Legislature(1993 - 1994)
01/26/1993 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
January 26, 1993
3:00 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chairman
Rep. Eldon Mulder
Rep. Brian Porter
Rep. Bill Williams
Rep. Joe Sitton
Rep. Jerry Mackie
MEMBERS ABSENT
None
COMMITTEE CALENDAR
*HB 41: "An Act relating to civil liability for skiing
accidents, operation of ski areas, and duties of
ski area operators and skiers; and providing for
an effective date."
HEARD AND HELD IN COMMITTEE
EO 82: Transferring administration of the charitable
gaming program from the Department of Commerce and
Economic Development to the Department of Revenue.
MOVED OUT OF COMMITTEE
* First public hearing.
WITNESS REGISTER
Rep. Gail Phillips
Alaska State Legislature
State Capitol, Room 216
Juneau, Alaska 99801-1182
Position Statement: Prime Sponsor of HB 41
Bruce Rizer
5530 Rabbit Creek Rd.
Anchorage, Alaska 99516
(907)345-1743
Position Statement: Opposed HB 41
(Spoke via teleconference)
Leroy Cabana
6100 Andover Circle
Anchorage, Alaska 99516
345-5827
Position Statement: Opposed HB 41
(Spoke via teleconference)
Rhonda Scott
3866 Helvetia Drive
Anchorage, Alaska 99508
561-4959
Position Statement: Opposed HB 41
(Spoke via teleconference)
Marc Bond, Legal Counsel
Alyeska Ski Resort
1007 W. 3rd Ave., #400
Anchorage, Alaska 99501
279-3581
Position Statement: Supported HB 41
(Spoke via teleconference)
Bill Elander
Anchorage Convention & Visitors Association
1600 A Street
Anchorage, Alaska 99501
276-4118
Position Statement: Supported HB 41
(Spoke via teleconference)
Steve Rumme, President
Alaska Ski Areas Assoc.
7015 Abbott Road
Anchorage, Alaska 99516
346-1446
Position Statement: Supported HB 41
(Spoke via teleconference)
Ralph Nogal, President
Alaska Hotel/Motel Association
500 W Third Ave.
Anchorage, Alaska 99501
265-7118
Position Statement: Supported HB 41
(Spoke via teleconference)
Thomas McCann, Owner
Cleary Summit
1218 10th Ave.
Fairbanks, Alaska 99701
452-3709
Position Statement: Supported HB 41 on behalf of the Alaska
Ski Areas Association
(Spoke via teleconference)
Dave Lowe
6320 Switzerland Drive
Anchorage, Alaska 99516
345-6854
Position Statement: Opposed HB 41
(Spoke via teleconference)
Susan Lowe
6320 Switzerland Drive
Anchorage, Alaska 99516
345-6854
Position Statement: Opposed HB 41
(Spoke via teleconference)
Lex Patten
Alyeska Ski Club
449 Dailey #17
Anchorage, Alaska 99515
344-0532
Position Statement: Supported HB 41
(Spoke via teleconference)
Mike Grandinetti
Risk Manager & Safety Director
Alyeska Ski Resort
P.O. Box 249
Girdwood, Alaska 99587
783-1091
Position Statement: Commented on the insurance industry
(Spoke via teleconference)
Scott Fisher, Owner
Foggy Mountain Shop
134 Franklin Street
Juneau, Alaska 99801
586-6780
Position Statement: Supported HB 41
Don Hitchcock, Director
Division of Risk Management
Department of Administration
P.O. Box 110218
Juneau, Alaska 99811-0218
465-2180
Position Statement: Addressed the Division's concerns
Mitch Gravo, Lobbyist
2550 Denali, 17th Floor
Anchorage, Alaska 99503
272-6474
Position Statement: Answered question re: regulations
Tom Dreyer
2417 St. Elias Drive
Anchorage, Alaska 99517
248-4118
Position Statement: Supported HB 41
(Spoke via teleconference)
John Hansen, Gaming Manager
Department of Commerce & Economic Development
P.O. Box 110806
Juneau, Alaska 99811-0806
465-2581
Position Statement: Supported EO 82
Rod Mourant, Assistant Commissioner
Department of Revenue
P.O. Box 110400
Juneau, Alaska 99811-0400
465-2300
Position Statement: Supported EO 82
PREVIOUS ACTION
BILL: HB 41
SHORT TITLE: CIVIL LIABILITY FOR SKIING ACCIDENTS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Hudson,Porter
TITLE: "An Act relating to civil liability for skiing
accidents, operation of ski areas, and duties of ski area
operators and skiers; and providing for an effective date."
