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 319(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.