HB 41: CIVIL LIABILITY FOR SKIING ACCIDENTS Number 065 CHAIRMAN HUDSON announced his intention to hear HB 41 but not pass it out until committee members had a chance to see what the other body would do with its version. The Chairman also announced his intention to appoint a subcommittee to look at the bill and come up with a committee substitute to pass out of committee. CHAIRMAN HUDSON directed the committee's attention to two pieces of proposed legislation that he wanted the committee to look at for possible sponsorship. The first piece was requested by the Department of Labor and concerned increasing the size of the labor relations board by two. The second item was a bill concerning the liability of certain security interest holders. Number 080 REP. GAIL PHILLIPS testified as the PRIME SPONSOR OF HB 41. She noted three key areas in the bill: 1) HB 41 requires that ski area operators safely and efficiently operate ski areas; 2) HB 41 makes ski area operators liable for their negligence; and 3) HB 41 requires skiers to take responsibility for the inherent risks of skiing. Number 113 BRUCE RIZER testified via teleconference from Anchorage in opposition to HB 41. He related the circumstances surrounding the death of his son in 1991 in a skiing accident at Seibu/Alyeska Ski Resort. Mr. Rizer indicated that Seibu has had four deaths at the resort since they have taken over from Alaska Airlines. Mr. Rizer noted a recent study showing there was approximately one skiing death in 1,000,000 visits on average nationwide. He further stated that Seibu had 43,000 visits last year and, therefore, it should have taken them another 23 years before the first death. MR. RIZER also outlined court cases involving the liability of ski area operators and the responsibilities of the skier. Number 215 LEROY CABANA testified via teleconference against HB 41. Mr. Cabana felt that the bill would take away any responsibility on the part of the resorts to take extra care. Number 293 REP. JERRY MACKIE noted that there were some safety provisions in the bill and he wanted the witness to communicate in writing where he felt the bill was lacking. CHAIRMAN HUDSON pointed out that HB 41 was a working document and if there were any amendments to the bill he would like them to be faxed to his office. Number 384 RHONDA SCOTT testified via teleconference in opposition to HB 41 as it stood. She felt the bill allowed complete immunity to management and that consumers, if injured, should have legal recourse. Number 398 MARC BOND, LEGAL COUNSEL FOR ALYESKA SKI RESORT, testified via teleconference in favor of HB 41. He explained that the bill, as it stood, was an attempt to provide a reasonable list of specific duties that the ski area operator could reasonably undertake. Mr. Bond further commented that the sport of skiing can never be made 100 percent safe. MR. BOND said that the bottom line was that the ski area operator's duties are to provide warnings about certain hazards and the skier must take personal responsibility for the risks that could not be reasonably removed. Number 422 REP. BRIAN PORTER inquired if the definition of "inherent risks" that appeared on page 12, line 7, of the bill was the same definition used in the Colorado law. MR. BOND replied in the affirmative. Number 439 BILL ELANDER OF THE ANCHORAGE CONVENTION AND VISITORS BUREAU, testified via teleconference in support of HB 41. Mr. Elander noted that the board of directors sent the committee a resolution from the industry stating that they do recognize that the sport of skiing has inherent risks. Number 472 STEVE RUMME, PRESIDENT OF THE ALASKA SKI AREAS ASSOCIATION AND GENERAL MANAGER OF HILLTOP SKI RESORT, testified via teleconference in support of HB 41. Mr. Rumme observed that there was no way to make skiing absolutely safe. He said he was concerned that if this legislation was not passed, many of the smaller ski areas may have to close under the increasing insurance burden. Number 531 RALPH NOGAL, PRESIDENT OF THE ALASKA HOTEL/MOTEL ASSOCIATION, testified from the Anchorage teleconference site that he concurred with the preceding speaker in supporting the legislation. He said HB 41 would definitely increase economic development and tourism in the state because it would put the state's skier liability laws on equal footing with those of the Western states. Mr. Nogal asserted that Alaska would then be able to compete with the other states and even Canada. Number 545 THOMAS McCANN, REPRESENTING THE ALASKA SKI AREAS ASSOCIATION, AND OWNER OF CLEARY SUMMIT, stated via teleconference that skiing had changed dramatically in the last 30 years. Recent mandatory insurance and state control have pressured his small ski area to the point where they may not stay in business. Mr. McCann hoped that the laws would