Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/19/2019 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation | |
| SB65 | |
| Confirmation Hearing(s) | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| *+ | SB 65 | TELECONFERENCED | |
| *+ | SB 66 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 19, 2019
1:30 p.m.
MEMBERS PRESENT
Senator Lora Reinbold, Chair
Senator Mia Costello, Vice Chair
Senator Click Bishop
Senator Chris Birch
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: Health Care & Alaska's Economy
- HEARD
SENATE BILL NO. 65
"An Act relating to the duties of the Department of Labor and
Workforce Development; and providing for an effective date."
HEARD AND HELD
CONFIRMATION HEARING:
Workers' Compensation Board
Julie Duquette - North Pole
CONFIRMATION ADVANCED
SENATE BILL NO. 66
"An Act relating to the division of labor standards and safety;
relating to the division of workers' compensation; establishing
the division of workers' safety and compensation; and providing
for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 65
SHORT TITLE: DEPT. OF LABOR: TECHNICAL ED. PROGRAMS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) L&C, FIN
03/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 66
SHORT TITLE: LABOR STANDARDS/SAFETY; WORKER COMP.
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) L&C, FIN
03/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CHARLES SLIVER, M.A., J.D.; Co-Director
Center on Lawyers
School of Law, University of Texas
Austin, Texas 78705
POSITION STATEMENT: Provided a presentation on Health Care &
Alaska's Economy.
DAVID HYMAN, M.D., J.D.; Professor of Law
Georgetown University Law Center
Washington, D.C.
POSITION STATEMENT: Provided a presentation on Health Care &
Alaska's Economy.
TAMIKA LEDBETTER, PhD; Commissioner Designee
Department of Labor and Workforce Development (DOLWD)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
hearing on SB 65.
JULIE DUQUETTE, Appointee
Workers' Compensation Board
Department of Labor and Workforce Development (DOLWD)
North Pole, Alaska
POSITION STATEMENT: Testified as appointee to the Workers'
Compensation Board.
GREY MITCHELL, Director
Division of Workers' Compensation
Central office
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 66.
DON ETHERIDGE, Executive Director
AFLCIO
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 66.
ACTION NARRATIVE
1:30:05 PM
CHAIR LORA REINBOLD called the Senate Labor and Commerce
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Gray-Jackson, Costello, Bishop and
Chair Reinbold. Senator Birch arrived as the meeting was in
progress.
^PRESENTATION
PRESENTATION:
Health Care & Alaska's Economy
1:32:09 PM
CHAIR REINBOLD announced that the first order of business would
be a presentation on Health Care & Alaska's Economy.
1:33:21 PM
CHARLES SLIVER, M.A., J.D.; Co-Director, Center on Lawyers,
School of Law, University of Texas, Austin, Texas, began a
presentation on Health Care & Alaska's Economy. He stated that
he is also an adjunct scholar at the Cato Institute, [a
conservative think tank], and co-author of Overcharged: Why
Americans Pay too Much for Healthcare, which is a "soup to nuts"
review of the health care system and the pathologies of the
same.
1:33:46 PM
DAVID HYMAN, M.D., J.D.; Professor of Law, Georgetown University
Law Center, Washington, D.C., stated he is a professor of
Georgetown, he is also an adjunct scholar at the Cato Institute
and the American Enterprise Institute. He said he co-authored of
Overcharged: Why Americans Pay too Much for Healthcare. He
remarked that the Pacific Health Coalition paid for their
travel. He offered to provide copies of the book to members.
CHAIR REINBOLD wanted to be sure that legislators could receive
the book, but she would check the ethics guidelines.
1:35:13 PM
MR. SILVER offered to provide a brief overview of the book. He
said that the U.S. healthcare system seemed designed to be
expensive. The system's third party payers, including insurance
companies, Medicare, Medicaid, TRICARE, and other entities
dominate the payment system. At the point of delivery, patients
typically pay about 11 cents on the dollar for health care. The
remaining 89 cents comes from a third party payer. This reduces
patients' questions on whether the fees are reasonable. Patients
rely on the payers to do so, which creates a principal agent
relationship between the providers and payers instead of between
the providers and patients. Since the bulk of the payments come
from payers, the providers are more concerned about satisfying
the payers' requirements rather than what is in the best
interest of the patients. The system incentivizes individuals to
overconsume and providers are satisfied with the flow of money
to them. The payers, such as private insurers, make their money
based on the dollar value of the claims. Government payers are
not capable of scrutinizing the services but receive electronic
forms and process the claims if the forms are filled in
correctly. This spiral of spending has led to today's issues.
