Legislature(2009 - 2010)SENATE FINANCE 532
02/08/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB163 | |
| HB98 | |
| SB83 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 163 | TELECONFERENCED | |
| + | HB 98 | TELECONFERENCED | |
| + | SB 83 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 8, 2010
9:06 a.m.
9:06:03 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:06 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
Senator Johnny Ellis
ALSO PRESENT
Senator Joe Paskvan; Jerry McCune, United Fishermen of
Alaska; Mike Monagle, Program Coordinator, Department of
Labor and Workforce Development; Paula Scavera, Special
Assistant, Department of Labor and Workforce Development;
Senator Jay Ramras; Jane Pierson, Staff, Senator Jay
Ramras; Cheryl Walsh, Director, Division of Vocational
Rehabilitation, Department of Labor and Workforce
Development
PRESENT VIA TELECONFERENCE
Karla Jutzi, Executive Director, Center for the blind and
Visually Impaired, Office of the Governor
SUMMARY
SB 83 VOCATIONAL REHABILITATION COMMITTEE
SB 83 was heard and HELD in Committee for further
consideration.
SB 163 MAXIMUM BENEFIT FROM FISHERMEN'S FUND
SB 163 was heard and HELD in Committee for
further consideration.
CSHB 98 (FIN)am
ALCOHOL: MINOR CONSUMING/LOCAL OPTION
CSHB 98 (FIN)am was heard and HELD in Committee
for further consideration.
SENATE BILL NO. 163
"An Act increasing the allowances for injury,
disability, or heart attack payable from the
fisherman's fund; and providing for an effective
date."
SENATOR JOE PASKVAN, sponsor, explained the workings of SB
163, which updates the Alaska Fishermen's Fund limit to
$10,000. This will bring the program back to a meaningful
level of assistance as the payer of last resort for
commercial fishermen and crew who sustain injuries or
illness while fishing.
Senator Paskvan related that the Fund was established in
1951 and was set up to provide for the treatment and care
of Alaskan licensed commercial fishermen and crew who are
injured while fishing on shore or off shore in Alaska. The
upper limit on claims has remained at $2,500 since 1959. If
that amount had been adjusted for inflation, it would be
worth approximately $18,230 today. While the upper limit on
claims has remained unchanged, healthcare costs have
steadily risen.
Senator Paskvan explained that the Fund is financed by
revenue received from each resident and non-resident
commercial fisherman and crew for licenses and permit fees.
In 2008 there were 13,706 commercial permit holders who
contributed to the Fund. That included 135 from the
Fairbanks Northstar Borough. The Fund account has grown to
$11,500,000, even as healthcare costs have risen, due in
part to continuing improvements in fishing industry safety.
The bill updates the Fund limit to $10,000 to help ensure
that Alaska's fishermen have access to healthcare when
injured while fishing. It is important to note that this
increase is not projected to jeopardize the sustainability
of the Fund.
9:09:31 AM
Co-Chair Stedman inquired about commercial fishing
opportunities on the Chena River in Senator Paskvan's
district. Senator Paskvan said they were extremely limited.
He reported that the bill applies to the number of permit
holders that travel to commercial areas in the state, such
as the slips in Valdez.
Co-Chair Stedman noted a zero fiscal note from the
Department of Fish and Game and a fiscal note for $63,700
from the Department of Labor and Workforce Development. He
noted that the Fund has sufficient monies to absorb that
increase.
9:11:38 AM
JERRY MCCUNE, UNITED FISHERMEN OF ALASKA, spoke in favor of
SB 163.
Senator Huggins asked about workman's compensation
opportunities for fishers. Mr. McCune explained how money
from the permit fee goes into the Fund. He related history
from a loan program which began in the 70's for the purpose
of keeping Alaskan residents in the fisheries.
Senator Huggins asked about money sources for the Fund,
other than from permit fees. Mr. McCune replied that there
were no other sources of money except for the $50 per
permit from the permit holder and $23 from the crews.
Co-Chair Stedman restated that for each license, a portion
of the fee goes to the Fund. Mr. McCune agreed. Co-Chair
Stedman asked for a breakdown of out-of-state versus in-
state commercial fishermen. Mr. McCune did not have that
information.
9:16:02 AM
Senator Olson agreed that health expenses should be
covered. He requested more information as to how insurance
funds work. He wondered how the Fund ties in with the
Native Health Service and which insurance would be primary.
Mr. McCune related that the Fund is not the primary payer,
but rather secondary to other policies. A council reviews
all claims. Also, the incident has to happen on the job.
Senator Olson expressed concern that the fund may be
penalizing those covered by other plans. Mr. McCune
explained how the policy works with other insurance. Most
of the claims last year were for around $1,000. Senator
Olson pointed out that fishers in his district covered by
the Native Health System would not benefit by the Fund and
yet have to pay into it. Mr. McCune suggested that if the
Fund were to be used as the primary insurer, the money
would run out. Those who have no other insurance could use
the Fund, but the claim would have to be approved by the
council.
