SENATE BILL NO. 299 "An Act relating to the establishment of an additional southcentral panel to the Alaska Workers' Compensation Board and to appointments to that panel; and providing for an effective date." DEBORAH GRUNDMANN, Staff to Senator Ben Stevens, Chair of the Labor and Commerce Committee, testified this legislation would amend the Workers' Compensation Act to provide for an additional panel for the Alaska Workers' Compensation Board in the "southcentral venue". She referenced a map of the affected area [copy on file.] Ms. Grundmann stated this legislation is necessary to allow more hearings to occur in that area of the state and subsequently reduce the "lag time" between the date a worker files a claim, and a hearing date. She noted it would also relieve a growing caseload. Senator Leman asked if these hearing panels function for the duration of one hearing then disband, or whether they are standing committees that address multiple cases. PAUL GROSSI, Director, Division of Workers' Compensation, Department of Labor and Workforce Development, explained the panels are comprised of members of the Workers' Compensation Board. He detailed how the members are appointed by the Governor, confirmed by the Legislature and serve a term of office. Senator Olson asked how this legislation would benefit the "common worker", aside from timely resolution of claims. Mr. Grossi answered the worker benefits from decisions rendered sooner. He noted this also benefits employers in that administrative and legal expenses are incurred over a shorter period of time and additionally benefits the Department in that fewer resources are necessary. He explained this legislation would impact the disputed cases. Senator Olson spoke to the high cost of workers compensation to employers. He asked if small businesses and small municipalities would be adversely impacted financially by this legislation. Mr. Grossi replied this legislation would have no impact on the panel. He stated that if the time lag were reduced, the overall costs would be somewhat reduced as well. AT EASE 10:00 AM / 10:25 AM Amendment #1 as AMENDED: This amended amendment deletes "take effect" and inserts "be made" and deletes "July 1, 2002" and inserts "January 1, 2003" on page 2, line 6. The amended language reads as follows. TERMS AND INITIAL APPOINTMENTS. (a) The governor shall expeditiously make initial appointments to the new southcentral panel of the Alaska Workers' Compensation Board, authorized by sec. 1 of this Act. The appointments made under this subsection may not be made before January 1, 2003. This amendment also deletes Sections 3 and 4, relating to effective dates, on page 2, lines 14 and 15 and inserts a new bill section to read as follows. Sec. 3. This Act takes effect January 1, 2003. Senator Leman offered a friendly amendment the original amendment, which did not include "take" in language to be deleted from page 2, line 6. He moved for adoption of the amended amendment. Without objection the amended amendment was ADOPTED. Senator Wilken spoke as a business operator, stressing that workers' compensation is one of the most expensive aspects of his business. He expressed he would do whatever he could as a legislator to make the workers' compensation process more efficient and less burdensome, while also recognizing that injured workers must be compensated. Senator Green offered a motion to move CS SB 299 (FIN) from Committee with $5,000 fiscal note from the Department of Labor and Workforce Development. The bill MOVED from Committee with no objection.