Alaska's health care costs are the highest per capita in the
U.S. and the world. He characterized it as a generic problem for
the nation.
1:38:03 PM
DR. HYMAN agreed with Dr. Silver. He offered his belief that
many conscientious people work for insurance companies and
health care providers, but the incentives often interfere with
the outcome. He said that not enough attention was given to
delivering high quality care. Second, the "incentive problems"
extend to "surprise" medical bills or balanced billing. For
example, this issue exists in many states for patients who have
surgery in an "in-network" hospital only to later discover that
the anesthesiologist is not in network. Patients discover this
two or three months later when the insurance declines to pay and
patients must fight for payment. In fact, he has written a white
paper that discusses this. He offered to further discuss
Alaska's issues. He emphasized the importance of competition and
market entry as a means to lower prices and enhancing quality
and value for patients. Restrictions on market entry, such as a
certificate of need, licensure requirements, and scope of
practice, and market consolidation make it hard to have
effective competition. He suggested that encouraging market
entry is an area Alaska could direct its attention to in order
to improve the healthcare system. He further suggested using
insurance for true catastrophes instead of for general health
care needs.
1:41:04 PM
SENATOR GRAY-JACKSON said she attended the presentation at the
"lunch and learn." She thanked them for the great presentation.
1:41:32 PM
SENATOR COSTELLO said she previously served on the House Finance
Committee and held numerous discussions on transparency. She
offered her belief that it is difficult for companies to provide
transparency since prices are negotiated for services. She
recalled he suggested that patients should ask questions. She
said it is virtually impossible to obtain information, that the
culture does not promote transparency. She asked for suggestions
on how that could change. She said that health care costs drive
up budgets, including school district budgets. She did not think
the legislature has been able to make headway.
1:43:39 PM
MR. SILVER referred to his book that may provide some answers.
He said some parts of the healthcare system provide a lot of
transparency. For example, people can go to a walk in clinic and
see the cost for services. He said that a large part of walk-in
clinics' business is on a self-pay basis. For example, the
Surgery Center of Oklahoma performs complex medical procedures
for individuals or employers, who send their employees, but it
does so on a cash basis and does not use insurance. The website
shows a body and the patient can click on the body part and
obtain the cost of the procedure, including hip replacements.
When the consumer spends money directly, the provider conducts
itself as any business. He offered his belief that self-pay
needs to be a big part of the reform. He questioned whether
legislating transparency would work. Providers must desire
business and advertise its prices, he said.
1:45:48 PM
DR. HYMAN added that other sectors voluntarily disclose prices
without a mandate. He said that the healthcare system makes it
difficult for people outside the system to access pricing. He
pointed out the disconnect between those who provide the
service, who have no idea of the cost, and those who bill for
it. Second, all products in front of the counter in a pharmacy
have a single price, but the prescription drug costs depend on
the insurance coverage. He offered his belief that the presence
of insurance was an important factor in pricing.
He suggested that it might be worthwhile to do some transparency
efforts to show how public and private funds are being spent. He
cautioned against compelling them to disclose their
chargemasters, [which is a list of all billable services.
Instead, what is more important is to have the prices bundled
for particular types of problems. He offered to talk to the
committee in more detail. He referred to his book for some
information, but he and Mr. Silver have done additional work on
the subject.
1:47:33 PM
MR. SILVER said that the amount the state spends on Medicaid is
driven by the amount that providers demand for treating the
recipients. He suggested that the legislature divorce itself
from that dependency. It would mean creating a system for
catastrophic care insurance that provides an umbrella for people
who suffer real catastrophes, or low-frequency high-cost events
which is what insurance is designed to do. The rest of the
system should be a self-pay one and operate like social security
or food stamps. He suggested programs, such as food stamps, give
people money with restrictions. Other programs, such as social
security and earned income tax credit programs do not have
restrictions. Those programs funnel money into the hands of
consumers who use the funds for housing, food, gasoline, and
education. He said many people do not realize that most of the
contributions for good health are through access to clean water
and stable housing. In addition, education represents a huge
driver of health. Poor people spend their money on other things,
which are the social determinants of health, which provide a
"lot of bang for the buck." It does not provide nearly the
payoff when money is spent on intensive medical treatments, he
said.
