Legislature(2023 - 2024)GRUENBERG 120

03/07/2023 10:00 AM House FISHERIES

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Audio Topic
10:00:51 AM Start
10:01:23 AM HB92
10:13:58 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 19 REGISTRATION OF BOATS: EXEMPTION TELECONFERENCED
<Bill Hearing Canceled>
*+ HB 92 FISHERMEN'S FUND: VESSEL OWNER CLAIMS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 7, 2023                                                                                          
                           10:00 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sarah Vance, Chair                                                                                               
Representative Kevin McCabe                                                                                                     
Representative CJ McCormick                                                                                                     
Representative Ben Carpenter                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Louise Stutes                                                                                                    
Representative Rebecca Himschoot                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 92                                                                                                               
"An Act relating to claims against protection and indemnity                                                                     
insurance policies of vessel owners."                                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  92                                                                                                                  
SHORT TITLE: FISHERMEN'S FUND: VESSEL OWNER CLAIMS                                                                              
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
03/01/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/23       (H)       FSH, L&C                                                                                               
03/07/23       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JAKE ALMEIDA, Staff                                                                                                             
Representative Sarah Vance                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 92 on behalf of the bill                                                                    
sponsor, the House Special Committee on Fisheries, on which                                                                     
Representative Vance serves as chair.                                                                                           
                                                                                                                                
CHARLES COLLINS, Director                                                                                                       
Central Office                                                                                                                  
Division of Workers' Compensation                                                                                               
Department of Labor & Workforce Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided comment  during the hearing  on HB
92.                                                                                                                             
                                                                                                                                
VELMA THOMAS, Administrator                                                                                                     
Fishermen's Fund Advisory and Appeals Council                                                                                   
Division of Workers' Compensation                                                                                               
Department of Labor & Workforce Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided comment  during the hearing  on HB
92.                                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:00:51 AM                                                                                                                   
                                                                                                                                
CHAIR  SARAH   VANCE  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order  at  10:00  a.m.    Representatives                                                               
Himschoot, McCormick,  Stutes, Carpenter, and Vance  were present                                                               
at  the call  to order.   Representatives  McCabe and  C. Johnson                                                               
joined as the meeting was in progress.                                                                                          
                                                                                                                                
          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.                                                                                                                  
                                                                                                                                
10:13:58 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 10:14                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
HB 92 - Sponsor Statement.pdf HFSH 3/7/2023 10:00:00 AM
HB 92
HB 92 - v.A.PDF HFSH 3/7/2023 10:00:00 AM
HB 92
HB 92 - Fishermen's Fund Presentation.pdf HFSH 3/7/2023 10:00:00 AM
HB 92
HB 92 - Fishermens Fund Resoultion 22-01.pdf HFSH 3/7/2023 10:00:00 AM
HB 92
HB 92 - Fisherman's Fund Report of Vessel-Site Insurance Form.pdf HFSH 3/7/2023 10:00:00 AM
HB 92