Legislature(2005 - 2006)SENATE FINANCE 532
05/06/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB381 | |
| HB240 | |
| HB381 | |
| HB240 | |
| HB381 | |
| HB266 | |
| HB403 | |
| HB304 | |
| HB409 | |
| HB150 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 381 | TELECONFERENCED | |
| + | HB 266 | TELECONFERENCED | |
| + | HB 403 | TELECONFERENCED | |
| + | HB 304 | TELECONFERENCED | |
| + | HB 409 | TELECONFERENCED | |
| + | HB 240 | TELECONFERENCED | |
| + | HB 150 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 409(L&C)
"An Act relating to excluding qualified real estate
licensees from workers' compensation coverage."
This was the first hearing for this bill in the Senate Finance
Committee.
10:09:12 AM
REPRESENTATIVE BOB LYNN, the bill's sponsor, disclosed being a
licensed real estate agent in the State. "Workers Compensation
is the means through which injured workers are compensated for
injury sustained on the job or as a result of their job." State
and federal laws require "most companies to purchase workers
compensation insurance for their employees". To that point, he
noted that 99 percent of real estate licensees in the State are
considered independent contractors rather than employees.
Representative Lynn communicated that in Alaska, real estate
licensees "typically sign an independent contractor agreement"
with their real estate broker and "pay for their own services".
The broker does not pay them a wage/salary or benefits. Any
payment they receive is "tied directly to the sales" or service
they provide rather than hours worked. The real estate licensees
themselves are required to pay quarterly federal income taxes
and the social security tax that an employer would normally pay
for an employee. In addition, they are responsible for their
business expenses, including their licensing fees, continuing
education expenses, advertising, office equipment, websites and
long distance phone calls. They could be likened to "a business
within a business". The real estate broker has no control over
how the real estate licensee under contract with them conducts
their business, provided it is within the boundaries of the law.
The federal Internal Revenue Service (IRS) also recognizes them
as independent contractors. This bill would affirm there to be a
written contract between the broker and the real estate licensee
which states that the licensee would not be treated as an
employee for IRS or workers' compensation purposes. It would
also clarify that the real estate licensee would be paid only
for what they produced rather than for the number of hours they
might work.
Representative Lynn asked the Committee to favorably consider
the legislation.
10:12:05 AM
PEGGY ANN MCCONNOCHIE, Licensed Real Estate Broker and
Representative, Alaska Association of Realtors, spoke in support
of the bill. She appreciated the work that Representative Lynn
had conducted in its regard. The bill would provide "clear
direction" to a question that has plagued the industry for quite
some time.
10:13:01 AM
Co-Chair Wilken asked regarding Governor Frank Murkowski
Administration's position on the bill.
Ms. McConnochie responded that the bill is supported by both the
Division of Insurance in the Department of Commerce, Community
and Economic Development and the Division of Workers'
Compensation in the Department of Labor and Workforce
Development.
10:13:32 AM
To that point, Co-Chair Green noted members' bill packets
contain a copy of a letter [copy on file] dated February 7, 2006
from Department of Labor and Workforce Development Commissioner
Greg O'Claray addressed to Representative Tom Anderson, Chair,
House Labor and Commerce Committee.
Co-Chair Wilken asked whether the Department of Labor and
Workforce Development "was neutral, for, or against the
Legislation".
10:14:01 AM
PAUL LISANKIE, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development, communicated that
the letter conveyed Commissioner Greg O'Claray's support of the
bill.
10:14:32 AM
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 409 (L&C) was REPORTED from
Committee with two previous zero fiscal notes: fiscal note #1
dated February 24, 2006 from the Department of Commerce,
Community and Economic Development and fiscal note #2 dated
February 23, 2006 from the Department of Labor and Workforce
Development.
10:14:54 AM
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