Legislature(2007 - 2008)BELTZ 211

03/20/2008 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+= SB 263 ARCHITECTS, ENGRS, SURVEYORS BD/EXEMPTION TELECONFERENCED
Moved CSSB 263(L&C) Out of Committee
     CSHB 320(FIN)-SEARCH & RESCUE: CERTIFICATION/WORK.COMP                                                                 
                                                                                                                              
1:43:12 PM                                                                                                                    
CHAIR ELLIS announced  CSHB 320(FIN) to be  up for consideration.                                                               
He  said it  was the  first hearing  and he  didn't plan  to take                                                               
action today.                                                                                                                   
                                                                                                                                
1:43:34 PM                                                                                                                    
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
1:43:44 PM                                                                                                                    
MIKE PALOWSKI, aide for Representative  Meyer, sponsor of HB 320,                                                               
said  due  to  the  Alaska's geographic  distances  the  lack  of                                                               
manpower,  the state  has traditionally  relied on  volunteers to                                                               
assist the  Troopers in conducting search  and rescue operations.                                                               
The  question  has  consistently  been asked  why  fire  fighting                                                               
volunteers aren't  covered with workers' compensation  coverage -                                                               
since the  state does  rely on  them. They  looked at  what other                                                               
state  volunteers are  given analogous  coverage and  one of  the                                                               
first  discovered  was  volunteers assisting  the  Department  of                                                               
Military and  Veterans Affairs on  disaster relief.  Other states                                                               
provide workers' compensation coverage to such volunteers.                                                                      
                                                                                                                                
He said Representative  Meyer believes that for  these reasons it                                                               
is important  to provide workers' compensation  coverage to these                                                               
volunteers who participate in over 700 missions a year.                                                                         
                                                                                                                                
An  amendment   to  Section   1  of   the  bill   authorizes  the                                                               
commissioner of the Department of  Public Safety (DPS) to conduct                                                               
a training exercise for search and rescue volunteers.                                                                           
                                                                                                                                
A second amendment in Section 5  that was a compromise the bill's                                                               
sponsor came  to from  working with  the State  Municipal League.                                                               
They  found there  are two  levels of  workers' compensation  for                                                               
search and  rescue operations.  The first and  primary is  run by                                                               
the Troopers  - the one  the state  has control over.  The second                                                               
was  operations  run  by  a  municipality.  The  compromise  they                                                               
reached was that rather than  the state forcing municipalities to                                                               
provide  coverage,  it would  allow  municipalities  to elect  to                                                               
provide  coverage. This  would put  the impetus  and onus  on the                                                               
local borough assemblies or the  communities to decide what level                                                               
of coverage they want to provide.  The state will step up for its                                                               
volunteers as described in Section 6:                                                                                           
                                                                                                                                
     While on a training  mission operated in conjunction by                                                                    
     the Troopers  or a search  and rescue  mission overseen                                                                    
     by the Troopers  if a volunteer gets  injured they will                                                                    
     receive workers'  compensation as  a state  employee as                                                                    
     several other employee volunteers  in statute are given                                                                    
     coverage.                                                                                                                  
                                                                                                                                
SENATOR BUNDE  saw a fiscal  note which he thought  was expensive                                                               
and asked how this will impact insurance rates.                                                                                 
                                                                                                                                
1:47:13 PM                                                                                                                    
MR. PALOWSKI  answered that  Brad Thompson  from the  Division of                                                               
Risk Assessment  could speak to  how those rates  are calculated.                                                               
He thought  it was based  on actual  claim experience and  in the                                                               
last  year has  amounted to  $3,000. These  are fairly  competent                                                               
volunteers and their risk of injury is fairly low.                                                                              
                                                                                                                                
SENATOR  STEVENS said  they can  be covered  under municipalities                                                               
right now and asked how this bill changes that.                                                                                 
                                                                                                                                
MR. PALOWSKI  answered that it  doesn't change the  process; they                                                               
are covered  under boroughs. This  adds search and  rescue people                                                               
to the  list of people  a borough  can elect to  provide coverage                                                               
for (in Section 5).                                                                                                             
                                                                                                                                
