Legislature(2007 - 2008)HOUSE FINANCE 519

02/18/2008 01:30 PM House FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Moved CSHB 320(FIN) Out of Committee
+ HCR 13 EDUCATION FUNDING/COST FACTOR COMMISSION TELECONFERENCED
Moved CSHCR 13(FIN) Out of Committee
+= HB 65 PERSONAL INFORMATION & CONSUMER CREDIT TELECONFERENCED
Heard & Held
<Teleconference Listen Only>
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 320                                                                                                            
                                                                                                                                
     An Act  relating to certification  of search  and rescue                                                                   
     personnel  and organizations;  requiring certain  search                                                                   
     and rescue  personnel to  be considered state  employees                                                                   
     for  purposes  of workers'  compensation  coverage;  and                                                                   
     allowing  municipalities  to elect  to provide  workers'                                                                   
     compensation  insurance coverage  for search and  rescue                                                                   
     personnel.                                                                                                                 
                                                                                                                                
MICHAEL  PAWLOWSKI, STAFF,  CO-CHAIR  KEVIN MEYER,  addressed                                                                   
the philosophy behind  the bill and some of  the changes made                                                                   
during the  committee process.   He  stated that the  concern                                                                   
had been  brought forward  by a  constituent involved  in the                                                                   
Search and Rescue community.                                                                                                    
                                                                                                                                
He pointed out that Section 3,  AS 18.60.125, addresses civil                                                                   
immunity and provides  the essence of the bill.   Through the                                                                   
workers compensation  statute, an employee and  employer come                                                                   
to an  agreement that in an  injury, the workers  comp system                                                                   
would be used rather than going  to court to deliver benefits                                                                   
to the injured employee.                                                                                                        
                                                                                                                                
At present  time, Search  & Rescue  volunteers are  expressly                                                                   
prohibited  from  suing  the State  under  existing  statute,                                                                   
indicated as civil immunity located  in Section 3.  There has                                                                   
been a voluntary  policy issued through the  Division of Risk                                                                   
Management is not  consistent; it is a secondary  policy.  He                                                                   
emphasized  that these are  a group  of volunteers,  whom the                                                                   
State relies  upon to  deliver search  & rescue services  and                                                                   
assist   Alaska   State  Troopers   for   statewide   outdoor                                                                   
activities.   He noted  that the  sponsor believes  that this                                                                   
group  of  people  are  basically  State  employees  for  the                                                                   
purposes of those missions.                                                                                                     
                                                                                                                                
Mr.  Pawlowski mentioned  other  groups  who receive  workers                                                                   
compensation that  are also volunteers such  as the volunteer                                                                   
fire  fighters, volunteer  emergency  medical attendants  and                                                                   
emergency  relief workers.   They  are  all considered  State                                                                   
employees  for the purposes  of workers  compensation.   When                                                                   
considering  the  volunteer  needs,  HB 320  was  drafted  to                                                                   
provide workers with compensation coverage.                                                                                     
                                                                                                                                
Mr.  Pawlowski   acknowledged  that   there  have   been  few                                                                   
accidents in  the history  of Search &  Rescue in  the State.                                                                   
The bill  attempts to  be proactive, in  the past  six years,                                                                   
more than  2,300 people  have  been saved by  the efforts  of                                                                   
search and rescue volunteers, assisting State Troopers.                                                                         
                                                                                                                                
2:20:03 PM                                                                                                                    
                                                                                                                                
Mr. Pawlowski  highlighted  changes made  to the bill  during                                                                   
the  committee process.   The  requirement for  certification                                                                   
and  registration was  removed  and some  volunteers did  not                                                                   
like  that.    A fiscal  note  was  included,  requiring  one                                                                   
statewide full time  employee to work with the  volunteers in                                                                   
coordinating the effort.                                                                                                        
                                                                                                                                
Mr.  Pawlowski  summarized, HB  320  provides  coverage to  a                                                                   
group of  people in the State,  who perform an  important and                                                                   
valuable service  and guarantees they are covered  in case of                                                                   
an accident.   Certification has  been removed  and authority                                                                   
for training was added.                                                                                                         
                                                                                                                                
2:21:17 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked  if  a person  were  entitled  to                                                                   
workers  compensation  insurance,   would  they  loose  their                                                                   
ability to  be able to sue in  Court.  He understood  that if                                                                   
the injured person did not have  workers comp insurance, they                                                                   
could sue.   He asked if  there was 100% certainty  that only                                                                   
those that receive State workers  comp insurance would not be                                                                   
entitled to sue.                                                                                                                
                                                                                                                                
