Legislature(2023 - 2024)
2023-02-15 House Journal
Full Journal pdf2023-02-15 House Journal Page 0212 HB 75 HOUSE BILL NO. 75 by the House Rules Committee by request of the Governor, entitled: "An Act relating to coverage for additional insureds under owner and contractor controlled insurance programs; and providing for an effective date." was read the first time and referred to the Labor & Commerce Committee. The following fiscal note(s) apply: 1. Zero, Dept. of Commerce, Community, & Economic Development The Governor's transmittal letter dated February 14 follows: "Dear Speaker Tilton: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill to allow for the inclusion of additional insureds under owner and contractor controlled insurance programs (OCIPs). 2023-02-15 House Journal Page 0213 Currently, the Department of Commerce, Community, and Economic Development, Division of Insurance is required to enforce certain limitations on OCIPs on major construction projects, including a moratorium on policies naming one or more persons as additional insureds. This limitation prevents individuals and businesses from efficiently managing large scale infrastructure projects because it forces the owner or contractor to name all potential contractors and subcontractors at the initiation of a project. Projects such as the Trans- Alaska Pipeline System are not economically viable unless owners and contractors can enter into OCIPs that allow for additional insureds. This bill removes the limitation on additional insureds and creates economic incentives for owners and contractors to engage in large scale contracts that will assist Alaska's economy. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor"