Legislature(2023 - 2024)BARNES 124

05/13/2024 08:15 AM House LABOR & COMMERCE

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08:23:31 AM Start
08:23:55 AM SB206
08:56:14 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ SB 206 WORKERS' COMP. STAY-AT-WORK PROGRAM TELECONFERENCED
Moved SB 206 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
           SB 206-WORKERS' COMP. STAY-AT-WORK PROGRAM                                                                       
                                                                                                                                
8:23:55 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  RUFFRIDGE announced that  the only order  of business                                                               
would  be SENATE  BILL  NO.  206, "An  Act  relating to  workers'                                                               
compensation  reemployment  benefits;   establishing  a  workers'                                                               
compensation   stay-at-work  program;   and   providing  for   an                                                               
effective date."                                                                                                                
                                                                                                                                
8:24:08 AM                                                                                                                    
                                                                                                                                
SENATOR  ELVI GRAY-JACKSON,  Alaska State  Legislature, as  prime                                                               
sponsor,  presented SB  206.   She shared  the sponsor  statement                                                               
[included in  committee packet], which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
           Workers' Compensation Stay at Work Program                                                                           
     Each  year, countless  workers face  the challenges  of                                                                    
     injuries,  illnesses, or  changes  in their  disability                                                                    
     status,  often leading  to significant  time away  from                                                                    
     work. This not only  affects their livelihoods but also                                                                    
     impacts  the workforce  and  economy  at large.  Senate                                                                    
     Bill 206  (which would  establish The  Stay-at-Work and                                                                    
     Return-to-Work  (SAW/RTW))  Program  seeks  to  restore                                                                    
     Alaska's  once strong  and  healthy workforce.  Through                                                                    
     the  creation of  this program,  an injured  worker may                                                                    
     elect assistance to  return-to-work with their employer                                                                    
     at the time of injury.  The Program is optional and can                                                                    
     be declined by a worker or an employer.                                                                                    
                                                                                                                                
     These  programs  focus  on strategies  that  retain  or                                                                    
     reengage workers  experiencing such changes,  aiming to                                                                    
     swiftly  reintegrate   them  into  the   workforce.  By                                                                    
     providing  necessary  support  and  resources,  SAW/RTW                                                                    
     programs  ensure   that  workers  can   continue  their                                                                    
     careers   despite   new  health   challenges,   thereby                                                                    
     maintaining a robust and resilient workforce.                                                                              
                                                                                                                                
     The goal of the program is  to return the worker to the                                                                    
     same position with  the same employer or  to a modified                                                                    
     position with the  same employer after an  injury or an                                                                    
     occupational  disease   occurs.  Furthermore,  services                                                                    
     provided  as   part  of  the  assistance   program  are                                                                    
     provided  in  lieu  of reemployment  services.  Changes                                                                    
     under this  bill would be  optimized by the  ability of                                                                    
     the   insurer,  rehabilitation   specialist,  and   the                                                                    
     Department  of  Labor   and  Workforce  Development  to                                                                    
     provide   one   another  necessary   information.   For                                                                    
     example,  the  Department  of Labor  shall  advise  the                                                                    
     insurer  and employer  of the  request for  assistance.                                                                    
     The  services  offered  as  part  of  the  Program  are                                                                    
     available  as  a  service apart  from  a  determination                                                                    
     regarding indemnity benefits.                                                                                              
                                                                                                                                
     Across  the  United  States,  states  like  Oregon  and                                                                    
     Montana, have made  significant strides in implementing                                                                    
     SAW/RTW initiatives.  These programs  have demonstrated                                                                    
     success in reducing the time  employees spend away from                                                                    
     work   due  to   disabilities  or   injuries,  offering                                                                    
     financial   incentives,   and  facilitating   necessary                                                                    
     workplace   adjustments.   The  adoption   of   similar                                                                    
     legislation  in Alaska  promises substantial  benefits.                                                                    
     It can enhance our  state's workforce stability, reduce                                                                    
     the economic impact of  prolonged employee absence, and                                                                    
     promote   a   more   inclusive  and   supportive   work                                                                    
     environment.  By passing  this legislation,  Alaska can                                                                    
     join other  states in  leading the  way towards  a more                                                                    
     adaptable   and    supportive   workforce,   ultimately                                                                    
     benefiting  both our  economy  and the  well- being  of                                                                    
     Alaskan workers.                                                                                                           
                                                                                                                                
8:29:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  asked  for  examples  of  the  types  of                                                               
injuries that  someone might have while  utilizing the return-to-                                                               
work program.                                                                                                                   
                                                                                                                                
SENATOR GRAY-JACKSON deferred the question to Stacy Niwa.                                                                       
                                                                                                                                
