HB 60 - IMPAIRMENT RATING GUIDES FOR WORKERS CO CHAIRMAN KOTT stated the next order of business was HB 60. Number 418 ELIZABETH ROBERTS, HOUSE RESEARCHER TO REPRESENTATIVE BETTYE DAVIS, ALASKA STATE LEGISLATURE, PRIME SPONSOR OF HB 60, stated this was a very friendly bill. She said the Department of Labor, the Division of Worker's Compensation and the American Medical Association (AMA) all support the bill. She said HB 60 deals with an existing statute that says the Division of Worker's Compensation has to use a 1986 AMA impairment guide. Since 1986, they have had two revised editions and a 200-page supplement. Since then, they have come up with many more diseases. She explained if a disease or injury is not included in the book, then it has not been rated, in which case the injured worker would not qualify for any compensation. She said the AMA recognizes the shortcomings of the new book, the 4th edition, and they recommend the supplement, "Understanding the AMA Guides," be used in conjunction with it. She explained the bill mandates the use of the newest revised edition and supplemental material. She added it carries a zero fiscal note. CHAIRMAN KOTT observed the Prime Sponsor of the bill, Representative Bettye Davis, had joined the meeting. Number 498 REPRESENTATIVE BETTYE DAVIS stated this legislation could garnish bipartisan support. She said it was important for people to use this guide, to have the most up-to-date information. She said it is supported by the AMA, as well as the Department of Labor. She thanked the committee and hoped they would move it in a timely manner. Number 506 REPRESENTATIVE NORMAN ROKEBERG asked what the industry's opinion of the bill was. REPRESENTATIVE DAVIS responded that they support it. Number 516 PAUL GROSSI, DIRECTOR, DIVISION OF WORKER'S COMPENSATION, stated the department supports the bill. He said the 1980 amendments require that AMA guides be used in rating physical and mental problems. He explained the problem is that every time there is a change in the guides there must be regulatory changes. To keep current they must go through the regulatory hearing process. This bill simplifies that process and makes it automatic. He noted this had been tried previously, a few years back, by regulation, but the division was told by the Department of Law that a statutory change would be required. He reiterated the department supports the bill because it streamlines the regulatory process. CHAIRMAN KOTT commented it would seem that the department would use the most current information available. MR. GROSSI pointed out the department was told by the Department of Law this was too vague and regulatory change was required. He said they were currently using the 3rd edition; however, the 4th edition is out, and they would probably hold regulatory hearings this summer to become current. He added, by the time the regulation gets signed in, there may be another change in the guide and they would be behind again. This is the problem they're facing. CHAIRMAN KOTT asked if the department had a copy of the 4th edition in their possession. Number 531 MR. GROSSI responded that they had it in their possession, but could not use it. Number 544 REPRESENTATIVE KUBINA commented this would be a cheaper way to do it and there would most likely be a zero fiscal note because the regulatory hearings would not be mandated. MR. GROSSI agreed, but said they usually would combine it with other regulatory hearings. And, in fact, if there happened to be no other reason to hold a regulatory hearing, it could be they would have to pay the transportation costs for the board members just to change the regulations. Number 551 REPRESENTATIVE PORTER asked if anyone else would be testifying on HB 60. Number 564 CHAIRMAN KOTT answered that no one else had signed up to testify. REPRESENTATIVE PORTER commented that he had seen these types of discussions that everyone agreed on go too far. He would entertain a motion. Number 569 REPRESENTATIVE ROKEBERG asked what the insurance industry's position on the bill was. MR. GROSSI said he assumed they would support it, as it was the most current and accurate scientific body of knowledge for rating injured workers. CHAIRMAN KOTT closed public testimony on HB 60. REPRESENTATIVE ROKEBERG noted that he had spoken to representatives from the Alaska National Insurance Company and they said it was okay with them. Number 574 REPRESENTATIVE PORTER made the motion to move HB 60 from committee with individual recommendations and a zero fiscal note. CHAIRMAN KOTT asked if there were objections. Hearing none, the motion passed.