Legislature(2009 - 2010)BARNES 124
04/09/2009 10:15 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB207 | |
| Confirmation(s) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 207 | TELECONFERENCED | |
HB 207-MAXIMUM BENEFIT FROM FISHERMEN'S FUND CHAIR EDGMON announced that the first order of business would be HOUSE BILL NO. 207, "An Act increasing the allowances for injury, disability, or heart attack payable from the fisherman's fund; and providing for an effective date." 10:21:00 AM JOHN BITNEY, Staff to Representative John Harris, Alaska State Legislature, introduced HB 207, paraphrasing from the sponsor statement, which read as follows [original punctuation provided]: The Alaska Fisherman's Fund was established [in] 1951 to provide for the treatment and care of Alaska licensed commercial fishermen and crew who have been injured while fishing on shore or off shore in Alaska. The upper limit on claims in the fund has been $2,500 since 1959. If $2,500 in 1959 dollars was adjusted for the Consumer Price Index, it would be worth approximately $18,229.64 today. While the limitation in state law has remained unchanged, health care costs have steadily risen. Access to health insurance and health care is a concern among fishermen and especially presents an obstacle to younger fishermen who are seeking to continue as the next generation in Alaska's sustainable fisheries. HB 207 updates the Alaska Fishermen's Fund limit to $10,000. This is intended to help ensure that Alaska's fishermen have better access to health care when injured while fishing. Updating the claim limit to $10,000 will bring this very worthwhile program back to providing a meaningful level of assistance as the payer of last resort for commercial fishermen and crew that sustain injuries or illness while fishing. The fund is financed from revenue received from each resident and nonresident commercial fisherman's license and permit fee. Commercial fishermen and crew members pay 39% - or up to $50 each - of their annual license fees into this account. In 2008, there were 13,706 commercial fishing permit holders who contributed to the fund. The account has grown to $11.5 million even as health care costs have risen, due in part to continuing improvements in fish industry safety. This increase is not projected to jeopardize the sustainability of the fund. MR. BITNEY relayed that the intent was to maintain the Fishermen's Fund, and he noted that claims can be adjusted accordingly if the number or price of claims increased. He emphasized that the intent was not to increase the fishermen's taxes. He explained that currently there are provisions for fishermen with extraordinary circumstances to request assistance for claims above the $2,500 limit. 10:23:41 AM REPRESENTATIVE KAWASAKI asked if there was going to be testimony about administration of the Fishermen's Fund's. 10:24:16 AM MR. BITNEY, in response to Representative Buch, stated that Kevin Adams, a commercial fisherman from Bristol Bay, furnished the idea for HB 207, and that there was also a companion bill in the Senate. 10:24:54 AM PAULA SCAVERA, Special Assistant, Office of the Commissioner, Department of Labor & Workforce Development (DLWD), deferred the testimony to Trena Heikes. 10:25:31 AM TRENA HEIKES, Director, Division of Workers' Compensation, Department of Labor & Workforce Development (DLWD), stated that DLWD was neutral on this bill, and that the $2500 limit on claims which had been in place since 1951 was equal to $27,000 in 2009 dollars. She relayed that the Fishermen's Fund balance was $11.4 million, and that the projected increased annual cost to the fund with a $10,000 limit would be $65,000. 10:26:38 AM REPRESENTATIVE KAWASAKI asked if the Fishermen's Fund was administered through the Division of Workers' Compensation, and how it differed from a general workers compensation payment. MS. HEIKES replied that the Alaska Workers' Compensation Act did not cover commercial fishermen, so this fund was established by the state. She pointed out that the Fishermen's Fund was financed from a percentage of the Commercial Fishing Crewmember licenses, and was administered by a Division of Workers' Compensation program manager. She reported that the Fishermen's Fund council, appointed by the governor, considered any claimant petitions over $2,500.00. MS. HEIKES, in response to Representative Kawasaki, said that the fund only paid for medical benefits. 10:28:21 AM REPRESENTATIVE KAWASAKI asked about the differences between the fund and workers' compensation. MS. HEIKES explained that worker's compensation benefits were usually paid by an insurance company, as every state employer must either be self-insured or carry workers compensation insurance, which included disability, medical, impairment, death, and vocational benefits. She reminded the committee that commercial fishermen were not eligible for workers' compensation benefits, and that the Fishermen's Fund only provided medical benefits. 10:29:52 AM REPRESENTATIVE KAWASAKI asked if the $11.4 million in the Fishermen's Fund was invested. MS. HEIKES replied that it was invested only to the same extent of any other state fund, as a sub account of the general fund, but that the interest was paid into the general fund. REPRESENTATIVE KAWASAKI asked about any impact to the Fishermen's Fund from an increase in the claim limit. He inquired about an increase in the fishermen contributions. MS. HEIKES replied that she was unaware of any legislation to increase a percentage of the licensing revenue paid into the Fishermen's Fund. She estimated an annual expense increase of $65,000. She detailed that the Fishermen's Fund received between $800,000 and $1 million annually, but that the prior four years had seen a slight deficit spending. She opined that there was still ample funding to provide for the claim limit increase. She shared that the Fishermen's Fund council had a concern, but that DLWD did not foresee any problem given the current status. 10:32:43 AM REPRESENTATIVE BUCH asked what the largest benefit payment was from the Fishermen's Fund. MS. HEIKES replied that two of the highest payments were $85,000 for the loss of an arm, and $162,000 for pneumonia which then resulted in congestive heart failure. 