Legislature(2007 - 2008)BUTROVICH 205

05/08/2007 03:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 172 EXTEND BOARD OF GOVERNORS ABA TELECONFERENCED
Scheduled But Not Heard
+ HB 121 WORKERS' COMPENSATION RECORDS TELECONFERENCED
Moved CSHB 121(L&C)am Out of Committee
+ HB 175 EMINENT DOMAIN / FISHING WATERWAYS TELECONFERENCED
Moved CSHB 175(JUD)am Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
        CSHB 121(L&C) am - WORKERS' COMPENSATION RECORDS                                                                    
                                                                                                                                
3:36:58 PM                                                                                                                    
CHAIR FRENCH announced  the consideration of HB  121. [Before the                                                               
committee  was  CSHB  121 (L&C)  am,  labeled  25-LS0501\E.A]  He                                                               
explained  that the  bill  affected  a court  case  which is  the                                                               
reason he asked for judiciary referral.                                                                                         
                                                                                                                                
REPRESENTATIVE PEGGY WILSON, sponsor of  HB 121, said the bill is                                                               
an  act   that  releases   information  in   individual  worker's                                                               
compensation  records.  It  was   intended  to  protect  personal                                                               
information from  falling into  the wrong  hands. There  has been                                                               
litigation  in this  area,  and  a judge  said  the language  was                                                               
ambiguous. HB 121 seeks to do away with that ambiguity.                                                                         
                                                                                                                                
3:38:40 PM                                                                                                                    
CLIFF   STONE,  Staff   to   Representative   Wilson,  said   the                                                               
legislation  was introduced  to clarify  statutory ambiguity.  SB
169, which  was introduced  in 2005,  prohibited the  Division of                                                               
Workers' Compensation  from providing information relating  to an                                                               
individual's   records  outside   the  scope   of  the   Workers'                                                               
Compensation  Act.  That  bill passed  unanimously  in  both  the                                                               
Senate and  the House. This  bill clarifies that  the information                                                               
is  to  be kept  private  and  out  of  the hands  of  commercial                                                               
operators that might  pass it on to parties unknown.  In the case                                                               
of O'Bryan, Baun, Cohen, Kuebler  vs. Lisankie et al., the Alaska                                                             
Superior Court found  the statute to be ambiguous.  It also found                                                               
that  the  state  did  not submit  solid  legislative  intent  or                                                               
history. HB  121 seeks to  clarify that this  private information                                                               
is not to be freely distributed.  There is an opt-in provision in                                                               
Section  2;  the   employee  may  sign  an   agreement  with  the                                                               
Department of Labor to allow distribution of their information.                                                                 
                                                                                                                                
SENATOR  McGUIRE asked  for clarification  that  an employee  who                                                               
wants their information  given out has the ability  to make those                                                               
wishes known.                                                                                                                   
                                                                                                                                
MR. STONE said that is correct.                                                                                                 
                                                                                                                                
3:42:42 PM                                                                                                                    
SENATOR THERRIAULT observed that  this language is different than                                                               
SB 169. That  language said the employee's  name, address, social                                                               
security number, and  telephone number would be  withheld. HB 121                                                               
says  the person's  name is  public but  not the  social security                                                               
number,  electronic address,  or telephone  number. He  asked why                                                               
the bill allows the person's name and address to be public.                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  said  it   came  about  through  a  floor                                                               
amendment  that  she  did  not support.  The  argument  was  that                                                               
attorneys need  access to  names and addresses,  but if  there is                                                               
litigation, attorneys have access to that information anyway.                                                                   
                                                                                                                                
SENATOR THERRIAULT suggested it's  because attorneys want to know                                                               
about potential  lawsuits. He asked if  there is a legal  duty to                                                               
provide that information.                                                                                                       
                                                                                                                                
3:44:20 PM                                                                                                                    
CHAIR  FRENCH summarized  the content  of the  lawsuit referenced                                                               
above. On page 5 the  judge reviewed the public records document.                                                               
The debate  was whether confidentiality trumps  disclosure or the                                                               
reverse. Further along  in the decision the court  quoted the law                                                               
passed  in 2005,  which said  "The division  may not  assemble or                                                               
provide information respecting  individual records for commercial                                                               
purposes that are outside the  scope of the chapter." The lawsuit                                                               
asked if  the disclosure  is for commercial  purposes. If  it is,                                                               
then it's  prohibited, and if  it is  not, then it's  allowed. On                                                               
page 11 the  court found the statute ambiguous.  The judge points                                                               
out  that  the transmittal  letter  from  the governor  says  the                                                               
purpose of the  legislation is to "enhance the  efficiency of the                                                               
current system by expanding workers access to legal counsel."                                                                   
                                                                                                                                
