SENATOR KELLY announced HB 277 (INDEMNIFICATION OF PUBLIC EMPLOYEES) to be up for consideration. REPRESENTATIVE BRIAN PORTER said HB 277 provides codification for state policy and for policy that exists in many other municipalities. It provides indemnification for public employees who, acting within the scope of their employment, omitted to perform something or performed something negligently and were sued. It will not indemnify an employee for gross negligence nor will it provide indemnification for punitive damages. He said HB 277 is supported by the Peace Officers Association, the Chiefs Association, and the Municipality of Anchorage. SENATOR RIEGER asked about the exemption if an employee has been terminated. REPRESENTATIVE PORTER said the action of terminating an employee to avoid the liability is covered in the bill, specifically. SENATOR RIEGER asked if he would object to that wording if it were removed. REPRESENTATIVE PORTER said he wouldn't have a problem with that. SUSAN COX, Assistant Attorney General, said the State of Alaska has waived its immunity from suit, except in limited circumstances. This bill does not affect any injured parties' ability to sue or collect damages. This pertains to the person who is being sued and to their ability to have their employer defend them and pay the damages if any are assessed against them. SENATOR RIEGER wondered if this was a path to the deep pocket of municipal governments that didn't exist before. MS. COX said that the public employer is vicariously liable for the acts of its employees anyway. Number 296 SENATOR LINCOLN asked if part time employees would be covered by this as well as all Boards and Commissions. MS. COX said the definition is rather broad. It does specifically say that it includes members of Boards and Commissions, although they do not normally consider those employment arrangements. SENATOR SHARP asked if there were situations where an employee does not notify an employer of a problem caused by his actions and the employer, therefore, would lose the defense through insurance from failure to notify. MS. COX answered that there are requirements within the bill that the employee has to provide notice of a claim within a certain amount of time if he wants to receive defense.