HB 419-WORKERS' COMPENSATION CHAIRMAN COWDERY announced that the only order of business before the committee would be HOUSE BILL NO. 419, "An Act relating to the weekly rate of compensation and minimum and maximum compensation rates for workers' compensation; specifying components of a workers' compensation reemployment plan; adjusting workers' compensation benefits for permanent partial impairment, for reemployment plans, for rehabilitation benefits, for widows, widowers, and orphans, and for funerals; relating to permanent total disability of an employee receiving rehabilitation benefits; relating to calculation of gross weekly earnings for workers' compensation benefits for seasonal and temporary workers and for workers with overtime or premium pay; setting time limits for requesting a hearing on claims for workers' compensation, for selecting a rehabilitation specialist, and for payment of medical bills; relating to termination and to waiver of rehabilitation benefits, obtaining medical releases, and resolving discovery disputes relating to workers' compensation; setting an interest rate for late payments of workers' compensation; providing for updating the workers' compensation medical fee schedule; and providing for an effective date." Number 0075 REPRESENTATIVE PORTER moved to adopt CSHB 419, version M, as the working document before the committee. There being no objection, it was so ordered and version M was before the committee. [The House Finance Committee letter of intent was not adopted.] JANET SEITZ, Staff to Representative Rokeberg, Alaska State Legislature, informed the committee that she was present on behalf of the House Labor & Commerce Committee, which is the sponsor of HB 419. She explained that HB 419 is a bill that was developed by the Ad Hoc Committee on Workers' Compensation, which is composed of labor and management representatives that worked in conjunction with the Division of Workers' Compensation in order to update the workers' compensation law. MS. SEITZ turned to the changes between the House Finance and the House Rules version. In the House Finance Committee, there was an amendment added relating to subcontractors and how they are treated under workers' compensation. The House Rules committee substitute removes that amendment, which was inserted at the request of the Alaska Homebuilders Association. The Alaska [State] Homebuilders Association agreed to remove the amendment as it is an issue that will take more study. Furthermore, the ad hoc group is uncomfortable with that amendment because it has not had a chance to thoroughly review the amendment. Number 0194 ALLEN WILSON, President, Alaska State Homebuilders Association, remarked that this subcontractor issue is important and the hope was that this would clarify the current statutes and provide some relief to the members of the Alaska State Homebuilders Association as well as others in the same situation. However, he realized that the association needs some allies to make this work. The members of the ad hoc committee are those allies who will eventually develop a solution to this problem. In working with the ad hoc committee, the association has agreed to withdraw the amendment and continue working on resolution of this issue. Number 0269 DWIGHT PERKINS, Deputy Commissioner, Department of Labor & Workforce Development (DOLWD), noted that DOLWD is committed to working with the association in order to reach a resolution on this issue. Mr. Perkins said that DOLWD supports the amendment. REPRESENTATIVE KOTT asked if Mr. Perkins will have a recommendation on this issue for next year's legislature. MR. PERKINS replied yes and reiterated that the department will work with the association over the interim. CHAIRMAN COWDERY asked if the [Alaska State] Homebuilders [Association] is the only group with problems. Number 0335 CHARLIE MILLER, Alaska National Insurance, informed the committee that he agrees with the Homebuilders Association on this issue. He noted that Alaska National Insurance has coverage for some of the small groups and it is a problem for both the insured and the insurers. Therefore, he offered to help in order to clarify this. He assumed that the House Rules Committee is proposing to take out the amendment and the letter of intent, which he agreed didn't resolve the mutual problem. In response to Representative Green, Mr. Miller agreed to work on this over the interim. Number 0406 REPRESENTATIVE PORTER moved to report CSHB 419, version M, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered and CSHB 419(RLS) was reported from the House Rules Standing Committee. [Please note that the House Finance Committee letter of intent was not adopted and thus was not reported out of the House Rules Committee.]