Legislature(1999 - 2000)

04/12/1999 03:23 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                                 
                   April 12, 1999                                                                                               
                     3:23 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Norman Rokeberg, Chairman                                                                                        
Representative Andrew Halcro, Vice Chairman                                                                                     
Representative Jerry Sanders                                                                                                    
Representative Lisa Murkowski                                                                                                   
Representative John Harris                                                                                                      
Representative Tom Brice                                                                                                        
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CS FOR SENATE BILL NO. 87(L&C)                                                                                                  
"An Act requiring a license to sell rental car insurance."                                                                      
                                                                                                                                
     - MOVED CSSB 87(L&C)                                                                                                       
                                                                                                                                
HOUSE BILL NO. 136                                                                                                              
"An Act relating to tourism and tourism marketing; eliminating the                                                              
Alaska Tourism Marketing Council; and providing for an effective                                                                
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 136(L&C)                                                                                                      
                                                                                                                                
* HOUSE BILL NO. 146                                                                                                            
"An Act relating to civil liability for commercial recreational                                                                 
activities; and providing for an effective date."                                                                               
                                                                                                                                
     - MOVED CSHB 146(L&C)                                                                                                      
                                                                                                                                
HOUSE BILL NO. 158                                                                                                              
"An Act relating to the annual report of the director of the                                                                    
division of insurance and to notice of cancellation of personal                                                                 
insurance."                                                                                                                     
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: SB 87                                                                                                                     
SHORT TITLE: RENTAL CAR INSURANCE                                                                                               
SPONSOR(S): LABOR & COMMERCE BY REQUEST                                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/23/99       341     (S)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/23/99       341     (S)  L&C, JUD                                                                                            
 3/18/99               (S)  L&C AT  1:30 PM FAHRENKAMP 203                                                                      
 3/18/99               (S)  MEETING CANCELLED                                                                                   
 3/23/99               (S)  L&C AT  1:30 PM FAHRENKAMP 203                                                                      
 3/23/99               (S)  MOVED CS OUT OF COMMITTEE                                                                           
 3/23/99               (S)  MINUTE(L&C)                                                                                         
 3/24/99       661     (S)  L&C RPT  CS  4DP 1NR  SAME TITLE                                                                    
 3/24/99       661     (S)  DP: MACKIE, LEMAN, TIM KELLY, DONLEY;                                                               
 3/24/99       661     (S)  NR: HOFFMAN                                                                                         
 3/24/99       661     (S)  ZERO FISCAL NOTE (DCED)                                                                             
 3/29/99               (S)  JUD AT  1:30 PM BELTZ 211                                                                           
 3/29/99               (S)  MOVED OUT OF COMMITTEE                                                                              
 3/29/99               (S)  MINUTE(JUD)                                                                                         
 3/30/99               (S)  RLS AT 11:50 AM FAHRENKAMP 203                                                                      
 3/30/99               (S)  MINUTE(RLS)                                                                                         
 3/30/99       735     (S)  JUD RPT 1DP 3NR  (L&C) CS                                                                           
 3/30/99       735     (S)  DP: TAYLOR; NR: TORGERSON, DONLEY,                                                                  
 3/30/99       735     (S)  ELLIS                                                                                               
 3/30/99       735     (S)  PREVIOUS ZERO FN (DCED)                                                                             
 3/31/99       750     (S)  RULES TO CALENDAR  AND 1 OR 3/31/99                                                                 
 3/31/99       754     (S)  READ THE SECOND TIME                                                                                
 3/31/99       754     (S)  L&C  CS ADOPTED UNAN CONSENT                                                                        
 3/31/99       755     (S)  ADVANCED TO THIRD READING UNAN                                                                      
 3/31/99       755     (S)  CONSENT                                                                                             
 3/31/99       755     (S)  READ THE THIRD TIME  CSSB 87(L&C)                                                                   
 3/31/99       755     (S)  PASSED Y18 N- E2                                                                                    
 3/31/99       757     (S)  TRANSMITTED TO (H)                                                                                  
 4/07/99       667     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 4/07/99       667     (H)  L&C                                                                                                 
 4/12/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 136                                                                                                                    
SHORT TITLE: ABOLISH TOURISM MARKETING COUNCIL                                                                                  
SPONSOR(S): REPRESENTATIVES(S) THERRIAULT                                                                                       
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/12/99       438     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/12/99       438     (H)  EDT, L&C, FIN                                                                                       
 3/29/99               (H)  EDT AT  5:00 PM CAPITOL 106                                                                         
 3/29/99               (H)  MINUTE(EDT)                                                                                         
 3/29/99               (H)  HEARD AND HELD SUBCMTE APPOINTED                                                                    
 4/06/99               (H)  EDT AT  4:30 PM CAPITOL 408                                                                         
 4/06/99               (H)  <SUBCOMMITTEE MEETING>                                                                              
 4/09/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 4/09/99               (H)  HEARD AND HELD                                                                                      
 4/09/99               (H)  MINUTE(L&C)                                                                                         
 4/09/99       712     (H)  EDT REFERRAL WAIVED                                                                                 
 4/09/99       712     (H)  REFERRED TO LABOR & COMMERCE                                                                        
 4/12/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 146                                                                                                                    
SHORT TITLE: LIABILITY FOR COMMERCIAL REC ACTIVITIES                                                                            
SPONSOR(S): REPRESENTATIVES(S) KOTT, Dyson                                                                                      
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/19/99       515     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/19/99       515     (H)  L&C, JUD                                                                                            
 3/31/99       642     (H)  COSPONSOR(S): DYSON                                                                                 
 4/12/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOE BALASH, Legislative Secretary                                                                                               
   to Representative Therriault                                                                                                 
Alaska State Legislature                                                                                                        
Capitol Building, Room 511                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-4797                                                                                                      
POSITION STATEMENT:  Provided information regarding HB 136 fiscal                                                               
note.                                                                                                                           
                                                                                                                                
GINNY FAY, Legislative Liaison                                                                                                  
  and Acting Director of the Division of Tourism                                                                                
Department of Commerce and Economic Development                                                                                 
P.O. Box 110800                                                                                                                 
Juneau, Alaska 99811-0800                                                                                                       
Telephone:  (907) 465-2503                                                                                                      
POSITION STATEMENT:  Commented on proposed amendments to Version K                                                              
committee substitute for HB 136, provided fiscal note information                                                               
for HB 136.                                                                                                                     
                                                                                                                                
TINA LINDGREN, Executive Director                                                                                               
Alaska Visitors Association                                                                                                     
2525 "C" Street, Number 400                                                                                                     
Anchorage, Alaska 99515                                                                                                         
Telephone:  (907) 561-5733                                                                                                      
POSITION STATEMENT:  Commented on proposed amendments to Version K                                                              
committee substitute for HB 136; testified in support of HB 146.                                                                
                                                                                                                                
REPRESENTATIVE BETH KERTTULA                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 430                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-4766                                                                                                      
POSITION STATEMENT:  Testified on HB 136.                                                                                       
                                                                                                                                
CHARLIE MILLER, Lobbyist                                                                                                        
   for AutoNation, Incorporated                                                                                                 
P.O. Box 102286                                                                                                                 
Anchorage, Alaska 99510-2286                                                                                                    
Telephone:  (907) 563-2686                                                                                                      
POSITION STATEMENT:  Presented and testified in support of CSSB
87(L&C).                                                                                                                        
                                                                                                                                
HOWARD CONCKLIN, Director of Government Relations                                                                               
AutoNation, Incorporated                                                                                                        
110 SE Sixth Street, 20th Floor                                                                                                 
Fort Lauderdale, Florida 33301                                                                                                  
Telephone:  (954) 769-3173                                                                                                      
POSITION STATEMENT:  Testified in support of CSSB 87(L&C).                                                                      
                                                                                                                                
RICHARD McEVILY, Deputy General Counsel                                                                                         
The Hertz Corporation                                                                                                           
225 Brae Boulevard                                                                                                              
Park Ridge, New Jersey 07656                                                                                                    
Telephone:  (201) 307-2492                                                                                                      
POSITION STATEMENT:  Testified in support of CSSB 87(L&C).                                                                      
                                                                                                                                
JOHN FERENCE, Deputy Director                                                                                                   
Division of Insurance                                                                                                           
Department of Commerce and Economic Development                                                                                 
P.O. Box 110805                                                                                                                 
Juneau, Alaska 99811-0805                                                                                                       
Telephone:  (907) 465-2560                                                                                                      
POSITION STATEMENT:  Testified in support of CSSB 87(L&C).                                                                      
                                                                                                                                
KELLY SULLIVAN, Legislative Secretary                                                                                           
   to Representative Pete Kott                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 118                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-3777                                                                                                      
POSITION STATEMENT:  Presented HB 146 on behalf of the sponsor.                                                                 
                                                                                                                                
