03/31/2023 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Real Estate Commission | |
| HB119 | |
| HB17 | |
| HB92 | |
| HB93 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 92 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 119 | TELECONFERENCED | |
| += | HB 17 | TELECONFERENCED | |
| += | HB 93 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 31, 2023
3:18 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Stanley Wright
Representative Ashley Carrick
MEMBERS ABSENT
Representative Dan Saddler
Representative Zack Fields
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
ALASKA LABOR RELATIONS AGENCY
JENNIFER MCCONNELL - Kenai
- CONFORMATION(S) ADVANCED
REAL ESTATE COMMISSION
CHERYL MARKWOOD - Fairbanks
- CONFORMATION(S) ADVANCED
HOUSE BILL NO. 119
"An Act relating to marijuana taxes; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 17
"An Act relating to insurance coverage for contraceptives and
related services; relating to medical assistance coverage for
contraceptives and related services; and providing for an
effective date."
- MOVED CSHB 17(HSS) OUT OF COMMITTEE
HOUSE BILL NO. 92
"An Act relating to claims against protection and indemnity
insurance policies of vessel owners."
- HEARD & HELD
HOUSE BILL NO. 93
"An Act relating to a lumber grading training program and lumber
grading certificates; relating to use of lumber graded and
certified by a person holding a lumber grading training program
certificate; and providing for an effective date."
- MOVED HB 93 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 119
SHORT TITLE: MARIJUANA TAX
SPONSOR(s): RULES BY REQUEST
03/17/23 (H) READ THE FIRST TIME - REFERRALS
03/17/23 (H) L&C, FIN
03/24/23 (H) L&C AT 3:15 PM BARNES 124
03/24/23 (H) <Bill Hearing Canceled>
03/31/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 17
SHORT TITLE: CONTRACEPTIVES COVERAGE:INSURE;MED ASSIST
SPONSOR(s): CARRICK
01/19/23 (H) PREFILE RELEASED 1/9/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) HSS, CRA, L&C, FIN
02/07/23 (H) HSS AT 3:00 PM DAVIS 106
02/07/23 (H) Heard & Held
02/07/23 (H) MINUTE(HSS)
02/18/23 (H) HSS AT 3:00 PM DAVIS 106
02/18/23 (H) -- MEETING CANCELED --
03/02/23 (H) HSS AT 3:00 PM DAVIS 106
03/02/23 (H) Moved CSHB 17(HSS) Out of Committee
03/02/23 (H) MINUTE(HSS)
03/07/23 (H) HSS AT 3:00 PM DAVIS 106
03/07/23 (H) Moved CSHB 17(HSS) Out of Committee
03/07/23 (H) MINUTE(HSS)
03/08/23 (H) HSS RPT CS(HSS) 3DP 2NR
03/08/23 (H) DP: RUFFRIDGE, SUMNER, MINA
03/08/23 (H) NR: SADDLER, PRAX
03/16/23 (H) CRA AT 8:00 AM BARNES 124
03/16/23 (H) Heard & Held
03/16/23 (H) MINUTE(CRA)
03/17/23 (H) FIN REFERRAL REMOVED
03/17/23 (H) BILL REPRINTED
03/21/23 (H) CRA AT 8:00 AM BARNES 124
03/21/23 (H) Moved CSHB 17(HSS) Out of Committee
03/21/23 (H) MINUTE(CRA)
03/22/23 (H) CRA RPT CS(HSS) 5DP 1NR
03/22/23 (H) DP: HIMSCHOOT, MEARS, MCKAY, RUFFRIDGE,
MCCORMICK
03/22/23 (H) NR: MCCABE
03/27/23 (H) L&C AT 3:15 PM BARNES 124
03/27/23 (H) Heard & Held
03/27/23 (H) MINUTE(L&C)
03/31/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 92
SHORT TITLE: FISHERMEN'S FUND: VESSEL OWNER CLAIMS
SPONSOR(s): FISHERIES
03/01/23 (H) READ THE FIRST TIME - REFERRALS
03/01/23 (H) FSH, L&C
03/07/23 (H) FSH AT 10:00 AM GRUENBERG 120
03/07/23 (H) Heard & Held
03/07/23 (H) MINUTE(FSH)
03/14/23 (H) FSH AT 10:00 AM GRUENBERG 120
03/14/23 (H) Moved CSHB 92(FSH) Out of Committee
03/14/23 (H) MINUTE(FSH)
03/15/23 (H) FSH RPT CS(FSH) NEW TITLE 6DP 1NR
03/15/23 (H) DP: HIMSCHOOT, MCCORMICK, CARPENTER,
STUTES, MCCABE, VANCE
03/15/23 (H) NR: C.JOHNSON
03/31/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 93
