03/23/1993 09:33 AM Senate FIN

                                                                               
  CS FOR SENATE BILL NO. 112(JUD):                                             
                                                                               
       An  Act  relating  to  the   Uniform  Commercial  Code;                 
       amending Alaska Rules of Civil  Procedure 8 and 82, and                 
       Alaska  Rule  of  Evidence 402;  and  providing  for an                 
       effective date.                                                         
                                                                               
  Co-chair Pearce announced that CSSB  112(JUD) was before the                 
  committee.  SENATOR  JAY KERTTULA, prime sponsor  of SB 112,                 
  spoke  in  support of  CSSB  112(JUD).   He  said  that this                 
  legislation  had been  requested by the  Supreme Court.   He                 
  explained that it would bring the Uniform Commercial Code in                 
  Alaska up to date.  He listed some of  the changes contained                 
  in the bill.                                                                 
                                                                               
  Co-chair Pearce asked Art Peterson, Attorney at Law, to give                 
  an  overview of  CSSB 112(JUD)  and, by  request  of Senator                 
  Kelly, provide a brief explanation of the Uniform Commercial                 
  Code.                                                                        
                                                                               
  ART  PETERSON  said  he was  appearing  in  his  capacity as                 
  Uniform  Law  Commissioner  for the  state,  and  voiced his                 
  support of CSSB 112(JUD).  He said the UCC was a compilation                 
  of all  the commercial  law in  the country  enacted by  the                 
  states.  It also serves as an international model.  He  said                 
  there have been some amendments to  the articles in the last                 
  few decades.                                                                 
                                                                               
  SENATOR   STEVE  RIEGER   asked   for   an  explanation   of                 
  unconscionability  on  page  93.    Mr. Peterson  said  that                 
  because of an existing  law in Alaska, this section  made it                 
  clear that the national version would be in effect, assuring                 
  predictability  and less  litigation.   Discussion  followed                 
  between  Senator  Rieger  and  Mr.  Peterson  regarding  the                 
  determination of attorney's fees and unconscionability.   In                 
  response to  Senator Rieger,  Mr. Peterson  recommended that                 
  this  section  not  be  amended,  but  agreed to  raise  the                 
  question with the  editorial board and develop  an amendment                 
  for next  year if appropriate.  Senator Kerttula agreed that                 
  any  change  be  proposed through  the  editorial  board and                 
  incorporate it into a national amendment.                                    
                                                                               
  Discussion  followed  between   Senators  Rieger  and  Frank                 
                                                                               
                                                                               
  regarding  attorney's  fees  and how  consistent  those were                 
  across the  nation.   Mr. Peterson  said that  style changes                 
  were given  a  low priority  but  that the  issue  regarding                 
  attorney's fees was important.  Mr. Peterson said that there                 
  was  a great value to Alaska to  have the uniformity of such                 
  laws, especially for Alaskans doing  business outside of the                 
  state, or for  individuals from other states  doing business                 
  in Alaska.                                                                   
                                                                               
  Senator Rieger MOVED  for adoption of  an amendment on  page                 
  93,  line  20, after  the  word  "known", to  add  the words                 
  "should  have  known."   Mr.  Peterson recommended  that the                 
  amendment  be  withdrawn  and  the  committee  take  Senator                 
  Kerttula's   suggestion   and   contact  Professor   Miller,                 
  University  of Oklahoma,  Executive  Director, The  National                 
  Conference of Commissioners in Uniform State Laws, regarding                 
  this issue.  Senator Rieger WITHDREW his amendment and asked                 
  Mr.  Peterson to  contact Prof.  Miller  for review  of this                 
  issue by the editorial board.                                                
                                                                               
  Senator Kerttula  MOVED for  passage of  CSSB 112(JUD)  from                 
  committee with  individual recommendations.   No  objections                 
  being raised, it  was REPORTED OUT  of committee with a  "do                 
  pass" and with zero fiscal notes for the Department Commerce                 
  &  Economic  Development,  the Department  of  Law,  and the                 
  Department of Natural Resources.   Senators Kelly, Jacko and                 
  Kerttula  signed "do pass."  Senators Rieger, Sharp, and Co-                 
  chairs Pearce and Frank signed "no recommendation."