:43:05 PM
CHAIR DUNLEAVY announced he would keep public testimony open and
hold SB 214 in committee for further consideration.
3:43:15 PM
At Ease
HB 204-SALMON & HERRING PRODUCT DEV'T TAX CREDIT
3:44:02 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 204."An Act relating to a product
development tax credit for certain salmon and herring products;
and providing for an effective date." He noted that this was the
first hearing. [CSSSHB 204(FIN) was before the committee.]
3:44:20 PM
ASTRID ROSE, Staff, Representative Alan Austerman, introduced HB
204 on behalf of the sponsor. She spoke to the following sponsor
statement: [Original punctuation provided.]
The Alaska Salmon Product Development Tax Credit has
been in place since 2003 and is widely credited as a
major factor of the increase in commercial value of
Alaska salmon. The ASDTC is currently scheduled to
sunset on December 31st, 2015.
There have been positive trends since this bill was
enacted in 2003. We have seen increased product
diversity, increased state revenues from the fisheries
business tax and increased permit prices.
The current tax credit applies to investment in new
property that meets a requirement for creating a value
added salmon product. House Bill 204 extends the
ability of industry to use this credit until 2020 and
expands the credit for herring value-added processing.
Herring is an established fishery in Alaska and is a
prime candidate to start utilizing more fully. If we
expand out of the roe fishery and into the food
fishery, there are significant economic development
opportunities that will be developed. Up until now,
the herring fishery has been an underutilized fishery
where only about 10 percent of the fish is utilized
and 90 percent has very little value.
Another impending burden to industry is the
Environmental Protection Agency's efforts to force
industry to eliminate seafood discharges containing
solids into near shore waters. Many salmon processing
facilities in Alaska currently grind and pump
discharge. HB 204 would incentivize investment in
equipment that would reduce the waste stream from
salmon and herring processing thereby alleviating the
pressure to comply with these burdensome mandates.
Currently, statute only allows investment in pop-top
cans. HB 204 also provides industry the necessary
flexibility to respond to changing market demands for
can sizes. This bill responds to this limitation by
expanding the credit to any new equipment to herring
and also to produce can sizes other than 14.75 ounces
or 7.5 ounces.
The continued growth of the Alaska seafood market is
vital to increased revenues from our fisheries. House
Bill 204 will further encourage in-state processing
and expand market opportunities to processors. The
extension of the tax credit will continue to spur
economic development opportunities and create quality
Alaska products.
MS. ROSE noted that the packets contain a document that tells
what the Environmental Protection Agency (EPA) is proposing for
processing facilities to comply with the discharge requirements,
letters of support, information on the expenditures and credits
taken for the last three years, and a sheet showing what
equipment is allowed under the salmon product development tax
credit.
3:48:06 PM
MS. ROSE reviewed the major changes in statute.
· The term herring is added in all sections of the bill.
· On page 3, "qualified investment" includes new parts
necessary for or costs associated with converting a canned
salmon line to produce can sizes other than the 14.75 ounce
and 7.5 ounce cans. It also adds freezing, scaling,
grinding meat and bone separation to what already qualifies
for the tax credit.
· On page 4, lines 11-12, say that equipment used to
transport salmon or herring byproduct that is discarded as
waste and unsalable product would now be a qualified
investment.
3:49:57 PM
SENATOR ELLIS directed attention to the list of disqualified
equipment for the tax credit and asked for a definition of "dud
detector."
MS. ROSE deferred the question to the Department of Revenue.
3:51:06 PM
MICHAEL KAZMAC, Tax Auditor, Tax Division, Department of Revenue
(DOR), explained that a dud detector is a device that detects a
defective vacuum seal on a finished can of salmon.
3:51:55 PM
VINCE O'SHEA, Vice President, Pacific Seafood Processors
Association (PSPA), Juneau, Alaska, stated that he was speaking
on behalf of the PSPA members that collectively operates about
18 salmon processing plants in Alaska. He summarized that HB 204
allows processers to take a credit against the fishery business
tax they pay on fish they buy to offset purchases of new
equipment that would add value to products they're making. In
the past the credit has gone to things like fillet machines, ice
makers, and centrifuges to convert fish oil into a product that
could be made into fish capsules. The intention is to expand the
product line from cans to items that generate a greater return.
He noted that he submitted written testimony and it points out
that extending the tax credit for five years would give
stability to the industry and would allow it to take advantage
of new technology and new markets.
3:54:32 PM
JOE PLESHA, Chief Legal Officer, Trident Seafoods, Seattle,
Washington, testified in support of HB 204. He advised that
Alaska is the only state that allows seafood waste to be ground
and discarded, and that may not be allowed once the EPA
concludes the review of its effluent limitation guidelines. The
general belief is that most of the communities in Alaska will
have to screen their waste and then handle it in some manner.
The most obvious use of the waste is to produce some sort of
product and HB 204 is a step in that direction.
