04/22/1998 09:22 AM Senate FIN

 SENATE BILL NO. 336                                                           
                                                                               
"An Act relating to excluding professional hockey team                         
members from worker's compensation coverage."                                  
                                                                               
                                                                               
ANNETTE KREITZER, staff to Senator Loren Leman and the                         
Senate Labor and Commerce Committee was invited to join the                    
committee.  She explained that the bill would amend the                        
Workers' Compensation provisions by adding professional                        
hockey teams to the list of persons not covered under AS                       
23.30.230.  In exchange for the exemption a team owner                         
would have to provide a medical and disability program to                      
cover the players and anyone else associated with the team                     
who is in the same workers' comp risk category.  This would                    
include coaches and assistant coaches but not office                           
personnel.  The owner would be responsible for the premium                     
on the cost of the coverage.  This was the same approach                       
taken by the State of Florida.  She further explained that                     
the team members were now paying $200,000 in workers' comp                     
for the season, which runs fifty-two games.  The average                       
salary for the players is about $300 to $500 per week.                         
                                                                               
Senator Phillips asked if this would also cover officials?                     
Ms. Kreitzer said anyone in the category of coaches and                        
assistant coaches were covered.  He asked how the players                      
felt about this bill.  Ms. Kreitzer said the testimony in                      
Senate Labor and Commerce indicated that the players were                      
in favor of this bill.  They had concern that the cost of                      
the workmen's' comp they were now paying would affect the                      
ability of the team to continue.                                               
                                                                               
DWIGHT PERKINS, Special Assistant to the Commissioner,                         
Department of Labor was invited to join the committee.  He                     
said there was no opposition by the department to this                         
legislation.  The department had notified the employer                         
association that they would be liable for any damages and                      
it would not prevent the employee from going to Court in                       
order to seek damages.  He further noted a zero fiscal note                    
to the Department of Labor.                                                    
                                                                               
Senator Donley asked why coaches were included in the                          
coverage?  Ms. Kreitzer explained that they were in the                        
same workers' comp risk category so they were lumped in                        
with the players.  Senator Phillips indicated that                             
sometimes the coaches were the players.  Senator Donley                        
said then it should be indicated as "player-coach".                            
Otherwise a coach is an employee just like anyone else and                     
they should be in the workers' comp program.  Further, a                       
coach who sits on the sidelines should not be rated the                        
same as a hockey player.  The solution, therefore, he felt                     
would be to go to the Division of Insurance and get the                        
rating changed.  Ms. Kreitzer suggested the committee hear                     
from Paul Grossi as to how the coaches were included in the                    
rating.                                                                        
                                                                               
Senator Donley further commented that as a professional                        
business, the coaches were being paid a salary to do a job.                    
They were not actual players nor were they involved in a                       
contact sport.  They were administrators and it was a                          
different situation.  Everyone thinks they should be exempt                    
from Workmen's' Compensation, however, they do not think it                    
is so great when problems occur because of the exemption                       
and then they are all tied up in Court and there is no                         
reasonable compensation available to one who suffers a                         
reasonable injury.  He did not feel this bill was                              
reasonable.                                                                    
                                                                               
PAUL GROSSI, Director, Division of Workers' Compensation,                      
Department of Labor was invited to join the committee.  He                     
said he did not have an answer as to why coaches were                          
included.  The Division of Workers' Compensation did not                       
oppose the bill, however.  Perhaps the Division of                             
Insurance                                                                      
would be able to provide an answer.                                            
                                                                               
Ms. Kreitzer further commented that they had met                               
extensively with the Anchorage hockey team and had asked                       
them to speak with the Division of Insurance and the                           
Division of Workmen's' Compensation.  She noted that after                     
their discussions only office personnel should be exempt.                      
                                                                               
(Tape #135 switched to Side B at log #593.)                                    
                                                                               
Ms. Kreitzer continued that the coaches and assistant                          
coaches were actually playing and therefore exposed.                           
Therefore they fit the description of those to be covered.                     
However, office personnel did not.  It would also cover                        
them in their travels with the team.                                           
                                                                               
Senator Phillips said in this sport coaches were much more                     
involved physically than other sports.  Senator Donley                         
asked if the coaches actually went out and played during                       
practices?  Senator Phillips indicated they did.  Senator                      
Donley then concurred that the bill made sense.                                
                                                                               
Senator Phillips MOVED SB 336 with individual                                  
recommendations and one accompanying fiscal notes.  WITHOUT                    
OBJECTION it was REPORTED OUT with individual                                  
recommendations and zero fiscal note from the Department of                    
Labor.                                                                         
                                                                               
Co-chair Sharp called HB 231.