REPRESENTATIVE PETE KOTT                                                                                                        
Alaska State Legislature                                                                                                        
Capitol Building, Room 118                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-3777                                                                                                      
POSITION STATEMENT:  Sponsor of HB 146.                                                                                         
                                                                                                                                
MIKE WINDRED, Vice President, Marketing and Sales                                                                               
Alaska Travel Adventures                                                                                                        
9085 Glacier Highway, Suite 301                                                                                                 
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 789-0052                                                                                                      
POSITION STATEMENT:  Testified in support of HB 146.                                                                            
                                                                                                                                
STEVE BEHNKE, Executive Director                                                                                                
Alaska Wilderness Recreation and Tourism Association                                                                            
P.O. Box 22827                                                                                                                  
Juneau, Alaska 99802                                                                                                            
Telephone:  (907) 463-3038                                                                                                      
POSITION STATEMENT:  Testified in support of HB 146.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-37, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                                                                    
Standing Committee meeting to order at 3:23 p.m.  Members present                                                               
at the call to order were Representatives Rokeberg, Sanders,                                                                    
Harris, Brice and Cissna.  Representatives Halcro and Murkowski                                                                 
arrived at 3:24 p.m. and 4:16 p.m., respectively.                                                                               
                                                                                                                                
                                                                                                                                
HB 136 - ABOLISH TOURISM MARKETING COUNCIL                                                                                      
                                                                                                                                
Number 0087                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's first order of business                                                             
is HB 136, "An Act relating to tourism and tourism marketing;                                                                   
eliminating the Alaska Tourism Marketing Council; and providing for                                                             
an effective date."  Reopening the public hearing on HB 136, the                                                                
chairman questioned whether Dave Carp via teleconference in                                                                     
Anchorage or Steve Behnke in Juneau wished to testify.  Both                                                                    
gentlemen indicated they preferred to listen only.  There being no                                                              
one else interested in testifying, the public hearing on HB 136 was                                                             
closed.  Chairman Rokeberg commented some amendments new to the                                                                 
chairman have been circulated, as well as the new fiscal note.                                                                  
                                                                                                                                
Number 0259                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called a brief at-ease at 3:26 p.m.  The                                                                      
committee came back to order at 3:27 p.m.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG welcomed Representative Beth Kerttula to the                                                                  
committee and also recognized the presence of Joe Balash, staff to                                                              
the bill sponsor, Representative Therriault.                                                                                    
                                                                                                                                
Number 0287                                                                                                                     
                                                                                                                                
JOE BALASH, Legislative Secretary to Representative Therriault,                                                                 
Alaska State Legislature, identified himself to the committee.                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Representative Cissna would like the                                                                
chairman to mark the amendments for discussion.  The chairman                                                                   
proceeded to mark the amendments as follows:  1-LS0616\K.1, Cook,                                                               
4/12/99 as Amendment 1; 1-LS0616\K.2, Cook, 4/12/99 as Amendment 2;                                                             
1-LS0616\K.3, Cook, 4/12/99 as Amendment 3.                                                                                     
                                                                                                                                
Number 0342                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA made a motion to adopt Amendment 1, labeled                                                               
1-LS0616\K.1, Cook, 4/12/99, which read as follows:                                                                             
                                                                                                                                
     Page 2, line 23, following "Purposes":                                                                                     
          Insert "; report"                                                                                                     
                                                                                                                                
     Page 3, following line 15:                                                                                                 
          Insert a new bill section to read:                                                                                    
          "* Sec. 5.  AS 44.33.119 is amended by adding a new                                                                   
          subsection to read:                                                                                                   
               (b) The Department of Commerce and Economic                                                                      
          Development shall conduct an evaluation of the                                                                        
          performance of each contract entered into under AS                                                                    
          44.33.125(a) and determine the extent to which the                                                                    
          marketing campaign accomplished the purposes set                                                                      
          out in (a) of this section and the extent to which                                                                    
          the marketing campaign benefited the economy of the                                                                   
          state as a whole.  On or before March 1 of each                                                                       
          fiscal year, the department shall submit to the                                                                       
          legislature and the governor a copy of its                                                                            
          evaluation, together with a recommendation                                                                            
          regarding the amount of state funding that should                                                                     
          be provided for a contract under AS 44.33.125(a)                                                                      
          for the next fiscal year."                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 7, line 21:                                                                                                           
          Delete "Sections 1 - 7, 9, and 10"                                                                                    
          Insert "Sections 1 - 8, 10, and 11"                                                                                   
                                                                                                                                
     Page 7. line 22:                                                                                                           
          Delete "Section 8"                                                                                                    
          Insert "Section 9"                                                                                                    
                                                                                                                                
[punctuation per provided amendment copy]                                                                                       
                                                                                                                                
REPRESENTATIVE HARRIS objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE CISSNA indicated Amendment 1 would insert a new bill                                                             
section that would amend AS 44.33.119 by adding a new subsection.                                                               
She pointed out that the Department of Commerce and Economic                                                                    
Development (DCED) would be required to evaluate the performance                                                                
under the issues discussed in Section 8, AS 44.33.125(a), on page                                                               
7 of the proposed Version K committee substitute (CS).  This                                                                    
addresses a number of issues that need to be covered, including                                                                 
that the campaign may promote distinct segments of tourism and all                                                              
the various types of tourism the amendment should cover.  While                                                                 
discussing Amendment 1, Representative Cissna recognized a problem                                                              
and asked to amend the amendment.  In response to the chairman's                                                                
request for explanation, Representative Cissna clarified, "What                                                                 
we're talking about here is the -- determining the extent to which                                                              
the marketing campaign accomplishes the purposes set out in (a) of                                                              
this section and the extent to which the marketing campaign                                                                     
benefitted the economy of the state as a whole.  Thinking in terms                                                              
of the fact that ... there needs to be a benefit to the entire                                                                  
industry and since it -- as testimony has been brought up, there                                                                
are many, many factions in the tourism industry and we need to ...                                                              
arrive at a balance so that the people of the state and the                                                                     
communities of the state are truly served ... in this venture."                                                                 
Representative Cissna identified the word "campaign" as the                                                                     
amendment's problem, referring to Amendment 1's language,                                                                       
"determine the extent to which the marketing campaign                                                                           
accomplished".  She indicated "campaign" is a non-word in statutory                                                             
language and should be replaced with "contract" which does have                                                                 
statutory definitions.  In response to the chairman's comment,                                                                  
Representative Cissna made a motion to adopt an amendment to                                                                    
Amendment 1 to replace "campaign" with "contract" in all instances                                                              
"campaign" appears in subsection (b) of Amendment 1.                                                                            
                                                                                                                                
Number 0620                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO objected.  He pointed out that the legal                                                                  
department had thoroughly gone through this.  The House Special                                                                 
Committee on Economic Development and Tourism (EDT) subcommittee                                                                
had examined this because of the consistency issue.  Representative                                                             
Halcro indicated the language had been discussed with Tamara Cook,                                                              
Director, Division of Legal and Research Services, Legislative                                                                  
Affairs Agency.  Representative Halcro thought Ms. Cook would have                                                              
brought forth concerns if there was a problem.  He understood that                                                              
all the inconsistencies had been addressed.                                                                                     
                                                                                                                                
Number 0686                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called a brief at-ease at 3:33 p.m. at                                                                        
Representative Cissna's request.  The committee came back to order                                                              
at 3:35 p.m.                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA withdrew the amendment to Amendment 1.  She                                                               
pointed out that this is the state's money and, as such, it is                                                                  
inappropriate for the money to be allocated without an evaluation                                                               
mechanism.  Amendment 1 spoke to that.                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG requested that Ms. Fay and Ms. Lindgren both                                                                  
speak to this issue.                                                                                                            
                                                                                                                                
Number 0737                                                                                                                     
                                                                                                                                
GINNY FAY, Legislative Liaison and Acting Director of the Division                                                              
of Tourism, Department of Commerce and Economic Development, came                                                               
forward.  Ms. Fay thought she understood the intent of Amendment 1,                                                             
but indicated she felt the department's request for funds through                                                               
the budget process each year provided some mechanism.  She                                                                      
indicated the department would basically only ask for something it                                                              
thinks is being used well.  Ms. Fay pointed out that Amendment 1                                                                
would require a report of what has happened in a fiscal year (FY)                                                               
before that fiscal year is complete.  She was unsure as to whether                                                              
this would be necessary to ensure that evaluation is occurring.                                                                 
Ms. Fay stated, "We get grilled by OMB [Office of Management and                                                                
Budget, Office of the Governor] and by you all [the Alaska State                                                                
Legislature] every single year, and then we'll be grilling them                                                                 
[the qualified trade association?], so ... I think this process                                                                 
will be ongoing without this, and I am just concerned about the                                                                 
time frames - whether or not we could effectively accomplish what                                                               
you're doing with this additional step."                                                                                        
                                                                                                                                
