Legislature(1993 - 1994)
03/31/1994 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 31, 1994
1:40 p.m.
TAPE HFC 94-102, Side 2, #000 - end.
TAPE HFC 94-103, Side 1, #000 - end.
TAPE HFC 94-103, Side 2, #000 - end.
TAPE HFC 94-104, Side 1, #000 - 061.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:40 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Representative Brian Porter; Representative Jeannette James;
Paul Fuhs, Acting Commissioner, Department of Commerce and
Economic Development; Bob Cowan, Attorney, Exxon Plaintiffs,
Kenai; Thomas Beltz, Wassila; Roger Holmes, Attorney, Bliss
and Holmes, Anchorage; Keith Wasserman, Delta Junction;
Brent Lafave, MatSu; Patti Rizer, Anchorage; Harlan Knudson,
President, Hospital Association; Kristi Wasserman, Delta
Junction; Richard Cattanach, United Construction Co,
Anchorage; Les Gara, Attorney, Anchorage; Sheldon Winters,
State Farm; Christian Berrigan, Anchorage; Doug Millard,
MatSu; Bruce Rizzer, Anchorage; Suzanne Perry, Department of
Health and Social Services; Bernard Goodno, Delta Junction;
Leigh Dennison, Delta Junction; Derring Jones, MatSu; Bill
Jones, Barrow; David Williams, Fairbanks; Don Chase, Valdez;
Clement Boucher, Valdez; Roger Rothschild, Bethel; Lauree
Hugonin, Bethel; Jeff Feldman, Anchorage; Court Owen,
Anchorage; Rob Wiseman, Kenai; Larry Petty, Fairbanks;
Harris Stuermer, Barrow; Don Bain, Anchorage; Eldon Glein,
Cordova; Roy White, MatSu; Bruce McLaughlin, Tok; Morris
Thompson, Anchorage; Arthur Couch, Kenai; Kevin Morford, Co-
Chair, Green Party; Carol McConnell, Seward; Mike Scheider,
Anchorage; Dennis Packer, Northslope Borough Department of
Public Safety, Barrow; Ray Holmes, Valdez; Neil Cameron,
Anchorage; Darrel Nelson, Anchorage; Bonnie Nelson,
Anchorage; Ray Brown, Attorney, Anchorage; C.W. Floyd,
Anchorage; Ronald Fullerton, Anchorage.
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SUMMARY INFORMATION
HB 292 "An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing
for an effective date."
HB 292 was assigned to a subcommittee consisting
of Representative Parnell as Chair and
Representatives Hanley, MacLean, Navarre and
Grussendorf.
HB 351 "An Act relating to the issuance of permits for
the carrying of a concealed weapon."
HB 351 was HELD in Committee for further
discussion.
HOUSE BILL NO. 292
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
Co-Chair Larson announced that, following public testimony,
HB CSHB 292 (JUD) would be placed in a subcommittee
consisting of Representative Parnell as Chair and
Representatives Hanley, MacLean, Navarre and Grussendorf.
REPRESENTATIVE BRIAN PORTER testified in support of CSHB 292
(JUD). He asserted that CSHB 292 (JUD) should result in a
reduction of insurance liability rates and a expansion of
medical services across the state. He noted that there are
opposing legal opinions regarding the constitutionality of
statute of repose provisions in CSHB 292 (JUD). He observed
that CSHB 292 (JUD) contains many components. He asserted
that only adoption of the entire package contained in CSHB
292 (JUD) will result in the desired reductions.
BOB COWAN, ATTORNEY, EXXON PLAINTIFFS testified via the
teleconference network from Anchorage, in opposition to CSHB
292 (JUD). He pointed out that the limit on punitive
damages would be advantageous to large corporations and
disadvantageous to fishing groups. He asserted that the
legislation is designed to help outside and foreign
corporations.
TOM BELTZ, WASILLA testified via the teleconference network
in opposition to CSHB 292 (JUD). He recounted his personal
experience with Workers' Compensation. He maintained that
the legislation will hurt the worker.
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ROGER HOLMES, ATTORNEY, BLISS AND HOLMES testified via the
teleconference network from Anchorage. He referred to the
proposed change in rule 82. He noted that rule 82 is being
restructured. He felt that the rule is being strengthened
and will discourage frivolous lawsuits and force individuals
to accept a reasonable offer.
Mr. Holmes addressed the provision to require periodic
payments in judgement of $100.0 thousand dollars. He noted
that there are concerns that additional litigation would
result from disputes regarding the provision for periodic
payments. He felt that the courts would set standards which
would prevent additional suits. In response to a question
by Representative Martin, Mr. Holmes discussed the awarding
of attorney fees.
