HB 366 - MOTOR CARRIER INDEMNIFICATION AGREEMENTS  2:36:38 PM VICE CHAIR DAHLSTROM announced that the final order of business would be HOUSE BILL NO. 366, "An Act relating to indemnification agreements that relate to motor carrier transportation contracts." [Before the committee was CSHB 366(TRA).] 2:37:23 PM REPRESENTATIVE GRUENBERG recalled that there was no controversy regarding HB 366 in the House Transportation Standing Committee, the prior committee of referral. Subsequently, the House Judiciary Standing Committee has received a letter from the Ocean Carrier Equipment Management Association (OCEMA) requesting a change to CSHB 366(TRA). 2:38:08 PM JEANNE OSTNES, Staff, Representative Craig Johnson, Alaska State Legislature, explained that HB 366 was initiated by the motor carriers, as presently the shippers could transfer all the liability to the motor carrier, thereby indemnifying themselves. She pointed out that the shippers were also included in the bill, as both shippers and motor carriers agreed to indemnify themselves. She noted that OCEMA, the Alaska Trucking Association (ATA), and Representative Johnson, the bill sponsor, have all agreed to the proposed Amendment 1. [Vice Chair Dahlstrom returned the gavel to Chair Ramras.] 2:39:51 PM REPRESENTATIVE GRUENBERG directed attention to page 2, line 20 and noted that the language "packing or storage" was different from the amendment he had offered in the prior committee, which was "packing and storage." He asked to find out if there is any substantive difference. REPRESENTATIVE GATTO offered his belief that there is a significant difference. REPRESENTATIVE GRUENBERG concurred. He indicated that he would like to see the bill amended such that "and" is used instead of "or." 2:42:03 PM MS. OSTNES referred to the letter from OCEMA, dated March 15, 2010, [Included in the members' packets.] which supported proposed Amendment 1 and listed other states with similar legislation. 2:42:18 PM AVES THOMPSON, Executive Director, Alaska Trucking Association (ATA), relayed that ATA was fully supportive of the proposed amendment. He pointed out that the basic premise of HB 366 was to assign liability where it belongs. 2:44:42 PM DEAN McKENZIE, President, Alaska West Express, stated that HB 366 is a very good bill and he encouraged support for passage of both the bill and the proposed amendment. He expressed that each party should be responsible for its own actions. 2:46:25 PM REPRESENTATIVE GRUENBERG offered his belief that the proposed Amendment 1 would provide in state law that uniform indemnification agreements would not be contrary to public policy. He cited the synopsis of a Texas anti-indemnification case which he believed to be included in the members' packets. MS. OSTNES agreed, and cited the Texas case as CMACGM America v. Empire Truck Lines. REPRESENTATIVE GRUENBERG pointed out that HB 366 would reverse the result of the Texas case. 2:48:26 PM CHAIR RAMRAS, after ascertaining that no one else wished to testify, closed public testimony on HB 366. 2:48:41 PM REPRESENTATIVE GRUENBERG made a motion to adopt proposed Amendment 1, labeled 26-LS1434\E.2, Bannister, 3/18/10, which read: Page 2, following line 2: Insert a new subsection to read: "(c) This section does not apply to the Uniform Intermodal Interchange and Facilities Access Agreement administered by the Intermodal Association of North America or to another agreement that provides for the interchange, use, or possession of intermodal chassis, intermodal containers, or other intermodal equipment." Reletter the following subsection accordingly. There being no objection, Amendment 1 was adopted. REPRESENTATIVE GRUENBERG said that he would refer to the earlier House Transportation Standing Committee version of HB 366 as the basis for his earlier referenced question to the use of "and" as opposed to "or." 2:49:23 PM REPRESENTATIVE DAHLSTROM moved to report CSHB 366(TRA), as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 366(JUD) was reported from the House Judiciary Standing Committee.