04/14/2009 01:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB12 | |
| SB126 | |
| HB93 | |
| HB101 | |
| HB102 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 93 | TELECONFERENCED | |
| + | HB 101 | TELECONFERENCED | |
| + | HB 102 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 12 | ||
| = | SB 126 | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 14, 2009
1:12 p.m.
MEMBERS PRESENT
Senator Joe Paskvan, Chair
Senator Joe Thomas, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 12
"An Act relating to limitations on mandatory overtime for
registered nurses and licensed practical nurses in health care
facilities; and providing for an effective date."
MOVED CSSB 12(L&C) OUT OF COMMITTEE
SENATE BILL NO. 126
"An Act amending the State Personnel Act to place in the exempt
service the chief economist and state comptroller in the
Department of Revenue and certain professional positions
concerning oil and gas within the Department of Natural
Resources; relating to reemployment of and benefits for or on
behalf of reemployed retired teachers and public employees by
providing for an effective date by amending the delayed
effective date for secs. 3, 5, 9, and 12, ch. 57, SLA 2001 and
sec. 19, ch. 50, SLA 2005; and providing for an effective date."
MOVED CSSB 126(STA) OUT OF COMMITTEE
HOUSE BILL NO. 93
"An Act relating to unwanted telephone solicitations on a
cellular or mobile telephone and making those calls to cellular
or mobile telephones registered with the national do not call
registry violations of the Alaska Unfair Trade Practices and
Consumer Protection Act."
MOVED HB 93 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 101(JUD)
"An Act exempting the full value of life insurance and annuity
contracts from levy to satisfy a debt, and amending the
description of earnings, income, cash, and other assets relating
to garnishment of life insurance proceeds payable upon the death
of an insured."
MOVED CSHB 101(JUD) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 102(JUD)
"An Act relating to the Uniform Commercial Code, to the general
provisions of the Uniform Commercial Code, to documents of title
under the Uniform Commercial Code, to the Uniform Electronic
Transactions Act, to lease-purchases of personal property, to
the contractual duty to act fairly and in good faith, and to
carrier, warehouse, and animal care liens; amending Rules 403
and 902, Alaska Rules of Evidence; and providing for an
effective date."
MOVED CSHB 101(JUD) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 12
SHORT TITLE: LIMIT OVERTIME FOR REGISTERED NURSES
SPONSOR(s): DAVIS
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) HSS, L&C, FIN
03/09/09 (S) HSS AT 1:30 PM BUTROVICH 205
03/09/09 (S) Heard & Held
03/09/09 (S) MINUTE(HSS)
03/25/09 (S) HSS AT 1:30 PM BUTROVICH 205
03/25/09 (S) Moved SB 12 Out of Committee
03/25/09 (S) MINUTE(HSS)
03/27/09 (S) HSS RPT 1DP 3NR
03/27/09 (S) DP: DAVIS
03/27/09 (S) NR: THOMAS, DYSON, PASKVAN
04/07/09 (S) L&C AT 1:30 PM BELTZ 211
04/07/09 (S) -- MEETING CANCELED --
04/09/09 (S) L&C AT 1:00 PM BELTZ 211
04/09/09 (S) Heard & Held
04/09/09 (S) MINUTE(L&C)
BILL: SB 126
SHORT TITLE: REEMPLOYMENT OF RETIREES; EXEMPT SERVICE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/27/09 (S) READ THE FIRST TIME - REFERRALS
02/27/09 (S) STA, L&C, FIN
03/24/09 (S) STA AT 9:00 AM BELTZ 211