3:56:03 PM
MARK PALMER, President and CEO, Ocean Beauty Seafood, Inc.,
Seattle, Washington, testified in support of HB 204. He
discussed the history of the legislation and explained that HB
204 encourages market diversification beyond just two product
forms, which will help right size the markets. He also discussed
the value of extending the development tax credit and expanding
it to herring. To date it has stimulated investment in the
industry and brought revenue to the state.
SENATOR MICCICHE said he supports the bill because of all the
Europeans he's seen adding finishing value to Alaska salmon. He
asked for assurance that this tax credit will be used to employ
more Alaskans in the finishing of Alaskan seafood.
MR. PALMER described the current European market for boneless
sockeye salmon fillets and the expectation that there would be a
market for frozen chum this year both of which have created jobs
in Alaska. He added that there were also opportunities for
machinist positions to operate and maintain this very
sophisticated machinery.
SENATOR MICCICHE asked about the current herring market and if
there was demand for gourmet human food.
MR. PALMER said Ocean Beauty produced a small amount of canned
herring fillets last year and expects to produce more this year.
The target market is food aid programs and the product has been
well received. Ocean Beauty also produces and sells a large
volume of pickled herring and they have customers that are
interested in test marketing that product with Alaska herring on
the label.
SENATOR MICCICHE asked if packaging is limited or wide open.
MR. PALMER replied the packaging options are wide open but the
bill does allow the tax credit to apply to smaller can sizes,
which will help the industry because that's what consumers want.
4:05:28 PM
SENATOR MICCICHE asked if there are options for other markets
like fish meal, animal food, and organic fertilizer.
MR. PALMER said they do oil recovery at the Excursion Inlet
facility that's used for supplements for pet food, but the
refining isn't sophisticated enough for human consumption. He
suggested Mr. Plesha describe Trident's markets.
MR. PLESHA explained that Trident is encapsulating salmon oil
for human consumption, they produce a liquid fertilizer, and
they produce fish meal which is increasingly used as a protein
source.
SENATOR MICCICHE repeated a joke from Clem Tillion and expressed
hope that the bill would help develop some of the products in
this state that for years have largely gone to waste.
4:08:50 PM
ANNA KIM, Chief of Revenue Operations, Tax Division, Department
of Revenue (DOR), introduced herself and offered to answer
questions.
JOE JACOBSON, Director, Division of Economic Development,
Department of Commerce, Community and Economic Development
(DCCED), introduced himself.
4:09:28 PM
At Ease
4:12:29 PM
CHAIR DUNLEAVY reconvened the meeting and invited Mr. Jacobson
to give a presentation.
MR. JACOBSON delivered a PowerPoint in support of HB 204. He
reminded the committee that while Alaska is a huge seafood
state, it only produces only one-third of the global wild salmon
supply. He said that the only way to increase value to Alaska
fishermen is by increasing the value of the product. Recently
there have been strong runs, but production won't always be this
high so investing in value-added products is very important for
the state. He noted that his prior job was international
director with the Alaska Seafood Marketing Institute.
He discussed that a key benefit of the product development tax
credit is product diversity. Just as it's not wise to be
dependent on any one market, it's likewise not wise to be
dependent on any one product form. When the industry was
exclusively headed and gutted and canned salmon, the commodity
was much more susceptible to the whims of the market. By
increasing value in the product and having different products
for different markets worldwide, the Alaskan fisherman is
generally benefitted.
Focusing on underutilized species like herring and the waste
byproduct provides a huge opportunity for the state to take what
may be a problem for the industry and use it to generate
revenue. For canned salmon there's incentive for new production
with smaller size cans.
MR. JACOBSON displayed a graph to illustrate that the price of
canned salmon prices since 2005 has doubled. With few
exceptions, the predominant can sizes are 7.5 ounces and 14.75
ounces, but consumers want smaller sizes. The number of herring
permits has dropped precipitously in recent years so anything
that can be done to stimulate the herring fisheries, especially
in Western Alaska, would be very beneficial. This could be
through food aid or innovation that could generate another
consumer product.
4:16:32 PM
CHAIR DUNLEAVY asked if the issue with herring is that the roe
is going to Japan.
MR. JACOBSON said the market in Japan has softened. Although
it's a traditional product, the younger generations aren't
consuming the same quantities and aren't willing to pay the
prices they used to. Speaking generally, he said that a lot of
production is geared predominantly for roe and those prices have
dropped such that they don't support harvesting the fish just
for roe.
CHAIR DUNLEAVY asked if that was why the number of permit
holders was dropping.
MR. JACOBSON answered yes.
SENATOR MICCICHE asked what the favored gear type is for food-
quality products.
MR. JACOBSON said he wasn't sure.
He continued the presentation explaining that the largest
challenge with the EPA is that non-remote seafood processing
centers will be required to go to a zero discharge on any waste
products. This means they'll need to screen and transfuse the
product into a saleable good or collect the waste and barge it
to an offload site. The costs are dependent on location, but it
could be $0.20 per pound or more and that would come out of the
fisherman's pocket. The waste byproduct opportunities include
fish meal, fish oil, and protein isolates.
