Legislature(2017 - 2018)HOUSE FINANCE 519

03/16/2017 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed 10 min. After Recess --
+= HB 56 COMMERCIAL FISHING LOANS TELECONFERENCED
Moved HB 56 Out of Committee
+= HB 81 AK ENERGY EFFICIENCY LOANS: ELIGIBILITY TELECONFERENCED
Moved CSHB 81(ENE) Out of Committee
+= HB 106 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Moved HB 106 Out of Committee
+ HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 16, 2017                                                                                            
                         4:29 p.m.                                                                                              
                                                                                                                                
4:29:06 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Seaton  called the House Finance  Committee meeting                                                                    
to order at 4:29 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Les Gara, Vice-Chair                                                                                             
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Zach   Fansler,  Sponsor;   Mary  Schlosser,                                                                    
Staff,   Representative  Fansler;   Berett  Wilber,   Staff,                                                                    
Representative  Jonathan Kreiss-Tomkins;  Representative Dan                                                                    
Ortiz,  Sponsor;  Elizabeth Bolling,  Staff,  Representative                                                                    
Ortiz.                                                                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dennis  Dishion,  Executive   Director,  Yuut  Elitnaurviat,                                                                    
Bethel;  Brittney   Cioni-Haywood,  Director,   Division  of                                                                    
Economic Development, Juneau.                                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 56     COMMERCIAL FISHING LOANS                                                                                              
                                                                                                                                
          HB 56  was REPORTED  out of  committee with  a "do                                                                    
          pass"   recommendation  and   with  a   previously                                                                    
          published zero fiscal note: FN1(CED).                                                                                 
                                                                                                                                
HB 81     AK ENERGY EFFICIENCY LOANS: ELIGIBILITY                                                                               
                                                                                                                                
          HB 81  was REPORTED  out of  committee with  a "do                                                                    
          pass"   recommendation  and   with  a   previously                                                                    
          published zero fiscal note: FN1(REV).                                                                                 
                                                                                                                                
HB 106    CIVIL LEGAL SERVICES FUND                                                                                             
                                                                                                                                
          HB 106  was REPORTED out  of committee with  a "do                                                                    
          pass"   recommendation  and   with  a   previously                                                                    
          published zero  fiscal note:  FN1(AJS) and  with a                                                                    
          new  indeterminate fiscal  note by  the Office  of                                                                    
          the Governor.                                                                                                         
                                                                                                                                
HB 141    AK WORKFORCE INVESTMENT BOARD; FUNDS                                                                                  
                                                                                                                                
          HB  141  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
Co-Chair  Foster  reviewed  the   agenda  for  the  day.  He                                                                    
intended  to discuss  and move  HB 56,  HB 81,  and HB  106.                                                                    
There would also be an introduction of HB 141.                                                                                  
                                                                                                                                
HOUSE BILL NO. 106                                                                                                            
                                                                                                                                
     "An Act allowing appropriations to the civil legal                                                                         
     services fund from court filing fees."                                                                                     
                                                                                                                                
4:30:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ZACH  FANSLER, SPONSOR,  relayed that  it was                                                                    
his second  time presenting  HB 106.  The legislation  was a                                                                    
civil  legal services  fund bill  that provided  a mechanism                                                                    
for funding  Alaska Legal  Services, an  entity representing                                                                    
indigent clients around the state.                                                                                              
                                                                                                                                
Co-Chair Foster  indicated that his office  had not received                                                                    
any  amendments for  the bill.  Representative Gara  was not                                                                    
currently  present to  review  the  fiscal notes  associated                                                                    
with the bill.                                                                                                                  
                                                                                                                                
Co-Chair  Seaton  relayed  that  there  was  one  previously                                                                    
published  zero fiscal  note  by  the Judiciary  Department;                                                                    
Appropriation:  Alaska   Court  System;   Allocation:  Trial                                                                    
Courts;  Office of  Management  and  Budget (OMB)  Component                                                                    
Number: 768.                                                                                                                    
                                                                                                                                
