Legislature(2023 - 2024)GRUENBERG 120
03/14/2023 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB92 | |
| Presentation(s): Alaska's Commercial Hatcheries by Department of Fish and Game and the Alaska Salmon Aquaculture Alliance. | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 92 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HB 92-FISHERMEN'S FUND: VESSEL OWNER CLAIMS
10:03:34 AM
CHAIR VANCE announced that the first order of business would be
HOUSE BILL NO. 92, "An Act relating to claims against protection
and indemnity insurance policies of vessel owners."
10:03:52 AM
REPRESENTATIVE MCCABE moved to adopt the proposed committee
substitute (CS) for HB 92, Version 33-LS0520\B, Marx, 3/9/23,
("Version B") as a working document.
CHAIR VANCE objected for the purpose of discussion.
10:04:24 AM
REPRESENTATIVE MCCABE stated that Version B would change the
amount [of insurance reimbursements from the Fishermen's Fund
("fund")] from $10,000 to $15,000.
CHAIR VANCE added that changes in Version B would increase the
claims by the vessel owners and crewmembers to $15,000. She
requested that a representative from the Department of Labor and
Workforce Development (DOLWD) speak to the proposed changes.
10:06:26 AM
VELMA THOMAS, Administrator, Fishermen's Fund Advisory and
Appeals Council, Division of Workers' Compensation, Department
of Labor and Workforce Development, presented a graph [from a
previous presentation, copy included in the committee packet]
which showed the worse-case scenario [for the Fishermen's Fund
if the reimbursement amount was changed to $15,000]. She stated
that the graph is based on the recent nine-year average. She
mentioned the direct effect from the three years of the COVID-19
pandemic on the number of claims received. Concerning the
proposed legislation, she expressed uncertainty whether it would
present a risk of spending down the fund.
10:07:43 AM
CHARLES COLLINS, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development, reminded the
committee that in all financial markets past performance is not
indicative of future growth or loss. On behalf of DOLWD, he
stated that the department has no opinion on the proposed
legislation. He added that the Fishermen's Fund Advisory and
Appeals Council ("council") has expressed the desire to raise
the vessel owner's reimbursement to $10,000. He added that the
crewmember reimbursement has been capped at $10,000 for quite a
few years, so there is a historical view on this. He stated
that claims have fallen over the past couple of years; however,
there has also been less fishing activity.
10:08:45 AM
MS. THOMAS, in response to a question from Representative
Himschoot, noted that in 2010 when the council raised the limit
to $10,000, there was a concern [the fund would be effected
negatively]; however, she expressed the belief there is a
correlation between the advent of the Affordable Health Care Act
and the decrease in claims. She reiterated that this is just
her observation and there has been no study. She discussed this
idea further.
REPRESENTATIVE HIMSCHOOT questioned whether it would be easy
legislatively to reduce the reimbursement amount if the fund
drops too low.
CHAIR VANCE clarified that this would be a statutory change.
She explained the historical changes of insurance premiums for
the fund. She expressed the purpose of the fund is to support
the fishermen, and the idea behind the proposed legislation is
that costs and premiums have increased. As long as the fund
remains stable, she suggested, the idea of raising the amount
would be proactive.
MS. THOMAS, in response to a follow-up question, stated that the
vessel owner reimbursement was changed to $5,000 in 2018.
REPRESENTATIVE STUTES voiced trepidation about the additional
$5,000. She pointed out that there were not many claims during
the pandemic, along with less participation in the fisheries.
She argued that the fund should remain static, as opposed to
destabilizing the fund by increasing amounts too much.
10:12:48 AM
CHAIR VANCE, per the chart, expressed the opinion that the
health of the fund remains stable. She questioned the historic
number of claims that created the chart's projection.
MS. THOMAS responded that this reflects around 300 claims a year
over the past nine years. She continued that before 2014, the
claims were smaller, but there were more, around 400 to 600 a
year; however, she pointed out that at that time the fund was
worth less. She stated that because of the changes, this
comparison would be difficult to make.
10:14:25 AM
CHAIR VANCE suggested that if reimbursements are increased to
$15,000, with these projections, the fund appears stable, and it
would be helpful to the fishermen. She questioned, if it had to
be reduced statutorily, what the effects on the fishermen would
be.
MS. THOMAS expressed uncertainty because the information would
be difficult to gather.
MR. COLLINS pointed out that DOLWD and all other stakeholders
closely watch the fund. He suggested if there were a problem,
it would be addressed quickly. He said the fund is a unique
program within the state, and it is taken very seriously. He
pointed out that the drop in claims, less participants in the
fishery, and the rise in the costs are all factors to consider.
He expressed support for the projections and the idea that there
would not be a major impact on the growth of the fund. He then
suggested, "It only takes one bad claim."
10:17:55 AM
REPRESENTATIVE HIMSCHOOT questioned whether the legislature
would receive an annual update on the growth and management of
the fund.
MR. COLLINS said there is nothing in statute to create an annual
report; the only updates would be to the council.
REPRESENTATIVE CARPENTER, from conversations with fishermen, he
expressed the understanding that there is support for an
increase in the reimbursement amounts if the fund's balance is
maintained. Per the projection, he weighed the value of the
fund for current fishermen versus the value for future
generations. He questioned the amount of money the fund needs.
He argued that if the fund grows exponentially, it would become
a target for other uses. He suggested that the fund be balanced
per the needs of the current generation along with the needs of
the future generation, while reducing the risk that the balance
becomes a target. He advised that, in consideration of the
rising cost of health care, this would be prudent. He further
explained his opinion of why the proposed legislation would not
put the fund in jeopardy.
10:21:16 AM
REPRESENTATIVE STUTES expressed the opinion that it is critical
fishermen be the recipient of these funds, as opposed to others
looking to use the fund because of its size. She also expressed
the understanding that if the fund were in jeopardy, this would
be quickly addressed.
10:22:09 AM
CHAIR VANCE removed her objection. There being no further
objection, Version B was before the committee.
10:22:24 AM
CHAIR VANCE opened public testimony.
10:23:02 AM
JERRY MCCUNE, Lobbyist, Cordova District Fishermen United,
expressed support for the proposed legislation. He related that
in the past when the reimbursement amount was raised, this was
the result of high cost for fishermen. He noted that there is
no way to know the number of fishing injuries that will happen
in a year. He expressed the opinion that the fund would be able
to sustain the rise in reimbursements, and on behalf of Cordova
District Fishermen United, he expressed support.
10:23:50 AM
The committee took a brief at-ease.
10:24:07 AM
CHAIR VANCE, after ascertaining that there was no one else who
wished to testify, closed public testimony.
10:24:41 AM
REPRESENTATIVE MCCABE moved to report CSHB 92, Version 33-
LS0520\B, Marx, 3/9/23, out of committee [with individual
recommendations and the accompanying fiscal notes], giving
Legislative Legal Services the authority to make all technical
and conforming changes. There being no objection, CSHB 92(FSH)
was reported out of the House Special Committee on Fisheries.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 92 - (Proposed CS) v.B.pdf |
HFSH 3/14/2023 10:00:00 AM |
HB 92 |
| HB 92 - Vessel Owner Benefit AS 23.35.145 -10Yr Payout Projection_REVISED.pdf |
HFSH 3/14/2023 10:00:00 AM |
HB 92 |
| HFSH ADF&G Hatcheries Research Presentation 03.14.23.pdf |
HFSH 3/14/2023 10:00:00 AM |
|
| HB 92 - DOL Workers Comp Fiscal Note.pdf |
HFSH 3/14/2023 10:00:00 AM |
HB 92 |