02/26/2002 01:40 PM Senate L&C

            SB 299-WORKERS' COMPENSATION BOARD PANELS                                                                       
                                                                                                                              
CHAIRMAN BEN STEVENS called the Senate  Labor & Commerce Committee                                                            
meeting to  order at 1:40 p.m. and  announced SB 299 to  be up for                                                              
consideration.                                                                                                                  
                                                                                                                                
MS. DEBORAH GRUNDMANN, Staff to Senator Stevens, said:                                                                          
                                                                                                                                
     SB 299 amends  the Workers' Compensation Act  to provide                                                                   
     for  an   additional  panel   of  the  Alaska   Workers'                                                                   
     Compensation  Board in the  Southcentral venue.  This is                                                                   
     needed  to help provide  more hearings  in that area  of                                                                   
     the state  and will address  the need to reduce  the lag                                                                   
     time between  when a worker files a claim  and obtaining                                                                   
     a hearing. It  will also relieve a growing  caseload [In                                                                   
     Anchorage, Mat-Su and Kenai].                                                                                              
                                                                                                                                
MR.  PAUL GROSSI,  Director,  Division of  Workers'  Compensation,                                                              
supported SB  299, which  provides two  additional lay  members to                                                              
the Workers' Compensation  Board in Southcentral where  there is a                                                              
problem with  time lag in  the cases going  to hearing. This  is a                                                              
low cost attempt at resolving the issue.                                                                                        
                                                                                                                                
SENATOR AUSTERMAN asked  if the bill increases the  members by two                                                              
or three.                                                                                                                       
                                                                                                                                
MR.  GROSSI  replied  that  it increases  the  Board  by  two  lay                                                              
members. The panels  consist of an industry seat  member, which is                                                              
a  management seat,  and  a labor  member  (usually  from a  labor                                                              
union) and the Commissioner of Labor  or his designee (employee of                                                              
the state). This is a follow up to  the additional hearing officer                                                              
the legislature gave them last year.  The Board members are paid a                                                              
$50 per day stipend.                                                                                                            
                                                                                                                                
SENATOR TORGERSON asked  if this bill passed, did  he hope to have                                                              
someone nominated this year.                                                                                                    
                                                                                                                                
MR. GROSSI said the bill has an effective date of July 1.                                                                       
                                                                                                                                
SENATOR TORGERSON  pointed out that  section 2 says  immediate for                                                              
the terms  and appointments.  He asked if  they are appointed  and                                                              
serve  at the  pleasure  of  the  governor until  the  legislature                                                              
confirms them.                                                                                                                  
                                                                                                                                
MR. GROSSI answered yes.                                                                                                        
                                                                                                                                
CHAIRMAN STEVENS asked  what the makeup was of  existing panels if                                                              
this section is not in statute now.                                                                                             
                                                                                                                                
MR. GROSSI  explained that  that section was  in the  statute, but                                                              
the only change is to add two more  panel members in Southcentral.                                                              
                                                                                                                                
CHAIRMAN STEVENS asked when was the  last time a panel was added.                                                               
                                                                                                                                
MR. GROSSI answered around the late 80's or early 90's.                                                                         
                                                                                                                                
SENATOR  DAVIS  moved  to  pass  SB  299  out  of  committee  with                                                              
individual recommendations with the attached fiscal note.                                                                       
                                                                                                                                
CHAIRMAN  STEVENS asked  Mr. Grossi  to address  the small  fiscal                                                              
note.                                                                                                                           
                                                                                                                                
MR. GROSSI  replied that  the $5,000 fiscal  note covered  the $50                                                              
per day stipend.  This money comes  out of a fees system,  not the                                                              
general fund. In  2003, the division will be  self-supporting. The                                                              
fund is called Workers' Safety and Compensation Fund.                                                                           
                                                                                                                                
There  were  no  further  objections   and  SB  299  pass  out  of                                                              
committee.