Legislature(2003 - 2004)

03/11/2004 03:35 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             SB 338-CLAIMS AGAINST STATE EMPLOYEES                                                                          
                                                                                                                                
CHAIR GARY STEVENS  announced SB 338 to be  up for consideration.                                                               
He asked if Gayle Voigtlander was online.                                                                                       
                                                                                                                                
GAYLE VOIGTLANDER,  supervising attorney for the  tort section of                                                               
the Department of Law, identified  herself and explained that she                                                               
would address  the bill with  the amendment, which  they support.                                                               
The  bill  provides  the  ability for  the  attorney  general  to                                                               
dismiss state employees who are  individually named as defendants                                                               
in a lawsuit and substitutes the state.                                                                                         
                                                                                                                                
This  is good  legislation she  said. Under  existing law,  state                                                               
employees may  be sued  in combination with  the State  of Alaska                                                               
for  something   the  employee  did   in  the  course   of  their                                                               
employment. When  this happens, the employee  must participate in                                                               
the lawsuit until it is  resolved through motion practice, a jury                                                               
trial or  appeal, which  may be  very distracting  and disruptive                                                               
for  them in  their day-to-day  job requirements.  This bill,  as                                                               
amended, would  allow the  attorney general  to certify  that the                                                               
state employee was  acting within the course  of their employment                                                               
after  which  the  state  employee   would  be  dismissed  as  an                                                               
individually  sued defendant  in  the lawsuit  and  the State  of                                                               
Alaska would be substituted as  the defendant. The state employee                                                               
would no longer be involved in any way in the lawsuit.                                                                          
                                                                                                                                
She  explained that  she has  been handling  defense of  State of                                                               
Alaska/Alaska   state  employee   cases  since   1987  with   the                                                               
Department of  Law and  when there  has been  a genuine  issue of                                                               
state negligence, it is usually  more of an institutional problem                                                               
rather than any  specific employee, which is  another reason that                                                               
the bill makes  sense. "We think the certification  process is an                                                               
excellent way  to handle plaintiff's  claims against  the state."                                                               
In  fact,  the federal  government  uses  the same  certification                                                               
process for claims against federal employees.                                                                                   
                                                                                                                                
The only  opposition they  are aware of  comes from  PSEA (Public                                                               
Safety  Employees Association).  She said,  "We've tried  to work                                                               
with them on the bill, but  we've been unsuccessful in doing so."                                                               
In the  interest of  moving the bill  forward, the  Department of                                                               
Law would support a conceptual  amendment to exclude PSEA members                                                               
from the provisions of the certification process.                                                                               
                                                                                                                                
MS. VOIGTLANDER  advised that Jan  DeYoung was also  available to                                                               
answer questions and she is  more familiar with the labor aspects                                                               
of law.                                                                                                                         
                                                                                                                                
CHAIR GARY STEVENS asked her to explain the process that occurs                                                                 
when the attorney general doesn't certify that the employee was                                                                 
operating within the scope of their work.                                                                                       
                                                                                                                                
MS. VOIGTLANDER said:                                                                                                           
                                                                                                                                
     If  the attorney  general makes  the decision  that the                                                                    
     employee  was not  acting within  the  course of  their                                                                    
     employment then  the employee  may litigate  that issue                                                                    
     by  taking a  petition to  the superior  court. If  the                                                                    
     superior court  finds that they were  acting within the                                                                    
     course  of their  employment, they  are dismissed  from                                                                    
     the  lawsuit  as they  would  have  been if  there  had                                                                    
     initially   been  certification   and   the  state   is                                                                    
     substituted in as the defendant.                                                                                           
                                                                                                                                
     In  addition  if  the state  employee  challenges  that                                                                    
     certification  decision and  is successful  in superior                                                                    
     court, then this bill provides  that the state employee                                                                    
     will  be  reimbursed  the state  employee's  reasonable                                                                    
     attorney's  fees  and  costs  in  having  to  take  and                                                                    
     litigate the petition.                                                                                                     
                                                                                                                                
SENATOR BERT STEDMAN made a motion to adopt amendment 1 for                                                                     
discussion.                                                                                                                     
                                                                                                                                
CHAIR GARY STEVENS noted that Ms. Voigtlander had been speaking                                                                 
to amendment 1. There was no objection to amendment 1 and it was                                                                
adopted.                                                                                                                        
                                                                                                                                
He asked Ms. DeYoung if she had comments to make and was told                                                                   
she was available for questions.                                                                                                
                                                                                                                                
                                                            23G-2                                                               
                                                         3/5/2004                                                               
                                                       (11:43 AM)                                                               
                                                                                                                                
                          AMENDMENT 1                                                                                           
                                                                                                                                
OFFERED IN THE SENATE STATE                                                                                                     
     AFFAIRS COMMITTEE                                                                                                          
          TO: SB 338                                                                                                            
                                                                                                                                
                                                                                                                                
Page 1, line 1:                                                                                                                 
     Delete "relating to the state's"                                                                                         
                                                                                                                                