10:34:33 AM REPRESENTATIVE KAWASAKI inquired whether every commercial fisherman paid into the Fishermen's Fund. MS. HEIKES related that 39 percent of the Commercial Fishing Crewmember License fee was directed into the Fishermen's Fund. She clarified that any other insurance was used first, and the Fishermen's Fund was a fund of last resort. 10:35:14 AM REPRESENTATIVE KAWASAKI asked to clarify that the Fishermen's Fund would pay the benefit should a commercial fisherman lose a finger while working on a boat. MS. HEIKES agreed, and reiterated that there was not any workers' compensation coverage if the injury was directly related to commercial fishing. 10:35:46 AM CHAIR EDGMON opened public testimony. 10:36:06 AM PAUL SHADURA, Executive Director, Kenai Peninsula Fishermen's Association, testified that HB 207 offered additional coverage to the permit holders. 10:37:13 AM DAVE COBB, Business Manager, Valdez Fisheries Development Association, testified that the association supported HB 207 and shared that the Fishermen's Fund was self sustaining. He reported that the benefit payment had not been increased since 1959, although medical costs had increased. 10:38:41 AM GERALD McCUNE, Lobbyist, United Fishermen of Alaska (UFA), described the Fishermen's Fund and the fees that are contributed to the fund. He reiterated that this fund was a secondary insurance, but that the $2500 limit was too low. He opined that HB 207 with a $10,000 limit was "a good little compromise." 10:40:34 AM REPRESENTATIVE KAWASAKI offered his concern that contribution caps, rising numbers of uninsured fishermen, and an increased payout limit could lead to insolvency of the fund. He asked Mr. McCune if the commercial fishermen would support increased contributions to the fund. MR. McCUNE, in response to Representative Kawasaki, relayed that the Fishermen's Fund council also had concerns, which included the initial impact on the fund by this increase. He relayed that he spoke with the Commercial Fisheries Entry Commission (CFEC), as it also paid contributions into the Fishermen's Fund from the permit holders, and he asked for an analysis of the increased claim limit and of an increase in the fee contributions by fishermen to the fund. 10:42:54 AM REPRESENTATIVE KAWASAKI stated that an Emergency Room (ER) visit would generally exceed $2,500. CHAIR EDGMON pointed out that HB 207 stated up to $10,000, not a mandatory $10,000, and he predicted that the fund would be managed in a fiduciary way. MR. McCUNE mentioned that expenses in excess of $10,000 would require an appeal to the council. He reiterated that the Fishermen's Fund council would review the increased claim costs after one year, should HB 207 pass. 10:44:29 AM CHAIR EDGMON closed public testimony. 10:45:05 AM REPRESENTATIVE BUCH asked Ms. Heikes for more information regarding the two highest claims which she had mentioned previously. He expressed his interest in the process, not the medical history. MS. HEIKES explained that filing a claim was an informal process which requested compelling reasons for payment above the $2,500. She summarized that the Fishermen's Fund council would meet, review the claim with its medical bills and reports, and make a determination. 10:47:01 AM REPRESENTATIVE BUCH asked if all the payouts were determined in this way. MS. HEIKES affirmed that payments were based on receipt of the medical expenses, analysis of the medical diagnosis, and assessment of the statute. CHAIR EDGMON noted that Representative Munoz had arrived. 10:47:28 AM REPRESENTATIVE BUCH asked for the time frame from application to payout. MS. HEIKES replied that for the above mentioned two incidences the payouts were approved within six months of the occurrence. 10:48:03 AM CHAIR EDGMON reminded that HB 207 still had two other committees to pass through, and that there was a Senate companion bill. 10:48:35 AM REPRESENTATIVE KAWASAKI asked how many people requested the $2500 claim limit. MS. HEIKES replied that almost every claim was in excess of the $2,500 claim limit. She reiterated that an analysis of claims between $2500 and $10,000 during the last two years reflected an annual cost increase of $65,000 to the fund. 10:49:52 AM REPRESENTATIVE KELLER moved to report HB 207 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 207 was reported from the House Special Committee on Fisheries. 10:50:15 AM The committee took an at-ease from 10:50 a.m. to 10:52 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AdamsLtr--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
|
| ATA Letter--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
|
| HB207--Bill Packet.PDF |
HFSH 4/9/2009 10:15:00 AM |
HB 207 |
| Brent Johnson CV.PDF |
HFSH 4/9/2009 10:15:00 AM |
|
| HB207--Fiscal Note--DFG-CFEC-04-06-09.pdf |
HFSH 4/9/2009 10:15:00 AM |
HB 207 |
| CDFU Letter--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
|
| CassidyEmail--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
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| BabbLtr--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
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| Cordova Mssgs--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
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| BeaudoinLtr--Johnson.pdf |
HFSH 4/9/2009 10:15:00 AM |
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| BrandtLtr--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| Dept. of Labor Info.PDF |
HFSH 4/9/2009 10:15:00 AM |
HB 207 |
| HB207--Sponsor Statement.pdf |
HFSH 4/9/2009 10:15:00 AM |
HB 207 |
| Honea Mssg--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| IcicleLtr--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| McElroyMssg--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| KPFA Letter--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| MurrayLtr--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| RandaMssg--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| RiedelLtrRE--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| SEAS Letter--JohnsonJohnstone.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| TauriainenLtrRE--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| WGAFA Letter--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| ThompsonLtr--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |
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| UFA Letter--Johnson.PDF |
HFSH 4/9/2009 10:15:00 AM |