04/08/2008 04:00 PM Senate FINANCE

CS FOR HOUSE BILL NO. 289(FSH)                                                                                                
                                                                                                                                
     "An  Act exempting  employers  from paying  unemployment                                                                   
     tax for  temporary services  provided by fishing  vessel                                                                   
     crewmembers and related to  emergency oil spill training                                                                   
     and response activities;  and providing for an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
4:28:43 PM                                                                                                                    
                                                                                                                                
KATIE SHOWS, STAFF, REPRESENTATIVE PAUL SEATON presented an                                                                     
overview of the bill by referring to the Sponsor Statement:                                                                     
                                                                                                                                
     HB  289  encourages  participation  in the  state's  oil                                                                   
     spill  response  program  by  exempting  fishing  vessel                                                                   
     owners  and  crew who  participate  from  having to  pay                                                                   
     unemployment taxes  while they are performing  oil spill                                                                   
     response                                         duties.                                                                   
                                                                                                                                
     Vessel  owners  and  crew   members  undergo  oil  spill                                                                   
     response  training to  be prepared  to respond  to state                                                                   
     disasters  as a  service  to the  state  on a  voluntary                                                                   
     basis. Training for the program  and responding to small                                                                   
     spills  only  takes  a  few   days  at  a  time,  filing                                                                   
     paperwork  and  paying  unemployment  taxes for  such  a                                                                   
     short  period  of service  is  unreasonably  burdensome.                                                                   
     Because   commercial  fisherman   are  not  covered   by                                                                   
     unemployment  insurance when  they engage in  commercial                                                                   
     fishing, most  will not be in a position  to have enough                                                                   
     service  time  accrued  to  collect  unemployment  after                                                                   
     having only  worked a handful  of qualified days  in the                                                                   
     oil spill response program.                                                                                                
                                                                                                                                
     In the unfortunate  event of a large spill  (such as the                                                                   
     Exxon   Valdez),  if   vessels  spend   seven  or   more                                                                   
     continuous  days  responding  to  an  oil  spill  vessel                                                                   
     owners   would  be  required   to  participate   in  the                                                                   
     unemployment  system and  their crew  would be  covered.                                                                   
                                                                                                                                
     In summary,  HB 289 encourages fisherman  to continue to                                                                   
     participate  in the state's  oil spill response  program                                                                   
     by  removing burdensome  unemployment requirements.  The                                                                   
     state needs more vessels  willing and able to respond to                                                                   
     such  disasters  and must  work  to remove  barriers  to                                                                   
     their participation.                                                                                                       
                                                                                                                                
Ms. Shows remarked that commercial  fishermen are exempt from                                                                   
paying and  filing unemployment taxes  as they are paid  on a                                                                   
percentage of  catch bases. She  explained that  the response                                                                   
training program is  only for a few days a  year therefore it                                                                   
would be unreasonable  to expect fishermen to  file the paper                                                                   
work for  unemployment  benefits they  probably would  not be                                                                   
eligible   to  receive.   Many   commercial  fishermen   have                                                                   
threatened to quit  the program when they were  made aware of                                                                   
the   requirement  to   file   unemployment  insurance.   She                                                                   
referenced letters of support  for the bill (Copies on file).                                                                   
                                                                                                                                
Senator  Thomas  expressed his  understanding  regarding  the                                                                   
situation   but  was   curious   about   the  definition   of                                                                   
"temporary" being less than seven continuous days.                                                                              
                                                                                                                                
Ms.  Shows   responded  that   "temporary"  would   be  seven                                                                   
continuous days regardless of  when it takes place within the                                                                   
year. This number was arrived  at after consultation with the                                                                   
Department of Commerce and boat captains.                                                                                       
                                                                                                                                
4:32:37 PM                                                                                                                    
                                                                                                                                
Senator Olson inquired how many  oil spills there had been in                                                                   
the last five years.                                                                                                            
                                                                                                                                
Ms. Shows responded she did not have those numbers.                                                                             
                                                                                                                                
Senator  Olson  questioned  how   many  fishermen  have  quit                                                                   
participating in the oil spill  response program because this                                                                   
bill was not in place.                                                                                                          
                                                                                                                                
Ms. Shows  responded that  no one has  quit at this  time but                                                                   
letters  have been  received  from fishermen  threatening  to                                                                   
quit.                                                                                                                           
                                                                                                                                
4:33:32 PM                                                                                                                    
                                                                                                                                
Senator  Olson asked  if  there had  been  any opposition  to                                                                   
bill. Ms. Shows responded there was no opposition.                                                                              
                                                                                                                                
Senator  Olson  MOVED  to  REPORT   CSHB  289  (FSH)  out  of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CSHB  289  (FSH)  was  REPORTED  out  of  Committee  with  no                                                                   
recommendations  and  an  accompanying  previously  published                                                                   
fiscal  note  from  the Department  of  Labor  and  Workforce                                                                   
Development.                                                                                                                    
                                                                                                                                
4:34:52 PM