JRN-DATE JRN-PG ACTION
01/11/93 34 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 35 (H) LABOR & COMMERCE, JUDICIARY,
FINANCE
01/26/93 (H) L&C AT 03:00 PM CAPITOL 17
EXECUTIVE ORDER 82: EO 82 was previously heard in the House
State Affairs Committee on 1/19/93.
ACTION NARRATIVE
TAPE 93-4, SIDE A
Number 000
CHAIRMAN HUDSON called the House Labor and Commerce
Committee to order at 3:05 p.m., January 26, 1993.
Members present were Reps. Hudson, Green, Mulder, Porter,
Williams, Sitton and Mackie.
HB 41: CIVIL LIABILITY FOR SKIING ACCIDENTS
Number 065
CHAIRMAN HUDSON announced his intention to hear HB 41 but
not pass it out until committee members had a chance to see
what the other body would do with its version. The Chairman
also announced his intention to appoint a subcommittee to
look at the bill and come up with a committee substitute to
pass out of committee.
CHAIRMAN HUDSON directed the committee's attention to two
pieces of proposed legislation that he wanted the committee
to look at for possible sponsorship. The first piece was
requested by the Department of Labor and concerned
increasing the size of the labor relations board by two.
The second item was a bill concerning the liability of
certain security interest holders.
Number 080
REP. GAIL PHILLIPS testified as the PRIME SPONSOR OF HB 41.
She noted three key areas in the bill:
1) HB 41 requires that ski area operators safely and
efficiently operate ski areas;
2) HB 41 makes ski area operators liable for their
negligence; and
3) HB 41 requires skiers to take responsibility for the
inherent risks of skiing.
Number 113
BRUCE RIZER testified via teleconference from Anchorage in
opposition to HB 41. He related the circumstances
surrounding the death of his son in 1991 in a skiing
accident at Seibu/Alyeska Ski Resort. Mr. Rizer indicated
that Seibu has had four deaths at the resort since they have
taken over from Alaska Airlines. Mr. Rizer noted a recent
study showing there was approximately one skiing death in
1,000,000 visits on average nationwide. He further stated
that Seibu had 43,000 visits last year and, therefore, it
should have taken them another 23 years before the first
death.
MR. RIZER also outlined court cases involving the liability
of ski area operators and the responsibilities of the skier.
Number 215
LEROY CABANA testified via teleconference against HB 41.
Mr. Cabana felt that the bill would take away any
responsibility on the part of the resorts to take extra
care.
Number 293
REP. JERRY MACKIE noted that there were some safety
provisions in the bill and he wanted the witness to
communicate in writing where he felt the bill was lacking.
CHAIRMAN HUDSON pointed out that HB 41 was a working
document and if there were any amendments to the bill he
would like them to be faxed to his office.
Number 384
RHONDA SCOTT testified via teleconference in opposition to
HB 41 as it stood. She felt the bill allowed complete
immunity to management and that consumers, if injured,
should have legal recourse.
Number 398
MARC BOND, LEGAL COUNSEL FOR ALYESKA SKI RESORT, testified
via teleconference in favor of HB 41. He explained that the
bill, as it stood, was an attempt to provide a reasonable
list of specific duties that the ski area operator could
reasonably undertake. Mr. Bond further commented that the
sport of skiing can never be made 100 percent safe.
MR. BOND said that the bottom line was that the ski area
operator's duties are to provide warnings about certain
hazards and the skier must take personal responsibility for
the risks that could not be reasonably removed.
Number 422
REP. BRIAN PORTER inquired if the definition of "inherent
risks" that appeared on page 12, line 7, of the bill was the
same definition used in the Colorado law.
MR. BOND replied in the affirmative.
Number 439
BILL ELANDER OF THE ANCHORAGE CONVENTION AND VISITORS
BUREAU, testified via teleconference in support of HB 41.
Mr. Elander noted that the board of directors sent the
committee a resolution from the industry stating that they
do recognize that the sport of skiing has inherent risks.
Number 472
STEVE RUMME, PRESIDENT OF THE ALASKA SKI AREAS ASSOCIATION
AND GENERAL MANAGER OF HILLTOP SKI RESORT, testified via
teleconference in support of HB 41. Mr. Rumme observed that
there was no way to make skiing absolutely safe. He said he
was concerned that if this legislation was not passed, many
of the smaller ski areas may have to close under the
increasing insurance burden.
