05/02/2005 10:36 AM Senate FIN

                                                                                                                                
     HOUSE BILL NO. 230                                                                                                         
     "An Act authorizing the making of loans for upgrade of                                                                     
     commercial fishing tender vessels and gear."                                                                               
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
IAN FISK, Staff  to Representative Bill Thomas, the  bill's sponsor,                                                            
asked  that  the bill  be  set  aside  awaiting  the arrival  of  an                                                            
additional testifier.                                                                                                           
                                                                                                                                
Co-Chair Green ordered the bill SET ASIDE.                                                                                      
                                                                                                                                
[NOTE:  This bill was  readdressed  later in the  meeting. See  Time                                                            
Stamp 3:26:24 PM.]                                                                                                              
                                                                                                                                
3:18:10 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 230                                                                                                         
     "An Act authorizing the making of loans for upgrade of                                                                     
     commercial fishing tender vessels and gear."                                                                               
                                                                                                                                
                                                                                                                                
AT EASE 3:27:13 PM /3:27:15 PM                                                                                              
                                                                                                                                
The bill was again before the Committee.                                                                                        
                                                                                                                                
Co-Chair Green stated that  the bill had been held in order to allow                                                            
the Department  of Commerce, Community  and Economic Development  to                                                            
address a concern voiced by Co-Chair Wilken.                                                                                    
                                                                                                                                
Co-Chair  Wilken restated  his concern that  the State, through  its                                                            
"quasi-private  entity",  the Commercial  Fisheries  Revolving  Loan                                                            
Fund (CFRLF) in  the Department of Commerce, Community  and Economic                                                            
Development, might be competing with private enterprise.                                                                        
                                                                                                                                
3:28:34 PM                                                                                                                    
                                                                                                                                
IAN FISK, Staff  to Representative Bill Thomas, the  bill's sponsor,                                                            
communicated  that  the Commercial  Fishing  and  Agricultural  Bank                                                            
(CFAB), which  operates the CRFLF, was created to  fill a void being                                                            
experienced  by a sector  of the fishing industry.  That void  was a                                                            
lack of  financing options  being available  in the private  sector.                                                            
The goal  of CFAB is to  promote and enhance  the quality of  Alaska                                                            
seafood.                                                                                                                        
                                                                                                                                
3:29:07 PM                                                                                                                    
                                                                                                                                
GREG  WINEGAR,  Director, Division  of  investments,  Department  of                                                            
Commerce,  Community and  Economic Development,  explained that  the                                                            
clientele  served by  CFAB is  "for the  most part,  different  than                                                            
those" who  could receive financial  assistance through the  private                                                            
sector". The  program being offered  has a lower interest  rate than                                                            
that  offered  by  other  financial  entities   because  the  State,                                                            
supported by  years of discussion  with such entities as  the Salmon                                                            
Industry Task Force, has  determined that "improving the quality" of                                                            
the State's products is  important. The rate being offered is "prime                                                            
minus two"; the  availability of this rate has encouraged  fishermen                                                            
to make improvements in their operations.                                                                                       
                                                                                                                                
Senator   Stedman  noted   that  the  majority   of  the   financial                                                            
institutions offer a rate of "prime plus something".                                                                            
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection, HB 230  was REPORTED from Committee  with                                                            
previous  zero  fiscal  note  #1  dated  March  25,  2005  from  the                                                            
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
3:30:53 PM