Legislature(2009 - 2010)HOUSE FINANCE 519

03/22/2010 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 314 WORKERS' COMPENSATION TELECONFERENCED
Moved CSHB 314(FIN) Out of Committee
+ HB 346 WORKERS' COMPENSATION ADVISORY BOARD TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 369 IN-STATE PIPELINE MANAGER/TEAM/COMMITTEE TELECONFERENCED
Heard & Held
HOUSE BILL NO. 346                                                                                                              
                                                                                                                                
"An  Act  establishing  the Workers'  Compensation  Advisory                                                                    
Board; and providing for an effective date."                                                                                    
                                                                                                                                
3:57:30 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  STAFF, REPRESENTATIVE KURT  OLSON, SPONSOR,                                                                    
reported   that  the   Medical  Services   Review  Committee                                                                    
recommended  that  the   Legislature  establish  a  Worker's                                                                    
Compensation  Advisory Council.  The  council would  replace                                                                    
the  Medical Services  Review Committee.  He noted  the word                                                                    
"Board" was changed  to "Council" in the  Labor and Commerce                                                                    
Committee.                                                                                                                      
                                                                                                                                
TRENA HEIKES,  DIRECTOR, DIVISION OF  WORKERS' COMPENSATION,                                                                    
DEPARTMENT OF  LABOR AND  WORKFORCE DEVELOPMENT,  noted that                                                                    
the  council consists  of four  members  each who  represent                                                                    
organized  labor   and  employers  and  three   members  who                                                                    
represent medical  care providers. She remarked  that Alaska                                                                    
is the only state that  allows the medical providers to vote                                                                    
on such matters.                                                                                                                
                                                                                                                                
Representative Austerman  referred to the fiscal  note, FN 1                                                                    
(LWF)  and  asked  if   Medical  Services  Review  Committee                                                                    
members needed to  travel. Ms. Heikes responded  that two of                                                                    
the  members were  from  Ketchikan.  The Department  brought                                                                    
them  up for  monthly and  bi-monthly meetings  from May  to                                                                    
November of last year.                                                                                                          
                                                                                                                                
Representative Austerman  queried Ms.  Heikes about  the $40                                                                    
thousand  expenditure for  travel  in the  fiscal note.  Ms.                                                                    
Heikes explained  that it was for  the Worker's Compensation                                                                    
Advisory Council  members travel  to meetings twice  a year.                                                                    
She  explained that  currently the  Medical Services  Review                                                                    
Committee  travel budget  is  approximately $10-12  thousand                                                                    
and part  of the overall  travel budget for the  Division of                                                                    
Worker's Compensation.                                                                                                          
                                                                                                                                
Representative  Doogan asked  if  the $40  thousand was  the                                                                    
total expenditure for the new  Council. Ms. Heikes affirmed.                                                                    
She added  that the  Medical Services Review  Committee will                                                                    
be abolished and their  approximately $10-12 thousand travel                                                                    
budget will be rolled into the $40 thousand.                                                                                    
                                                                                                                                
Representative  Austerman determined  that the  $40 thousand                                                                    
is an increase in expenditures. Ms. Heikes affirmed.                                                                            
                                                                                                                                
Vice-Chair  Thomas  opined  that  the  fishing  and  tourism                                                                    
industries were not specifically  represented on the Council                                                                    
in the  bill. He also  felt the bill could  allow duplicated                                                                    
union membership in the employer representation language.                                                                       
                                                                                                                                
4:05:08 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  asked  why  there is  more  than  one                                                                    
member from  organized labor since  the majority  of Alaskan                                                                    
workers are  non-union. Ms. Heikes responded  that organized                                                                    
labor had  the most  experience with  worker's compensation.                                                                    
She   believed  that   the  experienced   members  with   an                                                                    
established base  of knowledge  would help the  Council work                                                                    
efficiently.                                                                                                                    
                                                                                                                                
Representative  Kelly   maintained  his  concern   that  the                                                                    
council did not adequately represent the work force.                                                                            
                                                                                                                                
Representative  Fairclough noted  that  only voting  members                                                                    
counted in the quorum. She  wondered why the two members who                                                                    
represent  insurers  were  not voting  members.  Ms.  Heikes                                                                    
pointed  out  that although  insurers  have  an interest  in                                                                    
worker's compensation  they are not typically  given a vote.                                                                    
Worker's  Compensation  issues  are  between  employers  and                                                                    
employees. The medical providers complete the process.                                                                          
                                                                                                                                