Mr.  Pawlowski  explained  that in  existing  statute;  civil                                                                   
immunity already  exists.  The legislation  provides coverage                                                                   
currently  unavailable  in existing  statute.   He  requested                                                                   
that  the  Department  of  Labor  and  Workforce  Development                                                                   
address the issue.                                                                                                              
                                                                                                                                
Representative  Gara requested  the  classification of  those                                                                   
who would not be able to sue in Court.                                                                                          
                                                                                                                                
2:23:08 PM                                                                                                                    
                                                                                                                                
Representative  Gara  did not  want  to see  a  circumstance,                                                                   
where someone  doing search and  rescue work and  not covered                                                                   
by insurance,  if they were  injured, then not  being allowed                                                                   
to sue.   Mr. Pawlowski replied  that in existing law,  it is                                                                   
not an either/or situation.  Right  now, there is no coverage                                                                   
and there  is prohibition  from suing  so the civil  immunity                                                                   
statute  would  remain  in  place   and  they  would  receive                                                                   
coverage.                                                                                                                       
                                                                                                                                
Representative Gara  asked if the bill was  passed, would all                                                                   
volunteers doing  search and  rescue receive either  coverage                                                                   
by insurance or the ability to  sue.  Mr. Pawlowski addressed                                                                   
two areas  where a  person does not  have coverage  under the                                                                   
proposed bill:                                                                                                                  
                                                                                                                                
   ·    A person performing a Search & Rescue outside the                                                                       
        State Troopers with no authorization for the                                                                            
        mission; and/or                                                                                                         
   ·    When the request is drawn-up by a municipality, as                                                                      
        indicated in Section I.                                                                                                 
                                                                                                                                
He acknowledged there are places  where a volunteer would not                                                                   
be  covered and  did not  know  how civil  immunity would  be                                                                   
affected.                                                                                                                       
                                                                                                                                
2:25:17 PM                                                                                                                    
                                                                                                                                
Representative  Gara maintained  that  if the  intent was  to                                                                   
protect the search & rescue workers,  language could be added                                                                   
to clarify  that the State have  immunity to the  extent that                                                                   
they provide insurance to that  person.  If the State has not                                                                   
provided insurance  to the volunteer, they have  no immunity.                                                                   
Mr. Pawlowski referenced that  observation to the Division of                                                                   
Risk Management.                                                                                                                
                                                                                                                                
2:26:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  hoped the legislature would make  the statute                                                                   
consistent with the voluntary  Emergency Medical Technician's                                                                   
(EMT) workers compensation coverage.                                                                                            
                                                                                                                                
Representative  Kelly inquired  how many  other states  offer                                                                   
the coverage.   Mr.  Pawlowski did not  know, but  offered to                                                                   
check.  In Title  23, there are extensive lists  of statewide                                                                   
groups that receive compensation.   Some sections of the bill                                                                   
were taken directly from AS 23.32.44,  the emergency disaster                                                                   
relief volunteers.                                                                                                              
                                                                                                                                
2:27:53 PM                                                                                                                    
                                                                                                                                
CHARLES  SPRINGER,  (TESTIFIED  VIA  TELECONFERENCE),  ALASKA                                                                   
SEARCH  & RESCUE,  ANCHORAGE,  testified  in  support of  the                                                                   
legislation   which  will   provide   basic  protection   for                                                                   
volunteers  who  put  their  health and  safety  at  risk  in                                                                   
volunteer efforts for the State.                                                                                                
                                                                                                                                
2:29:26 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                         
                                                                                                                                
2:29:36 PM                                                                                                                    
                                                                                                                                
BRAD  THOMPSON,   DIRECTOR,  DIVISION  OF   RISK  MANAGEMENT,                                                                   
DEPARTMENT  OF  ADMINISTRATION,  advised  that  the  Division                                                                   
administers  the State  of Alaska's  self insurance  program,                                                                   
which extends to State agencies  and employees.  HB 320 would                                                                   
create  a  statutory   employee  for  a  search   and  rescue                                                                   
participant under  the direction of the Department  of Public                                                                   
Safety.   Mr. Thompson  pointed out  that it  would be  a new                                                                   
extension of the workers compensation  benefit for the member                                                                   
under  the direction  of that  Department.   It has been  the                                                                   
policy  and practice  to extend  to  those participants  that                                                                   
volunteer for State  service under a similar  provision.  The                                                                   
volunteer   is   not   eligible  to   receive   the   workers                                                                   
compensation benefit  but there has been a  service agreement                                                                   
which extends to the participant  a similar benefit paid only                                                                   
if there  is no other  source of coverage.   In  the proposed                                                                   
statute, it would be noted that  there is a service agreement                                                                   
that medical costs  be paid.  The proposed  statute makes the                                                                   
State  primarily responsible  to  pay medical  indemnity  for                                                                   
wage loss based on the average weekly wage.                                                                                     
                                                                                                                                
