Legislature(1993 - 1994)
01/18/1994 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 277 - INDEMNIFICATION OF PUBLIC EMPLOYEES Number 029 REPRESENTATIVE BRIAN PORTER, prime sponsor of HB 277, stated that HB 277 has the support of municipalities and the public and private sector. He stated that HB 277 was necessary because of public employees being adversely affected by being named in suits; and without formal indemnification, it causes them personal problems. He stated an example. REPRESENTATIVE PORTER explained that HB 277 provides more than adequate protection for the public employer, state, municipalities and boroughs. He said HB 277 would not indemnify an employee whose acts were beyond the scope of his/her employment; gross negligence; intentional acts; or punitive damages. REPRESENTATIVE PORTER submitted suggestions from the Department of Law. (Attachment on file.) He noted that he disagreed with provision AS 39.90.160(b)(1) outlined on page 2, paragraph 3. Number 185 CHAIRMAN VEZEY inquired what was preventing employers from indemnifying their employees? Number 211 REPRESENTATIVE PORTER responded there was nothing preventing the employer; however, it would require a legislative body to codify an effective law. Number 222 CHAIRMAN VEZEY conveyed the equality of an effective law and a good employer policy, noting the private sector's common practice of indemnification of employees in almost all cases. Number 237 REPRESENTATIVE PORTER expounded upon the idea of unstable work relations via employer/employee. Number 249 REPRESENTATIVE PETE KOTT questioned why, other than collective bargaining, the university employees are excluded. REPRESENTATIVE PORTER replied he did not know and he did not have a preference. Number 268 CHAIRMAN VEZEY introduced GORDON PARKER, testifying via teleconference from Anchorage. Number 273 GORDON PARKER, Director of Carrier Relations and Public Policy for the Anchorage Telephone Utility (ATU), introduced STEVE TERRY, Director of Human Resources for ATU. Number 307 STEVE TERRY spoke in favor of HB 277, expressing the vulnerability of employers in such cases as wrongful termination and the expenses they incur. Mr. Terry believed the passage of HB 277 would succeed in making cases harder to try for the plaintiff's attorney due to the closer relationship which would develop between the employer and the organization. Number 360 CHAIRMAN VEZEY expressed his concern that the issue of punitive damages may be better addressed under the tort reform bill now circulating within the legislature. Number 372 MR. TERRY deferred to the subject of future pay options. Number 389 CHAIRMAN VEZEY questioned the matter of Anchorage not addressing this issue at the municipal level. Number 393 MR. TERRY heeded Chairman Vezey's suggestion as an alternative. However, he felt there were others in the state who could benefit from HB 277. Number 398 CHAIRMAN VEZEY did not believe HB 277 would indemnify those in violation of the Open Meetings Act which covers public employees/officials liabilities. He asked Mr. Terry to clarify. Number 411 MR. TERRY believed the coverage would become inevitable. Number 440 REPRESENTATIVE GARY DAVIS requested additional time for the sponsor to gather support and documentation. Number 450 CHAIRMAN VEZEY agreed and stated HB 277 would be held in committee until a time uncertain.
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