Representative Gara asked how  the ad hoc committee compares                                                                    
to the  Worker's Compensation  Advisory Council.  Ms. Heikes                                                                    
explained that  the ad hoc committee  is an ad hoc  group of                                                                    
members from  organized labor and the  Worker's Compensation                                                                    
Committee of Alaska, an  employer industry organization. The                                                                    
ad  hoc   Committee  did  not  operate   under  an  official                                                                    
statutory  mandate  and  met behind  closed  doors.  Council                                                                    
meetings   will  be   on  the   record  and   invite  public                                                                    
involvement.                                                                                                                    
                                                                                                                                
Representative Gara expressed  concern with allowing medical                                                                    
providers to vote on all  matters brought to the Council. He                                                                    
felt   they  should   vote  exclusively   on  medical   care                                                                    
reimbursement  rates,  medical  care provisions,  and  other                                                                    
applicable  Medical  Services  Review Committee  issues.  He                                                                    
believed other  council members could leverage  their votes.                                                                    
Ms. Hiekes agreed  that was a concern of  industry and union                                                                    
members  on  the  Medical  Services  Review  Committee.  The                                                                    
medical providers felt they were  a major participant in the                                                                    
system.  The treatment  of  work  related injuries,  workers                                                                    
recovery   time,  degree   of   permanent  impairment,   and                                                                    
vocational  re-training involve  medical opinion.  They were                                                                    
given a voice by a  bare majority. A vote provides incentive                                                                    
for the medical  providers to come to  the Council meetings.                                                                    
Representative  Gara maintained  his concern  making medical                                                                    
providers  voting members  for  issues that  do not  concern                                                                    
them.                                                                                                                           
                                                                                                                                
4:13:49 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas  felt  that  Council  members  should  be                                                                    
Alaska residents.                                                                                                               
                                                                                                                                
HB  346  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
07 HB314 Letter AK Spine Institute 2-2-10[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
08 HB314 Letter NFIB 1-31-10[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
09 HB314 NCCI AK Medical Cost Comparison[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
10 HB314 NCCI AK vs Countrywide Medical Cost per Case[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
11 HB314 NCCI All States Medical Cost Comparison[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
12 HB314 Letter ASMA 1-1-10[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
13 HB314 Suggested changes ASMA 1-1-10[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
14 HB314 Workers' Compensation Premium Rate Ranking cy 2008[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
14 HB314 Workers' Compensation Premium Rate Ranking cy 2008[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
15 HB314 8 AAC 45 082 Medical Treatment[1].pdf HFIN 3/22/2010 1:30:00 PM
HB 314
CSHB314 Amendment R.1.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
HB314 Letter Accident-Injury Center 2-4-10.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
HB314 Letter McNamara 2-3-10.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
HB314 Sectional Analysis ver R.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
HB314 Sponsor Statement ver R.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
HB314 Summary of Changes ver A to ver R.pdf HFIN 3/22/2010 1:30:00 PM
HB 314
CSHB346 Sponsor Statement ver E.pdf HFIN 3/22/2010 1:30:00 PM
HB 346
HB346 LETTERS.pdf HFIN 3/22/2010 1:30:00 PM
HB 346
HB346 Sectional Analysis ver E.pdf HFIN 3/22/2010 1:30:00 PM
HB 346
HB346 summary of changes ver R to ver E.pdf HFIN 3/22/2010 1:30:00 PM
HB 346
HNBL HawkerStoltze HB346 3-19-10.pdf HFIN 3/22/2010 1:30:00 PM
HB 346
CS WORK DRAFT HB 369 26-LSI527 C version.pdf HFIN 3/22/2010 1:30:00 PM
HB 369
Sectional Analysis_FIN, version C HB 369.pdf HFIN 3/22/2010 1:30:00 PM
HB369CS(RES)-DEC-CO-3-16-10NEW.pdf HFIN 3/22/2010 1:30:00 PM
HB 369
HB369(RES)-DNR-SPCO-03-16-10NEW.pdf HFIN 3/22/2010 1:30:00 PM
HB 369
CSHB369(RES)-DNR-MLW-03-16-10NEW.pdf HFIN 3/22/2010 1:30:00 PM
HB 369