1:49:34 PM
DR. HYMAN interjected that positive spillovers occur for family
members when the money is spent on the social determinants of
health and the benefits are not just limited to the individual.
1:50:01 PM
SENATOR BISHOP asked how things went the U.S. went so wrong. He
said that when his mother was born, her total bill was $25 and
consisted of three lines for five hospital days.
DR. HYMAN said one important starting point was made during WWII
to allow employment based health insurance to be provided on a
pre-tax basis. He characterized this as a large subsidy through
employers. That caused horizontal and vertical inequity, because
when an employer does not provide insurance, the individuals do
not receive a subsidy. Vertical inequity exists in a progressive
tax system that provides a subsidy that is worth more to people
with higher salaries.
He said that the basic issue is that the U.S. subsidizes health
insurance. In fact, it is the single, largest tax subsidy. The
second important point was the adoption of Medicare and Medicaid
in the form that it took. He said that the empirical evidence is
quite clear that the mid-60s decision to structure these
programs on a "tell us what the charges are and we will pay
them" approach was an invitation for volume and price effects
that have continued ever since.
SENATOR BISHOP pointed out that Alaska does not have the economy
of scale to create competition. People stop paying premiums and
the overall cost of premiums rise, he said.
1:53:47 PM
MR. SILVER said people opt out when they are forced to do so.
These people become part of the army using retail outlets. He
acknowledged that the cost spiral cannot continue and that
insurance premiums are unaffordable. He pointed out that Alaska
has geographic problems that are difficult to overcome. He
suggested that Alaska could be more receptive to market entry by
using telehealth options and mobile health care centers. These
options could help because lots of places cannot afford a
physician. However, some situations will be difficult to solve,
he said.
1:56:02 PM
CHAIR REINBOLD drawing from her time as a chief executive
officer for a company, she said she has experience with health
care. She expressed concern about the $2,000 per month premiums
for state employees. She offered her belief that the state has
serious negotiation issues, which is why she would like
contracts negotiated in public. She described issues she and her
husband had in terms of selecting health insurance. She
emphasized the need to focus on prevention and research to
determine the high incidence of cancer, heart disease and sexual
assault and domestic violence, which drive up costs. She
suggested that hospital audits are available to review costs.
She agreed that third party insurance also drives up health care
costs, yet the insurers take little risk whereas doctors absorb
the risks. She once posted the salaries of large health care
insurers, which she said were outrageous.
1:58:27 PM
SENATOR BIRCH joined the meeting.
1:58:49 PM
CHAIR REINBOLD identified another issue as the overutilization
of emergency rooms. She recalled hearing that ten per cent of
the patients represent 90 percent of the emergency room use.
Reducing prescription costs could help. She pointed out that a
doctor showed her a phone app that could reduce pharmaceutical
costs by identifying the costs at every single pharmacy in
Alaska. She emphasized the importance of breaking down the
barriers to competition.
1:59:46 PM
DR. HYMAN offered to address several issues and to meet at a
future date. He said that emergency rooms are important and
provide a critical part of the health care system but are
plagued by overutilization. Doctors treat patient problems that
often do not need emergency room facilities. Further, social
problems such as people with housing and stability issues,
criminal justice system encounters, and substance abuse issues
often come to emergency rooms, where treatment is very
expensive. He suggested thinking creatively about ways to get
those problems out of emergency rooms due to the expense. Often
patients are out of network or uninsured. Second, the medical
malpractice system and tort reform have had modest effects in
some states, but it is not a good way to address defensive
medicine. He offered to share articles with the committee. He
said that the huge numbers are not borne out by empirical
research.
He said that being a passive payer is not an effective strategy,
which is why premiums are several thousand per month. He said
that most employees are not aware of the cost of the insurance
coverage. These employees do not receive any raises, because the
funds are used to pay the increased costs for employer paid
health care coverage. He suggested people would make different
choices with more transparency of premiums.