4:32:02 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:32:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Seaton   reported  that  there  was   also  a  new                                                                    
indeterminate  fiscal  note  by  OMB;  Appropriation:  Funds                                                                    
Transfer;  Allocation:   Civil  Legal  Services   Fund;  OMB                                                                    
Component Number: 3015.                                                                                                         
                                                                                                                                
Representative Wilson wanted to  clarify that the reason the                                                                    
fiscal note  was indeterminate  was because  the legislature                                                                    
could place  zero to 25  percent each year.  She highlighted                                                                    
that  Page  2 contained  the  full  estimated amount  at  25                                                                    
percent.                                                                                                                        
                                                                                                                                
Representative Fansler responded  that Representative Wilson                                                                    
was correct.                                                                                                                    
                                                                                                                                
Co-Chair   Foster    acknowledged   Representative   Pruitt,                                                                    
Representative  Grenn,  and  Representative  Tilton  at  the                                                                    
table.                                                                                                                          
                                                                                                                                
Co-Chair Seaton  asked if the  fund would serve  people with                                                                    
less than 125 percent of poverty.                                                                                               
                                                                                                                                
Representative  Fansler thought  he  had  materials that  he                                                                    
could provide showing the information.                                                                                          
                                                                                                                                
4:34:31 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked the chairman if  he intended to                                                                    
move the bill out of committee.                                                                                                 
                                                                                                                                
Co-Chair Foster responded,  "If it is the will  of the body,                                                                    
yes."                                                                                                                           
                                                                                                                                
Representative  Wilson  MOVED  to   report  HB  106  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair  Seaton  OBJECTED.  He believed  there  were  three                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair Foster confirmed there were two fiscal notes.                                                                          
                                                                                                                                
Representative  Wilson restated  her motion  clarifying that                                                                    
there were two accompanying fiscal notes.                                                                                       
                                                                                                                                
Co-Chair Foster  asked Representative  Fansler if he  had an                                                                    
answer to Representative Seaton's last question.                                                                                
                                                                                                                                
Representative Fansler answered that  the information he had                                                                    
been looking for was in the  bill on Page 1, Lines 11-14. It                                                                    
defined a  low-income individual. He read  directly from the                                                                    
bill:                                                                                                                           
                                                                                                                                
     In  this  section,  "low-income  individual"  means  an                                                                    
     individual with  an income  equal to  or less  than 125                                                                    
     percent of  the most recent federal  poverty guidelines                                                                    
     for  Alaska  set by  the  United  States Department  of                                                                    
     Health and Human Services.                                                                                                 
                                                                                                                                
Co-Chair  Seaton  WITHDREW  his OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
HB  106 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
fiscal note: FN1(AJS) and with  one new indeterminate fiscal                                                                    
note by the Office of the Governor.                                                                                             
                                                                                                                                
4:36:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:37:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 141                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
4:38:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ZACH  FANSLER,   SPONSOR,  introduced   the                                                                    
legislation  which was  an act  relating  to allocations  of                                                                    
funding for the Alaska  Workforce Investment Board. The bill                                                                    
was a renewal  of an already existing bill.  He reviewed the                                                                    
sponsor statement:                                                                                                              
                                                                                                                                
     AS   23.15.820   authorizes    the   Alaska   Workforce                                                                    
     Investment  Board to  administer  the Alaska  Technical                                                                    
     and   Vocational   Education   Program   (TVEP).   This                                                                    
     legislation  reauthorizes the  allocation  of the  TVEP                                                                    
     funding for five years.                                                                                                    
                                                                                                                                
     TVEP was  established by Legislature  in 2000  with the                                                                    
     purpose of  enhancing the quality and  accessibility of                                                                    
     job training  across the  state, and  aligning training                                                                    
     with  regional   workforce  demands.  TVEP   funds  are                                                                    
     obtained from  a portion  of employee  contributions to                                                                    
     the unemployment insurance trust fund.                                                                                     
                                                                                                                                
