04/06/1993 08:35 AM House FIN

  HOUSE BILL NO. 221                                                           
                                                                               
       "An Act relating to workers' compensation for volunteer                 
       ambulance attendants, police officers, and fire                         
       fighters; and providing for an effective date."                         
                                                                               
  Representative Hudson explained that House Bill 221 was                      
  introduced to clarify workers' compensation statutes that                    
  have been the cause of much confusion or misinterpretation,                  
  particularly with regard to benefits for volunteers.  He                     
  emphasized that volunteers are extensively employed.  He                     
  noted that workers' compensation benefits are intended,                      
  subject to minimum and maximum limits, to replace the lost                   
  wages of injured workers.  Section 1 of HB 221 recognizes                    
  that volunteers should receive wage replacement based on the                 
  actual wages lost or the comparable wage they would receive                  
  were they paid employees rather than volunteers.  Current                    
  law limits wage loss benefits for volunteer fire fighters,                   
  for example, who may have high earning capacity in their                     
  regular employment, to the benefits based on the wage paid a                 
  carrier fire fighter.  House Bill 221 corrects the                           
  inequities in benefit calculations for volunteer ambulance                   
  attendants, police officers and fire fighters by calculating                 
  compensation based on the higher wage earned.                                
                                                                               
  Representative Hudson observed that section 2 of HB 221 will                 
  extend coverage for volunteer fire fighters.  In the past                    
  year, compensation benefits for volunteer fire fighters,                     
  while engaged in fire department activities other than                       
  responding to emergencies, has been questioned.  Since                       
  "employees" are covered for injuries arising out of and in                   
  the course of employment, volunteer fire fighters are                        
  similarly covered.  He asserted that AS 23.30.243 has been                   
  misinterpreted to limit coverage only to those instances                     
  where the volunteer was responding to an emergency.  Section                 
  2 of HB 221 amends AS 23.30 by adding a new section that                     
  defines volunteer ambulance attendants, police officers and                  
  fire fighters as "employees."                                                
                                                                               
  Co-Chair Larson asked how reimbursement would be determined.                 
  Representative Hudson pointed out that rates are set by                      
  formula in AS 23.31.75.  The weekly rate will be based on                    
  the individuals employment.  The maximum amount an                           
  individual would be reimbursed is $700 dollars.                              
                                                                               
  Representative Martin asked how insurance claims would be                    
  handled.  Representative Hudson clarified that volunteers                    
  become temporary employees of the municipality.  The                         
  municipality carries the insurance.  The legislation will                    
                                                                               
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  only specify that volunteers will be compensated comparable                  
  to the full time employee.  Costs will be paid by the                        
  municipality up to the cap.                                                  
                                                                               
  Representative Hudson explained that section 3 repeals AS                    
  23.30.092.  This statute has been interpreted to mean that a                 
  municipality "may" provide workers compensation coverage for                 
  volunteers.  Conversely, it may be incorrectly interpreted                   
  to mean that a municipality may elect not to provide                         
  coverage. In reality, this section provides that an                          
  alternative policy may substitute for a workers'                             
  compensation policy so long as the benefits are equal or                     
  better than a statutory workers' compensation policy.                        
  However, this section has done nothing but cause confusion                   
  and I believe repealing it will clarify that all volunteers                  
  who meet the definition in AS 23.30 must be covered by                       
  workers' compensation.                                                       
                                                                               
  JOHN GEORGE, LOBBYIST, ALASKA STATE FIRE FIGHTERS                            
  ASSOCIATION stated that the employer of the volunteers'                      
  regular employment has no involvement with the insurance or                  
  injury costs incurred by a volunteer.   The current level of                 
  reimbursement for volunteer injury is based on the salary of                 
  an entry level fire fighter.  The maximum benefit a                          
  volunteer could be eligible for is $36,000 a year.                           
                                                                               
  Representative Hanley asked if a municipal fiscal note                       
  should be attached.  Representative Hudson stated that, he                   
  understood that, the impact to municipalities would be                       
  insignificant.                                                               
                                                                               
  KENT SWISHER, ALASKA MUNICIPAL LEAGUE concluded that since                   
  the legislation contains maximum caps, municipalities'                       
  concerns are not severe.  The Alaska Municipal League                        
  supports compensation for accidents that occur during                        
  training.                                                                    
                                                                               
  Representative Grussendorf observed that municipalities                      
  would be mandated to carry workers' compensation for                         
  volunteers.  Mr. George pointed out that current law                         
  requires that municipalities provide workers' compensation                   
  or another policy of equal or greater benefits.                              
                                                                               
  Representative Martin noted that police department and                       
  emergency medical volunteers would also be covered.                          
                                                                               
  Representative Foster MOVED to report HB 221 out of                          
  Committee with individual recommendations and with the                       
  accompanying fiscal note.  There being NO OBJECTION, it was                  
  so ordered.                                                                  
                                                                               
  HB 221 was reported out of Committee with individual                         
                                                                               
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  recommendations and with two zero fiscal notes by the                        
  Department of Administration and the Department of Labor.