KEITH WASSERMAN, DELTA JUNCTION testified via the
teleconference network in opposition to CSHB 292 (JUD). He
questioned if a cap would be placed on judgements. Mr.
Porter noted that an individual can receive economic,
punitive, or non-economic recovery. He observed that under
economic recovery all past and future lost wages without a
cap can be awarded. Under economic recovery all medical
expensives, past and future, can be awarded with no cap.
There is a $500.0 thousand dollars cap on non-economic
damages, such as pain and suffering. The cap for serious
physical impairment has been expanded to $750.0 thousand
dollars. Punitive damages could be awarded with a cap of
$200.0 thousand dollars or three times the amount of non
economic and economic damages whichever is greater.
BRENT LAFAVE, MATSU testified via the teleconference network
in opposition to HB CSHB 292 (JUD). He detailed his
personal injuries and experience with Workers' Compensation.
He emphasized that the individual worker is not able to
afford lawyers and doctors to testify on their behalf during
insurance disputes.
PATTI RIZER, ANCHORAGE testified via the teleconference
network opposition to CSHB 292 (JUD). She maintained that
the legislation favors big business and makes victims
responsible. She referred to litigation involving her son's
death at a ski resort.
HARLAN KNUDSON, PRESIDENT HOSPITAL ASSOCIATION testified in
support of tort reform. He maintained that individuals are
being denied the best quality medical care due to the costs
of health insurance. He asserted that inaction will result
in a hole in the cost of health care.
KRISTI WASSERMAN testified via the teleconference network.
In response to a question by Ms. Wasserman, Representative
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Porter noted that California has initiated similar tort
reform. He noted that in the fifteen years since California
tort reform laws were adopted, medical malpractice insurance
has risen by 85 percent in the state of California. The
rest of the nation experienced a 400 percent increase in
medical malpractice insurance.
RICHARD CATTANACH, UNITED CONSTRUCTION COMPANY, ANCHORAGE
testified via the teleconference network in support of CSHB
292 (JUD). He noted that there is no statute of repose in
Alaska. He explained that a contractor retains,
indefinitely, responsibility for any building they
construct. He asserted that only .50 cents on a dollar
spent in tort reform goes to the claimant. He maintained
that the legislation will get more money to the claimant
while lowering insurance costs.
LES GARA, ATTORNEY, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). He
referred to the six year statute of repose. He noted that
there is a two year statute of repose provision for doctors.
He explained that the statute of repose provisions would
prevent litigation if the individual does not find out about
the injury until 6 or 2 year after the action takes place.
He gave examples of cases of injury that would not be
compensated under the statute of repose. He noted that it
is possible for contamination from faulty storage of
hazardous waste to take place years after the tanks are
stored.
(Tape Change, HFC 94-103, Side 1)
SHELDON WINTERS, ATTORNEY, STATE FARM INSURANCE COMPANY
testified in support of CSHB 292 (JUD). He discussed
provisions dealing with prejudgment interest. He noted that
the legislation ties prejudgment interest to the federal
district reserve rate. There would be no prejudgment
interest on future damages. Any damage for future wage loss
would be reduced by the amount that would have been taken
out for federal or state income taxes. Representative
Porter explained that the intent is that the individual
receive what their net income would have been. No income
tax will be paid on the award.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
CHRISTIAN BERRIGAN, ANCHORAGE testified via the
teleconference network in support of HB 351. He urged the
Committee to take prompt action.
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DOUG MILLARD, MATSU testified via the teleconference network
in support of HB 351. He asserted that the legislation
would not increase the number of illegally held hand guns.
He noted that Washington state has initiated a similar law.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
BRUCE RIZER, ANCHORAGE testified via the teleconference
network in opposition to CSHB 292 (JUD). He maintained that
the function of tort law is to hold persons responsible for
their actions. He recounted his experience with litigation
resulting from the tragic death of his son. He asserted
that insurance companies use every maneuver to stymie
investigation and drive the cost of litigation up, while
denying any responsibility
PAUL FUHS, ACTING COMMISSIONER, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT noted that the lack of a statute of
repose is effecting the state's ability to promote value
added manufacturing in Alaska.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
SUZANNE PERRY, DIVISION OF ALCOHOLISM AND DRUG ABUSE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES expressed concerns
in regards to HB 351. She noted that the Department is
concerned with the provision requiring a medical or
professional individual to attest that the person requesting
the permit is not or has not been under the influence of
alcohol or other drugs. She noted that the patient's
confidentiality under treatment is federally regulated. She
favored the CSHB 351 (STA) version.
