Legislature(1993 - 1994)
1993-03-26 House Journal
Full Journal pdf1993-03-26 House Journal Page 0794 HB 257 HOUSE BILL NO. 257 by the House Rules Committee by request of the Governor; entitled: "An Act relating to the Uniform Commercial Code; amending Alaska Rules of Civil Procedure 8 and 82, and Alaska Rule of Evidence 402; and providing for an effective date." was read the first time and referred to the Labor & Commerce, State Affairs, Judiciary and Finance Committees. The following fiscal notes apply to HB 257: Zero fiscal note, Dept. of Commerce & Economic Development, 3/26/93 Zero fiscal note, Dept. of Administration, 3/26/93 The Governor's transmittal letter, dated March 26, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am 1993-03-26 House Journal Page 0795 HB 257 transmitting a bill relating to amendments and additions to the Uniform Commercial Code (UCC). The bill contains three basic parts recommended by the National Conference of Commissioners on Uniform State Laws (NCCUSL): 1) a new article 2A on personal property leasing; 2) amendments to the UCC's articles 3 and 4 regarding negotiable instruments and bank deposits and collections; and 3) repeal of UCC article 6 on bulk sales. Nothing in the present UCC deals with leasing of personal property, which ranges from cars to heavy equipment and oil rigs. The new article would provide statutory answers to a broad range of legal issues, covering such matters as offer and acceptance, warranties, mistake, failure to perform, risk of loss, and remedies. The current lack of these rules promotes litigation. In the UCC, articles 3 and 4 are companion articles. Article 3 provides for all negotiable instruments including checks and certificates of deposits, while article 4 deals with bank deposits and collections. Amendments in this bill pertaining to these two articles are made primarily to recognize modern electronic technology and banking prac- tices. The revisions provide numerous benefits to the public interest, including certainty of the law, speed and reliability by addressing new technologies, and clarification and modernization of these areas of the UCC. A "bulk sale" is usually one in which a business sells all or a large part of its inventory to a single buyer outside the ordinary course of business. Since its original enactment, new laws have partially overlapped article 6, and more sophisticated and wide-spread inventory financing under article 9 of the UCC has provided even more significant protection for creditors. The NCCUSL recommended repeal of article 6, although also offered a thorough revision for states where this would be appropriate. As of 1991, 14 states had addressed the issue with 10 opting for repeal. The UCC is a comprehensive codification of commercial law. However, to retain its vitality it must be updated on a continuing basis. This bill provides for significant improvements in Alaska law. The changes it contains are essential to business and consumers involved 1993-03-26 House Journal Page 0796 HB 257 in commercial transactions. It will help keep Alaska's Uniform Commercial Code up to date, thus encouraging a predictable and favorable commercial climate, in line with the rest of the country. Sincerely, /s/ Walter J. Hickel Governor"