2004-04-13                     House Journal                      Page 3296
HB 554                                                                                            
HOUSE BILL NO. 554 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act authorizing the making of certain commercial fishing                                   
     loans to eligible community quota entities for the purchase of                                 
     certain fishing quota shares; and providing for an effective date."                            
                                                                                                    
was read the first time and referred to the Community & Regional                                    
Affairs and Finance Committees.                                                                     
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Community & Economic Development                                                 
2.  Zero, Dept. of Fish & Game                                                                      
                                                                                                    
The Governor's transmittal letter dated April 9, 2004, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to amend the lending authority of                            
the Department of Community and Economic Development                                                
(department) under the Commercial Fishing Loan Act; to authorize                                    

2004-04-13                     House Journal                      Page 3297
loans to federally designated community quota entities authorized by                                
federal regulation to purchase and hold certain fishing quota shares;                               
and to lease the resultant individual fishing quota shares to community                             
residents.                                                                                          
                                                                                                    
The federal government is currently proposing federal regulations that,                             
if adopted, would amend the federal individual fishing quota program.                               
The definition of an eligible quota shares holder would be revised to                               
allow specific communities in the Gulf of Alaska to purchase quota                                  
shares for halibut and sablefish fisheries.  The community quota entity                             
may then hold the shares for lease to their community residents.                                    
Quota shares, and loans for their purchase under the Commercial                                     
Fishing Loan Act, are presently limited to individuals.                                             
                                                                                                    
The purpose of the amendment is to improve the economic viability of                                
these communities through local ownership of fishing privileges.                                    
Since the initial allocation of quota shares all but two of the 42 eligible                         
communities have experienced a significant decline in the number of                                 
quota shares held by residents.  This amendment will provide a                                      
financing mechanism that can be used by these communities to help                                   
reverse this trend.                                                                                 
                                                                                                    
The bill's effective date provision for the loan statute changes would                              
ensure that if the proposed federal regulations do not take effect, the                             
bill's changes expanding the department's lending authority also would                              
not take effect.                                                                                    
                                                                                                    
The community quota entity program provides a unique opportunity to                                 
improve economic conditions in a number of Alaska's coastal                                         
communities.  Local ownership of fishing privileges is vital to the                                 
financial health of these communities.                                                              
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"