Number 0836                                                                                                                     
                                                                                                                                
TINA LINDGREN, Executive Director, Alaska Visitors Association                                                                  
(AVA), came forward.  While appreciating the intent of the                                                                      
amendment, she believes the issue is already covered under the                                                                  
language on page 3, line 30 [Section 5, subsection (b)(7)], "(b)                                                                
The Alaska division of tourism shall ... (7) administer and                                                                     
evaluate the tourism marketing contract program under AS                                                                        
44.33.125;".  Ms. Lindgren also agreed with Ms. Fay that this is                                                                
being done before the fiscal year and through the budget process.                                                               
In Ms. Lindgren's opinion, more funds could always be used.                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA made a motion to withdraw Amendment 1.                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG noted Amendment 1 had been removed.                                                                           
                                                                                                                                
Number 0968                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA made a motion to adopt Amendment 2, labeled                                                               
1-LS0616\K.2, Cook, 4/12/99, which read as follows:                                                                             
                                                                                                                                
     Page 4, line 18, following "department.":                                                                                  
          Insert "The department may approve the marketing                                                                      
     campaign plan only if it determines that the campaign                                                                      
     fulfills each of the purposes listed in AS 44.33.119."                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE CISSNA explained the purpose of Amendment 2 is that                                                              
the guiding principle of the contract promotes tourism in Alaska.                                                               
This would avoid ambiguity with regard to the intent of the bill.                                                               
                                                                                                                                
Number 1039                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO stated this is a good piece of legislation.                                                               
Under AS 44.33.119 there are seven clear goals that the QTA                                                                     
[qualified trade association] will have.  He questioned what would                                                              
happen if tourism decreased through no fault of the QTA.                                                                        
Representative Halcro felt Amendment 2 was unnecessary.                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG requested that Ms. Fay and Ms. Lindgren comment                                                               
on Amendment 2.                                                                                                                 
                                                                                                                                
REPRESENTATIVE BRICE indicated that Amendment 2 might be redundant                                                              
to the statute in general.  If the purposes of the contract are                                                                 
under AS 44.33.119, and with AS 44.33.125(a), which states that                                                                 
before the contract is executed the plan must be approved by the                                                                
department, it seems that the department may only approve the                                                                   
marketing plan if it determines the campaign fulfills each of AS                                                                
44.33.119's listed purposes.  Amendment 2 would seem to restate                                                                 
what is already stated.                                                                                                         
                                                                                                                                
Number 1179                                                                                                                     
                                                                                                                                
MS. FAY believes that AS 44.33.119 states the purpose of the                                                                    
Division of Tourism.  That does not explicitly pertain to purposes                                                              
of the contract.  Ms. Fay indicated that Amendment 2 would assert                                                               
that the department cannot approve the developed plan unless the                                                                
plan fulfills the purposes section.  Ms. Fay expressed concern with                                                             
the language, "each of the purposes", on line 2 of Amendment 2                                                                  
because there could be situations in which the contract could not                                                               
fulfill all the purposes.                                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG commented it was clear to him that Amendment 2                                                                
would require each purpose of the specifying purposes clause to be                                                              
met, therefore obligating the entire contract.  The chairman noted,                                                             
"If it didn't meet all those purposes and if you have restricted                                                                
money, you couldn't even do it."  He asked if Representative Cissna                                                             
wished to speak to the objections.                                                                                              
                                                                                                                                
Number 1282                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA emphasized one of the problems is having                                                                  
bills moved through the committee process in a hurried manner.  She                                                             
believes that it would be an appropriate amendment to Amendment 2                                                               
if the language was changed to "fulfills purposes listed in AS                                                                  
44.33.119".                                                                                                                     
                                                                                                                                
MS. LINDGREN noted that the DCED has a broader goal than the                                                                    
marketing contract.  The broader goal of the department will                                                                    
decide, in part, what goals the marketing council will fulfill.                                                                 
Additionally, the department does planning, advocacy, and has other                                                             
roles.  These purposes are for the Division of Tourism; Ms.                                                                     
Lindgren believes it ties the division's hands if the marketing                                                                 
part is required to fulfill the identical goals.  Ms. Lindgren                                                                  
thinks the department can better identify which goals should be                                                                 
fulfilled and which will be done by advocacy and planning.                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG asked if there was further discussion of                                                                      
Amendment 2.                                                                                                                    
                                                                                                                                
Number 1370                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA indicated there is concern that a private                                                                 
organization will operate very differently than the state, and does                                                             
not have the same requirement to serve all the people of the state.                                                             
She further indicated this duty of the state to serve all Alaskans                                                              
and the use of state money are the reasons for the department's                                                                 
involvement.  As long as state money is being utilized, the                                                                     
department has the special role of ensuring there is uniformity to                                                              
the degree possible in terms of serving the people - the tourism                                                                
industries of the state.  Representative Cissna agreed that there                                                               
would be some marketing programs which would want to head towards                                                               
one market because it is very diverse.  She indicated, however, the                                                             
importance that this is an entirely new program with a group not                                                                
yet in existence.  Representative Cissna noted that this is an                                                                  
effort to clarify the new entity as much as possible.  In response                                                              
to the chairman's comment regarding procedure, Representative                                                                   
Cissna moved that Amendment 2 be amended by deleting "each of the".                                                             
Amendment 2 as amended would read as follows:                                                                                   
                                                                                                                                
     Page 4, line 18, following "department.":                                                                                  
          Insert "The department may approve the marketing                                                                      
     campaign plan only if it determines that the campaign                                                                      
     fulfills purposes listed in AS 44.33.119."                                                                                 
                                                                                                                                
REPRESENTATIVE HALCRO objected to the amendment to Amendment 2.                                                                 
                                                                                                                                
A roll call vote was taken.  Representatives Rokeberg, Sanders,                                                                 
Harris, Brice and Cissna voted in favor of the amendment to                                                                     
Amendment 2.  Representative Halcro voted against it.                                                                           
Representative Murkowski was not present.  Therefore, the amendment                                                             
to Amendment 2 was adopted by a vote of 5-1.                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG clarified that Amendment 2 as amended was now                                                                 
before the committee.                                                                                                           
                                                                                                                                
A roll call vote was taken.  Representative Cissna voted in favor                                                               
of Amendment 2 as amended.  Representatives Rokeberg, Halcro,                                                                   
Sanders, Harris and Brice voted against it.  Representative                                                                     
Murkowski was not present.  Therefore, Amendment 2 as amended                                                                   
failed to be adopted by a vote of 1-5.                                                                                          
                                                                                                                                
Number 1567                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA made a motion to adopt Amendment 3,                                                                       
1-LS0616\K.3, Cook, 4/12/99 which read as follows:                                                                              
                                                                                                                                
     Page 4, line 6:                                                                                                            
          Delete "campaign"                                                                                                     
          Insert "contract"                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS objected to the motion to adopt Amendment 3.                                                              
                                                                                                                                
REPRESENTATIVE CISSNA stated the change is necessary because                                                                    
"campaign" is more ambiguous than "contract" in that sentence.                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG noted he wished to hear from Ms. Fay of the                                                                   
department and Ms. Lindgren.                                                                                                    
                                                                                                                                
MS. FAY responded that the department could not support Amendment                                                               
3 since this is a critical component of the DCED's agreement with                                                               
the AVA.                                                                                                                        
                                                                                                                                
MS. LINDGREN agreed.                                                                                                            
                                                                                                                                
REPRESENTATIVE HALCRO suggested that the language not be changed,                                                               
indicating it had been a point of contention which was resolved by                                                              
the acceptance of "campaign".                                                                                                   
                                                                                                                                
A roll call vote was taken.  Representative Cissna voted in favor                                                               
of adopting Amendment 3.  Representatives Rokeberg, Halcro,                                                                     
Sanders, Harris and Brice voted against it.  Representative                                                                     
Murkowski was not present.  Therefore, Amendment 3 failed to be                                                                 
adopted by a vote of 1-5.                                                                                                       
                                                                                                                                
Number 1684                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called a brief at-ease at 3:53 p.m.  The                                                                      
committee came back to order at 3:54 p.m.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG noted Ms. Fay had been speaking about the fiscal                                                              
note.                                                                                                                           
                                                                                                                                
Number 1689                                                                                                                     
                                                                                                                                
MS. FAY explained that the fiscal note eliminates the three ATMC                                                                
[Alaska Tourism Marketing Council] positions and transfers the                                                                  
personal services and travel to the contractual line.  What is now                                                              
program receipts of the ATMC is moved off-budget because they will                                                              
no longer be collecting the industry match.                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG inquired as to how the $20,000 was placed in FY                                                               
2000.                                                                                                                           
                                                                                                                                
