03/19/2010 01:00 PM House JUDICIARY

       HB 366 - MOTOR CARRIER INDEMNIFICATION AGREEMENTS                                                                    
                                                                                                                                
2:36:38 PM                                                                                                                    
                                                                                                                                
VICE CHAIR DAHLSTROM  announced that the final  order of business                                                               
would be HOUSE BILL NO.  366, "An Act relating to indemnification                                                               
agreements   that   relate   to  motor   carrier   transportation                                                               
contracts."  [Before the committee was CSHB 366(TRA).]                                                                          
                                                                                                                                
2:37:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  recalled that there was  no controversy                                                               
regarding HB 366 in the  House Transportation Standing Committee,                                                               
the  prior  committee  of  referral.    Subsequently,  the  House                                                               
Judiciary  Standing  Committee has  received  a  letter from  the                                                               
Ocean   Carrier   Equipment    Management   Association   (OCEMA)                                                               
requesting a change to CSHB 366(TRA).                                                                                           
                                                                                                                                
2:38:08 PM                                                                                                                    
                                                                                                                                
JEANNE OSTNES, Staff, Representative  Craig Johnson, Alaska State                                                               
Legislature, explained  that HB  366 was  initiated by  the motor                                                               
carriers,  as  presently  the shippers  could  transfer  all  the                                                               
liability to the motor  carrier, thereby indemnifying themselves.                                                               
She  pointed out  that the  shippers  were also  included in  the                                                               
bill, as  both shippers  and motor  carriers agreed  to indemnify                                                               
themselves.     She  noted  that   OCEMA,  the   Alaska  Trucking                                                               
Association (ATA), and Representative  Johnson, the bill sponsor,                                                               
have all agreed to the proposed Amendment 1.                                                                                    
                                                                                                                                
[Vice Chair Dahlstrom returned the gavel to Chair Ramras.]                                                                      
                                                                                                                                
2:39:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention  to page 2,  line 20                                                               
and noted  that the language  "packing or storage"  was different                                                               
from the amendment  he had offered in the  prior committee, which                                                               
was "packing and storage."  He asked  to find out if there is any                                                               
substantive difference.                                                                                                         
                                                                                                                                
REPRESENTATIVE  GATTO   offered  his  belief  that   there  is  a                                                               
significant difference.                                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG  concurred.  He indicated  that he would                                                               
like to see  the bill amended such that "and"  is used instead of                                                               
"or."                                                                                                                           
                                                                                                                                
2:42:03 PM                                                                                                                    
                                                                                                                                
MS. OSTNES  referred to  the letter from  OCEMA, dated  March 15,                                                               
2010,  [Included  in  the   members'  packets.]  which  supported                                                               
proposed  Amendment  1  and  listed  other  states  with  similar                                                               
legislation.                                                                                                                    
                                                                                                                                
2:42:18 PM                                                                                                                    
                                                                                                                                
AVES  THOMPSON, Executive  Director, Alaska  Trucking Association                                                               
(ATA),  relayed that  ATA was  fully supportive  of the  proposed                                                               
amendment.  He  pointed out that the basic premise  of HB 366 was                                                               
to assign liability where it belongs.                                                                                           
                                                                                                                                
2:44:42 PM                                                                                                                    
                                                                                                                                
DEAN  McKENZIE, President,  Alaska West  Express, stated  that HB
 is a very good bill  and he encouraged support for passage of                                                               
both  the bill  and the  proposed amendment.   He  expressed that                                                               
each party should be responsible for its own actions.                                                                           
                                                                                                                                
2:46:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG offered  his belief  that the  proposed                                                               
Amendment   1   would  provide   in   state   law  that   uniform                                                               
indemnification  agreements  would  not  be  contrary  to  public                                                               
policy.   He cited the  synopsis of a  Texas anti-indemnification                                                               
case which he believed to be included in the members' packets.                                                                  
                                                                                                                                
MS. OSTNES agreed, and cited the  Texas case as CMACGM America v.                                                             
Empire Truck Lines.                                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  pointed out  that HB 366  would reverse                                                               
the result of the Texas case.                                                                                                   
                                                                                                                                
2:48:26 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS, after  ascertaining  that no  one  else wished  to                                                               
testify, closed public testimony on HB 366.                                                                                     
                                                                                                                                
2:48:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   made  a  motion  to   adopt  proposed                                                               
Amendment  1, labeled  26-LS1434\E.2,  Bannister, 3/18/10,  which                                                               
read:                                                                                                                           
                                                                                                                                
     Page 2, following line 2:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(c)  This section does not apply to the Uniform                                                                      
     Intermodal Interchange and  Facilities Access Agreement                                                                    
     administered  by the  Intermodal  Association of  North                                                                    
     America or  to another agreement that  provides for the                                                                    
     interchange, use, or  possession of intermodal chassis,                                                                    
     intermodal containers, or other intermodal equipment."                                                                     
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
REPRESENTATIVE GRUENBERG said that he  would refer to the earlier                                                               
House Transportation Standing Committee version  of HB 366 as the                                                               
basis for his earlier referenced question  to the use of "and" as                                                               
opposed to "or."                                                                                                                
                                                                                                                                
2:49:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  moved  to  report  CSHB  366(TRA),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There being no  objection, CSHB
(JUD) was reported from the House Judiciary Standing                                                                         
Committee.