03/01/2002 09:13 AM Senate FIN

     CS FOR SENATE BILL NO. 266(RES)                                                                                            
     "An Act authorizing the commissioner of community and economic                                                             
     development to refinance and extend the term of a fishery                                                                  
     enhancement loan."                                                                                                         
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
SENATOR BEN  STEVENS, sponsor  of the bill,  informed the  Committee                                                            
this bill would provide  the Commissioner of Department of Community                                                            
and Economic Development  the ability to refinance loans made by the                                                            
Fisheries Enhancement  Revolving Loan Fund, and "extend  the term of                                                            
a loan when  justified." He continued  that the Department  would be                                                            
required "to submit an  annual report to the Legislature summarizing                                                            
the  commissioner's  decisions  during the  prior calendar  year  to                                                            
approve or deny requests to extend loans."                                                                                      
                                                                                                                                
Senator Stevens  stressed, "there is no forgiveness  of principle or                                                            
interest allowed  under this legislation, and all  payments are made                                                            
directly to the loan fund."                                                                                                     
                                                                                                                                
DAVE COBB,  Business Manager  for the Valdez  Fisheries Development                                                             
Association  (VFDA)   testified  via  teleconference   from  Valdez,                                                            
voicing strong support  for this bill; however, he expressed this is                                                            
"just  one of  many  changes that  must  be made  in  Alaska if  the                                                            
commercial  fishing industry is to  survive." He commented  that the                                                            
hatchery  program in  Alaska  has been  successful,  and that  every                                                            
opportunity  to make hatcheries more  efficient and more  economical                                                            
makes  "good  business  sense."  He  warned  that  the "competitive                                                             
playing field"  for Alaska fisheries  has changed dramatically,  and                                                            
all industries  must  adapt to  survive in the  "competitive  global                                                            
market."  He reiterated  "this bill  makes good  business sense  and                                                            
will have no impact on general fund dollars."                                                                                   
                                                                                                                                
SUE  ASPLUND,  Executive  Director,  Cordova  District  Fishermen's                                                             
United  (CDFU),  testified  via  teleconference  from  Cordova,  and                                                            
detailed the positive economic  impact hatcheries have in the Prince                                                            
William Sound area. She  stressed that this bill would result in the                                                            
immediate ability  of Hatcheries to produce more fish,  which "means                                                            
more fish  into the nets  of commercial fishermen  as well  as sport                                                            
fishermen." She asked the  Committee for their support of this bill.                                                            
                                                                                                                                
GREG  WINEGAR,  Director, Division  of  Investments,  Department  of                                                            
Community and  Economic Development, stated this bill  would provide                                                            
aquaculture associations  an opportunity to refinance existing loans                                                            
to  take  advantage  of  lower  interest  rates.  He  stated  it  is                                                            
important to note this  legislation would not "adversely impact" the                                                            
integrity of  the Fisheries Enhancement  Revolving Loan Fund,  would                                                            
improve  hatcheries financial  picture, and  would have no  negative                                                            
impact on the Department.                                                                                                       
                                                                                                                                
JON CARTER, Director, Douglas  Island Pink and Chum Hatchery (DIPAC)                                                            
testified  in support of  this bill. He cited  the positive  impacts                                                            
hatcheries  have on fisheries  and communities,  and that this  bill                                                            
"simply allows hatcheries  to do good business" by offering them the                                                            
opportunity  to  refinance  at rates  lower  than the  current  nine                                                            
percent.  He stated that  enabling hatcheries  to remain strong  and                                                            
healthy would  result in a positive impact on the  general fund from                                                            
increased  revenue generated  from  State taxes  on commercial  fish                                                            
harvesting.                                                                                                                     
                                                                                                                                
CARL ROSIER, President  of the Alaska Outdoor Council,  testified in                                                            
support  of the bill.  He stressed  the positive  impact  hatcheries                                                            
have  on   recreational   fishermen,  and   stated  refinancing   of                                                            
hatcheries is "good business for the State of Alaska."                                                                          
                                                                                                                                
AT EASE 9:43 AM / 9:57AM                                                                                                        
                                                                                                                                
Senator Ward  made a motion  to move SB  266 (RES) 22-LS1216\T  from                                                            
Committee with accompanying  zero fiscal note from the Department of                                                            
Community and Economic Development.                                                                                             
                                                                                                                                
There were no objections, and the bill MOVED from Committee.