Legislature(2007 - 2008)CAPITOL 120

01/16/2008 01:00 PM House JUDICIARY


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01:04:37 PM Start
01:06:33 PM SB139
01:53:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 139 LIABILITY FOR AIRPORTS AND AIRSTRIPS TELECONFERENCED
Moved HCS SSSB 139(JUD) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                        January 16, 2008                                                                                        
                           1:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jay Ramras, Chair                                                                                                
Representative Nancy Dahlstrom, Vice Chair                                                                                      
Representative John Coghill                                                                                                     
Representative Bob Lynn                                                                                                         
Representative Ralph Samuels                                                                                                    
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Max Gruenberg                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 139                                                                                      
"An Act repealing a limitation on the liability of certain                                                                      
airfield owners or operators."                                                                                                  
                                                                                                                                
     - MOVED HCS SSSB 139(JUD) OUT OF COMMITTEE                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 139                                                                                                                  
SHORT TITLE: LIABILITY FOR AIRPORTS AND AIRSTRIPS                                                                               
SPONSOR(S): SENATOR(S) OLSON                                                                                                    
                                                                                                                                
03/28/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/28/07       (S)       TRA                                                                                                    
04/12/07       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
04/12/07       (S)       -- MEETING CANCELED --                                                                                 
04/18/07       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
04/18/07       (S)       TRA                                                                                                    
04/26/07       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
04/26/07       (S)       Moved SSSB 139 Out of Committee                                                                        
04/26/07       (S)       MINUTE(TRA)                                                                                            
04/27/07       (S)       TRA RPT 5DP                                                                                            
04/27/07       (S)       DP: WIELECHOWSKI, COWDERY, KOOKESH,                                                                    
                         OLSON, WILKEN,                                                                                         
05/02/07       (S)       TRANSMITTED TO (H)                                                                                     
05/02/07       (S)       VERSION: SSSB 139                                                                                      
05/03/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/07       (H)       TRA                                                                                                    
05/10/07       (H)       TRA AT 1:30 PM CAPITOL 17                                                                              
05/10/07       (H)       Moved Out of Committee                                                                                 
05/10/07       (H)       MINUTE(TRA)                                                                                            
05/11/07       (H)       TRA RPT 5DP                                                                                            
05/11/07       (H)       DP:   JOHNSON,    KOHRING,   FAIRCLOUGH,                                                               
                        SALMON, JOHANSEN                                                                                        
05/14/07       (H)       BEFORE THE HOUSE                                                                                       
05/14/07       (H)       REFERRED TO JUDICIARY                                                                                  
01/16/08       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR DONNY OLSON                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Sponsor of SSSB 139.                                                                                     
                                                                                                                                
DAVID GRAY, Staff                                                                                                               
to Senator Donny Olson                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During discussion  of  SSSB 139,  provided                                                             
comments on behalf of the sponsor, Senator Olson.                                                                               
                                                                                                                                
TOM GEORGE, Alaska Regional Representative                                                                                      
Aircraft Owners and Pilots Association (AOPA)                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Provided comments  during discussion of SSSB
139, Version E, and suggested a change.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR JAY  RAMRAS called the  House Judiciary  Standing Committee                                                             
meeting  to  order  at  1:04:37  PM.    Representatives  Coghill,                                                             
Samuels, Lynn, Holmes, Dahlstrom, and  Ramras were present at the                                                               
call to order.                                                                                                                  
                                                                                                                                
SB 139 - LIABILITY FOR AIRPORTS AND AIRSTRIPS                                                                                 
                                                                                                                                
1:06:33 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced  that the only order of  business would be                                                               
SPONSOR SUBSTITUTE FOR  SENATE BILL NO. 139, "An  Act repealing a                                                               
limitation  on  the  liability  of  certain  airfield  owners  or                                                               
operators."  [Included  in members' packets was  a proposed House                                                               
committee  substitute (HCS)  for SSSB  139, Version  25-LS0792\E,                                                               
Bailey, 1/16/08.]                                                                                                               
                                                                                                                                
1:08:32 PM                                                                                                                    
                                                                                                                                
SENATOR DONNY  OLSON, Alaska State Legislature,  sponsor, relayed                                                               
that  SSSB 139  addresses the  issue of  aviation, which  is very                                                               
important  to Alaska,  and spoke  of his  experiences as  a pilot                                                               
experiencing  engine trouble.    The  thrust of  the  bill is  to                                                               
encourage  private landowners  in  rural parts  of  the state  to                                                               
create  aircraft landing  areas.    He noted  that  there is  the                                                               
temptation by new,  ofttimes young, pilots to test  the limits of                                                               
themselves  and  their  aircraft.   This  has  resulted  in  many                                                               
landowners refraining from creating  landing areas.  Referring to                                                               
AS  09.65.093(b)(1)-(2)'s requirements  that  to  be exempt  from                                                               
civil   liability  one   must  mark   -   per  Federal   Aviation                                                               
Administration (FAA) guidelines - the  landing area as closed and                                                               
list  it as  closed in  FAA publications,  he offered  his belief                                                               
that  most people  don't  even know  how to  go  about doing  the                                                               
latter  and  can't be  bothered  to  maintain the  aforementioned                                                               
mark.   The current  statute is  meant to  apply to  private, non                                                               
state-maintained airports.                                                                                                      
                                                                                                                                
SENATOR OLSON said that it came  to his attention that because of                                                               
how the  current statute  reads, a man  working in  the insurance                                                               
industry  has been  unable  to get  liability  insurance for  his                                                               
landing  area even  though it  is on  his own  land; SSSB  139 is                                                               
meant to address these issues.                                                                                                  
                                                                                                                                
1:13:12 PM                                                                                                                    
                                                                                                                                
DAVID  GRAY,   Staff  to  Senator   Donny  Olson,   Alaska  State                                                               
Legislature,  added on  behalf of  Senator  Olson, sponsor,  that                                                               
because  of concerns  regarding  SB 139,  the sponsor  introduced                                                               
SSSB 139,  which went so far  as to simply delete  subsection (b)                                                               
altogether from  AS 09.65.093, but  it later became  obvious that                                                               
the bill  still needed further  work and  so was referred  to the                                                               
House Judiciary Standing Committee.                                                                                             
                                                                                                                                
CHAIR RAMRAS  acknowledged that a  conflict of interest  could be                                                               
perceived by  some as applying to  Senator Olson because he  is a                                                               
pilot.                                                                                                                          
                                                                                                                                
The committee took an at-ease from 1:15 p.m. to 1:16 p.m.                                                                       
                                                                                                                                
1:16:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM made  a  motion to  adopt the  proposed                                                               
House  committee  substitute  (HCS)  for SSSB  139,  Version  25-                                                               
LS0792\E, Bailey,  1/16/08, as  the work draft.   There  being no                                                               
objection, Version E was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE  SAMUELS  -  noting  that Version  E  is  in  part                                                               
proposing to change  the word, "closed", as currently  used in AS                                                               
09.65.093(b)(2),  to the  word "private"  - questioned  whether a                                                               
liability  would  still  exist  under  Version  E  if  a  private                                                               
landowner doesn't designate his landing area as private.                                                                        
                                                                                                                                
MR.  GRAY noted  that  subsection (a)  of  existing AS  09.65.093                                                               
provides  that  a  person who  without  compensation  constructs,                                                               
maintains, or  repairs an aircraft  runway, airfield,  or landing                                                               
area can  enjoy limited liability, whereas  subsection (b) speaks                                                               
about an  owner or operator  of an aircraft runway,  airfield, or                                                               
landing area.   He surmised that the owner or  operator of such a                                                               
landing area  would have to mark  it and list it  as directed via                                                               
existing subsection (b)(1)-(2).                                                                                                 
                                                                                                                                
1:20:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS, remarking on  a possible conflict between                                                               
subsections  (a)   and  (b)  of   AS  09.65.093,   surmised  that                                                               
subsection (a) would  not apply to someone who  did not construct                                                               
the landing  area but simply bought  the land it was  situated on                                                               
at  a later  date.   He asked  what would  happen with  regard to                                                               
liability in  such a situation.   Referring to AS  09.65.093(c) -                                                               
which says, "The immunity from  civil liability under (a) of this                                                               
section does not  limit the liability of an owner  or operator of                                                               
an aircraft  runway, airfield, or  landing area to a  provider of                                                               
flight services or  its passengers under contract  with the owner                                                               
or operator"  - he then  asked what  would happen with  regard to                                                               
liability in situations wherein one  entity owns the landing area                                                               
and another entity contracts to use it.                                                                                         
                                                                                                                                