BERNARD GOODNO, DELTA JUNCTION testified via the
teleconference network in support of HB 351. He asserted
that the Constitution does not make the distinction between
a concealed or non-concealed weapon.
LEIGH DENNISON, DELTA JUNCTION testified via the
teleconference network in support of HB 351. He questioned
the provision for permitting concealed weapons.
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DERRING JONES, MATSU testified via the teleconference
network in support of HB 351.
BILL JONES, BARROW testified via the teleconference network
in support of HB 351. He asserted that citizens need to
protect themselves.
DAVID WILLIAMS, FAIRBANKS testified via the teleconference
network in support of HB 351. He maintained that the
Constitution protects the right to bare arms.
DON CHASE, VALDEZ testified via the teleconference network
in support of HB 351.
CLEMENT BOUCHER, GLENNALLEN testified via the teleconference
network in support of HB 351. He objected to language
allowing a municipality or established village to prohibit
the possession of a concealed handgun.
ROGER ROTHSCHILD, BETHEL testified via the teleconference
network in support of HB 351. He maintained that the
legislation would allow honest law abiding citizens to
protect themselves.
LAUREE HUGONIN, TUNDRA WOMEN'S COALITION, BETHEL testified
via the teleconference network in opposition to HB 351. She
suggested that homicide against women is most likely to be
at the hands of a spouse or acquaintance. She stressed that
men of influence and high public standing are involved in
domestic violence. She maintained that the legislation will
result in more violent actions.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
JEFF FELDMAN, ATTORNEY, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). He
asserted that CSHB 292 (JUD) is a "fundamental attack on the
system of justice in Alaska." He maintained that CSHB 292
(JUD) is special interest legislation that affects and
benefits wrongdoers, whose conduct injures or kills
Alaskans. He observed that insurers and outside
corporations will benefit from the legislation. He alleged
that the "court house doors will be locked before Alaskans
have reason to know they have been victimized." He gave
examples of how the six year statute of limitation could
affect victims.
Mr. Feldman referred to a letter by the Department of Law,
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March 8, 1994 (copy on file). He asserted that if victims
are not able to obtain compensation from wrongdoers, the
state will have the obligation through medicare and medicaid
requirements to financially supporting those Alaskans who
cannot obtain compensation.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
COURT OWEN, ANCHORAGE testified via the teleconference
network in support of HB 351.
ROB WISEMAN, KENAI testified via the teleconference network
in support of HB 351. He maintained that the failure to
adopt HB 351 will send citizens the message that the
legislature does not believe they should have the right to
carry a concealed hand gun.
WESLEY CASTEGNO testified via the teleconference network in
support of HB 351. He asserted that reclining oil revenues
will result in a decrease in law enforcement. He observed
that there has been an increase in gang activity.
(Tape Change, HFC 94-103, Side 2)
LARRY PETTY, FAIRBANKS testified via the teleconference
network in support of HB 351. He noted that he is
representing 35 persons who favor HB 351. He urged prompt
action.
HARRIS STUERMER, BARROW testified via the teleconference
network in support of HB 351. He asserted that the
legislation recognizes a citizen's right and responsibility
to provide for his or her personal safety. He maintained
that the legislation establishes a reasonable test to
character and competence with a hand gun.
DON BAIN, ANCHORAGE testified via the teleconference network
in support of HB 351. He observed that the legislation is
fee funded.
ELDON GLEIN, CORDOVA testified via the teleconference
network in support of HB 351.
KEN HENDRICKS, ANCHORAGE testified via the teleconference
network in support of HB 351.
ROY WHITE, MATSU testified via the teleconference network in
support of HB 351. He objected to language allowing a
municipality or established village to prohibit the
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possession of a concealed handgun.
BRUCE MACLAUGLIN, TOK testified via the teleconference
network in support of HB 351. He objected to requirements
for permits of concealed weapons.
MORRIS THOMPSON, ANCHORAGE testified via the teleconference
network in opposition to HB 351. He stressed that Village
Public Safety Officers and Child Protection Officers are
unarmed and may be involved in emotionally charged
situations where weapons are involved. He suggested that
villages should be allowed to opt in to the legislation, not
have to opt out.
ARTHUR COUCH, KENAI testified via the teleconference network
in support of HB 351. He maintained that since police
cannot be at the scene of a crime citizens should be able to
carry a concealed weapon for protection.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
KEVIN MORFORD, CO-CHAIR, GREEN PARTY testified via the
teleconference network in opposition to CSHB 292 (JUD). He
noted that the Green Party unanimously passed a resolution
opposing CSHB 292 (JUD). He maintained that the right to a
trial by jury is a constitutional right of great importance.
