Legislature(1997 - 1998)
03/05/1997 01:40 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 13
"An Act relating to marine safety training and
education programs."
REPRESENTATIVE ALAN AUSTERMAN stated that the Alaska Marine
Safety Education Association (AMSEA) has been operating in
the State of Alaska for 12 years. The primary purpose of
the organization is to reduce the loss of life and injury in
the Alaskan marine environment by providing education
through a statewide network of qualified marine safety
instructors.
AMSEA provides the safety training required by the
Commercial Fishing Vessel Safety Act of 1988 to communities
throughout Alaska. The Act, which took effect in 1991,
requires a minimum in safety training and equipment for
commercial fishing vessels.
Representative Austerman continued that AMSEA also helps
Alaskans by providing marine safety instructor training, and
that some of these teachers teach drill instructor courses.
Other marine safety instructors also train the Alaska
boating and fishing public, including many children and
adults, in marine safety. Of the 7,300 people AMSEA trained
in 1995, 2000 were from the commercial fishing industry and
3,700 were children.
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According to a study conducted in 1995 by the Native Health
Service, the AMSEA training significantly reduced fatalities
among commercial fishermen, thus, coinciding with a 50%
percent drop in fishing fatalities in Alaska over the past
four years. Representative Austerman suggested that AMSEA
deserves the State's intervention to ensure a long-term
stable funding source.
He pointed out that the Fishermen's Fund (AS 23.35.060) was
created before statehood. One hundred percent of the
fishermen's fund is provided by commercial fishing license
fees. Sixty percent of license fees are dedicated to that
fund. Since commercial fishermen are often the
beneficiaries of the required marine safety training, it
would be appropriate to allow part of the interest of that
fund to be used to support some of AMSEA's marine safety
programs.
Representative Austerman pointed out that the note which
passed out of the House Finance Committee last year was in
the amount of $150 thousand dollars. The group would be
comfortable with that amount, although, he pointed out that
current interest earnings for the fund are in the amount of
$450 thousand dollars.
Representative Mulder asked if the program had considered a
fee-based structure for funding. Representative Austerman
requested that Mr. Dugan, the Executive Director of the
program respond.
Representative Martin asked the amount currently available
in the fund. Representative Austerman replied that
approximately $7.367 million dollars remains in the
Fishermen's Fund. The Department of Treasury would be
responsible for any investment. Co-Chair Therriault
corrected that the current balance in the account was $9
million dollars. Representative G. Davis questioned why the
fiscal note indicated only a 5.3% interest rate.
JERRY DUGAN, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA MARINE SAFETY EDUCATION ASSOCIATION
(AMSEA), PETERSBURG, responded to Representative Mulder
explaining that AMSEA currently uses a fee-based structure
for most of the provided training. A sliding scale fee is
used, which varies depending upon the need. Most of the
fees are used to pay the instructor and not to supplement
the program.
At the end of last year, the program was faced with a $50
thousand dollar budget, reducing the staff to one person to
run the entire State program. In October, 1996, the program
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received a federal grant increasing that budget, although,
those funds end September 30, 1997. There is no guarantee
of funding after that point.
Representative J. Davies inquired about the needed amount.
Mr. Dugan responded that the program would need $150
thousand dollars to stay "afloat". That amount would
provide the core program and staff a 2.5 person office to
coordinate, administer and instruct programs throughout the
State.
In response to Representative Davies, Mr. Dugan noted that
his office had provided a budget detail sheet to
Representative Austerman's office last year. A handout of
the budget detail sheet was provided to Committee members.
[Attachment on file].
Representative Mulder inquired the "range" of charges
required of the communities. Mr. Dugan explained that the
least amount would be free and only for a very needy group.
The highest amount charged was $65/hour.
Representative Mulder questioned the criteria used to
determine if a group had "great need". Mr. Dugan stated
that "great need" could be used to reference a commercial
fishermen group under a federal deadline mandating the
training before the fishing season had begun and before
income had begun to come in. He suggested that a good
example would be the Village of Angoon on Admiralty Island,
an area with a high level of unemployment.
