SENATE BILL NO. 186                                                          
                                                                               
       "An Act relating to partnerships; amending Alaska Rules                 
       of  Civil Procedure  20  and 24;  and providing  for an                 
       effective date."                                                        
                                                                               
  BILL EZZELL, PARTNER,  DELOITTE &  TOUCHE LLP testified  via                 
  the teleconference network.  He spoke  in support of SB 186.                 
  (Mr.  Ezzell's complete  written remarks are  on file.)   He                 
  noted   that  41   states  have  passed   limited  liability                 
  partnership (LLP) legislation.   He noted that  in a general                 
  partnership, all the partners are  personally liable for all                 
  the obligations of the partnership and for damages caused by                 
  the actions of any other partner acting  in the scope of the                 
  partnership business.  In a LLP, a partner is not personally                 
  liable  for those  partnership  obligations  arising out  of                 
  negligence, wrongful acts,  wrongful omissions,  malpractice                 
  or   misconduct   committed  by   another  partner   of  the                 
  partnership.  The partnership itself remains fully liable to                 
  the  extent of  its assets,  capital and  insurance for  the                 
  obligations  of  the partnership.    Personal assets  of the                 
                                                                               
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  partner or partners directly involved  in the negligent acts                 
  that  cause the  obligation  are not  protected  by the  LLP                 
  status.   The legislation  provides for  insurance or  other                 
  financial  assets  to be  set  aside to  substitute  for the                 
  personal assets  of any partner not involved in acts causing                 
  the obligation.                                                              
                                                                               
  Mr. Ezzell compared LLP's to limited liability corporations.                 
  He  maintained  that  other  forms  of organization  provide                 
  greater protections of personal assets of their owners.                      
                                                                               
  Representative Therriault observed that  similar legislation                 
  was passed on  limited liability for corporations.   Limited                 
  liability partnerships were not included.                                    
                                                                               
  Mr. Ezzell noted that protections offered  a partner are not                 
  as extensive  as protections afforded  a share  holder in  a                 
  limited liability company.  The  legislation would provide a                 
  similar form for partnerships.                                               
                                                                               
  Representative Martin MOVED to report CSSB 186  (L&C) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal  note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSSB 186  (L&C) was  reported out  of Committee  with a  "no                 
  recommendation"  and  with  a  fiscal  impact  note  by  the                 
  Department  of  Commerce  and  Economic  Development,  dated                 
  3/18/96.