Legislature(2003 - 2004)

02/07/2003 08:32 AM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        February 7, 2003                                                                                        
                           8:32 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Cheryll Heinze                                                                                                   
Representative Ralph Samuels                                                                                                    
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Ethan Berkowitz                                                                                                  
Representative Pete Kott                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEWS: DIVISION  OF INVESTMENTS FISHERIES RELATED  STATE LOAN                                                               
PROGRAMS;  ALASKA FISHERMEN'S  FUND, FEE  COLLECTION FOR  MEDICAL                                                               
SERVICES                                                                                                                        
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-4, SIDE(S) A & B                                                                                                             
                                                                                                                                
CHAIR  PAUL  SEATON  called  the meeting  of  the  House  Special                                                             
Committee on  Fisheries to  order at  8:32 a.m.   Present  at the                                                               
call  to  order  were  Representatives  Seaton,  Wilson,  Heinze,                                                               
Samuels, and Guttenberg.                                                                                                        
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                              
GREG WINEGAR,  Director, Division  of Investments,  Department of                                                               
Community  & Economic  Development, explained  the structure  and                                                               
process of  the publicly managed  revolving loan  funds dedicated                                                               
to  financing  boats,  permits,  gear,  hatcheries,  and  general                                                               
maintenance  associated with  commercial fishing  in Alaska.   He                                                               
said that  the Division of  Investments administers  and services                                                               
15  loan   programs  primarily   designed  to   promote  economic                                                               
development through  direct state lending in  industries that are                                                               
not adequately serviced by the  private sector.  His presentation                                                               
focused  on  the Division  of  Investments'  two programs  geared                                                               
toward the  fishing industry:   the Commercial  Fishing Revolving                                                               
Loan  Fund, and  the Fisheries  Enhancement Revolving  Loan Fund;                                                               
however, he  also provided information  on the  Rural Development                                                               
Initiative  Fund  and  the Small  Business  Economic  Development                                                               
Revolving Loan Fund.   He stated that the goal  of the Commercial                                                               
Fishing  Revolving  Loan  Fund   is  to  provide  long-term,  low                                                               
interest  loans  to  promote  the  development  of  predominantly                                                               
resident fisheries,  and to assist with  continued maintenance of                                                               
commercial  fishing   vessels  and  gear,  for   the  purpose  of                                                               
improving the  quality of Alaska  seafood products.  The  goal of                                                               
the Fisheries  Enhancement Revolving Loan  Fund is to  make loans                                                               
available  for  planning,  construction, and  operation  of  fish                                                               
hatchery facilities.   Mr. Winegar  noted that the funds  offer a                                                               
lot of leeway in extending  and forgiving loans on a case-by-case                                                               
basis.   He said  the funds  are intended to  help those  who are                                                               
most  in need,  who  have few  other options,  and  who are  most                                                               
dependent upon the fishery.   He also mentioned the Nels Anderson                                                               
Cooperative  Program,  a  loan guarantee  program  involved  with                                                               
maintaining permits in specified areas.                                                                                         
                                                                                                                                
MR.  WINEGAR  explained  the funding  history  of  the  Fisheries                                                               
Enhancement  Revolving Loan  Fund, stating  that a  total of  $60                                                               
million has  been paid  into the fund  since its  inception, with                                                               
the last  appropriation being in fiscal  year 1985.  He  said $74                                                               
million has been  transferred out of the fund, and  the fund is a                                                               
totally  self-sufficient program.    Mr.  Winegar projected  next                                                               
year's loan demand to be approximately $12 million.                                                                             
                                                                                                                                
ED  FISHER,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department  of  Labor  & Workforce  Development,  introduced  his                                                               
staff:    Paul  Grossi,  Director, Central  Office,  Division  of                                                               
Workers'  Compensation,  and  Renee Cox,  Program  Administrator,                                                               
Fishermen's Fund, Department of Labor & Workforce Development.                                                                  
                                                                                                                                
PAUL  GROSSI,  Director,  Central Office,  Division  of  Workers'                                                               
Compensation, presented an overview of  the Fishermen's Fund.  He                                                               
explained that  the fund was  established in 1951, and  has since                                                               
provided  for   the  treatment  and   care  of   Alaska  licensed                                                               
commercial  fishermen  who have  been  injured  while fishing  in                                                               
Alaska.  He  said the program is overseen by  the commissioner of                                                               
the  Department  of  Labor  &  Workforce  Development,  with  the                                                               
assistance of the Fishermen's Fund  Advisory & Appeals Council, a                                                               
five-member  council  appointed  by   the  governor  and  usually                                                               
composed of  fishermen.  He  stated that the Fishermen's  Fund is                                                               
designed  to  dovetail with  other  insurance  programs and  that                                                               
generally the  maximum allowance from  the fund is  $2,500, which                                                               
is  often   equal  to  the  deductible   for  relevant  insurance                                                               
programs.   This design  helps to ensure  that all  medical costs                                                               
are  paid for;  however,  some  insurance companies'  deductibles                                                               
have been rising.                                                                                                               
                                                                                                                                
RENEE  COX, Program  Administrator, Fishermen's  Fund, Department                                                               
of  Labor &  Workforce Development,  responded to  questions from                                                               
the  committee  and  explained  that in  fiscal  year  2002,  the                                                               
Fishermen's   Fund  received   $1,079,755.90  in   receipts  from                                                               
commercial fishing  permits and licenses.   She said  that during                                                               
that  year  they   had  808  claims,  and   paid  $584,408.00  to                                                               
commercial fishermen.  She said  that administrative expenses for                                                               
the   fund  totaled   $223,565.00,   and   total  expenses   were                                                               
$807,973.00.   Ms.  Cox said  the largest  number of  claims were                                                               
related to strained  backs and cut fingers, with  the majority of                                                               
claims being  submitted from Southeast  Alaska.  She  stated that                                                               
there  is interest  in increasing  the  fund's allowable  benefit                                                               
amount paid to fishermen.                                                                                                       
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                              
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                              
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                              
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned at  9:32                                                               
a.m.                                                                                                                            
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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