Legislature(2009 - 2010)BUTROVICH 205

04/11/2010 01:45 PM Senate RULES

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01:57:08 PM Start
01:57:53 PM SB303
02:03:13 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Immediately Following Session --
Moved 2d CSSB 303(RLS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
                SENATE RULES STANDING COMMITTEE                                                                               
                         April 11, 2010                                                                                         
                           1:57 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Charlie Huggins, Chair                                                                                                  
Senator Gary Stevens, Vice Chair                                                                                                
Senator Johnny Ellis                                                                                                            
Senator Bert Stedman                                                                                                            
MEMBERS ABSENT                                                                                                                
Senator Lyman Hoffman                                                                                                           
COMMITTEE CALENDAR                                                                                                            
SENATE BILL NO. 303                                                                                                             
"An Act relating to a  subcontractor's, contractor's, and project                                                               
owner's liability for workers'  compensation, to sole proprietors                                                               
and partnerships  without employees, and to  managers or managing                                                               
members  of limited  liability companies,  and excluding  certain                                                               
persons  from  liability for  securing  the  payment of  workers'                                                               
compensation  benefits   to  employees;  and  providing   for  an                                                               
effective date."                                                                                                                
     - MOVED 2d CSSB 303(RLS) FROM COMMITTEE                                                                                    
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB 303                                                                                                                  
SHORT TITLE: WORKERS' COMP; CONTRACTORS & OTHERS                                                                                
SPONSOR(s): LABOR & COMMERCE                                                                                                    
03/08/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/10       (S)       L&C, JUD                                                                                               
03/25/10       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/25/10       (S)       Heard & Held                                                                                           
03/25/10       (S)       MINUTE(L&C)                                                                                            
04/01/10       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/01/10       (S)       Moved SB 303 Out of Committee                                                                          
04/01/10       (S)       MINUTE(L&C)                                                                                            
04/02/10       (S)       L&C RPT  3DP 1NR                                                                                       
04/02/10       (S)       DP: PASKVAN, DAVIS, THOMAS                                                                             
04/02/10       (S)       NR: MEYER                                                                                              
04/05/10       (S)       JUD AT 11:00 AM BUTROVICH 205                                                                          
04/05/10       (S)       CITATIONS                                                                                              
04/07/10       (S)       JUD RPT CS  2DP 1NR  NEW TITLE                                                                         
04/07/10       (S)       DP: FRENCH, WIELECHOWSKI                                                                               
04/07/10       (S)       NR: COGHILL                                                                                            
04/07/10       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
04/07/10       (S)       -- Continued from 4/5/10 Meeting --                                                                    
04/10/10       (S)       RETURNED TO RLS COMMITTEE                                                                              
04/10/10       (S)       RULES WAIVED PUBLIC HEARING NOTICE,                                                                    
                         RULE 23                                                                                                
WITNESS REGISTER                                                                                                              
SENATOR JOE PASKVAN                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 303.                                                                                        
DENNIS BAILEY, Drafting Attorney                                                                                                
Legislative Legal                                                                                                               
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION  STATEMENT:  Answered  questions   on  SB  303  and  the                                                             
ACTION NARRATIVE                                                                                                              
1:57:08 PM                                                                                                                    
CHAIR CHARLIE HUGGINS called the  Senate Rules Standing Committee                                                             
meeting to order  at 1:57 p.m. Present at the  call to order were                                                               
Senators Ellis, Stedman, Stevens, and Huggins.                                                                                  
           SB 303-WORKERS' COMP; CONTRACTORS & OTHERS                                                                       
CHAIR HUGGINS announced SB 303 to be up for consideration.                                                                      
1:57:53 PM                                                                                                                    
SENATOR ELLIS moved  to bring SB 303 before  the committee. There                                                               
were no  objections and  it was so  ordered. [CSSB  303(JUD), 26-                                                               
LS1089\P, was before the committee].                                                                                            
SENATOR  JOE  PASKVAN, sponsor  of  SB  303,  said the  issue  is                                                               
whether section  3 will be  removed from  the bill. He  said that                                                               
while  he recognized  some  good social  policy  issues would  be                                                               
advanced by  keeping section  3 in the  bill, he  also understood                                                               
the   political  reality   that  those   social  policies   could                                                               
potentially defeat  the entire bill.  Removing section  3 returns                                                               
language in SB 303 to  the original language, which contained the                                                               
conservative principle that  if you break it you pay  for it, and                                                               
he had  no problems with doing  that. Establishing accountability                                                               
and responsibility  is the largest  issue he is advancing  in the                                                               
bill with section 3 deleted.                                                                                                    
CHAIR HUGGINS  asked him to  give an  overview of what  section 3                                                               
SENATOR PASKVAN explained that section  3 says that everyone on a                                                               
job would  be required to  have workers'  compensation insurance.                                                               
If for some  reason a subcontractor to a contractor  did not have                                                               
workers' compensation  insurance and there  were to be  a premium                                                               
increase to the  contractor because of a  loss, the subcontractor                                                               
would be required to reimburse  the contractor for the additional                                                               
cost. Some of  the objection to the bill was  that it would force                                                               
everyone  to   carry  workers'  compensation  insurance   at  the                                                               
subcontractor level.  The opposition  to that believes  it should                                                               
be their choice.                                                                                                                
2:00:58 PM                                                                                                                    
DENNIS  BAILEY,  Drafting  Attorney,  Legislative  legal,  Alaska                                                               
State  Legislature,   said  Senator  Paskvan's   explanation  was                                                               
2:01:49 PM                                                                                                                    
CHAIR  HUGGINS  moved  Amendment 1,  labeled  26-LS1089\P.1,  and                                                               
objected for purposes of discussion.                                                                                            
                          AMENDMENT 1                                                                                       
     OFFERED IN THE SENATE                   BY SENATOR PASKVAN                                                                 
     TO:  CSSB 303(JUD)                                                                                                         
     Page 1, lines 2 - 3:                                                                                                       
          Delete   ",    to   workers'    compensation   for                                                                  
     independent contractors without employees,"                                                                              
     Page 2, lines 10 - 20:                                                                                                     
          Delete all material.                                                                                                  
     Renumber the following bill sections accordingly                                                                           
MR. BAILEY said the amendment essentially deletes section 3.                                                                    
CHAIR HUGGINS  said that  the first  item in  the amendment  is a                                                               
title change  that was necessary  because of deleting  section 3.                                                               
The second part  was the action of deleting section  3 on page 2,                                                               
lines 10-20.                                                                                                                    
SENATOR  ELLIS said  he would  have preferred  the CSSB  303(JUD)                                                               
version for  some of the goals  they were trying to  achieve, but                                                               
he  also recognized  political reality  and  wouldn't hinder  the                                                               
bill's progress.                                                                                                                
CHAIR  HUGGINS   removed  his   objection.  Finding   no  further                                                               
objections; he  said Amendment 1  was adopted. Therefore  2d CSSB
303(RLS) was moved from committee.                                                                                              
2:03:13 PM                                                                                                                    
CHAIR  HUGGINS  thanked everyone  and  adjourned  the meeting  at                                                               

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