MS. FAY clarified that the $20,000 is the feasibility study                                                                     
required by the Division of Personnel, Department of                                                                            
Administration.  There would be a net loss of six positions:  three                                                             
in the Division of Tourism's Tourism Inquiries Section and three in                                                             
the ATMC.  Ms. Fay indicated this work would be contracted out.                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG asked if the deletions are in the budget.                                                                     
                                                                                                                                
MS. FAY explained that the deletions would be a result of HB 136.                                                               
Article 13 of the "GGU Agreement" requires an analysis before a                                                                 
state position can be contracted out.   This cost would be covered                                                              
by the $20,000 and the analysis would be done in the year 2000                                                                  
prior to the effective date.                                                                                                    
                                                                                                                                
Number 1755                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked if there are no other decrements because                                                                
those have been deleted in the budget document itself and are not                                                               
part of this fiscal note.  The chairman indicated it was his                                                                    
understanding from the bill sponsor, Representative Therriault                                                                  
[Co-Chairman, House Finance Standing Committee], that money was                                                                 
being added back into the fiscal note for this program.                                                                         
                                                                                                                                
MR. BALASH clarified the fiscal note does not reflect that aspect                                                               
of the budget process.                                                                                                          
                                                                                                                                
MS. FAY pointed out that a fiscal note is prepared according to the                                                             
specifications of the bill without accounting for what is occurring                                                             
in another area.                                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG confirmed the committee had an understanding of                                                               
this.  He indicated he had had communication from the bill sponsor,                                                             
and referred to Mr. Balash.                                                                                                     
                                                                                                                                
MR. BALASH stated that both the division and the ATMC would be                                                                  
funded through the fiscal note.  Their entire budget would be                                                                   
reflected in a later fiscal note.                                                                                               
                                                                                                                                
Number 1812                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA made a motion to adopt Amendment 4, a                                                                     
handwritten amendment, which read as follows:                                                                                   
                                                                                                                                
     page 3, Line 30                                                                                                            
     (7) administer and evaluate the tourism marketing                                                                          
     contract program under AS 44.33.125, and forward the                                                                       
     evaluation to the legislature;                                                                                             
                                                                                                                                
REPRESENTATIVE HALCRO objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE CISSNA explained the amendment would add the                                                                     
language ", and forward the evaluation to the legislature" to                                                                   
subsection (7) on page 3, line 30.  The purpose would be to further                                                             
expand the evaluation process.                                                                                                  
                                                                                                                                
REPRESENTATIVE BRICE asked why the legislature would want this                                                                  
evaluation outside of the purview in the budget and this committee.                                                             
Many items are contracted out in Alaska, and Representative Brice                                                               
does not think the evaluation of those contracts are sent to the                                                                
legislature.                                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG indicated the legislature had passed a bill a few                                                             
years ago which restricted the number of reports issued to the                                                                  
legislature.                                                                                                                    
                                                                                                                                
REPRESENTATIVE BRICE stated the legislature chooses which reports                                                               
it wants to receive.  His question is:  Why would the legislature                                                               
want to justify having this evaluation sent to it?                                                                              
                                                                                                                                
REPRESENTATIVE CISSNA indicated that bringing a private entity into                                                             
a state program is unusual and it is reasonable to provide as much                                                              
oversight as possible initially.  This will obviously grow away                                                                 
from the state and the state's management.  Representative Cissna                                                               
mentioned the legislative audit process ["budget and audit report"]                                                             
and indicated she believes it is reasonable to require the                                                                      
evaluation to be forwarded to the legislature, at least                                                                         
temporarily.                                                                                                                    
                                                                                                                                
Number 1944                                                                                                                     
                                                                                                                                
REPRESENTATIVE BETH KERTTULA informed the committee that the EDT                                                                
subcommittee did not have much of an opportunity to work on HB 136.                                                             
She emphasized that reporting the evaluation to the legislature is                                                              
one of the smallest things that could be required.  There will be                                                               
a new contract, without any contract provisions in legislation.                                                                 
She indicated the need to see an evaluation, at least after the                                                                 
first couple of years.                                                                                                          
                                                                                                                                
REPRESENTATIVE HARRIS said this seems redundant because if the                                                                  
Division of Tourism is already going to evaluate the program, the                                                               
legislature has access to that information.  He believes that if                                                                
there is a concern someone would notify the legislature or the                                                                  
legislature would make the effort to find out itself.                                                                           
                                                                                                                                
REPRESENTATIVE HALCRO said he appreciates and understands the                                                                   
intent of the amendment.  However, DCED will still be very involved                                                             
with requesting money from the legislature each year and justifying                                                             
how that money is spent.  Representative Halcro expressed full                                                                  
confidence that Ms. Fay would bring forth any problems with the                                                                 
QTA.  He noted this is an agreement that was worked out between the                                                             
department and the industry.  Additionally, if there is a small                                                                 
segment of the tourism market which is not being addressed,                                                                     
Representative Halcro thinks this will be brought to attention of                                                               
specific legislators, the department or the QTA.  He indicated he                                                               
feels Amendment 4 is unnecessary because there are ample checks and                                                             
balances, including the yearly request for funding.                                                                             
                                                                                                                                
Number 2038                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA indicated the state is facing serious                                                                     
economic problems and emphasized that tourism is Alaska's second                                                                
largest employer.  She acknowledged Representative Halcro's                                                                     
significant work on the legislation but she noted the legislation                                                               
never came back to the House Special Committee on Economic                                                                      
Development and Tourism.  Representative Cissna commented the                                                                   
current committee had a short amount of time on Friday [April 9,                                                                
1999] to review the legislation; the fiscal note has just been                                                                  
received.  Representative Cissna recognized that the legislature                                                                
could review the reports at any time but she indicated problems                                                                 
might be missed.  She commented this is a reasonable request with                                                               
such a large project.                                                                                                           
                                                                                                                                
REPRESENTATIVE HALCRO maintained his objection.                                                                                 
                                                                                                                                
A roll call vote was taken.  Representatives Cissna voted in favor                                                              
of the adoption of Amendment 4.  Representatives Rokeberg, Halcro,                                                              
Sanders, Harris and Brice voted against the adoption of Amendment                                                               
4.  Representative Murkowski was not present.  Therefore, Amendment                                                             
4 failed by a vote of 1-5.                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG confirmed there were no further amendments or                                                                 
discussion on HB 136.                                                                                                           
                                                                                                                                
Number 2145                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to move CSHB 136, Version K,                                                                
out of committee with individual recommendations and the attached                                                               
fiscal note dated 4/12/99.                                                                                                      
                                                                                                                                
REPRESENTATIVE CISSNA objected.                                                                                                 
                                                                                                                                
A roll call vote was taken.  Representatives Rokeberg, Brice,                                                                   
Sanders, Harris and Halcro voted in favor of moving CSHB 136.                                                                   
Representative Cissna voted against moving CSHB 136.                                                                            
Representative Murkowski was not present.  Therefore, CSHB 136(L&C)                                                             
moved out of the House Labor and Commerce Standing Committee by a                                                               
vote of 5-1.                                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG pointed out he had received no calls over the                                                                 
weekend from anyone regarding HB 136.  He noted he had been happy                                                               
to hold the legislation at Representative Kerttula's request.  The                                                              
chairman indicated he appreciated the work on the legislation.                                                                  
                                                                                                                                
Number 2226                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA thanked the chairman for his comment.  She                                                                
recalled the committee had met until about 6:30 p.m. on Friday,                                                                 
after Legislative Legal Services had left for the weekend.                                                                      
Amendments were in to Legislative Legal Services by 8:00 a.m. this                                                              
morning.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA noted she has received contacts in                                                                      
opposition to HB 136 that she will forward to the House Finance                                                                 
Standing Committee.                                                                                                             
                                                                                                                                
[CSHB 136(L&C) MOVED OUT OF COMMITTEE]                                                                                          
                                                                                                                                
Number 2255                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called an at-ease 4:07 p.m.  The committee came                                                               
back to order at 4:09 p.m.  [MANUAL TAPE CHANGE TO SIDE B DURING                                                                
AT-EASE]                                                                                                                        
                                                                                                                                
TAPE 99-37, SIDE B                                                                                                              
                                                                                                                                
                                                                                                                                
CSSB 87(L&C) - RENTAL CAR INSURANCE                                                                                             
                                                                                                                                
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is CSSB 87(L&C), "An Act requiring a license to sell rental car                                                                 
insurance."                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO declared a potential conflict of interest.                                                                
He stated his company does not have a position on this legislation,                                                             
nor did it have anything to do with the bill's introduction.  He                                                                
had not even known of the legislation's existence until Mr. Miller                                                              
informed him it would be introduced.                                                                                            
                                                                                                                                
CHAIRMAN ROKEBERG questioned whether Representative Halcro wished                                                               
to be excused.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HALCRO answered he would allow the committee to                                                                  
decide.                                                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG indicated the committee would not excuse                                                                      
Representative Halcro but appreciated the conflicts being stated                                                                
for the record.                                                                                                                 
                                                                                                                                
