HOUSE BILL NO. 221 "An Act relating to workers' compensation for volunteer ambulance attendants, police officers, and fire fighters; and providing for an effective date." Representative Hudson explained that House Bill 221 was introduced to clarify workers' compensation statutes that have been the cause of much confusion or misinterpretation, particularly with regard to benefits for volunteers. He emphasized that volunteers are extensively employed. He noted that workers' compensation benefits are intended, subject to minimum and maximum limits, to replace the lost wages of injured workers. Section 1 of HB 221 recognizes that volunteers should receive wage replacement based on the actual wages lost or the comparable wage they would receive were they paid employees rather than volunteers. Current law limits wage loss benefits for volunteer fire fighters, for example, who may have high earning capacity in their regular employment, to the benefits based on the wage paid a carrier fire fighter. House Bill 221 corrects the inequities in benefit calculations for volunteer ambulance attendants, police officers and fire fighters by calculating compensation based on the higher wage earned. Representative Hudson observed that section 2 of HB 221 will extend coverage for volunteer fire fighters. In the past year, compensation benefits for volunteer fire fighters, while engaged in fire department activities other than responding to emergencies, has been questioned. Since "employees" are covered for injuries arising out of and in the course of employment, volunteer fire fighters are similarly covered. He asserted that AS 23.30.243 has been misinterpreted to limit coverage only to those instances where the volunteer was responding to an emergency. Section 2 of HB 221 amends AS 23.30 by adding a new section that defines volunteer ambulance attendants, police officers and fire fighters as "employees." Co-Chair Larson asked how reimbursement would be determined. Representative Hudson pointed out that rates are set by formula in AS 23.31.75. The weekly rate will be based on the individuals employment. The maximum amount an individual would be reimbursed is $700 dollars. Representative Martin asked how insurance claims would be handled. Representative Hudson clarified that volunteers become temporary employees of the municipality. The municipality carries the insurance. The legislation will 8 only specify that volunteers will be compensated comparable to the full time employee. Costs will be paid by the municipality up to the cap. Representative Hudson explained that section 3 repeals AS 23.30.092. This statute has been interpreted to mean that a municipality "may" provide workers compensation coverage for volunteers. Conversely, it may be incorrectly interpreted to mean that a municipality may elect not to provide coverage. In reality, this section provides that an alternative policy may substitute for a workers' compensation policy so long as the benefits are equal or better than a statutory workers' compensation policy. However, this section has done nothing but cause confusion and I believe repealing it will clarify that all volunteers who meet the definition in AS 23.30 must be covered by workers' compensation. JOHN GEORGE, LOBBYIST, ALASKA STATE FIRE FIGHTERS ASSOCIATION stated that the employer of the volunteers' regular employment has no involvement with the insurance or injury costs incurred by a volunteer. The current level of reimbursement for volunteer injury is based on the salary of an entry level fire fighter. The maximum benefit a volunteer could be eligible for is $36,000 a year. Representative Hanley asked if a municipal fiscal note should be attached. Representative Hudson stated that, he understood that, the impact to municipalities would be insignificant. KENT SWISHER, ALASKA MUNICIPAL LEAGUE concluded that since the legislation contains maximum caps, municipalities' concerns are not severe. The Alaska Municipal League supports compensation for accidents that occur during training. Representative Grussendorf observed that municipalities would be mandated to carry workers' compensation for volunteers. Mr. George pointed out that current law requires that municipalities provide workers' compensation or another policy of equal or greater benefits. Representative Martin noted that police department and emergency medical volunteers would also be covered. Representative Foster MOVED to report HB 221 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 221 was reported out of Committee with individual 9 recommendations and with two zero fiscal notes by the Department of Administration and the Department of Labor.