03/07/2023 10:00 AM House FISHERIES

          HB 92-FISHERMEN'S FUND: VESSEL OWNER CLAIMS                                                                       
                                                                                                                                
10:01:23 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE  announced that the  only order of business  would be                                                               
HOUSE BILL NO. 92, "An  Act relating to claims against protection                                                               
and indemnity insurance policies of vessel owners."                                                                             
                                                                                                                                
10:02:07 AM                                                                                                                   
                                                                                                                                
JAKE  ALMEIDA, Staff,  Representative Sarah  Vance, Alaska  State                                                               
Legislature, presented HB  92 on behalf of the  bill sponsor, the                                                               
House  Special Committee  on Fisheries,  on which  Representative                                                               
Vance serves  as chair.   He stated that  HB 92 would  change the                                                               
vessel  insurance  deductible from  $5,000  to  $10,000 under  AS                                                               
23.35.145.    He  began  a  PowerPoint  presentation  [hard  copy                                                               
included  in  the  committee packet],  to  explain  vessel  owner                                                               
claims with  the Alaska Fishermen's  Fund.  He  brought attention                                                               
to   slide  2,   titled   "Increases   Vessel  Owner   Deductible                                                               
Reimbursement  to   $10k,"  which  read  as   follows,  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Establishes Equity                                                                                                         
                                                                                                                                
     Vessel  owners &  Crew members  will  receive the  same                                                                    
     reimbursement.                                                                                                             
                                                                                                                                
     Potential Cost Savings                                                                                                     
                                                                                                                                
     May  pay  less  in  Protection  &  Indemnity  insurance                                                                    
     premiums.                                                                                                                  
                                                                                                                                
     Protection of Loss                                                                                                         
                                                                                                                                
     May help protect against loss  due to medical and legal                                                                    
     claims.                                                                                                                    
                                                                                                                                
MR. ALMEIDA  directed attention to  slide 4,  titled "Fishermen's                                                               
Fund  Established  in 1951,"  which  read  as follows,  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The  Fishermen's Fund  provides for  the treatment  and                                                                    
     care of  Alaska-licensed commercial fishermen  who have                                                                    
     been injured while fishing on or offshore in Alaska.                                                                       
                                                                                                                                
     Benefits  from  the  Fund  are  financed  from  revenue                                                                    
     received from each  resident and nonresident commercial                                                                    
     fisherman's license and permit fees.                                                                                       
                                                                                                                                
     The  Commissioner of  Labor  and Workforce  Development                                                                    
     oversees  the administration  of the  program with  the                                                                    
     assistance  of   the  Fishermen's  Fund   Advisory  and                                                                    
     Appeals Council.                                                                                                           
                                                                                                                                
10:04:28 AM                                                                                                                   
                                                                                                                                
MR. ALMEIDA moved  on to slide 4, titled "Worst  Case Scenario to                                                               
Fishermen's  Fund,"  which shows  a  histogram  of the  potential                                                               
decline in payments from 2024 to  2033.  Slide 5, titled "Changes                                                               
to Fishermen's  Fund," shows a  similar histogram with  the nine-                                                               
year average of what the fund  would payout with an increase from                                                               
$5,000 to $10,000, as proposed under HB 92.                                                                                     
                                                                                                                                
10:05:36 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:05 a.m. to 10:07 a.m.                                                                     
                                                                                                                                
10:07:31 AM                                                                                                                   
                                                                                                                                
CHARLES COLLINS,  Director, Central Office, Division  of Workers'                                                               
Compensation,  Department  of   Labor  &  Workforce  Development,                                                               
reminded the committee that workers'  compensation has nothing to                                                               
do with commercial fishers, thus  the Alaska Fishermen's Fund was                                                               
established before statehood to protect its workforce.                                                                          
                                                                                                                                
10:08:28 AM                                                                                                                   
                                                                                                                                
VELMA  THOMAS,  Administrator,   Fishermen's  Fund  Advisory  and                                                               
Appeals  Council, Division  of Workers'  Compensation, Department                                                               
of Labor  & Workforce  Development, noted  that fishers  can seek                                                               
remedies under  the U.S.  Jones Act.   She  said the  fund always                                                               
reimburses for  medical expenses.   She said  HB 92 is  a win-win                                                               
for  fishers and  vessel  owners.   She  described  a graph  that                                                               
tracked  vessel owner  claims from  2014  to 2018,  and she  said                                                               
there  is no  significant increase  and there  are savings.   She                                                               
spoke about average costs and  said the fund is "really healthy."                                                               
She concluded, "So, we do not see a negative for this proposal."                                                                
                                                                                                                                
10:12:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HIMSCHOOT expressed concern  there was no stop-gap                                                               
measure to  prevent [further] cost  increases, and  she suggested                                                               
that would be something to address "down the road."                                                                             
                                                                                                                                
MS.  THOMAS referred  back to  the  graph that  shows the  9-year                                                               
average  of the  fund,  and  she indicated  that  the fund  could                                                               
survive a "worst-case scenario."                                                                                                
                                                                                                                                
10:13:34 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE  set an amendment  deadline and announced that  HB 92                                                               
was held over.