Legislature(2011 - 2012)CAPITOL 120
04/08/2011 05:00 PM House RULES
| Audio | Topic |
|---|---|
| Start | |
| HCR12 | |
| HB121 | |
| HB146 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 121 | TELECONFERENCED | |
| + | HB 146 | TELECONFERENCED | |
| *+ | HCR 12 | TELECONFERENCED | |
HB 121-LOAN FUNDS:CHARTERS/MARICULTURE/MICROLOAN
5:26:37 PM
CHAIR JOHNSON announced that the next order of business would be
HOUSE BILL NO. 121, "An Act establishing the commercial charter
fisheries revolving loan fund, the mariculture revolving loan
fund, and the Alaska microloan revolving loan fund and relating
to those funds and loans from those funds; and providing for an
effective date." [Before the committee is CSHB 121(FIN).]
5:26:48 PM
CURTIS THAYER, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community & Economic Development
(DCCED), explained that the committee packet should include an
amendment that would cleanup CSHB 121(FIN). The amendment,
labeled 27-GH1728\X.2, Kane, 4/8/11, read:
Page 4, line 8, following "commissioner":
Insert ", which may include other collateral in
addition to a charter halibut permit"
MR. THAYER further explained that the assumption with this
revolving loan program is that the charter halibut permit would
be used as collateral. However, after the passage of CSHB
121(FIN) from the House Finance Committee some charter boat
skippers have sued DCCED regarding the permit system. This
amendment would allow the program to go forward and allows
something other than the charter permit to be used as
collateral, whether it is the boat, property, or something else
from the borrower. He noted that this would protect the state.
5:28:04 PM
REPRESENTATIVE GATTO asked if one could use his/her personal
residence as collateral.
MR. THAYER replied yes.
CHAIR JOHNSON offered that the purpose of this amendment is that
with the encumberment of the permits through litigation, [DCCED]
would potentially be offering non collateralized loans. The
desire was to specify that other forms of collateral could be
used.
5:28:26 PM
REPRESENTATIVE GRUENBERG asked if the current language and
proposed amendment require that the charter halibut permit be
part of the collateral used.
MR. THAYER replied no.
REPRESENTATIVE GRUENBERG suggested then that the language needs
to be changed because [the adoption of the proposed amendment]
would mean that the charter halibut permit must be part of the
collateral.
CHAIR JOHNSON related his understanding that the proposed
amendment means that the charter halibut permit would have to be
used as collateral.
5:30:10 PM
REPRESENTATIVE GRUENBERG offered Conceptual Amendment 1
inserting language "it may include the permit and or other
collateral".
5:30:40 PM
REPRESENTATIVE CHENAULT asked if currently the charter halibut
permit is used as collateral.
MR. THAYER replied yes, that was the intention of the loan
program.
REPRESENTATIVE CHENAULT inquired then why the language would be
added as it's duplicative. He related his understanding that
DCCED wants to add language relating "other collateral that may
be associated with that loan and not the permit".
REPRESENTATIVE GRUENBERG opined that the language on page 4,
line 8, is generic and can include the permit or another else.
He further opined that the proposed amendment would muddy the
water.
MR. THAYER related that he had worked out the language with the
co-chairs of the House Finance Committee who expressed the need
to tighten the language.
REPRESENTATIVE GRUENBERG related his understanding that DCCED
wants to be able to use the permit and/or anything else.
Therefore, the language doesn't need to be tight and should
remain as written. He, therefore, withdrew Conceptual Amendment
1.
5:33:03 PM
MR. THAYER specified that with the amendment labeled X.2, he
wanted to be clear that additional collateral is allowed.
5:33:21 PM
REPRESENTATIVE OLSON suggested ending the sentence after
"collateral" [on page 4, line 7].
REPRESENTATIVE GRUENBERG opined that he wouldn't delete the last
phrase because it's extremely important that the collateral be
acceptable to the commissioner, which he characterized as
quality control.
5:34:01 PM
CHAIR JOHNSON inquired as to whether inserting the following
language would be acceptable: "which include other collateral,
which may include a charter halibut permit".
REPRESENTATIVE GRUENBERG said he is agreeable to that.
5:34:45 PM
REPRESENTATIVE AUSTERMAN related his belief the existing
language implies that the permit would be used as collateral on
[subparagraph] (4). Nowhere in the bill is it explicit that the
permit would be used as collateral, other than the amendment, he
said. He asked if that's correct.
MR. THAYER replied yes.
5:35:15 PM
CHAIR JOHNSON clarified that his suggestion was to insert the
language "which may include". Therefore, once the lawsuits are
settled and clear ownership is provided, then permits could be
collateralized. He asked if that cleans up the language.
MR. THAYER replied yes.
5:35:46 PM
REPRESENTATIVE TUCK surmised then that an individual "may" want
to use a charter halibut permit, but it isn't required in
addition to other collateral.
MR. THAYER answered yes.
5:36:12 PM
CHAIR JOHNSON moved that the committee adopt Conceptual
Amendment 2, to insert the following language:
"which include other collateral which may include a
charter halibut permit"
There being no objection, Conceptual Amendment 2 was adopted.
5:36:52 PM
CHAIR JOHNSON, upon determining no one else wished to testify,
closed public testimony.
5:37:14 PM
REPRESENTATIVE OLSON moved to report HB 121, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 121(RLS) was
reported from the House Rules Standing Committee.
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