Legislature(1999 - 2000)

2000-04-13 House Journal

Full Journal pdf

2000-04-13                     House Journal                      Page 3107
HB 419                                                                       
The Finance Committee has considered:                                          
                                                                               
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."                                              
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 419(FIN)                                                
"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;   relating  to  the  liability  of  an  employer  for  workers'          

2000-04-13                     House Journal                      Page 3108
HB 419                                                                       
compensation coverage for a subcontractor; 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 report was signed by Representatives Therriault and Mulder, Co-            
chairs, with the following individual recommendations:                         
                                                                               
Do pass (4):  Mulder, Davies, Williams, Phillips                               
                                                                               
No recommendation (7):  Therriault, Bunde, Austerman, Grussendorf,             
Moses, Davis, Foster                                                           
                                                                               
A Finance Committee letter of intent for CSHB 419(FIN), signed by              
Representatives Therriault and Mulder, Co-chairs, appears below:               
                                                                               
"In adopting Amendment No. 1 to this bill, the legislature is acting to        
clarify the existing statute.  When a contractor employs a subcontractor       
who does not have any employees, certain members of the insurance              
industry are demanding premiums from such contractors.  These                  
demands are not based on any specific statutory authority.  It is the          
intent of the legislature to clearly state that when a subcontractor does      
not have any employees, the contractor who employs that subcontractor          
is not required to purchase workers' compensation insurance for that           
subcontractor.  This legislature believes that the current language in the     
statute is clear and explicitly refers to "employees of the                    
subcontractor."  This legislature believes that this reading of the current    
language  should  be  used  to  resolve  any  current  disputes between        

2000-04-13                     House Journal                      Page 3109
HB 419                                                                       
members of the insurance industry and contractors in the state over            
workers' compensation coverage for subcontractors who do not have              
any employees.  This legislature believes that Amendment No. 1                 
clarifies that the contractor of a subcontractor who has no employees          
is not responsible for providing workers' compensation for that                
subcontractor.  This legislature believes that under the current statutes      
and the proposed amendment, insurance companies have no legal right            
to demand premiums from a contractor who employs a subcontractor               
when that subcontractor does not have any employees."                          
                                                                               
The following fiscal notes apply to CSHB 419(FIN):                             
                                                                               
Fiscal note, Office of the Governor/All Depts., 3/29/00                        
Fiscal note, Dept. of Labor & Workforce Development, 3/29/00                   
Fiscal note, University of Alaska, 3/29/00                                     
                                                                               
HB 419 was referred to the Rules Committee for placement on the                
calendar.