05/14/2003 09:35 AM Senate TRA

                     HB 250-STATE CONTRACTS                                                                                 
                                                                                                                              
CHAIR COWDERY  announced the committee  heard the  Senate version                                                               
of the  bill previously. He  described it as  a clean up  bill to                                                               
settle contract disputes expeditiously.                                                                                         
                                                                                                                                
BARBARA COTTING, staff to Representative  Jim Holm, said the bill                                                               
is the mirror of SB 125.                                                                                                        
                                                                                                                                
DICK CATTENACH  testified via  teleconference from  Anchorage. He                                                               
said the bill deals with three problems:                                                                                        
   · Timeliness of decisions - Redundancies would be removed                                                                    
   · Fairness of decisions - Hearing officers would be                                                                          
     independent of the department                                                                                              
   · Cost of the process - Rules 68, 79 and 82 would encourage                                                                  
     quick settlement of claims - Prevailing party recovers a                                                                   
     portion of legal fees                                                                                                      
                                                                                                                                
He said he was unaware of any opposition.                                                                                       
                                                                                                                                
SENATOR  OLSON asked  him to  expand on  the fee  payment to  the                                                               
prevailing party.                                                                                                               
                                                                                                                                
MR.  CATTENACH  replied  the prevailing  party  would  receive  a                                                               
portion of the legal fees.                                                                                                      
                                                                                                                                
SENATOR  OLSON asked  if there  was any  provision for  the party                                                               
that doesn't prevail.                                                                                                           
                                                                                                                                
MR. CATTENACH replied the losing party pays their own fees.                                                                     
                                                                                                                                
SENATOR  GEORGIANNA  LINCOLN asked  if  there  were any  concerns                                                               
expressed on SB 125.                                                                                                            
                                                                                                                                
CHAIR  COWDERY   said  there  were  questions   relating  to  the                                                               
procurement code but those were addressed in both bills.                                                                        
                                                                                                                                
SENATOR  THERRIAULT made  a motion  to move  CSHB 250  (FIN) from                                                               
committee with attached indeterminate  fiscal note and individual                                                               
recommendations. There being no objection, it was so ordered.