Legislature(1993 - 1994)
04/08/1993 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
April 8, 1993
3:00 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chair
Rep. Brian Porter
Rep. Jerry Mackie
MEMBERS ABSENT
Rep. Bill Williams
Rep. Joe Sitton
Rep. Eldon Mulder
COMMITTEE CALENDAR
*HB 252: "An Act amending the Commercial Fishing Loan Act
to authorize refinancing of existing loans made
under that Act."
PASSED FROM COMMITTEE
HB 50: "An Act authorizing the Anchorage to Kenai
Peninsula and the Healy to Fairbanks power
transmission interties and approving the design
and construction costs of the interties; and
providing for an effective date."
HEARD AND HELD
HB 51: "An Act making a special appropriation for design
and construction of power transmission interties
between Anchorage and the Kenai Peninsula and
between Healy and Fairbanks; and providing for an
effective date."
HEARD AND HELD
HB 220: "An Act relating to the economic development grant
program; and providing for an effective date."
POSTPONED
(* First public hearing.)
WITNESS REGISTER
REP. CARL MOSES
Alaska State Legislature
State Capitol
Juneau, Alaska 99801-1182
465-4451
Position Statement: Prime Sponsor of HB 252
MARTIN RICHARDS, Director
Division of Investments
Department of Commerce and Economic Development
P.O. Box 34159
Juneau, Alaska 99803-4159
465-2510
Position Statement: Presented Departments position and
and answered questions on HB 252
BRUCE SCHACTLER
Area K Seiners Association
P.O. Box 2399
Kodiak, Alaska 99615
486-4686
Position Statement: Supported HB 252
JERRY MCCUNE
United Fishermen of Alaska
211 Fourth Street, Suite 112
Juneau, Alaska 99801
586-2820
Position Statement: Supported HB 252
PREVIOUS ACTION
BILL: HB 252
SHORT TITLE: REFINANCING COMMERCIAL FISHING LOANS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MOSES,Davidson,Olberg
TITLE: "An Act amending the Commercial Fishing Loan Act to
authorize refinancing of existing loans made under that
Act."
JRN-DATE JRN-PG ACTION
03/24/93 761 (H) READ THE FIRST TIME/REFERRAL(S)
03/24/93 761 (H) LABOR & COMMERCE, RESOURCES,
FINANCE
03/26/93 808 (H) COSPONSOR(S): DAVIDSON, OLBERG
04/08/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 252
SHORT TITLE: REFINANCING COMMERCIAL FISHING LOANS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MOSES,Davidson,Olberg
TITLE: "An Act amending the Commercial Fishing Loan Act to
authorize refinancing of existing loans made under that
Act."
JRN-DATE JRN-PG ACTION
03/24/93 761 (H) READ THE FIRST TIME/REFERRAL(S)
03/24/93 761 (H) LABOR & COMMERCE, RESOURCES,
FINANCE
03/26/93 808 (H) COSPONSOR(S): DAVIDSON, OLBERG
04/08/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 50
SHORT TITLE: AUTHORIZING POWER TRANSMISSION INTERTIES
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) NAVARRE,Carney,Brice,Sitton,
Menard,Davies
TITLE: "An Act authorizing the Anchorage to Kenai Peninsula
and the Healy to Fairbanks power transmission interties and
approving the design and construction costs of the
interties; and providing for an effective date."
JRN-DATE JRN-PG ACTION
01/14/93 58 (H) READ THE FIRST TIME/REFERRAL(S)
01/14/93 59 (H) LABOR & COMMERCE, FINANCE
02/11/93 (H) L&C AT 03:00 PM CAPITOL 17
02/11/93 (H) MINUTE(L&C)
02/15/93 350 (H) COSPONSOR(S): GREEN
04/08/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 51
SHORT TITLE: APPROP: POWER TRANSMISSION INTERTIES
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) NAVARRE,Carney,Brice,Sitton,
Menard,Davies
TITLE: "An Act making a special appropriation for design and
construction of power transmission interties between
Anchorage and the Kenai Peninsula and between Healy and
Fairbanks; and providing for an effective date."
JRN-DATE JRN-PG ACTION
01/14/93 59 (H) READ THE FIRST TIME/REFERRAL(S)
01/14/93 59 (H) LABOR & COMMERCE, FINANCE
02/11/93 (H) L&C AT 03:00 PM CAPITOL 17
02/11/93 (H) MINUTE(L&C)
02/15/93 351 (H) COSPONSOR(S): GREEN
04/08/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 220
SHORT TITLE: ECONOMIC DEVELOPMENT GRANT FUND
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MOSES
TITLE: "An Act relating to the economic development grant
program; and providing for an effective date."