2:31:24 PM                                                                                                                    
                                                                                                                                
Representative  Gara wanted  a guarantee  that those  persons                                                                   
who do  search & rescue  work are  protected in either  their                                                                   
ability  to  go to  Court  to  get  the coverage  or  to  get                                                                   
insurance.   He  asked  if there  could be  any  gap, to  any                                                                   
person that  volunteers for search  and rescue efforts.   Mr.                                                                   
Thompson  reiterated  that  the   bill  creates  a  statutory                                                                   
benefit of workers  compensation; the State  is self-insured.                                                                   
It would pay  the same benefit to those participants  that it                                                                   
would  to a  State  employee with  the  benefit  based on  an                                                                   
average weekly  wage.  Existing civil immunity  language does                                                                   
address  the State  & municipality's  exposure for  liability                                                                   
claims from  Search &  Rescue missions  and extends  to those                                                                   
individuals.                                                                                                                    
                                                                                                                                
2:32:43 PM                                                                                                                    
                                                                                                                                
Representative  Gara advised  that in  the general  workmen's                                                                   
comp language, if  an individual is not covered,  there would                                                                   
be no benefit  from immunity; it  would be one or  the other.                                                                   
He asked if there would be objection  from the Administration                                                                   
to guarantee that every person  doing search and rescue work,                                                                   
has one or the other option.   Mr. Thompson argued that there                                                                   
is no direct  action and that the employee  has the exclusive                                                                   
remedy listed under  the workers compensation law.   There is                                                                   
no  direct-action  legal ability  to  pursue  a civil  action                                                                   
against  an employer.   The  present  civil immunity  statute                                                                   
addresses  participants  and  third parties.    The  proposed                                                                   
benefit enacts  a practice, which provides commitment  to pay                                                                   
workers compensation  and does not change the  existing civil                                                                   
immunity.   If the volunteers  were under the control  of the                                                                   
Department of Public Safety, they  would be paid the benefit.                                                                   
The  State  is  self-insured  and  would  make  that  benefit                                                                   
payment.                                                                                                                        
                                                                                                                                
2:34:24 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  the recourse  under the  bill, if                                                                   
the State or  municipality did not provide insurance  for the                                                                   
individual if that  person was hurt.  Mr.  Thompson explained                                                                   
that if the  volunteer was acting under the  control of State                                                                   
authority, they  would be covered; if a  municipality offered                                                                   
their own  Search &  Rescue, not under  the direction  of the                                                                   
Department of  Public Safety, they  would have the  option to                                                                   
extend similar  statutory benefits  to those responders.   If                                                                   
they choose  not to offer it,  there could be a  situation in                                                                   
which the  volunteer would  be without compensated  benefits.                                                                   
Representative Gara asked if they  would be without the right                                                                   
to get a remedy in Court.  Mr. Thompson said yes.                                                                               
                                                                                                                                
Representative  Gara  asked  if Mr.  Thompson  would  support                                                                   
language added  to address  that.  Mr.  Thompson said  he was                                                                   
not sure that tweaking the civil  liability statute should be                                                                   
undertaken.                                                                                                                     
                                                                                                                                
2:36:42 PM                                                                                                                    
                                                                                                                                
Representative  Gara  inquired  how  it  could  be  fair  for                                                                   
someone  risking  their  life  to save  another  not  receive                                                                   
coverage  either through  insurance or  court.  Mr.  Thompson                                                                   
responded  that   if  working  for  the  State   through  the                                                                   
Department  of  Public Safety,  the  volunteer  would not  be                                                                   
placed in  that dilemma.   However, it is the  municipality's                                                                   
choice not  to extend  the statutory benefit.   He  could not                                                                   
respond for them.  Co-Chair Meyer agreed.                                                                                       
                                                                                                                                
