Legislature(1999 - 2000)

04/19/1999 01:15 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                                                                                
                                                                                                                                
HB 146 - LIABILITY FOR COMMERCIAL REC ACTIVITIES                                                                                
                                                                                                                                
CHAIRMAN KOTT announced the next order of business is HB 146, "An                                                               
Act relating to civil liability for commercial recreational                                                                     
activities; and providing for an effective date."                                                                               
                                                                                                                                
CHAIRMAN KOTT indicated that CSHB 146(L&C) [1-LS0701\D] is before                                                               
the committee and called on Ms. Kelly Sullivan to present the                                                                   
sponsor statement.                                                                                                              
                                                                                                                                
Number 0618                                                                                                                     
                                                                                                                                
KELLY SULLIVAN, Legislative Secretary for Representative Pete Kott,                                                             
Alaska State Legislature, came before the committee and presented                                                               
the sponsor statement.  In Alaska, a lot of recreational activities                                                             
are offered for tourists as well as locals.  She cited sport                                                                    
fishing, hunting, and hiking as examples.  The bill establishes the                                                             
responsibilities of the commercial recreational businesses, as well                                                             
as the responsibilities of those who choose to participate in such                                                              
activities.  The bill addresses the specific guidelines that                                                                    
operators and participants need to follow to minimize the                                                                       
possibilities of accidents, and should an accident occur it helps                                                               
to define who is to be held liable.  The bill helps to avoid the                                                                
unfair and unreasonable claims hurting the small operators in                                                                   
Alaska which are making it difficult for them to stay in business.                                                              
                                                                                                                                
Number 0720                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT stated this is the third time a bill like this has                                                                
tried to make it through the legislature.  A similar bill has                                                                   
passed the House before, but met its fate in the Senate Judiciary                                                               
Standing Committee.  He noted that this bill has been worked over.                                                              
It clearly defines responsibilities for both the operators and                                                                  
those who seek to participate in various commercial recreational                                                                
activities.                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT opened the meeting up to public testimony.                                                                        
                                                                                                                                
Number 0760                                                                                                                     
                                                                                                                                
MIKE WINDRED, Vice President, Marketing and Sales, Alaska Travel                                                                
Adventures, came before the committee to testify in support of HB
146.  This bill has come up three different times in recent years                                                               
because of the support from the recreational providers.  At                                                                     
present, there is industry-wide support.  He cited the Alaska                                                                   
Visitors Association and the Alaska Wilderness Recreation and                                                                   
Tourism Association as examples of organizations that support this                                                              
bill, which totals 95 percent of the recreational providers.  There                                                             
is very good backing behind the bill, and it is well written.                                                                   
                                                                                                                                
MR. WINDRED further stated that the basic premise is for the                                                                    
participants to assume some inherent risks and for the operators to                                                             
perform a better standard that is not required today.  In other                                                                 
words, an operator would have to explain to the participants the                                                                
inherent risks for a particular activity.  In addition, the                                                                     
operator would also need to train its employees in CPR                                                                          
[cardiopulmonary resuscitation] and first aid, use maintained                                                                   
equipment only, and act in a reasonably safe and competent manner.                                                              
This has been decided in litigation, but setting it forth in                                                                    
legislation makes it more defined and simple.  He believes the bill                                                             
would help his company and many other businesses like it by                                                                     
reducing nuisance suits that are presently settled out of court.                                                                
Alaska Travel Adventures has a fairly large deductible that seems                                                               
to rise as there are more and more small suits.  He explained a                                                                 
small suit is typically a customer who trips or falls out of a raft                                                             
or does something that could have been completely caused by their                                                               
own actions and not by fault of the operator.  An attorney will                                                                 
typically determine the deductible, which usually ends up being the                                                             
amount that the case is settled for.  This bill would definitely                                                                
put money back into his pocket for those types of "frivolous"                                                                   
lawsuits.  It would also ultimately reduce the insurance rates.                                                                 
                                                                                                                                
