Legislature(2007 - 2008)BELTZ 211

05/12/2007 01:00 PM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 151 INDEMNITY CLAUSE IN PUBLIC CONTRACTS TELECONFERENCED
Moved CSHB 151(JUD) Out of Committee
+ HJR 22 DENOUNCE SALE OF "RAPIST" DOLL TELECONFERENCED
Moved SCS CSHJR 22(STA) Out of Committee
+ HB 45 STATE VETERANS' CEMETERY & FUND TELECONFERENCED
Moved CSHB 45(MLV) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 186 SPORT FISHING GUIDE RECORDS
Waived Out of Committee
Uniform Rule 23 Waived
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                          May 12, 2007                                                                                          
                           01:12 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator Gary Stevens, Vice Chair                                                                                                
Senator Hollis French                                                                                                           
Senator Lyda Green                                                                                                              
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 151(JUD)                                                                                                  
"An Act requiring an indemnification,  defense, and hold harmless                                                               
provision    in   construction-related    professional   services                                                               
contracts    of    state   agencies,    quasi-public    agencies,                                                               
municipalities, and political subdivisions."                                                                                    
     MOVED CSHB 151(JUD) OUT OF COMMITTEE                                                                                       
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 22(RLS)                                                                                       
Denouncing the National  Entertainment Collectibles Association's                                                               
production of the Rapist No. 1 collectible doll.                                                                                
     MOVED SCS CSHJR 22(STA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 45(MLV)                                                                                                   
"An  Act authorizing  the Department  of  Military and  Veterans'                                                               
Affairs to  establish and  maintain Alaska  veterans' cemeteries;                                                               
and  establishing  the  Alaska veterans'  cemetery  fund  in  the                                                               
general fund."                                                                                                                  
     MOVED CSHB 45(MLV) OUT OF COMMITTEE                                                                                        
                                                                                                                                
HOUSE BILL NO. 186                                                                                                              
"An  Act  relating  to  sharing  with  certain  federal  agencies                                                               
records required of sport fishing guides."                                                                                      
     WAIVED OUT OF COMMITTEE                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 151                                                                                                                  
SHORT TITLE: INDEMNITY CLAUSE IN PUBLIC CONTRACTS                                                                               
SPONSOR(S): REPRESENTATIVE(S) JOHNSON BY REQUEST                                                                                
                                                                                                                                
02/22/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/07       (H)       STA, JUD                                                                                               
03/20/07       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/20/07       (H)       Heard & Held                                                                                           
03/20/07       (H)       MINUTE(STA)                                                                                            
03/24/07       (H)       STA AT 10:00 AM CAPITOL 106                                                                            
03/24/07       (H)       Moved CSHB 151(STA) Out of Committee                                                                   
03/24/07       (H)       MINUTE(STA)                                                                                            
03/26/07       (H)       STA RPT CS(STA) NT 6DP                                                                                 
03/26/07       (H)       DP: JOHANSEN, JOHNSON, COGHILL, DOLL,                                                                  
                        GRUENBERG, LYNN                                                                                         
04/02/07       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/02/07       (H)       Heard & Held                                                                                           
04/02/07       (H)       MINUTE(JUD)                                                                                            
04/30/07       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/30/07       (H)       Moved CSHB 151(JUD) Out of Committee                                                                   
04/30/07       (H)       MINUTE(JUD)                                                                                            
05/01/07       (H)       JUD RPT CS(JUD) NT 3DP 4NR                                                                             
05/01/07       (H)       DP: GRUENBERG, LYNN, RAMRAS                                                                            
05/01/07       (H)       NR: COGHILL, DAHLSTROM, HOLMES, SAMUELS                                                                
05/09/07       (H)       TRANSMITTED TO (S)                                                                                     
05/09/07       (H)       VERSION: CSHB 151(JUD)                                                                                 
05/09/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/09/07       (S)       STA, JUD                                                                                               
05/12/07       (S)       STA AT 1:00 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HJR 22                                                                                                                  
SHORT TITLE: DENOUNCE SALE OF "RAPIST" DOLL                                                                                     
SPONSOR(S): REPRESENTATIVE(S) FAIRCLOUGH                                                                                        
                                                                                                                                
04/26/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/26/07       (H)       STA                                                                                                    
05/01/07       (H)       STA RPT 7DP                                                                                            
05/01/07       (H)       DP:     JOHNSON,    JOHANSEN,     ROSES,                                                               
                         GRUENBERG, COGHILL, DOLL, LYNN                                                                         
05/01/07       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
05/01/07       (H)       Moved Out of Committee                                                                                 
05/01/07       (H)       MINUTE(STA)                                                                                            
05/07/07       (H)       RLS AT 5:00 PM CAPITOL 106                                                                             
05/07/07       (H)       Moved CSHJR 22(RLS) Out of Committee                                                                   
05/07/07       (H)       MINUTE(RLS)                                                                                            
05/08/07       (H)       RLS RPT CS(RLS) 4DP                                                                                    
05/08/07       (H)       DP:   FAIRCLOUGH,    SAMUELS,   JOHNSON,                                                               
                         COGHILL                                                                                                
05/08/07       (H)       TRANSMITTED TO (S)                                                                                     
05/08/07       (H)       VERSION: CSHJR 22(RLS)                                                                                 
05/09/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/09/07       (S)       STA                                                                                                    
05/12/07       (S)       STA AT 1:00 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HB  45                                                                                                                  
SHORT TITLE: STATE VETERANS' CEMETERY & FUND                                                                                    
SPONSOR(S): REPRESENTATIVE(S) GUTTENBERG, DOLL                                                                                  
                                                                                                                                
