Legislature(1997 - 1998)

04/11/1997 03:30 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                          
                         April 11, 1997                                        
                           3:30 p.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Norman Rokeberg, Chairman                                      
 Representative John Cowdery, Vice Chairman                                    
 Representative Bill Hudson                                                    
 Representative Jerry Sanders                                                  
 Representative Joe Ryan                                                       
 Representative Tom Brice                                                      
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 SENATE BILL NO. 137                                                           
 "An Act exempting certain volunteer emergency medical technicians             
 and volunteer firefighters from state wage and hour laws; and                 
 providing for an effective date."                                             
                                                                               
      - MOVED HCSSB 137(L&C) OUT OF COMMITTEE                                  
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  SB 137                                                               
 SHORT TITLE: EXEMPT VOL. EMT/FIRE FGTR WAGE & HOUR LAW                        
 SPONSOR(S): SENATOR(S) LEMAN, Miller, Taylor, Pearce, Mackie                  
                                                                               
 JRN-DATE     JRN-PG             ACTION                                        
 03/12/97       695    (S)   READ THE FIRST TIME - REFERRAL(S)                 
 03/12/97       695    (S)   L&C                                               
 03/26/97       874    (S)   L&C RPT  3DP 1NR                                  
 03/26/97       874    (S)   DP: LEMAN, KELLY MILLER; NR: HOFFMAN              
 03/26/97       874    (S)   ZERO FISCAL NOTES (LABOR, DPS)                    
 04/02/97       934    (S)   RULES TO CALENDAR  4/2/97                         
 04/02/97       937    (S)   READ THE SECOND TIME                              
 04/02/97       938    (S)   ADVANCED TO THIRD READING UNAN CONSENT            
 04/02/97       938    (S)   READ THE THIRD TIME  SB 137                       
 04/02/97       937    (S)   COSPONSOR(S): TAYLOR, PEARCE, MACKIE              
 04/02/97       938    (S)   PASSED Y18 N- A2                                  
 04/02/97       938    (S)   EFFECTIVE DATE(S) SAME AS PASSAGE                 
 04/02/97       944    (S)   TRANSMITTED TO (H)                                
 04/03/97       920    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/03/97       920    (H)   LABOR & COMMERCE                                  
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 ANNETTE KREITZER, Legislative Assistant                                       
   to Senator Loren Leman                                                      
 Alaska State Legislature                                                      
 Capitol Building, Room 113                                                    
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-2095                                                    
 POSITION STATEMENT:  Presented HCSSB 137(L&C).                                
                                                                               
 TOM DEAN, CHIEF,                                                              
 Emergency Medical Service                                                     
 Tok Area                                                                      
 Box 811                                                                       
 Tok, Alaska  99780                                                            
 Telephone:  (907) 883-5873                                                    
 POSITION STATEMENT:  Testified in support of HCSSB 137(L&C).                  
                                                                               
 CRAIG LEWIS, Executive Director                                               
 Interior Region                                                               
 Emergency Medical Services                                                    
 3522 Industrial Avenue                                                        
 Fairbanks, Alaska  99701                                                      
 Telephone:  (907) 456-3978                                                    
 POSITION STATEMENT:  Testified in support of HCSSB 137 (L&C).                 
                                                                               
 RANDY CARR, Chief                                                             
 Labor Standards, Mechanical Inspection                                        
 Division of Labor Standards and Safety                                        
 Department of Labor                                                           
 P.O.Box 107021                                                                
 Anchorage, Alaska 99510                                                       
 Telephone:  (907) 269-4914                                                    
 POSITION STATEMENT:  Testified that the department does not oppose            
                      HCSSB 137 (L&C).                                         
                                                                               
 MARK JOHNSON, Chief                                                           
 Community Health and Emergency Medical Services                               
 Central Office                                                                
 Division of Public Health                                                     
 Department of Health and Social Services                                      
 P.O. Box 110616                                                               
 Juneau, Alaska  99811                                                         
 Telephone:  (907) 465-3027                                                    
 POSITION STATEMENT:  Testified in support of HCSSB 137(L&C).                  
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-39, SIDE A                                                            
 Number 0001                                                                   
                                                                               
 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                  
 Standing Committee to order at 3:30 p.m.  Members present at the              
 call to order were Representatives Cowdery, Sanders, Ryan, Hudson             
 and Rokeberg.                                                                 
                                                                               
 SB 137 - EXEMPT VOL. EMT/FIRE FGTR WAGE & HOUR LAW                          
                                                                               
 Number 0046                                                                   
                                                                               
 CHAIRMAN ROKEBERG stated that the committee would hear SB 137                 
 "An Act exempting certain volunteer emergency medical technicians             
 and volunteer firefighters from state wage and hour laws; and                 
 providing for an effective date."  He stated that Senator Leman's             
 staff will present the bill.                                                  
                                                                               
