Legislature(1997 - 1998)
04/11/1997 05:09 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 58 CIVIL ACTIONS/ATTY FEES/INSURANCE
Vice-Chair Phillips took testimony via statewide
teleconference between 5:00 P.M. and 7:30 P.M. After a
brief recess, COCHAIR SHARP reconvened the meeting to
take up amendments. SENATOR TORGERSON MOVED Amendment
an Amendment to Amendment #1. Without objection, the
Amendment to Amendment #1 was ADOPTED. There was no
further objection, and Amendment #1 was ADOPTED.
SENATOR TORGERSON MOVED Amendment #2. COCHAIR SHARP
objected. Amendment #2 FAILED by a 3 to 4 vote.
SENATOR ADAMS did not offer Amendment #3. Amendment #4
was not offered. SENATOR DONLEY MOVED Amendment #5.
Objection was heard. Amendment #5 FAILED by a 2 to 5
vote. SENATOR DONLEY MOVED Amendment #6. SENATOR
DONLEY MOVED an Amendment to Amendment #6. SENATOR
TORGERSON objected. SENATOR DONLEY MOVED to amend the
Amendment to Amendment #6. Without objection, it was
ADOPTED. There being no further objection, Amendment
offer Amendment #7. SENATOR DONLEY MOVED Amendment #8.
COCHAIR PEARCE objected. SENATOR DONLEY withdrew
Amendment #8 without objection. SENATOR ADAMS MOVED
Amendment #9. COCHAIR PEARCE objected. Amendment #9
FAILED by a 2 to 5 vote. SENATOR ADAMS MOVED Amendment
a 2 to 5 vote. SENATOR ADAMS MOVED Amendment #11.
SENATOR TORGERSON objected. Amendment #11 FAILED by a
2 to 5 vote. SENATOR ADAMS MOVED Amendment #12.
Objection was heard. Amendment #12 FAILED by a 2 to 5
vote. SENATOR ADAMS MOVED Amendment #13. COCHAIR
PEARCE objected. Amendment #13 FAILED by a 2 to 5
vote. SENATOR ADAMS MOVED Amendment #14. COCHAIR
PEARCE objected. Amendment #14 FAILED by a 1 to 6
vote. SENATOR ADAMS MOVED Amendment #15. SENATOR
TORGERSON objected. Amendment #15 FAILED by a 2 to 5
vote. SENATOR ADAMS MOVED Amendment #16. SENATOR
PARNELL objected. Amendment #16 failed by a 2 to 4
vote. SENATOR ADAMS did not offer Amendment #17.
SENATOR ADAMS MOVED Amendment #18. COCHAIR PEARCE
objected. Amendment #18 FAILED by a 1 to 6 vote.
SENATOR PARNELL MOVED Amendment #19. SENATOR TORGERSON
objected. Amendment #19 was ADOPTED by a 6 to 1 vote.
SENATOR PARNELL MOVED Amendment #20. COCHAIR SHARP
objected then withdrew his objection. Without further
objection, Amendment #20 was ADOPTED. SENATOR
TORGERSON MOVED SCSCSSSHB 58(FIN) from committee with
individual recommendations. SENATOR ADAMS objected.
By a vote of 6 to 1, SCSCSSSHB 58(FIN) was REPORTED OUT
with previous zero fiscal notes from the Department of
Law and the Department of Commerce and Economic
Development, fiscal notes from the Judicial Council
(26.5) and the Court System (19.4) and a new zero
fiscal note from the Department of Administration.
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 58(FIN) am
"An Act relating to civil actions; relating to independent
counsel provided under an insurance policy; relating to
attorney fees; amending Rules 16.1, 41, 49, 58, 68, 72.1,
82, and 95, Alaska Rules of Civil Procedure; amending Rule
702, Alaska Rules of Evidence; and amending Rule 511, Alaska
Rules of Appellate Procedure."
VICE-CHAIR PHILLIPS announced that teleconferenced testimony
would be limited to two minutes per person. He invited
Representative Porter, Sponsor of HB 58, to address the
committee.