MR. WINDRED further stated, in response to the position paper from                                                              
the Alaska Action Trust [dated April 12, 1999], it doesn't surprise                                                             
him that they have come out against this legislation because it                                                                 
would take money out of trial lawyers' pockets.  It would not                                                                   
inhibit litigation if a consumer wants to sue.  The large cases                                                                 
would go to court.  In further response, the purpose of the bill is                                                             
covered in statute, but not enough.  It would help fight the                                                                    
nuisance claims before going to litigation thereby reducing claims.                                                             
In further response, this legislation would not be contradictory to                                                             
ski areas already in statute.  In further response, several small                                                               
businesses have been closed because of these claims.  He cited a                                                                
small rafting operation in the North and Southeast that have been                                                               
closed because the profits  were lower than the risks - the                                                                     
deductible.  In further response, no operator would market                                                                      
contributory negligence.  It wouldn't be a stigma for Alaska.  It                                                               
hasn't stopped anybody from traveling to Mexico or Europe where a                                                               
person wouldn't even think of entering into a lawsuit if that                                                                   
person was hurt there.  In further response, the responsibilities                                                               
of participants need to be in the bill to make it strong.  In                                                                   
further response, if an operated used faulty equipment or failed to                                                             
explain the inherent risks, that operator would be apt to lose in                                                               
a litigation at that point.                                                                                                     
                                                                                                                                
Number 1203                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Windred whether this would be any                                                                
kind of hardship for an operator.                                                                                               
                                                                                                                                
MR. WINDRED replied he doesn't think so.  If anything, it would be                                                              
good for the industry.  It would hold it to a higher standard,                                                                  
which could be used to make tourists feel safer.                                                                                
                                                                                                                                
Number 1241                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT stated the ski liability statute sets the                                                                  
consequences for both operators and participants.  This bill                                                                    
doesn't say what would happen if an operator doesn't "do it."  In                                                               
comparison to the ski statute, a ski operator or other person who                                                               
violates a requirement of the chapter is negligent and civilly                                                                  
liable to the extend a violation causes injury to a person or                                                                   
damage to property.  He asked Mr. Windred whether he has any                                                                    
objection to including that language.                                                                                           
                                                                                                                                
MR. WINDRED replied he is not familiar with the ski area statute,                                                               
other than it is specific to an activity.  The idea is to bring all                                                             
the different types of commercial recreational activities under one                                                             
bill.                                                                                                                           
                                                                                                                                
Number 1349                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said it is a legitimate concern.  The language                                                             
in the bill is more broad.  The responsibilities of operators of                                                                
commercial recreational activities are broad as well.  He asked Mr.                                                             
Windred whether there can be duties and consequences for both                                                                   
parties.                                                                                                                        
                                                                                                                                
MR. WINDRED replied, as an operator, he doesn't see why not.                                                                    
                                                                                                                                
Number 1431                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Windred what his company has                                                                 
paid on average for nuisance suits.                                                                                             
                                                                                                                                
MR. WINDRED replied Alaska Outdoor Adventures sees between $10,000                                                              
and $25,000 a year in nuisance suits.  That can be from either one                                                              
case or several small cases.  He cited the suits are from                                                                       
stumbling, falling off a chair, or something that an operator could                                                             
not have prevented.  In most of those cases, his company ends up                                                                
paying the bills.  He doesn't have a problem with that; he has a                                                                
problem with the "pain and suffering" suits.                                                                                    
                                                                                                                                
Number 1544                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Windred whether the majority of                                                              
the frivolous suits are settled prior to litigation within the                                                                  
courts.                                                                                                                         
                                                                                                                                
MR. WINDRED replied correct.                                                                                                    
                                                                                                                                
Number 1564                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Windred whether he actually has                                                               
had somebody sue his company for stumbling over a rock.                                                                         
                                                                                                                                
MR. WINDRED replied yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Windred what happened with the                                                                
case.                                                                                                                           
                                                                                                                                
MR. WINDRED replied the process is either the attorney or client                                                                
will contact his company directly and ask for the insurance                                                                     
company.  He usually responds to them directly.  At the point the                                                               
dollar figure is determined, his company either decides to turn it                                                              
over to the insurance company or decides to fight it.                                                                           
                                                                                                                                
Number 1608                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Windred whether his company                                                                   
settled that case or just moved to dismiss it.                                                                                  
                                                                                                                                
