05/03/2018 02:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 76(FSH)                                                                                                 
                                                                                                                                
     "An Act relating to the mariculture revolving loan                                                                         
     fund and loans and grants from the fund; and providing                                                                     
     for an effective date."                                                                                                    
                                                                                                                                
3:21:57 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon discussed  the  history of  the bill  in                                                                    
committee.   The  committee   had  considered   a  Sectional                                                                    
Analysis and had reviewed the fiscal notes.                                                                                     
                                                                                                                                
Vice-Chair   Bishop  MOVED   to  ADOPT   proposed  committee                                                                    
substitute  for CSHB  76, Work  Draft 30-LS0343\M  (Bullard,                                                                    
4/25/18).                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
Ms. Lucky discussed  the changes to the  bill. She explained                                                                    
that the first  time the committee heard the  bill there had                                                                    
been confusion  regarding loan  terms, which  was previously                                                                    
in Section  13 of  the bill.  She had  worked with  the bill                                                                    
drafter and  Sponsor, to clarify  the intent, which  was now                                                                    
in Section 12 of the bill.                                                                                                      
                                                                                                                                
Ms.  Lucky  discussed  an Explanation  of  Changes  document                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     The Senate Finance CS clarifies when payments and                                                                          
     interest accrual is required  see section 12 on page                                                                       
     5, lines 15-28.                                                                                                            
                                                                                                                                
        • For the existing farm loans, the statute                                                                            
          is unchanged: the department cannot                                                                                   
         require payments for the first six years                                                                               
          of the loan. The department has the                                                                                   
          option of providing that interest                                                                                     
          not accrue during that period.                                                                                        
                                                                                                                                
        • For the new hatchery loans: there are (1) no                                                                        
          payments and (2) no interest accrual for the                                                                          
          first six years of the loan. The department can                                                                       
          extend both for the first 11 years.                                                                                   
                                                                                                                                
     The  Senate Finance  CS also  removes the  authority to                                                                    
     make  grants from  the  revolving  loan fund.  Language                                                                    
     pertaining to  grants was located  on page 3,  lines 8-                                                                    
     13, of the previous bill.                                                                                                  
                                                                                                                                
Ms. Lucky  understood that  the CS would  have no  effect on                                                                    
the fiscal notes previously reviewed.                                                                                           
                                                                                                                                
3:25:24 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
LIZ HARPOLD,  STAFF, REPRESENTATIVE DAN ORTIZ,  relayed that                                                                    
the sponsor was supportive of the changes to the bill.                                                                          
                                                                                                                                
Co-Chair MacKinnon asked for discussion of the fiscal note.                                                                     
                                                                                                                                
BRITTENY  CIONI-HAYWOOD,  DIRECTOR,   DIVISION  OF  ECONOMIC                                                                    
DEVELOPMENT, DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC                                                                    
DEVELOPMENT,   stated  that   the  fiscal   note  from   her                                                                    
department was  unchanged from the  previous version  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair MacKinnon asked  if the bill as proposed  in the CS                                                                    
would work for those looking for economic opportunities.                                                                        
                                                                                                                                
Ms.   Cioni-Haywood  answered   in   the  affirmative.   She                                                                    
explained  that the  CS would  allow for  hatchery loans  to                                                                    
take place, which was the request of the industry.                                                                              
                                                                                                                                
Senator  Stevens  observed  that  the  fund  was  small.  He                                                                    
wondered how  long the fund  could continue  without grants.                                                                    
He  was concerned  about continuation  of  the grants  would                                                                    
reduce the years to make use of loan funds.                                                                                     
                                                                                                                                
Ms. Cioni-Haywood  agreed that the loan  fund was relatively                                                                    
small and would need time  for repayment from hatchery loans                                                                    
for  the fund  to replenish  and revolve.  If the  money was                                                                    
taken  out in  the form  of grants,  the funds  did not  get                                                                    
returned and  the fund would  be reduced by $4.5  million to                                                                    
$5 million.                                                                                                                     
                                                                                                                                
Senator Stevens assumed that the  sponsor was in accord with                                                                    
removing the grant portion of the bill.                                                                                         
                                                                                                                                
Ms. Harpold answered in the affirmative.                                                                                        
                                                                                                                                
3:29:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  MOVED to report  SCS CSHB 76(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB  76(FIN) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from  the Department  of  Commerce,  Community and  Economic                                                                    
Development, and  one new zero  fiscal note  from Department                                                                    
of Fish and Game.                                                                                                               
                                                                                                                                
3:30:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:31:51 PM                                                                                                                    
RECONVENED