Number 0044                                                                                                                     
                                                                                                                                
CHARLIE MILLER, Lobbyist for AutoNation, Incorporated, came forward                                                             
to testify in support of the legislation.  The company he                                                                       
represents, along with The Hertz Corporation, has been negotiating                                                              
with the Division of Insurance on this language and requested the                                                               
legislation's introduction by the Senate Labor and Commerce                                                                     
Standing Committee.  Senate Bill 87 provides for a limited                                                                      
licensure for rental car insurance transactions.  The transactions                                                              
are incidental to the auto rental, the product is not sold on the                                                               
open market; it is not normal insurance in that sense and fits very                                                             
well into the limited licensure statute.  The industry was prompted                                                             
by regulatory action and litigation in other markets to approach                                                                
Alaska's Division of Insurance to discuss a solution for a                                                                      
potential problem.  This was done over the past interim, and this                                                               
language is the result of those discussions.  The Division of                                                                   
Insurance opted for this type of fix; some states exempt from                                                                   
licensure, and Mr. Miller believes there are other options as well.                                                             
He indicated CSSB 87(L&C) adds a new subsection, subsection (7), to                                                             
AS 21.27.150, limited licenses; subsection (7) provides the                                                                     
restrictions regarding the sale of these rental car insurance                                                                   
products.  Mr. Miller understands the Division of Insurance is in                                                               
favor of the legislation, and he is unaware of anyone in                                                                        
opposition.                                                                                                                     
                                                                                                                                
Number 0149                                                                                                                     
                                                                                                                                
HOWARD CONCKLIN, Director of Government Relations, AutoNation,                                                                  
Incorporated, testified next off-network via teleconference from                                                                
Florida.  He noted AutoNation, Incorporated owns Alamo Rent A Car                                                               
[Alamo Rent-A-Car, Incorporated] and National Car Rental [National                                                              
Car Rental System, Incorporated], and that the company name had                                                                 
recently changed from Republic Industries, Incorporated.  Mr.                                                                   
Concklin commented this legislation is typical of their efforts                                                                 
around the country to clarify general insurance laws to either                                                                  
provide an exemption or limited license.  Agreeing with Mr.                                                                     
Miller's summarization, Mr. Concklin related that one of these                                                                  
products has been sold for 10 years, the others up to 20 years,                                                                 
throughout the country.                                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG questioned that AutoNation is involved in the                                                                 
national marketing of used automobiles.                                                                                         
                                                                                                                                
MR. CONCKLIN answered in the affirmative.  They have AutoNation USA                                                             
used car megastores and they are the largest operator of new car                                                                
dealers in the world with approximately 300 dealers nationwide.                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG questioned if this is insurance offered to a                                                                  
consumer at a rental car counter.                                                                                               
                                                                                                                                
MR. CONCKLIN agreed; it is only offered incidental to a car rental,                                                             
it could not be purchased as a stand-alone product.  The insurance                                                              
is typically bought for the period of the car rental.  Mr. Concklin                                                             
indicated the products are purely optional and some, especially the                                                             
liability insurance, may be sought by consumers who aren't covered                                                              
by their own personal policies.  Mr. Concklin noted foreign                                                                     
visitors are normally the higher incidence takers of these                                                                      
products.                                                                                                                       
                                                                                                                                
Number 0248                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned that there was nothing inconsistent in                                                             
the legislation with a person having his/her own coverage,                                                                      
particularly coverage for uninsured or underinsured motorists.                                                                  
                                                                                                                                
MR. CONCKLIN agreed; there is nothing to prevent it, and nothing                                                                
requiring a person to take the rental car coverage.  He possibly                                                                
indicated a person's own policy might not cover a rental situation.                                                             
                                                                                                                                
CHAIRMAN ROKEBERG asked, "There's a number of credit card                                                                       
companies, particularly the premium cards, that indicate that they                                                              
will cover the differential, and that [it is] therefore not                                                                     
necessary to purchase any insurance coverage from a rental car                                                                  
agency.  Is there anything..."                                                                                                  
                                                                                                                                
MR. CONCKLIN answered that might be related to what the industry                                                                
terms collision damage waiver or loss damage waiver, which is for                                                               
property damage to the vehicle alone.  Basically, courts around the                                                             
country have declared that product is not insurance.  This                                                                      
legislation would not cover collision or loss damage waiver -                                                                   
damage to the car.  Mr. Concklin confirmed credit card companies do                                                             
offer this coverage.                                                                                                            
                                                                                                                                
CHAIRMAN ROKEBERG commented he is somewhat curious about that                                                                   
because he always refuses it.                                                                                                   
                                                                                                                                
MR. CONCKLIN stated he knows of no credit card that offers                                                                      
liability insurance to third parties in a rental situation.                                                                     
                                                                                                                                
Number 0333                                                                                                                     
                                                                                                                                
RICHARD McEVILY, Deputy General Counsel, The Hertz Corporation,                                                                 
testified next off-network via teleconference from New York in                                                                  
support of the legislation.  They believe the bill will clarify                                                                 
some situations that have occurred in other states.                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG questioned the necessity of this legislation in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. McEVILY indicated each state's insurance department has been                                                                
asked whether a license is believed to be necessary, and if so, the                                                             
question of limited licensure or exemption law has been posed.                                                                  
This occurred after a situation arose in Texas.  Mr. McEvily                                                                    
understands Alaska's Division of Insurance has opted for the                                                                    
limited license language as opposed to exemption.                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG asked about the fee the companies might pay.                                                                  
                                                                                                                                
MR. McEVILY confirmed they are assuming it would be a modest fee.                                                               
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. McEvily to comment on what the credit                                                               
card companies advise their clients, and, as a result, what Hertz                                                               
advises its clients.                                                                                                            
                                                                                                                                
MR. McEVILY echoed Mr. Concklin's comments:  he is not aware of                                                                 
credit card companies providing third party liability insurance.                                                                
What most of the credit card companies do is, as he understands,                                                                
provide secondary coverage for loss damage waiver, although it                                                                  
might be primary in some situations.  In essence, if a person does                                                              
not have his/her own insurance that applies to physical damage to                                                               
a rental car, the credit card company will step in.  The                                                                        
legislation does not address that; it addresses liability and some                                                              
other products.                                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG confirmed from Mr. McEvily there is nothing in                                                                
the legislation affecting that particular claim.                                                                                
                                                                                                                                
MR. McEVILY agreed, reiterating that courts around the country have                                                             
determined loss damage waiver is not insurance.                                                                                 
                                                                                                                                
Number 0474                                                                                                                     
                                                                                                                                
JOHN FERENCE, Deputy Director, Division of Insurance, Department of                                                             
Commerce and Economic Development, came forward to testify in                                                                   
support of the legislation.  The Division of Insurance feels this                                                               
measure represents a reasonable compromise between the need to                                                                  
protect the public from unqualified or deceptive insurance sales                                                                
and the operational realities of rental car companies.                                                                          
                                                                                                                                
REPRESENTATIVE BRICE referred to subsection (7)(C)(vi), "(vi) other                                                             
insurance as may be authorized by regulation by the director;".  He                                                             
questioned the broadness of the language on this limited licensure                                                              
legislation, although noting he doubted dental coverage would be                                                                
offered with the collision and liability.                                                                                       
                                                                                                                                
MR. FERENCE referred to the types of insurance sales allowed by the                                                             
bill [(7)(C)(i)-(v)], commenting that comprehensive and collision                                                               
insurance was not included at the request of Mr. Miller's clients.                                                              
The Division of Insurance felt it was important to provide a                                                                    
facility for doing so in the future without the need to seek new                                                                
legislation.  In addition, it allows the facility if the state                                                                  
moves toward a no-fault option or similar in the near future.  Mr.                                                              
Ference stated, "It allows us to amend the scope of what the                                                                    
license authorizes without having to seek new legislation."                                                                     
                                                                                                                                
REPRESENTATIVE BRICE surmised rental car agents have been renting                                                               
vehicles and selling this insurance for a number of years; he                                                                   
questioned the current concern about the inappropriate selling or                                                               
offering of that insurance.                                                                                                     
                                                                                                                                
MR. FERENCE answered it is the division's opinion that rental car                                                               
agents and personnel who have been selling insurance associated                                                                 
with rental cars have always been required to be licensed.                                                                      
However, Mr. Ference indicated it has come to the division's                                                                    
attention its existing standard license process, based on an                                                                    
insurance agent or broker selling a broad range of coverages with                                                               
a high degree of occupational stability, does not fit the rental                                                                
car environment.                                                                                                                
                                                                                                                                