01/16/07       (H)       PREFILE RELEASED 1/5/07                                                                                

01/16/07 (H) READ THE FIRST TIME - REFERRALS

01/16/07 (H) MLV, STA, FIN 02/13/07 (H) MLV AT 1:00 PM CAPITOL 124 02/13/07 (H) Heard & Held 02/13/07 (H) MINUTE(MLV) 02/20/07 (H) MLV AT 1:00 PM CAPITOL 124 02/20/07 (H) -- Meeting Canceled -- 02/22/07 (H) MLV AT 1:00 PM CAPITOL 124 02/22/07 (H) Moved CSHB 45(MLV) Out of Committee 02/22/07 (H) MINUTE(MLV) 02/26/07 (H) MLV RPT CS(MLV) 5DP 02/26/07 (H) DP: LEDOUX, KAWASAKI, RAMRAS, BUCH, ROSES 04/03/07 (H) STA RPT CS(MLV) 6DP 04/03/07 (H) DP: JOHNSON, JOHANSEN, ROSES, GRUENBERG, DOLL, LYNN 04/03/07 (H) STA AT 8:00 AM CAPITOL 106 04/03/07 (H) Moved CSHB 45(MLV) Out of Committee 04/03/07 (H) MINUTE(STA) 04/18/07 (H) FIN AT 1:30 PM HOUSE FINANCE 519 04/18/07 (H) <Bill Hearing Postponed to 4/20/07> 04/20/07 (H) FIN AT 1:30 PM HOUSE FINANCE 519 04/20/07 (H) Scheduled But Not Heard 04/23/07 (H) FIN AT 1:30 PM HOUSE FINANCE 519 04/23/07 (H) Moved CSHB 45(MLV) Out of Committee 04/23/07 (H) MINUTE(FIN) 04/24/07 (H) FIN RPT CS(MLV) 9DP 04/24/07 (H) DP: GARA, THOMAS, CRAWFORD, STOLTZE, JOULE, KELLY, HAWKER, MEYER, CHENAULT 05/04/07 (H) TRANSMITTED TO (S) 05/04/07 (H) VERSION: CSHB 45(MLV) 05/07/07 (S) READ THE FIRST TIME - REFERRALS 05/07/07 (S) STA, FIN 05/12/07 (S) STA AT 1:00 PM BELTZ 211 WITNESS REGISTER TREVOR FULTON, Staff to Representative Craig Johnson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented CSHB 151(JUD). DALE NELSON, Chair Legislative Liaison Committee Alaska Professional Design Council Anchorage, Alaska POSITION STATEMENT: Supports CSHB 151(JUD). BRAD THOMPSON, Director Division of Risk Management Department of Administration Juneau, Alaska POSITION STATEMENT: Supports CSHB 151(JUD). REPRESENTATIVE ANNA FAIRCLOUGH Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented CSHJR 22(RLS). REPRESENTATIVE DAVID GUTTENBERG Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented CSHB 45(MLV). ACTION NARRATIVE CHAIR LESIL MCGUIRE called the Senate State Affairs Standing Committee meeting to order at 1:12:46 PM. Senators McGuire, Green, and Stevens were present at the call to order. Senators Bunde and French arrived soon thereafter. CSHB 151(JUD) - INDEMNITY CLAUSE IN PUBLIC CONTRACTS CHAIR MCGUIRE announced the consideration of HB 151. [Before the committee was CSHB 151(JUD).] 1:13:21 PM TREVOR FULTON, Staff, to Representative Craig Johnson bill sponsor, introduced the bill to the committee. The bill would require uniform indemnification and hold harmless provisions in professional services contracts for all public agencies within the State of Alaska. The bill would close a loophole in contracts that has caused considerable problems for companies in the design profession. The loophole allows public agencies to write provisions allowing them to pass responsibility for negligence onto the consultant company they are contracting with. The bill language mirrors Department of Transportation and Public Facilities (DOTPF) contract language that has been in use for years. He said the majority of public agencies use the language contained in the bill, but this would make it standard statewide. SENATOR STEVENS asked why the bill should be passed. MR. FULTON replied that the bill would ensure fair business practices between the public and private sector. 1:16:25 PM DALE NELSON, Chair, Legislative Liaison Committee, Alaska Professional Design Council, Anchorage, said the purpose of the bill is to standardize indemnification requirements through all public agencies in Alaska, making each party responsible for their own liabilities, errors, and omissions. 1:19:37 PM BRAD THOMPSON, Director, Division of Risk Management, Department of Administration, Juneau, testified the reason to pass this bill is because professional design engineers or architects obtaining an errors and omissions (EO) policy have no contractual liability protection within an insurance policy. DOT contracts, from which the language in the bill was drawn, have always contained comparative fault allocation in the indemnity language. Some public entities go beyond the comparative fault allocation in their contracts which creates an uninsurable risk for the independent design professional. This legislation would obligate all public agencies as defined in the bill, to use a comparative fault allocation within their indemnity language when they contract with an independent professional. SENATOR STEVENS asked what happens if the bill does not pass. MR. THOMPSON answered there are public agencies that have entered stronger indemnity terms in contracts. An independent professional signing such a document to obtain the work is obligating themselves beyond their insurability. There is no effect on the State of Alaska. 