Testimony  from  Mr. Lisankie  was  that  the division  wants  to                                                               
provide  information  so people  can  get  good health  care,  so                                                               
providers can get paid, or  so insurance companies can settle and                                                               
pay claims, but  it tries to limit the scope  of information that                                                               
is given out for commercial purposes.                                                                                           
                                                                                                                                
The  judge  found  that  because  the  legislation  is  aimed  at                                                               
protecting workers injured on the  job, the law firm's efforts to                                                               
give   workers   information    about   possible   legal   rights                                                               
accomplishes that aim and so the information had to be divulged.                                                                
                                                                                                                                
3:49:05 PM                                                                                                                    
SENATOR WIELECHOWSKI  said he understands the  desire for privacy                                                               
but  to some  extent filing  a workers'  compensation case  gives                                                               
that up.                                                                                                                        
                                                                                                                                
REPRESENTATIVE WILSON  highlighted that the judge  said a statute                                                               
is to  be interpreted  by its plain  meaning. If  it's ambiguous,                                                               
the court  looks at legislative  intent. We want to  clarify that                                                               
the  intent   of  the  legislature   is  not  to   allow  private                                                               
information to be given out  indiscriminately. She cited a letter                                                               
from a constituent regarding unwelcome solicitations.                                                                           
                                                                                                                                
3:51:23 PM                                                                                                                    
SENATOR  THERRIAULT wondered  if  making sure  that workers  know                                                               
their  legal  rights isn't  covered  in  Section 2.  An  employee                                                               
wanting  solicitations can  sign a  release, but  the default  is                                                               
that employees get protection. He  asked when an employee is able                                                               
to sign the release.                                                                                                            
                                                                                                                                
MR. STONE said he assumes it's early in the process.                                                                            
                                                                                                                                
SENATOR  THERRIAULT said  he'd  like an  answer  to that  because                                                               
knowing you have the right to  hire an attorney is different than                                                               
knowing you can sign a release so attorneys will contact you.                                                                   
                                                                                                                                
MR.  STONE  said he  understands.  He  referred  to SB  130,  the                                                               
omnibus  workers'  compensation bill  that  was  the topic  of  a                                                               
special  session, and  said this  bill clarifies  the legislative                                                               
intent  that information  is not  to  be released.  The bill  was                                                               
amended  on  the  House  floor  to allow  release  of  names  and                                                               
addresses. Releasing  that information makes him  question having                                                               
the bill.  "The sponsor feels that  this bill is here  to protect                                                               
the privacy  rights of those  individuals…If they want to  opt in                                                               
and release that information, they can do so," he said.                                                                         
                                                                                                                                
3:55:08 PM                                                                                                                    
CHAIR FRENCH  said that is  the debate, but these  are government                                                               
documents  that are  public records.  The issue  is if  those are                                                               
commercial purposes  and if one of  the purposes of the  bill was                                                               
to help workers get compensation for their injuries.                                                                            
                                                                                                                                
SENATOR  McGUIRE  submitted  that  the  current  draft  does  not                                                               
accomplish  the  sponsor's  goal.  First,  she  agrees  employees                                                               
should have  access to information  about how to  recover damages                                                               
for their injuries.  Second, she does not  believe the government                                                               
has an  obligation to  weigh employee  privacy interests  less so                                                               
someone else  can earn a living.  The bill should give  workers a                                                               
method  and a  timeframe for  making an  informed decision  about                                                               
whether  or  not  they  want their  personal  information  to  be                                                               
public. When  opting to have  information made public,  it should                                                               
include everything.  "It's their  right, if  they would  like, to                                                               
have the ability for that to  be released and potentially go into                                                               
litigation that  we're talking  about. It should  not be  the law                                                               
firm's right," she stated. Commercial  rights don't supersede the                                                               
privacy rights of individual health information.                                                                                
                                                                                                                                
