04/04/2005 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB192 | |
| SB25 | |
| HB180 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 227 | TELECONFERENCED | |
| + | HB 192 | TELECONFERENCED | |
| *+ | HB 179 | TELECONFERENCED | |
| + | SB 25 | TELECONFERENCED | |
| = | HB 180 | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 4, 2005
3:43 p.m.
MEMBERS PRESENT
Representative Tom Anderson, Chair
Representative Pete Kott
Representative Gabrielle LeDoux
Representative Norman Rokeberg
Representative Harry Crawford
Representative David Guttenberg
MEMBERS ABSENT
Representative Bob Lynn
COMMITTEE CALENDAR
HOUSE BILL NO. 192
"An Act relating to requirements to obtain and maintain a
fisheries business license; relating to security required of
fish processors and primary fish buyers; and providing for an
effective date."
- MOVED HB 192 OUT OF COMMITTEE
SENATE BILL NO. 25
"An Act relating to labeling and identification of genetically
modified fish and fish products."
- MOVED SB 25 OUT OF COMMITTEE
HOUSE BILL NO. 180
"An Act relating to a special deposit for workers' compensation
and employers' liability insurers; relating to assigned risk
pools; relating to workers' compensation insurers; stating the
intent of the legislature, and setting out limitations,
concerning the interpretation, construction, and implementation
of workers' compensation laws; relating to the Alaska Workers'
Compensation Board; establishing a division of workers'
compensation within the Department of Labor and Workforce
Development, assigning certain Alaska Workers' Compensation
Board functions to the division and the department, and
authorizing the board to delegate administrative and enforcement
duties to the division; establishing a Workers' Compensation
Appeals Commission; providing for workers' compensation hearing
officers in workers' compensation proceedings; relating to
workers' compensation medical benefits and to charges for and
payment of fees for the medical benefits; relating to agreements
that discharge workers' compensation liability; relating to
workers' compensation awards; relating to reemployment benefits
and job dislocation benefits; relating to coordination of
workers' compensation and certain disability benefits; relating
to division of workers' compensation records; relating to
release of treatment records; relating to an employer's failure
to insure and keep insured or provide security; providing for
appeals from compensation orders; relating to workers'
compensation proceedings; providing for supreme court
jurisdiction of appeals from the Workers' Compensation Appeals
Commission; providing for a maximum amount for the cost-of-
living adjustment for workers' compensation benefits; relating
to attorney fees; providing for the department to enter into
contracts with nonprofit organizations to provide information
services and legal representation to injured employees;
providing for administrative penalties for employers uninsured
or without adequate security for workers' compensation; relating
to fraudulent acts or false or misleading statements in workers'
compensation and penalties for the acts or statements; providing
for members of a limited liability company to be included as an
employee for purposes of workers' compensation; establishing a
workers' compensation benefits guaranty fund; relating to the
second injury fund; making conforming amendments; providing for
a study and report by the medical services review committee; and
providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 227
"An Act relating to the Alaska Small Loans Act; and providing
for an effective date."
- SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 179
"An Act relating to the wrongful recording of a notice of
pendency of an action relating to title to or right to
possession of real property."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 192
SHORT TITLE: FISHERIES BUSINESS LICENSE; BOND
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
03/02/05 (H) READ THE FIRST TIME - REFERRALS
03/02/05 (H) FSH, L&C, FIN
03/09/05 (H) FSH AT 8:30 AM CAPITOL 124
03/09/05 (H) Heard & Held
03/09/05 (H) MINUTE(FSH)
03/16/05 (H) FSH AT 8:30 AM CAPITOL 124
03/16/05 (H) Scheduled But Not Heard