Number 0630                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO commented on the marketing possibilities of                                                               
Representative Brice's idea.  Representative Halcro asked Mr.                                                                   
Ference about subsection (D), "(D) notifies the director in                                                                     
writing, within 30 days of employment, of the name, date of birth,                                                              
social security number, location of employment, and home address of                                                             
an employee authorized by the licensee to transact insurance on the                                                             
licensee's behalf; and".  He assumes this applies to rental agents                                                              
and managers who are selling the coverage at the counter.                                                                       
                                                                                                                                
MR. FERENCE answered the reporting is intended to respond to                                                                    
employees, and, as the rental car companies put new counter people                                                              
on staff, the division's standard agency licensing requires that                                                                
these employees be licensed before engaging in any sales activity.                                                              
This change would allow the employees to begin selling the products                                                             
before the reporting is made to the division.                                                                                   
                                                                                                                                
REPRESENTATIVE HALCRO questioned that a licensing fee would not be                                                              
required as the reporting occurred, or that individual licenses                                                                 
would not be necessary.                                                                                                         
                                                                                                                                
MR. FERENCE confirmed individual licenses would not be required;                                                                
however, the legislation contains provisions that would allow the                                                               
division to stop them from continuing if it turns out there is                                                                  
something wrong.                                                                                                                
                                                                                                                                
REPRESENTATIVE HALCRO questioned the division's plans to notify the                                                             
several small operators if this legislation becomes law.                                                                        
                                                                                                                                
MR. FERENCE indicated the division has anticipated this would be                                                                
necessary.  The division would accomplish this through a mailer.                                                                
                                                                                                                                
Number 0717                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked about notification in subsection (D) if an                                                              
employee leaves employment.  The chairman questioned if the                                                                     
division would have a never-ending list.                                                                                        
                                                                                                                                
MR. FERENCE answered the division would have an ever-growing list,                                                              
but, given that the employee "has not failed" when he/she was                                                                   
hired, there is no downside to non-removal.  Mr. Ference commented                                                              
the person would "just fade from the system."                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG indicated, then, there would be no electronic                                                                 
file storage problem and this avoids the need for two                                                                           
notifications.                                                                                                                  
                                                                                                                                
MR. FERENCE answered in the affirmative.                                                                                        
                                                                                                                                
REPRESENTATIVE BRICE asked what the division's role is under this                                                               
legislation if an employee is selling car rental insurance                                                                      
inappropriately.                                                                                                                
                                                                                                                                
MR. FERENCE indicated the division would be able to revoke the                                                                  
employee's authority to sell the products.  The division would also                                                             
be able to take sanctions against the license holder.                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG asked about the fee schedule and questioned                                                                   
whether the division has the authority in this legislation or this                                                              
section to write the necessary regulations.                                                                                     
                                                                                                                                
Number 0802                                                                                                                     
                                                                                                                                
MR. FERENCE replied the division's existing regulatory authority                                                                
allows it to establish a fee schedule for licenses.  The division                                                               
currently anticipates a fee schedule where the fees would be                                                                    
generically similar to those for existing licenses.  Mr. Ference                                                                
indicated this is in the context of one license issued per rental                                                               
car agency.  In response to the chairman's question about the fee                                                               
amount, Mr. Ference responded he believes the standard new license                                                              
fee is $125.  He confirmed that would be for an ordinary agent's                                                                
license.                                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG commented the division would be checking with                                                                 
other states before it sets the fee schedule.                                                                                   
                                                                                                                                
MR. FERENCE noted the division has existing fee schedules for                                                                   
agents and it was not contemplating creating a special fee schedule                                                             
for rental car agencies.                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG questioned that there had been testimony                                                                      
collision insurance would not be available.                                                                                     
                                                                                                                                
MR. FERENCE replied the industry testified it views the collision                                                               
damage waiver as something other than insurance.  The industry                                                                  
requested that, in granting the scope of this license, their                                                                    
employees not be permitted to sell collision insurance.  Mr.                                                                    
Ference noted the reason is because they are already selling, or                                                                
intend to sell, collision damage waiver.                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG sought clarification.                                                                                         
                                                                                                                                
Number 0933                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO commented the industry is currently selling                                                               
collision damage waiver or, as it is called now, liability damage                                                               
waiver.  It is not classified as insurance; it is a waiver.  For a                                                              
fee per day, a person is waiving responsibility for any and all                                                                 
damages in the event of a collision or upset.  If a person declines                                                             
the waiver, he/she is responsible for the damages.  Representative                                                              
Halcro emphasized it is just a waiver and has nothing to do with                                                                
liability.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG questioned, then, if he buys the waiver from                                                                  
Representative Halcro's company and damages the vehicle, he does                                                                
not have to pay for it.                                                                                                         
                                                                                                                                
REPRESENTATIVE HALCRO confirmed that is correct.  He used his                                                                   
company as an example, noting it does not have comprehensive                                                                    
coverage.  If the chairman rents a car, accepts the liability                                                                   
damage waiver for $9.95 per day, and totals the vehicle, the                                                                    
company's coverage would pay for the person or object the chairman                                                              
hit, but not for the vehicle.  Representative Halcro said, "If you                                                              
decline that, then you're liable, not only for mine, but yours."                                                                
                                                                                                                                
CHAIRMAN ROKEBERG noted, "And I would look to my own auto insurance                                                             
(indisc.) recover that ...."  The chairman indicated, then, his                                                                 
credit card coverage would not extend that far.                                                                                 
                                                                                                                                
REPRESENTATIVE HALCRO commented many people are under the                                                                       
assumption, when using their credit card for coverage, that their                                                               
card will pick up the bill if they are in an accident.  In fact,                                                                
the person's insurance would be primary and the credit card's would                                                             
be secondary.                                                                                                                   
                                                                                                                                
Number 0994                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG closed the public hearing on SB 87 after                                                                      
confirming there were no other witnesses.                                                                                       
                                                                                                                                
Number 1028                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE made a motion to move SB 87 to the next                                                                    
committee of referral with attached fiscal notes and individual                                                                 
recommendations.  There being no objection, CSSB 87(L&C) moved out                                                              
of the House Labor and Commerce Standing Committee.                                                                             
                                                                                                                                
Number 1046                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG called an at-ease at 4:33 p.m.  The committee                                                                 
came back to order at 4:36 p.m.                                                                                                 
                                                                                                                                
                                                                                                                                
HB 146 - LIABILITY FOR COMMERCIAL REC ACTIVITIES                                                                                
                                                                                                                                
Number 1050                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is HB 146, "An Act relating to civil liability for commercial                                                                   
recreational activities; and providing for an effective date."                                                                  
                                                                                                                                
Number 1075                                                                                                                     
                                                                                                                                
KELLY SULLIVAN, Legislative Secretary to Representative Pete Kott,                                                              
Alaska State Legislature, came forward to present HB 146 on behalf                                                              
of the sponsor.  Ms. Sullivan noted this is pretty straightforward:                                                             
Alaska has its great outdoor experiences like big game hunting,                                                                 
sportfishing, kayaking and river rafting.  There are a lot                                                                      
businesses in Alaska that provide these experiences to the public.                                                              
Ms. Sullivan mentioned the tourism industry.  House Bill 146 would                                                              
establish the responsibilities of the commercial recreational                                                                   
businesses and the responsibilities of the participants in those                                                                
activities.  The legislation addresses specific guidelines                                                                      
operators and participants would follow in order to minimize the                                                                
possibility of accidents.  Should an accident occur, the                                                                        
legislation provides which party would be held liable.  Current                                                                 
legal uncertainties result in high liability insurance costs that                                                               
hurt a lot of Alaskan businesses, especially smaller ones.  The                                                                 
intent of this legislation is the avoidance of unfair and                                                                       
unreasonable claims which make it difficult [for businesses] to                                                                 
provide these recreational activities.  The desire is to encourage                                                              
the continued availability of these recreational businesses.  Ms.                                                               
Sullivan noted there are a few witnesses to provide testimony.                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG indicated Representative Kott, the bill sponsor,                                                              
had joined the committee at the table.                                                                                          
                                                                                                                                
Number 1188                                                                                                                     
                                                                                                                                
MIKE WINDRED, Vice President, Marketing and Sales, Alaska Travel                                                                
Adventures, came forward to testify in support of HB 146.  He                                                                   
informed the committee that his company has several operations                                                                  
throughout the state.  Mr. Windred thanked the sponsor for bringing                                                             
the legislation forward, noting the bill has passed the House three                                                             
times in recent years but has been held up in the Senate for                                                                    
various reasons.  Mr. Windred believes one of the basic ideas                                                                   
behind this legislation is that participants in many of these                                                                   
activities assume some inherent risk when purchasing that                                                                       
recreational activity.  However, he does not believe the                                                                        
legislation would absolve any of the operators from negligent                                                                   
actions.  The bill establishes some basic performance standards the                                                             
operators must adhere to that are not currently specified by Alaska                                                             
Statute.  The legislation would affect a business like Alaska                                                                   
Travel Adventures by requiring it to provide good training to its                                                               
employees, maintain its equipment, and provide a good explanation                                                               
of the inherent risks to participants.  This is not currently set                                                               
out and should increase the level of service within the industry.                                                               
                                                                                                                                
