Legislature(2005 - 2006)CAPITOL 124

02/28/2005 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 19 PESTICIDE & BROADCAST CHEMICALS TELECONFERENCED
Moved CSHB 19(RES) Out of Committee
+= HB 26 SHORT-TERM COM FISHING CREWMEMBER LICENSE TELECONFERENCED
Moved CSHB 26(RES) Out of Committee
+ SJR 5 REAUTHORIZE METHANE HYDRATE RESEARCH ACT TELECONFERENCED
Moved HCS SJR 5(O&G) Out of Committee
Bills Previously Heard/Scheduled
HB  26-SHORT-TERM COM FISHING CREWMEMBER LICENSE                                                                              
                                                                                                                                
CO-CHAIR  SAMUELS  announced that  the  final  order of  business                                                               
would  be  HOUSE BILL  NO.  26  "An  Act relating  to  short-term                                                               
commercial  fishing crewmember  licenses;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
1:18:54 PM                                                                                                                    
                                                                                                                                
ADAM  BERG,  Staff to  Representative  Carl  Moses, Alaska  State                                                               
Legislature, told the committee that  HB 26 simply allows for the                                                               
purchase of  a seven-day  commercial fishing  crewmember license.                                                               
Currently a yearlong  license is $60 for a resident  and $180 for                                                               
a non-resident,  he said, and the  bill allows for a  $30, seven-                                                               
day license  for a resident or  non-resident.  He said  that this                                                               
will  maximize  options  for fishermen,  allowing  them  to  hire                                                               
short-term  help or  charge  tourists to  see  an Alaska  fishing                                                               
operation up-close and  hands-on.  He said that  often friends or                                                               
family will want to join the crew.                                                                                              
                                                                                                                                
1:19:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO   asked   for   comments   regarding   the                                                               
fisherman's fund.                                                                                                               
                                                                                                                                
MR. BERG  said that the original  version of the bill  would have                                                               
excluded short-term  license holders  from the  fisherman's fund,                                                               
and the  Department of Labor  (DOL) requested omitting that.   He                                                               
said he is not sure of the legal reasons.                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX  asked if  the vessel  owners would  end up                                                               
paying for any injuries occurring on the boat.                                                                                  
                                                                                                                                
MR. BERG said he wasn't sure but  thought there was a cap, and he                                                               
deferred to Mr. Lasankie.                                                                                                       
                                                                                                                                
1:22:05 PM                                                                                                                    
                                                                                                                                
PAUL  LASANKIE,  Director,   Division  of  Workers  Compensation,                                                               
Department  of Labor  and Workforce  Development (DOL),  said the                                                               
fisherman's fund is administered through DOL.                                                                                   
                                                                                                                                
CO-CHAIR SAMUELS said he understands the  goal of the bill is for                                                               
lodges to sell  the fishing experience to tourists,  and he asked                                                               
what the pros and cons are of including the fisherman's fund.                                                                   
                                                                                                                                
MR. LASANKIE  replied that the  short-term commercial  license is                                                               
intended to  meet peak  demand for crew,  who would  be fisherman                                                               
and should  be included  in the  fisherman's fund.   He  said the                                                               
second  group of  individuals desiring  a  short-term license  is                                                               
unique, and  the fund  has never  had to address  the idea  of an                                                               
individual  holding a  commercial fishing  license and  not being                                                               
able  to access  the fund.   "Our  concern was  just right  along                                                               
those  lines,  that everyone  who  has  a commercial  fisherman's                                                               
license of whatever  duration would be able to pay  into the fund                                                               
and make a claim against the fund," he explained.                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON  said that  the  fund  supplies the  first                                                               
$2,500  of   medical  costs  because  fishermen   have  a  $2,500                                                               
deductible.                                                                                                                     
                                                                                                                                
MR.  LASANKIE said  that was  correct, and  in most  cases it  is                                                               
limited to $2,500 for people who do not have medical insurance.                                                                 
                                                                                                                                
REPRESENTATIVE SEATON said  a $30 license will pay  less than $12                                                               
into the  fund since the  fund gets  40 percent of  license fees.                                                               
He  asked if  Mr.  Lasankie wants  to  accept medical  liability,                                                               
especially for someone who is new on the job, for $12.                                                                          
                                                                                                                                
MR. LASANKIE said that is a  conundrum.  He added that the amount                                                               
of money brought into the fund  per day of liability is more from                                                               
short-term licenses  than long-term  licenses.   But he  does ask                                                               
the question  if this will  bring in more inexperienced  crew who                                                               
will be more likely to make a claim.                                                                                            
                                                                                                                                
