2023-02-15                     Senate Journal                      Page 0258
SB 70                                                                                                                         
SENATE BILL NO. 70 BY THE SENATE 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 and Commerce                                                                  
Committee.                                                                                                                      
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Commerce, Community,                                                                    
          and Economic Development                                                                                              
                                                                                                                                

2023-02-15                     Senate Journal                      Page 0259
Governor's transmittal letter dated February 14:                                                                                
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
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).                                                                                                               
                                                                                                                                
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