Legislature(2007 - 2008)BELTZ 211

05/03/2007 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 94 SERVICES FOR THE BLIND TELECONFERENCED
Heard & Held
+ HB 170 INSURANCE TELECONFERENCED
Moved CSHB 170(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 117 WORKERS' COMP: DISEASE PRESUMPTION TELECONFERENCED
Heard & Held
+= SB 99 POLICE STANDARDS COUNCIL MEMBERSHIP TELECONFERENCED
Scheduled But Not Heard
+= HB 136 DENTAL HYGIENISTS TELECONFERENCED
Moved CSHB 136(FIN)(title am) Out
           SB 117-WORKERS' COMP: DISEASE PRESUMPTION                                                                        
                                                                                                                              
1:45:01 PM                                                                                                                    
CHAIR  ELLIS announced  SB 117  to  be up  for consideration.  He                                                               
asked Mr.  Moderow to review  the subject and take  the committee                                                               
through the proposed committee substitute.                                                                                      
                                                                                                                                
ANDY MODEROW,  staff to Senator  French, commented on SB  117 for                                                               
the sponsor.  He explained  that this  bill is  about presumptive                                                               
disability  for certain  classes  of first  responders. It  would                                                               
create a  presumption that certain  diseases that are  found more                                                               
often  in firefighters  are work-related.  The proposed  CS would                                                               
make it very clear that the  employer would not have to cover the                                                               
cost of the qualifying medical  exam. However, it does provide an                                                               
option for an individual who is  not provided with a medical exam                                                               
to get  it on his  own. The  presumption would not  apply without                                                               
this baseline exam.                                                                                                             
                                                                                                                                
1:46:55 PM                                                                                                                    
ROD  HARRIS, Alaska  Professional Firefighters  Association, said                                                               
they supported SB  117. However, he wanted them  to remember that                                                               
every engineering  device that has  been invented to  improve the                                                               
health of firefighters has been  implemented, but until something                                                               
is  invented  that  will  completely  encapsulate  a  firefighter                                                               
protecting them  from exposure to the  significant carcinogens in                                                               
smoke, they will be constantly exposed to them.                                                                                 
                                                                                                                                
1:49:02 PM                                                                                                                    
MIKE  DAVIDSON,  Alaska Professional  Firefighters'  Association,                                                               
supported  SB  117. He  stated,  "It  provides  a safety  net  of                                                               
protections  that currently  doesn't  exist." The  nature of  the                                                               
firefighter's  job is  that it  is unpredictable  and they  often                                                               
don't know until after a  situation occurs that there were health                                                               
impacts associated with it. That  lack of knowledge makes it very                                                               
difficult to  track these  exposures even  though they  know they                                                               
occur. Every precaution is taken to avoid exposures.                                                                            
                                                                                                                                
He said  this legislation  has the  potential to  fiscally impact                                                               
employers, but  their goal is  to have fewer people  getting sick                                                               
to the point that no one gets  sick at all and the same illnesses                                                               
are already  covered currently. However,  most of  these diseases                                                               
are not only  serious, but are also terminal  events resulting in                                                               
huge fiscal impacts  that are often borne by the  very person who                                                               
is in  the worst position  to deal with  it, the sick  person and                                                               
his family.  Firefighters put  their lives on  the line  and risk                                                               
their families to  protect the citizens of Alaska. "We  owe it to                                                               
them to  provide them these  important protections in  their time                                                               
of greatest need."                                                                                                              
                                                                                                                                
MR. DAVIDSON  also added that  it's very difficult to  file under                                                               
the current  Workers' Compensation system, because  a direct link                                                               
to  exposure is  hard to  establish. On  the other  hand, medical                                                               
evidence  demonstrates that  the very  limited scope  of diseases                                                               
they have  named are very  likely to  be associated with  being a                                                               
firefighter. These  illnesses are  acquired in rates  hundreds of                                                               
times higher  than the average  populace. In the case  of cancers                                                               
and contagious  diseases, frequently no  other link can  be drawn                                                               
to  a  source   of  the  disease  other   than  the  firefighting                                                               
occupation.                                                                                                                     
                                                                                                                                
