02/24/2012 09:00 AM Senate FINANCE

SENATE BILL NO. 68                                                                                                            
                                                                                                                                
     "An  Act relating  to the  examinations, board,  loans,                                                                    
     records,   and  lobbying   contracts   of  the   Alaska                                                                    
     Commercial Fishing and  Agriculture Bank; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
9:19:12 AM                                                                                                                    
                                                                                                                                
RYNNIEVA  MOSS, STAFF,  SENATOR  JOHN  COGHILL, stated  that                                                                    
Senator Coghill sent his apologies  for his absence and that                                                                    
the Senator was attending  meetings for the Select Committee                                                                    
on Legislative Ethics, of which he was a member.                                                                                
                                                                                                                                
JORDAN  SHILLING, INTERN,  SENATOR JOHN  COGHILL, introduced                                                                    
SB  68  and stated  that  when  the Commercial  Fishing  and                                                                    
Agriculture Bank  (CFAB) was established  in 1980,  they had                                                                    
received seed money from the state;  the money was a loan to                                                                    
be paid back to the general  fund with interest. As a result                                                                    
of  the loan,  certain restrictions  such as  specific board                                                                    
member requirements, limits on  loans, limits on eligibility                                                                    
for loans,  and the ability  to lobby were placed  on banks.                                                                    
Although  CFAB  had  repaid the  seed  money,  the  statutes                                                                    
restricting  their  operations  remained in  effect;  SB  68                                                                    
lifted those  restrictions and would  allow CFAB  to compete                                                                    
in the  loan market  in the same  capacity as  other private                                                                    
lending institutions.                                                                                                           
                                                                                                                                
9:20:46 AM                                                                                                                    
                                                                                                                                
Co-Chair   Stedman  discussed   a  fiscal   note  from   the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
reflecting  $5,800  in  travel  costs for  the  Banking  and                                                                    
Securities Division  to conduct  an examination  every three                                                                    
years; the  note also  showed an  increase in  revenue every                                                                    
three years in the amount of $22,000.                                                                                           
                                                                                                                                
Senator  Olson  asked  if  other  lending  institutions  had                                                                    
voiced a  position on the  bill. Ms. Moss replied  that CFAB                                                                    
had been  in correspondence  with all  the major  lenders in                                                                    
the  state and  that there  had been  no objections  raised.                                                                    
Senator  Olson queried  if  CFAB had  been  in contact  with                                                                    
other   lending  institutions   besides   banks.  Ms.   Moss                                                                    
responded in the  affirmative and furthered that  it was her                                                                    
understanding that  other types of lending  institutions had                                                                    
been contacted.                                                                                                                 
                                                                                                                                
9:22:00 AM                                                                                                                    
                                                                                                                                
Senator Ellis  MOVED to report  SB 68 out of  committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
9:22:16 AM                                                                                                                    
                                                                                                                                
SB  68  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and  with a new  fiscal impact note  from the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
Co-Chair Stedman  discussed the  committee's agenda  for the                                                                    
next  several  weeks.  He  stated   that  they  would  begin                                                                    
reviewing  some of  the major  capital  projects and  agency                                                                    
overviews  the following  week, rather  than the  week after                                                                    
the  annual National  Energy Council  meetings. He  observed                                                                    
that the  schedule would give  them a "clearer  calendar" to                                                                    
deal  with  the oil  legislation.  He  stated that  the  oil                                                                    
legislation would  mostly likely  be ready after  the Energy                                                                    
Council meetings;  if it  was not ready  by this  point, the                                                                    
committee  would  continue  with   the  capital  budget  and                                                                    
integrate the  oil legislation later  on in the  process. He                                                                    
noted  that  the  preliminary  overview  hearings  with  PFC                                                                    
Energy had been  "tentatively" scheduled for the  end of the                                                                    
following  week and  that the  hearings would  not focus  on                                                                    
legislation;  they were  concept  specific presentations  on                                                                    
how Alaska  fit in  globally to  petroleum market  place and                                                                    
how  Alaska's  basin fit  in  with  British Petroleum  (BP),                                                                    
ConocoPhillips,  and   ExxonMobil.  He  observed   that  the                                                                    
integration of  the oil discussion  with the  capital budget                                                                    
would probably require the committee to meet twice a day.