Legislature(2009 - 2010)BUTROVICH 205
04/07/2010 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB303 | |
| HB386 | |
| SB222 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 222 | TELECONFERENCED | |
| + | SB 303 | TELECONFERENCED | |
| + | HB 386 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 292 | ||
| = | SB 249 | ||
SB 303-WORKERS' COMPENSATION AND CONTRACTORS
8:35:01 AM
CHAIR FRENCH announced the consideration of SB 303 and noted
that there was a committee substitute (CS) for the committee to
consider. Public testimony was taken and closed at the previous
hearing.
Senator McGuire joined the committee.
SENATOR WIELECHOWSKI moved to adopt the work draft CS for SB
303, labeled 26-LS1089\S, as the working document. There being
no objection, version S was before the committee.
SENATOR JOE PASKVAN recapped that SB 303 is designed to restore
the structure of the workers' compensation statutes to the
policy that was intended at statehood, which is that "if you
break it you pay for it." That policy worked well until 2004
when it was changed to give immunity to project owners, general
contractors, or others who, even with criminal negligence,
injured or killed an employee of the subcontractor. "I would
submit that that's bad public policy," he stated.
SENATOR PASKVAN related that Sections 1, 2, and 4 contain
changes that would re-implement the previous, more protective
law. Section 3 adds new subsections [AS 23.30.045(g) and (h)].
Subsection (g) says that a subcontractor who is hired as an
independent contractor by the contractor and who has no
employees during the term of the contract is liable for and
shall secure the payment of compensation under the workers'
compensation statute and shall produce a certificate of workers'
compensation insurance coverage for the project. Subsection (h)
says that if a subcontractor fails to do that and it results in
a premium that is billed to the contractor. The subcontractor is
liable for that additional premium plus any associated
penalties. This is good social policy in the workers'
compensation context, he said.
8:37:58 AM
SENATOR WIELECHOWSKI moved to report CS for SB 303, version S,
from committee with individual recommendations and attached
fiscal note(s).
SENATOR COGHILL objected to make an observation. He said he's
beginning to understand the need for this bill, but he wants to
talk to the sponsor about the requirement for an individual
subcontractor to buy the insurance because it looks like it's an
economic levelizer rather than a compensation problem.
He related that what appealed initially was the fairness
standard and the idea that if you break it you should fix it.
His understanding is that now the owner of a project is subject
to the workers' compensation laws, which is not sufficient in
some circumstances. This bill makes the owner liable, but it
leaves the main contractor under workers' compensation and
without having to bear the same responsibility as the owner so
the fairness standard only goes part way, he said. "I don't
understand why we're not going the whole way, but I don't know
enough about the system to put an amendment in to say we should
do that because then the whole reason for workers' comp kind of
starts dissipating," he said.
8:40:08 AM
He said the testimony from Tesoro indicated that they would
become significantly liable while some contractors who they work
with wouldn't bear that same liability so it's not clear that
this will reach the fairness that the sponsor sought.
Nevertheless, I'm willing to continue the dialog so I'll
therefore remove my objection, he concluded.
CHAIR FRENCH announced that without objection, CSSB 303(JUD)
moved from the Senate Judiciary Standing Committee.
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