REPRESENTATIVE PORTER kept his remarks brief, stating it was
more relevant to say what the bill did not do as opposed to
what it did. It did not limit economic damage recovery.
The three avenues of request for recovery for a person who
had been injured or had property damage were economic
damages, non-economic damages and punitive damages. He
provided additional detail and gave examples. He pointed
out that non-economic damages were capped at $300 thousand
but could go to $500 thousand in exceptional cases and
punitive damages were capped at three times compensatory
damages or $300 thousand, whichever was greater up to $600
thousand and four times compensatory damages in extreme
cases. REPRESENTATIVE PORTER stated that the bill did not
affect Workers Compensation cases and then concluded his
introduction.
The presence of Senators Donley and Parnell was noted.
SENATOR ADAMS stated that the legislation did not allow for
fair and just compensation for Alaskans because it did not
favor the injured party, but instead favored businesses. He
continued by stating that the belief that insurance rates
would go down as a result was a myth. REPRESENTATIVE PORTER
spoke to the issue of insurance rates, pointing out that
they were regulated by the state and companies are asked to
justify their rates based on experience in paying claims.
The inability to lower rates immediately was because current
cases had to be tried and compensated under existing law,
which could take up to ten years.
VICE-CHAIR PHILLIPS called for statewide teleconference
testimony next. The following individuals testified.
Valdez:
JAMES CULLEY, CEO, Valdez Community Hospital: Support
MIKE LOPEZ, Fisherman: Oppose
Ketchikan:
DAVID JOHNSON, M.D., Alaska State Medical Association:
Support
Cordova:
CHERI SHAW, Cordova District Fishermen United: Oppose
COLLETTE PETIT: Oppose
AMY BROCKERT, Eyak Village Corporation: Oppose
JACK HOPKINS: Oppose
CHRISTINE HONKOLA: Oppose
ROSS MULLINS: Oppose
LINDEN O'TOOLE: Oppose
DENNY WEATHERS: Oppose
ROXY ESTES: Oppose
Kenai:
JOHN SIVELY, Kenai Central Labor Council: Oppose
ROBERT COWAN: Oppose
End SFC-97 #99, Side 1, Begin Side 2
PHIL SQUIRES: Oppose
SUSAN ROSS: Oppose
HUGH TORDOFF: Oppose
Mat-Su:
ROBERT MARTINSON: Oppose
DAVID GLEASON: Oppose
Sitka:
JANET LEEKLEY KISARAUSKAS: Support
Kodiak:
CHRIS BERNS: Oppose
The presence of Senator Donley was noted.
Anchorage:
KAREN COWART, Alaska Alliance: Support
COLIN MAYNARD, Professional Design Council: Support
STEPHEN CONN: Oppose
FRANK DILLON; Alaska Trucking: Support
DICK CATTANACH: Support
MONTY MONGTOMERY, Associated General Contractors: Support
KEVIN MORFORD: Oppose
RANDY RUEDRICH: Support
LES GARA, AKPIRG Board Member: Oppose
AL TAMAGNI: Support
STEVE BORELL, Executive Director; Alaska Miners Assn.:
Support
Fairbanks:
RICHARD HARRIS, Geologist: Support
The following individuals testified in person in Juneau.
JIM JORDAN, Executive Director, Alaska Medical Association:
Support CYNTHIA BROOKE, M.D., Anchorage: Support
End SFC-97 #99, Side 2
Begin SFC-97 #100, Side 1
KEVIN SMITH, Risk Manager, Alaska Municipal League: Support
CHRISTY TENGS FOWLER, Haines: Support
The presence of Cochair Sharp, Senators Torgerson and
Parnell was noted.
PAMELA LA BOLLE, Alaska State Chamber of Commerce: Support
MICHAEL LESMEIER, State Farm Insurance: Support
After a brief recess, COCHAIR SHARP reconvened the meeting
to take up amendments.
SENATOR TORGERSON MOVED Amendment #1. He explained that the
amendment clarified that the legislation would not affect
existing litigation taken in the Exxon Valdez case. SENATOR
ADAMS objected. SENATOR TORGERSON MOVED an Amendment to
Amendment #1 relating to maritime law. Without objection,
the Amendment to Amendment #1 was ADOPTED.