Number 1262                                                                                                                     
                                                                                                                                
MR. WINDRED thinks the primary benefit to his business would be a                                                               
reduction in the costs of what he termed "nuisance suits."  Mr.                                                                 
Windred described that these nuisance suits would be lawsuits for                                                               
damages specifically at the level of a company's insurance                                                                      
deductible - $10,000 for a business like his - so that the                                                                      
insurance company would not be involved, at least for "the first                                                                
hit."  He indicated these suits result in significant costs over                                                                
the long term because it is less expensive for the business to                                                                  
settle them than risk lengthy litigation.  Mr. Windred thinks the                                                               
legislation gives his business some standing to respond that the                                                                
participants had some amount of responsibility in undertaking the                                                               
activity.  He commented that at least the legislation would give                                                                
the businesses a level playing field to begin with and he feels                                                                 
certain it would reduce the money they pay out-of-pocket each year                                                              
for these nuisance suits.  Mr. Windred described the example of a                                                               
nature hiker stumbling on a rock on the beach, cutting his/her                                                                  
forehead.  Mr. Windred's company would provide first aid, take the                                                              
person to the hospital, make sure everything checked out okay, and                                                              
six months later might be sued by that person for $10,000 to                                                                    
$20,000 because the person's vacation to Alaska had been ruined or                                                              
for some other reason.  He noted, "At the point that we've done                                                                 
everything in our ability to ... make that right in terms of paying                                                             
a medical bill or treating them with first aid, et cetera.  That                                                                
would be a lawsuit that I would certainly think ... probably                                                                    
wouldn't be very valid, but at that amount, would be very difficult                                                             
for us to fight legally."                                                                                                       
                                                                                                                                
Number 1394                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI noted Mr. Windred's testimony that this                                                                
legislation would not preclude lawsuits for negligence on the part                                                              
of the tour company or operator.  She noted the legislation does                                                                
define some areas of responsibility for operators, but she                                                                      
expressed some doubt it covered, for example, a leaky raft.                                                                     
Someone put into that type of situation by an operator should be                                                                
able to sue.                                                                                                                    
                                                                                                                                
MR. WINDRED agreed someone in that situation should be able to sue                                                              
and indicated he thought that would be covered in the legislation                                                               
by the operator's responsibility to maintain its equipment.  He                                                                 
stated, "And in reality, that's probably almost more harmful to the                                                             
operator the way this bill is written, which is a good thing in the                                                             
industry, ... it'll ensure that as an operator, I don't send a                                                                  
faulty piece of equipment out on tour."                                                                                         
                                                                                                                                
REPRESENTATIVE HALCRO referred to the language, "explain to a                                                                   
participant", on page 2, line 23, under "Responsibilities of                                                                    
operators of commercial recreational activities.".  He noted an                                                                 
example of a white water rafting situation where the risks were                                                                 
explained to the participants but someone was hurt and denied that                                                              
he/she had been informed.  Representative Halcro said his concern                                                               
is with having some kind of a written disclosure.  It does not look                                                             
like the legislation provides for that.                                                                                         
                                                                                                                                
Number 1492                                                                                                                     
                                                                                                                                
MR. WINDRED related participants in his company's river rafting                                                                 
sign a sheet before the activity which basically says the                                                                       
participant understands the safety precautions.  These precautions                                                              
and inherent risks are gone through verbally.  If the person                                                                    
chooses not to sign that paper, or does not want to sign off on the                                                             
risks, at that point he/she has the opportunity to return to town                                                               
and not participate in the activity.  Mr. Windred thinks if there                                                               
was no documentation, it would be more difficult for the operator                                                               
to win in that case.                                                                                                            
                                                                                                                                
REPRESENTATIVE HALCRO thinks some kind of written agreement would                                                               
probably be important in this legislation.                                                                                      
                                                                                                                                
REPRESENTATIVE CISSNA noted she did not see anything in the                                                                     
legislation regarding some kind of an assessment the operator might                                                             
need to perform when, for example a participant is intoxicated and                                                              
should not be allowed to engage in the activity.  She questioned if                                                             
that is something that should ever be addressed in something like                                                               
this.                                                                                                                           
                                                                                                                                
MR. WINDRED answered he thinks that would definitely be a gray area                                                             
and is probably a battle that would occur in court.  He indicated                                                               
it would certainly behoove such an operator to inform a person the                                                              
operator feels the person is not prepared to take the inherent risk                                                             
or is a safety problem.  Mr. Windred further indicated he thinks                                                                
there is some responsibility on the part of the participant to                                                                  
evaluate his/her own fitness level for the activity.                                                                            
                                                                                                                                
Number 1677                                                                                                                     
                                                                                                                                
STEVE BEHNKE, Executive Director, Alaska Wilderness Recreation and                                                              
Tourism Association (AWRTA), came forward to testify in support of                                                              
HB 146.  Mr. Behnke noted his organization represents a couple                                                                  
hundred of the types of companies Mr. Windred spoke about.  AWRTA                                                               
members feel this kind of legislation is necessary to protect small                                                             
businesses in this arena.  The organization's members depend on                                                                 
providing experiences that have inherent risks.  The kinds of                                                                   
measures proposed by the legislation that help encourage safer                                                                  
operations are major improvements over the current situation.  Mr.                                                              
Behnke said it seems like a balanced approach to protect the                                                                    
interests of AWRTA's members while also protecting the interests of                                                             
the participants.                                                                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI pointed out the legislation limits                                                                     
recreational activity to outdoor activity.  She asked if there is                                                               
any specific reason for this, commenting she has done great damage                                                              
with a bowling ball.  She noted the question might be best                                                                      
addressed to the sponsor.                                                                                                       
                                                                                                                                
MR. BEHNKE responded he is the wrong person to ask because his                                                                  
organization's members are all [outdoor] outfitters and operators                                                               
providing activities with obvious inherent risks.  He said most                                                                 
operators do currently require some of the kinds of steps in the                                                                
legislation, but it would apply to a broader range of companies and                                                             
help encourage them to be safer and more responsible operators.                                                                 
                                                                                                                                
Number 1817                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE mentioned that indoor climbing walls are                                                                   
increasing in popularity, noting there are opportunities to perform                                                             
these kinds of formerly outdoor activities inside.                                                                              
                                                                                                                                
CHAIRMAN ROKEBERG commented the committee seems to have a question                                                              
about the limitation on outdoor activities vis-a-vis other rather                                                               
dangerous indoor pursuits.  He asked if there is a reason for the                                                               
limitation.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT indicated there was no intent to distinguish                                                                
the two, other than the fact that the visitor businesses who                                                                    
primarily need this measure generally offer outdoor activities                                                                  
within the category.  He has no problem changing it to include                                                                  
both, noting there are some climbing walls even he wouldn't attempt                                                             
to go up, given the constraints he has.  Referring to bowling,                                                                  
however, he noted, "If you get into establishing various types of                                                               
recreational activity and requiring each of the operator[s] to                                                                  
provide some kind of documentation to be signed, then you have to                                                               
get into that whole quandary of whether or not when I go bowling                                                                
the operator there should have me sign a disclosure or some kind of                                                             
form understanding the problems and potential dangers."                                                                         
                                                                                                                                
Number 1989                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked if Representative Kott had considered                                                                   
establishing a new "prudent man rule" for sports activities, noting                                                             
he is half-joking but really half-serious.                                                                                      
                                                                                                                                
REPRESENTATIVE BRICE asked if they simply redefined recreational                                                                
activity to mean "an activity usually undertaken outdoors for the                                                               
purpose of exercise", deferring to the lawyers on the committee.                                                                
                                                                                                                                
REPRESENTATIVE HALCRO suggested simply the deletion of "outdoor".                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI answered if "outdoor" is deleted, this                                                                 
would be "an activity for the purpose of exercise or education".                                                                
She could go to a seminar on throwing pots or grant-writing; she                                                                
does not think that is the intended direction of this definition.                                                               
Representative Murkowski thinks where the definition needs to go is                                                             
"those inherently dangerous activities", indicating there are                                                                   
certain things like being on the water, ice climbing, et cetera,                                                                
that are inherently more dangerous than bowling.  She indicated                                                                 
that perhaps the discussion would occur in the next committee of                                                                
referral, the House Judiciary Standing Committee (Judiciary).                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG mentioned contributory negligence in the case of                                                              
fishing and being "hooked" by a fellow fisherman.                                                                               
                                                                                                                                