03/24/09 (S) Heard & Held
03/24/09 (S) MINUTE(STA)
03/26/09 (S) STA AT 9:00 AM BELTZ 211
03/26/09 (S) Heard & Held
03/26/09 (S) MINUTE(STA)
03/31/09 (S) STA AT 9:00 AM BELTZ 211
03/31/09 (S) <Above Item Removed from Agenda>
03/31/09 (S) MINUTE(STA)
04/02/09 (S) STA AT 9:00 AM BELTZ 211
04/02/09 (S) Moved CSSB 126(STA) Out of Committee
04/02/09 (S) MINUTE(STA)
04/03/09 (S) STA RPT CS 5DP NEW TITLE
04/03/09 (S) DP: MENARD, KOOKESH, PASKVAN, FRENCH,
MEYER
04/07/09 (S) L&C AT 1:30 PM BELTZ 211
04/07/09 (S) -- MEETING CANCELED --
04/09/09 (S) L&C AT 1:00 PM BELTZ 211
04/09/09 (S) Scheduled But Not Heard
BILL: HB 93
SHORT TITLE: DO NOT CALL REGISTRY--MOBILE/CELL PHONES
SPONSOR(s): REPRESENTATIVE(s) CHENAULT
01/28/09 (H) READ THE FIRST TIME - REFERRALS
01/28/09 (H) L&C
02/16/09 (H) L&C RPT 5DP
02/16/09 (H) DP: LYNN, BUCH, NEUMAN, CHENAULT, OLSON
02/18/09 (H) TRANSMITTED TO (S)
02/18/09 (H) VERSION: HB 93
02/19/09 (S) READ THE FIRST TIME - REFERRALS
02/19/09 (S) L&C
BILL: HB 101
SHORT TITLE: EXEMPTIONS: LIFE INSURANCE; ANNUITIES
SPONSOR(s): REPRESENTATIVE(s) COGHILL
01/30/09 (H) READ THE FIRST TIME - REFERRALS
01/30/09 (H) L&C, JUD
02/20/09 (H) L&C RPT 3DP 3NR
02/20/09 (H) DP: LYNN, CHENAULT, COGHILL
02/20/09 (H) NR: BUCH, HOLMES, OLSON
03/23/09 (H) JUD RPT CS(JUD) NT 6DP
03/23/09 (H) DP: LYNN, GRUENBERG, COGHILL,
DAHLSTROM, GATTO, RAMRAS
04/03/09 (H) TRANSMITTED TO (S)
04/03/09 (H) VERSION: CSHB 101(JUD)
04/06/09 (S) READ THE FIRST TIME - REFERRALS
04/06/09 (S) L&C, JUD
BILL: HB 102
SHORT TITLE: UNIFORM COMMERCIAL CODE
SPONSOR(s): LABOR & COMMERCE
01/30/09 (H) READ THE FIRST TIME - REFERRALS
01/30/09 (H) L&C, JUD
02/16/09 (H) L&C RPT 5NR
02/16/09 (H) NR: LYNN, BUCH, NEUMAN, CHENAULT, OLSON
03/18/09 (H) JUD RPT CS(JUD) NT 3DP 4NR
03/18/09 (H) DP: GRUENBERG, HOLMES, RAMRAS
03/18/09 (H) NR: LYNN, COGHILL, GATTO, DAHLSTROM
03/23/09 (H) TRANSMITTED TO (S)
03/23/09 (H) VERSION: CSHB 102(JUD)
03/25/09 (S) READ THE FIRST TIME - REFERRALS
03/25/09 (S) L&C, JUD
WITNESS REGISTER
TOM OBERMEYER
Staff to Senator Davis
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on SB 12 for the sponsor.
TOM WRIGHT
Staff to Representative Chenault
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on HB 93 for the sponsor.
AMANDA MORTENSEN
Staff to Representative Coghill
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on HB 101 for the sponsor.
LINDA HULBERT
New York Life Insurance
POSITION STATEMENT: Supported HB 101.
DENNIS BAILEY, Legal Counsel
Legislative Legal and Research Service
Legislative Affairs Agency
POSITION STATEMENT: Answered questions on HB 101.
ALLISON LEFINE
Staff to Representative Gruenberg, sponsor of HB 102
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on HB 102 for the sponsor.
TERRY THURBON, Public Member
Alaska Uniform Law Commission
POSITION STATEMENT: Supported HB 102.
PROFESSOR BILL HENNINGS, Commissioner
Alabama Uniform Law Commission
POSITION STATEMENT: Answered questions on HB 102.
ACTION NARRATIVE
1:12:54 PM
CHAIR JOE PASKVAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:12 p.m. Present at the call to
order were Senators Bunde, Meyer, Thomas, Davis and Paskvan.
SB 12-LIMIT OVERTIME FOR REGISTERED NURSES
1:14:30 PM
CHAIR PASKVAN announced SB 12 to be up for consideration.
SENATOR THOMAS moved to adopt CSSB 12, labeled 26-LS0075\E, as
the working document. There were no objections and it was so
ordered.