He emphasized that key marketing, investing in quality, and the
diversification of products has been a key element of increasing
the value of the industry to the state. Whether it's permit
holders or crew, the participation in Alaska fisheries has
increased significantly in recent years. The difference between
what it costs the state and the revenue generated from the
fisheries business tax clearly demonstrates that there is a good
return on investment.
4:21:23 PM
CHAIR DUNLEAVY held HB 204 in committee for further
consideration. Public testimony was open.
4:21:49 PM
At Ease
HB 141-WORKERS' COMPENSATION MEDICAL FEES
4:22:34 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 141."An Act setting the fee for medical
treatment or services performed outside the state under the
Alaska Workers' Compensation Act, requiring a provider of
medical treatment or services under the Alaska Workers'
Compensation Act to submit bills for treatment or services to
employers within 180 days after the date the treatment or
services are rendered, and limiting the time for appealing an
employer's denial or reduction of a bill; and providing for an
effective date." He noted that this was the [first] hearing.
4:22:52 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State
Legislature, Juneau, Alaska, introduced HB 141 on behalf of the
sponsor. She explained that the bill sets the fee schedule for
workers' compensation claims treated outside Alaska and
establishes billing timelines for medical providers. Providing
some background, she said the state has used a usual, customary,
and reasonable fee schedule for workers' compensation that is
reflective of the costs and geographic area where services are
rendered. Services have been billed at the 90th percentile for
the past ten years. In 2011, the legislature passed House Bill
13, which extended the current fee schedule but what it failed
to do was to set parameters for where the fee schedule could be
used.
She reported that Alaska has the highest workers' compensation
premiums in the nation. The Oregon Department of Business and
Consumer Services conducts a biennial study of workers'
compensation rates that is considered the industry standard. For
the past ten years, Alaska has ranked in either the first or
second place for the highest workers' compensation insurance
premium rates in the nation.
4:24:19 PM
MS. LATHAM provided examples of some discrepancies between the
rates in Alaska and other western states. She directed attention
to the top 25 surgery procedure code fee comparison charts in
the bill packets. It shows that Alaska's costs are substantially
higher that those for Washington, Oregon, and Idaho. She drew
attention to page 40, chart 30, of the report entitled, "Medical
Data Report for the state of Alaska dated September 2013." This
chart ranks the top ten diagnostic codes by total claim
payments. It shows that the average payment in Alaska for
treating a diagnosis of a ruptured disc is $31,177 compared to
$17,049 nationwide. That's 182 percent higher in Alaska.
MS. LATHAM said there is nothing in statute from preventing
workers' compensation claims treated in the Lower 48 from being
billed at Alaska's higher rates. HB 141 changes that. Medical
services treated in-state would still be charged using the UCR
fee schedule that was established in 2011, and medical services
provided outside Alaska could not exceed the charges set by the
statute in the state where the services are rendered. The bill
also establishes billing timelines. It requires a provider to
submit bills within 180 days after the services are rendered and
limits the time for appealing an employer's denial or reduction
of a bill to 60 days. The effective date is immediate and there
is a retroactivity clause that includes transitional language.
The transition language allows medical providers to submit bills
for service within 180 days of the effective date, irrespective
of the date of service, and allows providers to submit an appeal
for denied payment within 60 days of the effective date,
irrespective of the date of the disputed payment. She summarized
that HB 141 sets reasonable time limits to provide certainty for
the employer and the insurer as they budget for the future.
CHAIR DUNLEAVY opened public testimony.
VINCE O'SHEA, Vice President, Pacific Seafood Processors
Association (PSPA), Juneau, Alaska, testified in support of HB
141. He reported that PSPA has over 27,000 workers in seafood
processing plants across the state and the high workers'
compensation rates need to be addressed. This will eliminate the
abuse and unnecessary expenses related to treatment, he said.
4:29:35 PM
SALLIE STUVEK, Human Resources Director, Fairbanks North Star
Borough (FNSB), Fairbanks, Alaska, said she oversees risk
management, which handles workers' compensation for the FNSB and
the FNSB School District (FNSBSD). She reported that the FNSB
spends about $1.1 million on workers' compensation benefits each
year. FNSB continues to see medical costs rising and believes
that the resolution adopted by the workers' compensation board
1301 dated September 27, 2013 is a positive step to address
these costs. The FNSB assembly passed a resolution on February
13, 2014 in support of continuing to pursue this legislation.
SENATOR MICCICHE stated support for the legislation and
commented that it might cut back on medical tourism.
4:31:18 PM
CHAIR DUNLEAVY held HB 141 in committee for further
consideration. Public testimony was open.
4:32:29 PM
There being no further business to come before the committee,
Chair Dunleavy adjourned the Senate Labor and Commerce Committee
meeting at 4:32 p.m.