     The  TVEP   funds  are   allocated  to   technical  and                                                                    
     vocational education entities  across Alaska designated                                                                    
     by AS 23.15.835. Each entity  receives a set percentage                                                                    
     of  the  TVEP funds  available  each  fiscal year.  The                                                                    
     current allocation  sunsets June  30, 2017.  Unless the                                                                    
     allocation  is  reauthorized   this  funding  will  sit                                                                    
     unused in  the TVEP  account instead  of being  used by                                                                    
     these entities to train Alaskans.                                                                                          
                                                                                                                                
     TVEP recipients  are required by  statute to  track and                                                                    
     report  program   outcomes  to  the   Alaska  Workforce                                                                    
     Investment  Board. Each  year  the  Board compiles  and                                                                    
     provides to  the legislature a TVEP  performance report                                                                    
     containing this  information. In Fiscal Year  2016, the                                                                    
     ten  TVEP  recipients  were allocated  $12,510,900  and                                                                    
     served 10,295 youth and adults.  A statewide network of                                                                    
     training  providers   is  critical  to   developing  an                                                                    
     Alaskan workforce.                                                                                                         
                                                                                                                                
     This  legislation  is  necessary to  help  educate  and                                                                    
     train Alaskans for Alaska's jobs.                                                                                          
                                                                                                                                
Representative Fansler  emphasized the importance  of making                                                                    
sure  the state's  highest paying  technical and  vocational                                                                    
jobs were  being performed by  Alaskans. The system  was set                                                                    
up so that  the legislation helped every  region. He relayed                                                                    
that   10   different   programs  were   affected   by   the                                                                    
legislation:                                                                                                                    
                                                                                                                                
        1. University of Alaska (statewide)                                                                                     
          45 percent TVEP funds                                                                                                 
                                                                                                                                
        2. Galena Interior Learning Academy                                                                                     
          4 percent TVEP funds                                                                                                  
                                                                                                                                
        3. Alaska Technical Center (Kotzebue)                                                                                   
          9 percent TVEP funds                                                                                                  
                                                                                                                                
      4. Alaska Vocational Technical Center (Seward)                                                                            
          17 percent TVEP funds                                                                                                 
                                                                                                                                
        5. Northwestern Alaska Career and Technical Center                                                                      
          (Nome) 3 percent TVEP funds                                                                                           
                                                                                                                                
        6. Southwest Alaska Vocational and Education Center                                                                     
          (King Salmon) 3 percent TVEP funds                                                                                    
                                                                                                                                
        7. Yuut Elitnaurviat, The People's Learning Center                                                                      
          (Bethel) 9 percent TVEP funds                                                                                         
                                                                                                                                
        8. Partners for Progress (Delta Junction)                                                                               
          3 percent TVEP funds                                                                                                  
                                                                                                                                
        9. Amundsen Educational Center (Soldotna)                                                                               
          2 percent TVEP funds                                                                                                  
                                                                                                                                
        10. I (Bethel)                                                                                                          
           5 percent TVEP funds                                                                                                 
                                                                                                                                
Co-Chair Foster reviewed the list of testifiers available                                                                       
for questions.                                                                                                                  
                                                                                                                                
4:44:01 PM                                                                                                                    
                                                                                                                                
Representative Tilton asked if the distribution in the bill                                                                     
had changed from what it was prior to the sunset date.                                                                          
                                                                                                                                
Representative Fansler responded that the distribution was                                                                      
the same.                                                                                                                       
                                                                                                                                
Representative Tilton asked if any other entities were                                                                          
interested in being part of the distribution.                                                                                   
                                                                                                                                
Representative   Fansler   reported    no   other   entities                                                                    
approaching  his office  wanting to  be on  the distribution                                                                    
list.  He  understood  that  previously  there  had  been  a                                                                    
significant  amount   of  discussion  on  the   subject  and                                                                    
anticipated  hearing from  other entities.  However, he  had                                                                    
not heard from anyone.                                                                                                          
                                                                                                                                
Representative Wilson  asked about how the  funding was used                                                                    
and  about   the  certification   having  to  do   with  the                                                                    
university.                                                                                                                     
                                                                                                                                
Representative  Fansler responded  that he  could provide  a                                                                    
PowerPoint detailing  the information  Representative Wilson                                                                    
requested.  He  was  happy  to  provide  the  materials  for                                                                    
members to review.                                                                                                              
                                                                                                                                