2:03:20 PM
CHAIR REINBOLD remarked that a healthy tension exists. Many
doctors believe that doctors are micromanaged and overregulated,
whereas lawyers are totally unregulated. She suggested that
lawyers are part of the problem in the health care issue.
SB 65-DEPT. OF LABOR: TECHNICAL ED. PROGRAMS
2:04:58 PM
CHAIR REINBOLD announced that the next order of business would
be SENATE BILL NO. 65, "An Act relating to the duties of the
Department of Labor and Workforce Development; and providing for
an effective date."
2:05:06 PM
TAMIKA LEDBETTER, PhD; Commissioner Designee, Department of
Labor and Workforce Development (DOLWD), Anchorage, said that
the department's primary focus is to connect Alaskans to the job
opportunities in the state. She highlighted the department's
goal to connect more young Alaskans with high-quality career or
technical training, and education that can lead to job
opportunities in their home regions. Whether those individuals
reside in coastal or interior Alaska, the department seeks to
identify partnerships with employers and training organizations
to prepare Alaskans for these opportunities.
SB 65 would add language in AS Title 44 that directs the
Department of Labor and Workforce Development (DOLWD) to
coordinate and monitor state career and technical educational
programs by cooperating with the Department of Education and
Early Development (DEED), the University of Alaska, and any
other entities that provide career or technical training. The
Department also helps employers find skilled workers and
identifies education and training opportunities for their
current workforce, she said.
2:07:08 PM
COMMISSIONER DESIGNEE LEDBETTER said that the Alaska Workforce
Investment Board (AWIB) is the lead state planning and
coordinating entity for human resource programs in the state.
Members represent a diverse cross section of businesses and
educational partners in Alaska. In 2010, the AWIB worked in
cooperation with the Department of Education and Early
Development (DEED) and the University of Alaska to develop the
2010 Alaska Career and Technical Education (CTE) plan, which
called for strategies to improve career and technical education
and prepare Alaskans with skills needed for postsecondary
training and careers in high growth occupations in Alaska. The
CTE plan called for increasing efforts to develop career
pathways, career counseling, standards for training programs,
coordination, and program delivery. The plan addressed the
individual need for career preparedness as well as the broader
need for a training and education system that is efficient,
effective, and coordinated with current and future workforce
needs.
In 2018, these same partners developed the addendum to the
Alaska Career and Technical Education Plan. This effort was made
to reenergize and reexamine CTE plan strategies to help ensure
that a broad spectrum of educational opportunities is
communicated to Alaskans, she said.
The CTE coordinator's role is to work to implement the CTE plan
strategy, she said. Alaska Vocational Technical Center (AVTEC)
provides a premier state training school for customized training
directed at specific employers and long-term training. These
programs average nine months in duration in fields such as
maritime, applied technology, the culinary arts, energy and
building technology, and information technology. Another key
role that the Department of Labor and Workforce Development
(DOLWD) plays is the dissemination of Career and Technical
Training Funds through State Training and Employment Program
Funds and many federal grant programs, she said.
COMMISSIONER DESIGNEE LEDBETTER said that SB 65 would formalize
the DOLWD as the lead agency in coordinating and monitoring
state career and technical education.
2:10:14 PM
SENATOR BIRCH remarked on the level of engagement and the
positive impact that continuing technical education has had on
Alaska's children. Specifically, he recalled the superintendent
of the Juneau School District reported a graduation rate of 82
percent which bumped up to 84 percent for those who took some
additional classes in a fifth year. Remarkably, the graduation
rate for students with access to technical education component
jumped to 93-94 percent. He said that was pleased to see this
proposal coming forward.
2:11:31 PM
SENATOR COSTELLO said that she was encouraged to see the
department break down some "silos" because the Department of
Education and DOLWD should be working in tandem. One of
department's roles is to get Alaska's youth ready for the work
force and the other is to train people for work. She said she
viewed these roles as a natural link. She asked whether the bill
goes far enough. For example, she said that she would like the
department to review current career and technical opportunities
at the Anchorage School District's middle and high schools. She
asked whether the language should identify more detailed goals.
