03/24/1998 01:38 PM Senate L&C

                 SB 198 - UNIFORM PARTNERSHIP ACT                              
                                                                               
VICE CHAIRMAN MACKIE announced SB 198 to be up for consideration.              
                                                                               
MS. ANNETTE KREITZER, Staff to Senate Labor and Commerce Committee,            
said there was a  proposed CS to SB 198, 0LS0613\F by Bannister,               
dated 3/23/98, and she explained the changes.  "In the ordinary                
course of business" is a phrase that was used on page 36.  On page             
42, in the applicability section, Ms. Bannister pointed out a                  
possible constitutional problem with the way it was worded in the              
old bill.  Her concern was that the partnership could make the                 
elections after January 1, 1998, immediately notify a third party              
and change the partner's liability on the contract going back to               
one year before the election.  It would seem to violate the                    
prohibition against the impairment of contracts under Article 1,               
Section 15 of the State Constitution.  She suggested to just delete            
the language which the CS does.  The other change in the CS is                 
using bi-annual reports where it is appropriate, rather than annual            
reports because this is what the Division of Banking and Securities            
uses.                                                                          
                                                                               
MS. KREITZER said there were additional amendments that hadn't been            
included in the CS and that it had taken a long time to get back               
from the drafter, and suggested that those could be addressed in               
the Senate Judiciary Committee.                                                
                                                                               
TAPE 98-16, SIDE B                                                             
                                                                               
VICE CHAIRMAN MACKIE asked her if she had read over the CS.                    
                                                                               
MS. KREITZER said she normally goes over a CS word-for-word, but               
she hadn't done that yet.                                                      
                                                                               
MR. ART PETERSON, Uniform Law Commissioner, agreed with Ms.                    
Kreitzer's recommendation that they accept the CS and move it on to            
the Judiciary Committee where further amendments could be                      
addressed.  The two amendments proposed by Senator Kelly's                     
constituents were on other types of entities that aren't even dealt            
with in this bill and recommended that they not be incorporated in             
this bill.                                                                     
                                                                               
SENATOR KELLY asked if this bill was a recommendation from the                 
Uniform Law Commission.                                                        
                                                                               
MR. PETERSON said it was.                                                      
                                                                               
SENATOR KELLY asked how much of the CS he agreed with.                         
                                                                               
MR. PETERSON replied that he agreed with all of it.                            
                                                                               
SENATOR KELLY said once they get away from his recommendations,                
they are getting away from the Uniform Code which makes it                     
difficult to do business.  The whole idea of the Uniform Code is               
that all 50 states would eventually agree with each other.                     
                                                                               
MR. PETERSON said that was an invaluable point; to facilitate the              
business in Alaska by Alaskans with those outside and those outside            
who want to do business in Alaska is exactly the value of the                  
Uniform Act system.  Changing annual reports to bi-annual reports              
should not cause a problem.  There is no problem conforming with               
other states.                                                                  
                                                                               
Number 544                                                                     
                                                                               
SENATOR HOFFMAN asked if there was a short test the Committee could            
take, so they know what they are passing out.                                  
                                                                               
MR. PETERSON said he could provide them with a short summary.                  
                                                                               
SENATOR KELLY moved to adopt the CS to SB 198.  There were no                  
objections and it was so ordered.                                              
                                                                               
SENATOR KELLY moved to pass CSSB 198(L&C) from Committee with                  
individual recommendations.  There were no objections and it was so            
ordered.