1:53:10 PM                                                                                                                    
MR. DAVIDSON said  he didn't want to minimize  the possibility of                                                               
fiscal  impacts,  but  many  of   the  state's  large  employers,                                                               
including the state itself, already  conduct physicals that would                                                               
meet  the   requirements  to  establish  a   baseline  for  these                                                               
employees.  The  physical exam  requirement  is  not there  as  a                                                               
financial burden  for employers; it's there  for their protection                                                               
and  was placed  in  there to  protect  employers from  frivolous                                                               
claims  or claims  that aren't  justified for  diseases that  had                                                               
been acquired  prior to coming  to that employer. He  argued that                                                               
employers who aren't providing the  physicals for their employees                                                               
are  being  irresponsible  to  the  constituents  they  represent                                                               
because  they  have  no  baseline  to track  if  later  on  these                                                               
employees do become sick.                                                                                                       
                                                                                                                                
1:54:22 PM                                                                                                                    
JEFF BRIGGS, Alaska  Professional Firefighters' Association, said                                                               
according to the Alaska Department  of Public Safety (DPS), there                                                               
are 1,000  full-time paid  firefighters in  the State  of Alaska.                                                               
The  opponents of  SB 117  estimate the  number affected  by this                                                               
bill  to  be  in  the  neighborhood  of  9,250.  The  State  Fire                                                               
Marshall's  office   has  emailed   him  that  there   are  4,600                                                               
structural firefighters  registered in  the State of  Alaska. The                                                               
opponents also  say the  physicals will cost  up to  $12 million,                                                               
which is  not the  case, because physicals  are not  mandatory in                                                               
the bill.  In Anchorage, the  pre-qualifying hiring  medical exam                                                               
costs $450 to $500 per individual.                                                                                              
                                                                                                                                
MR.  BRIGGS said  he couldn't  tell them  how scary  it is  to be                                                               
crawling around in a structural  fire and realize afterwards that                                                               
it was  a meth lab,  one of the  worst chemical fires  around. He                                                               
said  that  all  structural  fires  have  tens  of  thousands  of                                                               
chemicals  and there's  no telling  what  they do  when they  mix                                                               
together.                                                                                                                       
                                                                                                                                
In 2002  in the  Moody v. Delta  Western Supreme  Court decision,                                                               
Justice Mathews stated:                                                                                                         
                                                                                                                                
     Due  to  what is  known  as  the fireman's  rule,  both                                                                    
     firefighters and  police officers are paid  to confront                                                                    
     crises and  allied dangers by  un-circumspect citizenry                                                                    
     -   a   circumstance   that   serves   to   distinguish                                                                    
     firefighters   and  police   from  most   other  public                                                                    
     employees.... The  public pays for  emergency responses                                                                    
     of public safety officials in  the form of salaries and                                                                    
     enhanced benefits.                                                                                                         
                                                                                                                                
1:56:58 PM                                                                                                                    
He said  that American Cancer  statistics indicate that 5  out of                                                               
10 men  in this room will  be diagnosed with some  sort of cancer                                                               
in their lifetime if they live  to be 90 years old. Approximately                                                               
3 in 10  will contract the kind  of cancers listed in  SB 117. He                                                               
asked, "How  many of those  three contracted these  cancers while                                                               
carrying out the course of  their occupation? How many contracted                                                               
                           th                                                                                                   
this cancer before their 55 birthday? Very few."                                                                                
                                                                                                                                
SENATOR BUNDE  asked if  as a  public employee  he is  covered by                                                               
health insurance.                                                                                                               
                                                                                                                                
MR. BRIGGS replied yes.                                                                                                         
                                                                                                                                