SHORT TITLE: LUMBER GRADING PROGRAM
SPONSOR(s): SUMNER
03/06/23 (H) READ THE FIRST TIME - REFERRALS
03/06/23 (H) L&C
03/15/23 (H) L&C AT 3:15 PM BARNES 124
03/15/23 (H) Heard & Held
03/15/23 (H) MINUTE(L&C)
03/22/23 (H) L&C AT 3:15 PM BARNES 124
03/22/23 (H) Heard & Held
03/22/23 (H) MINUTE(L&C)
03/31/23 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JENNIFER MCCONNELL, Appointee
Alaska Labor Relations Agency
Kenai, Alaska
POSITION STATEMENT: Testified as an appointee to the Alaska
Labor Relations Agency.
CHERYL MARKWOOD, Appointee
Real Estate Commission
Fairbanks, Alaska
POSITION STATEMENT: Testified as an appointee to the Alaska
Real Estate Commission.
HEATH HILYARD, Staff
Representative Cathy Tilton
Alaska State Legislature,
Juneau, Alaska
POSITION STATEMENT: Introduced HB 119 on behalf of the sponsor,
the House Rules Standing Committee by request and gave the
sectional analysis.
BRANDON EMMETT, Co-Chair
Governor's Advisory Task Force on Recreational Marijuana
Fairbanks, Alaska
POSITION STATEMENT: Answered questions on HB 119.
MORGAN LIM, Lobbyist
Government Relations Manager
Planned Parenthood Alliance Advocates
Juneau, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 17.
KATELYN SAFT, representing self
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 17.
ALYSSA QUINTYNE, representing self
Fairbanks, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 17.
PAMELA SAMASH, representing self
Nenana, Alaska
POSITION STATEMENT: Gave public testimony in opposition to HB
17.
ROSE O'HARA-JOLLEY, representing self
Fairbanks, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 17.
OLIVIA LYNN, representing self
Fairbanks, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 17.
ED MARTIN, representing self
Kenai, Alaska
POSITION STATEMENT: Gave public testimony in opposition to HB
17.
REPRESENTATIVE SARAH VANCE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, the House Special
Committee on Fisheries, presented CSHB 92, Version B, and gave a
PowerPoint presentation, titled, "HB 92 Fishermen's Fund: Vessel
Owner Claims."
VELMA THOMAS, Administrator
Fishermen's Fund Advisory and Appeals Council
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions on CSHB 92, Version B.
CHARLES COLLINS, Director
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions on CSHB 92, Version B.
ACTION NARRATIVE
3:18:27 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:18 p.m. Representatives Prax,
Wright, Carrick, and Sumner were present at the call to order.
Representative Ruffridge arrived as the meeting was in progress.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
^Alaska Labor Relations Agency
Alaska Labor Relations Agency
^Real Estate Commission
Real Estate Commission
3:18:52 PM
CHAIR SUMNER announced that the first order of business would be
the confirmation hearings on the governor's appointees to the
Alaska Labor Relations Agency and the Real Estate Commission.
3:19:41 PM
JENNIFER MCCONNELL, Appointee, Alaska Labor Relations Agency,
stated that her appointment is to the management seat on the
agency. She shared that she has over 10 years' experience in
human resources and labor relations, and this experience has
been in the private and public sector in both urban and rural
Alaska. She continued that she currently works at Providence
Health Systems in the human resources department. She pointed
out that her resume details her experience in labor relations,
and her experience shows that she has the "knowledge and ability
to provide informed, trusted, and fair oversight" for the
agency.