 Number 082                                                                    
                                                                               
 ANNETTE KREITZER, Legislative Assistant to Senator Loren Leman,               
 stated that the committee has a blank committee substitute for the            
 bill and if the committee decides to adopt it, she will explain the           
 reason for the change.                                                        
                                                                               
 CHAIRMAN ROKEBERG asked Ms. Kreitzer to tell the committee what the           
 bill does and then they will take up the committee substitute.                
                                                                               
 Number 108                                                                    
                                                                               
 MS. KREITZER stated that the bill was introduced at the request of            
 Interior Region Emergency Medical Services, (EMS).  It adds                   
 voluntary Emergency Medical Technicians (EMT) and firefighters to             
 the list of those exempted from the Alaska Wage and Hour Act.  She            
 stated that it was necessary to do so because the interpretation by           
 the Department of Labor, of what constitutes an employee/employer             
 relationship under the Federal Fair Labor Standards Act.  The                 
 interpretation has been confusing and inconsistent and there is no            
 clear exemption for these volunteers under current law.  She stated           
 that the Department of Labor does not have a clear category to be             
 able to exempt firefighters and EMTs for the purposes of                      
 reimbursement for out-of-pocket expenses.  The bill does this.                
                                                                               
 Number 192                                                                    
                                                                               
 REPRESENTATIVE JOHN COWDERY made a motion to adopt HCSSB 137(L&C),            
 0-LSO727, Version E, 4/10/97.                                                 
                                                                               
 CHAIRMAN ROKEBERG asked if there was an objection, hearing none,              
 HCSSB 137(L&C) was adopted.                                                   
                                                                               
 Number 229                                                                    
                                                                               
 MS. KREITZER stated that the reason for the committee substitute is           
 that she had received a phone call from a combined fire department,           
 which is a fire department that has both paid and volunteer                   
 firefighters.  Their concern was that the bill would be used to               
 force paid firefighters to volunteer, which was not the intent of             
 the bill.  The intent is just to get volunteer firemen exempt from            
 the Alaska Wage and Hour Act for the purpose of reimbursement.  She           
 stated that the changes in the committee substitute are on line 5,            
 in which the word "only" has been added to read "an individual who            
 provides emergency medical services only on a voluntary basis or an           
 individual who serves with a full-time fire department only on a              
 voluntary basis."  She stated that the other change is that in the            
 previous bill it stated that "an individual who serves with a full-           
 time fire department on a temporary, voluntary basis", the word               
 "temporary" was deleted because the drafter did not understand why            
 the word was in there to begin with.  It was her understanding that           
 firefighters who volunteer do not just volunteer for one year but             
 for many years.  She stated that with the word "temporary" in the             
 bill, those firefighters would not be included as individuals who             
 could be reimbursed for their out-of-pocket expenses.                         
                                                                               
 Number 350                                                                    
                                                                               
 REPRESENTATIVE BILL HUDSON asked what would be an example of the              
 fiscal effect with and with out this bill.                                    
                                                                               
 Number 360                                                                    
                                                                               
 MS. KREITZER replied that the Tok EMS representative could explain            
 his service as one that was impacted by the lack of this                      
 legislation.  She stated that his service would have to organize              
 forms which would add cost.                                                   
                                                                               
 Number 413                                                                    
                                                                               
 REPRESENTATIVE HUDSON asked if the Tok representative could also              
 speak to the overtime impact.                                                 
                                                                               
 Number 474                                                                    
                                                                               
 TOM DEAN, CHIEF, Emergency Medical Services, Tok Area, testified              
 via teleconference in Tok, that EMS is an active service with some            
 long transports from Tok to Fairbanks two or three times a month,             
 averaging nine hours.  He stated that occasionally they go to                 
 Anchorage which is a 15-hour trip.  He stated that the EMTs are               
 completely volunteer and he does not want it to cost the volunteers           
 in out-of-pocket expenses, especially on the long transports.  He             
 stated that his concern is not to have a financial hardship on the            
 volunteers.  He stated that they are not in the position to get               
 into a paid or partially paid employer/employee relationship.  His            
 concern is if people are willing to give their time it should not             
 cost them to do so.  He stated that he is in favor of the bill.               
                                                                               
 Number 653                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked if he could give an example of traveling to           
 Anchorage or Fairbanks for training with the costs, and where this            
 bill would apply.                                                             
                                                                               
 Number 675                                                                    
                                                                               
 MR. DEAN replied that paying the per diem to cover meals and                  
 incidentals when out of town for training or out of town on                   
 transports would help.  He stated that his concern is that they               
 don't get into hourly wages and an employer/employee relationship.            
 He stated that they want to be fair to the volunteers and at the              
 same time not have any legal hassles.  He stated that the amount of           
 money is not a lot, but apparently it is enough where it could be             
 a question of hour wage loss.                                                 
                                                                               
