Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/14/2024 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB147 | |
| SB206 | |
| SB135 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 147 | TELECONFERENCED | |
| *+ | SB 206 | TELECONFERENCED | |
| *+ | SB 135 | TELECONFERENCED | |
SB 147-REEMPLOYMENT BENEFITS
1:33:47 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
147 "An Act relating to reemployment rights and benefits."
1:34:03 PM
SENATOR JAMES KAUFMAN, District F, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 147. He read gave the following
overview of SB 147:
[Original punctuation provided.]
• SB 147, Reemployment Benefits, seeks to address
some shortcomings in Alaska's Workers'
Compensation system.
• Alaska can be a tough place to work, and injuries
do occur. It is important we as a state help
these injured workers rehabilitate with fair and
predictable compensation. That way, we can keep
more workers in our state.
• But Alaska's current system has not been working.
• In recent years, an average of 140 out of 550
evaluations performed each year were found
eligible for the current systems rehabilitation
plan, yet only an average of 13 workers fully
finished the plan.
• SB 147 improves the workers' compensation system
by fixing unnecessary administrative burdens and
clarifying the role of stakeholders in the
process.
• SB 147 also updates the reemployment plan cost to
adjust for inflation. The amount currently in the
statute was set in the year 2000 and has not been
updated since.
• The primary objective of this legislation is to
ensure that injured workers receive swift and
fair access to indemnity and medical benefits
while also promoting efficient return-to-work
programs.
• By updating the system to better align with
modern realities, we can reduce the economic
burden of workplace injuries and illnesses on
Alaskans, improve employment retention, and get
more Alaskans back to work in our communities.
• Thank you for your consideration.
• My staff is ready go to through the Sectional if
it is the will of the committee
1:36:15 PM
DOMINICK HARNETT, Staff, Senator James Kaufman, Alaska State
Legislature, Juneau, Alaska, read the sectional analysis for SB
147:
[Original punctuation provided.]
Sectional Analysis for SB 147 Bill Version A
"An Act relating to reemployment rights and benefits;
and providing for an effective date."
Section 1: Amends AS 23.30.041(b) to change the
required date of submittal of a report of reemployment
benefits for the previous calendar year. The original
date of May 1st is changed to October 1st.
Section 2:
• Adds language to AS 23.30.041(c) stating that the
administrator may order an eligibility evaluation
if the employee is totally unable to return to
the employee's employment for 90 consecutive days
as a result of the injury. Currently these are
required, without regard for whether an
evaluation is warranted at that time.
• Increases the 90-day mandatory reemployment
evaluation under AS 23.30.041 to 120 days.
Section 3:
• Increases eligibility evaluation time from 30
days to 60 days. This built-in 30-day extension
allows us to remove language granting the
administrator authority to provide a 30-day
extension for the eligibility evaluation, which
removes excessive reviews and extra unnecessary
work for the administrator.
• Also, clarifies a usage of the word "it" by
referring directly to "the hearing."
1:37:48 PM
MR. HARNETT continued with the sectional analysis for SB 147:
[Original punctuation provided.]
Section 4: Adds reference to training and employment
services offered by the Department of Labor and
Workforce Development, highlighting possible use of
cross-departmental collaboration.
Section 5: Makes changes to AS 23.30.041(j)
• A reemployment plan must ensure remunerative
employability (employability for a job in which
an employee will be paid).
• Technical changes are made by changing "of" to
"after" as well as splitting a paragraph into
subsections.
Section 6: Increases the benefit under AS 23.30.041(l)
from $13,300 to $22,150 and allows the department to
adjust the cost limit for inflation through
regulation.
Section 7: Includes changes to AS 39.25.158(b) which
prioritize returning an employee to their former
position rather than focusing on retraining an
employee for another employment opportunity.
Section 8: Ensures that a relevant professional (a
physician) certifies that the employee is able to
perform the tasks assigned in their former position.
Section 9: This section specifies the applicability of
the amendments in sections 7 and 8 to contracts or
collective bargaining agreements that become legally
binding on or after the effective date of these
amendments. This Act is aimed at regulating and
improving the reemployment benefits and rights of
injured employees in the State of Alaska, with a focus
on rehabilitation plans and the responsibilities of
the administrator.
1:39:33 PM
SENATOR DUNBAR asked for additional explanation for the switch
to a physician in Section 8 and asked if other medical
professionals - e.g. a nurse practitioner - would be able to
fill this requirement.
1:40:03 PM
SENATOR KAUFMAN replied that due to the technical nature of this
question, he would defer to Mr. Collins.
