HB 377-VOLUNTEER AMATEUR SPORTS OFFICIALS  3:23:20 PM   CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 377, "An Act exempting certain volunteer work by amateur sports officials from certain requirements of the Alaska Employment Security Act." 3:23:33 PM REPRESENTATIVE Bill STOLTZE, Alaska State Legislature, explained that HB 377 would establish an exemption status for volunteer amateur sports officials from the Alaska Employment Security Act, negating unemployment tax liability. Under current state law, amateur sports officials who receive any reimbursement for their volunteer services must pay unemployment tax despite the fact that compensation is only a minor stipend intended to assist with the costs of attendance. REPRESENTATIVE STOLTZE related that HB 377 reaches far beyond his district. This bill is for small non-profits and school organizations that use referees, primarily through associations. He related that government requires the collection of unemployment tax that has caused many issues. This bill has a narrow focus which is to solve issue of how to allow sports referees to continue to serve youth and other sports, not as employees, but as volunteers receiving minor stipends for small amounts of time. Collecting the tax inhibits small organizations from functioning with score keepers and referees. He said he is cognizant of "but not opening a big door" for employee contracting. 3:26:15 PM REPRESENTATIVE BUCH thought this bill is timely and long overdue. 3:26:38 PM MORGAN HOPSON, Staff, Representative Bill Stoltze, Alaska State Legislature, explained that this bill is designed to help volunteers who receive less than $1,500 per year for incidental expenses. She explained that this bill would help amateur sports officials who perform duties after school or during the season, not as their main employment. These officials would be exempt from unemployment insurance. Officials pay for many expenses such as uniforms, classes, transportation, and registration fees. This bill would create less work for the amateur sports officials. 3:29:02 PM REPRESENTATIVE T. WILSON asked how the sponsor arrived at the $1,500 compensation limit. MS. HOPSON explained that $1,500 is a federal limit before unemployment insurance would need to be collected. This bill is to cover people who perform duties part-time. Some people are employed as fulltime referees or sports officials and this bill would not provide them with an exemption from unemployment insurance tax. REPRESENTATIVE T. WILSON asked whether this would cover the doctor or nurse required to be present at games as long as their fees were under $1,500. MS. HOPSON related that doctors and nurses are not covered under the bill. This bill would only affect impartial sports officials such as referees. 3:30:15 PM REPRESENTATIVE HOLMES asked whether this bill excludes teachers. She recalled that teachers coach a variety of sports after school but are often employees of the school district. MS. HOPSON agreed. She explained that the employment does not include those who normally perform work as a teacher or coach. MS. HOPSON, in response to Representative Buch, referred to the language on page 6, lines 27-30. 3:31:34 PM GARY MATTHEWS, Executive Director, Alaska School Activities Association (ASAA), stated that ASAA strongly supports the bill. He referred to the $1,500 limit to cover costs. He stated that a football official must buy equipment and get licensed which costs $400 to $500 to start the season. This sum does not include transportation or other costs, he stated. He offered his belief that the bill would pass muster with the federal government. Over the years questions have arisen and since his office licenses officials for youth leagues the office follows the national federation rules. Many officials are members of the local organizations and non-profit organizations. Some sports officials, particularly in smaller communities, are not affiliated with a group and do not belong to local sports organizations. These volunteer sports officials are responsible to train themselves. He related the ASAA does provide some training materials to sports officials. 3:34:45 PM MR. MATTHEWS stated ASAA supports this bill which will clarify part-time sports officials with respect to unemployment insurance tax. He offered his belief that this is crucial for Alaska. He said he is happy this bill is getting a hearing. His office in Anchorage receives many calls but cannot provide legal advice to determine sports officials' status with the Department of Labor & Workforce Development. He hoped the bill passes so it can clarify the status of sports officials. 3:35:50 PM REPRESENTATIVE HOLMES asked whether the Department of Law had any concerns about the bill. TOBY NANCY STEINBERGER, Assistant Attorney General, Labor and State Affairs Section, Department of Law (DOL), answered that she did not have any concerns at this time. CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 377. 3:36:41 PM REPRESENTATIVE HOLMES related she has heard concerns from her constituents about this issue. She stated that sports helps adults and kids get moving. She thanked the sponsor for work on this bill. CHAIR OLSON agreed. REPRESENTATIVE STOLTZE said many people are affected by the bill although his office did not hear from lots of people. He explained that many people appreciate the bill moving. 3:38:43 PM REPRESENTATIVE LYNN moved to report HB 377 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 377 was reported from the House Labor and Commerce Standing Committee. 3:39:24 PM The committee took an at-ease from 3:39 p.m. to 3:41 p.m.