CO-CHAIR SAMUELS offered  that an inexperienced person  can get a                                                               
long-term license now.  Children can participate, he added.                                                                     
                                                                                                                                
MR.  LASANKIE said  that  is true.   He  thinks  the children  of                                                               
fishermen get good training.                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:27 PM to 1:28 PM.                                                                          
                                                                                                                                
1:27:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  said  he requested  legal  opinions  from                                                               
Legislative Legal Affairs,  and he was told  that the fisherman's                                                               
fund probably will  not lose its dedicated fund  provision if the                                                               
legislation does not extend liability  coverage to the short-term                                                               
license holders.   The  second opinion  addressed the  ability to                                                               
distinguish  between  short-term  license holders  and  long-term                                                               
license holders  without breaking equal protection  laws, and the                                                               
advice  given, he  said, was  that it  would be  fine as  long as                                                               
there is a difference between those two groups of people.                                                                       
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  if  the department  thinks that  by                                                               
allowing short-term licenses, the state will be losing money.                                                                   
                                                                                                                                
MR.  LASANKIE  responded that  the  department  has a  hard  time                                                               
quantifying what the fiscal impacts will be.                                                                                    
                                                                                                                                
CO-CHAIR  SAMUELS   stated  that   it  could  be   possible  that                                                               
experienced people will be buying short-term licenses.                                                                          
                                                                                                                                
MR. LASANKIE said there is no way to analyze it.                                                                                
                                                                                                                                
1:31:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked if a  crewmember were to buy a short-                                                               
term license, how much would go to the fisherman's fund.                                                                        
                                                                                                                                
MR.   LASANKIE  answered   39  percent,   net  of   the  vendor's                                                               
percentage.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  where the  39 percent  would go  if                                                               
short-term  license   holders  were   not  contributing   to  the                                                               
fisherman's fund.                                                                                                               
                                                                                                                                
MR. LASANKIE said it will still go to the fund.                                                                                 
                                                                                                                                
1:32:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  said that this  would allow one  tourist to                                                               
observe  fishing  operations and  a  second  tourist to  actively                                                               
engage, and both would be covered by the fisherman's fund.                                                                      
                                                                                                                                
MR. LASANKIE said  "Yes, but there is a  requirement, we believe,                                                               
that someone actually be engaged  in commercial fishing, so there                                                               
might be a potential question if  someone had the license and was                                                               
just a  bystander.   That's something  we haven't  pursued beyond                                                               
noting that there might be such a problem."                                                                                     
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  that in  order to  go on  a fishing                                                               
boat, even as an observer, does one need a license?                                                                             
                                                                                                                                
MR.  LASANKIE said  he does  not have  an answer,  but he  didn't                                                               
think so.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON clarified  that if someone is  on board and                                                               
not engaged  at all,  a license  is not needed.   But  if someone                                                               
ties up the  boat, throws fish into the hold,  or participates in                                                               
any way, he or she must have a commercial fishing license.                                                                      
                                                                                                                                
REPRESENTATIVE LEDOUX asked, so someone  who is not engaged would                                                               
not need that license?                                                                                                          
                                                                                                                                
CO-CHAIR SAMUELS said that is  correct--they don't need a license                                                               
now or after this legislation.                                                                                                  
                                                                                                                                
CO-CHAIR RAMRAS  asked how much  disclosure is required  for each                                                               
license, what paperwork does a  person have to sign regarding the                                                               
fisherman's fund, and what steps  will the captain be required to                                                               
take to disclose the risks to novices?                                                                                          
                                                                                                                                
MR. LASANKIE  said that the Alaska  Department of Fish &  Game is                                                               
looking at what would be required for that license.                                                                             
                                                                                                                                
SARAH   GILBERTSON,   Legislative    Liaison,   Office   of   the                                                               
Commissioner, Alaska Department of Fish  & Game, said she did not                                                               
know what disclosures were required.                                                                                            
                                                                                                                                
REPRESENTATIVE LEDOUX  said it  is a  matter of  federal maritime                                                               
law.                                                                                                                            
                                                                                                                                
1:37:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD asked how much  demand there might be for                                                               
these short-term licenses.                                                                                                      
                                                                                                                                
