02/20/2023 03:15 PM House LABOR & COMMERCE

         HB  75-OWNER & CONTRACTOR CONTROLLED INSURANCE                                                                     
                                                                                                                                
3:16:22 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  first order of business would be                                                               
HOUSE BILL  NO. 75, "An  Act relating to coverage  for additional                                                               
insureds   under  owner   and  contractor   controlled  insurance                                                               
programs; and providing for an effective date."                                                                                 
                                                                                                                                
3:16:51 PM                                                                                                                    
                                                                                                                                
LORI  WING-HEIER, Director,  Juneau  Office,  Alaska Division  of                                                               
Insurance,  Department  of   Commerce,  Community,  and  Economic                                                               
Development, introduced  HB 75  on behalf  of the  sponsor, House                                                               
Rules by request  of the governor.  She stated  that in the State                                                               
of  Alaska,  projects  costing  over $50  million  and  having  a                                                               
defined geographic  location and time  frame are eligible  for an                                                               
owner  controlled  insurance  program  or  contractor  controlled                                                               
program.   The significance of this  is that it allows  the owner                                                               
or  contractor  to buy  the  insurance  for all  contractors  and                                                               
subcontractors working on the  project, usually including general                                                               
liability,  professional  liability, and  workers'  compensation.                                                               
She said  that this  allows contractors  to keep  insurance costs                                                               
down and helps prevent "unnecessary  litigation."  She added that                                                               
there would  be an amendment  to further clarify the  language of                                                               
the bill.                                                                                                                       
                                                                                                                                
3:19:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked if  it would  be worthwhile  to reduce                                                               
the $50 million threshold.                                                                                                      
                                                                                                                                
MS. WING-HEIER  answered that some projects  would likely benefit                                                               
from that,  although the  bill is  intended to  clarify statutory                                                               
language  and  changing the  threshold  was  not considered  when                                                               
writing it.                                                                                                                     
                                                                                                                                
CHAIR SUMNER announced that HB 75 was held over.