3:57:43 PM                                                                                                                    
CHAIR FRENCH  said he partially  agrees and  partially disagrees.                                                               
Private health information, absolutely,  but not name and address                                                               
because there's no health information  there. He said most people                                                               
don't  know their  rights, and  they  settle for  less than  they                                                               
might get if they had some help. That's an unfair disadvantage.                                                                 
                                                                                                                                
SENATOR McGUIRE  argued in this  context a name and  address does                                                               
carry health information  because by definition the  person is an                                                               
injured worker in  workers' compensation. It's not the  same as a                                                               
name and address  from any data bank. She agrees  with the second                                                               
point. There's a fine line between  giving up rights and a person                                                               
actually  knowing what  they're  giving up.  That  should be  the                                                               
focal point  of the bill. In  a neutral setting the  worker ought                                                               
to get  the information needed  to make a decision  about whether                                                               
they want their private information to be available or not.                                                                     
                                                                                                                                
CHAIR FRENCH said the question is  whether or not a letter from a                                                               
lawyer is so  invasive as to be an exception  to the broad public                                                               
policy of government records being open for inspection.                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI suggested  the  analysis should  be if  the                                                               
information should  be a public record  or not, and for  a lot of                                                               
reasons  it should.  Examples of  public  records include:  court                                                               
cases,  property  ownership,  property tax  exemptions,  and  the                                                               
longevity  bonus. These  are  all part  of  open and  transparent                                                               
government. One  reason to make a  name and address public  is so                                                               
people   who  file   fraudulent  claims   can  be   more  readily                                                               
identified.  The   injured  worker  is  going   before  a  public                                                               
tribunal. Other information, such  as social security numbers and                                                               
health records,  obviously should not  be public. "But  names and                                                               
addresses, in my  book, I think the balance tips  in the favor of                                                               
making it public," he stated.                                                                                                   
                                                                                                                                
4:01:29 PM                                                                                                                    
CHAIR FRENCH  said he  asked to  hear this  bill and  promised he                                                               
wouldn't hold it.  From his perspective, the bill  strikes a fair                                                               
balance. He realizes  it doesn't comport with the  desires of the                                                               
sponsor, but he  doesn't know that there's any will  to change it                                                               
in this committee. The next  referral is finance, and he believes                                                               
there will be a strong effort to change it in that committee.                                                                   
                                                                                                                                
SENATOR McGUIRE asked if the sponsor is comfortable with that.                                                                  
                                                                                                                                
REPRESENTATIVE WILSON stated the following:                                                                                     
                                                                                                                                
     We're living in  a different time now than  we even did                                                                    
     10 years  ago. And  we have  changed other  statutes in                                                                    
     this state to protect people's  privacy. And it used to                                                                    
     be that anybody  could get on and find  out who applied                                                                    
     for  a  permanent fund  dividend.  They  can't do  that                                                                    
     anymore.  …because of  what  else is  going  on in  the                                                                    
     world and identity  theft and things like  that, we are                                                                    
     slowly   ratcheting  it   down.  …not   only  is   that                                                                    
     information  available  to   other  attorneys,  but  to                                                                    
     anybody and  so you need  to realize that it  might not                                                                    
     just  be somebody  that wants  to make  some money.  It                                                                    
     might  be somebody  that if  they have  somebody's name                                                                    
     and  address   they  could  do  something   else.  It's                                                                    
     identity theft. So … we're protecting the public.                                                                          
                                                                                                                                
SENATOR THERRIAULT asked to hear from the department.                                                                           
                                                                                                                                
4:03:49 PM                                                                                                                    
PAUL  LISANKIE,  Director,  Division  of  Workers'  Compensation,                                                               
Department of  Labor and  Workforce Development  (DOLWD), Juneau,                                                               
offered  two  points  of clarification.  First,  the  information                                                               
stream begins with  a report of an injury or  illness incident at                                                               
work.  The   division  strongly  encourages  workers   to  report                                                               
incidents even if there is no  intention to do any more than slap                                                               
on a  band aid. The other  point is that although  the discussion                                                               
has centered  on the  lawsuit, in  his three-year  tenure there's                                                               
never been a  request from law firms wanting  to represent people                                                               
in  an Alaska  workers' compensation  matter consistent  with the                                                               
chapter.  "By  and  large,  there are  not  lawsuits  with  every                                                               
workers' compensation claim.  By and large, it's  designed not to                                                               
have a lawsuit  claim," he said. "But there are  gray areas where                                                               
you  could argue  about whether  someone  has a  right that's  in                                                               
addition to a workers' compensation benefits claim," he added.                                                                  
                                                                                                                                
