Legislature(2009 - 2010)BUTROVICH 205
04/08/2010 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB152 | |
| HB366 | |
| HJR47 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 152 | TELECONFERENCED | |
| + | HB 366 | TELECONFERENCED | |
| + | HJR 47 | TELECONFERENCED | |
HB 366-MOTOR CARRIER INDEMNIFICATION AGREEMENTS
SENATOR KOOKESH announced consideration of HB 366. [CSHB
366(JUD) was before the committee.]
1:30:54 PM
JEANNE OSTNES, Staff to Representative Craig Johnson, said HB
366 places a provision in statute to clarify that both shippers
and motor carriers are responsible for their own negligence or
omissions.
1:32:03 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), stated support for HB 366. He related that one priority
of ATA this year is to achieve tort reform with regard to
indemnification agreements in motor carrier transportation
contracts. Motor carriers must comply with the federal motor
carrier safety regulations when transporting goods as well as
common law or statutory duties or responsibilities. Likewise,
shippers and other parties have legal duties and
responsibilities to fulfill when providing goods for
transportation. However, it's becoming more common for shippers
to include language in motor carrier contracts requiring the
motor carrier to indemnify and hold harmless the shipper even
when the shipper fails to meet its legal duties and
responsibilities.
The CS for HB 366 provides statutory language that voids
contractual provisions in a motor carrier transportation
contract that indemnifies either the shipper or the motor
carrier for their own negligent or intentional acts or omissions
that lead to claims. This levels the playing field and makes
everyone responsible for their own actions without establishing
new duties or responsibilities. The bill doesn't limit the
freedom to contract and each party can control its employees or
agents to improve unsafe practices. Industry groups that support
the legislation include BP, ConocoPhillips, Association of
General Contractors, Alaska Miners Association, Alaska State
Chamber of Commerce, and the Ocean Carriers Equipment Management
Association. He noted that twelve states have similar laws and
eight states have legislation pending.
1:35:28 PM
SENATOR PASKVAN stated that HB 366 advances good social policy
and will promote safety; each person should be responsible for
his or her own conduct. To allow private parties to say that
someone else will pay for their omissions or negligence is a
troubling concept, he said.
SENATOR MENARD said she imagines he has heard the input from the
Alaska Insurance Company about shifting responsibility.
MR. THOMPSON said he isn't aware of that.
MS. OSTNES said Linda Hall, the division director for insurance,
looked at the bill and had no problem with it. Ms. Ostnes added
that the intent of the legislation is not to void a whole
contract, just the portion dealing with omissions or neglect.
1:37:35 PM
DEAN MCKENZIE, President, Alaska West Express (AWE), stated
support for HB 366. He noted that he submitted a letter to the
sponsor citing an unresolved issue with a company that does
drilling work in Alaska, nationally, and internationally.
Currently AWE is working with two more companies that have
similarly lopsided language in their master service agreements,
which takes a lot of time. Smaller contractors or carriers may
not have the ability to devote this much time, he said. As
others have stated, we should all be responsible for our own
actions; we should not be forced to take responsibility for the
actions of others over whom we have no control, he said.
1:39:00 PM
JAMES C. DOYLE, Vice President, Weaver Brothers Trucking, stated
support for HB 366. He cited an example of a situation that this
legislation would prevent. Four or five days after a trucking
company delivered fuel to a gas station, a customer was burned
while filling a portable gas tank because of an arc. The
trucking company had to pay the claim even though it had nothing
to do with the actual incident because it had signed an
agreement indemnifying the gas station from any type of loss. HB
366 would correct this type of wrong, he said.
1:40:39 PM
SENATOR KOOKESH closed public testimony and asked the will of
the committee.
SENATOR PASKVAN moved to report CS for HB 366 from committee
with individual recommendations and attached fiscal note(s).
There being no objection, CSHB 366(JUD) moved from the Senate
Transportation Standing Committee.
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