Legislature(2011 - 2012)CAPITOL 120

02/28/2012 05:00 PM House FISHERIES


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05:05:55 PM Start
05:06:17 PM Confirmation Hearing(s): Fishermen's Fund Advisory & Appeals Council
05:25:41 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Fishermen's Fund Advisory & Appeals Council
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 28, 2012                                                                                        
                           5:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Steve Thompson, Chair                                                                                            
Representative Alan Austerman                                                                                                   
Representative Bob Herron                                                                                                       
Representative Lance Pruitt                                                                                                     
Representative Bob Miller                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Craig Johnson, Vice Chair                                                                                        
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Fishermen's Fund Advisory & Appeals Council                                                                                   
                                                                                                                                
Jim Herbert - Seward                                                                                                            
Clay Bezenek - Ketchikan                                                                                                        
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JIM HERBERT, Appointee                                                                                                          
Fishermen's Fund Advisory & Appeals Council                                                                                     
Seward, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as an appointee to the Fishermen's                                                                 
Fund Advisory and Appeals Council.                                                                                              
                                                                                                                                
JERRY MCCUNE, Lobbyist                                                                                                          
Cordova District Fisherman United                                                                                               
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of the reappointment                                                                
of both Mr. Herbert and Mr. Bezenek.                                                                                            
                                                                                                                                
CLAY BEZENEK, Appointee                                                                                                         
Fishermen's Fund Advisory & Appeals Council                                                                                     
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:   Spoke  as an  appointee to  the Fishermen's                                                             
Fund Advisory and Appeals Council.                                                                                              
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:05:55 PM                                                                                                                    
                                                                                                                                
CHAIR  STEVE  THOMPSON  called the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at   5:05  p.m.    Representatives                                                               
Austerman, Herron,  Pruitt, Miller, and Thompson  were present at                                                               
the call to order.                                                                                                              
                                                                                                                                
^CONFIRMATION HEARING(S):   Fishermen's  Fund Advisory  & Appeals                                                               
Council                                                                                                                         
 CONFIRMATION HEARING(S):  Fishermen's Fund Advisory & Appeals                                                              
                            Council                                                                                         
                                                                                                                              
5:06:17 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON  announced that the  only order of  business would                                                               
be  consideration  of  the appointees  to  the  Fishermen's  Fund                                                               
Advisory  & Appeals  Council.   He  explained that  the fund  was                                                               
established in the Division of  Workers' Compensation in 1951 and                                                               
provides  for   the  treatment  and   care  of   Alaska  licensed                                                               
commercial fishermen  who have been injured  onshore or offshore.                                                               
The  fund is  financed from  revenue received  from resident  and                                                               
nonresident commercial  fishermen licenses and permit  fees.  The                                                               
commissioner of  the Department of Labor  & Workforce Development                                                               
(DLWD) oversees administration of  the program with assistance of                                                               
the  Fishermen's   Fund  Advisory  and  Appeals   Council.    The                                                               
Fishermen's Fund Advisory and Appeals  Council is composed of the                                                               
DLWD commissioner or his/her designee  who serves as chairman and                                                               
five  members  appointed   by  the  governor.     When  the  fund                                                               
administration  can't  immediately  approve  an  application  for                                                               
benefit,  it may  go  before the  Fishermen's  Fund Advisory  and                                                               
Appeals Council for review.                                                                                                     
                                                                                                                                
