SB 130 - WORKERS' COMPENSATION/ INSURANCE 2:11:52 PM CHAIR McGUIRE announced that the next order of business would be CS FOR SENATE BILL NO. 130(FIN) am, "An Act relating to a special deposit for workers' compensation and employers' liability insurers; relating to assigned risk pools; relating to workers' compensation insurers; stating the intent of the legislature, and setting out limitations, concerning the interpretation, construction, and implementation of workers' compensation laws; relating to the Alaska Workers' Compensation Board; assigning certain Alaska Workers' Compensation Board functions to the division of workers' compensation in the Department of Labor and Workforce Development and to that department, and authorizing the board to delegate administrative and enforcement duties to the division; providing for workers' compensation hearing officers in workers' compensation proceedings; establishing a Workers' Compensation Appeals Commission; relating to workers' compensation medical benefits and to charges for and payment of fees for the medical benefits; relating to agreements that discharge workers' compensation liability; relating to workers' compensation awards; relating to reemployment benefits and job dislocation benefits; relating to coordination of workers' compensation and certain disability benefits; relating to division of workers' compensation records; relating to release of treatment records; relating to an employer's failure to insure and keep insured or provide security; providing for appeals from compensation orders; relating to workers' compensation proceedings; providing for supreme court jurisdiction of appeals from the Workers' Compensation Appeals Commission; providing for a maximum amount for the cost-of-living adjustment for workers' compensation benefits; relating to attorney fees with respect to workers' compensation; providing for the department to enter into contracts with nonprofit organizations to provide information services and legal representation to injured employees; providing for administrative penalties for employers uninsured or without adequate security for workers' compensation; relating to fraudulent acts or false or misleading statements in workers' compensation and penalties for the acts or statements; providing for members of a limited liability company to be included as an employee for purposes of workers' compensation; establishing a workers' compensation benefits guaranty fund; making conforming amendments; providing for a study and report by the medical services review committee; establishing the Task Force on Workers' Compensation; and providing for an effective date." [Before the committee was HCS CSSB 130(L&C), as amended on 5/5/05.] The committee took an at-ease from 2:12 p.m. to 2:13 p.m. 2:13:57 PM REPRESENTATIVE KOTT relayed that he'd objected to moving the bill from committee yesterday because he'd had concerns regarding the "second injury fund," and was hoping to acquire further information on that issue. He added: It still seems to be somewhat confusing as to whether or not the second injury fund is working or not. My sense is that we err on the side of conservatism. I think at this point we should leave the second injury fund as is, in the bill, as it was put in yesterday, [and I think] Representative Coghill thought the same - [that] there may be some other impacts from a judicial standpoint. So I think at this point, between now and whenever this bill reaches us on the floor for a vote, there'll still be sufficient time. But I believe, at this point, that we should leave that second injury fund in the bill in spite of what Mr. Cattanach said, that it's not working. So I haven't been convinced one way or the other that it is or is not working. I know it is somewhat of a cost driver [though] we couldn't get the numbers from the Division of Insurance [regarding] what it was costing employers to keep it in. I still believe there is a tail on some of those cases, and I'm a little concerned that those injured workers may not get what is ultimately due to them. REPRESENTATIVE KOTT, in conclusion, relayed that having been given some assurance that his concerns are being met, he is now willing to move the bill from committee. REPRESENTATIVE KOTT moved to report HCS CSSB 130(L&C) [as amended] out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS CSSB 130(JUD) was reported from the House Judiciary Standing Committee.