Legislature(1993 - 1994)
03/09/1994 01:15 PM House JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
Number 660
HB 300 - LIABILITY: COMMERCIAL RECREATION ACTIVITY
CHAIR PORTER stated that HB 300 would be taken up next.
Number 665
REP. BILL HUDSON, Chair of the House Labor & Commerce
Committee, sponsor of HB 300, said the bill was developed
upon the request of small tourism based businesses and other
recreational organizations/businesses.
REP. HUDSON said that HB 300 would establish a balance of
responsibility of those operating the activities, as well as
those who participate in commercial recreational facilities.
(Rep. Hudson read from a sponsor statement.) For further
clarification he quoted Section 2 from the sectional
analysis.
REP. HUDSON said that passage of this bill would reduce
insurance premiums as well as reduce accidents.
REP. HUDSON added that he had four amendments for the
committee's consideration.
Number 785
KAREN COWART, Alaska Visitors Association, testified in
support of HB 300. She said it is imperative for the
recreational industry to allow growth and development.
Currently, she said costs are rising greatly because of
nuisance litigation, inhibiting the growth and expansion of
businesses. The passage of HB 300, by clarifying
responsibility of the individual as well as business, would
alleviate the high cost of liability insurance.
Number 800
NANCY LETHCOE, President, Alaska Wilderness Recreation and
Tourism Association, testified in support of HB 300 and the
additional amendments offered by Rep. Hudson.
MS. LETHCOE said that adventure travel and ecotourism
businesses are growing at a rate of twenty percent a year.
She went on to say that passage of HB 300 would guarantee a
basic standard and professional expertise when working with
clients.
REP. NORDLUND said he supported HB 300 because he felt that
it would help make operations safer and help clarify the
inherent risk involved in some of the stated recreational
activities. He asked if passage of HB 300 will help
decrease insurance cost.
Number 866
MS. LETHCOE responded yes and further stated that it was
requested by the insurance company that her organization
pursue legislation with regard to liability. She went on to
say that in other states with similar legislation studies
show a decrease of 15-20% in insurance rates.
TAPE 94-36, SIDE A
Number 010
REP. NORDLUND asked Ms. Lethcoe if she would follow up with
him in the next year to see if passage of HB 300 did Affect
insurance rates.
REP. PHILLIPS commented on the high insurance rates she
experienced as a private business owner.
Number 028
MS. LETHCOE added that many entrepreneurs have researched a
potential business, have the professional training and
financial capabilities to open and operate a business, but
the cost of insurance is prohibitive.
CHAIR PORTER asked for a motion to adopt CSHB 300(JUD).
Rep. James moved the motion. CSHB 300(JUD) was adopted.
REP. HUDSON discussed the amendments as follows: on page 2,
line 10, after "learn about" add "and expressly accepts" to
more specifically state that someone not only learns about
but accepts.
Number 129
The committee discussed whether the wording should be
"accept" rather than "accepts." It was decided that
"accept" was acceptable.
Number 184
REP. NORDLUND asked what the exact meaning of "expressly
accept" and aired a concern that perhaps this wording would
create more litigation than it would discourage. He asked
if it meant a written statement.
Number 202
REP. HUDSON said it was state of the art expression.
With no objection, Amendment 1 was adopted.
REP. HUDSON continued with Amendment 2, page 2, line 24,
insert after (A) "fundamental." This was a recommendation
from outfitters and guide associations, the two underwriters
of liability.
Rep. Hudson said that line 2 would read "fundamental and
inherent risks." It would be impossible to explain all the
inherent risks and by inserting fundamental would recognize
that fact.
Number 216
Amendment 2 was moved and adopted without objection.
Number 229
REP. HUDSON offered Amendment 3, page 2, line 25, delete
"safely." He said that it was brought to his attention that
though an organization may make every effort to make a
particular activity safe, safety can not be guaranteed.
With Amendment 2 it clarifies the language in case of
litigation.
Number 250
REP. GREEN objected to the amendment for purposes of
discussion. He aired a concern regarding the potential
shifting of responsibility to the operator.
Number 270
REP. NORDLUND shared Rep. Green's concern. He commented
that removing "safely" did not really change anything.
Number 294
REP. HUDSON said there is inherent risk involved in the type
of activities addressed in HB 300. A business or
organization can educate and inform participants but cannot
guarantee that the individual could "safely" participate.
He further noted that if "safely" were left in, it may
encourage litigation rather than discourage it.
REP. JAMES supported the amendment and said that an
individual could have all the appropriate equipment and
skill but the activity could still be unsafe.
Number 312
REP. GREEN noted that in the bill it says that an
organization or business only has to "explain" the risks,
not guarantee safety.
Number 320
REP. JAMES, CHAIR PORTER and DANIELLA LOPER agreed with the
concerns of Rep. Hudson.
REP. GREEN maintained his objection to Amendment 3. A roll
call vote was taken. Amendment 3 was adopted.
Number 360
REP. HUDSON introduced Amendment 4, which lists types of
activities that pertain to HB 300.
Number 396
REP. JAMES asked if "adventure" could be included to cover
types of activities.
Number 405
MS. LETHCOE requested that "llama trips" be added to the
list.
Number 419
REP. NORDLUND pointed out that the statement "...but not
limited to" does not remove the legal problem. He further
noted that by establishing a listing, that listing elevates
those activities to a greater level of validity and that by
having a listing, it invites more potential litigation than
it deters.
Number 432
REP. HUDSON asked the committee to address the amendment as
written including the requests by Nancy Lethcoe to add
"llama treks and dog sledding."
REP. GREEN commented that the amendment was getting into
specifics and when doing that it creates exclusion. He
suggested the committee leave the listing out.
REP. KOTT agreed with Rep. Green's comments.
MS. COWART asked if those participating in unsupervised
activities would be included in the bill.
CHAIR PORTER said they would be included.
MS. COWART agreed that exclusion is better because of the
fact that there are a growing number of new businesses with
varying kinds of activities that may not be included in the
list and thereby potentially forcing them to pay higher
insurance rates because they would not be included in this
legislation.
REP. PHILLIPS reiterated that the bill states "...includes
but not limited to."
Number 504
CHAIR PORTER said he felt there was enough on record
describing the kinds of activities the bill addresses. He
further suggested the committee not adopt Amendment 4.
Number 510
CHAIR PORTER asked if there was further discussion. Hearing
none, he asked if there were objections.
Number 520
REP. GREEN maintained his objection. A roll call vote was
taken and Amendment 4 failed.
Number 526
CHAIR PORTER asked if Rep. Hudson had any further comments
on HB 300.
Number 528
REP. HUDSON said he was satisfied with the work the
committee had done with HB 300.
Number 537
REP. JAMES motioned to move CSHB 300(JUD) with individual
recommendations and zero fiscal note. Without objection, it
was so moved.
Number 565
CHAIR PORTER announced that the committee would take up the
continuation of HB 292 on Friday; and on Saturday, March 12,
the committee would continue with the Friday schedule.
CHAIR PORTER adjourned the meeting at 3:40 p.m.
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