COMMISSIONER DESIGNEE LEDBETTER suggested that the current
language in the bill was fine. She explained that career and
technical education does not stop at K-12. The goal is to
provide a robust strategy and plan to address CTE training at
every level from K-12 on to age 99, if possible, she said. She
offered her belief that a career and technical education plan
should result in employment or it is a failed plan. The
department should lead the way because the employer community is
its primary customer. As the department assesses training and
workforce needs, it must coordinate with the DEED and the
University of Alaska system to ensure that people are trained
and educated to fill vacant and new positions that the
department brings to Alaska.
SENATOR COSTELLO asked for the local school districts' role.
COMMISSIONER DESIGNEE LEDBETTER said that the CTE coordinator's
role is to reach out and work with all schools, private
industry, and the university system to ensure that plans are in
place. While young people may not know what they want to be as
adults, by fifth grade they know exactly what they don't want to
be, she said. The department will work to encourage these
entities to recognize this opportunity to partner with the DOLWD
and not view the coordination as a "hostile takeover." She said
that this is something necessary to grow Alaska's workforce.
2:15:21 PM
SENATOR COSTELLO asked whether she has information on the types
of jobs and careers that will be needed in Alaska.
COMMISSIONER DESIGNEE LEDBETTER answered that the department
always considers jobs in demand. She said that she would report
back to the committee on the specific jobs.
SENATOR COSTELLO recalled the Department of Education and Early
Development's commissioner previously spoke before the Senate
Education Committee on the role of coding. She asked whether
coding jobs were being reviewed by the department.
COMMISSIONER DESIGNEE LEDBETTER answered that the DOLWD worked
closely with the Department of Education and Early Development
(DEED) on coding academies. She reported that events were held,
in Kotzebue and in the Mat-Su Valley. She stated that coding was
one of the industries that would be surfacing in Alaska. The
state is poised to take advantage of many opportunities due to
its geographic location. Although many younger people have
expressed interest in coding, people of all ages could code. She
welcomed members to attend the Juneau kickoff event later in the
week. In response to Chair Reinbold, she instructed her staff to
provide the information on the event to the committee.
2:18:02 PM
SENATOR BISHOP asked whether she could identify any benchmarks
for underperforming school districts and the deliverables she
wanted to accomplish. He offered his belief that Alaska does not
spend enough on career education in school districts in the
state.
COMMISSIONER DESIGNEE LEDBETTER answered that the department
already has language in the Alaska Workforce Investment Board
plan. The department has stepped up as a leader in career and
technical education. This proposal would strengthen that role.
She identified career and technical education as one of her
primary focuses. The governor has expressed interest in
providing these opportunities to Alaska's youth. Adding the duty
to coordinate and monitor state career and technical educational
programs would bring a richness to the program. CTE means more
than just providing a CTE class in a school or hiring a CTE
instructor. It must be imbedded in the state. In fact, the
reason to educate and train people is to provide them with good
paying jobs, which is an investment that will result in a higher
qualified workforce.
2:20:52 PM
CHAIR REINBOLD remarked that she was a firm believer in
technical classes. She said the drafting, woodworking, and
automotive courses she took were the best classes she had taken
in school. She expressed concern that these types of classes
were cut from Eagle River High School.
SENATOR COSTELLO reported that the upcoming coding session would
be held on March 21 from noon to 4 p.m. at the Alaska State
Museum. The coding session did not require previous expertise
and industry leaders would be attending.
2:24:16 PM
CHAIR REINBOLD opened public testimony and after first
determining no one wished to testify, closed public testimony on
SB 65.
[SB 65 was held in committee.]
2:25:28 PM
At-ease.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S):
Workers' Compensation Board
2:32:31 PM
CHAIR REINBOLD reconvened the meeting and announced that the
next order of business would be the Confirmation Hearing for
Julie Duquette, appointee to the Workers' Compensation Board.
2:33:02 PM
JULIE DUQUETTE, Appointee, Workers' Compensation Board,
Department of Labor and Workforce Development (DOLWD), North
Pole, stated that she currently works for Sladen Plumbing and
Heating. She has always worked in construction or in the
construction support industry. She expressed an interest in
worker safety and for safe work environments for workers. She
would like to continue to serve on the Workers' Compensation
Board to further assist Alaska and the construction industry.
