Legislation for Fisheries Insurance and Vessel Registration is Now Legally Signed into Effect
Alaska's commercial fishing industry is facing historically challenging times, but recent legislative changes aim to provide some relief. Two bills, House Bill 116 and House Bill 31, have become law, designed to reduce operating costs and bureaucratic barriers for commercial fishermen in the state.
House Bill 116 was introduced at the request of the House Fisheries Committee and aims to increase the availability of fishing vessel insurance. Underwriters have been raising premiums on individual vessels and have become increasingly selective of which vessels they insure. The new law exempts Alaska-based commercial fishing insurance cooperatives from state regulation, allowing them to pool the needs of the insured, similar to other industries. Representative Louise Stutes of Kodiak is thrilled to see House Bill 116 become law, as it provides a more attractive, lower-risk alternative for underwriters and lower costs for fishermen.
House Bill 31, sponsored by Representative Stutes, addresses an oversight in Senate Bill 92 from 2018. It repeals the requirement for commercial fishing vessels to register with the Alaska Division of Motor Vehicles (DMV) every three years. This reform is particularly beneficial for Alaska communities that lack a DMV. Stutes argues that fishermen should not be required to register at the DMV, as it incurs additional expense and frustration for providing information the state already has through the Commercial Fisheries Entry Commission. The US Coast Guard already documents the vessels, making the DMV registration redundant.
The recommendations of the Joint Legislative Task Force Evaluating Alaska's Seafood Industry, chaired by Senator Gary Stevens, found that rising costs and limited availability of insurance were barriers to operation for Alaska's commercial fishing fleet. The task force's report was released in January, during the start of the legislative session. The recommendations led to the passage of House Bill 116 but are not directly connected to House Bill 31.
Senator Stevens views the passage of House Bill 116 as a small step in righting the industry, while the passage of House Bill 31 is not explicitly mentioned as such, as it is a separate piece of legislation. Stutes considers the reform a win for Alaska's fishing fleet and an example of bipartisan legislation that cuts red tape while maintaining robust data on vessel ownership.
In conclusion, these new laws mark a significant step forward for Alaska's commercial fishing industry, which is facing challenging times. The reforms aim to reduce costs and bureaucratic barriers while increasing the availability of fishing vessel insurance, providing a much-needed boost for the industry.