MR. BERG  said that  it is  unclear how  much interest  there is.                                                               
One fisherman,  he said, put  a one-day  fishing trip on  his web                                                               
site and  got 1,200  hits in 12  hours.  "There's  been a  lot of                                                               
interest just in  tourism in general on getting  off the Grayline                                                               
Bus tour and doing your own thing," he said.                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said that currently  it is just like buying                                                               
a  sport-fishing license.   It  is  just an  application with  no                                                               
disclosure,  he said.   The  disclosures between  a vessel  and a                                                               
non-vessel fishery  are different.   Employees  on a  vessel must                                                               
sign a contract with the  captain.  Representative Seaton said he                                                               
is concerned  that the  short-term license  holder will  get full                                                               
medical coverage  for a  small amount  of money.   He said  it is                                                               
unfunded liabilities for the fisherman's  fund for the benefit of                                                               
the tourist industry.                                                                                                           
                                                                                                                                
CO-CHAIR SAMUELS said  that the price is only $60  now.  He asked                                                               
why  the short-term  license is  for seven  days, since  tourists                                                               
usually would want a one-day license.                                                                                           
                                                                                                                                
MR. BERG said the number of days  has varied.  The bill went into                                                               
the  Fisheries Committee  with a  one-day and  three-day license,                                                               
and the committee changed it to  seven, because of the variety of                                                               
fishery activities.   The Alaska  Department of Fish &  Game just                                                               
wanted to deal with one length  of time, so the committee settled                                                               
on a seven-day license.                                                                                                         
                                                                                                                                
1:43:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON said  that HB  26 covers  the tourist  who                                                               
pays  to  join a  fishery,  but  it also  could  be  used to  get                                                               
inexperienced deckhands  while not  paying them  enough to  get a                                                               
commercial license.   It comes down to cheap labor,  he said, and                                                               
lowers the  professionalism of  the industry.   He added  that he                                                               
has an amendment.                                                                                                               
                                                                                                                                
CO-CHAIR SAMUELS disputed  that if a captain only  needs help for                                                               
seven  days, he  or  she  could hire  experienced  people with  a                                                               
short-term license.   He said a captain would not  seek help just                                                               
because it is  $30 cheaper.  He  said he would like  to amend the                                                               
bill to limit a short-term license to one per person per year.                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX  said that  she thinks  it is  important to                                                               
only have  one time-length  option.  She  said that  ADF&G didn't                                                               
want various options.                                                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON said  he thinks  if the  committee amended                                                               
the bill  to prohibit getting  paid while working under  a short-                                                               
term   license  then   it  will   be   a  recreational,   tourist                                                               
opportunity, and a true crewmember wouldn't get one.                                                                            
                                                                                                                                
1:50:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved Amendment 1,  labeled 24-LS0181\Y.2,                                                               
Utermohle, 2/28/05, which read:                                                                                                 
                                                                                                                                
     Page 2, line 17, following "may not":                                                                                      
          Insert:                                                                                                               
        "be paid, receive crew shares, or receive other                                                                         
     compensation for work performed under the license and                                                                      
     may not"                                                                                                                   
                                                                                                                                
CO-CHAIR SAMUELS objected for purposes of discussion.                                                                           
                                                                                                                                
The committee took an at-ease from 1:51 PM to 1:52 PM.                                                                          
                                                                                                                                
1:52:09 PM                                                                                                                    
                                                                                                                                
MR. BERG said  he and the sponsor talked about  the amendment and                                                               
decided to let  the committee decide on it.   "We're easy on this                                                               
one.  Whatever the resource committee thinks," he said.                                                                         
                                                                                                                                
CO-CHAIR SAMUELS removed his objection to Amendment 1.                                                                          
                                                                                                                                
REPRESENTATIVE LEDOUX  asked for the sponsor's  view of Amendment                                                               
1.                                                                                                                              
                                                                                                                                
MR.  BERG said  that Representative  Moses wasn't  going to  make                                                               
that switch  himself.   He said  he thinks  there are  people who                                                               
would work  briefly who are  skilled.  "We don't  think fisherman                                                               
are  out looking  for cheap  labor...and put  their operation  at                                                               
risk," he said.                                                                                                                 
                                                                                                                                
CO-CHAIR  SAMUELS  said  seeing  no objections,  Amendment  1  is                                                               
adopted.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON brought up  the question of the fisherman's                                                               
fund.  A  tourist won't do dangerous jobs, he  said, so he thinks                                                               
Amendment 1 takes care of that problem, but he wanted to air it.                                                                
                                                                                                                                
CO-CHAIR SAMUELS moved  to report CSHB 26(FSH)  out of committee,                                                               
as amended, with individual  recommendations and the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHB  26(RES)  was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                

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