03/21/05 (H) FSH AT 8:30 AM CAPITOL 124
03/21/05 (H) -- Meeting Canceled --
03/23/05 (H) FSH AT 8:30 AM CAPITOL 124
03/23/05 (H) Moved CSHB 192(FSH) Out of Committee
03/23/05 (H) MINUTE(FSH)
03/29/05 (H) FSH RPT CS(FSH) 4DP 1NR
03/29/05 (H) DP: WILSON, ELKINS, LEDOUX, THOMAS;
03/29/05 (H) NR: SALMON
04/04/05 (H) L&C AT 3:15 PM CAPITOL 17
BILL: SB 25
SHORT TITLE: GENETICALLY MODIFIED FISH
SPONSOR(S): SENATOR(S) ELTON, STEVENS G
01/11/05 (S) PREFILE RELEASED 12/30/04
01/11/05 (S) READ THE FIRST TIME - REFERRALS
01/11/05 (S) L&C, RES
02/01/05 (S) L&C AT 1:30 PM BELTZ 211
02/01/05 (S) -- Meeting Rescheduled to 02/08/05 --
02/08/05 (S) L&C AT 1:30 PM BELTZ 211
02/08/05 (S) Moved SB 25 Out of Committee
02/08/05 (S) MINUTE(L&C)
02/09/05 (S) L&C RPT 4DP 1NR
02/09/05 (S) NR: BUNDE
02/09/05 (S) DP: ELLIS, DAVIS, SEEKINS, STEVENS B
02/23/05 (S) RES AT 3:30 PM BUTROVICH 205
02/23/05 (S) Moved SB 25 Out of Committee
02/23/05 (S) MINUTE(RES)
02/24/05 (S) RES RPT 4DP
02/24/05 (S) DP: WAGONER, DYSON, STEDMAN, ELTON
03/07/05 (S) TRANSMITTED TO (H)
03/07/05 (S) VERSION: SB 25
03/09/05 (H) READ THE FIRST TIME - REFERRALS
03/09/05 (H) FSH, L&C, RES
03/16/05 (H) FSH AT 8:30 AM CAPITOL 124
03/16/05 (H) Moved Out of Committee
03/16/05 (H) MINUTE(FSH)
03/17/05 (H) FSH RPT 5DP
03/17/05 (H) DP: ELKINS, KAPSNER, WILSON, LEDOUX,
THOMAS
04/04/05 (H) L&C AT 3:15 PM CAPITOL 17
BILL: HB 180
SHORT TITLE: WORKERS' COMPENSATION
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
02/25/05 (H) READ THE FIRST TIME - REFERRALS
02/25/05 (H) L&C, JUD, FIN
03/09/05 (H) L&C AT 3:15 PM CAPITOL 17
03/09/05 (H) Heard & Held
03/09/05 (H) MINUTE(L&C)
03/16/05 (H) L&C AT 3:15 PM CAPITOL 17
03/16/05 (H) Scheduled But Not Heard
03/21/05 (H) L&C AT 3:15 PM CAPITOL 17
03/21/05 (H) Scheduled But Not Heard
03/22/05 (H) L&C AT 1:00 PM CAPITOL 17
03/22/05 (H) Heard & Held
03/22/05 (H) MINUTE(L&C)
03/30/05 (H) L&C AT 3:15 PM CAPITOL 17
03/30/05 (H) Heard & Held
03/30/05 (H) MINUTE(L&C)
04/01/05 (H) L&C AT 3:15 PM CAPITOL 17
04/01/05 (H) Heard & Held
04/01/05 (H) MINUTE(L&C)
04/04/05 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
CHUCK HARLAMERT, Juneau Section Chief
Tax Division
Alaska Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Presented HB 192.
GREY MITCHELL, Director
Division of Labor Standards and Safety
Department of Labor & Workforce Development
POSITION STATEMENT: Testified in support of HB 192.
PATRICK SHIER, Acting Deputy Director
Division of Employment Security
Department of Labor and Workforce Development
POSITION STATEMENT: Testified in support of HB 192.
SENATOR KIM ELTON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 25 as sponsor.
JOHN TWOMLEY, Middle School Student
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 25
PAUL LISANKIE, Director
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 180.
LINDA HALL, Director
Division of Insurance
Department of Commerce, Community, & Economic Development
POSITION STATEMENT: Answered questions regarding HB 180.
ACTION NARRATIVE
CHAIR TOM ANDERSON called the House Labor and Commerce Standing
Committee meeting to order at 3:43:55 PM. Representatives
Anderson and Rokeberg were present at the call to order.
Representatives LeDoux, Crawford, Guttenberg, and Kott arrived
as the meeting was in progress.
HB 192-FISHERIES BUSINESS LICENSE; BOND
CHAIR ANDERSON announced that the first order of business would
be HOUSE BILL NO. 192 "An Act relating to requirements to obtain
and maintain a fisheries business license; relating to security
required of fish processors and primary fish buyers; and
providing for an effective date."
3:44:56 PM
CHUCK HARLAMERT, Juneau Section Chief, Tax Division, Alaska
Department of Revenue, said HB 192 makes the licensing for
fisheries business tax more responsive to taxpayer needs,
improves the protections for employees and fishermen, and
requires "more accountability from processors to cover the
obligations that they pay to support the industry." He noted
that Section 1 adds to the existing requirement to pay all taxes
due under Title 43, including a marketing assessment,
contributions for employment security tax, Occupational Safety
and Health Administration fines, and local fisheries taxes. Mr.