MARY  SCHLOSSER, STAFF,  REPRESENTATIVE FANSLER,  added that                                                                    
the  information  provided in  the  Labor  PowerPoint was  5                                                                    
pages,  which was  the standard  submission for  committees.                                                                    
The full technical  report from the Department  of Labor and                                                                    
Workforce Development  was available  online. She  was happy                                                                    
to provide the information to the representative.                                                                               
                                                                                                                                
Representative  Wilson   wondered  if   the  state   had  an                                                                    
obligation,  because funds  were being  provided for  by the                                                                    
federal  government, to  use  the funds  to  help people  to                                                                    
return to work.                                                                                                                 
                                                                                                                                
Representative Fansler  responded that  he was  not inclined                                                                    
to answer her question and  would likely differ her question                                                                    
to  someone  else. He  relayed  that  the funds  were  state                                                                    
unemployment insurance funds  being used on a  state a state                                                                    
level. He did not believe  there were any federal guidelines                                                                    
that applied to  it. He was happy to differ  to someone else                                                                    
if he was incorrect.                                                                                                            
                                                                                                                                
4:48:42 PM                                                                                                                    
                                                                                                                                
Representative  Wilson commented  that unemployment  dollars                                                                    
were being used to pay the  amounts. She wanted to make sure                                                                    
there was enough money to be  able to train those people who                                                                    
were not working  so they could get back to  work. She hoped                                                                    
for    additional     information    regarding    retraining                                                                    
expectations.                                                                                                                   
                                                                                                                                
Representative Fansler would  provide additional information                                                                    
in a memo.                                                                                                                      
                                                                                                                                
Co-Chair Foster  reminded members  that Paloma  Harbour with                                                                    
the  Department of  Labor and  Workforce Development  was in                                                                    
the room and available for questions as well as others.                                                                         
                                                                                                                                
Representative Wilson understood the  committee was short on                                                                    
time  presently and  suggested  that Representative  Fansler                                                                    
get an answer back to committee members.                                                                                        
                                                                                                                                
4:50:18 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED Public Testimony.                                                                                        
                                                                                                                                
4:50:45 PM                                                                                                                    
                                                                                                                                
DENNIS  DISHION,  EXECUTIVE   DIRECTOR,  YUUT  ELITNAURVIAT,                                                                    
BETHEL  (via  teleconference),  informed  committee  members                                                                    
that the  funds were  paramount in order  for the  center to                                                                    
continue its operations in preparing  local people for local                                                                    
jobs in  the Yukon  Delta Region.  He noted  jobs associated                                                                    
with many large construction  projects becoming available in                                                                    
the region. The funds helped  the center to deliver training                                                                    
and workforce development skills  for those people living in                                                                    
the  area. The  training  facilitated locals  being able  to                                                                    
obtain  family wage  jobs rather  than out-of-state  skilled                                                                    
tradesmen  filling   them.  The  ultimate  mission   of  the                                                                    
organization  was to  train local  people for  local, family                                                                    
wage jobs.                                                                                                                      
                                                                                                                                
4:52:06 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  remembered having  a conversation                                                                    
about  the cost  of  broadband services  at  the center.  He                                                                    
asked if Mr. Dishion had that dollar figure.                                                                                    
                                                                                                                                
Mr.  Dishion responded  that  it  was likely  Representative                                                                    
Guttenberg had spoken with his  predecessor. He did not have                                                                    
the figure off the top of his  head but was happy to get the                                                                    
number to him.                                                                                                                  
                                                                                                                                
4:52:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair  Foster  indicated he  would  be  setting the  bill                                                                    
aside.  Amendments were  due to  Jane  Pierson by  Thursday,                                                                    
March 23, 2017 at 5:00 p.m.                                                                                                     
                                                                                                                                
HB  141  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
4:53:18 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:53:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 81                                                                                                             
                                                                                                                                
