HOUSE FINANCE COMMITTEE March 9, 1994 1:30 P.M. TAPE HFC 94 - 53, Side 2, #000 - end. TAPE HFC 94 - 54, Side 1, #000 - end. TAPE HFC 94 - 54, Side 2, #000 - #515. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Foster Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Hoffman was not present for the meeting. ALSO PRESENT John Jemewouk, Executive Director of Western Alaska Fisheries Development Association, Elim; Nels Anderson, Executive Director, BBEDC, Dillingham; Ragnar Alstrom, YDFDA, Azakanuk; Fred Phillip, CVFC, Kwigillingok; Mark Snigaroit, Chairman, APICDA, Juneau; Agafon Knukoff, Jr., President, CBSFA, St. Paul Island; Josh Fink, Staff, Senator Tim Kelly; Patti Rizer, (testified via teleconference), Anchorage; Bruce Tizer, (testified via teleconference), Anchorage; Fred Rogers, (testified via teleconference), Squaw Valley, Idaho; Robert Moss, (testified via teleconference), Homer; Chris Moss, (testified via teleconference), Homer; David Wilson, (testified via teleconference), Anchorage; Steve Lear, (testified via teleconference), Anchorage; Mark Bond, (testified via teleconference), Attorney for ALYESKA, Squaw Valley, Idaho; John Bevis, (testified via teleconference), Anchorage; Diana Woods, (testified via teleconference), Anchorage; Mike Stone, (testified via teleconference), Anchorage; Gary Medenvil, Eaglecrest, Juneau; Phil Thingstad, (testified via teleconference), Anchorage; Bob Day, (testified via teleconference), Anchorage; Mano Frey, (testified via teleconference), Anchorage; Terry Kadel, (testified via teleconference), Anchorage; David Sams, (testified via teleconference), Challenge Alaska Program, Anchorage; Dennis Mince, Attorney, Anchorage. 1 SUMMARY COMMUNITY DEVELOPMENT QUOTA PROGRAM (CDQ) PRESENTATION SB 44 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. SB 44 was HELD in Committee for further discussion. COMMUNITY DEVELOPMENT QUOTA PROGRAM (CDQ) PRESENTATION JOHN JEMEWOUK, EXECUTIVE DIRECTOR, WESTERN ALASKA FISHERIES DEVELOPMENT ASSOCIATION, ELIM, explained that applications for the CDQ's are based on 7.5% of the biologically harvestable Bering Sea pollock resource and are submitted on a biennial basis to the Governor of Alaska. The communities eligible to receive quotas must be located on or within fifty miles of the Bering Sea coast from the Bering Strait to the western most of the Aleutian Islands or located on islands within the Bering Sea. Mr. Jemewouk added that CDQ's proceeds must be invested in fishery development programs and ventures that create jobs and promote stable local economies in western Alaska. He provided the Committee with a packet of information regarding the CDQ program. [Copy on file]. NELS ANDERSON, EXECUTIVE DIRECTOR, BRISTOL BAY ECONOMIC DEVELOPMENT CORPORATION (BBEDC), DILLINGHAM, explained that BBEDC received 20 percent of the available CDQ pollock. BBEDC's corporate fishing partner is Oceantrawl Inc., an Alaska corporation operating three factory trawlers. BBEDC plans to: * Implement a plan consisting of employment training programs and small business development program, grants for value-added processing and marketing. * Establish a Scholarship Endowment Fund for students to attend college. * Set up a reserve to provide matching funds for infrastructure construction, and financing for the acquisition of Individual Fishing Quotas (IFQ). * Employ sixty people year round. RAGNAR ALSTROM, YUKON DELTA FISHERIES DEVELOPMENT ASSOCIATION (YDFDA), ALAKANUK, spoke for the Yukon Delta communities stating that his area received five percent of 2 the available CDQ's. YDFDA's corporate fishing partner is Golden Alaska Seafoods. YDFDA plans to: * Establish a training program for up to 258 residents by 1995. * Develop a fleet of small catcher vessels designed to operate in local longline and/or pot fisheries. * Set up a fund for purchasing salmon limited entry permits. * Explore halibut and cod fisheries in the upper Bering Sea. * Employ 50 people in the CDQ operations by 1995. FRED PHILLIP, COASTAL VILLAGES FISHING COOPERATIVE (CVFC), KWIGILLINGOK, stated that CVFC consists of the Yukon- Kuskokwim Delta communities and that they received 27 percent of the available pollock CDQ. The corporate partner for CVFC is Golden Age Fisheries. CVFC plans to: * Purchase 50 percent equity in the 197 ft. factory trawler Brons Point with the long-term goal of