SENATOR  OLSON,   regarding  the  first  question,   offered  his                                                               
understanding  that  such  a situation  would  be  addressed  via                                                               
subsection  (a).   He said  that  the intent  of the  bill is  to                                                               
ensure that  one would  not have  to mark a  runway as  closed or                                                               
list it as closed in order to be eligible for limited liability.                                                                
                                                                                                                                
REPRESENTATIVE   SAMUELS  noted,   however,  that   if  he   were                                                               
attempting to sue an owner of a  landing area who did not list it                                                               
as  private,  he  would  argue   that  subsection  (b)  overrides                                                               
subsection (a).   Currently subsection (a)  simply grants limited                                                               
liability, but subsection (b) has  certain stipulations that must                                                               
be complied  with in  order for one  to enjoy  limited liability.                                                               
Thus he  is not  sure, he relayed,  which subsection  would apply                                                               
and how that would be determined.                                                                                               
                                                                                                                                
1:24:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HOLMES  referring   to   Version  E's   proposed                                                               
subsection (b), posited that as  it's currently written, it might                                                               
also  apply to  the Ted  Stevens Anchorage  International Airport                                                               
because currently  subsection (a)  grants limited  liability only                                                               
if one  does not charge for  using a landing area.   Furthermore,                                                               
unlike   subsection  (a),   subsection   (b)  doesn't   reference                                                               
subsection  (c)  as  an  exception;  therefore,  she  questioned,                                                               
couldn't  one have  a  very active  runway and  just  mark it  as                                                               
private in order  to enjoy the limited liability  provided for in                                                               
proposed  subsection (b)?   She  said  she wants  to ensure  that                                                               
those who  should have some duty  to take care of  a landing area                                                               
because they are actually running  a business and charging people                                                               
for using  the landing area are  not being let off  the hook with                                                               
regard to liability.                                                                                                            
                                                                                                                                
MR. GRAY offered  his recollection that subsection  (c) was added                                                               
to specifically  address those  who charge for  the use  of their                                                               
private  landing area,  and acknowledged  that the  committee may                                                               
wish to address this point further.                                                                                             
                                                                                                                                
SENATOR  OLSON,  in response  to  a  question, offered  that  the                                                               
original intent  of providing limited liability  was to encourage                                                               
people  to  build airstrips  on  their  private land,  but  since                                                               
current  statute is  making it  hard  for people  to even  obtain                                                               
liability  insurance, the  intent of  the bill  now is  to enable                                                               
people  to  acquire  such insurance  for  their  private  landing                                                               
areas.                                                                                                                          
                                                                                                                                
CHAIR RAMRAS  surmised that  at issue  is what  specific language                                                               
would actually accomplish that goal.                                                                                            
                                                                                                                                
REPRESENTATIVE  HOLMES suggested  that  since  subsection (b)  is                                                               
being changed  to refer  to private landing  areas as  opposed to                                                               
closed landing areas,  then perhaps simply adding  a reference to                                                               
subsection (c) as an exception would suffice.                                                                                   
                                                                                                                                
SENATOR OLSON  suggested also altering  subsection (c)  such that                                                               
it then references subsection (b).                                                                                              
                                                                                                                                
REPRESENTATIVE SAMUELS pointed out,  however, that subsection (a)                                                               
still only refers to one  who constructs, maintains, or repairs a                                                               
landing area, whereas subsection (b)  only refers to one who owns                                                               
or  operates  a  landing  area.   He  then  questioned  what  the                                                               
difference is between such persons.                                                                                             
                                                                                                                                
SENATOR OLSON  offered that a  person under subsection  (a) could                                                               
simply be someone who comes in  with heavy equipment one time and                                                               
does  something  to the  landing  area,  whereas a  person  under                                                               
subsection  (b) [has  an ongoing  relationship] with  the landing                                                               
area.  He offered his belief  that all mines operating out in the                                                               
Bush have some sort of landing area on the property.                                                                            
                                                                                                                                
1:34:28 PM                                                                                                                    
                                                                                                                                
TOM GEORGE,  Alaska Regional Representative, Aircraft  Owners and                                                               
Pilots  Association (AOPA),  after  noting that  the AOPA  serves                                                               
about  4,200 Alaska  members,  offered that  in  addition to  the                                                               
airports that are operated by  the Department of Transportation &                                                               
Public  Facilities  (DOT&PF),  there   are  many  other  runways,                                                               
airstrips, and landing  areas [in Alaska], all of  which are very                                                               
important to  the AOPA's members  because they provide  safety in                                                               
cases of emergency, access to  public lands, and "reliever space"                                                               
for municipal-  and state-operated  airports.   Although existing                                                               
statute is  intended to  put some limits  on civil  liability for                                                               
people  who are  willing to  support such  facilities, either  on                                                               
public or  private land, the  current language in  subsection (b)                                                               
has led to  confusion and has left some people  feeling that they                                                               
must close their airport in order to enjoy limited liability.                                                                   
                                                                                                                                
