05/06/1999 02:20 PM Senate L&C

         HB 146-LIABILITY FOR COMMERCIAL REC ACTIVITIES                                                                         
                                                                                                                                
CHAIRMAN MACKIE announced HB 146 to be up for consideration.                                                                    
                                                                                                                                
MS. KELLY SULLIVAN, staff to Representative Kott, sponsor of HB
, said the bill addresses specific guidelines for operators of,                                                              
and participants in, outdoor recreation activities to minimize the                                                              
possibility of accidents and, should an accident occur, the bill                                                                
helps determine who will held liable for the accident.                                                                          
                                                                                                                                
MS. SULLIVAN stated existing legal uncertainties have resulted in                                                               
high liability insurance costs which hurt small Alaskan businesses.                                                             
Representative Kott does not want to lose these businesses and he                                                               
wants to avoid frivolous, unfair, and unreasonable lawsuits.                                                                    
                                                                                                                                
MR. DAVE GRAY, staff to Senator Mackie, noted the legislative                                                                   
drafter suggested adding a reference to AS 05.50.040 on page 3,                                                                 
line 11, to clarify the issue.                                                                                                  
                                                                                                                                
SENATOR LEMAN moved to adopt SCSHB 146(L&C).  There being no                                                                    
objections, it was so ordered.                                                                                                  
                                                                                                                                
MR. MIKE WINDERD, Alaska Travel Adventures and president of the                                                                 
local AVA chapter, said this is a very important subject to the                                                                 
visitor industry as a whole.  They have polled different business                                                               
organizations, including ARDA and a number of AVA chapters which                                                                
represent 95 percent of the recreational businesses in the State,                                                               
and they support this bill. SCSHB 146(L&C) sets out some of the                                                                 
responsibilities of the participants on a tour and sets a higher                                                                
standard for operators of recreational tours.  The primary concern                                                              
of businesses is nuisance lawsuits that usually equal the cost of                                                               
an insurance deductible and can be numerous and add up.                                                                         
                                                                                                                                
Number 390                                                                                                                      
                                                                                                                                
SENATOR KELLY moved to pass SCSHB 146(L&C) as amended from                                                                      
committee with individual recommendations. There were no objections                                                             
and it was so ordered.