owning, managing, and operating a fleet of at-sea processing and harvesting vessels. * Establish a "Salmon Roe University" to train residents of the region to be salmon roe technicians. * Purchase or construct a salmon processor to operate in the lower Kuskokwim River. * Train individuals from CVFC members villages to work at all levels of the ground fish industry. MARK SNIGAROIT, CHAIRMAN, ALEUTIAN PRIBILOF ISLAND COMMUNITY DEVELOPMENT ASSOCIATION(APICDA), JUNEAU, explained that APICDAA's corporate partners in harvesting the quota are Trident Seafoods Corporation, one of Alaska's largest shore based seafood processing companies, and Starbound Partnership, operator of a factory trawler. APICDA received 18 percent of the pollock reserve set aside for the CDQ's. The goals for APICDA are: * Establish a comprehensive vocational education, job training and employment program. * Establish a higher education endowment fund for community residents who wish to purse university 3 degrees. * Participate in funding for completion of the Zapadni Bay Harbor on St. George Island. * Complete engineering designs for a dock in Nelson Lagoon. * Work with the False Pass Tribal Council to fund the construction of a gear storage warehouse in False Pass. AGAFON KNUKOFF, JR., PRESIDENT, EXECUTIVE DIRECTOR, CENTRAL BERING SEA FISHERMEN'S ASSOCIATION (CBSFA), ST. PAUL ISLAND, noted that he represented the fishing community of St. Paul in the Pribilof Islands. CBSFA received 10 percent of the Bering Sea CDQ pollack. CBSFA corporate fishing partner is American Seafoods Company, Inc. CBSFA plans to: * Establish a boat loan program for the purchase and construction of vessels 32' to 125' in length, and that are capable of participating in the multi species fisheries of the Bering Sea. * Set aside funds for infrastructure development on St. Paul Island. * Employment goal: 20-25 people in the CDQ operation. Mr. Jemewouk summarized that the program has given western Alaska villages in western Alaska hope particularly for young adults to become productive members of society. He indicated his concern with the sunset clause to the program dated December, 1995. (Tape Change, HFC 94-54, Side 1). SENATE BILL 44 "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." JOSH FINK, STAFF TO SENATOR TIM KELLY, provided a legislation overview. He stated that the bill would attempt to strike a balance between protecting skiers and ski resort operators by clearly defining the inherent dangers and risks of skiing assumed by the skier, as well as the duties and responsibilities the ski resort operator has to the skiing consumer. 4 He continued that while SB 44 would remove ski resort operators from liability for injuries caused solely by the inherent risks and dangers of skiing, it would not absolve ski operators from negligence or civil liability for violations of provisions outlined in the legislation. PATTI RIZER, (TESTIFIED VIA TELECONFERENCE), PARENT, ANCHORAGE, testified against the legislation for the safety of Alaska's children. She noted that there currently is an inherent risk law in place in the state. Recently, that law was interpreted by the Supreme Court stating that a land owner must act as a responsible land owner and maintain the ski property in a reasonably safe condition by common law duty. She noted her concern with the legislation in determining what would be a "reasonable" risk and responsibilities of the skier. Ms. Rizer added that given the amount of money a person who skies pays at local ski areas, they should be able to assume that there ski operators are acting responsible. She thought the legislation would allow ski resorts to make money while continuing to hire unqualified personnel. BRUCE RIZER, (TESTIFIED VIA TELECONFERENCE), PARENT, ANCHORAGE, testified in opposition to SB 44 providing a brief history of the legislation. He stated that the legislation was introduced shortly after the death of his son at the Alyeska Ski Resort. He thought that the legislation was an attempt to evade the Hiibschamn case, which defines "reasonable" responsibility of ski resort operators, handed down by the Supreme Court. He commented that the legislation would alleviate "shared responsibility" from ski resort operators. FRED ROGERS, (TESTIFIED VIA TELECONFERENCE), DEVELOPMENT COMPANY, SQUAW VALLEY, IDAHO, spoke in support of the legislation. He