Legislation to help commercial fishermen form their own insurance cooperative in Alaska, lowering costs to keep small boat operators solvent, cleared the Alaska Legislature on Friday, May 16, and headed to Gov. Mike Dunleavy for his signature.

The Senate vote was 28-0 in favor of passage. Dunleavy now has the option to approve, veto, or take no action on House Bill 116, in which case it would become law.

Alaska Sen. Jesse Bjorkkman, R-Nikiski, urged senators to approve the bill, which cleared the House last week. The bill is sponsored by the House Special Committee on Fisheries at the request of the Joint Legislative Task Force evaluating Alaska's seafood industry.

Matt Gruening, an aide to Rep. Louise Stutes, R-Kodiak, chair of the Special Committee on Fisheries, told the House that with operating costs at an all-time high and fishing markets at an all-time low that HB 116 would help provide lower cost and easier access in Alaska for the state's commercial fishermen.

"Rising premiums and availability of insurance are a barrier to operating in Alaska's insurance industry. Underwriters have been raising premiums on individual vessels and are increasingly selective in which vessels they insure. Insurance pooling can attract a more attractive lower risk alternative for insuring individual fishing vessels as well as lower costs for our fishermen," he said.

The bill would let the insurance cooperatives pay claims from liability or damage to a vessel without having to be regulated under the state's insurance code.