04/13/1993 01:30 PM Senate L&C

  SENATOR KELLY announced SB 184  (VOLUNTEERS AND EMPLOYEES OF                 
                                                                               
                                                                               
  NONPROFITS) to be up for consideration.                                      
                                                                               
  SENATOR FRANK, sponsor, explained changes made in a proposed                 
  committee substitute .   He said there was support  from the                 
  nonprofit agencies.                                                          
                                                                               
  SENATOR KELLY asked why  on line 6 " recklessness"  was used                 
  with  "gross  negligence...   or  intentional   misconduct."                 
  SENATOR  FRANK explained SB 184 would limit the liability on                 
  simple  negligence, and  recklessness was  a standard  legal                 
  term to be used on a scale of seriousness.                                   
                                                                               
  SENATOR LINCOLN asked him if everyone  who draws a salary is                 
  covered under this provision.  SENATOR FRANK answered yes.                   
                                                                               
  Number 160                                                                   
                                                                               
  SENATOR  FRANK  commented  that  the  amendment  brought the                 
  corporation,  itself, under the Act,  as opposed to just the                 
  volunteers and employees.                                                    
                                                                               
  SENATOR LINCOLN asked why  "certain non-profit corporations"                 
  was inserted on page 1, line 1.                                              
                                                                               
  MIKE FORD,  Legislative Legal Counsel,  explained the  Title                 
  refers  to  civil  liability  of   only  the  employees  and                 
  volunteers.    This  is  actually   a  third  category,  the                 
  corporation, itself.  It is in addition to the employees and                 
  volunteers.                                                                  
                                                                               
  MR. FORD said they were capping the civil liability  damages                 
  for employees  and volunteers at $200,000 and $500,000.  The                 
  employer volunteer, himself, is not liable.  The corporation                 
  is liable up to the insured amount.                                          
                                                                               
  SENATOR  SALO  asked  if  there  is already  some  liability                 
  protection for non-profits.   MR. FORD responded  that there                 
  is a  provision in AS  09.17 that provides  limited immunity                 
  for officers and  directors of  non-profits.  The  employees                 
  and volunteers  are protected  in  the same  manner in  this                 
  bill.                                                                        
                                                                               
  Number 275                                                                   
                                                                               
  SENATOR KELLY closed  the public hearing on SB  184, stating                 
  that the bill would be held in committee.