House Judiciary Committee reports out bill to add inflation adjustment to non‑economic damages cap

ANCHORAGE — The House Judiciary Committee on March 13 advanced House Bill 316, which would add an inflation‑adjustment mechanism to the non‑economic damages cap that applies in personal‑injury and wrongful‑death cases.

Chair Representative Grama opened the item and asked a committee aide to summarize the measure. Dilnitschek Lopez, committee aide, told lawmakers the bill "adds [an] adjustment mechanism to the non‑economic damages cap for personal injury and wrongful deaths," explaining those damages include pain and suffering and loss of consortium and that the proposal aims "to bring the non‑economic damages cap in balance with inflation." She said the language was drafted to reflect the original legislature’s intent to balance civil‑justice efficiency with Alaskans’ ability to recover meaningful compensation.

Representative Vance asked why the bill uses the particular inflation mechanism chosen — described in committee as a 100%‑of‑change approach — and Lopez replied that Legislative Legal reviewed other Alaska statutory mechanisms and recommended this one as consistent with existing statutory schemes.

Committee discussion also addressed the context for the change. Representative Beisheide, citing insurance industry opposition documented in the committee packet, listed recent CEO compensation figures for major insurers to underscore his view that insurers have substantial resources. Chair Grama added that litigation filing costs and fees have risen with inflation while damage caps have remained static, creating what the chair called an imbalance the bill seeks to correct.

A committee member moved that HB 316 "be reported out of the House Judiciary Committee with individual recommendations and attached fiscal notes." Hearing no objection, Chair Grama reported the bill out of committee and authorized Legislative Legal Services to make technical and conforming changes.

Next steps: Committee staff recorded that the amendment deadline for HB 316 had passed (March 11) with no amendments filed; Legislative Legal Services will prepare any technical changes before the bill moves on to the next legislative step.