SB 163- FISHERMEN'S FUND  9:30:17 AM CHAIR DAHLSTROM announced that the next order of business would be SENATE BILL NO. 163, "An Act increasing the allowances for injury, disability, or heart attack payable from the fisherman's fund; and providing for an effective date." 9:30:30 AM REPRESENTATIVE OLSON moved to adopt HCS CSSB 163, Version 26- LS0781\R, Bailey, 4/7/10, as the working document. There being no objection, Version R was before the committee. 9:30:47 AM SENATOR JOE PASKVAN, Alaska State Legislature, explained that SB 163 updates the Alaska Fishermen's Fund benefit limit to $10,000, which would result in the program providing a meaningful level of assistance. He characterized the fund as a payer of last resort for commercial fishermen and crew who sustain injuries or illness while fishing. 9:31:41 AM JAKE HAMBURG, Staff, Senator Joe Paskvan, Alaska State Legislature, speaking on behalf of the sponsor, reviewed the changes embodied in HCS CSSB 163, Version R. He explained that although under current statute the commissioner is to make decisions on claims and appeals, the practice has been for the council to make those decisions. Therefore, one of the two changes in Version R would allow the Fishermen's Fund Advisory and Appeals Council to continue the aforementioned practice. The other change embodied in Version R would allow vessel owners with indemnity insurance with a deductible of $10,000 or more to seek a 50 percent reimbursement for the deductible of an injured crewmember's claim against that insurance. He explained that 50 percent was chosen in order to provide an incentive for the vessel owner to maintain a safe vessel. 9:32:56 AM REPRESENTATIVE GARDNER inquired as to whom would pay the vessel owner for the claim. If the claim was paid by the insurance company, would it reduce the amount of the claim awarded to the injured worker, she asked. SENATOR PASKVAN explained that the fund is funded by a portion of the license fees that are collected. If the deductible is $10,000, the fund would only pay up to $5,000 to the injured crewmember. He echoed earlier testimony that the fund is the payer of last resort. REPRESENTATIVE GARDNER surmised then that the payment wouldn't impact a crew member. MR. HAMBURG related that the vessel owner is required to pay the deductible. The vessel owner would be reimbursed by the fishermen's fund in the amount of up to 50 percent of the deductible [or $5,000, whichever is less]. Therefore, the only impact would be to the fund. 9:34:41 AM CHAIR DAHLSTROM related her understanding then that the second change being discussed was strictly to the dollar amount. SENATOR PASKVAN replied yes. 9:35:06 AM REPRESENTATIVE KERTTULA requested an explanation of Section 3. She related her understanding that the legislation doesn't control what the insurance company gives to the vessel owner, but rather how much the fund pays the vessel owner. SENATOR PASKVAN answered that is correct. 9:36:32 AM REPRESENTATIVE OLSON moved to report HCS CSSB 163, Version 26- LS0781\R, Bailey, 4/7/10, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS CSSB 163(RLS) was reported from the House Rules Standing Committee. 9:36:50 AM The committee took an at-ease from 9:36 a.m. to 9:39 a.m. 9:39:45 AM