3:21:11 PM
CHAIR SUMNER opened public testimony on the confirmation
hearing. After ascertaining there was no one who wished to
testify, he closed public testimony.
3:21:41 PM
CHERYL MARKWOOD, Appointee, Real Estate Commission, shared that
she has worked in real estate since 2010, specializing in
property management. She advised that the real estate industry
plays an important role in Alaska's economy. She stated that
housing needs are a vital priority for Alaskans, and, as a real
estate agent, she expressed the opinion that real estate agents
are bound to the highest of ethical standards in serving
communities. She expressed the understanding that licensing
standards are set to protect the public. She shared that she
has served in this position since her appointment in 2019 and is
the most senior member of the commission.
3:23:39 PM
CHAIR SUMNER opened public testimony on the confirmation
hearing. After ascertaining there was no one who wished to
testify, he closed public testimony.
3:24:04 PM
REPRESENTATIVE CARRICK questioned how real estate has changed
during the period she has served on the commission. She also
questioned any challenges Ms. Markwood foresees for the
commission going forward.
MS. MARKWOOD responded that given the advancement in technology
the industry has rapidly changed over the last 10 years. She
pointed out that out-of-state companies are remotely moving into
regions in Alaska. She stated that licensing plays an important
role in this. She mentioned the impact of vacation rentals on
housing in the state. She stated that licensing issues are on
the agenda for the up-coming year. She referenced her specialty
in property management and landlord/tenant law.
3:26:03 PM
REPRESENTATIVE RUFFRIDGE reminded the committee that signing the
report regarding appointments to the boards and commissions is
in accordance with AS 39.05.080 and in no way reflects
individual members' approval or disapproval of the appointees,
and the nominations are merely forwarded to the full legislature
for confirmation or rejection. [The names advanced to the full
legislature were: Jennifer McConnell, appointee to Alaska Labor
Relations Agency; and Cheryl Markwood, appointee to the Real
Estate Commission.]
HB 119-MARIJUANA TAX
[Contains discussion of HB 117]
3:26:42 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 119, "An Act relating to marijuana taxes; and
providing for an effective date."
3:27:19 PM
HEATH HILYARD, Staff, Representative Cathy Tilton, Alaska State
Legislature, introduced HB 119 on behalf of the sponsor, the
House Rules Standing Committee by request. He provided context
on how the proposed legislation came to be. He referenced the
recommendations in the report from the Governor's Advisory Task
Force on Recreational Marijuana. He explained that originally a
single bill would have had all the task force's recommendations;
however, the drafting of this was too long, and two separate
bills were drafted, HB 119 and HB 117. He informed the
committee that everything in HB 119 is also in HB 117; however,
HB 117 is going through a substantial rewrite. He stated that
the tax portion has been extracted from HB 117 and put into HB
119. He stated that the task force has provided feedback on
some of the sections in the proposed bill which may need to be
amended. He expressed the understanding that one of the main
reasons for the taxation provision in the bill is the legal
marijuana recreation industry is attempting to remain
competitive with the black market.
3:29:36 PM
MR. HILYARD paraphrased the sectional analysis on HB 119 [copy
included in the committee packet] which read as follows
[original punctuation provided]:
Section 1: This section reduces the excise tax that is
imposed, by the state, on the sale or transfer of
marijuana from a cultivation facility from $50 per
ounce to $12.50 per ounce. This is repealed July 1,
2028 (see Section 8) to be replaced with a 3% sales
tax at the retail level (see Section 4).
Section 2: The department may exempt part of the
certain parts of a marijuana plant from taxation or
establish a rate lower than $12.50 per ounce. This is
already done for parts of the plant. This is repealed
July 1, 2028 (see Section 8) to be replaced with a 3%
sales tax at the retail level (see Section 4).
Section 3: This section directs all the marijuana tax
revenue to the Marijuana Education and Treatment Fund.
