03/31/1994 01:40 PM Senate L&C

 SENATOR KELLY brought  SB 348  (LIMITED LIABILITY PARTNERSHIPS)               
 before the committee as the final order of business.                          
                                                                               
 CRAIG INGHAM, representing the Alaska Bankers Association and                 
 testifying from Fairbanks, stated their opposition to SB 348.  The            
 legislation would change the Limited Partnership Act, which has               
 been adopted by the State of Alaska, by providing for an exception            
 as to joint and civil liability of partners.  The association feels           
 that with the bill, in its current form, poses significant risk to            
 the general public who may be doing business with a registered                
 limited liability partnership.  The association also believes that            
 the law could be interpreted quite broadly and could result in the            
 partnership being able to deplete the access of the partnership and           
 leave creditors high and dry.                                                 
                                                                               
 Number 248                                                                    
                                                                               
 ROD LIND, Alaska Society of CPA's, testifying from Anchorage, said            
 a limited liability partnership is, in fact, a general partnership            
 with one change, and that change is that a partner in a limited               
 liability partnership is not personally liable for the misconduct             
 of another partner.  The partnership itself continues to be subject           
 to all claims.  He pointed out that no one from the public has                
 objected to this change, and he questioned if the banking community           
 should decide what form of business individuals can operate.                  
 Number 280                                                                    
                                                                               
 SENATOR KELLY stated that because committee members had other                 
 committee meetings to attend, SB 348 would be back before the                 
 committee at its next meeting.                                                
                                                                               
 There being no further business to come before the committee, the             
 meeting was adjourned at 3:35 p.m.