5:07:49 PM                                                                                                                    
                                                                                                                                
JIM  HERBERT,  Appointee,  Fishermen's Fund  Advisory  &  Appeals                                                               
Council,  informed  the  committee  that   he  has  been  in  the                                                               
designated seat  representing District 3 on  the Fishermen's Fund                                                               
Advisory and  Appeals Council for more  than 12 years.   He noted                                                               
that he  was first  appointed by  Governor Knowles  and specified                                                               
that District 3  extends from Yakutat down below King  Cove.  Mr.                                                               
Herbert then turned to his  personal background, and informed the                                                               
committee that  he came to Alaska  in 1971 and began  fishing out                                                               
of Homer.   While the bulk  of his fishing time  has been located                                                               
in Kodiak  and Cook Inlet, he  said he has fished  from Southeast                                                               
to Bristol  Bay as  well as some  communities further  north more                                                               
recently.   In  terms of  his role  on the  council, Mr.  Herbert                                                               
expressed his  belief in the  importance of his knowledge  of the                                                               
fisheries  and  the waters.    The  aforementioned knowledge,  he                                                               
opined, helps  weed out some who  are perhaps trying to  pull the                                                               
wool over  the bureaucratic eye.   He opined that over  the years                                                               
the Fishermen's Fund  Advisory and Appeals Council  has done well                                                               
serving its  clients.   In regard  to the  recent increase  up to                                                               
$10,000 in the  total amount of funds that  fishermen can receive                                                               
per  standard claim,  he pointed  out that  the Fishermen's  Fund                                                               
Advisory and Appeals  Council has always had the  ability to give                                                               
extra  funds in  extraordinary circumstances,  that is  for those                                                               
who  have suffered  injuries and  have  no other  recourse.   Mr.                                                               
Herbert then related that he  has always believed the Fishermen's                                                               
Fund Advisory  and Appeals Council's fiduciary  responsibility is                                                               
important.   As  mentioned earlier,  approximately 39  percent of                                                               
fishermen's deck  licenses and an equivalent  amount from fishing                                                               
permits established  the fund.   Over the years, the  balance has                                                               
grown and  remained fairly  stable for  a number  of years.   The                                                               
[fishermen and council] are anxious  to observe what happens with                                                               
this new higher  limit in terms of the total  corpus of the fund,                                                               
which is  currently $11-$12 million,  and the  potential decrease                                                               
it will experience.  He suggested  that the committee may wish to                                                               
put the aforementioned on the committee's radar.                                                                                
                                                                                                                                
5:11:27 PM                                                                                                                    
                                                                                                                                
MR. HERBERT  then reminded the  committee that a number  of years                                                               
ago, a seven-day  fishermen's license was put in  effect with the                                                               
idea that there  might be tourists who were willing  to go out on                                                               
fishermen's boats for  the experience of it.   However, he opined                                                               
that the seven-day license has  deteriorated into a loophole that                                                               
allows  out-of-state people  to  pay the  same  rate as  in-state                                                               
people and  purchase several long-term licenses  in succession to                                                               
escape fees  that one  would be  required to  pay for  a standard                                                               
deck license.  This license may  also impact the funds going into                                                               
the Fishermen's Fund.  However,  more importantly, he opined that                                                               
the intent of the license isn't  being honored.  Mr. Herbert then                                                               
informed the committee at the  next Fishermen's Fund Advisory and                                                               
Appeals  Council  meeting  he hopes  to  find  efficiencies  that                                                               
address the  high administrative  costs of each  claim.   Since a                                                               
number of the committee members  are from the Fairbanks area, Mr.                                                               
Herbert highlighted  the fact  that for three  to four  years the                                                               
Fishermen's Fund Advisory and Appeals  Council has been unable to                                                               
fill the seat  for District 5, which is north  of Bristol Bay and                                                               
sort  of the  AYK area.   The  concern is  that the  fishermen in                                                               
District 5  aren't receiving real representation.   Therefore, he                                                               
encouraged  passing on  the  name of  anyone  interested in  that                                                               
seat.                                                                                                                           
                                                                                                                                
5:14:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  said  that   he  will  include  a  notice                                                               
regarding this vacancy in his newsletter.                                                                                       
                                                                                                                                
MR. HERBERT said he would appreciate that.                                                                                      
                                                                                                                                
5:14:40 PM                                                                                                                    
                                                                                                                                
CHAIR  THOMPSON,  drawing  from  his experience  sitting  on  the                                                               
Workers'  Compensation Board,  related  that at  the  end of  the                                                               
construction  season the  board would  experience an  increase in                                                               
the  number of  claims.   He  asked  if that  was  the case  with                                                               
fisheries.                                                                                                                      
                                                                                                                                
MR. HERBERT answered,  "Not necessarily."  He  told the committee                                                               
that until a  year-and-a-half ago, the standard  limit was $2,500                                                               
and  it's  only  paid  to   the  provider,  not  the  individual.                                                               
Typically, the  individual has to  file the claim within  60 days                                                               
of the injury  otherwise there are more  difficulties and appeals                                                               
that arise  with filing  the claim.   Mr.  Herbert said  that the                                                               
claims seem to  be a function of the busyness  of the season, and                                                               
therefore since most of the  salmon fisheries occur in the summer                                                               
that's when most of the claims occur.                                                                                           
                                                                                                                                
5:16:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE AUSTERMAN  inquired as  to the number  of meetings                                                               
the Fishermen's Fund Advisory and Appeals Council holds.                                                                        
                                                                                                                                