     "An Act  making an entity  that is exempt  from federal                                                                    
     taxation under 26 U.S.C. 501(c)(3),  (4), (6), (12), or                                                                    
     (19)   (Internal   Revenue   Code)  and   a   federally                                                                    
     recognized tribe  eligible for  a loan from  the Alaska                                                                    
     energy  efficiency  revolving  loan fund;  relating  to                                                                    
     loans from the Alaska  energy efficiency revolving loan                                                                    
     fund; and  relating to the  annual report  published by                                                                    
     the Alaska Housing Finance Corporation."                                                                                   
                                                                                                                                
4:53:48 PM                                                                                                                    
                                                                                                                                
BERETT   WILBER,   STAFF,   REPRESENTATIVE   KREISS-TOMKINS,                                                                    
thanked the  committee for hearing  the bill. She  wanted to                                                                    
provide  answers  to  two  outstanding  questions  from  the                                                                    
previous committee hearing on  March 6, 2017. Representative                                                                    
Kawasaki  had asked  if political  parties would  qualify to                                                                    
apply  for   loans  under   the  new   expanded  eligibility                                                                    
criteria.  She  responded  that they  would  not.  Political                                                                    
parties  were  classified  as 527  non-profits  rather  than                                                                    
501C, 3, 4, 6, 12,  or 19 non-profits. Representative Wilson                                                                    
had  asked if  the  state would  be  competing with  private                                                                    
lenders  with  opening  the eligibility  criteria.  She  had                                                                    
asked Katie Conway, the government  relations manager at the                                                                    
Alaska  Energy Authority  about the  energy efficiency  loan                                                                    
landscape  in  Alaska. She  and  Ms.  Conway concluded  that                                                                    
there  were  no   private  lenders  set  up   to  do  energy                                                                    
efficiency  loans.  A  person  could  apply  for  a  regular                                                                    
construction  loan   and  apply  it  to   energy  efficiency                                                                    
projects.  However,  energy  efficiency  loans  through  the                                                                    
program  were based  on the  guaranteed  savings that  would                                                                    
come  from doing  energy  efficiency retrofits.  Traditional                                                                    
loans were based on the cost  of a project and the available                                                                    
collateral.                                                                                                                     
                                                                                                                                
Co-Chair  Foster  indicated  that  no  amendments  had  been                                                                    
submitted for  the bill.  He reported  only one  zero fiscal                                                                    
note from  the Department of Revenue;  Appropriation: Alaska                                                                    
Housing  Finance  Corporation;  Allocation:  Alaska  Housing                                                                    
Finance Corporation Operations; OMB Component Number: 110.                                                                      
                                                                                                                                
4:56:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton MOVED to report  HB 81 out of Committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
HB  81  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and  with a previously published  zero fiscal                                                                    
note: FN1(REV).                                                                                                                 
                                                                                                                                
4:57:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:58:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 56                                                                                                             
                                                                                                                                
     "An Act relating to limitations on certain commercial                                                                      
     fishing loans made by the Department of Commerce,                                                                          
     Community, and Economic Development."                                                                                      
                                                                                                                                
4:58:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   DAN   ORTIZ,   SPONSOR,   reported   having                                                                    
previously presented the bill  to the committee. He reminded                                                                    
members that the bill raised  the potential loan amount from                                                                    
$300 thousand to $400 thousand  in the Fishermen's Revolving                                                                    
Loan  Fund. It  would  allow fishermen  to  borrow money  to                                                                    
purchase permits, boats, and equipment.  The bill would make                                                                    
it easier  for fishermen,  particularly young  fishermen, to                                                                    
get involved  in the industry.  The fund was  originally set                                                                    
up in  the early 80s.  The amount  available to loan  at the                                                                    
time was  $300 thousand and  had not been raised.  The value                                                                    
of  $300 thousand  in the  80s would  currently equal  about                                                                    
$700  thousand  accounting  for   inflation.  The  bill  was                                                                    
raising the amount to $400  thousand. He added that the fund                                                                    
was extremely  solvent with a  default rate of  2.2 percent,                                                                    
which  was well  below  the industry  standard.  He did  not                                                                    
believe  the fund's  solvency would  be impacted  by raising                                                                    
the loan amount. He was available for questions.                                                                                
                                                                                                                                