2:33:54 PM
SENATOR BIRCH thanked her for her interest in continuing to
serve on the Workers' Compensation Board. He said that it is
helpful to have knowledgeable people who understand business and
the construction industry serving on the board.
SENATOR BISHOP echoed Senator Birch's comments.
2:34:43 PM
CHAIR REINBOLD opened public testimony and after determining no
one wished to testify, closed public testimony on the
confirmation hearing for Julie Duquette, appointee to the
Workers' Compensation Board.
MS. DUQUETTE said she appreciated the committee's hard work.
CHAIR REINBOLD asked her to provide input on any of the bills
that come before the committee.
2:35:54 PM
CHAIR REINBOLD stated that in accordance with AS 39.05.080, the
Senate Labor & Commerce Committee reviewed the following and
recommends the appointments be forwarded to a joint session for
consideration:
Workers' Compensation Board
Julie Duquette - North Pole
[Signing the reports regarding appointments to boards and
commissions in no way reflects individual members' approval or
disapproval of the appointees; the nominations are merely
forwarded to the full legislature for confirmation or
rejection.]
2:36:23 PM
At-ease.
SB 66-LABOR STANDARDS/SAFETY; WORKER COMP.
2:37:46 PM
CHAIR REINBOLD reconvened the meeting and announced that the
next order of business would be SENATE BILL NO. 66, "An Act
relating to the division of labor standards and safety; relating
to the division of workers' compensation; establishing the
division of workers' safety and compensation; and providing for
an effective date."
2:38:05 PM
COMMISSIONER DESIGNEE LEDBETTER said that this bill proposes to
merge the Division of Labor Standards, whose focus is to prevent
workplace accidents and enforce laws related to workplace safety
with the Division of Workers' Compensation, whose focus is to
provide efficient administration of benefits to injured workers
and to enforce laws related to workers' compensation
requirements.
She said that these two divisions' missions complement one
another, such that one works to prevent accidents and the other
works to provide an efficient system of benefits for injured
workers. This bill would further increase the opportunities to
remove "silos" and capitalize on efficiencies through a unified
management structure. The proposed merger will not impact any
statutes or regulations currently administered and enforced by
each division. The department seeks to take advantage of
position vacancies to explore opportunities to share duties
between divisions where it makes sense, streamline processes and
reduce unnecessary middle management supervisory functions.
COMMISSIONER DESIGNEE LEDBETTER reviewed the DLWD's fiscal note.
The bill would result in immediate administrative efficiencies
by reclassifying the Division of Labor Standards and Safety's
director to a deputy director, who will focus attention on
operational aspects of the new division's inspection,
consultation, and enforcement functions. This would reduce
midlevel management in the Division of Occupational Safety and
Health component. In addition, the two divisions will
consolidate and share administrative duties where it makes
sense. Future efficiencies may occur with office space
consolidation, increased coordination, and improved service
delivery for employers and workers. The bill would create a
structure to share resources and find efficiencies over time.
2:41:08 PM
GREY MITCHELL, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development (DOLWD), Juneau,
stated the main purpose of SB 66 was to combine the two
divisions as previously stated by Commissioner Designee
Ledbetter.
2:41:48 PM
MR. MITCHELL began a sectional analysis of SB 66. He reviewed
Sections 1-6:
Section 1: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.410(b).
Section 2: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.20.450(a).
Section 3: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055.
Section 4: Renames the division of labor standards and
safety to the division of workers' safety and
compensation in AS18.60.055(a).
Section 5: Renames the division of labor standards and
safety to the division of workers' safety and
compensation
in AS18.60.235(a).
Section 6: Renames the division of workers'
compensation to the division of workers' safety and
compensation in AS 23.05.067(a)(1)(B).
2:43:13 PM
CHAIR REINBOLD said the committee did not need to hear the
detailed changes.
2:43:43 PM
SENATOR COSTELLO asked whether removing "standard" would will
have any effect.
MR. MITCHELL answered that the name change does not impact the
statutory authority. All of the previous authorities for each
division would be incorporated into the new division of Worker
Safety and Compensation Division. He said that the standards for
wage and hour and mechanical inspections would still occur in
the merged division.
