HB 63-REPEAL WORKERS' COMP APPEALS COMMISSION  1:16:03 PM CHAIR VANCE announced that the final order of business would be HOUSE BILL NO. 63, "An Act repealing the Workers' Compensation Appeals Commission; relating to decisions and orders of the Workers' Compensation Appeals Commission; relating to superior court jurisdiction over appeals from Alaska Workers' Compensation Board decisions; repealing Rules 201.1, 401.1, and 501.1, Alaska Rules of Appellate Procedure, and amending Rules 202(a), 204(a) - (c), 210(e), 601(b), 602(c) and (h), and 603(a), Alaska Rules of Appellate Procedure; and providing for an effective date." CHAIR VANCE opened public testimony to HB 63. 1:16:42 PM ANDY HEMENWAY, representing self, testified in opposition to HB 63. He informed the committee that he had retired as chair of the Alaska Worker's Compensation Appeals Commission. He cited three main points: the Commission's caseload, the Commission's force of legal precedent, and the commission's productivity. In respect to caseload, he acknowledged that the number of cases had drastically decreased, due in part to covid. He said it was reasonable to expect a return to normal levels as the economy rebounds and would therefore be a mistake to make a policy decision based on low numbers. On the second point, he addressed how cases were handled before the commission was created, emphasizing that the commission's decisions have the force of legal precedent. He cited state statute that gives the board legal precedent and conveyed the clarity that it provides for the board, insurance companies, and lawyers. In regard to productivity, he explained that the commission's rules provide for a certain amount of time for preparing the record, briefing, etcetera. It would take a year to decide a case regardless of the number of cases in front of the commission, he said. 1:21:26 PM LYN ELLIOT, VP of State and Government Relations, American Property Casualty Insurance Association, testified in opposition to HB 63. She made three points: Firstly, she emphasized the complexity of workers' compensation law and the commission members' knowledge, which reduces the likelihood of a supreme court appeal. She added that she would expect a decrease in cases if the commission was doing its job properly. Secondly, the judicial system has a lack of resources that would likely delay resolution appeals, she posited. Thirdly, the repeal of the commission would not support the intent of the Workers' Compensation Act. CHAIR VANCE closed public testimony on HB 63. 1:24:44 PM REPRESENTATIVE ALLARD moved to adopt Conceptual Amendment 1 to HB 63, such that all references to 2023 would be changed to 2024. There being no objection, Conceptual Amendment 1 was adopted. 1:25:20 PM REPRESENTATIVE GRAY asked what would happen if the case count rose above 30. MR. MCKEE deferred to Ms. Meade 1:26:21 PM NANCY MEADE, General Counsel, Alaska Court System, acknowledged that the fiscal note implied a zero fiscal impact for up to 30 cases; however, she did not intend to imply that 31 cases would create a fiscal impact. She reiterated that the bill would not require fiscal resources at this time. In response to a follow up question, she explained that superior court decisions bind the parties in a particular case to the judge's determination. Superior court judges don't make law, she said, adding that new common law is decided by the Alaska Supreme Court whose job it is to resolve disagreements on the application of the law and to make law for the state of Alaska. 1:28:17 PM REPRESENTATIVE GRAY asked who enforced the precedent created by the commission. MS. MEADE said similar to statute, there is no outside enforcement entity. She indicated that any infringement could be handled in court. REPRESENTATIVE GRAY asked whether the commission always met its 30-day time constraint when issuing a decision. MS. MEADE answered no; however, both parties always agreed to pushing the 30-day time limit for various reasons. 1:30:15 PM REPRESENTATIVE CARPENTER asked how the members of the hearing panel - composed of a labor member, management member, and a full-time attorney - were appointed. MR. MCKEE shared his belief that the governor appointed the commissioners. REPRESENTATIVE CARPENTER sought to confirm that should the bill pass, the [Alaska] Supreme Court would establish precedent for the industry. MR. MCKEE answered yes. REPRESENTATIVE CARPENTER asked whether there was value in resolving cases establishing precedent by the Alaska Supreme Court, as opposed to establishing a commission prior to reaching the Alaska Supreme Court. MS. MEADE said that would be a judgement call for the legislature to make. REPRESENTATIVE CARPENTER asked whether the subject matter expertise at the commission positively or negatively impacted the length of time it take to resolve a case when compared to the same case going to the Supreme Court. MS. MEADE indicated that in general, the court takes longer to resolve cases compared to the appeals commission. In response to a follow up question, she confirmed that to set binding precedent for the industry, the Alaska Supreme Court would need to be involved. She declined to opine on the value to industry or laborers. 1:35:56 PM REPRESENTATIVE ALLARD inquired about the expertise of the commissioners and the necessary qualifications to sit on the commission. MR. MCKEE said no particular expertise was required. REPRESENTATIVE ALLARD asked whether there had been complaints about commissioners lacking legal expertise. MR. MCKEE answered no, adding that cases were supposed to take less time to go through the commission; however, the commission was taking as long as the superior court, even with the drop in cases. He countered the idea that the low case count was a result of the pandemic, indicating that fewer cases had become a pattern. REPRESENTATIVE ALLARD asked whether Ms. Meade was saying that sitting judges and attorneys don't have the knowledge or whether they don't have the time. She asked Ms. Meade to clarify her prior indication "that sometimes judges don't know ... because they're not an expert in it." MS. MEADE acknowledged that most judges do not have a background in workers' compensation law; however, when presented with a case, a judge's duty is to learn that area of law to make the best decision necessary. She added that these cases are often more time consuming than other matters due to complex medical records in many instances. REPRESENTATIVE ALLARD asked whether cases would take longer to process if responsibility was transferred from the commission to the Supreme Court. MS. MEADE shared her understanding that it would take longer; however, some cases have strict deadlines with severe consequences, such as criminal cases, expedited cases, and Child in Need of Aid (CINA) cases. 1:42:04 PM REPRESENTATIVE ALLARD asked whether within the commission, there was a timeframe for the appeals process. MR. MCKEE offered to follow up with the requested information. 1:42:47 PM REPRESENTATIVE CARPENTER shared his understanding that the bill would save the state roughly $480,000 per year. He asked which fund the money would go back to or whether it would be consumed by other things. MR. MCKEE stated his belief that it would go back into the commission's fund, which was currently being filled with general fund (GF) dollars to cover any remaining deficit from the tax on insurance claims. 1:43:59 PM REPRESENTATIVE CARPENTER asked how the court would respond to the increased caseload. MS. MEADE stated that the court system would watch the caseload and if justified, come to the legislature to ask for a new judge to take on the increased work. 1:46:35 PM REPRESENTATIVE ALLARD moved to report HB 63, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 63(JUD) was reported out of the House Judiciary Standing Committee.