1:41:05 PM
CHARLES COLLINS, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development (DOLWD), Juneau,
Alaska, testified by invitation on SB 147. He explained that the
Alaska Worker's Compensation Board has been seeking changes for
many years due to shortfalls in the process that hold injured
workers back from returning to work. He said that the board is
updated often because workers' compensation impacts many people.
He acknowledged that some work in the state is inherently
dangerous, and injured employees may be out of work for an
extended period. He explained that that, under current statute,
if an injured worker is out of work for 90 days, they must/shall
have an evaluation done by a private rehabilitation specialist.
1:42:56 PM
MR. COLLINS reviewed slide 2 (6), depicting a bar graph
detailing the following data for 2019-2022: evaluation
referrals; injured workers found eligible; injured workers
electing job dislocation; injured workers electing plan; plans
approved; and plans completed. He pointed out that in 2022, 498
individuals received evaluation referrals and of these, only 67
were found eligible. He explained that sometimes, the worker is
already back at work and still needs to submit to evaluation -
which is an average cost of $3 thousand for employers. At other
times, the employee is still going through the medical process
and the evaluation is not timely - these employees must still
submit to evaluation. He stated that the intention is to change
the statute so that the evaluation is timely by allowing the
Reemployment Benefits Administrator (RBA) to communicate with
the employee and their physician and make this determination. He
clarified that "timely" could mean an employee is ready for
evaluation anywhere from 60 days to 120 days.
1:46:04 PM
MR. COLLINS referred to the graph and explained that some
employees dislocate and therefore do not complete a program. He
noted that very few employees do complete their approved plan.
He said that one reason for this is that plans are limited to
$13,300 and he emphasized that this is not much money when
considering the cost to train in a new field. He said that this
amount has not been changed for 24 years and SB 147 adjusts this
amount.
1:47:41 PM
MR. COLLINS reviewed slide 3 (10), depicting reemployment totals
from 2020, 2021, and 2022. He brought attention to the
evaluation costs and reiterated that avoiding untimely
evaluations will save employers money. He acknowledged that
there is an increase in retraining costs. However, the outcome
for the state is that these employees are returned to the
workforce. He referred to an unnamed study from the Northeast
that stated that an employee who is out of work for one year has
an 11 percent chance of ever returning to the workforce. He
surmised that many on the committee have dealt with employees
and commented that having gaps in employment lowers employee
marketability.
1:49:21 PM
MR. COLLINS reviewed slide 4 (11):
[Original punctuation provided.]
Reemployment Benefits in Settlements
Impact of settlements on reemployment benefits in 2022
• 47 injured workers exited the reemployment
benefits process through Compromise and Release
agreements during the reemployment benefits
process.
• 62 injured workers had funds designated for
reemployment benefits included in settlements
approved in 2022, increasing reemployment benefit
costs.
• 45 of these injured workers had never been
determined eligible for reemployment
benefits, many had never entered the
reemployment process or had been found not
eligible for reemployment benefits.
• 22 injured workers exited the reemployment
process through a settlement after a
determination of eligibility, significantly
reducing the number of injured workers available
for plan completion.
1:50:42 PM
MR. COLLINS reviewed slide 5 (12):
[Original punctuation provided.]
Rehabilitation Specialists
• 15 Alaska Rehabilitation Specialists accepted 372
referrals for eligibility evaluations; 126
evaluations were referred to 43 specialists out
of state.
• 1 Alaska specialist retired
• For Alaska Based Specialists:
• 306 or 82 percent of the first reports were
submitted within 60 days of the referral.
• 141 or 38 percent of the evaluations were
completed on the first report submission.
• 223 or 60 percent of the evaluations were
completed prior to a suspension letter from
a Reemployment Benefits Administrator
Designee.
• 159 reports did not meet
statutory/regulatory requirements.
• Continued improvements in our process are being
made to ensure work is in compliance with
statutory and regulatory requirements through
suspension letters, discussions, plans of
correction and disqualification from providing
services under AS 23.30.041.
1:52:02 PM
MR. COLLINS answered Senator Dunbar's question regarding medical
practitioners. He said that while he believes that other medical
practitioners would be able to make this determination, he is
not qualified to say with certainty. He offered his
understanding that the statute in question only applies to State
of Alaska employees. He referred additional questions to the
Risk Management department.
1:52:31 PM
SENATOR DUNBAR noted that currently, a benefits administrator or
director of vocational rehabilitation could seek out a medical
opinion from any number of medical providers. He pointed out
that SB 147 removes this and specifies that a physician must
provide this information. He questioned the reasoning behind
this and inquired as to the necessity of Section 8.