TOM OBERMEYER, staff to Senator Davis, sponsor of SB 12,
explained that the CS makes two changes, both exceptions to the
overtime provisions of the bill. The first is on page 3, line 19
- page 4, line 3, that addresses the exception of the 16-hour
shifts at psychiatric residential treatment hospitals,
psychiatric treatment centers and secure residential psychiatric
treatment centers. This accommodates the modified Baylor Plan
that was described at the North Star Behavioral facilities. The
second exception is on page 5, line 31 - page 6, line 4, that is
new and includes provisions not applicable to nurses employed in
federal or tribal facilities. In doing this, the drafter also
deleted the word "federal" on page 6, lines 8 and 16, in the
definition of "health care facility" because the drafter felt it
would be better to have a separate provision exempting this
particular group rather than including it under the long-
enumerated exceptions on page 2.
SENATOR BUNDE asked why he felt the need to explicitly exclude
federal facilities. He thought federal law trumped state law in
any case.
MR. OBERMEYER answered that last year this question was brought
up by Native facilities, and he got opposing determinations. One
determined that federal law preempts state law and the other
side determined that since these facilities are licensed by the
state that the provisions would apply to these facilities.
Rather than get into an argument about it again this year, they
decided to exempt them. Many of these facilities in the rural
areas are already adequately run.
1:19:51 PM
SENATOR BUNDE asked if it wasn't because those nurses had
different work schedules and had the nurses do less overtime.
MR. OBERMEYER replied no.
SENATOR MEYER asked him to explain the amendment pertaining to
the Baylor Plan.
Mr. OBERMEYER went to page 3, line 19, that states that a nurse
who is employed at a psychiatric treatment hospital that treats
only adolescents and children, at residential psychiatric
treatment center under AS 18.07. and AS 47.12 and in a secure
residential psychiatric treatment center, if they voluntarily
work a 16-hour shift for the period between 5 on Friday and 8 on
Monday that immediately follows and receives pay and benefits
for that work or equal or greater than the pay or benefits that
nurse would receive for working 20 hours in the same position
and during that period does not work a 16-hour shift consecutive
with another shift of 8 hours or more without an intervening
break of 8 hours. This was originally a 12-hour weekend plan by
Baylor University and was changed to 16-hour shifts. These seem
like extremely long hours, but these facilities don't
necessarily require the acute care that would occur in many
other facilities that require surgery and that kind of thing.
1:21:54 PM
He said the Nurses Association supported this provision.
SENATOR MEYER asked why the exemption is limited to psychiatric
institutions. His concern is that this would prohibit other non-
psychiatric facilities like Providence from being able to have a
Baylor Plan.
MR. OBERMEYER replied that he didn't think this would prohibit
them from having a Baylor Plan; they already work three 12-
shifts that are not considered overtime as a 40-hour work week.
He said this exemption was designed for the North Star
facilities in Anchorage.
SENATOR MEYER said he still thinks it would keep any other non-
psychiatric hospitals from going to a 16-hour work day if they
so desire.
SENATOR DAVIS said this provision was in the bill before and was
accepted by all concerned including Providence.
1:25:43 PM
SENATOR THOMAS moved to report CSSB 12, version E, from
committee with individual recommendations and attached fiscal
note(s). There were no objections and CSSB 12(L&C) moved from
committee.
At ease from 1:26 p.m. to 1:28 p.m.
SB 126-REEMPLOYMENT OF RETIREES; EXEMPT SERVICE
1:28:34 PM
CHAIR PASKVAN announced SB 126 to be up for consideration; CSSB
126 (STA) was before the committee. Finding no one who wanted to
testify, he closed public testimony.
1:29:37 PM
SENATOR BUNDE moved to report CSSB 126(STA) from committee with
individual recommendations and attached fiscal note(s).
SENATOR MEYER objected for review of the major changes.
CHAIR PASKVAN explained that a number of categories were
eliminated and the waiting period was reduced from six months to
90 days.
SENATOR MEYER said the other change is moving the sunset from 4
years to 1 year.
CHAIR PASKVAN explained.
SENATOR MEYER removed his objection. Without further objections,
CSSB 126(STA) moved from committee.
At ease from 1:33 p.m. to 1:34 p.m.
HB 93-DO NOT CALL REGISTRY--MOBILE/CELL PHONES
1:34:48 PM
CHAIR PASKVAN announced HB 93 to be up for consideration.