Number 2136                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO appreciates the intent of the legislation but                                                             
commented the Surgeon General's warning has been on cigarette packs                                                             
for almost 30 years and it hasn't stopped people from suing tobacco                                                             
manufacturers.                                                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG questioned if it was Representative Kott's                                                                    
intention to insert contributory negligence as a defense here.                                                                  
                                                                                                                                
REPRESENTATIVE KOTT replied that it was at least some extent.                                                                   
There is some inherent risk to just about any activity.  Certainly,                                                             
when a person is engaging in outdoor activities in Alaska, the risk                                                             
is a little more inherent, because of Alaska's terrain, than                                                                    
perhaps in some of the other states.  He noted Alaska's good                                                                    
tourist population, small state population, and the medium-sized                                                                
group of what he would term "mom-and-pop" commercial operators who                                                              
provide these types of environments for the state's visitors.                                                                   
Representative Kott indicated he thinks these operators need some                                                               
assurance of protection from expensive lawsuits brought by people                                                               
who ignored the inherently risky nature of the activity they were                                                               
participating in.                                                                                                               
                                                                                                                                
Number 2266                                                                                                                     
                                                                                                                                
TINA LINDGREN, Executive Director, Alaska Visitors Association                                                                  
(AVA), came forward to testify in support of HB 146.  As Mr.                                                                    
Windred had said, this is legislation the AVA has supported and the                                                             
House has passed at least three times that she is aware of.  It has                                                             
taken different forms because people start identifying other kinds                                                              
of recreational activities.  At one time equine activities were                                                                 
been included, another time skateboarding.  Ms. Lindgren indicated                                                              
the number of bills on the subject is a strong case that the                                                                    
legislation is needed.  She emphasized a strong point of HB 146 is                                                              
that it sort of covers all of the outdoor activities.  She thinks                                                               
the suggestion of including some indoor activities may be good and                                                              
perhaps this can be examined in Judiciary.  Ms. Lindgren noted the                                                              
legislation is before the committee primarily at the request of                                                                 
small businesses concerned about the cost of insurance and nuisance                                                             
lawsuits from people "who through their own activity have caused                                                                
some injury."  She commented it is very similar to the skiing                                                                   
reform bill passed several years ago.  House Bill 146 has                                                                       
participants agreeing to accept some level of risk and operators                                                                
agreeing that they have to provide a safe environment.  Ms.                                                                     
Lindgren stated AVA wholeheartedly supports the legislation.                                                                    
                                                                                                                                
REPRESENTATIVE MURKOWSKI questioned if this would really lower                                                                  
insurance rates for the "mom-and-pops."                                                                                         
                                                                                                                                
MS. LINDGREN replied she does not know - that is the hope.  It                                                                  
would be a tool companies could use.  She does know that companies                                                              
currently are targeted by a lot of frivolous lawsuits from people                                                               
seeking financial gain.                                                                                                         
                                                                                                                                
Number 2471                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE referred to subsection (1)(B) on page 2,                                                                   
beginning on line 26, "(B) the skills or equipment required to                                                                  
participate in the commercial recreational activity that are not                                                                
apparent to an inexperienced participant;".  He stated, "'The                                                                   
skills or equipment required' rather than 'the skills...'"                                                                      
[TESTIMONY INTERRUPTED BY TAPE CHANGE]                                                                                          
                                                                                                                                
TAPE 99-38, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE continued, "...conjunction word."                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG asked if Representative Brice wished to make a                                                                
conceptual amendment.                                                                                                           
                                                                                                                                
REPRESENTATIVE KOTT stated he has no objection.                                                                                 
                                                                                                                                
Number 0025                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE moved Conceptual Amendment 1 to replace "or"                                                               
with "and".  There being no objection, Conceptual Amendment 1 was                                                               
adopted.  Subsection (1)(B) on page 2, beginning on line 26, as                                                                 
amended by Conceptual Amendment 1, reads:                                                                                       
                                                                                                                                
               (B) the skills and equipment required to                                                                         
     participate in the commercial recreational activity that                                                                   
     are not apparent to an inexperienced participant;                                                                          
                                                                                                                                
Number 0050                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO offered two friendly conceptual amendments.                                                               
He moved the addition of "and condition of health" on page 2, line                                                              
13, after "act within the limits of the person' abilities".                                                                     
Representative Halcro indicated he thinks a negative incident                                                                   
during an activity resulting from a person's health condition would                                                             
be the responsibility of the participant, because only the                                                                      
participant knows his/her condition of health.  He used the example                                                             
of someone with a bad heart.  Representative Halcro noted his                                                                   
conceptual amendment 3 would be on page 2, line 23, after "explain                                                              
to a participant", inserting "in writing", if that is acceptable to                                                             
the sponsor.  Representative Halcro said he thinks that protects                                                                
all involved, even if it is just a sign-off sheet.                                                                              
                                                                                                                                
CHAIRMAN ROKEBERG stated the committee would address Amendment 2                                                                
first.  The chairman expressed his approval, terming it "the fat                                                                
guy amendment."  He indicated if a person is too out-of-shape to be                                                             
participating in an activity, the person should not be doing it.                                                                
                                                                                                                                
REPRESENTATIVE KOTT noted he considers it a friendly amendment and                                                              
does not object.  He thinks it is contained in the bill's original                                                              
language but it is fine to add that and clarify.                                                                                
                                                                                                                                
Number 0166                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned if there were any objections to                                                                    
Conceptual Amendment 2, adding "condition of health" on page 2,                                                                 
line 13.  There being none, Conceptual Amendment 2 was adopted.                                                                 
Subsection (2) on page 2, line 13, as amended by Conceptual                                                                     
Amendment 2 reads:                                                                                                              
                                                                                                                                
          (2) act within the limits of the person's abilities                                                                   
     and condition of health;                                                                                                   
                                                                                                                                
REPRESENTATIVE HALCRO moved Conceptual Amendment 3, adding "in                                                                  
writing" on page 2, line 23.                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG objected for purposes of discussion.  He asked if                                                             
the sponsor wished to comment.                                                                                                  
                                                                                                                                
Number 0201                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT answered he would defer to Ms. Lindgren since                                                               
she is probably closer to these issues.  He indicated he can                                                                    
potentially see some problem in a situation where a previously                                                                  
unforeseen risk is being explained.                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG noted it can be problematic.                                                                                  
                                                                                                                                
REPRESENTATIVE KOTT agreed it could be.                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG commented he thinks it is warranted in certain                                                                
circumstances but perhaps not universally; that is his only                                                                     
concern.                                                                                                                        
                                                                                                                                
REPRESENTATIVE HALCRO withdrew Conceptual Amendment 3.                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG noted that was his only concern there.  The                                                                   
chairman expressed that he would actually like to see a two-tier                                                                
thing here, indicating he was referring to a differentiation                                                                    
between very risky activities and those of a more sedate nature.                                                                
                                                                                                                                
Number 0287                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI posed a conceptual amendment concerning                                                                
children and dogs.  On page 2, subsection (4), beginning line 16,                                                               
she recommended the use of "any minors under the participant's                                                                  
control" to replace "the participant's children".  She noted                                                                    
whenever she goes out with her children she also always has other                                                               
people's children.  On page 2, subsection (4), Representative                                                                   
Murkowski indicated it is also her intention to include animals                                                                 
under the participant's control, like a dog, not just animals the                                                               
participant might be using, like a horse.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG stated, "Any equipment, devices, or animals the                                                               
participant is using or under the participant's control."                                                                       
                                                                                                                                
REPRESENTATIVE MURKOWSKI spoke over, "or under the control of the                                                               
-- or animals under the control of the participant."  She noted                                                                 
this would include a person's dog.                                                                                              
                                                                                                                                
CHAIRMAN ROKEBERG asked if there were any objections to Conceptual                                                              
Amendment 4, which includes everything on page 2, lines 16 and 17.                                                              
There being none, Conceptual Amendment 4 was adopted.  According to                                                             
the above discussion, subsection (4) on page 2, beginning on line                                                               
16, as amended by Conceptual Amendment 4, reads:                                                                                
                                                                                                                                
          (4) maintain control of the participant's person,                                                                     
     any minors under the participant's control, and any                                                                        
     equipment, devices, or animals the participant is using                                                                    
     or animals under the control of the participant;                                                                           
                                                                                                                                
Number 0453                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE made a motion to move HB 146, as amended, out                                                              
of committee with accompanying zero fiscal notes and individual                                                                 
recommendations.  There being no objection, CSHB 146(L&C) moved out                                                             
of the House Labor and Commerce Standing Committee.                                                                             
                                                                                                                                
Number 0478                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee would not be hearing HB
158 that day.  Work is continuing on the legislation; it will be                                                                
heard as the first item at the next committee meeting [April 14,                                                                
1999].  The chairman indicated a committee substitute would be                                                                  
presented.                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 0536                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing                                                               
Committee meeting at 5:06 p.m.                                                                                                  
                                                                                                                                

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