Harlamert said Section 2 allows taxpayers to use the same
security for two separate tax years during the bridge period.
Section 3 makes the bonding requirements more responsive to
risks that are evidenced by taxpayer behavior. Under current
law, each processor and buyer is required to present a $10,000
security bond, and under certain conditions, it can be increased
to $100,000. "We found those conditions to be not responsive
enough, and the bill introduces more responsiveness," he told
the committee.
3:47:10 PM
MR. HARLAMERT added that the bill also reduces the
administrative burden for the department to attach the bond for
payment of unpaid employment security taxes. A recent
amendment, he said, adds tenders in as bond beneficiaries.
REPRESENTATIVE ROKEBERG asked if the department has asked
underwriters if they will write bonds for these amounts.
MR. HARLAMERT answered that before the department drafted the
bill, it surveyed 11 bond providers. Bonds are an extension of
credit, he noted, and when the bond level is increased, the
taxpayer will have to come up with extra cash.
3:49:01 PM
REPRESENTATIVE ROKEBERG asked, "Are we raising the initial bond
amount on all processors?"
MR. HARLAMERT said there is no change to existing processors in
the basic bond level or the right to use real property in lieu
of bonds. He said the change is that the requirement for a bond
increase is easier under the proposal, and the right to use real
property is restricted to those processors who don't have a
record of failing to pay fishermen, employees or tenders.
3:49:54 PM
REPRESENTATIVE ROKEBERG asked if the bonds are increased for
those with a history of not paying.
MR. HARLAMERT said if someone has a judgment from a fisherman,
an employee, or a tender in excess of $10,000, the bond will be
increased from the $10,000 level to $50,000 under this bill. He
added that the mere existence of that judgment now triggers the
increase.
3:50:55 PM
REPRESENTATIVE ROKEBERG said currently if the licensee satisfies
the judgment, then he or she won't have to pay the increased
bond.
MR. HARLAMERT said that is exactly how it works. "If they pay
it directly, under current law, they escape the consequence of
having their bond level increase."
REPRESENTATIVE ROKEBERG asked if a more common problem is a
major default or bankruptcy.
MR. HARLAMERT said, yes, "under current law they do simply pay
it directly," escaping the consequence. There is no limit on
the amount of times that can happen, he said.
REPRESENTATIVE ROKEBERG asked if the security bond is for
failure to make wage payments.
3:52:34 PM
MR. HARLAMERT said under current law, the bond covers unpaid
wages, fishermen who weren't paid for their fish, and unpaid
employment security contributions. Now tender operators are
added, he explained.
REPRESENTATIVE ROKEBERG said he doesn't want to add an
additional burden to the beleaguered fishing industry, but
$10,000 sounds like a low amount.
MR. HARLAMERT said the department did not want to punish the
majority of processors who are responsible. Alaska has the
highest bond requirement of all other states, he noted.
REPRESENTATIVE ROKEBERG spoke of an "unfortunate circumstance"
of a fish buying company. "Had they had any kind of negative
track record with a higher bond, or would they have been covered
by this new bill?" he asked.
3:53:49 PM
MR. HARLAMERT said HB 192 would have made a substantial
difference in the amount of funds available to protect employees
and fishermen in that case.
GREY MITCHELL, Director, Division of Labor Standards and Safety,
Department of Labor & Workforce Development, said his department
supports the bill.
3:54:53 PM
REPRESENTATIVE ROKEBERG asked if there are similar bonds
required under other licensed industries.
MR. MITCHELL said general and specialty contractors also have a
bond that can be used to satisfy the costs of labor.
3:56:26 PM
REPRESENTATIVE GUTTENBERG asked if processors are singled out
because of historical problems.
3:56:59 PM
MR. MITCHELL said it was a big problem last year. There were
two or three large processors with significant problems paying
fishermen, employees, and suppliers. He said those are what
caused the state to look at bond and licensing requirements.
3:58:09 PM
PATRICK SHIER, Acting Deputy Director, Division of Employment
Security, Department of Labor and Workforce Development, said he
is also Chief of Unemployment Insurance in the department. He
stated that he supports HB 192.
3:58:48 PM
CHAIR ANDERSON asked if there is any opposition to the bill.
MR. SHIER said he hasn't heard any.
REPRESENTATIVE ROKEBERG said the committee packet contained
little input from the public.
