Legislature(2005 - 2006)BELTZ 211
04/20/2006 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB439 | |
| SB282 | |
| SB315 | |
| HB338 | |
| HB31 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 31 | TELECONFERENCED | |
| + | HB 338 | TELECONFERENCED | |
| *+ | SB 315 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 439 | TELECONFERENCED | |
| += | SB 282 | TELECONFERENCED | |
CSSSHB 31(FIN)-WORKERS' COMP: DISEASE PRESUMPTION
CHAIR CON BUNDE announced CSSSHB 31(FIN) to be up for
consideration.
REPRESENTATIVE TOM ANDERSON, sponsor of HB 31, explained that
the bill has to do with workers' compensation for firefighters
and first responders. These folks are basically enduring
exposure on a daily basis to smoke, heat, and various toxic
substances. As a result, they are more likely to contract heart
disease, cancer and other related problems. Since firefighters
assume the roll of the state's leading providers of emergency
medical services, they are also exposed to infectious diseases.
Recognizing this linkage, 38 states have enacted a presumptuous
law, which presumes that cardiovascular and infectious diseases
and certain cancers are job-related for purposes of workers'
compensation and disability retirement unless proven otherwise.
The Firefighters Association asked him for this legislation. It
is fair and cost effective in the context that so few
firefighters have ever made this claim; and it will not affect
the risk pool.
1:55:08 PM
REPRESENTATIVE ANDERSON said that most states have acknowledged
that the occupational hazards attributed to firefighting have
presumptive disabilities laws, which is why 38 other states have
some form of this. Alaska firefighters regularly respond to
HAZMAT incidences involving chemical, radiological and
biological hazards.
He said that the cancers covered are exposure-specific. He
explained that two firefighters went to enough fires over the
course of their careers that suddenly one came up with brain
cancer and one developed bladder cancer. While those cancers are
mostly hereditary, these men didn't have that in their
hereditary records and suddenly developed it. It was believed to
be from their service and at least one of them wasn't covered.
He mentioned that having this coverage would also be a good
recruitment tool.
CHAIR BUNDE asked if a smoker could receive benefits under this
coverage if he developed lung cancer and was a firefighter also.
REPRESENTATIVE ANDERSON replied that language on page 3, lines
16 - 18, indicated that as a smoker, he wouldn't qualify.
1:57:44 PM
JEFF BUSH, Executive Director, Alaska Public Entity Insurance,
opposed HB 31. His organization is a non-profit pool that
insures 18 Alaskan municipalities that employ 150 people who
would be affected by this legislation. He referenced a letter in
the committee packets from Kevin Smith, Alaska Municipal League
Joint Insurance Association - the other pool that does municipal
insurance - that accurately reflected his position, which was
based purely on financial considerations. He said it would
adversely affect the insurance rates for municipalities. It
wouldn't affect the risk pool because the state and
municipalities are essentially self-insured or belong to self-
insured pools.
His major concern was that the state's workers' compensation
system was designed with a lot of presumptions in favor of
coverage and in most cases there already is coverage. This bill
extends that workers' compensation coverage to some cases where
the disease the person develops is truly not work-related and
gives a presumption to firefighters and other emergency
personnel that people in other occupations don't have.
2:00:05 PM
He said Mr. Smith's letter estimated the cost of coverage would
increase by 10 to 20 percent. The Division of Risk Management
pointed out in its fiscal note that the presumption would
require a lot of sorting out about when it would and wouldn't
apply and, therefore, increase litigation, which would add more
costs. Required medical screenings for emergency personnel and
firefighters in order to prequalify for this coverage would cost
more, as well - an additional $8 million for municipalities in
the first year alone. In general, Mr. Bush said that workers'
compensation costs are always going up and they are going up for
municipalities just like they are for everyone else and this
just adds to the cost.
CHAIR BUNDE asked if the prescreening cost would be borne by the
employee or potential employee.
MR. BUSH replied no, not as the bill is written now.
2:01:48 PM
TOM BOEDEKER, City Manager, Soldotna, said he had some concerns
in general with the premise that firefighters have more risk
than medical workers and others in hazardous professions. This
presumption would have to be extended to those professionals as
well, and he thought that was a door best left closed. He also
opined the reason that the number of people who applied for this
was minimal was because a presumption in their favor didn't
exist. He thought that would change significantly if this
measure went forward.
MR. BOEDEKER also had questions about the additional expense
that would be associated with pre-employment physicals that
currently don't include screening for cancer and other
conditions.
