Legislature(1993 - 1994)

04/08/1993 03:00 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                          April 8, 1993                                        
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Bill Hudson, Chairman                                                   
  Rep. Joe Green, Vice Chair                                                   
  Rep. Brian Porter                                                            
  Rep. Jerry Mackie                                                            
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Rep. Bill Williams                                                           
  Rep. Joe Sitton                                                              
  Rep. Eldon Mulder                                                            
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 252:  "An Act amending the Commercial Fishing Loan Act                   
            to authorize refinancing of existing loans made                    
            under that Act."                                                   
                                                                               
            PASSED FROM COMMITTEE                                              
                                                                               
  HB 50:    "An Act authorizing the Anchorage to Kenai                         
            Peninsula and the Healy to Fairbanks power                         
            transmission interties and approving the design                    
            and construction costs of the interties; and                       
            providing for an effective date."                                  
                                                                               
            HEARD AND HELD                                                     
                                                                               
  HB 51:    "An Act making a special appropriation for design                  
            and construction of power transmission interties                   
            between Anchorage and the Kenai Peninsula and                      
            between Healy and Fairbanks; and providing for an                  
            effective date."                                                   
                                                                               
            HEARD AND HELD                                                     
                                                                               
  HB 220:   "An Act relating to the economic development grant                 
            program; and providing for an effective date."                     
                                                                               
            POSTPONED                                                          
                                                                               
  (* First public hearing.)                                                    
                                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  REP. CARL MOSES                                                              
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  465-4451                                                                     
  Position Statement:  Prime Sponsor of HB 252                                 
                                                                               
  MARTIN RICHARDS, Director                                                    
  Division of Investments                                                      
  Department of Commerce and Economic Development                              
  P.O. Box 34159                                                               
  Juneau, Alaska 99803-4159                                                    
  465-2510                                                                     
  Position Statement:  Presented Departments position and                      
                       and answered questions on HB 252                        
                                                                               
  BRUCE SCHACTLER                                                              
  Area K Seiners Association                                                   
  P.O. Box 2399                                                                
  Kodiak, Alaska  99615                                                        
  486-4686                                                                     
  Position Statement:  Supported HB 252                                        
                                                                               
  JERRY MCCUNE                                                                 
  United Fishermen of Alaska                                                   
  211 Fourth Street, Suite 112                                                 
  Juneau, Alaska  99801                                                        
  586-2820                                                                     
  Position Statement:  Supported HB 252                                        
                                                                               
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 252                                                                
  SHORT TITLE: REFINANCING COMMERCIAL FISHING LOANS                            
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MOSES,Davidson,Olberg                          
                                                                               
  TITLE: "An Act amending the Commercial Fishing Loan Act to                   
  authorize refinancing of existing loans made under that                      
  Act."                                                                        
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/24/93       761    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/24/93       761    (H)   LABOR & COMMERCE, RESOURCES,                     
                              FINANCE                                          
  03/26/93       808    (H)   COSPONSOR(S): DAVIDSON, OLBERG                   
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 252                                                                
  SHORT TITLE: REFINANCING COMMERCIAL FISHING LOANS                            
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MOSES,Davidson,Olberg                          
                                                                               
  TITLE: "An Act amending the Commercial Fishing Loan Act to                   
  authorize refinancing of existing loans made under that                      
  Act."                                                                        
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/24/93       761    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/24/93       761    (H)   LABOR & COMMERCE, RESOURCES,                     
                              FINANCE                                          
  03/26/93       808    (H)   COSPONSOR(S): DAVIDSON, OLBERG                   
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB  50                                                                
  SHORT TITLE: AUTHORIZING POWER TRANSMISSION INTERTIES                        
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) NAVARRE,Carney,Brice,Sitton,                   
  Menard,Davies                                                                
                                                                               
  TITLE: "An Act authorizing the Anchorage to Kenai Peninsula                  
  and the Healy to Fairbanks power transmission interties and                  
  approving the design and construction costs of the                           
  interties; and providing for an effective date."                             
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/14/93        58    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/93        59    (H)   LABOR & COMMERCE, FINANCE                        
  02/11/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/11/93              (H)   MINUTE(L&C)                                      
  02/15/93       350    (H)   COSPONSOR(S): GREEN                              
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB  51                                                                
  SHORT TITLE: APPROP: POWER TRANSMISSION INTERTIES                            
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) NAVARRE,Carney,Brice,Sitton,                   
  Menard,Davies                                                                
                                                                               
  TITLE: "An Act making a special appropriation for design and                 
  construction of power transmission interties between                         
  Anchorage and the Kenai Peninsula and between Healy and                      
  Fairbanks; and providing for an effective date."                             
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/14/93        59    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/93        59    (H)   LABOR & COMMERCE, FINANCE                        
  02/11/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/11/93              (H)   MINUTE(L&C)                                      
  02/15/93       351    (H)   COSPONSOR(S):  GREEN                             
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 220                                                                
  SHORT TITLE: ECONOMIC DEVELOPMENT GRANT FUND                                 
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MOSES                                          
                                                                               