Number 531
RALPH NOGAL, PRESIDENT OF THE ALASKA HOTEL/MOTEL
ASSOCIATION, testified from the Anchorage teleconference
site that he concurred with the preceding speaker in
supporting the legislation. He said HB 41 would definitely
increase economic development and tourism in the state
because it would put the state's skier liability laws on
equal footing with those of the Western states. Mr. Nogal
asserted that Alaska would then be able to compete with the
other states and even Canada.
Number 545
THOMAS McCANN, REPRESENTING THE ALASKA SKI AREAS
ASSOCIATION, AND OWNER OF CLEARY SUMMIT, stated via
teleconference that skiing had changed dramatically in the
last 30 years. Recent mandatory insurance and state control
have pressured his small ski area to the point where they
may not stay in business. Mr. McCann hoped that the laws
would be changed to effect a more stable insurance
environment.
Number 557
CHAIRMAN HUDSON inquired about insurance costs for small ski
resorts.
MR. McCANN responded that his costs have gone from zero to
$20,000 a year.
Number 567
DAVE LOWE, testified from Anchorage that he has been an
active skier for the past 40 years and is involved in the
national ski patrol. Mr. Lowe stated he recognized that
there was a need to share responsibility between management
and the skier. Mr. Lowe's concern was that HB 41 would
eliminate too much of the liability of the ski area. Mr.
Lowe further stated that he would support a bill that more
clearly defined the responsibility of both the ski area and
the individual skiers.
Number 597
CHAIRMAN HUDSON commented that the committee was looking for
the balance between the responsibility of the operators and
the people who use the ski areas.
Number 607
SUSAN LOWE testified via teleconference that she was opposed
to HB 41. She felt the bill takes too much responsibility
away from the operators. She would like to see the bill
reworked and reworded to provide adequate safety for the
skiers. Ms. Lowe added that the public also needed to be
educated as to the risks of skiing.
TAPE 4, SIDE B
Number 085
REP. ELDON MULDER asked if Ms. Lowe had any specific ideas
for safety requirements the committee could consider for
inclusion in HB 41.
MS. LOWE did not have any specific areas to address.
Number 170
LEX PATTEN OF THE ALYESKA SKI CLUB, testified via
teleconference that he supported HB 41. He expressed three
points in favor of the bill:
1) skiers use the natural conditions (not groomed) to
improve their skills;
2) HB 41 would reduce the cost to the skiers; and
3) he felt that the operators consider safety their
number one concern.
Number 259
MIKE GRANDINETTI, RISK MANAGER AND SAFETY DIRECTOR AT
ALYESKA SKI RESORT, testified for the record (via
teleconference) that there has been only one death at
Alyeska since Seibu purchased the resort and there are also
over 145,000 skiers per year.
MR. GRANDINETTI noted that the industry has been enjoying a
soft insurance market recently, but all indications are that
the market will tighten up in the next year or so. He
believed Alyeska would be able to withstand this increase,
but the smaller areas would be hit pretty hard.
Number 291
SCOTT FISHER, OWNER OF THE FOGGY MOUNTAIN SHOP IN JUNEAU,
testified in support of HB 41. Mr. Fisher said he has had
extensive experience skiing at over 20 different resorts
around the country and he finds the safety features in
Alaska to be high quality. Mr. Fisher stated his belief
that ski area operators could not make skiing totally safe
and should not be required to do so. To do so would only
make skiing more expensive and put it out of the realm of
the average family.
Number 364
DON HITCHCOCK, DIRECTOR OF THE DIVISION OF RISK MANAGEMENT,
DEPARTMENT OF ADMINISTRATION, stated that the official
position of the Division was neutral. The Division's
concern was that under HB 41 as written, the Department of
Natural Resources would be held to the same liability
standards as the ski area operators when cross-country
skiers used state land with or without sanction. Mr.
Hitchcock noted that the committee substitute (CS) for the
Senate version of the bill alleviated this problem by
exempting cross-country skiing.
Number 382
REP. MACKIE inquired if someone from the Department of Labor
could explain what types of regulations there would be under
AS 5.20.070 to deal with violations that constitute
negligence.
Number 393
MITCH GRAVO, LOBBYIST, responded from the audience that the
Department of Labor would be responsible for promulgating
the regulations needed to administer this bill.
REP. MACKIE suggested a more detailed definition of
negligence.
CHAIRMAN HUDSON added that he believed HB 41 may very well
need some definitions in the final legislation.