CHAIR ANDERSON said he assumed if there was opposition, the
committee would have heard about it. It already passed out of
the House Special Committee on Fisheries, he noted.
REPRESENTATIVE LEDOUX said she couldn't remember if there was
outside testimony when the fisheries committee heard the bill.
She added that it is based on a couple of "really, really bad"
incidents, so the committee supported it.
4:01:04 PM
REPRESENTATIVE LEDOUX moved to report HB 192 out of committee
with individual recommendations and the accompanying fiscal
notes.
There being no objection, HB 192 moved out of the House Labor
and Commerce Standing Committee.
SB 25-GENETICALLY MODIFIED FISH
CHAIR ANDERSON announced that the next order of business would
be SENATE BILL NO. 25 "An Act relating to labeling and
identification of genetically modified fish and fish products."
SENATOR KIM ELTON, Alaska State Legislature, said the United
Fishermen of Alaska support SB 25, which is called the
Frankenfish bill. It is a product of the Joint Legislative
Salmon Industry Task Force, he noted, where members of the
fishing industries and legislators came together to tackle the
challenges facing the industry. He defined genetically modified
fish as those fish whose genetic structure has been altered at
the molecular level by means not naturally possible. A glow-in-
the-dark aquarium fish has been allowed on the market, but now
there is a pending application for genetically modified farmed
Atlantic salmon. He said it is assumed that many other species
will follow. A United States and Canadian company is creating
genetically modified fish to sell around the world. He said SB
25 is simply consumer notification, which is all the state can
do on this issue. It requires labeling for retail sales, he
concluded.
REPRESENTATIVE ROKEBERG asked about a naval blockade.
SENATOR ELTON said it is a difficult situation for Alaska. In
this arena, all Alaska can do is to try and draw a bright line
between wild, natural fish and industrially farmed fish.
REPRESENTATIVE GUTTENBERG noted that the biotech industry said
it has struck down mandatory labeling in the courts.
4:07:25 PM
SENATOR ELTON said at the federal level there is debate on
labeling regulations, but there have been no problems with
consumer notification on labels at the state level. In Alaska,
farmed fish must be labeled, he added.
JOHN TWOMLEY, Middle School Student, Juneau, said SB 25 is a
good idea because there are unknown concerns about genetically
modified seafood on humans and the environment. Consumers could
be physically at risk, he said, and people will be unable to
avoid that risk. Genetically modified fish will affect Alaska's
economy as well by transmitting diseases to wild salmon. They
may also take over the habitat of wild salmon, he noted. Short
of ending this industry, genetically modified fish should be
labeled, he concluded.
4:11:53 PM
REPRESENTATIVE CRAWFORD moved to report SB 25 out of committee
with individual recommendations and zero fiscal notes.
There being no objection, SB 25 was passed out of the House
Labor and Commerce Standing Committee.
HB 180-WORKERS' COMPENSATION
4:14:37 PM
CHAIR ANDERSON announced that the final order of business would
be HOUSE BILL NO. 180 "An Act relating to a special deposit for
workers' compensation and employers' liability insurers;
relating to assigned risk pools; relating to workers'
compensation insurers; stating the intent of the legislature,
and setting out limitations, concerning the interpretation,
construction, and implementation of workers' compensation laws;
relating to the Alaska Workers' Compensation Board; establishing
a division of workers' compensation within the Department of
Labor and Workforce Development, assigning certain Alaska
Workers' Compensation Board functions to the division and the
department, and authorizing the board to delegate administrative
and enforcement duties to the division; establishing a Workers'
Compensation Appeals Commission; providing for workers'
compensation hearing officers in workers' compensation
proceedings; relating to workers' compensation medical benefits
and to charges for and payment of fees for the medical benefits;
relating to agreements that discharge workers' compensation
liability; relating to workers' compensation awards; relating to
reemployment benefits and job dislocation benefits; relating to
coordination of workers' compensation and certain disability
benefits; relating to division of workers' compensation records;
relating to release of treatment records; relating to an
employer's failure to insure and keep insured or provide
security; providing for appeals from compensation orders;
relating to workers' compensation proceedings; providing for
supreme court jurisdiction of appeals from the Workers'
Compensation Appeals Commission; providing for a maximum amount
for the cost-of-living adjustment for workers' compensation
benefits; relating to attorney fees; providing for the
department to enter into contracts with nonprofit organizations
to provide information services and legal representation to
injured employees; providing for administrative penalties for
employers uninsured or without adequate security for workers'
compensation; relating to fraudulent acts or false or misleading
statements in workers' compensation and penalties for the acts
or statements; providing for members of a limited liability
company to be included as an employee for purposes of workers'
compensation; establishing a workers' compensation benefits
guaranty fund; relating to the second injury fund; making
conforming amendments; providing for a study and report by the
medical services review committee; and providing for an
effective date."
