Legislature(2001 - 2002)
2002-04-25 House Journal
Full Journal pdf2002-04-25 House Journal Page 3146 HB 499 The following, which had been moved to the bottom of the calendar (page 3140), was again before the House with Amendment to Amendment No. 2 moved and pending: 2002-04-25 House Journal Page 3147 CS FOR HOUSE BILL NO. 499(JUD) "An Act declaring legislative intent to reject the continuity of enterprise exception to the doctrine of successor liability adopted in Savage Arms, Inc. v. Western Auto Supply, 18 P.3d 49 (Alaska 2001) as it relates to products liability; providing that a successor corporation or other business entity that acquires assets of a predecessor corporation or other business entity is subject to liability for harm to persons or property caused by a defective product sold or otherwise distributed commercially by the predecessor only if the acquisition is accompanied by an agreement for the successor to assume the liability, results from a fraudulent conveyance to escape liability for the debts or liabilities of the predecessor, constitutes a consolidation or merger with the predecessor, or results in the successor's becoming a continuation of the predecessor; defining 'business entity' that acquires assets to include a sole proprietorship; and applying this Act to the sale, lease, exchange, or other disposition of assets by a corporation, a limited liability company, a partnership, a limited liability partnership, a limited partnership, a sole proprietorship, or other business entity that occurs before, on, or after the effective date of this Act." Representative Berkowitz placed a call of the House. Representative Kerttula moved and asked unanimous consent to withdraw Amendment No. 2. There being no objection, it was so ordered. Amendment No. 3 was offered by Representative Berkowitz: Page 2, line 21, following "predecessor;": Delete "or" Page 2, line 23: Delete "." Insert "; or" Page 2, following line 23: Insert a new paragraph to read: "(5) results in the transfer of the business as an ongoing concern." 2002-04-25 House Journal Page 3148 Representative Berkowitz moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Rokeberg objected. Representative Berkowitz lifted the call. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 499(JUD) Second Reading Amendment No. 3 YEAS: 7 NAYS: 29 EXCUSED: 3 ABSENT: 1 Yeas: Berkowitz, Cissna, Crawford, Joule, Kapsner, Kookesh, Moses Nays: Bunde, Chenault, Coghill, Croft, Davies, Dyson, Fate, Foster, Green, Halcro, Harris, Hayes, Hudson, James, Kerttula, Kohring, Kott, Lancaster, Masek, Meyer, Morgan, Mulder, Murkowski, Rokeberg, Scalzi, Stevens, Whitaker, Williams, Wilson Excused: Guess, Ogan, Porter Absent: McGuire And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Davies: Page 2, line 21, following "predecessor;": Delete "or" Page 2, line 23: Delete "." Insert "; or" Page 2, following line 23: Insert a new paragraph to read: "(5) the transfer has the effect of shielding a person from legitimate liability." 2002-04-25 House Journal Page 3149 Representative Davies moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Rokeberg objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 499(JUD) Second Reading Amendment No. 4 YEAS: 14 NAYS: 23 EXCUSED: 3 ABSENT: 0 Yeas: Berkowitz, Bunde, Cissna, Crawford, Croft, Davies, Hayes, Hudson, Joule, Kapsner, Kerttula, Kookesh, Moses, Wilson Nays: Chenault, Coghill, Dyson, Fate, Foster, Green, Halcro, Harris, James, Kohring, Kott, Lancaster, Masek, McGuire, Meyer, Morgan, Mulder, Murkowski, Rokeberg, Scalzi, Stevens, Whitaker, Williams Excused: Guess, Ogan, Porter And so, Amendment No. 4 was not adopted. Representative Foster moved and asked unanimous consent that CSHB 499(JUD) be considered engrossed, advanced to third reading, and placed on final passage. Representative Berkowitz objected. CSHB 499(JUD) will be in third reading on tomorrow's calendar.