Call to Order and Roll Call
The 1st meeting of the Interim Joint Committee on Labor and Industry was held on Thursday, June 19, 2014, at 10:00 AM, in Room 131 of the Capitol Annex. Representative Rick G. Nelson, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Alice Forgy Kerr, Co-Chair; Representative Rick G. Nelson, Co-Chair; Senators Julian M. Carroll, Perry B. Clark, Carroll Gibson, Ernie Harris, Jimmy Higdon, and Dennis Parrett; Representatives Lynn Bechler, Denver Butler, C.B. Embry Jr., Jeff Greer, Toby Herald, Joni L. Jenkins, Thomas Kerr, Adam Koenig, Mary Lou Marzian, Charles Miller, Terry Mills, Tom Riner, Jim Stewart III, and Brent Yonts.
Guests: Dwight Lovan, Commissioner, Department of Workers’ Claims; Laure Lamy, Workers’ Compensation Research Institute; Mike Donta, Deputy Commissioner, Workplace Standards, Supervisor of Apprenticeship; Daniel Lowry and Christina Smith, Labor Cabinet.
LRC Staff: Carla Montgomery, Matt Ross, Adanna Hydes, and Rhonda Schierer.
Workers’ Compensation Claims relating to the December 2011 Ky. Supreme Court Decision Gardner v. Vision Mining
Commissioner Lovan gave a PowerPoint presentation documenting black lung claims in Kentucky prior to and after the Supreme Court ruling in Vision Mining that found the consensus procedure for black lung claims unconstitutional. As the department has begun its processing of the backlog of black lung cases through the university examinations, it has learned that the UK and UL University medical centers have limited resources to process these claims. The University of Louisville has one specialist while the University of Kentucky has two specialists in this area. The universities are fully cooperating but cannot handle the volume of claims. The commissioner explained that the department may contract with two to three facilities to assist with the backlog of claims.
In response to a question from Representative Yonts, Commissioner Lovan stated that he had no indication of leanings or tendencies favoring awards or denials of black lung benefits as had been the case at John Hopkins University for federal black lung claims. Under Kentucky law, coal dust must be a substantial contributing factor to get a benefit award for black lung. The Kentucky system does not require arterial blood gas (ABG) studies. For a claim filed under KRS 342.730, an impairment rating is required but for a claim filed under KRS 342.732, an impairment rating is not required.
Commissioner Lovan addressed a transposing of numbers that Representative Bechler noticed. In response to a question from Representative Embry, Commissioner Lovan stated that he expected the new facilities to begin exams in about three weeks. In response to Sen. Kerr’s question, Commissioner Lovan stated that he did not anticipate continued work by the coal workers’ pneumoconiosis work group because no one felt a compromise could be reached on previous claims decided by the consensus process. In response to Representative Yonts’ question, Commissioner Lovan stated that case law in other areas suggested that, if cases were not appealed prior to a finding of unconstitutionality, the cases could not be reheard.
In response to a question from Sen. Gibson, Commissioner Lovan stated that there is sufficient funding for the current claims for the next year and a half. An actuarial review would have to determine how the Coal Workers’ Pneumoconiosis fund will hold up and whether assessments will be needed.
Medical Fee Schedule
Commissioner Lovan stated that the fee schedule has been updated through an administrative regulation. That schedule was effective on June 6, 2014, and will replace the 2010 schedule. There have been a number of updates to the fees.
Comp Scope
Laure Lamy of Workers’ Compensation Research Institute gave a PowerPoint presentation. Ms. Lamy explained the mission of the Workers’ Compensation Research Institute is to not provide opinions or recommendations. The job is to provide data and information to legislators and executive agencies to assist them in drafting legislation and regulations. She explained about the benefits of CompScope by providing benching marking for specific state data and comparisons to a state’s regional area. CompScope also allows member states to be included in specific studies done at the Institute. Ms. Lamy stated in response to a question from Representative Yonts that Kentucky is not yet a member, but she is meeting with numerous stakeholders and providing information on the potential of having Kentucky as a member. Representative Yonts commented that he believed this program would provide pertinent information and assistance to the General Assembly.
Progress of Apprenticeship Program
Commissioner Mike Donta gave an update on the apprenticeship program. He stated that the program currently has 2291 apprentices, 800 employers and 118 programs. He stated that 100 percent of the pilot project apprentices had been placed in employment. The Labor Cabinet expects the number in that program to rise from 40 to 50 next year. They are working with various regional technical colleges throughout the state. The cabinet has started amending the administrative regulations since the apprenticeship bill, sponsored by Senator Kerr, passed in the 2014 session.
Business Postings
Daniel Lowry spoke about how businesses had been sent almost threatening emails and letters trying to sell business postings to comply with Labor Cabinet requirements. Mr. Lowry stated that the Labor Cabinet started a media blitz informing businesses that those postings are free and could be obtained from the Labor Cabinet. In response to a question from Representative Yonts, Mr. Lowry stated that the postings are on the Labor Cabinet’s website and can be printed for free. Chair Nelson mentioned that the media blitz should continue to keep employers informed. Senator Parrett and Senator Higdon complimented the cabinet’s actions.
Other Business
Co-Chair Kerr provided a list of upcoming committee meetings:
1. July 17, Lake Cumberland State Park, Lure Lodge, joint meeting with Interim Joint Committee on Economic Development, 10:00 am
2. August 21, General Electric, Louisville, joint meeting with Interim Joint Committee on Economic Development, 1:00 pm
3. September 10 (Wednesday), Kentucky Dam Village, Labor Management Conference, 10:30 am (CT), 11:30 am (ET)
4. October 16, University of Kentucky, meeting place to be announced, joint meeting with Interim Joint Committee on Economic Development, 1:00 pm
5. November 20, Frankfort, Capitol Annex, 10:00 am
There being no further business, the meeting adjourned.