8:30:36 AM                                                                                                                    
                                                                                                                                
STACY  NIWA,  Reemployment  Benefits Administrator,  Division  of                                                               
Workers   Compensation,   Department   of   Labor   &   Workforce                                                               
Development  (DLWD),   shared  a   hypothetical  example   of  an                                                               
individual  working in  construction  who injures  their back  to                                                               
exemplify how  a return-to-work  program would  work in  the real                                                               
world.   She explained that  the program would likely  begin with                                                               
modified work duties,  often at a lighter load  than their normal                                                               
work duties.                                                                                                                    
                                                                                                                                
8:31:46 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease from 8:31 a.m.                                                                               
                                                                                                                                
[Vice  Chair   Ruffridge  passed  the  gavel   to  Representative                                                               
Wright.]                                                                                                                        
                                                                                                                                
8:32:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  asked whether there is  a requirement for                                                               
a  worker  who is  eligible  for  the return-to-work  program  to                                                               
utilize  such  a  program  rather  than  taking  advantage  of  a                                                               
worker's compensation program.                                                                                                  
                                                                                                                                
SENATOR  GRAY-JACKSON said  it's  voluntary  for workers  utilize                                                               
either program.                                                                                                                 
                                                                                                                                
8:33:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  expressed  uncertainty as  to  codifying  a                                                               
return-to-work program in Alaska Statutes.                                                                                      
                                                                                                                                
SENATOR GRAY-JACKSON explained  that the motivation of  SB 206 is                                                               
to help ease the labor shortage being experienced in Alaska.                                                                    
                                                                                                                                
8:35:07 AM                                                                                                                    
                                                                                                                                
LUMA  DIAZ,  Staff,  Senator   Elvi  Gray-Jackson,  Alaska  State                                                               
Legislature, on  behalf of  Senator Gray-Jackson,  prime sponsor,                                                               
explained  that  SB 206  would  add  a vocational  rehabilitation                                                               
council  physician to  the Division  of Worker's  Compensation in                                                               
order to ease the workload on the DWC.                                                                                          
                                                                                                                                
MS. NIWA  added that SB 206  is meant for workers  in all sectors                                                               
of labor  and explained  that having  someone who  specialized in                                                               
worker's compensation  and disability be  a part of  the division                                                               
is imperative to  return an injured worker to the  job as soon as                                                               
possible.                                                                                                                       
                                                                                                                                
8:37:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  expressed  further uncertainty  as  to  the                                                               
possible benefits of SB 206.                                                                                                    
                                                                                                                                
MS. DIAZ reassured Representative  Prax that the position created                                                               
by the bill  would provide more clear  communication with workers                                                               
and employers with  regard to worker's compensation  and a would-                                                               
be return-to-work program.                                                                                                      
                                                                                                                                
8:40:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT  shared his  understanding that  the intent                                                               
of SB 206 is to provide more transparency within the division.                                                                  
                                                                                                                                
MS.  NIWA said  that the  proposed program  would help  return an                                                               
injured worker  to work in a  much more efficient manner  than is                                                               
currently available.                                                                                                            
                                                                                                                                
8:41:49 A4M                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CARRICK asked  whether the  division has  a cost-                                                               
benefit analysis of the new position.                                                                                           
                                                                                                                                
MS. NIWA offered to follow up with the requested information.                                                                   
                                                                                                                                
REPRESENTATIVE  CARRICK  asked  how  many  other  states  utilize                                                               
worker's compensation programs similar to  the one proposed in SB
206.                                                                                                                            
                                                                                                                                
8:43:32 AM                                                                                                                    
                                                                                                                                
SENATOR GRAY-JACKSON said Oregon and  Montana are two examples of                                                               
states  that have  programs similar  to the  one proposed  in the                                                               
bill.   She touched  on Representative  Prax's comment  that some                                                               
workers might prefer  to be on worker's  compensation rather than                                                               
working and  noted that the division  is the only agency  for the                                                               
State of Alaska  that deals with worker's  compensation issues in                                                               
the State.                                                                                                                      
                                                                                                                                
8:44:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  asked whether  workers  who  choose not  to                                                               
participate in the program would be penalized.                                                                                  
                                                                                                                                
SENATOR  GRAY-JACKSON  said  they  would  not  be  penalized  and                                                               
emphasized that it  is a decision to be made  by the employee and                                                               
employer, not the State.                                                                                                        
                                                                                                                                
8:45:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT opened  public testimony on SB  206.  After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
8:45:46 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease from 8:45 a.m.                                                                               
                                                                                                                                
8:55:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT  moved to  report SB  206 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  SB 206 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    

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