Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/10/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB70 | |
| HB56 | |
| HB51 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 73 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| *+ | HB 51 | TELECONFERENCED | |
| *+ | HB 56 | TELECONFERENCED | |
SB 70-OWNER & CONTRACTOR CONTROLLED INSURANCE
2:03:14 PM
CHAIR BJORKMAN announced the consideration of 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."
CHAIR BJORKMAN stated that the committee amended the bill during
the previous hearing. He asked whether there were any questions
for the director of insurance before he looked to the will of
the committee.
2:04:27 PM
SENATOR GRAY-JACKSON requested a refresher on SB 70.
2:04:53 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
gave a refresher on SB 70. She explained that owner- or
contractor-controlled insurance programs are the opposite of
traditional insurance contracts between the owner or general
contractor and the subcontractors. In a traditional contract,
all the subcontractors are required to buy insurance and pass it
up. In an owner controlled insurance program (OCIP), the owner,
such as Exxon, buys insurance and passes it down to all the
contractors on the project. Worker's compensation, general
liability and professional liability would all be under an
owner- or contractor-controlled insurance program.
When attorneys for the Division of Insurance examined the
statutory language regarding additional insureds on large
infrastructure projects on the North Slope, they said the
language was not sufficient to accommodate OCIPs. Therefore, the
impetus behind SB 70 is to ensure that subcontractors are
covered under the owner's master insurance program.
2:07:01 PM
SENATOR GRAY-JACKSON moved to report SB 70, work order 33-
GS1009\A, as amended, from committee with individual
recommendations and attached fiscal note(s).
CHAIR BJORKMAN found no objections and CSSB 70(L&C) was reported
from the Senate Labor and Commerce Standing Committee.