SB 183-WORKERS' COMP BENEFITS GUARANTY FUND  2:13:45 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SENATE BILL NO. 183, "An Act relating to the workers' compensation benefits guaranty fund; and providing for an effective date." 2:14:24 PM LAURA ACHEE, Staff, Senator Jesse Bjorkman, Alaska State Legislature, Juneau, Alaska, presented SB 183 on behalf of the Senate Labor and Commerce Standing Committee, Senator Bjorkman, Chair. She read from the following statement: [Original punctuation provided.] In recent years the Workers' Compensation Benefits Guaranty Fund has had difficulties making timely payments to injured workers because the Fund has been subject to Constitutional Budget Reserve sweeps. Sweeping the Fund balance to zero each year has created a hurdle to paying claims until its regular revenues or supplemental budget appropriations become available. Senate Bill 183 would rectify this problem by moving the Fund from the General Fund to the State Treasury, leaving its balance intact at the end of the fiscal year as it would no longer be subject to the CBR sweep. 2:15:54 PM CHUCK COLLINS, Director, Division of Workers' Compensation, Juneau, Alaska, testified by invitation on SB 183. He said that the Workers' Compensation Benefits Guaranty Fund was established in 2005 so that employees whose employers had neglected to insure for on the job injuries would have a way to be covered in the event of injury. He stated that over the years the fund has paid out several million dollars in benefits. These funds support injured workers and their families. He said that currently there are over 20 ongoing cases, several cases are children of injured workers who were not able to return to work due to the severity of their injury. He explained that the fund is made up of settlements and penalties paid by employers who were fined for not being properly insured. In the past, the fund was held aside and only accessed when it was needed. However, he stated that several years ago the fund was swept. He explained that it was a non-reverse sweep and to date, just over $4 million has been taken from the fund. He said that there are several pending claims in addition to ongoing claims. He explained that the division has anywhere from 6-12 claims yearly. The division works to bring in revenue from stipulations. Referring to AS 23.30.082, he stated that the division would like to see protections for the fund so that the money would not lapse - thus ensuring that the funds are available to those who need them. He referred to a member of Chair Bjorkman's community who was badly burned while working - and who continues to receive support from the guaranty fund. 2:20:25 PM SENATOR BISHOP asked what the current fund balance is. 2:20:30 PM MR. COLLINS replied that the fund balance varies daily and is currently around $300 thousand. 2:20:42 PM SENATOR BISHOP asked if the fund is owed $4.4. 2:20:46 PM MR. COLLINS replied that this is correct. 2:20:48 PM SENATOR DUNBAR asked why the guaranty fund was changed from a non-swept fund to a swept fund. He shared his understanding that there are constitutional prohibitions on dedicated funds and asked how SB 183 can avoid the constitutional prohibition. 2:21:28 PM MR. COLLINS replied that he cannot speak to the legal terms; however, he explained that all funds are subject to the sweep action, as there are no dedicated funds. He stated that oftentimes, the legislature will protect funds from the sweep by voting for a reverse sweep - which did not happen in this case. he explained that the division approached the attorney general's office and SB 183 is the best solution. 2:22:30 PM SENATOR GRAY-JACKSON asked if there is a plan to make the fund whole. 2:22:46 PM MR. COLLINS replied that there is no plan to make the fund whole. He explained that it is the will of the Alaska Worker's Compensation Board is to have the money returned to the fund. He clarified that the division and the department do not have an opinion. 2:23:21 PM SENATOR GRAY-JACKSON shared her belief that there should be a plan in place to make this fund whole. 2:23:35 PM SENATOR BISHOP said that he has a plan to make the fund whole. He shared his belief that sweeping the fund was a travesty and that Alaskan workers need to know that the state cares about them - one way to do this is to make the fund whole. 2:24:28 PM CHAIR BJORKMAN held SB 183 in committee.