Page 1, lines 2-4:                                                                                                              
     Delete all material.                                                                                                       
                                                                                                                                
Page 1, line 7:                                                                                                                 
     Delete "adding new sections to read"                                                                                       
     Insert "adding a new section to read"                                                                                      
                                                                                                                                
Page 3, line 2, following "defendant":                                                                                          
     Insert "Upon certification by the court, the state shall                                                                   
reimburse the state employee the employee's reasonable costs and                                                                
attorney fees incurred in bringing the petition."                                                                               
                                                                                                                                
Page 3, following line 12:                                                                                                      
     Insert the following new material:                                                                                         
          "(g) In this section,                                                                                                 
               (1) "acting within the scope of the employee's                                                                   
     office or employment" means acts or omissions                                                                              
                    (A) that the state employee is employed or                                                                  
          authorized to perform;                                                                                                
                    (B) of the state employee that occur                                                                        
          substantially within the authorized time and space                                                                    
          limit;                                                                                                                
                    (C) that are activated by a purpose to serve                                                                
          the state; and                                                                                                        
                    (D) that do not constitute acting, or                                                                       
          failing to act, with willful, reckless, or intentional                                                                
          misconduct, or with gross negligence or malice;                                                                       
               (2) "state employee"                                                                                             
                    (A) means                                                                                                   
                         (i) a permanent, probationary,                                                                         
               seasonal, temporary, provisional, or nonpermanent                                                                
               employee in the executive, legislative, or                                                                       
               judicial branch of the state government, whether                                                                 
               in the classified, partially exempt, or exempt                                                                   
               service; or                                                                                                      
                         (ii) a person appointed to a board or                                                                  
               commission of the state government;                                                                              
                    (B) does not include an employee of                                                                         
                         (i) the University of Alaska;                                                                          
                         (ii) the Alaska Railroad Corporation;                                                                  
               or                                                                                                               
                         (iii) a political subdivision of the                                                                   
               state, including a regional education attendance                                                                 
               area."                                                                                                           
                                                                                                                                
Page 3, line 13, through Page 6, line 7:                                                                                        
     Delete all material.                                                                                                       
                                                                                                                                
Page 6, line 10:                                                                                                                
     Delete "AS 09.50.253 - 09.50.257, the"                                                                                 
     Insert "AS 09.50.253, the"                                                                                             
                                                                                                                                
Page 6, line 13, through Page 7, line 28:                                                                                       
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
SENATOR  GRETCHEN  GUESS  asked  whether  there  was  any  public                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR GARY  STEVENS said  no one  was listed  to testify,  but he                                                               
wanted to hear from PSEA if a representative was present.                                                                       
                                                                                                                                
SENATOR  GUESS added  that  she  would also  like  to receive  an                                                               
explanation on part of the amendment,  but she would like to hear                                                               
from PSEA fist.                                                                                                                 
                                                                                                                                
CHAIR GARY STEVENS asked the  PSEA representative to step forward                                                               
and noted that the committee had the PSEA position paper.                                                                       
                                                                                                                                
JOE  D'AMICO,  business  manager  for  PSEA,  reported  that  the                                                               
association had significant concerns  on the initial bill because                                                               
of a clause that removed  indemnification rights if a lawsuit was                                                               
served  against   a  trooper.   Under  their   current  contract,                                                               
troopers, airport police and firefighters  are indemnified by the                                                               
state unless  "a court of competent  jurisdiction determines they                                                               
are acting outside of the scope  of their employment." He said he                                                               
understands   that  the   amendment  removes   the  objectionable                                                               
sections of the bill.                                                                                                           
                                                                                                                                
The PSEA  attorneys are thoroughly reviewing  the amended version                                                               
of the  House companion bill  and that review should  be finished                                                               
by tomorrow  at which time  their position may change.  They have                                                               
been unsuccessful in getting as  much clarification from the AG's                                                               
office as they  would like, but he wouldn't  characterize that as                                                               
anything more than people with busy schedules playing phone tag.                                                                
                                                                                                                                
He  summarized saying,  "We do  want to  work with  the state  on                                                               
this. The bill,  on its face, has  some good ideas in  it, but as                                                               
originally  written and  what caused  our  position papers  would                                                               
have been a significant loss  of protection for state employees -                                                               
especially a class  of employees who have to make  life and death                                                               
decisions in the blink of an eye."                                                                                              
                                                                                                                                
CHAIR GARY STEVENS  stated that he appreciated  the PSEA position                                                               
and  it wasn't  his intention  to rush  the bill.  Nonetheless he                                                               
looked  forward  to  hearing  from the  association  as  soon  as                                                               
possible regarding whether or not  they were comfortable with the                                                               
amendment,  which is  identical  to the  amended  version of  the                                                               
House bill.  If PSEA is comfortable,  that's fine and if  not the                                                               
committee  could consider  a possible  exclusion of  PSEA as  the                                                               
Department of Law suggested.                                                                                                    
                                                                                                                                
CHAIR GARY STEVENS held SB 338 in committee.                                                                                    

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