MR. WINDRED replied in most of those types of cases his company                                                                 
ends up paying for the hospital fees, transportation fees and                                                                   
damages to any equipment, such as a camera.  The case is usually                                                                
settled for a couple hundred dollars or so more, which is well                                                                  
worth it compared to going to litigation.  Nevertheless, it is                                                                  
generous considering that they stumbled over their own feet.                                                                    
                                                                                                                                
Number 1680                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked whether anybody knows who is the                                                                  
Alaska Action Trust.                                                                                                            
                                                                                                                                
REPRESENTATIVE MURKOWSKI replied Jan Bouch is the executive                                                                     
director of the Academy of Trial Lawyers Association.  Her guess is                                                             
that Alaska Action Trust is a lobbying arm of that association.                                                                 
                                                                                                                                
Number 1780                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said he is concerned about who is defining                                                              
the "inherent risk of commercial recreational activity."  In other                                                              
words, how would an operator explain to a participant the inherent                                                              
risks of a particular activity?  Every activity has a different                                                                 
type of risk.                                                                                                                   
                                                                                                                                
Number 1798                                                                                                                     
                                                                                                                                
MR. WINDRED replied his staff is trained in the safety requirements                                                             
for each activity.  They are different for each activity, but it                                                                
falls upon an operator to determine what are the standard inherent                                                              
risks.  That is pretty standard for the industry as it sits now.                                                                
                                                                                                                                
Number 1869                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said if a person is going bungee jumping                                                                
that person should probably sign a release.  He asked Mr. Windred                                                               
whether that is the direction the bill is going.                                                                                
                                                                                                                                
MR. WINDRED replied if an operator doesn't have a signed release                                                                
for bungee jumping that operator is looking for trouble.  There are                                                             
some areas where signed releases work well.  There are some areas                                                               
where requiring a signed release does not work well.  He cited his                                                              
salmon bake where several hundred people attend a day and Binkley's                                                             
river tour in Fairbanks as examples.  The tour in Fairbanks still                                                               
has to follow coast guard protocol in terms of orienting                                                                        
passengers to the safety aids.                                                                                                  
                                                                                                                                
Number 1949                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG noted that the bill is restricted to                                                                    
commercial outdoor activities when there are two new ice rinks                                                                  
being developed in Anchorage that probably will have some sort of                                                               
outdoor rink adjacent to them.  He is concerned about the rink                                                                  
rats.                                                                                                                           
                                                                                                                                
Number 2004                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Windred whether he would include                                                              
his salmon bake in the definition of "recreational activity."                                                                   
                                                                                                                                
MR. WINDRED replied he would include it because it is sold as a                                                                 
tour; it is not sold as a restaurant.                                                                                           
                                                                                                                                
Number 2041                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES stated she is pleased to see this type of                                                                  
legislation.  In her lifetime, she can remember when there wasn't                                                               
insurance, there weren't so many trial lawyers, and when a person                                                               
fell down and hurt himself it was his own fault.  She is not saying                                                             
that, if somebody gets hurt at somebody else's expense, that person                                                             
should get off free.  She doesn't care if other legislation comes                                                               
around for each type of commercial activity because the litigious                                                               
side of this issue is chilling for people willing to invest money                                                               
for recreational activities, even when it creates jobs because the                                                              
inherent liability is so overwhelming.                                                                                          
                                                                                                                                
Number 2248                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT stated that the inherent risk in downhill skiing is                                                               
different than other outdoor recreational activities such as bird                                                               
watching.  He mentioned the types of risks associated with downhill                                                             
skiing such as a broken bone.                                                                                                   
                                                                                                                                
Number 2340                                                                                                                     
                                                                                                                                
BOB ENGELBRECHT, Owner, North Star Trekking, came before the                                                                    
committee to testify in favor of HB 146.  He is also on the board                                                               
of directors for the Alaska Visitors Association.  He has been in                                                               
the tourism industry in Alaska for about 16 years, primarily in the                                                             
adventure side of it.  Tourism in Alaska has been evolving and                                                                  
changing over the past few years.  It's not just tourists arriving                                                              
on cruise ships, but more and more people are wanting to experience                                                             
Alaska in the back country.  In most cases, they don't have an                                                                  
appreciation of what they are getting into.                                                                                     
                                                                                                                                
TAPE 99-35, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MR. ENGELBRECHT continued.  He runs a tour of taking people on the                                                              
Mendenhall Glacier.  The inherent risk of that tour is walking on                                                               
the ice.  There is no way around it.  His insurance broker wanted                                                               
to put AstroTurf on the glacier where the people walk around.  The                                                              
point of the bill is to not absolve operators of negligence or to                                                               
put the participants in an activity in an unrealistic position so                                                               
that they aren't covered by insurance.  The point of the bill is to                                                             
make sure that the participants are aware of what they are getting                                                              
into, and to make sure the operators are using good equipment, etc.                                                             
And, if there is a health or physical ability issue, to find out                                                                
about it before hand and to decide to opt out of a particular                                                                   
physical activity.  At least people would go into an activity with                                                              
their eyes open and knowing what they are doing.                                                                                
                                                                                                                                
MR. ENGELBRECHT further stated, in reference to the ski area                                                                    
statute, it is a very specific activity in a confined area.  This                                                               
bill talks about a variety of activities in large areas where all                                                               
different kinds of conditions exist.  He has a permit for the                                                                   
Juneau Ice Field which is 1,500 square miles.  He runs into all                                                                 
kinds of different conditions.  While the idea is similar in terms                                                              
of taking on an inherent risk, the other recreational activities                                                                
are more diverse and the infrastructure is not in place, just the                                                               
natural environment.                                                                                                            
                                                                                                                                
MR. ENGELBRECHT further stated that he informs clients in a number                                                              
of ways about the risks.  They are given a briefing to make sure                                                                
that they understand what they are getting into.  A surprising                                                                  
number of people do not have a clue about what they are getting                                                                 
into.  Most say, "Well, it's not what I thought I was going , but                                                               
I want  it anyway."  They make that choice to go ahead.  Once on                                                                
the glacier, the guides will give a thorough briefing on the                                                                    
equipment, the area, and the inherent risks involved, and what they                                                             
need  to cooperate based on the conditions.                                                                                     
                                                                                                                                
Number 0379                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Engelbrecht to comment on the concern of a                                                              
lack of consequence of an operator that does not provide the                                                                    
requirements of the bill.                                                                                                       
                                                                                                                                
MR. ENGELBRECHT replied for the most part this bill is aimed at the                                                             
more frivolous suits or claims.  The bill says the inherent risks                                                               
are those that are apparent to an ordinarily prudent person.  There                                                             
is nothing in the bill that would prevent litigation or an operator                                                             
being taken to court.  If an operator has done an inadequate job,                                                               
it would come out in court.                                                                                                     
                                                                                                                                
Number 0482                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to page 2, line 2, of the bill -                                                              
"Contributory negligence" - and commented on getting hit in the                                                                 
head with a paddle while white water rafting causing a concussion.                                                              
The other inherent risks had been discussed, such as falling out of                                                             
the raft, hypothermia, etc.  She is concerned because all of the                                                                
inherent risks cannot be defined.  She wondered how the bill can be                                                             
as broad by accepting the inherent risks of all these types of                                                                  
commercial outdoor activities.                                                                                                  
                                                                                                                                
Number 0621                                                                                                                     
                                                                                                                                
MR. ENGELBRECHT stated, not being an attorney, he doesn't have a                                                                
great response.  The general point is, it is difficult to define                                                                
all the inherent risks.  If a person is hiking and a limb falls                                                                 
from a tree and hits that person, was that an inherent risk the                                                                 
person was made aware of?  It was an act of God.  Was there                                                                     
anything that the operator could have done?  Was the operator                                                                   
responsible?  It's a gray area, and if it's a significant issue it                                                              
probably would go to court.                                                                                                     
                                                                                                                                
Number 0714                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Engelbrecht how many nuisance                                                                
claims does his business average annually.                                                                                      
                                                                                                                                
MR. ENGELBRECHT replied he just started his company last year.  He                                                              
has one season under his belt.  He had one minor injury from a                                                                  
person tripping over his crampons and fell.  Prior to starting his                                                              
company, he worked for 18 years with a larger company that carried                                                              
between 30,000 to 40,000 people onto the glacier.  Out of that                                                                  
number, there might have been a dozen slips, falls, and bruises.                                                                
The most serious injury would have been a broken wrist from                                                                     
tripping and breaking a fall.  He can only think of one that went                                                               
to litigation.  The rest were settled by the insurance companies.                                                               
It's easier to give away a deductible than to spend tens of                                                                     
thousands of dollars in litigation.  He knows of one case that                                                                  
settled for a couple hundred thousand dollars for tripping over his                                                             
own two feet.  These claims come back to the operator.  Very few go                                                             
to trial, but a lot of them happen and a lot of them get settled by                                                             
insurance companies every year.                                                                                                 
                                                                                                                                
Number 0848                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Engelbrecht whether it's true that there                                                                
are industry standards that are accepted and considered inherent                                                                
risks, and anything beyond that is in the gray area.                                                                            
                                                                                                                                
MR. ENGELBRECHT replied, for the most part, it is fairly obvious if                                                             
somebody is not following prudent industry standards for the type                                                               
of activity going on.  He doesn't see this bill as having any                                                                   
effect on the other things that could happen such as negligence.                                                                
That's a whole different realm.                                                                                                 
                                                                                                                                
Number 0956                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said Mr. Engelbrecht's company is not part                                                              
of the problem; it's willing to live up to the standards.  She                                                                  
asked Mr. Engelbrecht whether he has a problem with an operator                                                                 
facing regular court liability for not living up to the standards                                                               
and not being able to claim the shield that the bill provides.                                                                  
                                                                                                                                
MR. ENGELBRECHT replied, not being an attorney, he's not sure how                                                               
he can technically answer the question.  Practically, if somebody                                                               
gets hurt on a trail and bleeds to death and the guide didn't have                                                              
basic first aid training, it's obvious that there is some                                                                       
negligence.  At that point, the operator is not shielded by this                                                                
bill.  The bill actually provides an extra tool for somebody who                                                                
has been hurt if an operator doesn't follow good prudent standards.                                                             
But, if an operator is doing everything reasonable that it can, and                                                             
the experience is inherently in a natural environment that hasn't                                                               
been sanitized and safety-proofed...He continued by stating that he                                                             
could put a guard railing and AstroTurf on the glacier and no one                                                               
would slip and fall, but it would be a pretty lousy experience.                                                                 
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Engelbrecht for a brochure.                                                                      
                                                                                                                                
MR. ENGELBRECHT gave Representative Croft a brochure.  He noted                                                                 
that in the brochure there is a list of equipment given for safety.                                                             
He cited ice axes, crampons, and safety harnesses as examples.                                                                  
                                                                                                                                
Number 1136                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT closed the meeting to public testimony.                                                                           
                                                                                                                                
Number 1146                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT stated it is appropriate in ski areas and in                                                               
general to define the inherent risks of the participants and the                                                                
fundamental responsibilities of the operators.  The bill says                                                                   
clearly, that if a participant doesn't meet his or her                                                                          
responsibilities, it "is" a contributory negligence.  He has an                                                                 
amendment using the exact language from the ski area statute that                                                               
puts everything on an even keel for both the operator and                                                                       
participant.                                                                                                                    
                                                                                                                                
Number 1227                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to adopt Amendment 1.  It reads                                                              
as follows:                                                                                                                     
                                                                                                                                
     Page 3, line 9                                                                                                             
                                                                                                                                
          Insert                                                                                                                
                                                                                                                                
          Sec. 05.50.060.  "A person who operates a business that                                                               
          offers a commercial recreational activity and violates a                                                              
          requirement of this chapter is negligent and civilly                                                                  
          liable to the extent the violation causes injury to a                                                                 
          person or damage to property."                                                                                        
                                                                                                                                
CHAIRMAN KOTT objected.  He called on Mr. Mike Ford, drafter of the                                                             
bill, and asked him whether there are others in statute that are                                                                
narrowly constructed like the ski statute.                                                                                      
                                                                                                                                