Number 424
REP. MULDER inquired whether, under the bill, an operator
was not required to post a warning sign by catwalks, roads
or stumps because they are considered inherent risks.
MR. GRAVO responded that under HB 41 that was not covered,
but the CS the Senate passed out addressed this point.
Number 448
TOM DREYER testified from Anchorage that he supported HB 41.
He felt that willing participants in the sport should take
the responsibility for the inherent risks.
Number 470
REP. JOE GREEN commented that he favored the concept of
HB 41, but he was concerned anytime "you waive your legal
recourse." He further suggested that his concern in trying
to pin down every definition and area of responsibility in
the bill would open a Pandora's box.
Number 513
CHAIRMAN HUDSON appointed three members to a subcommittee to
look at HB 41 and come back with recommendations: Rep.
Mulder as chairman, Rep. Porter and Rep. Mackie.
EO 82: TRANSFER CHARITABLE GAMING PROGRAM FROM DCRA TO
REVENUE
Number 528
CHAIRMAN HUDSON brought up Executive Order 82, transfer of
the gaming program from the Department of Commerce to the
Department of Revenue.
Number 530
JOHN HANSEN, MANAGER OF THE GAMING PROGRAM FOR THE
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified
regarding the history of the gaming program and what the
transfer would accomplish. He further stated that the
transfer would help better regulate this activity. Mr.
Hansen offered the following as reasons for the transfer:
1) financial statements organizations are required to
file are in essence tax returns;
2) the program collects an excise tax of $1.7 million;
3) the auditors and tax examiners the program uses are
Revenue auditors;
4) the hearing procedures used are the same ones the
Revenue Department has long established;
5) the Department of Revenue's hearing staff are used
to hear conflicts with the gaming program.
Number 580
MR. HANSEN stated his belief that the transfer was logical
and he was in support of the move.
Number 587
CHAIRMAN HUDSON inquired how the program would be set up in
the Department of Revenue.
Number 589
ROD MOURANT, ASSISTANT COMMISSIONER FOR THE DEPARTMENT OF
REVENUE, answered that the organizational structure of the
program had been discussed, and the department was leaning
towards either the creation of a new division or inclusion
in the Income and Excise Audit Division.
Number 638
REP. JOE SITTON commented that Mr. Hansen had done an
outstanding job and wondered if he was going with the
program.
MR. MOURANT responded that if the program is transferred,
the intention is to retain all current staff.
Number 645
REP. GREEN asked if there was a negative cost to this
transfer.
Number 650
MR. HANSEN replied that his staff would be better utilized
under the transfer since the program could then use some of
Revenue's expertise.
Number 683
REP. GREEN asked if the legislature could indeed expect to
see a negative fiscal note. Furthermore, according to Rep.
Green, given the current makeup of the administration,
creating a new board or commission was probably not the best
idea.
Number 696
MR. MOURANT replied that the Department believes there will
be additional cost savings as well as additional revenue.
Number 719
REP. PORTER expressed concern that the program not be cut in
any way. He felt that it was an area of regulation in the
state that was underfunded and needed constant attention.
REP. PORTER inquired if there were program receipts. He
commented that it has been his experience that the state has
the history of regulating at a minimum and allowing the
activity at a maximum, which allows for the potential of
corruption, etc. He said he would be happy to see an
increase in the program's budget.
Number 750
MR. HANSEN replied that the program receipts were $1.7
million and the program expends $600,000. He further noted
that the program has a very minimum staff to run a $200
million industry.
CHAIRMAN HUDSON inquired about the current staff and asked
if they would remain the same.
Number 770
MR. MOURANT explained that the Department has no intention
of disrupting the program as it stands organizationally or
geographically, nor does the department intend to pare down
the budget in any way.
Number 780
CHAIRMAN HUDSON suggested that the program staff prepare
some suggestions for the next committee of referral (House
Judiciary) about making the program more efficient given the
huge load they have to regulate and control.
Number 791
REP. MULDER inquired if the program has any legislation they
were planning to introduce this year.
MR. HANSEN replied that he had met with the Governor's
Office and there may be some bills coming, but he could not
speak for the Governor's Office.
Number 877
REP. MULDER recommended that EO 82 be moved out of
committee. With no objection, it was so ordered.
Number 890
CHAIRMAN HUDSON directed the committee's attention to the
two pieces of proposed legislation:
1) the liability of certain security interest holders;
2) expand the labor relations board from three to six
members, and provide for an honorarium.
CHAIRMAN HUDSON adjourned the meeting at 4:56 p.m.
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