Interest earned on this fund will be deposited into
the General Fund. The fund does not lapse. The
legislature may appropriate 33% of the annual
estimated tax collected to the Department of Health
for the program, the Department of Commerce,
Community, and Economic Development, or to the general
fund.
Section 4: A sales tax of 3% is imposed on marijuana
and marijuana products sold from a retailer to a
consumer. Effective July 1, 2028See Section 10.
Section 5: Monthly Statements and payments. Each
retail marijuana store will send a statement to the
department on or before the last day of each month. It
must include the total amount of marijuana sold to
consumers and the total value of the marijuana sold.
Tax payments from retail stores cover the preceding
month. Effective July 1, 2028See Section 10.
Section 6: Upon the effective date (July 1, 2028) of
Sections 4, 5, and 6 this section replaces
"cultivation facility" with "retail marijuana store"
for the purpose of administration and enforcement of
tax.
Section 7: The Recidivism Reduction Fund is repealed.
Currently 50% of Marijuana tax revenue is directed to
this fund to be used by the Department of Corrections,
the Department of Health, or the Department of Public
Safety for recidivism reduction programs. Under
Section 3 of this act tax revenue is directed to the
Marijuana Treatment and Education fund.
Section 8: Repeals the excise tax (Sections 1 and 2 of
this act) levied on the cultivator, effective July 1,
2028. It is replaced with a 3% sales tax levied on the
retailer as per Section 4, effective the same date.
Section 9: Applicability: the new excise tax rate
(Sections 1 and 2) is applied to taxes accrued on or
after the effective date. Section 10: Sections 4-6
are effective July 1, 2028.
3:33:05 PM
BRANDON EMMETT, Co-Chair, Governor's Advisory Task Force on
Recreational Marijuana, made himself available for questions on
HB 119.
3:33:28 PM
REPRESENTATIVE PRAX stated that he had voted in favor of
decriminalizing marijuana because of the black market. He
questioned how the proposed legislation would affect the black
market for marijuana. He expressed the understanding that the
current high tax encourages the black market.
MR. HILYARD concurred, and he added that the task force did not
have access to sophisticated modeling from the Department of
Revenue for its work; however, he expressed the understanding
that the access to modeling has changed.
MR. EMMETT added that there is no hard data which shows how the
industry is controlled by the black market. He offered that all
the evidence, such as information from consumers, cultivators
and retailers, points to the black market having 45 percent of
the marijuana industry. He stated that the task force has
requested the excise tax be reduced because this is preventing
the sale price of marijuana from competing with the black
market. From speaking to customers, he expressed the
understanding that untaxed and untested marijuana can be bought
for about half of the price. He expressed the opinion that the
threat to the industry by the black market is real, and the
proposed legislation would help the legitimate market be
competitive.
3:36:40 PM
REPRESENTATIVE CARRICK pointed out that Section 3 would change
the funding going to the Department of Health (DOH), which has
been designated for [marijuana] education and treatment. She
expressed the understanding that this funding would be put into
two additional sources: the Department of Commerce, Community,
and Economic Development (DCCED), to help grow the industry, and
the general fund. She questioned these fund designations.
MR. HILYARD stated that this recommendation came directly from
the task force.
REPRESENTATIVE CARRICK questioned the merit in limiting the
funds to DOH and DCCED by splintering the appropriations to the
general fund.
MR. HILYARD deferred to Mr. Emmett.
MR. EMMETT responded that when the task force analyzed the ways
the funds were being allocated, it was felt that funding may be
better spent with a greater allocation to help the market as
opposed to the recidivism-reduction fund. He added that the
task force did not have the information that is now available.
He stated that now the task force is amicable to this being
unchanged. He expressed support for the increase of funds going
to DOH; however, "that's not something we're necessarily hanging
our hat on either."
3:39:39 PM
REPRESENTATIVE PRAX expressed the concern of the
constitutionality of dedicating a tax to any specific thing.
CHAIR SUMNER responded that this would be "intent" language, as
revenue streams cannot be designated.
MR. EMMETT expressed the opinion that the power of
appropriations is on the legislature, and the task force does
not have a strong opinion in the matter.