2:37:38 PM                                                                                                                    
                                                                                                                                
Mr.  Thompson was  not  aware of  other  states offering  the                                                                   
extension.   He  explained  the  difference between  what  is                                                                   
being offered and  what is being proposed and  that the State                                                                   
would assume  out of pocket  payment; otherwise,  there would                                                                   
be no covered medical.                                                                                                          
                                                                                                                                
2:38:33 PM                                                                                                                    
                                                                                                                                
Representative Kelly  inquired if a volunteer  was hurt while                                                                   
performing  the operations,  would the  State be paying  them                                                                   
for the  next two  years.   Mr. Thompson  explained that  the                                                                   
benefit would  be based  on the  Alaska average weekly  wage,                                                                   
whether prior earnings or not.                                                                                                  
                                                                                                                                
Vice-Chair Stoltze  suggested that HB 320 would  increase the                                                                   
number  of  people  with  coverage.    The  bill  provides  a                                                                   
tangible benefit to  volunteers.  He spoke in  support of the                                                                   
bill as it increases benefit and  coverage to more volunteers                                                                   
that help with statewide safety.                                                                                                
                                                                                                                                
2:40:58 PM                                                                                                                    
                                                                                                                                
Representative  Thomas  provided   a  hypothetical  situation                                                                   
based  on personal  experience when  responding to  emergency                                                                   
situations.  He  wondered if there would be  an authorization                                                                   
period required by the bill.                                                                                                    
                                                                                                                                
Representative  Kelly  observed  that the  current  situation                                                                   
allows for lawsuits;  he wondered how many of  the volunteers                                                                   
have sued  over the past five  years.  Mr.  Thompson reported                                                                   
that  the State  has received  no such  civil action  claims.                                                                   
Representative  Kelly asked  if small  claims payments  could                                                                   
involve  paying wages  in  the old  scenario.   Mr.  Thompson                                                                   
replied  that  the State  would  have paid  wage  replacement                                                                   
based on the minimum comp rate available at that time.                                                                          
                                                                                                                                
Representative Gara  noted frustration with  the Department's                                                                   
testimony.  He  reiterated that the volunteer  is not allowed                                                                   
to sue  under current  law, which  is why  almost no  one has                                                                   
sued.  He emphasized his frustration  that the Department has                                                                   
not  provided  "straight  answers"  to  the  questions  being                                                                   
asked.                                                                                                                          
                                                                                                                                
2:45:26 PM                                                                                                                    
                                                                                                                                
Mr.  Pawlowski addressed  concerns  voiced by  Representative                                                                   
Gara.    He  commented  that Mr.  Thompson  did  explain  the                                                                   
municipal exception  well.  In drafting the  bill and working                                                                   
with  the  communities,  the  intent was  not  to  create  an                                                                   
unfunded  mandate where  the community  would be required  to                                                                   
add coverage.  Changing the civil  liability statute places a                                                                   
municipality at risk for being  sued.  He recommended hearing                                                                   
testimony from Kevin Smith of  the Municipal League regarding                                                                   
the   joint  insurance   arrangement   discussing  types   of                                                                   
liabilities  the communities could  be at risk  for.   If the                                                                   
bill passes, concerns voiced by  Representative Gara would be                                                                   
mute.                                                                                                                           
                                                                                                                                
Representative  Gara  understood  the intent  was  to  expand                                                                   
coverage to people barred from  suing.  If the municipalities                                                                   
have concerns, it  would not surprise him.   He believed that                                                                   
the work  of the  Division of  Risk Management  should  be to                                                                   
protect   the   State   from  liability,   not   to   provide                                                                   
remedies.  He wanted the loopholes addressed.                                                                                   
                                                                                                                                
Co-Chair Meyer  pointed out that the municipalities  have the                                                                   
option to either opt in or out.                                                                                                 
                                                                                                                                
2:48:16 PM                                                                                                                    
                                                                                                                                
LIEUTENANT  RODNEY  DIAL,  (TESTIFIED   VIA  TELECONFERENCE),                                                                   
DEPUTY  COMMANDER,   DIVISION   OF  ALASKA  STATE   TROOPERS,                                                                   
DEPARTMENT OF  PUBLIC SAFETY, spoke  to the fiscal note.   He                                                                   
requested one  additional full  time position to  oversee and                                                                   
provide training for the program.                                                                                               
                                                                                                                                