 Number 748                                                                    
                                                                               
 REPRESENTATIVE COWDERY asked if volunteers receive any benefits               
 from the state for their work.                                                
                                                                               
 MR. DEAN asked if he was asking in regards to the service or to the           
 individual people.                                                            
                                                                               
 REPRESENTATIVE COWDERY replied for the people.                                
                                                                               
 Number 771                                                                    
                                                                               
 MR. DEAN responded no the only benefit for the people is the                  
 training, the experience and helping their neighbors.                         
                                                                               
 REPRESENTATIVE COWDERY asked if there is any compensation or health           
 benefits.                                                                     
                                                                               
 Number 792                                                                    
                                                                               
 MR. DEAN replied no.                                                          
                                                                               
 Number 801                                                                    
                                                                               
 REPRESENTATIVE JOE RYAN stated that there are a number of volunteer           
 fire organizations because the bureau cannot afford to put together           
 class one employees and pay for them.  The borough supplies                   
 equipment and training and the volunteers are not compensated                 
 because there is no provision to compensate them.  He stated money            
 would be appropriated from time to time to purchase new equipment             
 but there was no benefit or employment package for the volunteers.            
 He stated that in remote areas, volunteers are the only service               
 that provides fire protection.                                                
                                                                               
 Number 873                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked Mr. Dean if he could send a letter                    
 explaining his support for the bill.                                          
 Number 904                                                                    
                                                                               
 MR. DEAN stated that he would.                                                
                                                                               
 Number 904                                                                    
                                                                               
 CRAIG LEWIS, Executive Director, Interior Region, Emergency Medical           
 Services and President of the Alaska Emergency Medical Association,           
 testified via teleconference from Fairbanks, in support of the                
 bill.  He stated that 2,000 volunteers across the state of Alaska             
 provide the predominance of all the pre-hospital care done in the             
 state.  They do this of their own volition, on their free time and            
 in many cases with their own money.  He stated that there is the              
 situation of having many rules which impact the definition of what            
 a volunteer is and what is an employee.  An EMT that is a volunteer           
 right now, is on the edge of being interpreted as an employee under           
 the Federal Fair Labor Standards Act and under the Wage and Hour              
 Law of Alaska.  He stated that then the agencies become employers             
 and would have to assume all the responsibilities that an employer            
 would have to assume when, in reality, all the organization wants             
 to do is volunteer their time to help their neighbors in times of             
 crisis.  He stated that if a group of people tells you when to come           
 to work, provides a uniform, a vehicle, in this case an ambulance,            
 provides training and reimburses expenses, it is interpreted by the           
 Federal Fair Labor Standards Act as no longer being a volunteer but           
 being an employee.  He stated that they are trying to add to                  
 legislation that is already in place for educational institutions,            
 sanitary workers and religious organizations, so volunteer EMTs and           
 firefighters are not forced out of business.  He stated that these            
 organizations cannot afford to do things that are required of an              
 employer.  The people who volunteer are not asking that they do               
 those things and subsequently he would like to be able to keep                
 those volunteers.  He stated that the Governors's Advisory Council            
 on Emergency Medical Services also supports this idea.                        
                                                                               
 Number 1155                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if he could ask the Governor's Advisory               
 Council to provide the committee with a letter.                               
                                                                               
 Number  1167                                                                  
                                                                               
 MR. LEWIS stated that the council is meeting in Juneau at the end             
 of April and the Chairman of the council is Dr. John Hall.  He                
 stated that he would ask him for a letter.                                    
                                                                               
 Number  1183                                                                  
                                                                               
 CHAIRMAN ROKEBERG stated that hopefully the bill will pass before             
 that date but a letter would be helpful.  He thanked the several              
 thousand volunteers around the state and stated that it is the                
 committee's intent to fix any problems in the law that creates                
 undue burdens on the organization.                                            
                                                                               