3:40:36 PM
REPRESENTATIVE RUFFRIDGE observed that the reduction in the
excise tax would be significant. He expressed the understanding
that if a sales tax is being imposed, this would be new. He
questioned the purpose of taxing at "every step" and questioned
the purpose of the excise tax.
MR. EMMETT answered that a stepwise system for altering the tax
structure would be the most appropriate because it would be a
gradual change from an excise tax to a retail tax. Because of
the nature of business as a revenue stream, he said, the
retailers are best suited to collect tax. He explained that
this is because the municipalities already require retail tax on
marijuana. He continued that there would be a transition period
between the flat excise tax and the retail tax, so the excise
tax would no longer exist in the future.
MR. HILYARD, in response to a follow-up question, stated that
the intention is that Section 8 would repeal the excise tax by
2028.
3:43:04 PM
CHAIR SUMNER announced that HB 119 was held over.
HB 17-CONTRACEPTIVES COVERAGE:INSURE;MED ASSIST
3:43:12 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 17, "An Act relating to insurance coverage for
contraceptives and related services; relating to medical
assistance coverage for contraceptives and related services; and
providing for an effective date." [Before the committee was
CSHB 17(HSS), which was moved out of the House Health and Social
Services Standing Committee on 3/7/23.]
3:43:28 PM
CHAIR SUMNER opened public testimony on HB 17.
3:43:44 PM
MORGAN LIM, Lobbyist, Planned Parenthood Alliance Advocates
Alaska, provided public testimony on behalf of Planned
Parenthood Alliance Advocates Alaska in support of HB 17. He
expressed the opinion that people deserve affordable and
accessible birth control, as consistent access would allow for
control over an individual's life, such as for career and
educational opportunities. He suggested that this would also
promote healthier pregnancies and savings on health care
spending. He pointed out that the majority of Alaskans have
voted for accessible birth control. He added that the proposed
legislation would [positively] impact those living in rural
Alaska. He explained that hormonal birth control is 95 percent
effective with perfect use; however, monthly trips to the
pharmacy can be difficult for many people, especially for those
with a lower income or those who live in rural communities;
therefore, these individuals would more likely experience
unintended pregnancies. He stated that access to an extended
supply of contraception is also important for those who work
multiple jobs, those who are young adults, or those involved in
violent intimate partnerships with reproductive coercion. He
stated that 22 states have already passed similar legislation,
and evidence shows that an extended supply of birth control
decreases the occurrence of unintended pregnancies and the need
for abortion services. He added that this makes it cost
effective. He cited the research supporting this statement and
urged support for HB 17. He thanked the committee.
3:47:00 PM
KATELYN SAFT, representing self, gave public testimony in
support of HB 17. She shared that she is a lifelong Alaskan and
expressed the understanding of the barriers in obtaining
contraceptive care. She stated that with limited abortion care,
it is important to maintain access to contraception, as this
would decrease the number of unintended pregnancies.
3:48:01 PM
ALYSSA QUINTYNE, representing self, gave public testimony in
support of HB 17. She related that she lives with a polycystic
disorder medical condition, and this has resulted in
complications with severe symptoms in her reproductive system.
She stated that she was put on puberty blockers and had been to
multiple doctors before being diagnosed. Once diagnosed, she
was placed on hormonal birth control which has eased her
symptoms. She discussed the difficulty she has had obtaining
medications, and the judgements she has faced with those
administering the medication in the pharmacies. She urged that
the committee support the proposed legislation.
3:51:14 PM
PAMELA SAMASH, representing self, gave public testimony in
opposition to HB 17. She shared that she lives in a rural
community and has been able to obtain birth control anytime
through telehealth. She argued that there is no risk for rural
residents in this aspect. She shared that after she took oral
birth control for three months, lumps developed in her breasts.
She argued that individuals seeking birth control must see a
doctor, as these medications can be dangerous. She expressed
the opinion that birth control can be deadly to women, such in
the occurrence of a blood clot or heart condition. She argued
that because birth control stops eggs from being fertilized once
released, this is a method of abortion. She concluded with the
argument that the proposed legislation "is a way to get Native
people to stop having babies." She continued that anytime the
word "rural" is used it means "Native;" therefore, the bill is
discriminatory.