be changed to effect a more stable insurance environment. Number 557 CHAIRMAN HUDSON inquired about insurance costs for small ski resorts. MR. McCANN responded that his costs have gone from zero to $20,000 a year. Number 567 DAVE LOWE, testified from Anchorage that he has been an active skier for the past 40 years and is involved in the national ski patrol. Mr. Lowe stated he recognized that there was a need to share responsibility between management and the skier. Mr. Lowe's concern was that HB 41 would eliminate too much of the liability of the ski area. Mr. Lowe further stated that he would support a bill that more clearly defined the responsibility of both the ski area and the individual skiers. Number 597 CHAIRMAN HUDSON commented that the committee was looking for the balance between the responsibility of the operators and the people who use the ski areas. Number 607 SUSAN LOWE testified via teleconference that she was opposed to HB 41. She felt the bill takes too much responsibility away from the operators. She would like to see the bill reworked and reworded to provide adequate safety for the skiers. Ms. Lowe added that the public also needed to be educated as to the risks of skiing. TAPE 4, SIDE B Number 085 REP. ELDON MULDER asked if Ms. Lowe had any specific ideas for safety requirements the committee could consider for inclusion in HB 41. MS. LOWE did not have any specific areas to address. Number 170 LEX PATTEN OF THE ALYESKA SKI CLUB, testified via teleconference that he supported HB 41. He expressed three points in favor of the bill: 1) skiers use the natural conditions (not groomed) to improve their skills; 2) HB 41 would reduce the cost to the skiers; and 3) he felt that the operators consider safety their number one concern. Number 259 MIKE GRANDINETTI, RISK MANAGER AND SAFETY DIRECTOR AT ALYESKA SKI RESORT, testified for the record (via teleconference) that there has been only one death at Alyeska since Seibu purchased the resort and there are also over 145,000 skiers per year. MR. GRANDINETTI noted that the industry has been enjoying a soft insurance market recently, but all indications are that the market will tighten up in the next year or so. He believed Alyeska would be able to withstand this increase, but the smaller areas would be hit pretty hard. Number 291 SCOTT FISHER, OWNER OF THE FOGGY MOUNTAIN SHOP IN JUNEAU, testified in support of HB 41. Mr. Fisher said he has had extensive experience skiing at over 20 different resorts around the country and he finds the safety features in Alaska to be high quality. Mr. Fisher stated his belief that ski area operators could not make skiing totally safe and should not be required to do so. To do so would only make skiing more expensive and put it out of the realm of the average family. Number 364 DON HITCHCOCK, DIRECTOR OF THE DIVISION OF RISK MANAGEMENT, DEPARTMENT OF ADMINISTRATION, stated that the official position of the Division was neutral. The Division's concern was that under HB 41 as written, the Department of Natural Resources would be held to the same liability standards as the ski area operators when cross-country skiers used state land with or without sanction. Mr. Hitchcock noted that the committee substitute (CS) for the Senate version of the bill alleviated this problem by exempting cross-country skiing. Number 382 REP. MACKIE inquired if someone from the Department of Labor could explain what types of regulations there would be under AS 5.20.070 to deal with violations that constitute negligence. Number 393 MITCH GRAVO, LOBBYIST, responded from the audience that the Department of Labor would be responsible for promulgating the regulations needed to administer this bill. REP. MACKIE suggested a more detailed definition of negligence. CHAIRMAN HUDSON added that he believed HB 41 may very well need some definitions in the final legislation. Number 424 REP. MULDER inquired whether, under the bill, an operator was not required to post a warning sign by catwalks, roads or stumps because they are considered inherent risks. MR. GRAVO responded that under HB 41 that was not covered, but the CS the Senate passed out addressed this point. Number 448 TOM DREYER testified from Anchorage that he supported HB 41. He felt that willing participants in the sport should take the responsibility for the inherent risks. Number 470 REP. JOE GREEN commented that he favored the concept of HB 41, but he was concerned anytime "you waive your legal recourse." He further suggested that his concern in trying to pin down every definition and area of responsibility in the bill would open a Pandora's box. Number 513 CHAIRMAN HUDSON appointed three members to a subcommittee to look at HB 41 and come back with recommendations: Rep. Mulder as chairman, Rep. Porter and Rep. Mackie.