05/05/1998 02:00 PM House FIN

SENATE BILL NO. 336                                                            
                                                                               
"An Act relating to excluding professional hockey team                         
members from worker's compensation coverage."                                  
                                                                               
ROBERT PEARSON, INTERN, SENATOR LEMAN testified in support                     
of SB 336.  He observed that the bill amends Worker's                          
Compensation provisions by adding professional hockey teams                    
to the list of persons not covered under AS 23.30.230. In                      
exchange for this exemption, a team owner would have to                        
provide a medical and disability program to cover the                          
players.  Coaches and others associated with the team in the                   
same Worker's Comp risk category would also be covered.                        
They would not be required to cover office personnel.                          
Players would be covered 24 hours a day, whether on duty,                      
travel or their own time.  The owner is responsible for the                    
cost of the premiums.  The idea was taken from Florida's                       
approach to this problem.                                                      
                                                                               
The committee was asked to introduce this legislation by the                   
sole professional hockey team in the state, the Anchorage                      
Aces.                                                                          
                                                                               
The Department of Labor, Division of Worker's Compensation                     
has reviewed the legislation and is neutral on the bill.                       
                                                                               
Representative Grussendorf asked if the players support the                    
legislation.  Mr. Pearson stated that the players were not                     
in objection to the legislation.                                               
                                                                               
Co-Chair Therriault observed that players are required to                      
have other coverage on or off the ice.                                         
                                                                               
Representative Martin expressed concern that the legislation                   
is exclusive.  Representative Davies did not think that the                    
legislation would fall under special interest legislation.                     
Co-Chair Therriault observed that the legislation could be                     
written to include any hockey teams anywhere in the state of                   
Alaska.  Representative Davies questioned if the bill could                    
be written to allow a second professional hockey team in                       
Alaska to be covered.  Co-Chair Therriault noted that if a                     
second team did not meet the criteria that they would not                      
have the exemption granted.                                                    
                                                                               
DWIGHT PERKINS, SPECIAL ASSISTANT, DEPARTMENT OF LABOR                         
responded to questions by Committee members.  He explained                     
that where there is compensation by an employer there must                     
be workers' compensation.  This concern was alleviated by                      
subsection (9), which provides that they must have workers'                    
coverage.  He noted that another team could be covered by                      
the exemption.  The legislation does not alleviate the                         
employer's responsibility for injury during the performance                    
of their duties.                                                               
                                                                               
Representative Mulder noted that workers' compensation                         
provides a shield for the employer from being sued, as well                    
as protection the employee.  The exemption would remove the                    
employer's shield.  He noted that players have testified in                    
support of the legislation.                                                    
                                                                               
(Tape Change, HFC 98 -154, Side 1)                                             
                                                                               
Mr. Perkins noted that sports officials would be included                      
under the exemption.  He explained that the legislation does                   
not require mandatory participation.                                           
                                                                               
Representative Davies observed that a second hockey team                       
could opt to participate under workers' compensation.  If                      
they do not have insurance for the worker's protection they                    
would have to participate in workers' compensation.                            
                                                                               
Representative Martin reiterated constitutional concerns                       
regarding the legislation's exclusive nature.                                  
                                                                               
Mr. Perkins estimated that 4 or 5 other states have similar                    
exemptions.  He noted that coverage would be the same as the                   
coverage offered under workers' compensation.  The premiums                    
may be less than the premium for workers' compensation.  He                    
did not think the Department would support expansion of the                    
legislation to include any professional team.                                  
                                                                               
In response to a question by Representative Kohring                            
regarding coverage for semi-professional hockey teams, Mr.                     
Perkins clarified that if there is wage compensation they                      
must be covered under the Workers' Compensation Act.                           
                                                                               
Representative Mulder MOVED to report CSSB 336 (L&C) out of                    
Committee with the accompanying fiscal note.  There being NO                   
OBJECTION, it was so ordered.                                                  
                                                                               
CSSB 336 (L&C) was REPORTED out of Committee with "no                          
recommendation" and with a Department of Labor.