Number 1265                                                                                                                     
                                                                                                                                
MIKE FORD, Attorney, Legislative Legal Counsel, Legislative Legal                                                               
and Research Services, Legislative Affairs Agency, came before the                                                              
committee to answer questions.  The ski area statute is the only                                                                
one of its kind.  There are other statutes that deal with                                                                       
recreational activities, but they mostly refer to licensing and                                                                 
safety requirements.  He cited boating as an example.  The ski area                                                             
statute deals with a very specific activity, while this bill deals                                                              
with commercial recreational activities that could include a number                                                             
of different things.                                                                                                            
                                                                                                                                
Number 1318                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said he is concerned about aviation                                                                     
activities.  He asked Mr. Ford whether the bill includes the use of                                                             
aircrafts.                                                                                                                      
                                                                                                                                
MR. FORD replied it would cover an aviation club that took people                                                               
up as a business.  It meets the definitions of "commercial                                                                      
recreational activity" and "recreational activity" in the bill.                                                                 
                                                                                                                                
Number 1360                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said he finds that troubling.                                                                           
                                                                                                                                
REPRESENTATIVE CROFT asked Representative Rokeberg whether he wants                                                             
to exempt them.                                                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG replied, "I think so."                                                                                  
                                                                                                                                
REPRESENTATIVE CROFT suggested that Representative Rokeberg write                                                               
up some language.                                                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG further stated he is also concerned about                                                               
the outdoor rink rats.                                                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI stated, "Don't forget those rock climbing                                                              
walls."  Most of them are indoor.                                                                                               
                                                                                                                                
Number 1388                                                                                                                     
                                                                                                                                
MR. FORD pointed out there was legislation that dealt with                                                                      
skateboarding rinks and municipalities that operate them last year                                                              
as an example of another activity that was thought to need                                                                      
protection.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Ford whether the bill passed.                                                                 
                                                                                                                                
MR. FORD replied, he believes, it passed the House.                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Ford whether this bill would deal                                                             
with skateboarding as well.                                                                                                     
                                                                                                                                
MR. FORD replied only if it's an outdoor activity.                                                                              
                                                                                                                                
CHAIRMAN KOTT noted only if it's a commercial outdoor activity.                                                                 
                                                                                                                                
MR. FORD noted that the bill last year targeted indoor facilities.                                                              
But, an outdoor facility might fit the definitions, if it's                                                                     
commercial.                                                                                                                     
                                                                                                                                
Number 1446                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Ford whether he has seen                                                                     
Representative Croft's amendment.                                                                                               
                                                                                                                                
MR. FORD replied no.                                                                                                            
                                                                                                                                
Number 1470                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT called for an at-ease at 3:15 p.m. and called the                                                                 
meeting back to order at 3:20 p.m.                                                                                              
                                                                                                                                
Number 1476                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT withdrew his objection.  There being no further                                                                   
objection, Amendment 1 was so adopted.                                                                                          
                                                                                                                                
Number 1487                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said, in regards to aviation activities, an                                                                
argument could go either way.  There should be a standard care for                                                              
persons jumping out of an aircraft.  There could be advantages to                                                               
the operators being in, but all of the implications haven't been                                                                
thought through since it wasn't foremost on everybody's mind when                                                               
drafting the bill.                                                                                                              
                                                                                                                                
Number 1549                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Ford whether flight seeing is part of the                                                               
bill.                                                                                                                           
                                                                                                                                
MR. FORD replied he doesn't see a reason to exclude flight seeing                                                               
from the application of the bill.  He doesn't see how it could be                                                               
argued that they are not included because everyone understands that                                                             
people fly for recreation.  He can go to the Juneau International                                                               
Airport where there is a flight service to learn how to fly which                                                               
costs money.  It certainly is a commercial and recreational                                                                     
activity, and somebody who suffers harm would be included.                                                                      
                                                                                                                                
Number 1591                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Ford whether there is a difference between                                                              
the inherent risks and negligence for aviation activities.                                                                      
                                                                                                                                
MR. FORD replied the inherent risks change for each activity.                                                                   
Certainly, getting into an airplane is different than getting into                                                              
a raft or going to a salmon bake.                                                                                               
                                                                                                                                
Number 1621                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT stated the only other issue is the definition of the                                                              
term "recreational activity."  He asked Mr. Engelbrecht, as a                                                                   
representative of the industry, whether there is any merit in                                                                   
including indoor activities.  He cited indoor ice skating rinks and                                                             
climbing walls as examples.                                                                                                     
                                                                                                                                
