03/22/1994 01:37 PM Senate L&C

 SENATOR KELLY brought a proposed committee substitute for SB 356              
 (WORKERS COMPENSATION FOR RECREATIONAL ACTIVITIES) before                     
 committee, and asked his committee aide, JOSH FINK, to review the             
 changes in the committee substitute.                                          
                                                                               
 MR. FINK explained the committee substitute would do two things.              
 Section 1 would exempt amateur sports officials employed on a                 
 contractual basis from workers compensation coverage.  Section 2              
 would remove employers from workers compensation liability for                
 their employees if their employees are voluntarily participating in           
 a recreational activity sponsored by the employer.                            
                                                                               
 MR. FINK stated this legislation was combined with two bills from             
 the House side.  Section 1 was HB 290 (EXEMPT SPORTS OFFICIALS FROM           
 WORKERS COMPENSATION), and Section 2 was REPRESENTATIVE NAVARRE'S             
 HB 302 (WORKERS COMPENSATION FOR RECREATIONAL ACTIVITIES).  He                
 offered to address Section 2 until REPRESENTATIVE NAVARRE arrived.            
                                                                               
 MR. FINK explained that Section 1 arose out of a situation in                 
 Anchorage, when prior to 1992, the Anchorage Sports Association               
 considered its umpires, referees, time keeps, etc., not as                    
 employees, but hired on a contractual basis to provide services               
 during the summer.  In the fall of 1992, the insurance carrier for            
 the Anchorage Sports Association did an audit, and claimed these              
 were employees of the association, .....                                      
                                                                               
 TAPE 94-17, SIDE B                                                            
 Number 001                                                                    
                                                                               
 ... and you've got to pay the workers compensation premiums.  The             
 Anchorage Sports Association contested their ruling, and it went to           
 the Division of Insurance which supported the insurance carrier               
 contention they were employees.                                               
                                                                               
 MR. FINK explained the National Council on Compensation Insurance             
 (NCCI) sets the rates, then gave a classification of these amateur            
 sports officials of extremely high risk, the same as a professional           
 athlete.  The end results would mean a compensation rate of 15 to             
 54% of their compensation to these sports officials in workers                
 compensation.  This was appealed to the NCCI to take another look             
 and to reclassify, but all appeals were denied.  A decision is                
 currently pending from the attorney general's office, but there               
 does not seem to be an optimistic result from this request.                   
                                                                               
 SENATOR KELLY explained the bill talks about people who are moon-             
 lighting from daytime employment, and the remuneration for these              
 jobs is minimal.                                                              
                                                                               
 MR. FINK explained the bill would exempt these amateur sports                 
 officials if they are performing their services if a team does not            
 receive compensation.  He said the bill would keep these sports               
 associations in business, and he reviewed letters of support from             
 sports associations from across the state.                                    
                                                                               
 REPRESENTATIVE NAVARRE explained Section 2 was from his bill on the           
 House side, and would change the definition section of the workers            
 compensation statutes.  He gave an example of Arbys, a family owned           
 business in his district to defend his proposed changes.                      
                                                                               
 SENATOR KELLY asked if employees from Arbys were allowed to play on           
 the team, and REPRESENTATIVE NAVARRE explained the sponsorship of             
 a team.                                                                       
                                                                               
 Number 043                                                                    
                                                                               
 SENATOR SALO asked REPRESENTATIVE NAVARRE for clarification on the            
 playing fields and the court's interpretation.                                
                                                                               
 SENATOR LINCOLN expressed interest in the remote job site aspect of           
 the legislation, and she used a construction crew as an example to            
 ask about liability.  REPRESENTATIVE NAVARRE explained they would             
 be eligible for workers compensation claims, because recreation is            
 provided as part of the job activity.                                         
                                                                               
 SENATOR KELLY clarified there was no objections from the labor                
 unions.                                                                       
                                                                               
 SENATOR RIEGER moved to adopt the new CS for SB 356, 8-LS1812\E.              
 Without objections, so ordered.                                               
                                                                               
 SENATOR RIEGER moved to pass CS FOR SENATE BILL NO. 356(L&C)                  
 (WORKERS COMPENSATION FOR RECREATIONAL ACTIVITIES) from committee             
 with individual recommendations.  Without objections, so ordered.