Co-Chair Foster  reviewed the  list of  testifiers available                                                                    
to answer questions.                                                                                                            
                                                                                                                                
5:01:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton read  from the second paragraph  [Page 2] of                                                                    
the fiscal note:                                                                                                                
                                                                                                                                
     However,  the   overall  program  limit   remaining  at                                                                    
     $400,000,  any revenue  generated from  this change  or                                                                    
     expense   is  expected   to   be   within  the   normal                                                                    
     operational variance of the fund.                                                                                          
                                                                                                                                
Co-Chair Seaton asked  if the bill was raising  the cap from                                                                    
$300 thousand to  $400 thousand or whether the  cap was $400                                                                    
thousand and the bill was raising limits on permits.                                                                            
                                                                                                                                
5:01:40 PM                                                                                                                    
                                                                                                                                
ELIZABETH  BOLLING, STAFF,  REPRESENTATIVE ORTIZ,  responded                                                                    
that the bill  was not raising the aggregate  amount for the                                                                    
loan  fund or  the aggregate  amount a  borrower could  hold                                                                    
unpaid. The  bill was only  raising the sectional  amount by                                                                    
$100 thousand, which was why  the department stated that the                                                                    
loan fund would remain solvent.                                                                                                 
                                                                                                                                
5:02:05 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton relayed  that  some of  the materials  were                                                                    
somewhat  confusing  including  the  sponsor  statement.  He                                                                    
requested that  the supporting documents be  clarified going                                                                    
forward. He was not opposed to the limit.                                                                                       
                                                                                                                                
Ms. Bolling  clarified that the  limit she was  referring to                                                                    
was simply for costs  involving purchasing, refurbishing, or                                                                    
upgrading a vessel  specific to one section  in statute. The                                                                    
amount  that could  be loaned  for those  services would  be                                                                    
raised. However,  the total aggregate amount  a person could                                                                    
borrow and  hold an  unpaid balance from  the loan  fund was                                                                    
$400 thousand.                                                                                                                  
                                                                                                                                
Representative  Ortiz added  that the  amount was  currently                                                                    
$400 thousand. The bill was just expanding the section.                                                                         
                                                                                                                                
Representative  Pruitt thought  the  Co-Chair  had raised  a                                                                    
good question.  He was  confused as well.  He was  under the                                                                    
impression that the bill would  change the overall aggregate                                                                    
amount. He was trying to understand the focus of the bill.                                                                      
                                                                                                                                
Representative Ortiz  believed the same question  came up in                                                                    
a  previous hearing.  He hoped  Ms. Haywood  was online  and                                                                    
could provide further clarification.                                                                                            
                                                                                                                                
Co-Chair Foster relayed that Ms. Haywood was not online.                                                                        
                                                                                                                                
Ms. Bolling  explained that the section  being amended spoke                                                                    
about  two loan  types; A  and B.  Under type  A up  to $200                                                                    
thousand  could  be  borrowed.  Under  type  B  up  to  $100                                                                    
thousand could  be borrowed.  The total  was referred  to as                                                                    
$300  thousand in  the section.  However, in  the subsection                                                                    
for  purchasing  a  vessel  and  refurbishing  it  was  $100                                                                    
thousand. The intent of the bill  was to raise the amount to                                                                    
$200 thousand so the full  section would equal $400 thousand                                                                    
- the  equivalent that a person  could take out of  the loan                                                                    
fund.                                                                                                                           
                                                                                                                                
5:04:50 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:06:25 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster  explained that the committee  recommended a                                                                    
revision of  the sponsor statement  but agreed the  bill was                                                                    
correct.                                                                                                                        
                                                                                                                                
Representative Wilson  referred to Section D  in the statute                                                                    
book, Page  131. It appeared  that it was talking  about two                                                                    
specific  loans rather  than the  total  loans. She  thought                                                                    
that bill was  changing from $300 thousand  to $400 thousand                                                                    
in  section D.  She wondered  where  the change  was in  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Foster noted  that Ms.  Haywood was  available for                                                                    
questions.                                                                                                                      
                                                                                                                                