SENATOR  THERRIAULT asked  at  what point  the  employee has  the                                                               
right to sign a release and get solicitations.                                                                                  
                                                                                                                                
MR.  LISANKIE replied  he isn't  sure, but  it would  have to  be                                                               
early on. "I  don't know if we would have  enough room to include                                                               
it  with the  original injury  report …  or if  we would  have to                                                               
design   a  stand-alone   form,  which   most  likely   would  be                                                               
communicated back to someone who had filed an injury report."                                                                   
                                                                                                                                
SENATOR  THERRIAULT noted  that  names and  addresses are  public                                                               
under the current draft, and  he questioned why an employee would                                                               
take the extra step to make their social security number public.                                                                
                                                                                                                                
MR. LISANKIE  replied he can't  imagine why anyone would  want to                                                               
give  out their  social security  number. The  division does  not                                                               
routinely  mention or  print them  in  their decisions.  However,                                                               
social security numbers are on  the vast majority of the workers'                                                               
compensation forms, he added.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI asked how many  requests about employees the                                                               
division gets in any given year.                                                                                                
                                                                                                                                
MR. LISANKIE  said informal sampling indicates  somewhere between                                                               
eight and  twelve requests per  day, which is different  than the                                                               
request in  the lawsuit.  The typical request  is from  a service                                                               
asking  if   a  particular  person  has   reported  any  workers'                                                               
compensation injuries in the last seven years.                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI  said of  the eight to  twelve, how  many of                                                               
those are from companies trying to get information.                                                                             
                                                                                                                                
MR. LISANKIE said it may be about fifty percent.                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if the  division currently  releases                                                               
social   security  numbers,   e-mail  addresses,   and  telephone                                                               
numbers.                                                                                                                        
                                                                                                                                
MR. LISANKIE said yes if someone were  to ask for a hard copy and                                                               
that information happened to be on the piece of paper.                                                                          
                                                                                                                                
SENATOR McGUIRE observed that initially  the debate centered on a                                                               
desire  to prevent  litigation, but  Mr. Lisankie  reported never                                                               
having received a request from  a law firm asking for information                                                               
about injured  workers relating to  injured worker  lawsuits. Now                                                               
her  concern  has  shifted  to   insurance  companies  and  other                                                               
employers.  Those   entities  might  want  that   information  to                                                               
document pre-existing  injuries to deny medical  treatment, or to                                                               
assess  large premiums,  or simply  to find  out if  a person  is                                                               
inclined to file a workers' compensation claim.                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI  responded  that's  why  this  is  such  an                                                               
interesting bill.  But you need to  put all that aside  and focus                                                               
on whether  this should  be a  public record.  You could  say the                                                               
same  thing  about  property  tax  records,  senior  records  and                                                               
others. Probably  a lot of devious  things can be done  with that                                                               
information, but  that might not  be the right focus.  Bad things                                                               
can happen on both sides, he said.                                                                                              
                                                                                                                                
SENATOR  McGUIRE  expressed the  view  that  health records  rise                                                               
above property records.                                                                                                         
                                                                                                                                
CHAIR FRENCH pointed  out that the report could  be anything from                                                               
a cut on a  finger to a missing limb, and there's  no way to find                                                               
out which end of the spectrum it is based on a name and address.                                                                
                                                                                                                                
SENATOR THERRIAULT  said an employer  could use  this information                                                               
to  screen  employees.  He  wondered  if  that  potential  danger                                                               
outweighs the  issue of  whether an injured  person knows  how to                                                               
get adequate  legal advice. The  individual employee  can control                                                               
whether  or not  they  look for  an attorney,  but  they have  no                                                               
control over a  bad actor that screens them out  because they had                                                               
the audacity to exercise their rights with a previous employer.                                                                 
                                                                                                                                
CHAIR FRENCH called an at-ease at 4:14:22 PM.                                                                                 
                                                                                                                                
4:15:13 PM.                                                                                                                   
CHAIR FRENCH found no further  discussion or debate and asked for                                                               
a motion.                                                                                                                       
                                                                                                                                
SENATOR  WIELECHOWSKI  moved  to   report  CSHB  121(L&C)am  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There being no objection, it was so ordered.                                                                           
                                                                                                                                

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