 Number 1211                                                                   
                                                                               
 RANDY CARR, Chief, Labor Standards, Mechanical Inspection, Division           
 of Labor Standards and Safety, Department of Labor, testified via             
 teleconference from Anchorage that this legislation seeks to level            
 the playing field between the private non-profit emergency service            
 organizations that exist in some of the rural areas and in some               
 areas of Fairbanks and all of the public fire departments and                 
 emergency rescue services.  He stated that most of the public                 
 services have a voluntary arm but as a public sector entity are               
 exempt from the State Wage and Hour Act.  The private non-profit              
 organizations do not have that exemption; they have to qualify                
 under another exemption.  He stated that the only one that comes              
 close is AS 23.10.055 which addresses non-profit organizations but            
 limits them to religious, charitable, cemetery or educational                 
 organizations.  He stated that the charter and bylaws of the                  
 emergency services organizations do not define them as one of those           
 four types of non-profit.  He stated that by default they are in              
 the situation of not legally being able to accept volunteer labor             
 under the current status of the state law and they are covered                
 under the State Wage and Hour Act.  He stated that the department             
 has not had any wage claims but have identified that the exemption            
 does not cover the emergency services and there is gap in terms of            
 operations, causing them to have to consider themselves employers.            
 He stated that a situation that has arisen is that there needs to             
 be a person in the ambulance garage location overnight so that                
 should a call come in, they will have the equipment fired up and              
 ready when the volunteers get there.  He stated that these people             
 would do this in exchange for room and board but because they                 
 cannot avoid the minimum wage overtime requirement this would be              
 illegal.  He stated that the intent of this legislation is to allow           
 the private non-profit rescue and fire organizations to have the              
 same exempt status that allows them to accept volunteer labor.  He            
 stated that the Department of Labor does not oppose this                      
 legislation and it has minor impact across the state, because the             
 majority of volunteers work for public entities rather than private           
 entities.                                                                     
                                                                               
 Number 1419                                                                   
                                                                               
 REPRESENTATIVE HUDSON stated that a couple years back legislation             
 was passed regarding volunteer firefighters and policemen and asked           
 if volunteer policeman would be included in this legislation.                 
                                                                               
 Number 1444                                                                   
                                                                               
 MR. CARR  replied that it does not apply and he is not aware of any           
 private police organization that exists in the state.  To his                 
 knowledge they are all under the political subdivision's                      
 exemptions.                                                                   
 Number 1459                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if there were any instances where the state           
 tried to enforce the State Wage and Hour Act against any of the               
 organizations.                                                                
                                                                               
 Number 1469                                                                   
                                                                               
 MR. CARR replied there have not been any claims filed with the                
 department.  He stated that they have shown the organizations where           
 the pitfalls lay and gave them the opportunity to restructure the             
 operation to avoid the potential liability.  He stated that a small           
 wage claim could put these organizations under and the department             
 is tying to avoid this.  He stated that the department is trying to           
 work with the organizations to assure that they avoid a liability             
 that they can not afford.                                                     
                                                                               
 Number 1513                                                                   
                                                                               
 CHAIRMAN ROKEBERG stated that Mr. Carr indicated that the                     
 department does not oppose the bill and asked what would make him             
 support the bill.                                                             
                                                                               
 Number 1520                                                                   
                                                                               
 MR. CARR replied that as an historical matter the department does             
 not like to see any individual employee's rights to minimum wage or           
 overtime eroded.  He stated that the bill does that, but the                  
 department does believe that the impact is extremely small, which             
 is offset by the general public policy benefit that is affected by            
 the bill.                                                                     
                                                                               
 Number 1562                                                                   
                                                                               
 MARK JOHNSON, Chief, Community Health and Emergency Medical                   
 Services, Central Office, Division of Public Health, Department of            
 Health and Social Services, stated that the department supports the           
 intent of the legislation.  He stated that this bill makes it                 
 easier for volunteers to be reimbursed, which is one more step to             
 the ability to recruit new volunteers or to retain the volunteers             
 that are already in the system.  He stated that in most of rural              
 Alaska, the system is the volunteers.  He stated that in regard to            
 Representative Cowdery's question, volunteers do not get many                 
 benefits from the state.  He stated that Representative Hudson's              
 bill on worker's compensation was a help and there was a bill that            
 enabled volunteers in the unorganized areas to get Hepatitis B                
 vaccinations.  He stated that the department definitely supports              
 this legislation.                                                             
                                                                               
 Number 1625                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if the department supports this                       
 legislation.                                                                  
                                                                               
 MR. JOHNSON replied yes.                                                      
                                                                               
 CHAIRMAN ROKEBERG asked if he could send a letter stating the                 
 department's support.                                                         
                                                                               
 Number 1633                                                                   
                                                                               
 MR. JOHNSON replied that he believed he could.                                
                                                                               
 Number 1654                                                                   
                                                                               
 REPRESENTATIVE HUDSON made a motion to move HCSSB 137(L&C), 0-                
 LSO727, Version E, 4/10/97, zero fiscal note, with individual                 
 recommendations and asked unanimous consent.                                  
                                                                               
 CHAIRMAN ROKEBERG asked if there were any objections, hearing none,           
 HCSSB 137(L&C) moved out of the House Labor and Commerce Standing             
 Committee.                                                                    
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 1724                                                                   
                                                                               
 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing             
 at 3:54 p.m.                                                                  
                                                                               

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