  TITLE: "An Act relating to the economic development grant                    
  program; and providing for an effective date."                               
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/12/93       619    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/12/93       619    (H)   CRA, LABOR & COMMERCE, FINANCE                   
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/25/93              (H)   MINUTE(CRA)                                      
  03/26/93       789    (H)   CRA RPT  CS(CRA) 6DP  1NR                        
  03/26/93       790    (H)   DP: SANDERS, BUNDE, WILLIS,                      
                              WILLIAMS                                         
  03/26/93       790    (H)   DP: TOOHEY, OLBERG                               
  03/26/93       790    (H)   NR: DAVIES                                       
  03/26/93       790    (H)   -ZERO FISCAL NOTE (DCED) 3/26/93                 
  03/26/93       790    (H)   REFERRED TO LABOR & COMMERCE                     
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-36, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CHAIRMAN HUDSON convened the meeting at 3:14 p.m., April 8,                  
  1993.                                                                        
  HB 252 REFINANCING COMMERCIAL FISHING LOANS                                  
                                                                               
  Number 049                                                                   
                                                                               
  REP. CARL MOSES, PRIME SPONSOR of HB 252, read the following                 
  sponsor statement:                                                           
                                                                               
  "I have introduced HB 252 to give the Department of Commerce                 
  the authority to refinance existing commercial fishing                       
  loans.  Most of the 1,200 commercial fisherman who now have                  
  state loans are paying 10.5% in interest rates.  Regulations                 
  provide for new fixed rate loans at 2% above the bank prime                  
  rate.  Since the current bank prime rate is 6%, current                      
  commercial fishing loans are now at 8% rates.  However, the                  
  Department of Commerce has no mechanism to allow for current                 
  loans to be refinanced to take advantage of the lower                        
  interest rates that are currently available.                                 
                                                                               
  "Commercial fishermen have been faced these past few years                   
  with low prices and unpredictable fish returns.  Following                   
  the disastrous 1991 salmon season, the Department of                         
  Commerce approved loan extensions for nearly half of the                     
  existing loans.  More than 3000 fishermen are reportedly in                  
  arrears this year to the Internal Revenue Service for back                   
  taxes.  The commercial fishing industry is obviously in bad                  
  shape.  Allowing fishermen to refinance their loans and                      
  reduce their monthly payments is one obvious way the                         
  legislature can help the industry out.  Although there is a                  
  cost for such a refinancing program, there is sufficient                     
  cash flow in the revolving loan fund to accommodate it.                      
  Additionally, fishermen would have an easier time making                     
  their payments if their loans were at lower interest rates."                 
                                                                               
  Number 100                                                                   
                                                                               
  MARTIN RICHARDS, DIRECTOR, DIVISION OF INVESTMENTS,                          
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified                   
  in support of HB 252.  Mr. Richard stated that current                       
  statutes do not allow for refinancing and went on to                         
  describe the mechanics of the loan program.  Mr. Richards                    
  pointed out that HB 252 would mean approximately $1.6                        
  million less each year in interest payments coming into the                  
  fund.                                                                        
                                                                               
  Number 286                                                                   
                                                                               
  BRUCE SCHACTLER, representing AREA K SEINERS ASSOCIATION,                    
  testified from Kodiak in support of HB 252.  Mr. Schactler                   
  stated that many fishermen borrowed money based on the                       
  steady markets of the 80's, and so much has changed since,                   
  that HB 252 would be paramount to fishermen's economic                       
  survival.                                                                    
                                                                               
  MR. SCHACTLER pointed out that the fund may gain less money                  
  in interest if HB 252 passes.  But without the ability to                    
  refinance, many fishermen may have to default, which would                   
  be very expensive to the state.                                              
                                                                               
  Number 360                                                                   
                                                                               
  JERRY MCCUNE, representing UNITED FISHERMEN OF ALASKA,                       
  testified in support of HB 252.  Mr. McCune echoed the above                 
  testimony with regards to the great need for this                            
  legislation.                                                                 
                                                                               
  REP. MACKIE moved for passage of HB 252 with individual                      
  recommendations and a fiscal note.                                           
  HB  50 AUTHORIZING POWER TRANSMISSION INTERTIES                              
  HB  51 APPROP: POWER TRANSMISSION INTERTIES                                  
                                                                               
  CHAIRMAN HUDSON announced his intention to use HB 50 and                     
  HB 51 as the vehicle for a new committee substitute (CS) on                  
  interties.                                                                   
                                                                               
  Number 397                                                                   
                                                                               
  CHAIRMAN HUDSON asked the committee to move the CS's to come                 
  before the committee and then hold them over until Tuesday,                  
  April 13, for a hearing.                                                     
                                                                               
  Number 456                                                                   
                                                                               
  REP. MACKIE stated that he had a problem with spending                       
  millions for upgrading interties and at the same time this                   
  organization has cut the Power Cost Equalization for the                     
  rural areas.                                                                 
                                                                               
  CHAIRMAN HUDSON answered that Rep. Mackie's point was                        
  understood and that was something he hoped would be                          
  addressed when these bills were brought up.                                  
                                                                               
  Number 480                                                                   
                                                                               
  REP. PORTER moved to adopt CSHB 50(L&C) and CSHB 51(L&C) in                  
  lieu of the original bill.  No objections were heard, so                     
  ordered.                                                                     
                                                                               
  CHAIRMAN HUDSON adjourned the meeting at 3:50 p.m.                           

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