SENATOR BUNDE  asked if this bill  passed, would it give  him un-                                                               
rebuttable coverage under workers' compensation.                                                                                
                                                                                                                                
MR. BRIGGS replied that this is not un-rebuttable language.                                                                     
                                                                                                                                
     Nothing guarantees  this coverage.  If the  employer or                                                                    
     the  Workers' Comp  Board feels  there  is evidence  to                                                                    
     disprove the  claim, then  they have  all the  power in                                                                    
     the world to go ahead and do so.                                                                                           
                                                                                                                                
He said  there would probably be  an issue with filing  through a                                                               
person's personal health insurance  for something that was caused                                                               
on the job.                                                                                                                     
                                                                                                                                
SENATOR  FRENCH,  sponsor of  SB  117,  explained that  the  main                                                               
concern in prior  hearings was the cost of  implementing the idea                                                               
and the CS addresses that by  making the medical exam be borne by                                                               
the firefighter himself.                                                                                                        
                                                                                                                                
CHAIR  ELLIS  asked  if  there  was  further  discussion  of  the                                                               
committee substitute, version E.                                                                                                
                                                                                                                                
1:59:38 PM                                                                                                                    
SENATOR STEVENS asked Senator French  if new language was on page                                                               
3, subsection (e) and to explain what it means.                                                                                 
                                                                                                                                
SENATOR FRENCH replied that the only  change in the CS is on page                                                               
3, subsection  (e). It  essentially says  that the  provisions of                                                               
the  bill call  for a  medical examination,  but don't  require a                                                               
municipality or  other employer of firefighters  to actually have                                                               
to provide that  qualifying medical examination (line  27). So it                                                               
imposes no burden at all upon  an employer or a municipality. The                                                               
cost  will be  borne  by the  firefighter  if at  all  or if  the                                                               
municipality chooses to do so.                                                                                                  
                                                                                                                                
SENATOR STEVENS asked if this  is presented as an opt-out feature                                                               
for the municipalities.                                                                                                         
                                                                                                                                
SENATOR FRENCH replied yes. SB 117 is not an unfunded mandate.                                                                  
                                                                                                                                
CHAIR  ELLIS said  this was  a big  bone of  contention with  the                                                               
original bill.                                                                                                                  
                                                                                                                                
SENATOR  BUNDE  said he  understands  there  is  no cost  to  the                                                               
municipality for  the medical examination,  but he  thought there                                                               
would, however, be a cost to the Workers' Compensation rates.                                                                   
                                                                                                                                
SENATOR  FRENCH displayed  California  statistics that  indicated                                                               
presumption doesn't  cause a large  rise in rates. In  fact, they                                                               
returned  to historical  norms after  presumption was  adopted in                                                               
1999.                                                                                                                           
                                                                                                                                
SENATOR  BUNDE   noted  that  it   didn't  reduce   the  Workers'                                                               
Compensation rates either.                                                                                                      
                                                                                                                                
2:02:28 PM                                                                                                                    
SENATOR STEVENS asked  about a letter from  Millie Martin, member                                                               
of  the  Kenai Borough  Assembly,  who  takes a  strong  opposing                                                               
position. Her  concern is  that all  the diseases  in SB  117 are                                                               
chronic  and are  often caused  either by  genetics or  lifestyle                                                               
choices.  He asked  if a  chronic smoker  would be  covered under                                                               
Workers' Compensation if this passed.                                                                                           
                                                                                                                                
SENATOR FRENCH  replied probably not.  If the fact of  a person's                                                               
smoking  is  well-known  in the  community,  established  through                                                               
sales, personal observations  or whatever, they are  not going to                                                               
be able to make a workers' compensation claim for lung cancer.                                                                  
                                                                                                                                
SENATOR  STEVENS went  back  to  the statement  that  all of  the                                                               
diseases  are  chronic  and  are often  caused  by  genetics  and                                                               
lifestyle choices and asked if that is a correct statement.                                                                     
                                                                                                                                
