HB  75-OWNER & CONTRACTOR CONTROLLED INSURANCE                                                          
                                                                                                                                
3:16:22 PM                                                                                                                    
                                                                                                                                
CHAIR     SUMNER     announced       that    the    first     order     of  business       would     be                         
HOUSE     BILL     NO.   75,    "An    Act    relating       to   coverage       for    additional                              
insureds         under       owner       and      contractor          controlled          insurance                             
programs; and providing for an effective date."                                                                                 
                                                                                                                                
3:16:51 PM                                                                                                                    
                                                                                                                                
LORI     WING-HEIER,         Director,         Juneau      Office,       Alaska      Division        of                         
Insurance,         Department          of     Commerce,        Community,          and     Economic                             
Development,          introduced        HB   75    on   behalf      of    the    sponsor,       House                           
Rules     by   request      of   the    governor.         She    stated     that    in   the    State                           
of    Alaska,       projects        costing       over      $50     million       and     having      a                         
defined      geographic        location       and    time     frame     are    eligible       for    an                         
owner      controlled         insurance         program       or     contractor         controlled                              
program.         The    significance         of   this     is   that    it   allows      the    owner                           
or    contractor         to    buy     the    insurance        for     all     contractors         and                          
subcontractors          working      on   the    project,       usually      including       general                            
liability,         professional          liability,         and     workers'       compensation.                                
She    said     that     this    allows      contractors         to    keep    insurance        costs                           
down    and    helps     prevent      "unnecessary         litigation."          She    added     that                          
there     would     be   an    amendment       to   further       clarify      the    language       of                         
the bill.                                                                                                                       
                                                                                                                                
3:19:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE           PRAX    asked      if   it    would     be    worthwhile        to   reduce                            
the $50 million threshold.                                                                                                      
                                                                                                                                
MS.    WING-HEIER        answered       that    some    projects       would     likely      benefit                            
from     that,     although       the    bill     is   intended        to   clarify       statutory                             
language        and    changing        the    threshold         was    not     considered         when                          
writing it.                                                                                                                     
                                                                                                                                
CHAIR SUMNER announced that HB 75 was held over.