Ms.  Bolling  read  from  the   statute  in  section  d  [AS                                                                    
16.10.320(d)]:                                                                                                                  
                                                                                                                                
     The total of balances outstanding on loans made to a                                                                       
     borrower under AS 16.10.310 (a)(1)(B) may not exceed                                                                       
     $200 thousand for the purpose of an entry permit, and                                                                      
     may not exceed $100 thousand for all other loans under                                                                     
     that subparagraph.                                                                                                         
                                                                                                                                
Ms. Bolling elaborated that the  amount of $100 thousand was                                                                    
appropriately used  for the purchase and  refurbishment of a                                                                    
vessel.  She explained  that the  $100  thousand amount  was                                                                    
what would  change to $200  thousand in the bill.  The total                                                                    
would equal  $400 thousand rather  than $300  thousand under                                                                    
B.                                                                                                                              
                                                                                                                                
5:07:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster asked Ms. Haywood to respond to the issue.                                                                      
                                                                                                                                
BRITTNEY  CIONI-HAYWOOD,  DIRECTOR,   DIVISION  OF  ECONOMIC                                                                    
DEVELOPMENT,  JUNEAU (via  teleconference),  asked that  the                                                                    
question be restated.                                                                                                           
                                                                                                                                
Co-Chair  Seaton  stated there  was  some  confusion in  the                                                                    
interpretation  of   whether  the   bill  would   raise  the                                                                    
outstanding  aggregate  limit  a   person  could  borrow  or                                                                    
whether the bill  raised the permit loan  from $100 thousand                                                                    
to $200  thousand with the  aggregate remaining the  same at                                                                    
$400 thousand.                                                                                                                  
                                                                                                                                
Ms.  Cioni-Haywood responded  that the  aggregate limit  was                                                                    
currently $400  thousand and would  remain at  $400 thousand                                                                    
in the  bill. The  changes within  the bill  only had  to do                                                                    
with  the different  sections. She  furthered that  that the                                                                    
loan program had a number  of different sections. In section                                                                    
A,  there  would  be  a   $300  thousand  to  $400  thousand                                                                    
increase. In  section B, there  would be a $100  thousand to                                                                    
$200 thousand increase.  In section C, it  was $300 thousand                                                                    
to $400  thousand, and  in section  F, it  was $300  to $400                                                                    
thousand. She  continued that  under the  Commercial Fishing                                                                    
Revolving Loan fund a fisherman  could mix and match between                                                                    
the different  sections up  to $400  thousand. There  was an                                                                    
overall  $400  thousand cap,  which  was  not being  changed                                                                    
within the bill.                                                                                                                
                                                                                                                                
Co-Chair Seaton MOVED to report  HB 56 out of Committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 56 was REPORTED out of committee with a "do pass"                                                                            
recommendation and with a previously published zero fiscal                                                                      
note: FN1(CED).                                                                                                                 
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following day.                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:10:55 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:11 p.m.                                                                                          

Document Name Date/Time Subjects
HB 141 Supporting Documents All Letter 2.27.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB141 Additional Documents pages from 2016_TVEP_Report 2.27.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB141 Additional Documents Pages from UA TVEP Advocacy Package 2.27.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB141 Additional Documents Rep Kito TVEP Information Letter 3.8.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB141 Sectional Analysis 2.27.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB141 Sponsor Statement 2.27.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB 56 Supporting Documents-DCCED Response.pdf HFIN 3/16/2017 1:30:00 PM
HB 56
HB 141 - Document in Support NANA.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB 81 - Letter of Support from AAHA (003).pdf HFIN 3/16/2017 1:30:00 PM
HB 81
HB 141 - Document in Support NANA.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB0056 Sponsor Statement 03.15.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 56
HB141 Additional Documents Rep Kito TVEP Info Letter 3.15.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB 141 Support Letter.pdf HFIN 3/16/2017 1:30:00 PM
HB 141
HB 56 Document in Opposition ABA 3.16.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 56
HB 81 - Sponsor's answers to committee questions 3.16.17.pdf HFIN 3/16/2017 1:30:00 PM
HB 81