point out that the legislation would define the liability between the skier and the ski area operators. The information is essential for insurance companies for future economic development projects. ROBERT MOSS, (TESTIFIED VIA TELECONFERENCE), KACHEMAK SKI CLUB, HOMER, testified in support of SB 44 indicating that it would address liability insurance issues. CHRIS MOSS, (TESTIFIED VIA TELECONFERENCE), HOMER, testified in support of the legislation. He stated that the bill adequately addresses the "responsibilities" of the skier and the ski area. DAVID WILSON, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, 5 testified in support of the legislation and stated that it would encourage economic activity in the State by addressing the strong inherent risk law. He added, SB 44 could eliminate unnecessary litigation. Representative Navarre asked Mr. Wilson to provide the Committee with information in which he indicated the statistics of trial attorneys increasing the number of lawsuits against ski areas. STEVE LEAR, (TESTIFIED VIA TELECONFERENCE), PROFESSIONAL SKI INSTRUCTORS (PSI), ANCHORAGE, spoke in support of SB 44. He stated the legislation supports the responsibility of the users and operators of ski areas and also encourages them to share in the risks and hazards of skiing. MARK BOND, (TESTIFIED VIA TELECONFERENCE), GENERAL COUNSEL FOR THE NATIONAL SKI PATROL, ATTORNEY FOR ALYESKA, SQUAW VALLEY, IDAHO, spoke in support of the legislation. He pointed out that injury rates from skiing have declined over the year due to improved operator safety practices. He pointed out that the expenses of litigation, stating that the way to avoid these costs would be for the Legislature to define the "inherent risks" of skiing and note that ski area's are not liable for them. He pointed out that in Colorado, similar legislation has been effectively implemented. Representative Navarre asked if there has been a growth in claim suits against Alyeska and skiers. Mr. Bond stated that there has been an increase. Representative Martin asked how the legislation would help the skier. Mr. Bond replied that the law would require that a list of the inherent risks and dangers be posted. (Tape Change, HFC 94-54, Side 2). Representative Brown asked if equal protection problems would be increased due to specification of an enforcement mechanism on state lands. Mr. Bond listed the state ski resorts indicating who owned the land which they were located. He added that the Department of Natural Resources (DNR) has requested this legislation and that the Forest Service has the authority to site people for violations as specified in statute. DNR would like to have the same authority. JOHN BEVIS, (TESTIFIED VIA TELECONFERENCE), CHALLENGE ALASKA, ANCHORAGE, spoke in support of the proposed legislation stating that the law would define the responsibility of the skier. 6 DIANA WOODS, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in favor of SB 44. She stated that the legislation would protect the interest of skiers and ski operators and added that it could control the cost of skiing due to reduced insurance claims. MIKE STONE, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE ECONOMIC DEVELOPMENT CORPORATION, ANCHORAGE, spoke in support of SB 44, stating that it would be critical legislation for Alaska in order to be competitive with other ski destinations in the United States and Canada. GARY MEDENVIL, BUSINESS MANAGER, EAGLECREST, JUNEAU, urged the Committee to support the legislation adding that the bill addresses the needs of small ski areas. Without the legislation, city owned ski areas such as Eaglecrest could suffer the same fate as the Valdez resort resulting from the Hiibschamn versus Valdez court case. Representative Therriault commented that the bill would provide uniformity of regulations to all state ski areas. PHIL THINGSTAD, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in favor of SB 44. He added, that the legislation would define the legal parameters for skiers and ski areas by encouraging future development and goal setting. BOB DAY, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in support of the proposed legislation adding that he favors any attempt to define and control the costs of skiing. He pointed out that the bill is fair and would define the responsibility of the operator and the skier. MANO FREY, (TESTIFIED VIA TELECONFERENCE), PRESIDENT, AFL- CIO, ANCHORAGE, stated that the AFL-CIO supports the legislation given the balance it has created for ski operators to be liable for any negligent acts and at the same time defining uniform rules for skiers. TERRY KADEL, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in support of SB 44. He stated that the legislation would be good for Alaska as it would define responsibilities between the skier and the operator. He added, that skiing is a sport with inherent risks and skiers need to take ownership of those risks. The legislation would be economically good for Alaska allowing new resorts to open and expand. DAVID SAMS, (TESTIFIED VIA TELECONFERENCE), PRESIDENT OF THE BOARD OF DIRECTORS, ANCHORAGE CHALLENGE PROGRAM, ANCHORAGE, spoke in support of the legislation which would define 7 liability for skiers and operators. DENNIS MINCE, (TESTIFIED VIA TELECONFERENCE), ATTORNEY, ANCHORAGE, spoke in opposition to the legislation. He asked the Committee to consider the precedence established in drafting an exception for a particular business and a special interest. He stated that the legislation is being promoted by SEIBU, a large Japanese corporation. He suggested that each legal situation should be considered in court while given the specific facts regarding it. Representative Brown recommended adding language to Page 5, Line 6, inserting "the Department is authorized to charge a fee, sufficient to cover the cost of plan, review and approval". She stated that the language change would address the ten areas cited causing cost to DNR. She offered to draft the amendment and provide it to the Committee. Representative Parnell requested more information regarding duties as required by other state statutes on ski area operators in which "inherent risks" are defined. Mr. Bond pointed out that there are twenty-six different statutes which define an "inherent risk". He suggested providing information from the Colorado legislation which has been effective. He also offered to make his research available to the Committee. SB 44 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 3:35 P.M. HOUSE FINANCE COMMITTEE March 9, 1994 1:30 P.M. TAPE HFC 94 - 53, Side 2, #000 - end. TAPE HFC 94 - 54, Side 1, #000 - end. TAPE HFC 94 - 54, Side 2, #000 - #515. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Foster Co-Chair MacLean Representative Martin 8 Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Hoffman was not present for the meeting. ALSO PRESENT John Jemewouk, Executive Director of Western Alaska Fisheries Development Association, Elim; Nels Anderson, Executive Director, BBEDC, Dillingham; Ragnar Alstrom, YDFDA, Azakanuk; Fred Phillip, CVFC, Kwigillingok; Mark Snigaroit, Chairman, APICDA, Juneau; Agafon Knukoff, Jr., President, CBSFA, St. Paul Island; Josh Fink, Staff, Senator Tim Kelly; Patti Rizer, (testified via teleconference), Anchorage; Bruce Tizer, (testified via teleconference), Anchorage; Fred Rogers, (testified via teleconference), Squaw Valley, Idaho; Robert Moss, (testified via teleconference), Homer; Chris Moss, (testified via teleconference), Homer; David Wilson, (testified via teleconference), Anchorage; Steve Lear, (testified via teleconference), Anchorage; Mark Bond, (testified via teleconference), Attorney for ALYESKA, Squaw Valley, Idaho; John Bevis, (testified via teleconference), Anchorage; Diana Woods, (testified via teleconference), Anchorage; Mike Stone, (testified via teleconference), Anchorage; Gary Medenvil, Eaglecrest, Juneau; Phil Thingstad, (testified via teleconference), Anchorage; Bob Day, (testified via teleconference), Anchorage; Mano Frey, (testified via teleconference), Anchorage; Terry Kadel, (testified via teleconference), Anchorage; David Sams, (testified via teleconference), Challenge Alaska Program, Anchorage; Dennis Mince, Attorney, Anchorage. SUMMARY COMMUNITY DEVELOPMENT QUOTA PROGRAM (CDQ) PRESENTATION SB 44 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. SB 44 was HELD in Committee for further discussion. COMMUNITY DEVELOPMENT QUOTA PROGRAM (CDQ) PRESENTATION JOHN JEMEWOUK, EXECUTIVE DIRECTOR, WESTERN ALASKA FISHERIES DEVELOPMENT ASSOCIATION, ELIM, explained that applications for the CDQ's are based on 7.5% of the biologically harvestable Bering Sea pollock resource and are submitted on 9 a biennial basis