2:04:49 PM
MIKE DAVIDSON, Legislative Liaison, Alaska Professional
Firefighters' Association, supported HB 31. Many of the diseases
they are discussing don't result from a single exposure to a
known carcinogen, but rather to continuous exposure. Sometimes
emergency response personnel are exposed to things such as
blood-borne pathogens, but aren't aware of it until after the
fact.
He said that firefighters and law enforcement and military
personnel are very health conscious and are healthier than the
average populous. Because of this "healthy worker effect" many
statistics compared firefighters to police officers.
Firefighters in American acquire and die of brain cancer at a
rate that is 88 percent greater than police officers or 109
percent greater than the normal populace. They acquire bladder
cancer at an 111 percent greater rate than police and a 319
percent greater rate than the average populace; they acquire
non-Hodgkin's lymphoma at a 227 percent greater rate than police
and acquire leukemia at a 270 percent greater rate than the
police. They acquire skin cancer at a nearly three times greater
rate than the average populace.
MR. DAVIDSON said the bill was focused so it couldn't be applied
everywhere. To qualify for the cancer provisions, you have to
have served at least 10 years as a firefighter, based on
documented cases of exposures and cancers. The presumptive
coverage only extends for a certain period of time after
finishing work - not to exceed 60 months - and is based on years
of work. An exclusion provision was established for known
tobacco users and an employer could refute any claim with a
preponderance of evidence including the use of tobacco products,
physical fitness, weight, lifestyle, heredity factors and
exposure from other employment or non-employment activities.
The bill doesn't require employers to provide physicals. It does
say you don't qualify for the presumption if you don't have an
entry-level physical. He thought that provision would provide
protection for the employer because it would create a base line
for contagious diseases prior to beginning a person's
employment.
MR. DAVIDSON argued that he thought this bill would decrease
litigation. People with terminal illnesses have had to fight the
system in their final months as the exact date of exposure was
established. The reality is that the cause is not from a simple
single toxic event, but rather continuous exposure.
Most states have a legal principle called the "fireman's rule"
that says because firefighters and police officers are asked to
respond to situations that are beyond their control, they are
afforded less protection when arriving at those situations than
other occupations. Because of that, they deserve increased
protections from the results of that response. An example of
this principle being used is the 2002 Alaska Supreme Court
decision, Moody v. Delta Western.
MR. DAVIDSON said that the majority of other occupations, like
steel working and road construction, are regulated by OSHA
[Occupational Safety and Health Administration] and NIOSH
[National Institute for Occupational Safety and Health] that
establish safety standards in the workplace. But it is
impossible for a firefighter to eliminate absorption of toxic
byproducts in his work environment - the worst exposure risk
being through the skin. He concluded saying that this bill would
tremendously impact the families of the small number of people
it would affect.
2:15:02 PM
KEVIN SMITH, Executive Director, Alaska Municipal League's Joint
Insurance Association, said the association is a not-for-profit
self-insurance mechanism for cities, boroughs and school
districts in Alaska. He said the bill as drafted turns
presumption on its head - but only for certain employees and
certain conditions. As it is now, a presumption exists in favor
of compensability on all claims and the presumption is overcome
by substantial evidence to the contrary. Under the standard in
HB 31, to avoid the presumption, the employer must disprove the
claim by a preponderance of evidence. So it shifts the burden of
proof from the plaintiff to the defendant.
2:17:35 PM
MR. SMITH said the state's workers' compensation system already
covers claims that are clearly work-related, but the things
contemplated in HB 31 have many life style and hereditary
causes. He referenced a National Fire Protection Association
study that showed that 75 percent of fatalities in the fire
service are heart attacks and most of the workers had
preexisting conditions. It was a call to arms for fire
departments to start recruiting people in better condition. They
are automatically covered if they have a heart attack picking up
a book with no consideration of diet, exercise or heredity.
2:18:52 PM
Regarding the comment that 38 other states have laws like this,
he remembered growing up here that we don't care how they do it
outside. He thought that many states had negotiated language
like this in their pension agreements and that 38 states
adopting this language was an exaggeration. He also thought the
timing for this issue was poor considering that the workers'
compensation system was in the process of getting fixed.
CHAIR BUNDE asked if firefighters have traditional health
insurance.
MR. SMITH replied yes, particularly the career firefighters.
2:20:14 PM
DAVE TALERICO, Mayor, Denali Borough, agreed with Mr. Smith's
comments. He said that traditional workers' compensation would
cover any legitimate on-the-job injuries for everyone. He was
particularly troubled by section (c). He concluded saying he
opposed this bill.
CHAIR BUNDE said he would set the bill aside.
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