03/22/2002 09:38 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 299                                                                                                        
     "An  Act  relating  to  the  establishment   of  an  additional                                                            
     southcentral  panel to the Alaska  Workers' Compensation  Board                                                            
     and  to  appointments  to  that panel;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
DEBORAH GRUNDMANN, Staff  to Senator Ben Stevens, Chair of the Labor                                                            
and Commerce Committee,  testified this legislation  would amend the                                                            
Workers'  Compensation Act  to provide for  an additional panel  for                                                            
the Alaska Workers' Compensation  Board in the "southcentral venue".                                                            
She referenced a map of the affected area [copy on file.]                                                                       
                                                                                                                                
Ms. Grundmann  stated this  legislation is  necessary to allow  more                                                            
hearings to occur in that  area of the state and subsequently reduce                                                            
the  "lag time"  between the  date  a worker  files a  claim, and  a                                                            
hearing date.  She noted it would  also relieve a growing  caseload.                                                            
                                                                                                                                
Senator  Leman  asked  if these  hearing  panels  function  for  the                                                            
duration of one  hearing then disband, or whether  they are standing                                                            
committees that address multiple cases.                                                                                         
                                                                                                                                
PAUL   GROSSI,  Director,   Division   of   Workers'  Compensation,                                                             
Department of Labor and  Workforce Development, explained the panels                                                            
are comprised  of  members of the  Workers'  Compensation Board.  He                                                            
detailed how  the members are appointed  by the Governor,  confirmed                                                            
by the Legislature and serve a term of office.                                                                                  
                                                                                                                                
Senator Olson  asked how this legislation would benefit  the "common                                                            
worker", aside from timely resolution of claims.                                                                                
                                                                                                                                
Mr. Grossi  answered  the worker  benefits from  decisions  rendered                                                            
sooner.   He   noted  this   also   benefits   employers   in   that                                                            
administrative  and  legal  expenses  are incurred  over  a  shorter                                                            
period  of time and  additionally  benefits the  Department in  that                                                            
fewer resources  are necessary. He explained this  legislation would                                                            
impact the disputed cases.                                                                                                      
                                                                                                                                
Senator  Olson spoke  to the high  cost of  workers compensation  to                                                            
employers.  He asked if  small businesses  and small municipalities                                                             
would be adversely impacted financially by this legislation.                                                                    
                                                                                                                                
Mr. Grossi  replied  this legislation  would have  no impact  on the                                                            
panel.  He stated that  if the time  lag were  reduced, the  overall                                                            
costs would be somewhat reduced as well.                                                                                        
                                                                                                                                
AT EASE 10:00 AM / 10:25 AM                                                                                                     
                                                                                                                                
Amendment  #1  as AMENDED:  This  amended  amendment  deletes  "take                                                            
effect"  and  inserts "be  made"  and  deletes  "July 1,  2002"  and                                                            
inserts "January  1, 2003" on page  2, line 6. The amended  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
          TERMS AND INITIAL APPOINTMENTS. (a) The governor shall                                                                
     expeditiously    make   initial   appointments   to   the   new                                                            
     southcentral  panel of the Alaska Workers' Compensation  Board,                                                            
     authorized  by sec. 1 of this Act. The appointments  made under                                                            
      this subsection may not be made before January 1, 2003.                                                                   
                                                                                                                                
This amendment also deletes  Sections 3 and 4, relating to effective                                                            
dates, on page 2, lines  14 and 15 and inserts a new bill section to                                                            
read as follows.                                                                                                                
                                                                                                                                
          Sec. 3. This Act takes effect January 1, 2003.                                                                        
                                                                                                                                
Senator Leman  offered a friendly amendment the original  amendment,                                                            
which did not include "take"  in language to be deleted from page 2,                                                            
line 6. He moved for adoption of the amended amendment.                                                                         
                                                                                                                                
Without objection the amended amendment was ADOPTED.                                                                            
                                                                                                                                
Senator  Wilken  spoke  as  a  business  operator,   stressing  that                                                            
workers' compensation  is one of the  most expensive aspects  of his                                                            
business.  He  expressed   he  would  do  whatever  he  could  as  a                                                            
legislator to make the  workers' compensation process more efficient                                                            
and less  burdensome, while  also recognizing  that injured  workers                                                            
must be compensated.                                                                                                            
                                                                                                                                
Senator  Green  offered  a motion  to  move  CS  SB 299  (FIN)  from                                                            
Committee with  $5,000 fiscal note from the Department  of Labor and                                                            
Workforce Development.                                                                                                          
                                                                                                                                
The bill MOVED from Committee with no objection.