Legislature(2001 - 2002)

2002-04-25 House Journal

Full Journal pdf

2002-04-25                     House Journal                      Page 3137
HB 499                                                                                            
The following was read the second time:                                                             

2002-04-25                     House Journal                      Page 3138
    HOUSE BILL NO. 499                                                                              
    "An Act relating to the sale, lease, exchange, or other disposition                             
    of business property and assets."                                                               
                                                                                                    
with the:                                                  Journal Page                             
                                                                                                    
 JUD RPT CS(JUD) NT 2DP 4NR                                        3063                             
 FN1: ZERO(CED)                                                    3064                             
                                                                                                    
Representative Foster moved and asked unanimous consent that the                                    
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
    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."                                                                                      
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Amendment No. 1 was offered  by Representative Berkowitz:                                            
                                                                                                    
Page 2, line 2 (title amendment):                                                                   
 Delete "before, on, or"                                                                          
                                                                                                    

2002-04-25                     House Journal                      Page 3139
Page 2, line 30:                                                                                    
 Delete "before, on, or"                                                                            
                                                                                                    
Representative Berkowitz moved and asked unanimous consent that                                     
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Rokeberg objected.                                                                   
                                                                                                    
Representative Mulder placed a call of the House.                                                   
                                                                                                    
The call was satisfied.                                                                             
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 499(JUD)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  12   NAYS:  25   EXCUSED:  3   ABSENT:  0                                                  
                                                                                                    
Yeas:  Berkowitz, Cissna, Coghill, Crawford, Croft, Davies, Halcro,                                 
Hudson, Joule, Kapsner, Kerttula, Kookesh                                                           
                                                                                                    
Nays:  Bunde, Chenault, Dyson, Fate, Foster, Green, Harris, Hayes,                                  
James, Kohring, Kott, Lancaster, Masek, McGuire, Meyer, Morgan,                                     
Moses, Mulder, Murkowski, Rokeberg, Scalzi, Stevens, Whitaker,                                      
Williams, Wilson                                                                                    
                                                                                                    
Excused:  Guess, Ogan, Porter                                                                       
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            
                                                                                                    
                                                                                                    
Amendment No. 2 was offered  by Representative Kerttula:                                             
                                                                                                    
Page 2, line 21, following "predecessor;":                                                          
 Delete "or"                                                                                        
                                                                                                    
Page 2, line 23:                                                                                    
 Delete "."                                                                                         
 Insert "; or"                                                                                      
                                                                                                    

2002-04-25                     House Journal                      Page 3140
Page 2, following line 23:                                                                          
 Insert a new paragraph to read:                                                                    
      "(5)  the transfer amounts to little more than a sham                                         
    transaction to avoid liabilities."                                                              
                                                                                                    
Representative Kerttula moved and asked unanimous consent that                                      
Amendment No. 2 be adopted.                                                                         
                                                                                                    
Objection was heard.                                                                                
                                                                                                    
Amendment to Amendment No. 2 was offered  by Representative                                          
Kerttula:                                                                                           
                                                                                                    
 Delete "sham"                                                                                      
 Insert "deceptive"                                                                                 
                                                                                                    
Representative Kerttula moved and asked unanimous consent that                                      
Amendment to Amendment No. 2 be adopted.                                                            
                                                                                                    
Representative Rokeberg objected.                                                                   
                                                                                                    
The Speaker Pro Tempore stated that, without objection, CSHB                                        
499(JUD) would be moved to the bottom of the calendar.