1:53:03 PM
MR. COLLINS answered that he is not qualified to answer this
question.
1:53:28 PM
SENATOR DUNBAR asked if anyone else would be able to answer this
question.
1:53:37 PM
CHAIR BJORKMAN invited Stacy Niwa to answer.
1:53:53 PM
STACY NIWA, Reemployment Benefits Administrator, Division of
Workers' Compensation, Department of Labor and Workforce
Development (DOLWD), Anchorage, Alaska, answered that this
section of statute deals directly with state of Alaska employees
and is through Risk Management. She said that currently, the
determination can be made by herself or the Director of the
Division of Vocational Rehabilitation. Both positions have
experience with disability and its impacts (and potential
impacts) on employment. She surmised that the change proposed by
SB 147 would need to be vetted by Risk Management.
1:55:13 PM
SENATOR DUNBAR asked where section 8 originated and commented
that sometimes language that is too specific can be problematic.
He questioned why "physician" wasn't added to the current
language rather than replacing it and pointed out that this
would increase the number of people who could potentially sign
off on something, rather than decreasing it. He questioned
whether the intention was to expand the field of individuals who
can make this determination or if there is some reason to narrow
it to physicians specifically.
1:56:07 PM
SENATOR KAUFMAN replied that his office would look at Section 8
to ensure that this language is on track with the goal of SB
147. He added that amendments would be made if needed.
1:56:38 PM
SENATOR GRAY-JACKSON opined that the language in Section 8 makes
sense, because injured employees need to see a doctor before
they can return to work. Therefore, it makes sense for a
physician to be the one to make the final determination.
1:57:20 PM
SENATOR KAUFMAN expressed appreciation for Senator Gray-
Jackson's comments and pointed out that from the State of
Alaska's perspective, it is risk management - but from the
employee's perspective, it is a health matter and an employment
matter. He surmised that the language in Section 8 was chosen in
an attempt to be careful with how the evaluations are performed.
1:58:10 PM
CHAIR BJORKMAN asked if increasing the timeline from 90 days to
120 days is enough.
1:58:28 PM
MS. NIWA replied yes. She explained that currently, 90 days is
often sufficient. She said that an additional 30 days gives more
room to ensure that the correct decisions are made on behalf of
both employee and employer. She suggested that more than 120
days would go against the intent of the statute to ensure "fast,
fair, and efficient delivery of benefits." She reiterated that
120 days makes sense.
1:59:34 PM
SENATOR GRAY-JACKSON expressed appreciation for SB 147 and for
the work done by the Division of Worker's Compensation.
2:00:08 PM
CHAIR BJORKMAN opened public testimony on SB 147; finding none,
he held public testimony open and held SB 147 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB147 ver A.PDF |
SL&C 2/14/2024 1:30:00 PM |
SB 147 |
| SB147 Sponsor Statement Version A 1.24.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 147 |
| SB147 Sectional Analysis Version A 1.24.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 147 |
| SB147 Fiscal Note-DOLWD-WC-01.04.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 147 |
| SB206 ver A.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 206 |
| SB206 Sponsor Statement.pdf |
SFIN 3/20/2024 9:00:00 AM SL&C 2/14/2024 1:30:00 PM |
SB 206 |
| SB206 Sectional Analysis.pdf |
SFIN 3/20/2024 9:00:00 AM SL&C 2/14/2024 1:30:00 PM |
SB 206 |
| SB206 Fiscal Note-DOLWD-WC-02.09.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 206 |
| SB206 Supporting Document-Stay at Work_Return to Work _ U.S. Dept of Labor.pdf |
SFIN 3/20/2024 9:00:00 AM SL&C 2/14/2024 1:30:00 PM |
SB 206 |
| SB135 ver S.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Sponsor Statement 01.31.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Sectional Anaylsis 01.31.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Fiscal Note-DOR-TRS-01.18.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Fiscal Note-DOR-PFD-01.18.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Public Testimony-Lanet Spence_NAIFA 02.12.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Supporting Documents-AARP Research-Executive Summary 01.25.24.pdf |
SFIN 5/10/2024 9:00:00 AM SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Supporting Documents-AARP Research 01.25.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB135 Supporting Documents-Sponsor Presentation 02.14.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 135 |
| SB147 Presentation 2.14.24.pdf |
SL&C 2/14/2024 1:30:00 PM |
SB 147 |