Legislature(2023 - 2024)BUTROVICH 205
04/28/2023 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 75 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
April 28, 2023
1:31 p.m.
MEMBERS PRESENT
Senator Matt Claman, Chair
Senator Jesse Kiehl, Vice Chair
Senator James Kaufman
Senator Löki Tobin
MEMBERS ABSENT
Senator Cathy Giessel
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 75(L&C)
"An Act relating to coverage for additional insureds under owner
and contractor controlled insurance programs; and providing for
an effective date."
- MOVED CSHB 75(L&C) OUT OF COMMITTEE
SENATE BILL NO. 70
"An Act relating to coverage for additional insureds under owner
and contractor controlled insurance programs; and providing for
an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 75
SHORT TITLE: OWNER & CONTRACTOR CONTROLLED INSURANCE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/15/23 (H) READ THE FIRST TIME - REFERRALS
02/15/23 (H) L&C
02/20/23 (H) L&C AT 3:15 PM BARNES 124
02/20/23 (H) Heard & Held
02/20/23 (H) MINUTE(L&C)
03/01/23 (H) L&C AT 3:15 PM BARNES 124
03/01/23 (H) <Bill Hearing Canceled>
03/13/23 (H) L&C AT 3:15 PM BARNES 124
03/13/23 (H) Heard & Held
03/13/23 (H) MINUTE(L&C)
03/15/23 (H) L&C AT 3:15 PM BARNES 124
03/15/23 (H) Moved CSHB 75(L&C) Out of Committee
03/15/23 (H) MINUTE(L&C)
03/17/23 (H) L&C RPT CS(L&C) 5DP 2NR
03/17/23 (H) DP: WRIGHT, PRAX, SADDLER, RUFFRIDGE,
SUMNER
03/17/23 (H) NR: FIELDS, CARRICK
04/17/23 (H) L&C CS ADOPTED Y39 N1
04/26/23 (H) TRANSMITTED TO (S)
04/26/23 (H) VERSION: CSHB 75(L&C)
04/28/23 (S) JUD AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Introduced CSHB 75(L&C) and provided the
sectional analysis.
ACTION NARRATIVE
1:31:50 PM
CHAIR MATT CLAMAN called the Senate Judiciary Standing Committee
meeting to order at 1:31 p.m. Present at the call to order were
Senators Kaufman, Kiehl, Tobin and Chair Claman.
HB 75-OWNER & CONTRACTOR CONTROLLED INSURANCE
1:32:28 PM
CHAIR CLAMAN announced the consideration of CS FOR HOUSE BILL
NO. 75(L&C) "An Act relating to coverage for additional insureds
under owner and contractor controlled insurance programs; and
providing for an effective date."
He noted that this was the first hearing and asked Lori Wing-
Heier to introduce the bill.
1:32:47 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community, and Economic Development, Anchorage,
Alaska, introduced CSHB 75 (L&C). She provided background about
the legislation and noted that it is the companion to SB 70. She
mentioned a provision in Title 21 addressing insurance, which
provides that owners and general contractors of large
construction projects (projects greater than $50 million in
value with a defined limit and a set location) are allowed to
purchase a master insurance program. The master insurance
program names all subcontractors working on the site including
workers' compensation, general liability, professional
liability, and environmental liability. She shared that smaller
projects typically require the owner to view a certificate of
insurance. The master program is often less expensive and
eliminates subrogation because there is only one policy.
MS. WING-HEIER spoke about past discussions related to large
construction projects. She informed the committee that she
reviewed the statutes with an attorney from the Department of
Law. The attorney informed her that the current statute did not
allow for additional insureds. She clarified that a contractor
who is not named as the additional insured will be forced to
charge the owner for additional insurance under the existing
statute. She stated that the proposed legislation attempts to
correct the Title 21 provision. She added that CSHB 75(L&C)
pertains to owner-controlled, or contractor-controlled insurance
programs. The contractors and subcontractors, regardless of
tier, can be named as additional insureds on the owner's master
program if required by contract.
1:35:40 PM
CHAIR CLAMAN requested the sectional analysis.
1:35:49 PM
MS. WING-HEIER presented the sectional analysis for HB 75.
Section 1 AS 21.36.475(b) is amended to:
(4) insurance policies endorsed to name one or more
persons as additional insureds if naming a person as
an additional insured is a term required by a
contract; this paragraph does not apply to an owner-
controlled or contractor-controlled insurance program
for a major construction project.
Section 2 Adds a new section to the uncodified law of
the State of Alaska.
Section 3 Provides for an immediate effective date
CHAIR CLAMAN noted that until recently, these larger contracts
were routinely approved with the existing statutes. He asked if
the proposed change was because of a Department of Law
attorney's new opinion.
MS. WING-HEIER replied in the affirmative.
CHAIR CLAMAN commented on following the advice of counsel.
1:36:48 PM
SENATOR KIEHL asked what role the division plays in approving
insurance for a project.
MS. WING-HEIER replied that the division reviews the value of
the project, the defined location, and a set timeframe. She
added that cost overruns or extensions are not always considered
problematic, but the timeframe must be established. She
clarified that the division does not advise the owner about the
type or quality of the insurance purchased. The insurance simply
must meet the intent of the statute with the three provisions.
1:37:36 PM
CHAIR CLAMAN opened public testimony on CSHB 75(L&C). After
ascertaining that no one in the room or online wished to
testify, he closed public testimony. He looked to the will of
the committee.
SENATOR KIEHL moved to report CSHB 75(L&C), work order 33-
GH1009\B, from committee with individual recommendations and
attached fiscal note(s).
CHAIR CLAMAN found no objection and CSHB 75(L&C) was reported
from the Senate Judiciary Standing Committee.
1:39:05 PM
There being no further business to come before the committee,
Chair Claman adjourned the Senate Judiciary Standing Committee
meeting at 1:39 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 75 version B 3.17.2023.PDF |
SJUD 4/28/2023 1:30:00 PM |
HB 75 |
| HB 75 Transmittal Letter 2.14.2023.pdf |
SJUD 4/28/2023 1:30:00 PM |
HB 75 |
| HB 75 Sectional Analysis version B.pdf |
SJUD 4/28/2023 1:30:00 PM |
HB 75 |
| HB 75 Summary of Changes version A to version B.pdf |
SJUD 4/28/2023 1:30:00 PM |
HB 75 |
| HB 75 Fiscal Note DCCED-DOI 2.8.2023.pdf |
SJUD 4/28/2023 1:30:00 PM |
HB 75 |