04/07/1998 01:35 PM Senate L&C

         SB 349 - UNEMPLOY EXEMPT AMATEUR SPORTS OFFICIAL                      
                                                                               
CHAIRMAN LEMAN announced SB 349 to be up for consideration.                    
                                                                               
MR. TIM BENINTENDI, Staff the Senator Tim Kelly, said "SB 349 would            
exempt Alaska amateur sport officials from the unemployment tax                
liabilities, but it does not relieve them of income tax liability.             
This legislation is predicated on successful passage of                        
corresponding federal legislation which is now being worked on by              
Senator Stevens' office.  The two have to go hand-in-hand.                     
                                                                               
"Recreational nonprofessional sports are a large and expanding                 
component of our State's athletic and social life and the role of              
amateur sports officials is vital to its continuation and                      
development.  The essential character of this avocation will be                
adversely impacted if tax pressures on modest stipends is not                  
relieved.  Most amateur sports officials provide their own                     
transportation, uniforms, safety equipment, and other expenses                 
without reimbursement from the nonprofits or the recreational units            
of local government that hires them.  Without modest relief                    
provided by SB 349, there may be a decline in the availability of              
qualified amateur sports officials as they pick up other work or               
worse, force increases in costs to the many nonprofits which                   
sponsor amateur sporting events.  This increase may lead to                    
unavoidable program reductions.                                                
                                                                               
"The Alaska Legislature once did exempt amateur sports officials               
from employment tax liabilities, but the exemption was lifted a                
year later under the threat of losing federal funds at the                     
Department of Labor.  Federal law was not in sync with state law at            
the time.                                                                      
                                                                               
"SB 349 is supported by the Farthest North Umpire's Association,               
the Alaska School Activities Association, and the Anchorage Sports             
Association.  It is not opposed by the AFL-CIO and carries a zero              
fiscal note."                                                                  
                                                                               
Number 215                                                                     
                                                                               
MR. DWIGHT PERKINS, Special Assistant, Department of Labor, said               
the Department is neutral on this.  They are bound by federal                  
legislation until it is changed.  He suggested a technical                     
amendment to make sure they cover the state or any political                   
subdivisions, like Parks and Recreation.  On line 6 to insert "(22)            
services performed in the employee of a State, or any political                
subdivision thereof, or any organization exempt from income tax                
under section 501(a)..." which would make us consistent with                   
federal legislation.                                                           
                                                                               
SENATOR MACKIE moved to adopt the amendment.  There were no                    
objections and it was so ordered.                                              
                                                                               
MR. JOHN RENN, Anchorage Football Association, supported HB 349 and            
said the alternative is for associations to bear the cost and it               
would somehow go back to the youth.                                            
                                                                               
MS. PATRICIA LILLIAN, Amateur Softball Association Commissioner,               
supported SB 349 as it would have good long term effects to the                
cost of doing business.  When they were exempted in 1989, it was to            
declare them as nonemployees.  In 1994 the same situation existed              
when the Legislature exempted them from Workers' Compensation.                 
This has been the intent of the legislature for a number of years              
and this is consistent with that position.  She thought all the                
officials and user groups would support this without question.                 
                                                                               
MR. JERRY WATSON, President, Farthest North Umpires' Association,              
said the legislation would have a dramatic affect on amateur sports            
in the State.  He explained that this is not primary employment for            
most; it is done for love of the sport and for the comraderie.  He             
said that recruiting is difficult and bills like this will only                
help that.                                                                     
                                                                               
MR. BRUCE KEMMERER, Alaska Amateur Softball Association Umpire                 
Chief, said there are 300 softball officials in the State, but it's            
getting harder and harder each year to recruit officials for the               
sport.  Passage of a bill like this would help alleviate that                  
problem, because unemployment and workers' compensation problems               
turned people from officiating at all sports. Officials try to keep            
the cost of doing business down as much as possible.  The game                 
stipends they receive do not cover everything.  There's a lot of               
volunteer work that is done preparing for a season, like going to              
clinics.  Officials are independent contractors and are required to            
file income taxes, but they need this bill to keep the costs down.             
                                                                               
MR. GARY MATTHEWS, Executive Director, said he represents 195                  
member high schools and over 800 certified high school officials               
throughout the State.  He said for most officials it's a labor of              
love and nearly everyone holds down an additional full-time job.               
He explained that in most of the small communities in the State the            
schools contact the officials directly, but in the larger                      
communities, local associations of officials coordinate the                    
scheduling of game assignments and help offer opportunities for                
training.  If officials are determined to be covered by                        
unemployment compensation, the cost to schools will be greatly                 
increased.  It is important from a statewide School Activities                 
Association's perspective to pass this legislation.                            
                                                                               
MR. LEFTY SCHALLOCK, Fairbanks Basketball Association, supported SB
, otherwise it could increase costs by as much as 30 - 40                   
percent.  In most instances there would be two choices, one for the            
officials organization to disband and the second would be to pass              
the increased costs on to the user groups which means our youth.               
                                                                               
MR. BOB WALKER, President, Anchorage Amateur Softball Umpire's                 
Association, said he represented the largest softball umpire group             
in the State and supported this bill.                                          
                                                                               
MS. KIM KILLIAN, Vice President, Fairbanks Volleyball Officials                
Association, supported HB 349 and said this removes another added              
burden to keeping youth sports on-line.                                        
                                                                               
MR. ROBERT WALKOTTE, Fairbanks Football Officials Association,                 
supported SB 349 because he was concerned that the costs were                  
becoming prohibitive that the officials would probably get out.                
                                                                               
SENATOR KELLY moved to pass CSSB 349(L&C).  There were no                      
objections and it was so ordered.