Representative Hawker  recommended the fiscal  note be zeroed                                                                   
out.   He acknowledged that  the Department of  Public Safety                                                                   
is  understaffed; however,  HB  320 is  not  the vehicle  for                                                                   
solving  those  problems.   Lt.  Dial  pointed out  the  bill                                                                   
requires  required  oversight,  training and  management  for                                                                   
over  1,000  statewide  volunteers.    Representative  Hawker                                                                   
disagreed.                                                                                                                      
                                                                                                                                
Representative   Kelly   aligned   with  comments   made   by                                                                   
Representative Hawker,  noting the hidden  expenses contained                                                                   
in the note.                                                                                                                    
                                                                                                                                
2:54:06 PM                                                                                                                    
                                                                                                                                
In response  to Representative  Kelly, Mr. Pawlowski  pointed                                                                   
out  the expanded  responsibilities of  the Commissioner  and                                                                   
different from the  version submitted by the  House Labor and                                                                   
Commerce Committee.  Section 1  does not requiring it and the                                                                   
language  provides  coverage   for  the  authorized  training                                                                   
mission.   The  Department envisions  some  sort of  training                                                                   
coordination within the communities  will need to happen.  He                                                                   
added, the certification provisions had been removed.                                                                           
                                                                                                                                
Representative Gara agreed that  the cost to the State should                                                                   
be  less than  zero,  but acknowledged  that  there could  be                                                                   
unanticipated  expenses.   Mr. Thompson  explained that  Risk                                                                   
Management is funded by inter-agency  receipts.  Cost of risk                                                                   
is based on:                                                                                                                    
                                                                                                                                
   ·    The cost of claims; and                                                                                                 
   ·    Exposure.                                                                                                               
                                                                                                                                
The actual costs generated from  the claims are collected for                                                                   
a  5-year window  and  then  proportionately  shared to  each                                                                   
department.  The  portfolio of risk changes every  year.  The                                                                   
revision could increase a portion  of it.  Each year when the                                                                   
Risk Management budget request  is prepared, all payments are                                                                   
taken into account.                                                                                                             
                                                                                                                                
2:57:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED  to ADOPT Amendment 1.   (Copy on File).                                                                   
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
     Page 3, Line 17, following  "wage" would delete "but the                                                                   
     gross weekly  earnings for calculating  compensation may                                                                   
     not be less  than the minimum wage computed  based on 40                                                                   
     hours of work a week".                                                                                                     
                                                                                                                                
Mr.  Pawlowski  explained  the  intent of  the  Amendment  to                                                                   
provide clarification.                                                                                                          
                                                                                                                                
Vice-Chair Stoltze  WITHDREW his  OBJECTION.  There  being NO                                                                   
further OBJECTION, Amendment 1 was adopted.                                                                                     
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked the  decision on the  Department                                                                   
of Public  Safety fiscal  note.   Co-Chair Meyer  recommended                                                                   
cutting it in half.                                                                                                             
                                                                                                                                
Representative Hawker  MOVED to zero out the  note.  Co-Chair                                                                   
Meyer OBJECTED.                                                                                                                 
                                                                                                                                
Representative Hawker  restated the request urging  that more                                                                   
in depth discussion occur on the  Department of Public Safety                                                                   
operating budget.                                                                                                               
                                                                                                                                
Co-Chair Meyer  suggested consideration  of an  indeterminate                                                                   
note.    Representative  Hawker emphasized  zeroing  out  the                                                                   
note, suggesting that the Division  of Risk Management may or                                                                   
may not carry a consequence.                                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION,  the fiscal  note was  zeroed out  for the                                                                   
Department  of Public  Safety and an  indeterminate note  for                                                                   
Division of Risk Management.                                                                                                    
                                                                                                                                
3:02:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  REPORT CS HB  320 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Representative Kelly OBJECTED.                                                                      
                                                                                                                                
Representative Kelly indicated  his concern about moving away                                                                   
from a  volunteer system throughout  the State.   He restated                                                                   
that it could end up costing a  lot more.  He emphasized that                                                                   
the current system works well.                                                                                                  
                                                                                                                                
Representative Kelly WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
Representative  Gara OBJECTED,  but  disagreed with  comments                                                                   
made by  Representative Kelly.   He  maintained if  there was                                                                   
universal health care, the State would not need the bill.                                                                       
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CS HB  320 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Administration,  indeterminate note  #2 by the  Department                                                                   
of Administration and a new fiscal  note by the House Finance                                                                   
Committee.                                                                                                                      
                                                                                                                                
3:05:38 PM                                                                                                                    

Document Name Date/Time Subjects