COCHAIR SHARP asked for comments from the bill sponsor.
REPRESENTATIVE PORTER welcomed the amendment and had no
problem with it.
There was no further objection, and Amendment #1 was
ADOPTED.
SENATOR TORGERSON MOVED Amendment #2. COCHAIR SHARP
objected. SENATOR TORGERSON explained the amendment.
REPRESENTATIVE PORTER spoke in opposition, as did SENATOR
DONLEY.
End SFC-97 #100, Side 1, Begin Side 2
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Phillips, Torgerson, Adams
OPPOSED: Donley, Parnell, Sharp, Pearce
Amendment #2 FAILED by a 3 to 4 vote.
SENATOR ADAMS did not offer Amendment #3.
Amendment #4 was not offered because it was identical to
Amendment #1 which had been adopted.
SENATOR DONLEY MOVED Amendment #5 and explained that the
amendment related to limited immunity for emergency room
doctors. Objection was heard. REPRESENTATIVE PORTER spoke
to the amendment. Although he philosophically agreed, he
opposed the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Donley, Adams
OPPOSED: Torgerson, Parnell, Phillips, Pearce, Sharp.
Amendment #5 FAILED by a 2 to 5 vote.
SENATOR DONLEY MOVED Amendment #6. SENATOR DONLEY MOVED an
Amendment to Amendment #6. SENATOR TORGERSON objected.
SENATOR DONLEY explained that the amendment related to
posting notice of limited liability. There was lengthy
discussion, with support expressed by SENATORS ADAMS and
TORGERSON. SENATOR DONLEY MOVED to amend the Amendment to
Amendment #6. Without objection, it was ADOPTED. There
being no further objection, Amendment #6, as amended, was
ADOPTED.
SENATOR DONLEY did not offer Amendment #7.
SENATOR DONLEY MOVED Amendment #8. COCHAIR PEARCE objected.
SENATOR DONLEY explained the amendment. There was lengthy
discussion between SENATOR DONLEY, COCHAIRS PEARCE and SHARP
and REPRESENTATIVE PORTER concerning the effect of the
amendment. SENATOR DONLEY withdrew Amendment #8 without
objection.
SENATOR ADAMS MOVED Amendment #9 which repealed the statute
of repose. COCHAIR PEARCE objected. REPRESENTATIVE PORTER
spoke to the amendment and discussion continued.
End SFC-97 #100, Side 2
Begin SFC-97 #101, Side 1
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Donley
OPPOSED: Torgerson, Parnell, Phillips, Pearce, Sharp
Amendment #9 FAILED by a 2 to 5 vote.
SENATOR ADAMS offered Amendment #9B and explained that it
was a one word change. COCHAIR SHARP declared the amendment
out of order.
SENATOR ADAMS MOVED Amendment #10, explained that it changed
the term "hazardous waste" to "hazardous substance" and gave
examples. COCHAIR PEARCE objected. REPRESENTATIVE PORTER
spoke to the amendment and concluded that "hazardous waste"
was inclusive and didn't need to be changed. A roll call
vote was taken on the MOTION to adopt Amendment #10.
IN FAVOR: Adams, Donley
OPPOSED: Parnell, Phillips, Torgerson, Pearce, Sharp
Amendment #10 FAILED by a 2 to 5 vote.
SENATOR ADAMS MOVED Amendment #11. SENATOR TORGERSON
objected. SENATOR ADAMS explained that the amendment
deleted the new caps on non-economic damages. A roll call
vote was taken on the MOTION to adopt Amendment #11.
IN FAVOR: Donley, Adams
OPPOSED: Phillips, Torgerson, Parnell, Pearce, Sharp
Amendment #11 FAILED by a 2 to 5 vote.
SENATOR ADAMS MOVED Amendment #12. Objection was heard.
SENATOR ADAMS explained that the amendment changed "and" to
"or" concerning the standards for higher punitive damages.
