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.