SENATE BILL NO. 336 "An Act relating to excluding professional hockey team members from worker's compensation coverage." ROBERT PEARSON, INTERN, SENATOR LEMAN testified in support of SB 336. He observed that the bill amends Worker's Compensation provisions by adding professional hockey teams to the list of persons not covered under AS 23.30.230. In exchange for this exemption, a team owner would have to provide a medical and disability program to cover the players. Coaches and others associated with the team in the same Worker's Comp risk category would also be covered. They would not be required to cover office personnel. Players would be covered 24 hours a day, whether on duty, travel or their own time. The owner is responsible for the cost of the premiums. The idea was taken from Florida's approach to this problem. The committee was asked to introduce this legislation by the sole professional hockey team in the state, the Anchorage Aces. The Department of Labor, Division of Worker's Compensation has reviewed the legislation and is neutral on the bill. Representative Grussendorf asked if the players support the legislation. Mr. Pearson stated that the players were not in objection to the legislation. Co-Chair Therriault observed that players are required to have other coverage on or off the ice. Representative Martin expressed concern that the legislation is exclusive. Representative Davies did not think that the legislation would fall under special interest legislation. Co-Chair Therriault observed that the legislation could be written to include any hockey teams anywhere in the state of Alaska. Representative Davies questioned if the bill could be written to allow a second professional hockey team in Alaska to be covered. Co-Chair Therriault noted that if a second team did not meet the criteria that they would not have the exemption granted. DWIGHT PERKINS, SPECIAL ASSISTANT, DEPARTMENT OF LABOR responded to questions by Committee members. He explained that where there is compensation by an employer there must be workers' compensation. This concern was alleviated by subsection (9), which provides that they must have workers' coverage. He noted that another team could be covered by the exemption. The legislation does not alleviate the employer's responsibility for injury during the performance of their duties. Representative Mulder noted that workers' compensation provides a shield for the employer from being sued, as well as protection the employee. The exemption would remove the employer's shield. He noted that players have testified in support of the legislation. (Tape Change, HFC 98 -154, Side 1) Mr. Perkins noted that sports officials would be included under the exemption. He explained that the legislation does not require mandatory participation. Representative Davies observed that a second hockey team could opt to participate under workers' compensation. If they do not have insurance for the worker's protection they would have to participate in workers' compensation. Representative Martin reiterated constitutional concerns regarding the legislation's exclusive nature. Mr. Perkins estimated that 4 or 5 other states have similar exemptions. He noted that coverage would be the same as the coverage offered under workers' compensation. The premiums may be less than the premium for workers' compensation. He did not think the Department would support expansion of the legislation to include any professional team. In response to a question by Representative Kohring regarding coverage for semi-professional hockey teams, Mr. Perkins clarified that if there is wage compensation they must be covered under the Workers' Compensation Act. Representative Mulder MOVED to report CSSB 336 (L&C) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 336 (L&C) was REPORTED out of Committee with "no recommendation" and with a Department of Labor.