2:44:49 PM
SENATOR COSTELLO asked whether there was any opposition to the
bill.
MR. MITCHELL has not heard any opposition to the merger.
2:45:03 PM
SENATOR BISHOP asked whether the department would absorb the
cost to print new letterhead.
MR. MITCHELL answered yes. In further response to Senator
Bishop, he agreed to inform the committee if the merger was not
working. He said that it wasn't possible to predict what may
arise during the merger, but if it became necessary to "beef up"
some area to maintain the same level of service, the department
would do so. The department does not intend on reducing services
to the public and seeks to increase services. For example,
currently, a workers' compensation investigator might visit an
employer and several days later a wage and hour investigator
would appear. However, with a little coordination the department
could consolidate the inspections to increase efficiencies and
provide better services to the public.
2:46:56 PM
SENATOR BIRCH said he is not familiar with the two divisions. He
asked whether any tension exists between the two agencies.
MR. MITCHELL answered that the department does not see any
conflict between the two divisions. Instead, the department
views synergy, with one division focused on reducing accidents
and minimizing safety hazards and the other division focused on
paying benefits for incidents. Sharing data and administrative
oversight between the divisions makes sense, he said.
COMMISSIONER DESIGNEE LEDBETTER answered that the current
division director for the Division of Workers' Compensation was
previously the director of the Division of Labor Standards and
Safety. The current staff has extensive experience in the field,
so it provides opportunities to share knowledge and collaborate
to build a rich division that would be two halves of the same
whole. The department has begun the effort to share and
collaborate, she said.
2:49:44 PM
SENATOR GRAY-JACKSON said she was pleased to see the efficiency
of $283,000 and looked forward to more efficiencies.
2:50:20 PM
COMMISSIONER DESIGNEE LEDBETTER introduced her staff.
2:50:49 PM
CHAIR REINBOLD opened public testimony on SB 66.
2:52:22 PM
DON ETHERIDGE, Executive Director, AFLCIO, Juneau, said one
concern the AFLCIO has with the merger of the divisions is that
one division's function may not get adequate attention. He said
that he hoped that nothing would slip through the cracks.
2:52:56 PM
CHAIR REINBOLD, after first determining no one else wished to
testify, closed public testimony on SB 66.
2:53:16 PM
CHAIR REINBOLD reviewed upcoming announcements.
2:53:34 PM
COMMISSIONER DESIGNEE LEDBETTER said that the department has
long considered the merger to increase the department's
effectiveness and efficiency. She said her focus is to ensure
that these changes do not harm the department's current staff.
She said she hoped it would proceed in a fashion that was
beneficial to all.
[SB 66 was held in committee]
CHAIR REINBOLD reviewed upcoming committee announcements.
2:54:43 PM
There being no further business to come before the committee,
Chair Reinbold adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:54 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 03.19.19 Resume of Charles Silver.pdf |
SL&C 3/19/2019 1:30:00 PM |
|
| 03.19.19 Resume of David A. Hyman.pdf |
SL&C 3/19/2019 1:30:00 PM |
|
| L&C Workers Compensation Resume - Duquette.pdf |
SL&C 3/19/2019 1:30:00 PM |
|
| SB 65 Ver. A.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 65 |
| SB 65 Transmittal Letter.pdf |
SL&C 3/19/2019 1:30:00 PM |
SB 65 |
| SB 65 Sectional Analysis.pdf |
SL&C 3/19/2019 1:30:00 PM |
SB 65 |
| SB 65 FN 0139-DOLWD-WIB-02-19-19.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 65 |
| SB 65 FN 0139-EED-SSA-2-15-19.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 65 |
| SB 66 Ver. A.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |
| SB 66 Transmittal Letter.pdf |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |
| SB 66 Sectional Analysis.pdf |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |
| SB 66 Bill and Sectional Analysis - DOLWD.pdf |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |
| SB 66 FN 0049-DOLWD-WC-02-18-19.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |
| SB 66 FN 0049-DOLWD-OSH-02-15-19.PDF |
SL&C 3/19/2019 1:30:00 PM |
SB 66 |