TOM WRIGHT, staff to Representative Chenault, sponsor of HB 93,
said this adds mobile telephones to the definition of "telephone
solicitation" in AS 45.54.075(g). This adds cell and mobile
phones to the unlawful and unwanted telephone advertisements and
solicitations section. There is a national do not call registry
operated by the Federal Trade Commission since 2003; this
service allows a consumer to register their telephone, cell or
mobile phones to that list should a consume wish to limit
telemarketing calls. This bill makes statute compliant with
federal law. At this time cell phone numbers are not available
to the public, but several services, mostly in the Lower 48, are
putting a directory together for their own use. So the state is
trying to be proactive if that directory ever becomes public.
SENATOR THOMAS asked if he could put his home phone as well as
his cell phone on this registry.
MR. WRIGHT replied yes.
1:37:36 PM
CHAIR PASKVAN closed public testimony.
SENATOR THOMAS moved to report HB 93 from committee with
individual recommendations and attached fiscal note(s). There
were no objections and it was so ordered.
At ease from 1:3:8 p.m. to 1:40 p.m.
CSHB 101(JUD)-EXEMPTIONS: LIFE INSURANCE; ANNUITIES
1:40:17 PM
CHAIR PASKVAN announced CSHB 101(JUD) to be up for
consideration.
AMANDA MORTENSEN, staff to Representative Coghill, sponsor of HB
101, explained that it exempts the full value of life insurance
and annuities from being attached by creditors in the case of
liabilities. It would protect families and their ability to plan
for their future. For example, if person A were to hit person B
with a car, person B could sue for the assets of person A. This
bill would protect person A's life insurance and annuity
contracts so that their family could still survive on their own.
It does not prevent person B from being able to garnish person
A's other assets in order to fulfill the settlement. It also
protects the death benefit of a spouse or dependent of the
debtor in the case that the person is not yet deceased.
Currently retirement plans are creditor protected under federal
laws. This bill would help if an employee worked for an employer
who did not offer a retirement plan. The employee could use an
annuity as a retirement plan and provide themselves and their
families with better financial security. With the uncertainty of
the social security system, Alaskan families need to be able to
legitimately plan for their future. This bill falls under Title
38, the Alaska Exemptions Act; it then falls under section 15,
property exempt without limitation.
She explained that section 1 adds unmatured life insurance and
annuity contracts owned by the individual to the list of
property exempt without limitation. Section 2 removes the words
"or payable" in order to clarify a potential ambiguity regarding
trying to garnish a death benefit on an individual who has not
passed away yet. Section 3 is repealed because there is no
longer any reason to have a section dedicated to the exemption
of unmatured life insurance and annuity contracts since they now
fall under the category of "property exempt without limitation"
in AS 09.38.015. Section 4 is an applicability section that
seeks that this will only apply to a debt that is created on or
after the effective date of this act. As of May 2007, 10 states
exempt life insurance and annuities 100 percent from creditors.
SENATOR BUNDE asked if this would encourage people to be
irresponsible.
MS. MORTENSEN replied the intent here is not to allow people
hide money or to be deceitful. In Florida where life insurance
and annuities are protected, there have actually been court
cases brought against individuals who have been trying to hide
money or avoid paying and they have lost.
1:44:10 PM
SENATOR BUNDE asked if she had thought about limiting the
protection to $40,000 or $50,000 to provide some basic coverage
for survivors if someone has $2,000,000 in life insurance, for
instance.
MS. MORTENSEN replied they just trying to provide for Alaskan
families, not someone who is careless.
1:45:54 PM
LINDA HULBERT, said she has lived in Fairbanks for the last 40
years and has spent 20 years in adult education in employment
training. For the last 19 years she has been with New York Life
Insurance and supported HB 101. She helps families plan for the
future and it is becoming more important given today's
marketplace and what is happening. Many employers have stopped
their contributions to 401Ks and defined benefit plans are not
readily available any more. People have to assume individual
responsibility for their retirements; they also need to assume
responsibility to plan for their families so if something
unfortunate happens to them they have the opportunity to
continue having a life; life insurance is one of the ways to do
it and annuities is another.
Ten other states make this planning opportunity available. In
Alaska it can be used as a planning tool, but it has many
limitations.
Regarding Senator Bunde's concern, Ms. Hulbert said, most people
who have multimillion-dollar life insurance policies in Alaska
have term policies that don't have a cash value. People who
normally have large insurance policies with cash value also have
numerous other assets. The asset in life insurance is primarily
aimed at protecting their family and children for the future.
So, it is very unlikely to play a part in the situation.