SENATOR  STEVENS  referenced  the  sponsor  statement  that  said                                                               
municipalities  are   allowed  to   provide  coverage   to  their                                                               
volunteer fire  department...but not  to volunteers  that perform                                                               
search and rescue  operations and asked if that  was said because                                                               
those  volunteers were  covered under  the other  portion of  the                                                               
bill.                                                                                                                           
                                                                                                                                
MR.  PALOWSKI  responded  that  municipalities  currently  cannot                                                               
provide workers' compensation coverage  because search and rescue                                                               
volunteers are not  listed in the statute of  volunteers they are                                                               
allowed  to provide  coverage to.  A  separate part  of the  bill                                                               
allows the state to provide coverage for its own volunteers.                                                                    
                                                                                                                                
CHAIR ELLIS apologized for jumping  around to different bills and                                                               
went to SB 263.                                                                                                                 
     CSHB 320(FIN)-SEARCH & RESCUE: CERTIFICATION/WORK.COMP                                                                 
                                                                                                                              
1:50:22 PM                                                                                                                    
CHAIR  ELLIS  announced  CSHB  320(FIN) to  be  back  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
1:50:57 PM                                                                                                                    
SENATOR BUNDE asked what the additional premiums would be.                                                                      
                                                                                                                                
BRAD THOMPSON, Director, Division  of Risk Management, Department                                                               
of Commerce, Community & Economic  Development (DCCED), replied a                                                               
typical  premium is  assessed on  a per  $100 basis  of the  wage                                                               
earned, but volunteers have no  wage. The premium calculation for                                                               
a volunteer fireman  takes an assumed wage of  $2,000 and applies                                                               
the same rate as  would be applied to a paid  fireman. It ends up                                                               
being a couple of hundred dollars  a year per fireman. He assumed                                                               
a volunteer would get the same  if any premium would be assessed.                                                               
It's unclear whether  a volunteer would actually be  engaged by a                                                               
municipality.  The state,  however,  self insures  so  he has  an                                                               
indeterminate fiscal note,  but the state already as  a matter of                                                               
practice provides  protection to volunteers under  service to the                                                               
state for all  of its agencies. Through a  written agreement they                                                               
provide almost  as extensive  a benefit to  a volunteer.  Only if                                                               
there  is  a future  claim  would  that  cost  be borne  by  Risk                                                               
Management and  be factored  in the  future year  allocation from                                                               
the department.  It's an  indeterminate amount,  but it  could be                                                               
significant  if there  is a  fatality.  There have  been none  of                                                               
those, only three smaller events.                                                                                               
                                                                                                                                
1:53:24 PM                                                                                                                    
CHARLES SPRINGER, Search and Rescue,  said the purpose behind the                                                               
bill  is  to protect  volunteers  who  put themselves  and  their                                                               
families at risk.                                                                                                               
                                                                                                                                
1:54:11 PM                                                                                                                    
BILL  ROMBERG, Vice  Chair,  Alaska  Mountain Rescue,  Anchorage,                                                               
supported CSHB 320(FIN).                                                                                                        
                                                                                                                                
1:55:43 PM                                                                                                                    
LIEUTENANT  RODNEY DIAL,  State  Troopers,  Department of  Public                                                               
Safety  (DPS),   said  this  bill   would  make   the  department                                                               
responsible for  training volunteers  and it  would have  to make                                                               
sure it is appropriate and  up to certain levels. Also volunteers                                                               
need periodic  inspections to  make sure  they are  following the                                                               
training. The department does not have enough money to do this.                                                                 
                                                                                                                                
1:57:42 PM                                                                                                                    
SENATOR BUNDE  said he  was led  to believe  they normally  use a                                                               
number of  groups that  train themselves. Does  he want  to start                                                               
his own program?                                                                                                                
                                                                                                                                
LT. DIAL  replied they don't want  to see an environment  where a                                                               
weekend snow  machine adventure counts  for a  training exercise.                                                               
In the  past they didn't  have that  oversight, but the  bill now                                                               
says they  are responsible for  authorizing that training.  So it                                                               
must be up  to their standards. They don't want  them to get hurt                                                               
and don't want to pay for it if they do.                                                                                        
                                                                                                                                
SENATOR  BUNDE  questioned  the   need  to  make  the  department                                                               
responsible for the training.                                                                                                   
                                                                                                                                
2:00:07 PM                                                                                                                    
JERRY  KIFFER, Ketchikan  Volunteer  Rescue  Squad, supported  HB
320. He said  it is the largest leap forward  in search in rescue                                                               
that he has seen in Alaska in  his 30 years of being a volunteer.                                                               
He   said   the   training  throughout   Alaska   for   volunteer                                                               
professionals is truly  top-notch. He would be  negligent to send                                                               
one of his volunteers on an  authorized mission for the state and                                                               
not have  that person adequately  trained. This,  however, forces                                                               
the  search  and  rescue  community   to  do  its  training  with                                                               
"absolutely no insurance coverage  whatsoever." They have been in                                                               
business since 1948  and have had three minor  injuries, but that                                                               
liability  is out  there. The  new AS  23.30.246 section  is very                                                               
important to  them and  offered to help  with the  oversight. His                                                               
people spend  a minimum  100-150 hours a  year just  in training,                                                               
and a lot of  times it takes a lot of people to  do even a simple                                                               
operation.                                                                                                                      
                                                                                                                                
2:02:59 PM                                                                                                                    
NICK SZABO,  Kodiak Island Search  and Rescue, supported  HB 320.                                                               
They are a  volunteer organization that has a dog  search team, a                                                               
mountain rescue  team and a  ground search team. The  teams train                                                               
throughout the  year and respond  to calls from the  Troopers and                                                               
U.S. Coast Guard for activities  such as lost hunters and hikers,                                                               
field  accidents and  avalanche  victims.  Members conduct  these                                                               
activities at  some risk  of peril  and receive  no compensation.                                                               
They deserve  to have some  protection for their  livelihoods and                                                               
families for the service they perform for the state.                                                                            
                                                                                                                                
SENATOR  STEVENS asked  how many  incidents he  responds to  in a                                                               
normal year.                                                                                                                    
                                                                                                                                
MR. SZABO answered about 3 or 4 a year on the average.                                                                          
                                                                                                                                
SENATOR STEVENS said the work  they do is necessary and important                                                               
with so many hunters and hikers in the field.                                                                                   
                                                                                                                                
CHAIR ELLIS asked Mr. Palowski to work on a CS.                                                                                 
                                                                                                                                
SENATOR STEVENS asked if someone on  search and rescue goes on to                                                               
workers'   compensation,   how   the   actual   compensation   is                                                               
determined.                                                                                                                     
                                                                                                                                
MR. PALOWSKI suggested  bringing Paul Lisankie to  talk about the                                                               
compensation.                                                                                                                   
                                                                                                                                
2:06:17 PM                                                                                                                    
PAUL  LISANKIE,  Director,  Division  Of  Workers'  Compensation,                                                               
Department  of  Labor  and Workforce  Development  (DOLWD),  said                                                               
every year the  department formulates an average  weekly wage for                                                               
the state  so that is  put in  the compensation formula.  In 2008                                                               
that would  convert to $499.58/week  for a single person  with no                                                               
dependents;  and  $547.27/week for  a  married  person with  four                                                               
dependents. This bill  would make the calculation  easier, and it                                                               
would be one less thing for the division to battle over.                                                                        
                                                                                                                                
2:07:56 PM                                                                                                                    
SENATOR   BUNDE   said  it   is   absolutely   fair  for   anyone                                                               
participating in  a rescue  operation to  be covered  by workers'                                                               
compensation,  but   search  and   rescue  activities   are  also                                                               
sometimes a  hobby and he  had concerns about troopers  having to                                                               
approve  training  for  these  groups.   He  was  considering  an                                                               
amendment  to take  out that  responsibility and  asked what  the                                                               
sponsor would think.                                                                                                            
                                                                                                                                
2:11:17 PM                                                                                                                    
MR. PALOWSKI  replied this issue  had been discussed quite  a bit                                                               
and he  thought people might  misunderstand what Section  1 does.                                                               
It allows the  commissioner or his designee  to conduct training,                                                               
which  is  different  than  calling up  a  search  operation.  It                                                               
doesn't preclude a  group from performing training  on their own.                                                               
The  search and  rescue community  originally asked  for coverage                                                               
during training they ran and in  working with the DPS it was more                                                               
that you  start with  coverage during the  mission. Well,  if the                                                               
commissioner decides to bring these  groups together and organize                                                               
a training  mission that is  organized by  the state, run  by the                                                               
state, the  sponsor didn't believe that  was really fundamentally                                                               
any different  than an active mission.  So, there could be  a bit                                                               
of a disagreement  between the sponsor's office  and the troopers                                                               
over  how  many of  these  training  missions might  actually  be                                                               
conducted in a given year. But  at the same time, they understand                                                               
there are  more than  1,000 search and  rescue volunteers  in the                                                               
state.                                                                                                                          
                                                                                                                                
He  suggested the  committee talk  to  the DPS  about the  fiscal                                                               
note,  because  he  understood it  would  be  a  non-commissioned                                                               
position so  they wouldn't get  into the issue of  competing with                                                               
hiring  other  troopers.  The sponsor  believes  that  the  state                                                               
relies  on  these  volunteers  to  protect  people  in  the  back                                                               
country, so  he wanted  to make sure  the volunteer  community is                                                               
strong, that they are protected  and well-trained and coordinated                                                               
with the department.  He said using volunteers saves  the state a                                                               
lot of money in  terms of troopers who would be  forced to do the                                                               
same type of work.                                                                                                              
                                                                                                                                
LT.  DIAL commented  that the  training these  groups get  is top                                                               
notch and  they don't  have concerns with  that, but  unless they                                                               
have some oversight he didn't see  what would prevent two or more                                                               
people from  calling themselves a  rescue group when they  go out                                                               
snow machining for a weekend. The groups need to be approved.                                                                   
                                                                                                                                
SENATOR BUNDE  said he understood  that volunteers  are activated                                                               
by the department,  but he couldn't imagine  the department would                                                               
activate the two people who snow  machine and drink beer and call                                                               
themselves volunteers. Weren't they  going to activate recognized                                                               
search and rescue groups?                                                                                                       
                                                                                                                                
LT. DIAL replied that was correct.                                                                                              
                                                                                                                                
SENATOR  BUNDE  noted  that  the   department  calls  on  several                                                               
recognized  groups for  help, not  just anyone  who shows  up and                                                               
offers help.                                                                                                                    
                                                                                                                                
LT. DIAL  responded the concern  is that  it would stay  the same                                                               
regarding missions,  but coverage  would be extended  to training                                                               
and they have no involvement in training presently.                                                                             
                                                                                                                                
SENATOR BUNDE said that seems to be the problem.                                                                                
                                                                                                                                
2:16:05 PM                                                                                                                    
SENATOR STEVENS agreed this is a major issue.                                                                                   
                                                                                                                                
2:16:57 PM                                                                                                                    
CHAIR ELLIS asked if Mr. Palowski had any other comments.                                                                       
                                                                                                                                
MR. PALOWSKI  said he  was willing  to work  with members  on the                                                               
strictness of  the language in  Section 1  and how it  relates to                                                               
Section 6.                                                                                                                      
                                                                                                                                
CHAIR ELLIS said HB 320 would be held for further work.                                                                         
                                                                                                                                
SENATOR  BUNDE  said he  wanted  to  emphasize how  he  supported                                                               
people  who  are  volunteering for  the  state  getting  workers'                                                               
compensation.                                                                                                                   
                                                                                                                                
SENATOR STEVENS said people should be  covered when they are on a                                                               
search and  rescue mission and  that the  real issue seems  to be                                                               
the training exercise, and he  wanted the department to authorize                                                               
the training.                                                                                                                   
                                                                                                                                
CHAIR ELLIS  said there  was no further  business to  come before                                                               
the committee and adjourned the meeting at 2:18:53 PM.                                                                        

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