04/07/2004 08:09 AM Senate JUD

                                                                                                                                
         SB 323-WORKERS COMPENSATION AND CONTRACTORS                                                                        
                                                                                                                                
CHAIR  SEEKINS  called  the meeting  back  to  order.  Senators                                                                 
French, Ogan, Therriault and Chair Seekins were present.                                                                        
                                                                                                                                
CHAIR SEEKINS informed  members that one question  that came up                                                                 
on this bill had to do with  its effect on a sole proprietor or                                                                 
partner with no employees. He has  asked Todd Larkin to work on                                                                 
a  proposed amendment  to address  that scenario.  He explained                                                                 
that under the current statute,  a sole proprietor or a partner                                                                 
without any employees  could be exempt from  the requirement to                                                                 
have  workers' compensation  coverage for  them. If  either had                                                                 
employees, they  would be  required to  have coverage.  He said                                                                 
the  proposed amendment  would say  if the  sole proprietor  or                                                                 
partner  does  not  have workers'  compensation  coverage,  the                                                                 
project owner  or contractor is  released from any  claims that                                                                 
could be brought under workers'  compensation up the ladder. He                                                                 
clarified that a sole proprietor  or partner is not required to                                                                 
have  workers' compensation  coverage  but, if  they make  that                                                                 
choice, their  exclusive remedy is against  themselves, not who                                                                 
they are working for.                                                                                                           
                                                                                                                                
MR. JACK MILLER,  an attorney with the Alaska  State Chamber of                                                                 
Commerce, informed members  that he spoke with  Mr. Larkin that                                                                 
morning  and was  made  aware  of the  issue  relating to  sole                                                                 
proprietors and partners. He  recommended addressing that issue                                                                 
in   AS  23.30.239,   which   specifically   deals  with   sole                                                                 
proprietors and  partners and allows them  to opt in or  out of                                                                 
the  workers' compensation  system. He  suggested the  simplest                                                                 
fix would be to add subsection (e) to AS 23.30.239 to read:                                                                     
                                                                                                                                
     A sole proprietor  or a member of  a partnership, who                                                                      
     does  not elect  coverage as  an employee  under this                                                                      
     chapter,  may not  make a  claim for  compensation in                                                                      
     respect of  an injury, disability or  death against a                                                                      
     contractor or other employer.                                                                                              
                                                                                                                                
SENATOR  OGAN remarked  that he  was a  sole proprietor  for 25                                                                 
years and did  not have workers' compensation  coverage. He was                                                                 
always willing to take that  risk and would not have considered                                                                 
trying to  hold someone  else responsible  for any  injuries he                                                                 
sustained. He stated strong support  for the proposed amendment                                                                 
and declared  that he may have  a conflict of interest  at some                                                                 
point in the future.                                                                                                            
                                                                                                                                
CHAIR  SEEKINS  announced  that  he  would  have  an  amendment                                                                 
drafted and bring it up at the afternoon meeting.