MR. HERBERT  responded that  the council  holds two  meetings per                                                               
year, one  of which is  usually held in  Juneau and the  other in                                                               
Anchorage.  He did recall a  year when the council held a meeting                                                               
in Kodiak.   Although these meetings have  virtually no audience,                                                               
last spring  a meeting was held  in Dillingham in order  to reach                                                               
out to other fishermen in other communities.                                                                                    
                                                                                                                                
5:17:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN then  inquired  as to  whether all  the                                                               
claimants have to appear before the council for their claims.                                                                   
                                                                                                                                
MR. HERBERT replied  no, adding that there are  various forms for                                                               
claimants appealing a  late filing or seeking more  funds or time                                                               
for  treatment.   If the  claimant feels  he/she could  be better                                                               
served by appearing  in person, he/she may do so.   He noted that                                                               
appearing telephonically has always been an option.                                                                             
                                                                                                                                
5:18:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   AUSTERMAN    further   inquired   as    to   the                                                               
administrative costs  per percentage of  claims or the  amount of                                                               
the claims.                                                                                                                     
                                                                                                                                
MR. HERBERT responded that he does  to a certain extent.  Without                                                               
specific  documentation, he  estimated that  it's about  $300 per                                                               
claim for  approximately 700 claims  per year.   Currently, there                                                               
are two  clerks in Juneau  who perform  most of the  paperwork in                                                               
Juneau  and  a  part-time  administrator.     For  this  upcoming                                                               
meeting, from the  administrator he had requested a  break out of                                                               
the job descriptions  of the various staff and how  the funds are                                                               
allocated.    Although he  understood  that  there  has to  be  a                                                               
sharing of certain costs, such  as for the electricity, the Xerox                                                               
machine, and supplies, it seems too  much money is being spent on                                                               
administration when the average claim is less than $1,000.                                                                      
                                                                                                                                
5:20:01 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON invited public testimony.                                                                                        
                                                                                                                                
5:20:21 PM                                                                                                                    
                                                                                                                                
JERRY  MCCUNE,  Lobbyist,   Cordova  District  Fisherman  United,                                                               
related support  for the  reappointment of  Mr. Herbert,  who has                                                               
lots of  institutional knowledge  and can  help newer  members to                                                               
the Fishermen's Fund  Advisory and Appeals Council.   With regard                                                               
to Mr. Bezenek,  he related his understanding that  he has fished                                                               
all over the state and is  knowledgeable of the issues that would                                                               
be  on  the  vessels.     Mr.  McCune  related  support  for  the                                                               
reappointment of both nominees.                                                                                                 
                                                                                                                                
5:21:35 PM                                                                                                                    
                                                                                                                                
CLAY  BEZENEK, Appointee,  Fishermen's  Fund  Advisory &  Appeals                                                               
Council,  informed  the  committee  that   he  has  been  on  the                                                               
Fishermen's Fund Advisory and Appeals  Council one full term.  He                                                               
further  informed   the  committee  that  the   Fishermen's  Fund                                                               
Advisory and  Appeals Council helped  his family  personally when                                                               
he had  a bad  accident in  2002 while  geoduck diving  in Craig.                                                               
Therefore, when  he was offered  the opportunity to serve  on the                                                               
council, he  didn't hesitate  to give back  to the  industry that                                                               
has supported  him for the  last 25 years.   Mr. Bezenek  said he                                                               
enjoys  being on  the  board,  which has  a  lot  of good  folks,                                                               
particularly  Mr. Herbert,  to  show  him the  way  even when  on                                                               
opposing sides  of an  issue.  Mr.  Bezenek said  the Fishermen's                                                               
Fund Advisory  and Appeals  Council is really  a great  fund that                                                               
has helped a lot of people.                                                                                                     
                                                                                                                                
5:24:22 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
5:24:46 PM                                                                                                                    
                                                                                                                                
CHAIR  THOMPSON  announced  that  without  objection,  the  House                                                               
Special   Committee    on   Fisheries,   having    reviewed   the                                                               
qualifications  of the  governor's appointees,  will forward  the                                                               
names of Mr. Herbert and Mr.  Bezenek to the full legislature for                                                               
confirmation.  He then reminded  members that signing the reports                                                               
regarding  appointments  to  boards  and commissions  in  no  way                                                               
reflects  individual  member's  approval or  disapproval  of  the                                                               
appointees, and that the nominations  are merely forwarded to the                                                               
full legislature for confirmation or rejection.                                                                                 
                                                                                                                                
5:25:41 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned at  5:25                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
Fishermen's Fund Appeals - Bezenek #1.pdf HFSH 2/28/2012 5:00:00 PM
Fishermen's Fund Appeals - Herbert #1.pdf HFSH 2/28/2012 5:00:00 PM