Senator Olson asked what the deductible is. Mr. McCune said
it is currently $2,500, but that can be appealed to the
council. The goal is to raise it to $10,000. Senator Olson
asked if the insurance is available to all fisheries. Mr.
McCune said it was available to all state permit holders
and licensed crew members.
9:21:01 AM
MIKE MONAGLE, PROGRAM COORDINATOR, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, in response to a question by Co-
Chair Stedman, offered to provide a spreadsheet that shows
the number of resident and non-resident permits and
licenses. The funds are transferred to the Department of
Labor monthly from the Department of Fish and Game and
twice a year from the Limited Entry Commission.
Co-Chair Stedman asked for the department's opinion as to
how the fund is working. He wondered if the department
supported the bill.
PAULA SCAVERA, SPECIAL ASSISTANT, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, stated that both the department and
the administration support the bill.
Co-Chair Stedman asked if Mr. Monagle wished to address Co-
Chair Hoffman's question. Mr. Monagle explained how the
Fund works. He called it a "payer of last resorts". Other
types of insurance are primary; the Alaska Fishermen's Fund
is a secondary payer.
9:23:43 AM
Senator Olson discussed the Indian Health Services's (IHS
relationship as the primary provider. Mr. Monagle agreed
that the Fund would not pay if IHS were the provider. When
there is a contract provider, the Fund is considered the
primary payer. Senator Olson expressed concern that a
Native fisher has to pay into the Fund, but cannot access
it. Mr. Monagle agreed that was correct, if there was no
deductible. The Fund would cover expenses not paid by IHS.
Senator Olson commented that IHS runs all of the clinics in
his district.
9:25:56 AM
Senator Huggins spoke of special interest groups and
worker's compensation. He requested information on upper
claims. Mr. Monagle said there is an upper limit of $2,500
currently. That is waived when there are compelling
reasons. There is an appeal process to request an extension
of benefits. Each year there is approximately $400,000
worth of requests for extended benefits. The council is not
limited to $2,500; the administration is. The council is
made up of commercial fishermen and meets only twice a
year.
Mr. Monagle noted that the Fund program is housed in the
Division of Workers' Compensation; however, the Workers'
Compensation Act specifically excludes commercial fishermen
from workers' compensation.
Senator Huggins gave a hypothetical example. Mr. Monagle
stated that the Fund does not pay death benefits. He
related the benefits of the Jones Act, a civil action
remedy. He thought that most vessel owners carried
indemnity insurance.
9:30:05 AM
Co-Chair Stedman asked for more information about a chart
entitled, "License Revenue Activity" (copy on file). Mr.
Monagle explained that some recent deficits were due, in
part, to the council's allowing of large payments. He said
there were not many extension requests for claims in excess
of $10,000. The council does consider availability of
funding when paying large claims.
Co-Chair Stedman requested information about 2009 resident
and non-resident revenue. Mr. Monagle clarified that
licenses for residents are less than for non-residents and
the contribution to the Fund is 39 percent of the license
fee. Non-residents pay a higher rate.
Co-Chair Stedman requested information about claims from
both groups. Mr. Monagle offered to provide that
information.
9:34:03 AM
Senator Huggins asked about the "child" category. Mr.
Monagle said there is a child crew member license
requirement for those up to 14 years old. Senator Olson
asked for clarification on the age requirement. Mr. Monagle
said 14 and below. He did not know about enforcement
issues.
Senator Thomas asked if the data was from a calendar year
or a fiscal year. Mr. Monagle said it was a fiscal year.
Senator Thomas asked where the money is invested. Mr.
Monagle explained that the money is a dedicated fund, not
in the general fund. The Fund does not earn interest. A
provision in statute says up to 50 percent of the earnings
may be used for safety education. Co-Chair Stedman thought
it was a General Fund and Other Non-Segregated Investments
(GeFONSI) classification.
Senator Thomas asked about the trends in the number and
costs of claims. There have been fewer claims, but they
have been more costly. Receipts are down and benefits paid
are somewhat static.
9:37:34 AM
Senator Egan asked how increasing the benefit amount to
$10,000 would impact the surplus/deficit column. Mr.
Monagle reported that the administration's ability to
approve a claim is currently limited to $2,500. There are
typically 100 appeals twice a year for claims between
$2,500 and $10,000, some of which are paid. The department
felt that it could sustain an increase of about $65,000 if
it paid those claims.
9:39:24 AM
Co-Chair Stedman asked for further information about the
breakdown of claims.
Senator Egan asked who administers the Fund and decides on
the amount of the year-end Fund balance. Mr. Monagle said
the Fund balance is a moving target and is not set. The
council keeps an eye on it when paying extra benefits.
SB 163 was heard and HELD in Committee for further
consideration.
9:41:54 AM
CS FOR HOUSE BILL NO. 98(FIN) am
"An Act relating to minor consuming and repeat minor
consuming; relating to penalties for violations of
limitations on possessing, sending, shipping,
transporting, or bringing alcoholic beverages to,
soliciting or receiving orders for delivery of
alcoholic beverages to, and the manufacture, sale,
offer for sale, barter, traffic, or possession of
alcoholic beverages in, a local option area; and
providing for an effective date."
SENATOR JAY RAMRAS, SPONSOR, explained the content of HB
98. He related that there are three types of minor
consuming; minor consuming, repeat minor consuming, and
habitual minor consuming. The bill fixes a problem that
occurred with the enactment of HB 359, an effort by the
state to allow those convicted of minor consuming to join
the military. Previously, if they were on probation with
the state, through the age of 21, they did not have access
to enlisting in the military. This legislation eliminates a
problem with HB 359.
9:44:11 AM
JANE PIERSON, STAFF, SENATOR JAY RAMRAS, echoed that the
bill is a "fix" bill. Previously, if a person was convicted
of minor consuming, they would not be placed on probation,
which would result in never reaching a repeat minor
consuming status. There was a change to HB 98 on the House
Floor to include that minor consuming and repeat minor
consuming are not criminal offenses; only repeat minor
consuming is a misdemeanor. The Department of Law added a
fix to the bootlegging provision which would bring
sentencing and penalties in line with the DUI felony
provision.
Co-Chair Stedman noted three zero fiscal notes and one
indeterminate note from the Department of Corrections. The
committee is waiting for an updated FY 11 fiscal note from
the Department of Corrections.
HB 98 was heard and HELD in Committee for further
consideration.
9:46:38 AM
CS FOR SENATE BILL NO. 83(L&C)
"An Act repealing the Governor's Committee on
Employment of People with Disabilities; creating the
State Vocational Rehabilitation Committee and relating
to the committee; and providing for an effective
date."
CHERYL WALSH, DIRECTOR, DIVISION OF VOCATIONAL
REHABILITATION, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, read the sponsor statement:
Senate Bill 83 is an act repealing the Governor's
Committee on Employment and Rehabilitation of People
with Disabilities; creating the State Vocational
Rehabilitation Committee.
The primary purpose of this legislation is to bring
current state statute into compliance with federal
laws. During the first week in May, a monitoring team
from the Federal Rehabilitation Services
Administration will be in Alaska so the division is
very interested in having this bill pass prior to
their visit.
The bill repeals the Governor's Committee on
Employment of People with Disabilities (GCEPD) and
creates the State Vocational Rehabilitation Committee
which will function as the State Rehabilitation
Council and the Assistive Technology Advisory
Committee, both of which are required by federal law
to accept funding for the Assistive Technology grant
and to operate the Vocational Rehabilitation Client
Services Program which assists Alaskans with
disabilities to obtain employment. Membership
requirements of the State Rehabilitation Council and
the Assistive Technology Advisory Committee are very
similar.
The bill addresses the appointment, number,
composition of committee members. Membership described
in current state statute is related to a board that no
longer required and is no longer relevant. The bill is
designed to allow the composition of the committee to
change without revising state statutes, if federal
regulations change. This was done at the
recommendation of legislators during the 2007
legislative session. Since the committee is funded
from same funds used to provide services and make
assistive technology available to Alaskans with
disabilities, the division is not interested in
growing the size of the committee beyond what is
required. There is no paid staff on the committee.
The bill also addresses the selection and term of the
committee chair. It eliminates the need for the
governor to appoint the chair, allowing the voting
members of the committee to make a selection, subject
to disapproval by the governor.
The bill provides for four meetings per year which may
be conducted telephonically. The committee currently
makes sure that at least one meeting is held in a
rural location. The ability to conduct meetings
telephonically allows for committee members to
participate when their disability makes travel
difficult. If necessary, and when appropriate, the
committee could hold telephonic meetings to control
expenses.
The bill allows for a smooth transition of current
members to the State Vocational Rehabilitation
Committee.
In closing I'd like speak specifically to the value
that this committee brings to the Division of
Vocational Rehabilitation. This committee brings an
important external view to the agency. Members act as
a voice for consumers and other stakeholders in the
public rehabilitation system. Without the structure of
a volunteer, governor-appointed board; the division
would not have access to the talent, wisdom and
experience that members bring. The majority of members
also bring the perspective of what it is like to live
with a disability. Their perspective enriches the
program greatly as we conduct the statewide needs
assessment, survey consumer satisfaction, host
community forums, review agency policies, and make
recommendations to improve service provision. At each
of their quarterly meetings, they reserve an entire
hour to receive public testimony from individuals who
are currently receiving services. This hour is always
filled with incredibly valuable feedback.
Committee members recently met with legislators and
handed out their annual report to the governor. The
report describes their purpose, history,
responsibilities, goals, and results of the consumer
satisfaction surveys. If you have not received a copy,
I would be happy to give you one.
One final note, creating the State Vocational
Rehabilitation Committee would end the confusion
between the Governor's Council on Disabilities and
Special Education and The Governor's Committee on the
Employment and Rehabilitation of People with
Disabilities. Although the purpose of each board is
very different, the public often confuses them because
the names are so similar.
9:51:48 AM
Co-Chair Stedman commented that the bill was due to federal
regulations. He wished to know more about the costs, and
whether it was an unfunded mandate. He requested the
administration's opinion and wondered if the bill required
future legislative adjustments.
Ms. Walsh explained that the committee is funded by the
Client Services budget for $65,000 per year. The
legislation requires that the committee have about 15
members, of which 51 percent have disabilities. The bill is
correcting the composition of the committee, which
currently caps the members at 12. The difference in cost of
three more members would be about $7,500 per year and would
be grant funded.
9:53:51 AM
Co-Chair Stedman summarized that the three additional seats
would be fully funded by the federal government, which is
requesting the new committee. Ms. Walsh said the department
has a match requirement. She did not foresee a need to
change this legislation in the future because its goal is
to correct a statute which has been out of alignment.
Co-Chair Stedman wondered what response the administration
would have if the federal government decided to reduce the
$7,500 amount. Ms. Walsh reported that there were a number
of ways the committee could meet, such as telephonically,
in order to save money.
9:55:47 AM
Senator Thomas asked if there was a measuring mechanism to
see the impacts of job placement. Ms. Walsh wondered if
Senator Thomas was asking how many people were employed.
Senator Thomas wished to see evidence of job placement
results related to the committee. Ms. Walsh clarified the
role of the committee regarding policy changes, business
development, and surveys. The committee is not actually
tied to placements of individuals. She reported that 549
individuals with significant disabilities were placed in
competitive employment last year. Senator Thomas wondered
if that was as a result of the committee's activity. Ms.
Walsh believed that the committee increased the quality of
placement.
9:58:56 AM
Senator Huggins wondered which categories of people are
represented on the committee. He restated the question
related to page 2, line 5 of the bill. Ms. Walsh replied
that the current member representatives are listed in the
bill. The required members are: one vocational
rehabilitation counselor, one certified rehabilitation
provider, four business, industry or labor representatives,
one person from the Alaska Workforce Investment Board, the
Statewide Independent Living Council designee, one Parent
Training representative, one Tribal Vocational
Rehabilitation representative, one Client Assistance
Program representative, the Vocational Rehabilitation
Director, a Statewide Education representative, a former or
current Vocational Rehabilitation consumer, and a
representative of individuals who have difficulty
representing themselves because of their disabilities.
Co-Chair Stedman asked if the administration supports the
bill. Ms. Walsh said it did.
Ms. Scavera offered to answer questions.
10:02:43 AM
KARLA JUTZI, EXECUTIVE DIRECTOR, CENTER FOR THE BLIND AND
VISUALLY IMPAIRED, OFFICE OF THE GOVERNOR, testified via
teleconference. She spoke in support of the bill which
corrects an outdated statute that makes it difficult for
the governor's office to make committee appointments that
are in compliance with current federal regulations.
Co-Chair Stedman noted one fiscal note from the Department
of Labor and Workforce Development which reflects the
$7,500 increase in travel and per diem for the three
additional members of the committee. The cost will be
absorbed in the division's current budget.
SB 83 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:04 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB163_Backup_Condition_of_Fish_Fund.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| SB163_Letters_of_Support.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| SB163_Sponsor_Statement.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| New Courts FN CSHB 98 (FIN) am.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| Sponsor Statement.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| Explanation of Changes.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| Sectional.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| Westlake statutes.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| statutes.pdf |
SFIN 2/8/2010 9:00:00 AM |
HB 98 |
| CS SB83 L&C fiscal note 2-10.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| CS SB 83 (L&C) section analysis.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| 29 USC 725.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| SB 83 additional letters of support.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| 29 USC 3003.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| sb 83 letter of support boynton.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| SB 83 letters of support.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| SB 83 Commissioner's letter.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 83 |
| New FN SB163-DOLWD-FF-02-05-10.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| DOLW License Revenue Activity.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| Fish Fund Claims by Residency.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| Fishfund Claims by year and amount.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| Residency Requirements for Crewmember License.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |
| Residency Requirements for Limited Entry Permits.pdf |
SFIN 2/8/2010 9:00:00 AM |
SB 163 |