Number 1655                                                                                                                     
                                                                                                                                
MR. ENGELBRECHT replied the climbing wall is the immediate thing                                                                
that comes to his mind.  He noted that the environment is                                                                       
controlled more for indoor activities compared to the unimproved                                                                
outdoor type of activities.                                                                                                     
                                                                                                                                
Number 1690                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said he was thinking along those lines as well.  The                                                              
definition provides for a hobby which could be a whole host of                                                                  
things such as painting.  It's a whole new "ball of wax" that he's                                                              
not willing to get into.                                                                                                        
                                                                                                                                
Number 1729                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to move CSHB 146(L&C), as                                                                    
amended, from the committee with individual recommendations and the                                                             
attached fiscal note(s).  There being no objection, CSHB 146(JUD)                                                               
was so moved from the House Judiciary Standing Committee.                                                                       
                                                                                                                                
CHAIRMAN KOTT opened the meeting to public testimony again to                                                                   
accommodate a witness he overlooked.                                                                                            
                                                                                                                                
Number 1822                                                                                                                     
                                                                                                                                
RUSSELL L. WINNER, Alaska Academy of Trial Lawyers, testified via                                                               
teleconference from Anchorage.  The academy is the lobbying arm of                                                              
the Alaska Action Trust.  He wrote the position paper for the                                                                   
trust.  In his twenty years of practice, he hasn't had one case                                                                 
that dealt with this issue.  It's an area that is not heavily                                                                   
litigated.  The trial lawyers are not interested in this bill to                                                                
line their pockets, but instead to ensure that people who are                                                                   
insurable are (indisc.).  And, if they are, then they should                                                                    
receive a fair compensation.  The bill raises more legal questions                                                              
than answers.  Who defines inherent risk?  He replied, the                                                                      
operators or the courts.  How is it defined?  If it's defined                                                                   
specifically, what if an injury is different?  If it's defined in                                                               
general terms, is it feasible and valid?  If the inherent risk of                                                               
white water rafting is drowning, then just about anybody who falls                                                              
in the water and drowns without cause would be subject to (indisc.)                                                             
inherent risk.  He's not sure that is the intent, but a general                                                                 
definition might fall into that category.  The same is true for air                                                             
taxis.  An inherent risk of flying in an air taxi is crashing.  Is                                                              
the net effect of the legislation to exempt air taxis from                                                                      
liability when a pilot flies into a mountain or is negligent for                                                                
not avoiding bad weather, for example.  The bill says that                                                                      
participating in a commercial recreational activity a person is                                                                 
contributorily negligent.  He wonders whether that is a wise way to                                                             
promote outdoor recreational activities for the state.  He also                                                                 
wonders whether any other state has enacted a bill like this.                                                                   
Information like this can be widely spread to the public.  It might                                                             
be counterproductive to the industry.  If a bill was placed before                                                              
the committee exempting law suits in other areas, the testimony                                                                 
would be similar.  He cited car rental agencies as an example.  The                                                             
common law in Alaska has been developed by the courts and juries                                                                
articulating liability and responsibilities.  It has worked well                                                                
and if the legislature starts to enact this type of reform there                                                                
will be a piecemeal and confusing process.  It is better to trust                                                               
juries with these matters based on general principles of the common                                                             
law than to try to articulate the specific rules for each industry                                                              
in the state.                                                                                                                   
                                                                                                                                
Number 2088                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Winner whether, even with the                                                                    
amendment, he thinks that the bill should not pass.                                                                             
                                                                                                                                
MR. WINNER replied he hasn't seen the amendment, but from what he                                                               
gathered listening to the conversation it is an improvement.  He                                                                
still thinks that this is (indisc.) legislation.  It opens the door                                                             
to other groups to come forward and ask for immunity.  He                                                                       
reiterated that the common law system and juries are better able to                                                             
decide on a case-by-case basis.  This legislation asks whether or                                                               
not to stay with a common law system or to move towards a common                                                                
(indisc.) of the laws of tort.  He thinks that the state should                                                                 
stay on the common law side of that line.                                                                                       

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