If anyone would use a life insurance policy or annuity as a
fraudulent transaction to avoid an obligation, it would be void,
and they would not have creditor protection. Also an individual
can collaterally assign a life insurance policy, and then that
would make the cash value and death benefit available to the
creditor. In order to help people plan, she feels this is sound
public policy. People with a lot of money have other options for
protecting it like setting up a trust.
SENATOR BUNDE asked if she was referring to someone who has a
bad debt and someone is trying to collect from their whole life
and any cash value that might have accrued before they passed
away.
MS. HULBERT answered yes. A creditor could attach a death
benefit.
SENATOR BUNDE asked how often someone has had the cash value of
their life insurance attached to pay a bad debt.
MS. HULBERT replied that she had no personal knowledge of it
happening, but it could. It's especially important in retirement
situations where a person retired from a union and they get a
life insurance policy to protect their spouse and maximize their
pension. It would be disastrous for the spouse to lose that life
insurance, because their spouse then loses his retirement.
1:51:35 PM
DENNIS BAILEY, Legal Counsel, Legislative Legal and Research
Service, Legislative Affairs Agency, said he had no comments and
was available for questions.
1:52:20 PM
CHAIR PASKVAN closed public testimony.
SENATOR BUNDE said this seems like a solution in search of a
problem, and that he harbors the fear that people don't need
this protection at this point.
SENATOR MEYER said he likes the bill, but he didn't know why it
was needed. Can hospitals collect their costs from the life
insurance policy?
1:54:15 PM
MS. HULBERT responded that most life insurance policies in
Alaska have a "living benefits rider." If an individual who is
terminally ill adds a living benefits rider, they have access to
the death benefits of their policy early if, for instance,
someone needed medical care at the end of life. It depends on
who the beneficiary is. If somebody does die, frequently the
beneficiary is the estate of the insured, then the money would
go into the estate and be subject to the claims of any creditors
to the estate. If the beneficiary were an individual, the
benefits of that policy would be after submission of a death
certificate and would go directly to that spouse and children.
If estate taxes were due, those heirs could be requested to
utilize that policy to pay for estate taxes, but in general, the
benefit of the policy is paid directly from the insurance
company to the main beneficiary. That is why it's so important
to check your named beneficiaries occasionally.
CHAIR PASKVAN recapped that Ms. Hulbert had pointed out the
benefit of naming a specific person as opposed to the estate, so
it would pass outside of probate.
SENATOR MEYER said putting it in a trust could run into
problems, too.
1:57:24 PM
SENATOR THOMAS asked Ms. Hulbert if someone had an accident and
rushed out to buy a policy, would they be protected by this
language. Would they be seen as trying to hide assets?
MS. HULBERT replied this can't be used to fraudulently hide
money or fraudulently transfer it. Any knowledge or indication
there was a creditor issue, would void any transfer. This only
protects legitimate planning processes of people who set things
in motion to protect their families and their retirement.
1:58:30 PM
SENATOR BUNDE said he is still concerned and went back to
Senator Meyer's example of someone who racked up a great deal of
medical expense and passed away - this bill would not allow the
cost of that medical care to be attached from their life
insurance.
1:59:18 PM
MS. HULBERT responded that this bill doesn't affect access to
the death benefit. If somebody dies right now and their named
beneficiary is alive, the money goes directly to that named
beneficiary.
SENATOR BUNDE asked if this is trying to protect the cash value
of a policy after someone passes away.
MS. HULBERT replied that is primarily what it does. Because if
you take away the cash value, the death benefit no longer
exists.
2:01:04 PM
MR. BAILEY explained that the bill addresses the unmatured value
of the life insurance or annuity contract. So it is correct that
it does not affect the death benefit. However, there are a
variety of situations where the death benefit may go to someone
other than the estate and would not be available for collection
by an injured person in an accident.
2:02:07 PM
SENATOR MEYER moved to report CSHB 101(JUD) from committee with
individual recommendations and attached fiscal note(s). There
were no objections and it was so ordered.
At ease from 2:02 p.m. to 2:04 p.m.
CSHB 102(JUD)-UNIFORM COMMERCIAL CODE
2:04:18 PM
CHAIR PASKVAN announced CSHB 102(JUD) to be up for
consideration.
ALLISON LEFINE, staff to Representative Gruenberg, sponsor of HB
102, said it amends Alaska statutes to reflect the recent
revisions to Articles 1 and 7 of the Uniform Commercial Code
(UCC). The bill has two non-UCC provisions as well.