1:22:21 PM SENATOR FRENCH said there is an impressive number of letters of support. He asked who opposes the bill. MR. FULTON answered that there was little opposition as the bill made its way through house committee reviews and the few disagreements that surfaced were resolved. SENATOR FRENCH asked if there was opposition from labor groups. MR. FULTON answered there was none that he knew of. 1:24:16 PM CHAIR MCGUIRE closed public testimony on HB 151. 1:25:36 PM SENATOR GREEN moved to report HB 151 from committee with individual recommendations and accompanying zero fiscal note. Hearing no objections, CSHB 151(JUD) moved from the Senate State Affairs committee. CSHJR 22(RLS) - DENOUNCE SALE OF "RAPIST" DOLL 1:26:02 PM CHAIR MCGUIRE announced consideration of HJR 22. [Before the committee was CSHJR 22(RLS).] SENATOR GREEN moved to adopt the proposed Senate committee substitute (SCS) to HJR 22, labeled 25-LS0891\C, Bullard, as the working document of the committee. There being no objection, Version C was before the committee. REPRESENTATIVE ANNA FAIRCLOUGH, Alaska State Legislature, bill sponsor, introduced the HJR 22 to the committee which denounces the National Entertainment Collectibles Association production and sale of the "Rapist No. 1" doll. She said rape is a serious crime that destroys families and individuals and dehumanizes victims. Becoming a rape victim is 2.2 times more likely in Alaska than in other states and 25 percent more likely than the average in the entire nation. She is not trying to ban the sale of a product or limit free speech, but is asking Alaskans to choose against purchasing this particularly inappropriate doll. 1:28:56 PM CHAIR MCGUIRE said she personally appreciates this effort and believes policy makers must be responsive to messages such as this being communicated, especially in a state that has such a considerable problem with rape. Free speech is important, but there is a point in a child's life where parents need to pay attention to the kind of toys available to their children. CHAIR MCGUIRE closed public testimony on HJR 22. 1:30:35 PM SENATOR GREEN moved to report, HJR 22, from committee with individual recommendations and accompanying zero fiscal notes. Hearing no objections, SCS CSHJR 22(STA) moved from the Senate State Affairs Committee. CSHB 45(MLV) - STATE VETERANS' CEMETERY & FUND 1:31:07 PM CHAIR MCGUIRE announced consideration of HB 45. [Before the committee was CSHB 45(MLV).] REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature, bill co-sponsor, introduced HB 45 to the committee. This bill establishes a process that allows any qualifying Alaskan community to apply to the Veterans' Administration (VA) to build a local national veterans' cemetery. Currently there are two national cemeteries in the state, one on Fort Richardson and one in Sitka. He said if a veteran is buried at either of those locations it can be difficult for family members to visit if they live far from the sites. All criteria in the bill follow VA specifications for selection and construction. The VA pays for construction of the cemetery and a burial allocation for each interment. He said the bill simply sets up the process to allow the state to apply and allow veterans to be buried close to their homes and families. 1:33:26 PM CHAIR MCGUIRE closed public testimony on HB 45. SENATOR BUNDE asked if the bill would place a financial obligation on the state. REPRESENTATIVE GUTTENBERG answered construction costs would be covered by the federal government. There could or would be a maintenance cost, but the total cost is unknown without specific location information. SENATOR BUNDE asked if there would be any operating expenses. REPRESENTATIVE GUTTENBERG answered yes; a ballpark operating amount might be $80,000 per year. If the state applied and was successful, the earliest a cemetery could be constructed is 2011 or 2012. 1:35:05 PM CHAIR MCGUIRE noted this is an important issue to some veterans, and the bill will go to Finance Committee for cost discussions. SENATOR FRENCH moved to report CSHB 45(MLV) from committee with individual recommendations and attached fiscal note. Hearing no objections, the motion carried. CHAIR MCGUIRE adjourned the meeting at 1:36:01 PM.

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