Legislature(2007 - 2008)SENATE FINANCE 532

04/10/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 2 VOCATIONAL EDUC ACCOUNT
Scheduled But Not Heard
+ HJR 28 CONST. AM:BUDGET RES.FUND/OIL& GAS TAX TELECONFERENCED
Heard & Held
+ HB 226 REPEAL TERMINATION OF STEP PROGRAM TELECONFERENCED
Scheduled But Not Heard
+ HB 373 SCHOOL BOND DEBT REIMBURSEMENT TELECONFERENCED
Scheduled But Not Heard
+ HB 281 CAMPAIGN FINANCE COMPLAINTS/DISCLOSURE TELECONFERENCED
Moved SCS CSHB 281(FIN) Out of Committee
+ HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Scheduled But Not Heard
+ HB 200 WORKERS' COMP: DISEASE PRESUMPTION TELECONFERENCED
Moved HB 200 Out of Committee
+ HB 325 TEACHERS/HEALTH CARE PROFESS HOUSING LOAN TELECONFERENCED
Scheduled But Not Heard
+ HB 50 CHILD PLACEMENT COMPACT TELECONFERENCED
Scheduled But Not Heard
+ HB 332 PRE-ELEMENTARY SCHOOL PROGRAMS TELECONFERENCED
Scheduled But Not Heard
+ HB 44 VETERAN INFO ON PFD APPLICATIONS TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 147 TOURISM CONTRACT: STATE FUNDS AND MATCH
Moved CSHB 147(RLS) Out of Committee
CS FOR HOUSE BILL NO. 200(FIN)                                                                                                
                                                                                                                                
     "An Act  relating to the  presumption of coverage  for a                                                                   
     workers' compensation  claim for disability  as a result                                                                   
     of certain diseases for certain fire fighters."                                                                            
                                                                                                                                
Co-Chair Stedman signified that  the was the first hearing of                                                                   
the  bill  with  the  intention  of  hearing  from  the  bill                                                                   
sponsor, take  public testimony  and act on  the will  of the                                                                   
Committee.                                                                                                                      
                                                                                                                                
10:25:35 AM                                                                                                                   
                                                                                                                                
JENNIFER BAXTER, STAFF, SENATOR NANCY DAHLSTROM, presented                                                                      
an overview of the sponsor statement:                                                                                           
                                                                                                                                
     House Bill  200, "An Act relating to the  presumption of                                                                   
     coverage   for  a   workers'   compensation  claim   for                                                                   
     disability as  a result of certain diseases  for certain                                                                   
     occupations," establishes  a presumption in the Worker's                                                                   
     Compensation  program  for  professional  and  volunteer                                                                   
     firefighters who have had  a qualifying medical exam and                                                                   
     have   been   on  the   job   at  least   seven   years.                                                                   
                                                                                                                                
     It  grants   benefits  to  firefighters   stricken  with                                                                   
     certain types  of cancer and heart disease  due to their                                                                   
     exposure to  toxic chemicals, and high levels  of carbon                                                                   
     monoxide. Silent  killers like asbestos and  benzene can                                                                   
     appear  after they  leave the job.  The requirements  of                                                                   
     this bill are  that the claims must be  made within five                                                                   
     years    after    the   last    day    of    employment.                                                                   
                                                                                                                                
     In addition  to firefighters,  first responders  deserve                                                                   
     protection  for the  health and  safety risks they  live                                                                   
     with in  order to keep us  safe. HB 200 also  includes a                                                                   
     presumption that  compensation for certain  disabilities                                                                   
     resulting   from  blood   born  pathogens  be   covered.                                                                   
                                                                                                                                
     Arguments  have been  made that  this coverage  would be                                                                   
     exorbitantly  expensive; however this  has not  been the                                                                   
     case  in  other  states.   For  example,  the  state  of                                                                   
     California  has over 30,000  paid firefighters  and more                                                                   
     than  30,000  volunteers,  but the  addition  of  cancer                                                                   
     presumptive benefits has  had no impact on the actuarial                                                                   
     assumptions   system   for    its   retirement   system.                                                                   
                                                                                                                                
     Firefighters  and  first  responders  take  great  risks                                                                   
     every  day to  protect our  lives and  the lives of  our                                                                   
     loved  ones. They  are  regularly  exposed to  dangerous                                                                   
     elements   such  as   carcinogenic  substances,   carbon                                                                   
     monoxide  and  contaminated   blood  that  can  lead  to                                                                   
     chronic and debilitating  illnesses later in their life.                                                                   
                                                                                                                                
     A great deal of thought has been put into this                                                                             
     legislation in order to create defined parameters of                                                                       
     who qualifies for these benefits.                                                                                          
                                                                                                                                
