Legislature(2003 - 2004)
02/07/2003 08:32 AM House FSH
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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 7, 2003
8:32 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Peggy Wilson, Vice Chair
Representative Cheryll Heinze
Representative Ralph Samuels
Representative David Guttenberg
MEMBERS ABSENT
Representative Ethan Berkowitz
Representative Pete Kott
COMMITTEE CALENDAR
OVERVIEWS: DIVISION OF INVESTMENTS FISHERIES RELATED STATE LOAN
PROGRAMS; ALASKA FISHERMEN'S FUND, FEE COLLECTION FOR MEDICAL
SERVICES
TAPES
03-4, SIDE(S) A & B
CHAIR PAUL SEATON called the meeting of the House Special
Committee on Fisheries to order at 8:32 a.m. Present at the
call to order were Representatives Seaton, Wilson, Heinze,
Samuels, and Guttenberg.
SUMMARY OF INFORMATION
GREG WINEGAR, Director, Division of Investments, Department of
Community & Economic Development, explained the structure and
process of the publicly managed revolving loan funds dedicated
to financing boats, permits, gear, hatcheries, and general
maintenance associated with commercial fishing in Alaska. He
said that the Division of Investments administers and services
15 loan programs primarily designed to promote economic
development through direct state lending in industries that are
not adequately serviced by the private sector. His presentation
focused on the Division of Investments' two programs geared
toward the fishing industry: the Commercial Fishing Revolving
Loan Fund, and the Fisheries Enhancement Revolving Loan Fund;
however, he also provided information on the Rural Development
Initiative Fund and the Small Business Economic Development
Revolving Loan Fund. He stated that the goal of the Commercial
Fishing Revolving Loan Fund is to provide long-term, low
interest loans to promote the development of predominantly
resident fisheries, and to assist with continued maintenance of
commercial fishing vessels and gear, for the purpose of
improving the quality of Alaska seafood products. The goal of
the Fisheries Enhancement Revolving Loan Fund is to make loans
available for planning, construction, and operation of fish
hatchery facilities. Mr. Winegar noted that the funds offer a
lot of leeway in extending and forgiving loans on a case-by-case
basis. He said the funds are intended to help those who are
most in need, who have few other options, and who are most
dependent upon the fishery. He also mentioned the Nels Anderson
Cooperative Program, a loan guarantee program involved with
maintaining permits in specified areas.
MR. WINEGAR explained the funding history of the Fisheries
Enhancement Revolving Loan Fund, stating that a total of $60
million has been paid into the fund since its inception, with
the last appropriation being in fiscal year 1985. He said $74
million has been transferred out of the fund, and the fund is a
totally self-sufficient program. Mr. Winegar projected next
year's loan demand to be approximately $12 million.
ED FISHER, Deputy Commissioner, Office of the Commissioner,
Department of Labor & Workforce Development, introduced his
staff: Paul Grossi, Director, Central Office, Division of
Workers' Compensation, and Renee Cox, Program Administrator,
Fishermen's Fund, Department of Labor & Workforce Development.
PAUL GROSSI, Director, Central Office, Division of Workers'
Compensation, presented an overview of the Fishermen's Fund. He
explained that the fund was established in 1951, and has since
provided for the treatment and care of Alaska licensed
commercial fishermen who have been injured while fishing in
Alaska. He said the program is overseen by the commissioner of
the Department of Labor & Workforce Development, with the
assistance of the Fishermen's Fund Advisory & Appeals Council, a
five-member council appointed by the governor and usually
composed of fishermen. He stated that the Fishermen's Fund is
designed to dovetail with other insurance programs and that
generally the maximum allowance from the fund is $2,500, which
is often equal to the deductible for relevant insurance
programs. This design helps to ensure that all medical costs
are paid for; however, some insurance companies' deductibles
have been rising.
RENEE COX, Program Administrator, Fishermen's Fund, Department
of Labor & Workforce Development, responded to questions from
the committee and explained that in fiscal year 2002, the
Fishermen's Fund received $1,079,755.90 in receipts from
commercial fishing permits and licenses. She said that during
that year they had 808 claims, and paid $584,408.00 to
commercial fishermen. She said that administrative expenses for
the fund totaled $223,565.00, and total expenses were
$807,973.00. Ms. Cox said the largest number of claims were
related to strained backs and cut fingers, with the majority of
claims being submitted from Southeast Alaska. She stated that
there is interest in increasing the fund's allowable benefit
amount paid to fishermen.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 9:32
a.m.
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Third
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
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