HB 116-COMMERCIAL FISHING INSURANCE CO-OP  2:06:35 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of HOUSE BILL NO. 116 "An Act exempting from insurance regulation cooperative agreements entered into by two or more persons engaged in commercial fishing for the purpose of paying claims or losses." 2:07:04 PM MATT GRUENING, Staff, Representative Louise Stutes, Alaska State Legislature, Juneau, Alaska, provided a brief summary of HB 116. He stated that, following recommendations from the Joint Legislative Task Force on Alaska's seafood industry, HB 116 would let commercial fishermen form cooperative insurance agreements for vessel liability or damage without regulation under AS 21. Currently, three similar pools operate through a Washington-based organization. Together the three insurance pools insure about 840 Alaska vessels. With rising premiums and limited coverage options, HB 116 aims to lower costs and improve insurance access for Alaska's aging fishing fleet at no cost to the state. 2:08:37 PM CHAIR BJORKMAN opened public testimony on HB 116; finding none, he closed public testimony. 2:08:58 PM SENATOR DUNBAR asked for an explanation of the practical differences for these cooperatives if HB 116 passes compared to the current system. 2:09:31 PM MR. GRUENING replied that these cooperatives would no longer be regulated under AS 21, meaning no minimum capital requirements, no coverage by the Alaska Guarantee Policy, and no departmental audits. The cooperatives would operate as self-governing, member-owned cooperatives. He said the main change is that HB 116 would allow Alaska based organizations to legally form their own insurance pools instead of relying on out-of-state ones. 2:11:30 PM SENATOR DUNBAR asked if HB 116 legitimizes existing practices or is expected to create new insurance pools and are there any potential negative effects from the division giving up regulatory authority in this area. 2:11:55 PM LORI WING-HEIER, Director, Division of Insurance, Department of Commerce, Community and Economic Development (DCCED), Juneau, Alaska, answered a question on HB 116. She answered that the governing board is expected to self-regulate, following the successful model of the Prince William Sound purse seiners. Each cooperative should determine its coverage limits and rates to remain solvent. Most vessels aren't covered by Alaska's Guarantee Association since they're insured through London. She said complaints would likely be handled internally by the cooperative's executive director and board, with the expectation of similar success to the Seattle-area pools. 2:13:15 PM CHAIR BJORKMAN solicited the will of the committee. 2:13:17 PM SENATOR MERRICK moved to report HB 116, work order 34-LS0616\I, from committee with individual recommendations and attached fiscal note(s). 2:13:33 PM CHAIR BJORKMAN found no objection and HB 116 was reported from the Senate Labor and Commerce Standing Committee.