CSHB 289(FSH)-EMPLOYMENT TAX EXEMPTION: SPILL RESPONSE  2:49:18 PM CHAIR ELLIS announced CSHB 289(FSH) to be up for consideration. 2:50:07 PM REPRESENTATIVE PAUL SEATON, sponsor of HB 289, explained this measure deals with oil spill response. He explained that under state and federal law, a contingency plan must exist for an oil spill response. About 359 fishing vessels are under contract right now for the contingency plan. These vessels undergo short periods of training each year and HB 289 exempts them from state unemployment insurance for these short periods of time. It only applies if there is less than seven continuous days of training. So if there is a major oil spill and people are employed for any length of time, they are automatically required to be under the unemployment insurance provisions. He said this bill came about because many fishermen after discovering that they would have to file quarterly reports and all the paperwork that would entail. This would mean the state's contingency plans wouldn't be in effect and oil might not be able to transit Alaska. He noted that this measure only affects commercial fishermen who are paid a percentage of the catch and that his operation is a tender, so this does not affect him. It doesn't cover tug boats or tenders or anyone that is an employee. SENATOR BUNDE asked if fishermen who are training for oil response are covered by workers' compensation. REPRESENTATIVE SEATON answered no; fishermen fall outside of that regime and workers' compensation doesn't cover anyone on a fishing vessel. 2:52:24 PM JAMES HERBERT, Fishing Vessel owner, Seward, supported HB 289. He said the bottom line is that the amount of revenue the state thinks it's going to get from collecting unemployment insurance from the three or so days of training will be minimal compared to the aggravation of filing these quarterly reports throughout the whole year. That would prompt an exodus of some of the vessels that have participated in the program in the past. With them will go their expertise and knowledge; more importantly if another catastrophic oil spill ever happened, there would be a delay in responding. It's important to keep people trained and not burden them with regulations. 2:54:54 PM TRACEY MAYHEW, Port Representative, Seafarers International Union, supported HB 289. She said her union represents merchant mariners working on board large ocean going vessels in Alaskan waters. They support this bill because the contingency plan for oil spill response relies upon the participation of fishermen. If they don't participate, it could put contingency plans in a non-compliant position and threaten the livelihood of her members working on board those vessels. She emphasized that local fishermen drill with tanker crews and are needed to help maintain a good response team. 2:56:19 PM JERRY MCCUNE, United Fishermen of Alaska (UFA), Cordova Fishermen United, briefly stated that both organizations supported HB 289. He noted that he is president of Cordova Fishermen United where the contingency program is housed. 2:56:51 PM CHAIR ELLIS closed the public hearing on HB 289 and held it for further consideration. There being no further business to come before the committee, he adjourned the meeting at 2:57:18 PM.