2004-02-16                     Senate Journal                      Page 2181
SB 338                                                                                            
SENATE BILL NO. 338 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act relating to actionable claims against state                                       
          employees; relating to the state's defense and                                            
          indemnification of its employees and former                                               
          employees with respect to claims arising out of                                           
          conduct that is within the scope of employment;                                           
          amending the Public Employment Relations Act                                              
          regarding claims against the state or state employees;                                    
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Law                                                         
                                                                                                    
Governor's transmittal letter dated February 13:                                                    
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to: (1) indemnification of                          
tort claims against state employees; and (2) the attorney general's                                 
decision whether to indemnify an employee and arbitration of that                                   
decision.                                                                                           
                                                                                                    
Current Alaska law addresses lawsuits against the state in AS                                       
09.50.250. However, the statutes fail to address a core concept of the                              
Federal Tort Claims Act (FTCA). Under the FTCA, if a lawsuit is filed                               
against a federal employee, and the attorney general of the United                                  
States certifies the employee was acting in the scope of employment,                                
the United States is substituted as the defendant for the employee. The                             
individual employee is no longer a defendant in the case. This bill                                 
adds this critical concept to Alaska law.                                                           
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-16                     Senate Journal                      Page 2182
This bill would allow state employees to carry out their duties                                     
knowing that if there is a lawsuit filed against them for an act or                                 
omission within the scope of their employment, the lawsuit will not                                 
proceed against them as an individual. They will not be subject to the                              
burdens court rules place on a "party" including being subject to an                                
award of costs and fees to a prevailing party. The public would benefit                             
as services would not be interrupted while state employees participate                              
in lawsuits.                                                                                        
                                                                                                    
The bill would further provide that the decision of the attorney general                            
whether to indemnify an employee is not subject to arbitration. An                                  
employee who is denied indemnification can contest that decision in                                 
the courts.                                                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor