Legislature(2007 - 2008)BELTZ 211

04/12/2007 01:30 PM Senate LABOR & COMMERCE


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01:32:51 PM Start
01:33:51 PM SB115
01:36:54 PM HB34
01:38:42 PM SB117
02:29:45 PM Affordable Housing Issues
02:52:10 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SB 117 WORKERS' COMP: DISEASE PRESUMPTION
Heard & Held
Bills Previously Heard/Scheduled
= SB 124 ALASKA WORKFORCE INVESTMENT BD ALLOCATION
Scheduled But Not Heard
= SB 115 GIFT CARDS
Moved CSSB 115(STA) Out of Committee
= HB 34 SALES BY WINERY LICENSEE
Moved HB 34 Out of Committee
Overview: Affordable Housing
Dan Fauske, Executive Director of the
Alaska Housing Finance Corporation
           SB 117-WORKERS' COMP: DISEASE PRESUMPTION                                                                        
1:38:42 PM                                                                                                                    
CHAIR ELLIS announced SB 117 to be up for consideration.                                                                        
                                                                                                                                
SENATOR FRENCH, sponsor  of SB 117, introduced  Andy Moderow, his                                                               
staff, who  was also available to  comment on this bill.  He then                                                               
read the  sponsor statement for  the record.  It said SB  117 was                                                               
brought  to them  because each  year  citizens throughout  Alaska                                                               
rely on professional and volunteer  firefighters to come to their                                                               
assistance in times of emergency.  They work on everyone's behalf                                                               
to  save lives  and property  often  at great  personal risk.  In                                                               
doing so,  they are exposed  to toxic chemicals like  benzene and                                                               
carcinogenic  substances such  as  solvents,  dyes, asbestos  and                                                               
high  levels of  carbon  monoxide or  other  substances that  can                                                               
affect the heart and lungs.                                                                                                     
                                                                                                                                
SB 117  would create a  presumption in the  Workers' Compensation                                                               
Program that a  firefighter with at least seven years  on the job                                                               
who has passed health screen  exams earlier in their careers will                                                               
be  provided with  benefits  if they  contract  certain forms  of                                                               
pulmonary or  heart disease or cancers  - as it will  be presumed                                                               
to  be  a  result  of   their  occupation.  This  presumption  is                                                               
restricted  to diseases  known to  occur  with greater  frequency                                                               
among firefighters and  the date by which a claim  has to be made                                                               
will also  capped at 60  months from the firefighter's  last date                                                               
of employment.                                                                                                                  
                                                                                                                                
Forty-one  states  currently  provide some  form  of  presumptive                                                               
coverage  for firefighters.  Although  arguments  have been  made                                                               
that this coverage  will be prohibitively expensive,  the fact is                                                               
that  this has  not been  the case  elsewhere. For  instance, the                                                               
State of  California has over  30,000 paid firefighters  and more                                                               
than 30,000  volunteers, but the  addition of  cancer presumptive                                                               
benefits has  had "no  impact" on  the actuarial  assumptions for                                                               
its retirement system.  Similarly, in Illinois, in  the six years                                                               
following provision  of presumption  of cancer  for firefighters,                                                               
claims  were actually  8.3 percent  lower than  in the  six years                                                               
prior to passage.                                                                                                               
                                                                                                                                
SENATOR FRENCH summarized that firefighters  place their lives at                                                               
risk on behalf  of us all and  in return, they should  be able to                                                               
use Workers' Comp  benefits for illnesses they incur  as a result                                                               
of the work they do.                                                                                                            
                                                                                                                                
1:41:14 PM                                                                                                                    
SENATOR BUNDE  asked how early a  screening exam would be  in the                                                               
career of a firefighter.                                                                                                        
                                                                                                                                
SENATOR  FRENCH   replied  that  those  particularities   can  be                                                               
described in  regulation so they can  be taken up by  people with                                                               
more intimate knowledge in this area.                                                                                           
                                                                                                                                
1:42:01 PM                                                                                                                    
SENATOR STEVENS asked  what would happen after  the 60-month cut-                                                               
off period for filing a claim.                                                                                                  
                                                                                                                                
SENATOR FRENCH replied  the idea is after you have  left your job                                                               
you should  have workers' compensation  coverage for a  period of                                                               
time  and the  person  paying  for the  policy  should have  some                                                               
knowledge of when he's off the hook.                                                                                            
                                                                                                                                
1:43:10 PM                                                                                                                    
MARK   DRYGAS,   President,  Alaska   Professional   Firefighters                                                               
Association, supported SB 117 stating  that numerous studies have                                                               
shown increased risk of cancer  and cardiovascular and infectious                                                               
diseases amongst fire fighters.                                                                                                 
                                                                                                                                
1:44:49 PM                                                                                                                    
He  reaffirmed that  many  states now  have  some presumption  of                                                               
disability.  In   the  first  six   years  Oklahoma   had  cancer                                                               
legislation, it paid 22 claims statewide  or 6 percent of its 378                                                               
disability claims. This  averages to four cancer  claims per year                                                               
or  .03 percent  at  an average  cost to  the  pension system  of                                                               
$10,400 per total cancer claim.  He said Oklahoma has 3400 career                                                               
firefighters and 9000 volunteers.                                                                                               
                                                                                                                                
1:45:34 PM                                                                                                                    
MR.  DRYGAS said  Nevada paid  three cancer  claims in  the first                                                               
four  years  the  legislation  was enacted.  None  of  the  cases                                                               
included lung cancer which is  covered under separate litigation.                                                               
Nevada  has 1790  career firefighters  and 2200  volunteers. This                                                               
averages less than  one claim per year for a  .02 percent rate of                                                               
cancer claims.                                                                                                                  
                                                                                                                                
He  said  the numbers  from  Rhode  Island  show  a rate  of  .02                                                               
percent, which  seems to be the  common rate. Florida has  a rate                                                               
of .034 percent. California has  the highest rate at .07 percent.                                                               
He  estimated that  Alaska would  have a  rate around  one person                                                               
every three  years. The  only time  this will  come into  play is                                                               
when a person has a life-threatening disease.                                                                                   
                                                                                                                                
MR. DRYGAS said  this coverage is very  important to firefighters                                                               
because they take the risk for  everyone. The problem has to be a                                                               
pretty bad  before it comes into  play and it's hard  to scam it.                                                               
He pointed  out that OSHA  doesn't regulate what is  in someone's                                                               
garage  and  all  hazards  aren't  known at  the  time  they  are                                                               
responded  to. Toxic  accumulations of  them are  also a  serious                                                               
issue.                                                                                                                          
                                                                                                                                
SENATOR  STEVENS  asked  if volunteer  firefighters  are  covered                                                               
under  the  Workers' Compensation  program  and  how their  seven                                                               
years is figured out.                                                                                                           
                                                                                                                                
MR.  DRYGAS answered  that his  understanding  is that  volunteer                                                               
firefighters are  covered under state workers'  compensation law,                                                               
but he  couldn't really speak  for them.  Seven years on  the job                                                               
would have to be defined  later in regulation and most volunteers                                                               
don't serve that long.                                                                                                          
                                                                                                                                
1:50:22 PM                                                                                                                    
DOMINICK LEZANO,  President, Fairbanks  Firefighters Association,                                                               
said  he is  a firefighter  paramedic and  supported Mr.  Drygas'                                                               
testimony.   It  is   very  important   for  firefighters,   both                                                               
professional and  volunteer, to know  they have coverage  as they                                                               
face  unknowns every  day.  The basis  of  presumption saves  the                                                               
family heartache  and difficulty  when a firefighter  contracts a                                                               
cancer from what he does in his job.                                                                                            
                                                                                                                                
1:53:27 PM                                                                                                                    
ROD HARRIS, firefighter with the  City of Anchorage, supported SB
117 and  said it  had been  adopted by 41  other states.  He said                                                               
this  coverage will  not increase  the number  of claims,  but it                                                               
will  change  their presumptive  status.  If  a firefighter  gets                                                               
sick,  he   will  file  a   claim  regardless  of   whether  this                                                               
legislation passes or  not. This defines the  process and reduces                                                               
the liability to  the workers' compensation system  and will save                                                               
the state from having multi-million dollar litigation.                                                                          
                                                                                                                                
He said  that every day  firefighters respond to calls  when they                                                               
will be exposed to both known  and unknown hazards. He noted that                                                               
the fire chiefs also support  this legislation, because most fire                                                               
departments recognize the risks.                                                                                                
                                                                                                                                
1:56:18 PM                                                                                                                    
ERIC TULAK,  firefighter with Anchorage Fire  Department, said he                                                               
would  first  answer  Senator Bunde's  question  about  when  the                                                               
medical exam would  happen and how long it would  be good for. At                                                               
this point,  the bill just says  it will be at  some point during                                                               
the career  that shows them  to be disease-free.  Specifics still                                                               
need to  be addressed. He  explained that  Anchorage firefighters                                                               
are lucky  enough to  have annual physicals.  Three of  its older                                                               
individuals have had cancer and  all three are in remission. They                                                               
were shown to be cancer-free upon their initial exam.                                                                           
                                                                                                                                
In answer to  Senator Stevens' question about  what happens after                                                               
five years,  Mr. Tulak said when  the bill was written  a disease                                                               
was considered to no longer  be presumptive after five years. The                                                               
five years  is based upon  other state and Canadian  province law                                                               
and upon latency periods of diseases listed in the bill.                                                                        
                                                                                                                                
He explained  that when the  bill was introduced last  session as                                                               
HB 31,  it had  some definitions  for volunteer  firefighters and                                                               
their training and time on the job is recorded.                                                                                 
                                                                                                                                
1:58:13 PM                                                                                                                    
MR. TULAK  said he would now  go to his testimony  and talk about                                                               
what is called the Healthy  Worker Effect that compares different                                                               
groups and control  groups in any epidemiological  study. If they                                                               
are not well matched, the  results aren't as meaningful. For that                                                               
reason groups  are matched for  age, sex and race,  and lifestyle                                                               
factors like smoking and alcohol  consumption. The Healthy Worker                                                               
Effect  is  accentuated with  the  use  of firefighters  who  are                                                               
extremely  healthy  individuals for  the  most  part often  being                                                               
compared to policemen.  The most relevant studies  show that they                                                               
are  getting these  cancers and  diseases at  a higher  incidence                                                               
than other groups. For example,  firefighters get brain cancer at                                                               
an 88 percent higher rate  than police officers; 111 percent more                                                               
frequently for  bladder cancer; 227  percent more  frequently for                                                               
non-Hodgins  lymphoma;  and  270   percent  more  frequently  for                                                               
leukemia.                                                                                                                       
                                                                                                                                
1:59:45 PM                                                                                                                    
He also  wanted to address  claims that this bill  would increase                                                               
the number of claims filed, but  he asked if that means there are                                                               
first-responders  suffering  from   these  diseases  who  already                                                               
aren't  making  these claims.  He  also  thought it  ironic  that                                                               
people think there would be frivolous claims.                                                                                   
                                                                                                                                
2:01:23 PM                                                                                                                    
JEFF BRIGGS,  Alaska Professional Firefighters  Association, said                                                               
he is also an Anchorage  firefighter. He stated that thousands of                                                               
people  around  the  state  every   year  are  touched  by  first                                                               
responders by  merely dialing 911  and this  is a small  token of                                                               
appreciation for  them. He said  the bill  has been written  in a                                                               
fiscally  responsible way  and for  example, the  state of  Rhode                                                               
Island paid  six claims  in the  first eight  years. It  has 2200                                                               
career firefighters  and 2800 volunteers.  In Alaska,  that would                                                               
equate to about one claim every four years.                                                                                     
                                                                                                                                
2:04:08 PM                                                                                                                    
JEFF  BUSH, Executive  Director, Alaska  Public Entity  Insurance                                                               
(APEI), said  APEI represents  schools and  cities in  Alaska and                                                               
insures 18  municipalities; approximately 150 personnel  would be                                                               
affected by  this bill. He  opposed the bill saying  the workers'                                                               
compensation  system is  already designed  to cover  the diseases                                                               
that  are  listed. It  now  requires  only  a minimal  amount  of                                                               
evidence of  a link  between the occupation  and the  disease for                                                               
coverage to  attach. There is  no doubt  this bill will  cost the                                                               
state and  municipalities money and  that some  firefighters will                                                               
develop these diseases without the exposure.                                                                                    
                                                                                                                                
This bill will complicate appeals  because it creates issues that                                                               
will need litigation. It requires  medical screenings and the 200                                                               
municipalities  with  volunteers  will  have  to  pay  for  their                                                               
screenings. The cost is just not worth it.                                                                                      
                                                                                                                                
2:07:29 PM                                                                                                                    
SENATOR  BUNDE asked  if municipalities  pay for  their volunteer                                                               
firefighters' workers' compensation.                                                                                            
                                                                                                                                
MR.  BUSH replied  they  do and  if  there is  a  claim they  are                                                               
compensated at the average rate of the position they serve in.                                                                  
                                                                                                                                
2:07:54 PM                                                                                                                    
SENATOR STEVENS  asked if  certain cancers can  be shown  to have                                                               
some connection with on-the-job exposure.                                                                                       
                                                                                                                                
SENATOR FRENCH  replied no, but  this bill sets up  a presumption                                                               
that the  disease was caused  through work. If the  insurer could                                                               
demonstrate a person smoked two packs  a day and engaged in other                                                               
risky  lifestyle behaviors  that would  more readily  account for                                                               
the disease,  the insurer would  win and a firefighter  would not                                                               
be covered.                                                                                                                     
                                                                                                                                
SENATOR  BUNDE  asked if  this  measure  would apply  to  retired                                                               
firefighters as  well, giving them  coverage under  both workers'                                                               
compensation  and retirement.  He also  wanted to  hear from  the                                                               
Division of  Insurance on insurance  rates. He also saw  the need                                                               
to flesh out  how many physicals one would actually  have to take                                                               
and  to  investigate any  presently  unknown  additional costs  -                                                               
because everyone  is saying  firefighters have  a higher  rate of                                                               
disease.                                                                                                                        
                                                                                                                                
2:11:25 PM                                                                                                                    
CHAIR  ELLIS said  those  were  all good  points  and he  thanked                                                               
people for their testimony and  the firefighters for their public                                                               
service. He said SB 117 would be held over.                                                                                     

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