He observed that a civil jury trial is the only legal remedy
available as a manner of right to persons who have been
injured by the negligence of others. He asserted that the
legislation is the result of a lobbing effort on the part of
insurance companies and other special interest groups which
wish to reduce their potential liability to the victims of
negligence.
Mr. Morford suggested that the best way to lower the cost of
civil litigation is to fund consumer protection and enact
regulations to ensure that injuries do not happen.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
CAROL MCCONNELL, SEWARD testified via the teleconference
network in support of HB 351. She maintained that she is
not able to protect herself any other way than to carry a
concealed gun.
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KRISTI WASSERMAN, ANCHORAGE testified via the teleconference
network in support of HB 351. She noted that she could be a
victim at any time. She emphasized that she has a
constitutional right to protect herself.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
MIKE SCHEINDER, ANCHORAGE testified via the teleconference
network in opposition to CSHB 292 (JUD). He referred to
Kaiser versus Brian Electric 695 federal section 207. He
noted that faulty wiring caused the death of 160 people in a
restaurant. Under CSHB 292 (JUD) litigation resulting from
the deaths resulting from the faulty wiring would not have
been allowed due to the statute of repose. He observed that
there is no provision to assist consumers in any aspects of
their endeavors or makes access to justice easier. He
discussed the Canadian system.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
DENNIS PACKER, DIRECTOR, NORTHSLOPE BOROUGH DEPARTMENT OF
PUBLIC SAFETY, BARROW testified via the teleconference
network in opposition to HB 351. He maintained that present
law adequately address the possession or carrying of weapons
for hunting and protection in the home. He stressed that
the legislation will place a burden on law enforcement to
track records. He suggested the legislation will cause an
additional hazard to law enforcement officers. He
emphasized that the legislation does not guarantee the safe
or sensible use by citizens carrying concealed weapons. He
noted that the general public will not be trained in the use
of deadly force. He asserted that HB 351 will not reduce or
prevent crime. He urged that funding for the Department of
Law and the Department of Public Safety be increased to meet
law enforcement needs.
RAY HOLMES, VALDEZ testified via the teleconference network
in support of HB 351. He stressed that citizens should have
the right to protect themselves and their families.
KEITH WASSERMAN, ANCHORAGE testified via the teleconference
network to HB 351. He noted that gun legislation does not
stop crime. He opposed language allowing a municipality or
established village to prohibit the possession of a
concealed hand gun.
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NEIL CAMERON, ANCHORAGE testified via the teleconference
network in support of HB 351. He noted that the legislation
has broad support.
HOUSE BILL NO. CSHB 292 (JUD)
"An Act relating to civil actions; amending Alaska
Rules of Civil Procedure 49 and 68; and providing for
an effective date."
DARREL NELSON, ANCHORAGE testified via the teleconference
network in opposition to HB CSHB 292 (JUD). He stressed
that a child will not know what happened to them by age
eight. He stressed that a child of eight is not able to
handle the litigation process. He noted that parents may
not know the law well enough to instigate proceedings on
behalf of their children.
BONNIE NELSON, AKPIRG, ANCHORAGE testified via the
teleconference network in opposition to CSHB 292 (JUD). She
maintained that there are not a lot of frivolous law suits.
She suggested that a neutral body be commissioned to look
into the impacts of the legislation.
HOUSE BILL NO. 351
"An Act relating to the issuance of permits for the
carrying of a concealed weapon."
RAY BROWN, ATTORNEY, ANCHORAGE testified via the
teleconference network against HB 351. He asserted that
victims suffer when a gun is involved. He observed that law
enforcement officers have strict guidelines for the use of
deadly force. He implied that innocent bystanders will be
at risk if the legislation is passed. He noted that
liability insurance will not be a condition of the permit.
He stressed that law enforcement officers will not know who
is armed. He pointed out that good intentioned persons may
become intoxicated while possessing firearms. He noted that
there is no mechanism to determine if someone is passively
or actively psychotic unless they have been adjudicated
under title 47. He alleged that the bill is underfunded.
(Tape Change, HFC 94-104, Side 1)
C.W. FLOYD, ANCHORAGE testified via the teleconference
network in support of HB 351. He alleged that criminals are
not waiting for the legislation. He maintained that the
criminal element is armed.
RONALD FULLERTON, ANCHORAGE testified via the teleconference
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network in support of HB 351. He noted that his wife drives
at night in bad neighborhoods. He wished her to have the
right to be armed.
HB 351 was HELD in Committee for further discussion.
CSHB 292 (JUD) was assigned to a subcommittee consisting of
Representative Parnell as Chair and Representatives Hanley,
MacLean, Navarre and Grussendorf.
ADJOURNMENT
The meeting adjourned at 4:05 p.m.
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