to the Governor of Alaska. The communities eligible to receive quotas must be located on or within fifty miles of the Bering Sea coast from the Bering Strait to the western most of the Aleutian Islands or located on islands within the Bering Sea. Mr. Jemewouk added that CDQ's proceeds must be invested in fishery development programs and ventures that create jobs and promote stable local economies in western Alaska. He provided the Committee with a packet of information regarding the CDQ program. [Copy on file]. NELS ANDERSON, EXECUTIVE DIRECTOR, BRISTOL BAY ECONOMIC DEVELOPMENT CORPORATION (BBEDC), DILLINGHAM, explained that BBEDC received 20 percent of the available CDQ pollock. BBEDC's corporate fishing partner is Oceantrawl Inc., an Alaska corporation operating three factory trawlers. BBEDC plans to: * Implement a plan consisting of employment training programs and small business development program, grants for value-added processing and marketing. * Establish a Scholarship Endowment Fund for students to attend college. * Set up a reserve to provide matching funds for infrastructure construction, and financing for the acquisition of Individual Fishing Quotas (IFQ). * Employ sixty people year round. RAGNAR ALSTROM, YUKON DELTA FISHERIES DEVELOPMENT ASSOCIATION (YDFDA), ALAKANUK, spoke for the Yukon Delta communities stating that his area received five percent of the available CDQ's. YDFDA's corporate fishing partner is Golden Alaska Seafoods. YDFDA plans to: * Establish a training program for up to 258 residents by 1995. * Develop a fleet of small catcher vessels designed to operate in local longline and/or pot fisheries. * Set up a fund for purchasing salmon limited entry permits. * Explore halibut and cod fisheries in the upper Bering Sea. * Employ 50 people in the CDQ operations by 1995. FRED PHILLIP, COASTAL VILLAGES FISHING COOPERATIVE (CVFC), 10 KWIGILLINGOK, stated that CVFC consists of the Yukon- Kuskokwim Delta communities and that they received 27 percent of the available pollock CDQ. The corporate partner for CVFC is Golden Age Fisheries. CVFC plans to: * Purchase 50 percent equity in the 197 ft. factory trawler Brons Point with the long-term goal of owning, managing, and operating a fleet of at-sea processing and harvesting vessels. * Establish a "Salmon Roe University" to train residents of the region to be salmon roe technicians. * Purchase or construct a salmon processor to operate in the lower Kuskokwim River. * Train individuals from CVFC members villages to work at all levels of the ground fish industry. MARK SNIGAROIT, CHAIRMAN, ALEUTIAN PRIBILOF ISLAND COMMUNITY DEVELOPMENT ASSOCIATION(APICDA), JUNEAU, explained that APICDAA's corporate partners in harvesting the quota are Trident Seafoods Corporation, one of Alaska's largest shore based seafood processing companies, and Starbound Partnership, operator of a factory trawler. APICDA received 18 percent of the pollock reserve set aside for the CDQ's. The goals for APICDA are: * Establish a comprehensive vocational education, job training and employment program. * Establish a higher education endowment fund for community residents who wish to purse university degrees. * Participate in funding for completion of the Zapadni Bay Harbor on St. George Island. * Complete engineering designs for a dock in Nelson Lagoon. * Work with the False Pass Tribal Council to fund the construction of a gear storage warehouse in False Pass. AGAFON KNUKOFF, JR., PRESIDENT, EXECUTIVE DIRECTOR, CENTRAL BERING SEA FISHERMEN'S ASSOCIATION (CBSFA), ST. PAUL ISLAND, noted that he represented the fishing community of St. Paul in the Pribilof Islands. CBSFA received 10 percent of the Bering Sea CDQ pollack. CBSFA corporate fishing partner is American Seafoods Company, Inc. CBSFA plans to: 11 * Establish a boat loan program for the purchase and construction of vessels 32' to 125' in length, and that are capable of participating in the multi species fisheries of the Bering Sea. * Set aside funds for infrastructure development on St. Paul Island. * Employment goal: 20-25 people in the CDQ operation. Mr. Jemewouk summarized that the program has given western Alaska villages in western Alaska hope particularly for young adults to become productive members of society. He indicated his concern with the sunset clause to the program dated December, 1995. (Tape Change, HFC 