Representative Mulder asked who was required to complete the
AMSEA training. Mr. Dugan explained that fishermen on
documented fishing vessels which fish in outside waters or
beyond the western coast would be required. Representative
Mulder questioned how the "children" aspect worked into the
training. Mr. Dugan explained that marine safety is also
taught to high school children who fish or crew on boats.
For younger children, there is an abbreviated program to
familiarize them with boating devices and safety procedures.
Mr. Dugan continued, if someone were certified in the
training, they would then be able to train others. That
instruction would be beyond the regular level of instruction
and is the core of the program.
Representative Mulder observed that once a funding mechanism
is in place, it becomes close to impossible to remove it
from the books. Mr. Dugan pointed out with more instructors
trained, the group then will be responsible to administer
the programs.
PAT HOLMES, (TESTIFIED VIA TELECONFERENCE), FISHERMAN,
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KODIAK, testified in support of the legislation. He pointed
out that Alaska has ten times the national rate of drowning.
Alaska is the only State which has no marine safety statutes
or programs. AMSEA provides in Alaska, what many other
states government's are mandated to provide. He emphasized
how important the program is to the State. He pointed out
that previous funding had been provided through grants, a
program which now is "drying" up. He urged the Committee's
support of the legislation.
AL BURCH, (TESTIFIED VIA TELECONFERENCE), KODIAK, voiced
support of the legislation. He provided a brief history of
fishing in Alaska. He spoke to the resistance that most
fishermen have had toward a federal initiative to mandate
training and how that attitude has changed through the many
lives which have been saved because of the program. He
urged that a portion of the interest on the Fishermen's Fund
be used to further save lives.
BILL BARKER, (TESTIFIED VIA TELECONFERENCE), FISHERMAN,
KODIAK, spoke in favor HB 13. He stressed that AMSEA's work
saves lives and how important the training would be for the
fishing communities. The program is an educational concern
and would be appropriately funded through the Fishermen's
Fund. Mr. Barker reiterated that the training saves lives.
BARBARA BURCH, (TESTIFIED VIA TELECONFERENCE), KODIAK
FISHERMEN WIVES ASSOCIATION, KODIAK, testified in support of
the legislation stressing the importance of the program.
SUE HARGIS, UNITED STATES COAST GUARD (USCG), JUNEAU, noted
support of the legislation. She noted the importance of the
program as there are no other State programs which
coordinate any type of boating efforts. She urged members
to support the legislation.
MARK JOHNSON, EMERGENCY MEDICAL SERVICES (EMS), DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, voiced strong support of HB
13. Drowning in Alaska is a major public health problem;
often there are more drownings in the State than there are
deaths on public highways. He advised that the Office of
Emergency Medical Services provided the first drowning study
in 1979, and recognized drowning as a major public health
problem since then. EMS is one of the agencies which helped
form AMSEA and has continued to help fund them through a
variety of federal grants since that time. All those grants
have been temporary. Mr. Johnson stressed that the
organization deserves stable funding.
Co-Chair Hanley asked if the Governor had included funding
for that item in this year's budget.
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AMY DAUGHERTY, STAFF, REPRESENTATIVE ALAN AUSTERMAN, stated
that no funding had been included in the FY98 budget for
AMSEA.
Co-Chair Therriault asked if it had been acknowledged that
only AMSEA be the recipient of the grant for education.
Representative Austerman responded that the AMSEA
organization, to date, has provided the training as a result
of federal laws. He agreed that as the program matures, it
could be placed into the private sector. Representative
Martin exclaimed that a 5.2% interest rate was a low rate.
BETTY MARTIN, STATE COMPTROLLER, STATE TREASURY, DEPARTMENT
OF REVENUE, replied that the current general investment
funds include over one hundred smaller funds, some of which,
through statutory or Attorney General opinions have the
right to receive their own interest. The Fishermen's Fund
is not one of those funds. The Department of Administration
determines which of those funds are eligible for interest.
The current agreement is to pay each organization at the
rate of 5.2% interest income. The State at this time is
reconsidering the practice with the intent to pay the entire
interest received to each of the individual funds.
(Tape Change HFC 97-46, Side 2).
Representative Martin asked if there was a major disaster,
could the principle of the fund be used quickly. Ms. Martin
explained that there was a limit of $2,500 dollar per person
cap to the amount paid out of the fund. Representative
Martin questioned the cap.
Representative Martin suggested that the amount provided to
AMSEA should be a guaranteed amount rather than a moving
amount as predetermined by the interest rate. Co-Chair
Therriault pointed out that the language was permissive and
that the Legislature could appropriate "none" or "all"
through the budgeting process. Representative Martin
reiterated that a specific number should be guaranteed. Co-
Chair Hanley added that the appropriation would be a
budgetary issue and that any amount could be appropriated.
He pointed out that if the bill passes, it would be
accompanied by a fiscal note, however, next year, the
request would only be a line item in the budget, open to
debate.
Representative J. Davies asked where the money for the
fiscal note would be indicated in the budget. Co-Chair
Therriault distributed the House Finance Committee a new
zero fiscal note, suggesting that through the budget
process, the amount would be determined. In the past, the
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Department of Administration placed the request in
designated grants component in Department of Community and
Regional Affairs budget. Representative J. Davies asked if
the money was appropriated, would it appear as designated
program receipts. Co-Chair Therriault stated that the
Department would be responsible to show a reduction in order
to authorize requested funding for the program.
Representative G. Davis MOVED to delete language on Page 1,
Lines 9 & 10, "to the Alaska Marine Safety Education
Association". There being NO OBJECTION, it was adopted.
Representative Martin MOVED to change Page 1, Line 8,
deleting "50 percent" and inserting "up to $250 thousand
dollars". Co-Chair Hanley believed that could create a
problem when $250 thousand dollars was not earned in
interest income. He reiterated that the issue could be
addressed in the budget process.
Co-Chair Therriault OBJECTED to Amendment #2.
Representative J. Davies voiced support to keep the number
"floating", reminding members that there will always be
pressure to keep it as small as possible.
A roll call vote was taken on the MOTION.
IN FAVOR: G. Davis, Martin, Mulder
OPPOSED: Foster, Kohring, J. Davies, Therriault,
Hanley
Representatives Grussendorf, Kelly, and Moses were not
present for the vote.
The MOTION FAILED (3-5).
Representative G. Davis noted for the record that he
supported the work of AMSEA and that the reason for his
amendment was not intended as a personal threat to that
group.
Representative Foster MOVED to report CS HB 13 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Co-Chair Hanley disclosed that
he had a conflict of interest as he does acquire a
commercial fishing license and has utilized the AMSEA fund.
Representative J. Davies requested more discussion regarding
the fiscal note. He understood that a fiscal note needed to
be funded for the first year and would then be dropped into
the budget line items the second year.
Co-Chair Hanley commented that had been the approach last
year. Conference Committee often reduces fiscal notes to
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squeeze them within a certain dollar amount. He suggested
that the fiscal impact of the legislation be discussed in
the Department of Community and Regional Affair's
Subcommittee priority. He added that the Governor should
offer an amendment to cover the requested dollar amount.
Co-Chair Therriault said if a statutory change is made to
start a new program, the first year, it would be funded
through a fiscal note, thereafter, it would be built into
the base of the budget. Because HB 13 is permissive, it
could be either way.
Representative J. Davies foresaw a problem with the
subcommittee trying to place money into a budget for a
program not yet signed into effect. Co-Chair Therriault
advised that to appropriate to the program, would not
require that the program be in effect. Representative J.
Davies voiced concern that there clearly was a fiscal impact
which should be noted in the fiscal note. Co-Chair Hanley
responded that all fiscal notes accompany the bill to
Conference Committee.
CS HB 13 (FIN) was reported out of Committee with a "no
recommendation" and with zero fiscal notes by the Department
of Labor dated 2/21/97 and the House Finance Committee.
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