04/11/2010 01:45 PM Senate RULES

           SB 303-WORKERS' COMP; CONTRACTORS & OTHERS                                                                       
                                                                                                                                
                                                                                                                                
CHAIR HUGGINS announced SB 303 to be up for consideration.                                                                      
                                                                                                                                
1:57:53 PM                                                                                                                    
SENATOR ELLIS moved  to bring SB 303 before  the committee. There                                                               
were no  objections and  it was so  ordered. [CSSB  303(JUD), 26-                                                               
LS1089\P, was before the committee].                                                                                            
                                                                                                                                
SENATOR  JOE  PASKVAN, sponsor  of  SB  303,  said the  issue  is                                                               
whether section  3 will be  removed from  the bill. He  said that                                                               
while  he recognized  some  good social  policy  issues would  be                                                               
advanced by  keeping section  3 in the  bill, he  also understood                                                               
the   political  reality   that  those   social  policies   could                                                               
potentially defeat  the entire bill.  Removing section  3 returns                                                               
language in SB 303 to  the original language, which contained the                                                               
conservative principle that  if you break it you pay  for it, and                                                               
he had  no problems with doing  that. Establishing accountability                                                               
and responsibility  is the largest  issue he is advancing  in the                                                               
bill with section 3 deleted.                                                                                                    
                                                                                                                                
CHAIR HUGGINS  asked him to  give an  overview of what  section 3                                                               
does.                                                                                                                           
                                                                                                                                
SENATOR PASKVAN explained that section  3 says that everyone on a                                                               
job would  be required to  have workers'  compensation insurance.                                                               
If for some  reason a subcontractor to a contractor  did not have                                                               
workers' compensation  insurance and there  were to be  a premium                                                               
increase to the  contractor because of a  loss, the subcontractor                                                               
would be required to reimburse  the contractor for the additional                                                               
cost. Some of  the objection to the bill was  that it would force                                                               
everyone  to   carry  workers'  compensation  insurance   at  the                                                               
subcontractor level.  The opposition  to that believes  it should                                                               
be their choice.                                                                                                                
                                                                                                                                
2:00:58 PM                                                                                                                    
DENNIS  BAILEY,  Drafting  Attorney,  Legislative  legal,  Alaska                                                               
State  Legislature,   said  Senator  Paskvan's   explanation  was                                                               
accurate.                                                                                                                       
                                                                                                                                
2:01:49 PM                                                                                                                    
CHAIR  HUGGINS  moved  Amendment 1,  labeled  26-LS1089\P.1,  and                                                               
objected for purposes of discussion.                                                                                            
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR PASKVAN                                                                 
                                                                                                                                
     TO:  CSSB 303(JUD)                                                                                                         
                                                                                                                                
     Page 1, lines 2 - 3:                                                                                                       
                                                                                                                                
          Delete   ",    to   workers'    compensation   for                                                                  
     independent contractors without employees,"                                                                              
                                                                                                                                
                                                                                                                                
     Page 2, lines 10 - 20:                                                                                                     
                                                                                                                                
          Delete all material.                                                                                                  
                                                                                                                                
                                                                                                                                
     Renumber the following bill sections accordingly                                                                           
                                                                                                                                
                                                                                                                                
MR. BAILEY said the amendment essentially deletes section 3.                                                                    
                                                                                                                                
CHAIR HUGGINS  said that  the first  item in  the amendment  is a                                                               
title change  that was necessary  because of deleting  section 3.                                                               
The second part  was the action of deleting section  3 on page 2,                                                               
lines 10-20.                                                                                                                    
                                                                                                                                
SENATOR  ELLIS said  he would  have preferred  the CSSB  303(JUD)                                                               
version for  some of the goals  they were trying to  achieve, but                                                               
he  also recognized  political reality  and  wouldn't hinder  the                                                               
bill's progress.                                                                                                                
                                                                                                                                
CHAIR  HUGGINS   removed  his   objection.  Finding   no  further                                                               
objections; he  said Amendment 1  was adopted. Therefore  2d CSSB
(RLS) was moved from committee.                                                                                              
                                                                                                                                
2:03:13 PM                                                                                                                    
CHAIR  HUGGINS  thanked everyone  and  adjourned  the meeting  at                                                               
2:03.