3:53:57 PM
ROSE O'HARA-JOLLEY, representing self, gave public testimony in
support of HB 17. She expressed the opinion that the proposed
legislation would improve the lives of people in Alaska,
especially women. She shared that she has spent the majority of
her time in Alaska as a rural resident, working in an
environment away from health care. She shared that when she
began having [reproductive] health issues, getting to a pharmacy
was an issue. She began taking oral contraceptives for her
condition, and she stated that her doctor felt that taking this
"was perfectly healthy," and she was given a yearlong
prescription; however, she was only able to obtain one month's
supply from the pharmacy even though she lived hundreds of miles
away. She stated that she was forced to do the drive every
month to fill the prescription. She deduced that over $800 in
expenses and wages were lost. She added that she was lucky
because her supervisor understood, and she lived on the road
system. Addressing the ability to receive contraception via
telehealth, she stated that she lived 30 minutes away from the
post office where there was always a wait to pick up mail. She
referenced the delay of mail in rural Alaska, especially in the
winter.
3:57:34 PM
OLIVIA LYNN, representing self, gave public testimony in support
of HB 17. She shared that she is a lifelong Alaskan. She
stated that as a single woman birth control is a necessity for
her to be competitive in her work as an electrician. She stated
that without birth control, her work productivity would decrease
monthly because of "managing my symptoms - everything from
cramps to bleeding to headaches." She argued that consistent
access to birth control allows everyone the same opportunities
in the workplace.
3:59:00 PM
ED MARTIN, representing self, gave public testimony in
opposition to HB 17. He suggested that Chair Sumner should
claim a conflict of interest in terms of voting on the proposed
legislation, as "it may pertain to you making money off of a ...
a future sale for which this bill would support." He argued
that at one time his spouse became sick from taking a
contraceptive, and many women have gotten sick; therefore, the
proposed legislation is not good for human health. He argued
that abortion has already taken 60 million lives and pointed out
the loss of labor from the death of future children. He
expressed the opinion that the proposed legislation would pass
the cost on to those on Medicaid. He addressed the unmoral
issue of the proposed legislation, as it would affect his
finances and his religious beliefs.
4:01:51 PM
CHAIR SUMNER, after ascertaining that there was no one else who
wished to testify, closed public testimony.
4:02:21 PM
REPRESENTATIVE CARRICK gave final comments on the proposed
legislation. She pointed out the stories from public testimony
of how birth control has helped their lives. She pointed out
that the proposed legislation would not change the relationship
between the provider and the patient. She maintained that the
length of the prescription would not change, but it would change
in relation to the insurance coverage and the relationship with
the insurer. She reminded the committee that women on birth
control have a 30 percent drop in unplanned pregnancies and a 46
percent drop in the likelihood of having an abortion. She
reiterated that the proposed legislation would remove a barrier
to care that other states have already recognized.
4:04:32 PM
REPRESENTATIVE RUFFRIDGE moved to report CSHB 17(HSS) out of
committee with individual recommendations and the attached
fiscal notes. There being no objection, CSHB 17(HSS) was
reported out of the House Labor and Commerce Standing Committee.
4:05:07 PM
The committee took an at-ease from 4:05 p.m. to 4:07 p.m.
HB 92-FISHERMEN'S FUND: VESSEL OWNER CLAIMS
4:07:23 PM
CHAIR SUMNER announced that the next order of business would be
HB 92, "An Act relating to claims against protection and
indemnity insurance policies of vessel owners." [Before the
committee, adopted as a working document on 3/14/23, was the
proposed committee substitute (CS) for HB 92, Version 33-
LS0520\B, Marx, 3/9/23 ("Version B").]
4:07:57 PM
The committee took an at-ease from 4:07 p.m. to 4:08 p.m.
4:08:22 PM
REPRESENTATIVE SARAH VANCE, Alaska State Legislature, on behalf
of the sponsor, the House Special Committee on Fisheries,
presented CSHB 92, Version B, and gave a PowerPoint
presentation, titled, "HB 92 Fishermen's Fund: Vessel Owner
Claims" [hard copy included in the committee packet]. She
stated that the proposed legislation is at the request of the
Department of Labor and Workforce Development, and it would
increase the vessel owner deductible reimbursement to up to
$15,000. She added that the proposed legislation would allow
both the vessel owners and the crew members to receive the same
reimbursement, as seen on slide 2. She stated that there would
also be potential cost savings, as premiums could be less, and
it could protect against loss from medical and legal claims.
Moving to slide 3, she noted that the bill regards the
Fishermen's Fund, and she gave a summary of the fund. She
reiterated that the proposed legislation would create equity
between vessel owners and crew, which does not currently exist.
She discussed the liabilities with the current protection and
indemnity insurance structure on vessels.
REPRESENTATIVE VANCE stated that the department was requested to
examine the fund concerning the effects of increasing the
reimbursement to $15,000. On slide 4, she pointed out the
effect of the proposed legislation's worst-case scenario on the
Fishermen's Fund, and she pointed out the best-case scenario on
slide 5. She added that the best-case scenario had used a nine-
year average. She suggested in the best-case scenario the fund
would be kept stable with small increases over time, and she
expressed the understanding that the fund managers have agreed
that this would keep the fund healthy over time.
REPRESENTATIVE VANCE, moving to slide 6, reiterated that the
proposed legislation would establish equity between crew members
and vessel owners. She maintained that the bill would utilize
the fund for what it was intended to do, which is to help
commercial fisherman.
4:12:44 PM
VELMA THOMAS, Administrator, Fishermen's Fund Advisory and
Appeals Council, Division of Workers' Compensation, Department
of Labor and Workforce Development, addressed Version B. She
stated that the proposed legislation is based on a resolution
from the Fishermen's Fund Council, with these council members
representing all regions of the state. She stated that the
council members are available for questions pertaining to the
bill.
4:13:37 PM
REPRESENTATIVE CARRICK pointed out the lack of a fiscal note and
questioned the impact on the fund over time.
4:14:04 PM
CHARLES COLLINS, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development, responded that
the chart presented in the PowerPoint presentation addresses the
impact on the fund over time. He explained that this depicts
going backwards nine years, looking at all the claims. He
continued that 80 percent of the claims turned in were less than
$2,500 each, with 20 percent of these rising to the maximum
benefit, either $5,000 for crew or $10,000 for the vessel owner.
He stated that this was used for the projection, with the
revenue from permit and licensing fees staying static. He
deduced that the fund would still stay at $8 billion with this
conservative view. He pointed out that the fund predates
statehood, and the job of the council is to oversee this.
REPRESENTATIVE CARRICK, with a follow-up question, asked about
other current utilizations of the fund.
MR. COLLINS responded that statute allows money from the fund to
be allocated by the legislature for fisher safety programs;
however, he expressed the understanding that this has never been
done. He added that this would be the only other use of the
fund. He stated that the fund represents a user group funding
themselves, allowing the state to monitor the fairness of this.
4:17:18 PM
REPRESENTATIVE RUFFRIDGE questioned whether the fund operates
the same as workers' compensation. In other words, if a fisher
is injured, he questioned whether the payment at a medical
facility would be required up front.
MR. COLLINS clarified that commercial fishermen do not qualify
for workers' compensation. He stated that the Fishermen's Fund
is placed under the Division of Workers' Compensation because it
is a similar program, but the funds are not comingled.
MS. THOMAS, addressing how claims work, explained that injured
fishers' remedies are limited; either they can file a claim for
benefits to receive help from the fund or they can seek medical
assistance through the federal Jones Act for medical benefits
and lost wages. She stated that the Fishermen's Fund only pays
for medical benefits and not for lost wages. She continued that
a claim must be filed to receive these benefits. She explained
that there are two types of benefits, one for the injured fisher
and one for the vessel owner. She continued that if the vessel
owner has insurance in place to cover crew members, this can be
reimbursed.
4:20:09 PM
CHAIR SUMNER questioned whether the Fishermen's Fund is a
designated fund.
MS. THOMAS stated that as the fund administrator, she expressed
the understanding that the fund has always been a designated
fund. In response to a follow-up question, she stated that in
2018 an adjustment was made on the vessel owner portion. She
continued that in 2010 an adjustment was made by increasing the
injured-worker benefit portion. She added that from this there
was expectation of an increase in expenses, but this did not
happen. She explained that the reason for this could be
attributed to the federal Affordable Care Act; if an individual
has other insurance the fund becomes a secondary payer. She
suggested that most medical providers in the state know about
the fund and have the claim packets available, and they will
assist the fishers. She stated that as long as the medical
bills are received by the department and the criteria is met,
payments will be made right away. If an individual receives
treatment and uses personal insurance, the fund can help with
expenses on the out-of-pocket portions. She expressed the
opinion that individuals with personal insurance have helped
with the health of the fund over the last few years, as the fund
has only had to pay 20 percent of these medical costs.
4:23:06 PM
REPRESENTATIVE PRAX questioned whether a fiscal note would
affect the fund.
MR. COLLINS responded that the department has issued a zero
fiscal note because there would be no cost to the budget. In
response to a follow-up question concerning whether agreement on
the terms was across the board, he stated that the fishing
associates, such as the United Fishermen of Alaska, wanted to
move the amount to $10,000; however, the House Special Committee
on the Fishery's went to $15,000 because this would incentivize
the industry. He reiterated that if the vessel owner has other
insurance, and there is a claim against the vessel, the fund can
be applied to this deductible. He stated that the industry has
concerns over the increasing costs and deductibles of the
protection and indemnity insurance; however, he expressed the
opinion that the fund is still healthy enough to cover this. He
referenced the success of the Fishermen's Fund and stated that
the council works diligently to keep it this way.
4:26:43 PM
REPRESENTATIVE RUFFRIDGE questioned the specificity of
addressing "heart attacks" in the proposed legislation. He
suggested that this is because of the remoteness of some of the
fishing grounds and the cost of transporting the individuals.
MS. THOMAS answered that over the last five years there have
been only two heart attack claims. She added that some claims
do not meet the qualifying criteria. She stated that a valid
fishing license would need to be presented, and for some claims
this has not been presented. She expressed the opinion that
this being in the proposed legislation would not have a
significant effect on expenses.
MR. COLLINS added that there is no change in the language of the
bill other than the $15,000, as the heart attack language has
been there since around 1977.
4:28:46 PM
CHAIR SUMNER announced that CSHB 92, Version B, was held over.
HB 93-LUMBER GRADING PROGRAM
4:29:12 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 93, "An Act relating to a lumber grading training
program and lumber grading certificates; relating to use of
lumber graded and certified by a person holding a lumber grading
training program certificate; and providing for an effective
date."
4:29:36 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 93 out of committee
with individual recommendations and the attached fiscal notes.
There being no objection, HB 93 was reported out of the House
Labor and Commerce Standing Committee.
4:30:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 3.1.23 Cheryl Markwood Real Estate Resume.pdf |
HL&C 3/31/2023 3:15:00 PM |
|
| 3.1.23 Jennifer Mcconnel Labor Relations.pdf |
HL&C 3/31/2023 3:15:00 PM |
|
| 3.1.23 Ely Cyrus MCB.pdf |
HL&C 3/31/2023 3:15:00 PM |
|
| HB 92 - Sponsor Statement.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| HB 92 - v.B.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| HB 92 - Fishermen's Fund Presentation.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| HB 92 - Fishermens Fund Resoultion 22-01.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| HB 92 - Fisherman's Fund Report of Vessel-Site Insurance Form.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| HB 119 Sectional Analysis.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 119 |
| HB 119 Sponsor Statement.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 119 |
| HB0092 Fiscal Note.PDF |
HL&C 3/31/2023 3:15:00 PM |
HB 92 |
| Phleps_HB119_HLAC_042323.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 119 |
| Peace Frog Botanicals Support for HB119.pdf |
HL&C 3/31/2023 3:15:00 PM |
HB 119 |