Legislature(2001 - 2002)
2002-05-16 Senate Journal
Full Journal pdf2002-05-16 Senate Journal Page 3617 HB 499 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 2002-05-16 Senate Journal Page 3618 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" was read the second time. Senator Leman moved and asked unanimous consent that the bill be advanced to third reading and placed on final passage. Senator Ellis objected. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: CSHB 499(JUD) Advance from Second to Third Reading? YEAS: 17 NAYS: 3 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Cowdery, Davis, Donley, Green, Halford, Hoffman, Kelly, Leman, Olson, Phillips, Stevens, Taylor, Therriault, Torgerson, Ward, Wilken Nays: Ellis, Elton, Lincoln and so, the bill advanced to third reading. CS FOR HOUSE BILL NO. 499(JUD) was read the third time. The question being: "Shall 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 2002-05-16 Senate Journal Page 3619 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" pass the Senate?" The roll was taken with the following result: CSHB 499(JUD) Third Reading - Final Passage YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Cowdery, Davis, Green, Hoffman, Kelly, Leman, Olson, Phillips, Stevens, Taylor, Therriault, Torgerson, Ward, Wilken Nays: Austerman, Donley, Ellis, Elton, Halford, Lincoln and so, CS FOR HOUSE BILL NO. 499(JUD) passed the Senate, was signed by the President and Secretary and returned to the House.