SENATOR FRENCH replied that he is not a doctor and couldn't say.                                                                
                                                                                                                                
2:04:42 PM                                                                                                                    
WALLY BAIRD,  Bethel City Manager,  said he had concerns  with SB
117 because  Bethel is  self-insured and has  a tight  budget. He                                                               
also thought that  life style choices and  genetics could account                                                               
for  some  of the  diseases.  A  lot  of people  have  contracted                                                               
prostate cancer and have never  entered a building with hazardous                                                               
materials.                                                                                                                      
                                                                                                                                
He was also concerned that this  would make insurance rates go up                                                               
because  the   costs  would  be   spread  out  across   the  same                                                               
population.  The assumption  is  that  the Workers'  Compensation                                                               
Program is not adequate or somehow  broken, but he thinks it does                                                               
a very good job.                                                                                                                
                                                                                                                                
2:09:46 PM                                                                                                                    
SENATOR BUNDE asked  if he provides health  insurance benefits to                                                               
his firefighters that cover the illnesses in this bill.                                                                         
                                                                                                                                
MR. BAIRD replied yes.                                                                                                          
                                                                                                                                
SENATOR  BUNDE   asked  if  he  is   having  problems  recruiting                                                               
firefighters.                                                                                                                   
                                                                                                                                
MR. BAIRD replied yes.                                                                                                          
                                                                                                                                
SENATOR  FRENCH also  pointed out  that health  insurance doesn't                                                               
cover lost wages.                                                                                                               
                                                                                                                                
2:10:48 PM                                                                                                                    
SENATOR STEVENS  moved to adopt  CSSB 117(L&C), version  E. There                                                               
were no objections and it was so ordered.                                                                                       
                                                                                                                                
2:11:22 PM                                                                                                                    
JOHN   CYR,   Executive   Director,   Public   Safety   Employees                                                               
Association, supported SB  117. He said it's only  too clear with                                                               
the rising number  of meth labs and the  different chemicals that                                                               
critically  affect long-term  health  that a  bill  like this  is                                                               
essential.                                                                                                                      
                                                                                                                                
2:12:24 PM                                                                                                                    
JOHN  GRUMMET,  President-elect,  Alaska Independent  Agents  and                                                               
Insurance Brokers,  said it would  be very hard for  employers to                                                               
controvert claims and the bill's  language is unusually broad. He                                                               
asked why it wouldn't include  nurses and doctors. He didn't have                                                               
any specific suggestions.                                                                                                       
                                                                                                                                
2:13:33 PM                                                                                                                    
DOMINIC LEZANO,  President, Fairbanks  Firefighters' Association,                                                               
said that  lost wages are  provided under  Workers' Compensation,                                                               
but  it's always  asked  what incident  caused  the exposure  and                                                               
that's the  reason for the bill.  That exact date of  exposure is                                                               
often not  known. He related  a story of a  Fairbanks firefighter                                                               
who contracted  lung cancer. He  has been a firefighter  for over                                                               
30  years   and  didn't   smoke.  When   the  idea   of  Workers'                                                               
Compensation  came up,  he was  asked for  the date  the exposure                                                               
occurred and  for the doctor to  back it up. It's  very difficult                                                               
when  you're going  through  the chemotherapy  to  have to  worry                                                               
about going  through Workers'  Compensation hearings.  His health                                                               
insurance company did what it  could, but there are large out-of-                                                               
pocket  costs associated  with that  and now  he's almost  out of                                                               
sick  leave. The  intent of  the bill  is to  protect individuals                                                               
like  this. If  you're a  smoker, you're  not covered  under this                                                               
presumption.                                                                                                                    
                                                                                                                                
2:16:36 PM                                                                                                                    
CHAIR  ELLIS said  he  thought  they had  made  progress on  this                                                               
issue, but the  committee was missing a couple of  members and it                                                               
deserved their input. So he held SB 117 for a future meeting.                                                                   
                                                                                                                                

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