                                                                                                                                
10:26:49 AM                                                                                                                   
                                                                                                                                
Senator  Huggins requested  further  explanation of  negative                                                                   
lifestyle habits.                                                                                                               
                                                                                                                                
Ms. Baxter described  that if a firefighter is  a smoker this                                                                   
might  be   considered  a   negative  lifestyle   for  cancer                                                                   
coverage.                                                                                                                       
                                                                                                                                
Senator  Huggins inquired  if  a firefighter  gained a  great                                                                   
deal of  weight over the  years could this  be a factor  in a                                                                   
negative lifestyle.                                                                                                             
                                                                                                                                
Ms.  Baxter responded  that physical  fitness  and weight  is                                                                   
listed in the bill as a preponderance  of evidence that could                                                                   
be rebutted.                                                                                                                    
                                                                                                                                
10:28:37 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman wondered  how  prostate  cancer, listed  on                                                                   
page 2, line 13 fits into the cancer list.                                                                                      
                                                                                                                                
Ms.  Baxter  responded  that fire  fighters  have  a  greater                                                                   
number of cases than the national average.                                                                                      
                                                                                                                                
Co-Chair Stedman noted that the  theory is that most males if                                                                   
they live long enough might develop prostrate cancer.                                                                           
                                                                                                                                
10:29:27 AM                                                                                                                   
                                                                                                                                
Ms. Baxter pointed  out that could probably be  rebutted in a                                                                   
claim case.                                                                                                                     
                                                                                                                                
Senator Olson  questioned how a firefighter's  family history                                                                   
of diseases would fit into the rebuttal for non-coverage.                                                                       
                                                                                                                                
10:30:01 AM                                                                                                                   
                                                                                                                                
Ms.  Baxter  responded  that  this  bill  takes  it  off  the                                                                   
employees  and  puts it  on  the  employer  to prove  but  an                                                                   
employee's family  history could be taken  into consideration                                                                   
before a claim is settled.                                                                                                      
                                                                                                                                
Co-Chair  Stedman  reviewed  the   two  indeterminate  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
10:30:37 AM                                                                                                                   
                                                                                                                                
Senator   Thomas   mentioned   that  heredity   factors   are                                                                   
referenced in the bill.                                                                                                         
                                                                                                                                
10:30:51 AM                                                                                                                   
                                                                                                                                
MARK  DRYGAS, PRESIDENT,  ALASKA  PROFESSIONAL FIRE  FIGHTERS                                                                   
ASSOCIATION  testified   via  teleconference  and   spoke  in                                                                   
support  of the  bill.  He  reiterated the  firefighters  are                                                                   
subject  to various  cancers and  respiratory  diseases at  a                                                                   
higher rate than the general public.                                                                                            
                                                                                                                                
10:32:23 AM                                                                                                                   
                                                                                                                                
Senator  Huggins suggested  that more  than fifty percent  of                                                                   
males in the  general public will get prostrate  cancer so he                                                                   
wondered   how   much   higher   are   the   statistics   for                                                                   
firefighters.                                                                                                                   
                                                                                                                                
Mr. Drygas responded  that prostrate cancer in  fire fighters                                                                   
occurs  at a  higher  rate  and at  a  younger  age than  the                                                                   
general public.                                                                                                                 
                                                                                                                                
10:33:18 AM                                                                                                                   
                                                                                                                                
Senator Huggins requested the statistics of a higher rate.                                                                      
                                                                                                                                
Mr. Drygas replied he did not  have the numbers available. He                                                                   
remarked   that   the  information   was   received   through                                                                   
researching other state's disability coverages.                                                                                 
                                                                                                                                
10:34:19 AM                                                                                                                   
                                                                                                                                
Senator Olson agreed  with the Co-Chair Stedman  that all men                                                                   
risk prostrate cancer if they  live long enough but did agree                                                                   
that  among  firefighters  the   numbers  were  significantly                                                                   
higher at a younger age.                                                                                                        
                                                                                                                                
10:34:55 AM                                                                                                                   
                                                                                                                                
Ms. Baxter  informed the Committee  that the cancer  list was                                                                   
developed because  studies showed firefighters had  a one and                                                                   
one-half to four  times greater risk than the  general public                                                                   
at a  much younger age.  It is written  in the bill  that the                                                                   
firefighter must  have been on  the job at least  seven years                                                                   
and  the coverage  only  extends for  five  years after  they                                                                   
leave the job.                                                                                                                  
                                                                                                                                
10:35:57 AM                                                                                                                   
AT EASE: 10:36:07 AM                                                                                                          
RECONVENED: 10:36:33 AM                                                                                                       
                                                                                                                                
