SB 93-FISHERMEN'S FUND: VESSEL OWNER CLAIMS  4:46:37 PM CHAIR SUMNER announced that the next order of business would be the CS FOR SENATE BILL NO. 93(L&C)am, "An Act relating to claims for injury, disability, or heart attack payable from the fishermen's fund; relating to claims against protection and indemnity insurance policies of vessel owners; and providing for an effective date." 4:47:01 PM SENATOR JESSE BJORKMAN, Alaska State Legislature, introduced CSSB 93(L&C)am, on behalf of the sponsor, Senate Labor and Commerce Standing Committee, of which Senator Bjorkman served as chair. He stated that the Fishermen's Fund aids the out-of- pocket medical costs for fishermen suffering from an injury or illness affiliated with their work. He stated that the proposed bill would increase the amount which can be paid out to fishermen or boat owners. He said that the Senate version of the bill includes "step-downs" which would reduce payments if the Fishermen's Fund began to run low on funds. 4:48:53 PM REPRESENTATIVE SADDLER asked whether the fund is designed to provide payouts to fishermen, boat owners, or both. SENATOR BJORKMAN answered both. 4:49:28 PM REPRESENTATIVE PRAX asked whether the changes made in the Senate were requested by the [Fisherman's Fund Appeal and Advisory Council]. SENATOR BJORKMAN answered that the amendments were proposed by Senator Matt Claman. 4:50:32 PM SENATOR MATT CLAMAN, Alaska State Legislature, answered questions on the amendments adopted to CSSB 93(L&C)am. He stated that the amendments were the result of discussions with the chair of the [Fisherman's Fund Appeal and Advisory Council] and are meant to add further protections for the fund in the unlikely event the increased payments create issues for the fund's financial health. 4:52:10 PM REPRESENTATIVE SADDLER asked whether the proposed bill was meant to account for medical inflation or the lack of coverage. SENATOR BJORKMAN answered that insurance deductibles have increased, and the fund is healthy, so it makes sense to increase payouts to ease the burden on fishermen. REPRESENTATIVE SADDLER asked whether coverage for COVID-19 played a part in creating the bill. SENATOR CLAMAN answered that, although the worst of the COVID-19 pandemic has passed, if a similar event happened in the future the fund would be able to help with some costs related to this. 4:56:38 PM REPRESENTATIVE PRAX asked whether boat owners are obligated to cover illnesses regardless of whether the illnesses were contracted on the boat. SENATOR CLAMAN answered yes. He said that this obligation dates to the 1800s, and nothing the legislature can do would change this because of the broad nature of the obligation. 4:57:40 PM REPRESENTATIVE SADDLER asked whether the [Fisherman's Fund Appeal and Advisory Council] has a position on whether COVID-19 coverage would be harmful to the fund. 4:58:47 PM CHAIR SUMNER opened public testimony on SB 93. 4:59:06 PM CLAY BEZENEK, Member, Fisherman's Fund Appeal and Advisory Council, provided public testimony on SB 93. He stated that the impetus of the bill was deductibles for boat owners. He said that the council has no consensus on COVID-19 coverage because of the infrequency of the council's meetings. He requested time to follow up after the council's discussion of this issue. 5:01:52 PM CHAIR SUMNER, after ascertaining there was no one else who wished to testify, closed public testimony. 5:02:11 PM REPRESENTATIVE SADDLER asked whether the council would be able to come to a consensus in the next seven months. MR. BEZENEK answered that the council would be open to considering this after having discussions with the insurance companies. In response to a follow-up question, he said the council meeting would have time to give due consideration to the provision. 5:03:45 PM REPRESENTATIVE PRAX asked whether the issues covered by the House's version of the bill are urgent enough for the legislature to act now, leaving the Senate amendments for next year. MR. BEZENEK responded that the council supports the House version of the proposed legislation; however, the council has "angst" with the SB 93. In response to a follow up question, he expressed appreciation for the prospect of passing the House version of the bill. 5:05:24 PM REPRESENTATIVE RUFFRIDGE moved to report SB 93 out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE PRAX objected. 5:05:44 PM A roll call vote was taken. Representatives Wright, Carrick, Fields, Ruffridge, Saddler and Sumner voted in favor of passing SB 93 out of committee. Representative Prax voted against it. Therefore, CSSB 93(L&C)am was reported out of the House Labor and Commerce Standing Committee by a vote of 6-1.