SB 29-REPEAL WORKERS' COMP APPEALS COMMISSION  2:52:46 PM CHAIR COSTELLO reconvened the meeting and announced the consideration of SB 29. She stated that this is the second hearing and public testimony was closed on 2/14/17. She asked members if they had questions for Commissioner Drygas. 2:53:19 PM SENATOR STEVENS asked if the same problems will persist if workers' compensation appeals are returned to the superior court. COMMISSIONER DRYGAS said returning the appeals to the superior court probably isn't ideal, but any other option costs money. The superior court dealt with these appeals before and it routinely handles administrative appeals, which these are. She said Ms. Meade could speak for the Court System but the 40 some superior court judges around the state would have to absorb the 30 some workers' compensation appeals each year. She explained that departments were asked to look at their statutes and identify what wasn't working. DOLWD identified this one as not working the way that people had hoped. She said the Court System submitted a zero fiscal note, which is probably an acknowledgement that they can absorb the appeals without having to hire additional staff. "I get the feeling that they are willing to do that somewhat reluctantly, but they understand the situation that we're in." COMMISSIONER DRYGAS said these appeals could be handled by an administrative law judge but that would be very expensive and the work comp bench in this state is very short. That would be a problem even if there was money for a different solution than returning to the previous procedure. She concluded that returning the appeals to the superior court is a better solution than sticking with something that is not working, and it will save the state some money. SENATOR STEVENS said he appreciates the explanation, but he was fairly confident that the legislature would be dealing with this again in the future. 2:58:52 PM SENATOR MEYER asked if [her previous testimony] was that 60 percent of the cases are appealed. COMMISSIONER DRYGAS clarified that - of the cases that are appealed to the Alaska Supreme Court and decided on the merits, 50 percent are overturned. She offered to follow up with information on the 20-30 cases from the Workers' Compensation Board that are appealed to the Workers' Compensation Appeals Commission. SENATOR MEYER described going directly to court as skipping a step. He expressed concern that the proposed change could delay decisions then commented that it might not be much different than now if the decision is appealed. COMMISSIONER DRYGAS clarified that the proposed change does not skip a step. The case goes from the Workers' Compensation Board to the superior court and then on to the Alaska Supreme Court if the decision is appealed. She also reminded members that the commission was created to address perceived delays, but the department has found that the commission hasn't gotten cases through any faster. SENATOR STEVENS asked if there are other options to consider, even if they cost more. COMMISSIONER DRYGAS said there has been discussion about moving the cases to the Office of Administrative Hearings, which would carry a positive fiscal note. She pointed out the downside that the injured worker would have a double administrative layer to negotiate before they could hear their case in court. 3:03:34 PM NANCY MEADE, General Counsel and Deputy Administrative Director, Alaska Court System offered to answer questions on SB 29. CHAIR COSTELLO expressed appreciation that Court System offered to take on this additional duty. SENATOR STEVENS asked how a better response can be expected by returning to the old system. MS. MEADE said the Court System can't promise a better response, but is willing to do it if that is the will of the legislature. CHAIR COSTELLO announced she would hold SB 29 in committee for further consideration.