TERRY THURBON, Public Member, Alaska Uniform Law Commission,
said updating the UCC is a priority this year in large part
because it is cleanup legislation to get Alaska up to date with
electronic documents of title with respect to bills of lading
and warehouse receipts for the transportation industry. It
updates a few other general provisions as well.
She said it seems like an overwhelmingly large bill at 60-plus
pages, but the Uniform Commercial Code parts, sections 8 and 4,
are the only ones she is speaking to. Those provisions are by
and large changes in terminology to make the code consistent
with a handful of substantive changes that are made. It is
divided up into two parts, Article 1, which is general
provisions, and covers things like definitions and obligations
of good faith, and then Article 7, which has the warehouse
receipts, bills of lading and documents of title provisions.
2:08:34 PM
MS. THURBON said the revisions in general deal almost entirely
with bringing us into the electronic age for shipping and
transportation, and how title is transferred amongst parties
(Article 7). Some of those provisions were originally developed
in the early 1900s and the last update was in 1951. In 2003 the
Uniform Law Commission came up with these revisions. Thirty-two
states have already adopted these provisions and three other
states besides Alaska have introduced legislation this year.
The general provisions starting in section 8 of the bill
regarding Article 1 are peppered throughout Title 45 and are
mainly conforming terminology and amendments, but there are
about half dozen substantively important things those do to the
UCC.
MS. THURBON said some of the changes clarified scope of coverage
to make it clear that these provisions are applicable only to
UCC-covered transactions. The statute of frauds requirement
which governs when an agreement has to be in writing was a
little fuzzy and appeared to apply to transactions outside of
the UCC; so that was fixed. The rules on choice of law were
clarified so that the parties in agreement can choose the law of
whichever jurisdiction they want to apply - with some
limitations meant to protect consumers so that they can have the
protection of their own state's laws.
2:12:13 PM
Another substantive change clarified the definition of "good
faith" in the context of UCC to mean honesty and fact and the
observance of reasonable commercial standards for fair dealing.
It clarifies use of evidence of course of performance of a
contractual arrangement in addition to the uses of trade and of
dealings. The bottom line is that these changes bring Alaska
into the fold of the critical mass of nearly all of the states
that are using the same version of the UCC in these two areas.
2:13:26 PM
PROFESSOR BILL HENNINGS, Alabama Uniform Law Commissioner, said
he was executive director of the Uniform Law Commission from
2001-2007, which is when these two acts were finally produced.
He teaches in the area of the UCC and works with these
provisions every day.
PROFESSOR HENNINGS said that over the last 20 years, the UCC has
been updated to accommodate electronic transactions. Articles 1
and 7 were the last to be revised, and they found industry was
already far ahead of them in terms of using electronic
documents, but industry wanted legal provisions that would put
them on solid ground to make certain their documents were
entirely effective. He said that Article 7 had not been
thoroughly revised, but the electronic documents sections were
dealt with almost exclusively.
2:16:24 PM
Article 1 is general provisions applicable to all the other
articles, Professor Hennings explained. After 20 years of
revisions there was sort of a disconnect between the other
articles mostly in terms of definitions. So the revision of
Article 1 is designed to clean everything up and pull the UCC
together.
2:17:16 PM
SENATOR THOMAS said one area talks about proceeds from goods and
possessions being sold. Does someone determine the value of
those goods so that if $1,000 is owed and the carrier decides to
dispose of $10,000 worth of furniture just to get their $1,000
is there some claim that causes it to be a fair disposal?
PROFESSOR HENNINGS replied that no specific procedure is set up
requiring commercially reasonable sales like those in Article 7
foreclosures, but the general standards of the UCC, which are
good faith and commercial reasonableness are applied. Good faith
is honesty; and commercial reasonableness means that you have to
comport with standards of fairness that are consistent with
other similar entities would do in the commercial world. He has
no doubt that a court could regulate that kind of conduct and
treat a sale for a ridiculously small amount as something in the
nature of a conversion. However, there is no broad structure for
that in Article 7, unless he has forgotten it.
2:19:58 PM
CHAIR PASKVAN closed public testimony. He added that bringing
st
Alaska up to the 21 Century is a good thing.
SENATOR THOMAS moved to report CSHB 102(JUD), version S, from
committee with individual recommendations and attached fiscal
note(s). There were no objections and it was so ordered.
At ease at 2:21 p.m.
2:21:32 PM
Finding no further business to come before the committee, Chair
Paskvan adjourned the meeting at 2:21 p.m..
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