PAUL LISANKIE, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development, said Section 2 of
the bill "is a change of the benefit payments from an insurers
insolvency by requiring instate deposits to back the insurers'
loss reserves." He said the section is designed "to have actual
assets deposited instate so that if we have another untoward
incident like we did with 'Freemont,' where we did have to come
to the legislature last session and ask for a special fix to
bail out the guarantee association, that there would, in any
future insolvency, be these deposits instate that would be
available and would be keyed to the next section, which is
Section 3." He said Section 3 refers to the deposits, which
would be releasable by the Director of the Division of Insurance
to the Alaska Insurance Guarantee Association--the group that
pays the benefits to injured workers whose employers insurance
has "gone under."
4:16:30 PM
REPRESENTATIVE LEDOUX asked to go back to Section 22 as it
relates to Section 2. Section 22 sets up a different guarantee
fund for uninsured employers, she noted, and she said it might
make sense to put the money from the fines into the Alaska
Insurance Guarantee Association. "Then you wouldn't have to set
up another fund and you would avoid the question of what happens
if there wasn't enough in the fund," she said. She asked the
number of these instances and the amount of money.
MR. LISANKIE said he doesn't have a firm number. He said he
believes there were 25 injuries that involved companies that
were not properly insured, but he said he didn't know the
severity of the injuries and what a reasonable reserve might
have been.
LINDA HALL, Director, Division of Insurance, Department of
Commerce, Community, & Economic Development, said the purpose of
the guarantee fund is to protect claimants and policyholders
from insolvency of an insurer. The cost is passed back to
policyholders. There is a situation today "where workers'
compensation policy holders are paying a four percent surcharge
to make up for the insolvent insurers' claims, and to add a
whole other burden to Alaska policy holders could create some
inequities."
REPRESENTATIVE ROKEBERG said if Representative LeDoux understood
the guaranteed fund better, she would understand why it couldn't
be combined with the other fund. It covers all property and
casualty policies in the entire state, he said. "We made a
significant policy change last year by using that fund to
entirely finance the stop gap requirements for the insolvency of
the Freemont situation," he added.
MS. HALL said there were four insolvent workers' compensation
insurers, and the largest was Freemont, who had about $60
million in outstanding claims reserves. She said the assessment
is made annually to insurance companies to put funds into the
guarantee association to ensure that claims are paid.
4:23:08 PM
MS. HALL said the assessments can be passed back to
policyholders. In extreme situations, "we could have a personal
auto policy assessed for a workers' compensation claim, or
whatever it might be." She said her concern is that it gives
employers the idea that they don't need to buy coverage because
their workers are going to be covered someplace else.
REPRESENTATIVE ROKEBERG agreed that it would be a disincentive
to insure, and "you would have socialized state insurance."
REPRESENTATIVE LEDOUX thought there were criminal penalties for
failing to have insurance.
MR. LISANKIE said it can be a criminal offense.
4:25:21 PM
REPRESENTATIVE ROKEBERG asked how the four percent assessment
will work.
MS. HALL said several states require additional deposits for
workers' compensation. It is intended to protect against the
insurers' piece of the assigned risk pool, as well, she said.
She added that the bill has been through the Department of Law
and she is unaware of any legal problems.
4:26:56 PM
REPRESENTATIVE ROKEBERG asked Ms. Hall to explain the impact on
the high-risk pool.
MS. HALL said, "When the premiums collected for the assigned
risk pool are less than the claims paid out, that difference is
a direct assessment on insurance companies. That assessment is
not given back to the policyholder, but is a direct offset to
the profits of an insurance company. When Freemont, who had a
large market share, became insolvent, their share of those
losses was reallocated out among the insurance companies who
were remaining in our marketplace. So in addition to having ...
the highest assigned risk burden given back to insurers, that
added even more to that burden, making our market even less
attractive to insurance companies."
MR. LISANKIE said Section 42 is designed to quickly resolve
disputed benefits and allows a fee of up to $300 to be paid to
an attorney. He noted that currently it is illegal for anyone
to accept an attorney's fee for a workers' compensation matter
unless the board approves the payment first. That stifled
getting basic legal advice, he said.