REPRESENTATIVE PORTER spoke in opposition to the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams
OPPOSED: Phillips, Donley, Torgerson, Parnell, Pearce, Sharp
Amendment #12 FAILED by a 1 to 6 vote.
SENATOR ADAMS MOVED Amendment #13. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment deleted the
section related to collateral benefits. Some discussion was
had between SENATORS DONLEY, ADAMS and REPRESENTATIVE PORTER
. A roll call vote was taken on the MOTION to adopt
Amendment #13.
IN FAVOR: Donley, Adams
OPPOSED: Torgerson, Parnell, Phillips, Pearce, Sharp
Amendment #13 FAILED by a 2 to 5 vote.
SENATOR ADAMS MOVED Amendment #14. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment cleared up
language related to expert witness qualifications of the
bill. A roll call vote was taken on the MOTION to adopt
Amendment #14.
IN FAVOR: Adams
OPPOSED: Donley, Torgerson, Parnell, Phillips, Pearce, Sharp
Amendment #14 FAILED by a 1 to 6 vote.
SENATOR ADAMS MOVED Amendment #15. SENATOR TORGERSON
objected. SENATOR ADAMS explained the amendment. A roll
call vote was taken on the MOTION to adopt Amendment #15.
IN FAVOR: Adams, Donley
OPPOSED: Parnell, Phillips, Torgerson, Sharp, Pearce
Amendment #15 FAILED by a 2 to 5 vote.
SENATOR ADAMS MOVED Amendment #16. SENATOR PARNELL
objected. SENATOR ADAMS described the amendment concerning
offers of settlement prior to litigation. REPRESENTATIVE
PORTER commented on the amendment, stating it would not be
prudent. Additional discussion was had between he, SENATORS
ADAMS, DONLEY and PARNELL. A roll call vote was taken on
the MOTION to adopt Amendment #16.
IN FAVOR: Adams, Donley
OPPOSED: Phillips, Torgerson, Parnell, Sharp
Amendment #16 failed by a 2 to 4 vote.
SENATOR ADAMS did not offer Amendment #17, but did provide a
brief description.
SENATOR ADAMS MOVED Amendment #18. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment would set up a
pilot program for alternative dispute resolution to help
streamline the justice system. REPRESENTATIVE PORTER spoke
against the amendment. A roll call vote was taken on the
MOTION to adopt Amendment #18.
IN FAVOR: Adams
OPPOSED: Phillips, Donley, Torgerson, Parnell, Pearce, Sharp
Amendment #18 FAILED by a 1 to 6 vote.
SENATOR PARNELL MOVED Amendment #19. SENATOR TORGERSON
objected. SENATOR PARNELL explained that the amendment
deleted periodic payments of a settlement. REPRESENTATIVE
PORTER opposed the amendment. A roll call vote was taken on
the MOTION to adopt Amendment #19.
IN FAVOR: Donley, Parnell, Adams, Phillips, Pearce, Sharp
OPPOSED: Torgerson
Amendment #19 was ADOPTED by a 6 to 1 vote.
SENATOR PARNELL MOVED Amendment #20. COCHAIR SHARP objected
for the purpose of discussion. SENATOR PARNELL explained
the amendment which related to reckless conduct.
End SFC-97 # 101, Side 1, Begin Side 2
COCHAIR SHARP withdrew his objection. Without further
objection, Amendment #20 was ADOPTED.
COCHAIR SHARP announced there were no further amendments and
requested the pleasure of the committee.
SENATOR TORGERSON MOVED SCSCSSSHB 58(FIN) from committee
with individual recommendations. SENATOR ADAMS objected. A
roll call vote was taken on the MOTION to report the bill
from committee.
IN FAVOR: Parnell, Phillips, Donley, Torgerson, Pearce,
Sharp
OPPOSED: Adams
By a vote of 6 to 1, SCSCSSSHB 58(FIN) was REPORTED OUT with
previous zero fiscal notes from the Department of Law and
the Department of Commerce and Economic Development, fiscal
notes from the Judicial Council (26.5) and the Court System
(19.4) and a new zero fiscal note from the Department of
Administration.
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