Legislature(1993 - 1994)
02/04/1993 01:40 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATOR KELLY introduced SB 52 (GUIDE-OUTFITTER AIRCRAFT INSURANCE) and invited the prime sponsor, SENATOR BERT SHARP, to testify. Before SENATOR SHARP'S testimony, SENATOR KELLY distributed a committee substitute which would drop out the old first Section 1 of the bill. SENATOR SHARP explained SB 52 would limit the requirement for liability insurance for registered guides doing their own flying, who guide 5 or less hunts a year and transport clients by aircraft less than thirty hours a year. He also explained the current insurance requirements are costly, and overly burdensome, for small guide outfitters, particularly those who conduct just a few hunts a year in the family airplane. SENATOR SHARP asked consideration for the adoption of the committee substitute. SENATOR KELLY called on KARL LUCK, director of the Division of Occupational Licensing to testify. Number 073 MR. LUCK limited his comments to Section 2 of the bill citing eighteen guide-outfitters who would fall into the category as determined by the bill. He said it would be a limited problem for the state to track and follow the flight time, but might present some liability for the state. He expressed concern over the message to the prospective hunter to let them know they would not covered. SENATOR RIEGER asked for additional information on tracking some details. MR. LUCK explained how his department would be tasked by various responsibilities to follow the application of the legislation to a guides's contract, performance, or record. SENATOR KELLY opened the teleconference and asked CHUCK GRAY of Fairbanks to testify. Number 120 MR. GRAY testified in support of the bill and mentioned the department's problem with record keeping could be solved by accepting the hunt records from the guide-outfitter. He said the camp and aircraft insurance has raised the overhead expenses to the cost of the revenue from one hunt. MR. GRAY claimed the small guide-outfitters offer the highest quality hunts, and that he had hunted for 35 years without insurance. He said he was going to give up hunting this year if the insurance requirements remained in effect. Also from Fairbanks was SANDY JAMIESON, who testified, as a 20 year guide, didn't get insurance until it was required. He described being in a crunch with insurance, fees, reallocation of guide areas, and the strict limitation on the number of hunts. He asked for the flexibility of doing without insurance. Number 186 SENATOR RIEGER asked the guides who just testified from Fairbanks about the insurance disclaimer being buried in the fine print of the contract, and asked if they had any problem of having it prominently displayed. MR. JAMIESON suggested having it in bold print on the hunt record. He said most of his clients were European, provide their own insurance, and prefer not to pay for other client's insurance. DAVID MORRIS from Fairbanks also supported the bill. He described how the increased restrictions and overhead costs had limited his profits. He thought, if the guides had gotten along without any restrictions for years, why they needed them now. MR. MORRIS wanted to eliminate both the aircraft and the camp insurance. Number 225 SENATOR KELLY called on KIM DANIELS, Executive Director for the Alaska Air Carriers Association, from Anchorage. MS DANIELS testified on behalf of the association membership in strong opposition to SB 52, and gave some history about the need for continued liability insurance by all carriers. She referred to the testimony from MR. GRAY, who indicated a willingness to take chances without carrying insurance, and said the association members felt an obligation to see that all passengers traveling in Alaska are given the necessary insurance protection. MS DANIELS thought Section 2 would give an unfair competitive advantage to the guides and outfitters exempted from the insurance requirements. SENATOR RIEGER moved to amend SB 52, and he suggested on page 1, line 14 "prominently displayed" should be inserted before the word statement. On the second page, line 3, after subsection he moved to add the words for purposes of the subsection, prominently displayed means, in bolder face type than the other type used in the main text of the contract on the front page of the contract. Without objections, it was placed in the new committee substitute. SENATOR KELLY asked for the adoption of the amended committee substitute. Number 259 SENATOR RIEGER moved to adopt CS FOR SENATE BILL NO. 52(L&C) as amended. Without objections, so ordered. SENATOR PEARCE indicated her lack of support for the bill, and SENATOR RIEGER wanted to review the testimony. SENATOR KELLY said the bill would be held for the next committee meeting on 2/9/93. SENATOR PEARCE asked the staff to work with the sponsor and the air carriers to determine the actual costs of liability insurance in the $100 thousand per seat range. She expressed concern about allowing any aviation transportation for pay to happen without liability coverage. SENATOR KELLY asked MR. FINK to work on the request.
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