05/07/1998 04:15 PM House JUD

CSSB 319(RLS) - ARBITRATION                                                    
                                                                               
The next item of business was CSSB 319(RLS), "An Act relating to               
arbitration; amending Rules 57(a) and 77(g), Alaska Rules of Civil             
Procedure; and providing for an effective date."  It had been heard            
on May 5, 1998.                                                                
                                                                               
Number 1850                                                                    
                                                                               
REPRESENTATIVE ROKEBERG advised members that he had provided                   
additional information, including testimony before the Senate                  
Judiciary Committee and a copy of the standard local listing                   
service document titled, "Earnest Money Receipt and Agreement to               
Purchase," which is used in Anchorage.  He referred to the section             
of the latter document titled, "Mediation/Arbitration of Disputes,"            
which says, "If a matter is not resolved through mediation, the                
matter shall then be submitted an decided by binding arbitration               
pursuant to Rules of the American Arbitration Association, or                  
litigation, but not both."  He told members that buyers and sellers            
may initial their preferences in choosing one or the other of                  
those.                                                                         
                                                                               
Number 1935                                                                    
                                                                               
REPRESENTATIVE ROKEBERG made a motion to adopt an amendment to                 
reinsert, on page 5, line 23, Section 11, an effective date of                 
January 1, 1999.  He stated his belief that an amendment on May 5,             
1998, had eliminated the effective date, and he said this would                
provide sufficient time for businesses and others affected to                  
reprint forms to ensure consistency with this new legislation.                 
                                                                               
REPRESENTATIVE ROKEBERG next referred to the phrase, "or a separate            
document" on page 2, line 15.  He said it does allow for an                    
addendum, which was one of his concerns.                                       
                                                                               
CHAIRMAN GREEN told Representative Rokeberg he didn't recall that              
amendment to Section 11.                                                       
                                                                               
REPRESENTATIVE ROKEBERG restated his motion and his understanding              
from the previous hearing.                                                     
                                                                               
CHAIRMAN GREEN asked whether there was any objection.  Hearing                 
none, he announced that the amendment was adopted.                             
                                                                               
Number 2052                                                                    
                                                                               
REPRESENTATIVE ROKEBERG noted that there was another amendment, 0-LS1545\F.1, B
way it is drafted confuses him.  However, he wanted to go on record            
stating its purpose.  He told members that if an arbitration                   
provision allowed for an appeal, that would be exempt under the                
provisions on page 3, subsection (c).  In other words, if there is             
a nonbinding arbitration provision, they wouldn't have to meet the             
standards here.                                                                
                                                                               
REPRESENTATIVE ROKEBERG made a motion to move from committee CSSB
(RLS), as amended, with individual recommendations and attached             
zero fiscal note.                                                              
                                                                               
Number 2173                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ objected.  He explained that he has                   
concerns, as he had not heard testimony from the alternative                   
dispute section of the bar, nor from the American Arbitration                  
Association, that this kind of language is acceptable and that the             
pattern has proven functional in the past.                                     
                                                                               
CHAIRMAN GREEN pointed out that it is voluntary.                               
                                                                               
Number 2243                                                                    
                                                                               
REPRESENTATIVE ROKEBERG mentioned that he had talked to a number of            
people in various business elements of the state, particularly the             
real estate associations.  He said the Alaska Real Estate                      
Association and the  Anchorage Real Estate Association do not                  
formally object to this bill.  Representative Rokeberg said he had             
also been concerned about such businesses as investment bankers and            
broker/dealers, which use arbitration as a rule, but that there can            
be an addendum or separate recitation of this language in their                
agreements, rather than creating a separate form.                              
                                                                               
CHAIRMAN GREEN asked whether the objection was maintained.                     
                                                                               
REPRESENTATIVE BERKOWITZ said yes.                                             
                                                                               
Number 2341                                                                    
                                                                               
CHAIRMAN GREEN requested a roll call vote, then noted that there               
was no quorum.  He called an at-ease.                                          
                                                                               
TAPE 98-89, SIDE A                                                             
Number 0006                                                                    
                                                                               
CHAIRMAN GREEN called the meeting back to order at 6:55 p.m.,                  
following an at-ease of approximately 45 minutes.  Present were                
Representatives Porter, Rokeberg, James and Green.                             
                                                                               
REPRESENTATIVE ROKEBERG renewed his motion to move CSSB 319(RLS),              
as amended, from committee with individual recommendations and                 
attached zero fiscal note.                                                     
                                                                               
CHAIRMAN GREEN asked whether there was any objection.  There being             
none, HCS CSSB 319(JUD) moved from the House Judiciary Standing                
Committee.