JRN-DATE JRN-PG ACTION
03/12/93 619 (H) READ THE FIRST TIME/REFERRAL(S)
03/12/93 619 (H) CRA, LABOR & COMMERCE, FINANCE
03/25/93 (H) CRA AT 01:00 PM CAPITOL 124
03/25/93 (H) MINUTE(CRA)
03/26/93 789 (H) CRA RPT CS(CRA) 6DP 1NR
03/26/93 790 (H) DP: SANDERS, BUNDE, WILLIS,
WILLIAMS
03/26/93 790 (H) DP: TOOHEY, OLBERG
03/26/93 790 (H) NR: DAVIES
03/26/93 790 (H) -ZERO FISCAL NOTE (DCED) 3/26/93
03/26/93 790 (H) REFERRED TO LABOR & COMMERCE
04/08/93 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 93-36, SIDE A
Number 001
CHAIRMAN HUDSON convened the meeting at 3:14 p.m., April 8,
1993.
HB 252 REFINANCING COMMERCIAL FISHING LOANS
Number 049
REP. CARL MOSES, PRIME SPONSOR of HB 252, read the following
sponsor statement:
"I have introduced HB 252 to give the Department of Commerce
the authority to refinance existing commercial fishing
loans. Most of the 1,200 commercial fisherman who now have
state loans are paying 10.5% in interest rates. Regulations
provide for new fixed rate loans at 2% above the bank prime
rate. Since the current bank prime rate is 6%, current
commercial fishing loans are now at 8% rates. However, the
Department of Commerce has no mechanism to allow for current
loans to be refinanced to take advantage of the lower
interest rates that are currently available.
"Commercial fishermen have been faced these past few years
with low prices and unpredictable fish returns. Following
the disastrous 1991 salmon season, the Department of
Commerce approved loan extensions for nearly half of the
existing loans. More than 3000 fishermen are reportedly in
arrears this year to the Internal Revenue Service for back
taxes. The commercial fishing industry is obviously in bad
shape. Allowing fishermen to refinance their loans and
reduce their monthly payments is one obvious way the
legislature can help the industry out. Although there is a
cost for such a refinancing program, there is sufficient
cash flow in the revolving loan fund to accommodate it.
Additionally, fishermen would have an easier time making
their payments if their loans were at lower interest rates."
Number 100
MARTIN RICHARDS, DIRECTOR, DIVISION OF INVESTMENTS,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified
in support of HB 252. Mr. Richard stated that current
statutes do not allow for refinancing and went on to
describe the mechanics of the loan program. Mr. Richards
pointed out that HB 252 would mean approximately $1.6
million less each year in interest payments coming into the
fund.
Number 286
BRUCE SCHACTLER, representing AREA K SEINERS ASSOCIATION,
testified from Kodiak in support of HB 252. Mr. Schactler
stated that many fishermen borrowed money based on the
steady markets of the 80's, and so much has changed since,
that HB 252 would be paramount to fishermen's economic
survival.
MR. SCHACTLER pointed out that the fund may gain less money
in interest if HB 252 passes. But without the ability to
refinance, many fishermen may have to default, which would
be very expensive to the state.
Number 360
JERRY MCCUNE, representing UNITED FISHERMEN OF ALASKA,
testified in support of HB 252. Mr. McCune echoed the above
testimony with regards to the great need for this
legislation.
REP. MACKIE moved for passage of HB 252 with individual
recommendations and a fiscal note.
HB 50 AUTHORIZING POWER TRANSMISSION INTERTIES
HB 51 APPROP: POWER TRANSMISSION INTERTIES
CHAIRMAN HUDSON announced his intention to use HB 50 and
HB 51 as the vehicle for a new committee substitute (CS) on
interties.
Number 397
CHAIRMAN HUDSON asked the committee to move the CS's to come
before the committee and then hold them over until Tuesday,
April 13, for a hearing.
Number 456
REP. MACKIE stated that he had a problem with spending
millions for upgrading interties and at the same time this
organization has cut the Power Cost Equalization for the
rural areas.
CHAIRMAN HUDSON answered that Rep. Mackie's point was
understood and that was something he hoped would be
addressed when these bills were brought up.
Number 480
REP. PORTER moved to adopt CSHB 50(L&C) and CSHB 51(L&C) in
lieu of the original bill. No objections were heard, so
ordered.
CHAIRMAN HUDSON adjourned the meeting at 3:50 p.m.
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