MR. GEORGE offered his understanding  that the original intent of                                                               
subsection (b) was  to deal with the issue of  landing areas that                                                               
are  used seasonally  and that  may not  have anyone  maintaining                                                               
them throughout  the year; the  thought at  the time was  that if                                                               
"you  'X'   the  runway  and  if   you  had  it  listed   in  the                                                               
publications," then  that exemption from liability  would protect                                                               
a  person, but  the  reality  is that  with  regard  to the  FAA,                                                               
landing areas  cannot simply be switched  on and off, and  so the                                                               
solution attempted  via subsection  (b) is  unworkable.   He said                                                               
that as he reads Version E,  one can only enjoy limited liability                                                               
if one lists  or charts a landing area as  private.  However, the                                                               
FAA won't  guarantee that  it will chart  an airstrip  as private                                                               
because it  will only do so  if there is  room on the chart.   In                                                               
other  words,  although Version  E  is  attempting to  provide  a                                                               
protection, that  protection will only  apply if one can  get the                                                               
FAA to take a particular action -  an action that the FAA may not                                                               
be willing to take.                                                                                                             
                                                                                                                                
MR.  GEORGE suggested  that a  solution, therefore,  would be  to                                                               
simply  delete  AS  09.65.093(b)   and  add  to  AS  09.65.093(a)                                                               
language that  says "owner-operator".   He added, "I  believe the                                                               
intent  is  ...  to  say  that people  who  are  operating  their                                                               
airports without compensation ... should be exempt."                                                                            
                                                                                                                                
SENATOR OLSON offered his understanding  that such a change would                                                               
also  require adding  a  majority of  the  language currently  in                                                               
subsection (b) to subsection (a).                                                                                               
                                                                                                                                
MR.  GEORGE  offered his  belief,  though,  that simply  changing                                                               
subsection (a)  such that it would  then in part read,  "a person                                                               
who without  compensation owns, operates,  constructs, maintains,                                                               
..." would be sufficient.                                                                                                       
                                                                                                                                
SENATOR OLSON said  that such a change would be  fine with him as                                                               
long as it addresses the committee's concerns.                                                                                  
                                                                                                                                
REPRESENTATIVE SAMUELS  surmised that the suggested  change would                                                               
ensure  that an  owner or  operator of  a non-commercial  landing                                                               
area would not be liable except  in cases of gross negligence [or                                                               
recklessness or intentional misconduct].                                                                                        
                                                                                                                                
REPRESENTATIVE  HOLMES, in  response to  a question,  offered her                                                               
belief that such a change would address members' concerns.                                                                      
                                                                                                                                
The committee took an at-ease from 1:40 p.m. to 1:53 p.m.                                                                       
                                                                                                                                
1:53:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES   made  a   motion  to   adopt  Conceptual                                                               
Amendment  1, to  add  a  new section  to  the  bill amending  AS                                                               
09.65.093(a)  such  that  after  the  word,  "compensation",  the                                                               
words,  "owns,  operates,"  are  added;   to  delete  all  of  AS                                                               
09.65.093(b); and to [re-letter] the statute accordingly.                                                                       
                                                                                                                                
CHAIR RAMRAS objected for the purpose of discussion.                                                                            
                                                                                                                                
SENATOR  OLSON characterized  Conceptual  Amendment 1  as a  good                                                               
amendment.                                                                                                                      
                                                                                                                                
MR. GEORGE  indicated that Conceptual  Amendment 1  would address                                                               
the AOPA's concerns.                                                                                                            
                                                                                                                                
CHAIR RAMRAS  removed his objection.   [Although  nothing further                                                               
was said, Conceptual Amendment 1 was treated as adopted.]                                                                       
                                                                                                                                
REPRESENTATIVE  DAHLSTROM moved  to report  the proposed  HCS for                                                               
SSSB 139,  Version 25-LS0792\E, Bailey, 1/16/08,  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal  notes.  There  being no objection,  HCS SSSB
139(JUD)  was   reported  from   the  House   Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 1:56 p.m.                                                                 

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