94-54, Side 1). SENATE BILL 44 "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." JOSH FINK, STAFF TO SENATOR TIM KELLY, provided a legislation overview. He stated that the bill would attempt to strike a balance between protecting skiers and ski resort operators by clearly defining the inherent dangers and risks of skiing assumed by the skier, as well as the duties and responsibilities the ski resort operator has to the skiing consumer. He continued that while SB 44 would remove ski resort operators from liability for injuries caused solely by the inherent risks and dangers of skiing, it would not absolve ski operators from negligence or civil liability for violations of provisions outlined in the legislation. PATTI RIZER, (TESTIFIED VIA TELECONFERENCE), PARENT, ANCHORAGE, testified against the legislation for the safety of Alaska's children. She noted that there currently is an inherent risk law in place in the state. Recently, that law was interpreted by the Supreme Court stating that a land owner must act as a responsible land owner and maintain the ski property in a reasonably safe condition by common law duty. She noted her concern with the legislation in determining what would be a "reasonable" risk and responsibilities of the skier. 12 Ms. Rizer added that given the amount of money a person who skies pays at local ski areas, they should be able to assume that there ski operators are acting responsible. She thought the legislation would allow ski resorts to make money while continuing to hire unqualified personnel. BRUCE RIZER, (TESTIFIED VIA TELECONFERENCE), PARENT, ANCHORAGE, testified in opposition to SB 44 providing a brief history of the legislation. He stated that the legislation was introduced shortly after the death of his son at the Alyeska Ski Resort. He thought that the legislation was an attempt to evade the Hiibschamn case, which defines "reasonable" responsibility of ski resort operators, handed down by the Supreme Court. He commented that the legislation would alleviate "shared responsibility" from ski resort operators. FRED ROGERS, (TESTIFIED VIA TELECONFERENCE), DEVELOPMENT COMPANY, SQUAW VALLEY, IDAHO, spoke in support of the legislation. He point out that the legislation would define the liability between the skier and the ski area operators. The information is essential for insurance companies for future economic development projects. ROBERT MOSS, (TESTIFIED VIA TELECONFERENCE), KACHEMAK SKI CLUB, HOMER, testified in support of SB 44 indicating that it would address liability insurance issues. CHRIS MOSS, (TESTIFIED VIA TELECONFERENCE), HOMER, testified in support of the legislation. He stated that the bill adequately addresses the "responsibilities" of the skier and the ski area. DAVID WILSON, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, testified in support of the legislation and stated that it would encourage economic activity in the State by addressing the strong inherent risk law. He added, SB 44 could eliminate unnecessary litigation. Representative Navarre asked Mr. Wilson to provide the Committee with information in which he indicated the statistics of trial attorneys increasing the number of lawsuits against ski areas. STEVE LEAR, (TESTIFIED VIA TELECONFERENCE), PROFESSIONAL SKI INSTRUCTORS (PSI), ANCHORAGE, spoke in support of SB 44. He stated the legislation supports the responsibility of the users and operators of ski areas and also encourages them to share in the risks and hazards of skiing. MARK BOND, (TESTIFIED VIA TELECONFERENCE), GENERAL COUNSEL FOR THE NATIONAL SKI PATROL, ATTORNEY FOR ALYESKA, SQUAW 13 VALLEY, IDAHO, spoke in support of the legislation. He pointed out that injury rates from skiing have declined over the year due to improved operator safety practices. He pointed out that the expenses of litigation, stating that the way to avoid these costs would be for the Legislature to define the "inherent risks" of skiing and note that ski area's are not liable for them. He pointed out that in Colorado, similar legislation has been effectively implemented. Representative Navarre asked if there has been a growth in claim suits against Alyeska and skiers. Mr. Bond stated that there has been an increase. Representative Martin asked how the legislation would help the skier. Mr. Bond replied that the law would require that a list of the inherent risks and dangers be posted. (Tape Change, HFC 94-54, Side 2). Representative Brown asked if equal protection problems would be increased due to specification of an enforcement mechanism on state lands. Mr. Bond listed the state ski resorts indicating who owned the land which they were located. He added that the Department of Natural Resources (DNR) has requested this legislation and that the Forest Service has the authority to site people for violations as specified in statute. DNR would like to have the same authority. JOHN BEVIS, (TESTIFIED VIA TELECONFERENCE), CHALLENGE ALASKA, ANCHORAGE, spoke in support of the proposed legislation stating that the law would define the responsibility of the skier. DIANA WOODS, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in favor of SB 44. She stated that the legislation would protect the interest of skiers and ski operators and added that it could control the cost of skiing due to reduced insurance claims. MIKE STONE, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE ECONOMIC DEVELOPMENT CORPORATION, ANCHORAGE, spoke in support of SB 44, stating that it would be critical legislation for Alaska in order to be competitive with other ski destinations in the United States and Canada. GARY MEDENVIL, BUSINESS MANAGER, EAGLECREST, JUNEAU, urged the Committee to support the legislation adding that the bill addresses the needs of small ski areas. Without the legislation, city owned ski areas such as Eaglecrest could suffer the same fate as the Valdez resort resulting from the 14 Hiibschamn versus Valdez court case. Representative Therriault commented that the bill would provide uniformity of regulations to all state ski areas. PHIL THINGSTAD, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in favor of SB 44. He added, that the legislation would define the legal parameters for skiers and ski areas by encouraging future development and goal setting. BOB DAY, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in support of the proposed legislation adding that he favors any attempt to define and control the costs of skiing. He pointed out that the bill is fair and would define the responsibility of the operator and the skier. MANO FREY, (TESTIFIED VIA TELECONFERENCE), PRESIDENT, AFL- CIO, ANCHORAGE, stated that the AFL-CIO supports the legislation given the balance it has created for ski operators to be liable for any negligent acts and at the same time defining uniform rules for skiers. TERRY KADEL, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in support of SB 44. He stated that the legislation would be good for Alaska as it would define responsibilities between the skier and the operator. He added, that skiing is a sport with inherent risks and skiers need to take ownership of those risks. The legislation would be economically good for Alaska allowing new resorts to open and expand. DAVID SAMS, (TESTIFIED VIA TELECONFERENCE), PRESIDENT OF THE BOARD OF DIRECTORS, ANCHORAGE CHALLENGE PROGRAM, ANCHORAGE, spoke in support of the legislation which would define liability for skiers and operators. DENNIS MINCE, (TESTIFIED VIA TELECONFERENCE), ATTORNEY, ANCHORAGE, spoke in opposition to the legislation. He asked the Committee to consider the precedence established in drafting an exception for a particular business and a special interest. He stated that the legislation is being promoted by SEIBU, a large Japanese corporation. He suggested that each legal situation should be considered in court while given the specific facts regarding it. Representative Brown recommended adding language to Page 5, Line 6, inserting "the Department is authorized to charge a fee, sufficient to cover the cost of plan, review and approval". She stated that the language change would address the ten areas cited causing cost to DNR. She offered to draft the amendment and provide it to the Committee. 15 Representative Parnell requested more information regarding duties as required by other state statutes on ski area operators in which "inherent risks" are defined. Mr. Bond pointed out that there are twenty-six different statutes which define an "inherent risk". He suggested providing information from the Colorado legislation which has been effective. He also offered to make his research available to the Committee. SB 44 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 3:35 P.M. 16