10:36:35 AM                                                                                                                   
                                                                                                                                
KEVIN  SMITH,  EXECUTIVE DIRECTOR,  ALASKA  MUNICIPAL  LEAGUE                                                                   
JOINT INSURANCE ASSOCIATION testified  via teleconference. He                                                                   
explained  that the  members  of this  insurance  association                                                                   
pool  together to  cover the  first half  million dollars  of                                                                   
each worker's compensation claim  and purchase reinsurance to                                                                   
statutory  limits above  that  amount. In  his opinion,  this                                                                   
bill is about  asking municipalities to pay  extra by placing                                                                   
firefighters in a special category  separate from other state                                                                   
workers.  He  believed this  is  bad  public policy  and  the                                                                   
health  statistics are  not supported  by science. He  argued                                                                   
that the  costs of  the bill  are difficult  to determine  as                                                                   
many diseases and cancers are  treated at different costs. He                                                                   
stressed this  bill would be  a significant cost  increase to                                                                   
municipalities.                                                                                                                 
                                                                                                                                
10:40:21 AM                                                                                                                   
                                                                                                                                
Mr.  Smith  related  that  many  communities  in  Alaska  use                                                                   
volunteer firefighters because  they can not afford full time                                                                   
paid  staff  but  they  still   need  to  purchase  workman's                                                                   
compensation for  their volunteers. The rates  for volunteers                                                                   
will have to increase to cover  presumptions in this bill. He                                                                   
warned that  if small  municipalities can  not afford  to pay                                                                   
full time firefighters,  they would find it  difficult to pay                                                                   
the additional  costs  this bill would  incur. He  emphasized                                                                   
that  the  bill  should  be  restricted  to  full  time  fire                                                                   
fighters and not volunteers.                                                                                                    
                                                                                                                                
10:42:38 AM                                                                                                                   
                                                                                                                                
Senator  Huggins asked  Mr. Smith about  the gender  specific                                                                   
prostrate cancer  when more women are entering  the field. He                                                                   
questioned  if  there  was any  statistics  concerning  women                                                                   
firefighters.                                                                                                                   
                                                                                                                                
Mr.  Smith  replied that  he  was  not  aware of  any  gender                                                                   
specific health studies for female firefighters.                                                                                
                                                                                                                                
10:43:53 AM                                                                                                                   
                                                                                                                                
Senator  Huggins  requested  the information  from  the  bill                                                                   
sponsor.                                                                                                                        
                                                                                                                                
Ms. Baxter agreed  that this has been a male  dominated field                                                                   
in  the past  and she  was  not aware  of  any direct  female                                                                   
studies.                                                                                                                        
                                                                                                                                
10:45:12 AM                                                                                                                   
                                                                                                                                
Senator Huggins  reminded the Committee that  diseases do not                                                                   
recognize  the difference  between  full-time and  volunteers                                                                   
employees  so  he  would  not  be  in  favor  of  eliminating                                                                   
volunteers from the bill.                                                                                                       
                                                                                                                                
10:45:45 AM                                                                                                                   
                                                                                                                                
JEFF BRIGGS,  FIREFIGHTER,  ALASKA PROFESSIONAL  FIREFIGHTERS                                                                   
ASSOCIATION spoke in support of  the bill. He referred to the                                                                   
written  testimony   from  firefighters   available   to  the                                                                   
Committee. He  reported that no  Alaska citizen, not  tied to                                                                   
the insurance  industry or  government agency, had  testified                                                                   
against this  bill in the  past two  years. Alaska is  one of                                                                   
nine  states  who  do  not  have  some  sort  of  presumptive                                                                   
legislation.                                                                                                                    
                                                                                                                                
10:47:56 AM                                                                                                                   
                                                                                                                                
Senator Olson inquired  if the Alaska Municipal  League had a                                                                   
position on  the question of  smaller communities  being able                                                                   
to afford this additional worker compensation.                                                                                  
                                                                                                                                
Ms. Baxter responded they have been opposed to the bill.                                                                        
                                                                                                                                
Mr. Briggs interjected  that the Alaska Municipal  League has                                                                   
taken a neutral position on this bill.                                                                                          
                                                                                                                                
10:49:36 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED to  REPORT  CSHB  200 (FIN)  out  of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal   notes.  There   being  no   OBJECTION  passed   from                                                                   
Committee.                                                                                                                      
                                                                                                                                
CS  HB  200 (FIN)  was  REPORTED  out  of Committee  with  no                                                                   
recommendations and accompanying  previously published fiscal                                                                   
notes  from   the  Department   of  Administration   and  the                                                                   
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
                                                                                                                                

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