4:30:16 PM
MR. LISANKIE said Section 42 will allow in statute what is being
done by many people now under the board's regulations.
REPRESENTATIVE ROKEBERG asked if the source of funds is the
actual claim that's paid. Is that where the $300 is coming
from? he asked.
4:31:17 PM
MR. LISANKIE said initially the source of funds is the pocket of
the injured worker who is asking for legal advice. If the
attorney takes the worker on as a client, he or she will be paid
if the case is successful.
4:32:06 PM
MR. LISANKIE said the statute now says no one can pay a fee
unless it is approved by the board in advance, and this would
cut that out, he said.
MR. LISANKIE explained that Section 9 has two parts. "It allows
the Department of Labor and Workforce Development to contract
with a nonprofit organization in order to seek to provide
information and legal assistance to injured workers who are
unable to obtain private council." He said this is an attempt
to address the disputed claims of people who are turned down by
every attorney. He said it would give the department discretion
to seek such a contract on a limited basis to see if it works.
4:35:38 PM
CHAIR ANDERSON noted that Representatives Lynn, Kott, LeDoux,
Rokeberg, and Anderson were present, and Representatives
Crawford and Guttenberg left for a minority caucus.
REPRESENTATIVE ROKEBERG asked about a fiscal note for Section 9.
MR. LISANKIE said it is about $75,000 for the first partial
year, and $50,000 for the fraction of the second year. The
nonprofit would have to have an attorney to actually represent
people, he added. It is designed to get an attorney if one is
not available elsewhere. A worker can get other advice, to some
degree, from the division, he said.
4:37:16 PM
MR. LISANKIE said, "Section 11 would allow injured workers who
are represented by attorneys who are licensed in Alaska to
settle their claims without having review by the Workers'
Compensation Board." The board would then continue to focus
reviews on settlements of workers who are unrepresented by
council, minors, incompetent, and others that need extra
scrutiny to their settlements, he explained.
4:37:56 PM
MR. LISANKIE said people who have licensed attorneys will "be
able to just sign and resolve their disputes."
4:38:17 PM
MR. LISANKIE said Section 7 allows the state to use hearing
officers. Current statute requires that the commissioner is the
chair of each hearing, but the volume of hearings requires the
use of hearing officers, and this has been done for nearly 25
years, he said. Section 7 includes conflict of interest
protections.
4:40:08 PM
CHAIR ANDERSON said that labor interests feel that the hearing
officer being designated by the commissioner lent a bias to the
process. He asked how the panel will be comprised.
MR. LISANKIE said the panels are still comprised of three people
representing labor, management, and the hearing officer. The
bill doesn't change that, he said.
REPRESENTATIVE LEDOUX asked if there are any general regulations
regarding ethics for board members.
4:41:18 PM
MR. LISANKIE said yes but this would give the board the ability
to set its own standards.
REPRESENTATIVE LEDOUX asked if there have been problems.
MR. LISANKIE said two claims, which involved ex-party contacts,
ended up in the supreme court.
4:42:09 PM
REPRESENTATIVE KOTT asked if the commissioner isn't part of the
panel, why does the language say "commissioner".
MR. LISANKIE said he didn't know but perhaps the commissioner
would like to be able to join the panel in some instances. It
hasn't happened in recent memory, he noted.
4:43:58 PM
MR. LISANKIE said there are a number of fulltime hearing
officers, and the department rarely uses contractors.
4:44:15 PM
REPRESENTATIVE LEDOUX asked if the hearing officers are exempt.
MR. LISANKIE said the current hearing officers are represented.
4:45:48 PM
MR. LISANKIE said page 3, Section 2, proposes to cap non-
resident compensation rates to the same rates as Alaska's.
4:48:46 PM
MR. LISANKIE said Section 36 calls for the coordination of
payments between workers' compensation benefits and disability
benefits that are paid under a plan to which the employer has
already contributed. The goal of this section is to make sure
that the employee doesn't get more than regular take-home pay.
He said he erroneously stated in another hearing that it would
offset a private disability benefit, but this is tied only to
the benefits that an employer contributes to, he clarified.
4:51:30 PM
CHAIR ANDERSON said the committee is a third through HB 180.
4:52:08 PM
REPRESENTATIVE ROKEBERG said there are modifications being made
to HB 180, and he would like to see what those are.
CHAIR ANDERSON asked Mr. Lisankie to keep the committee abreast.
[HB 180 was held over.]
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting adjourned at 4:53
PM.
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