Legislature(1993 - 1994)
03/17/1993 03:40 PM Senate RES
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* first hearing in first committee of referral
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SENATE RESOURCES COMMITTEE
March 17, 1993
3:40 p.m.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Al Adams
MEMBERS ABSENT
Senator Fred Zharoff
Senator Dave Donley
COMMITTEE CALENDAR
SENATE BILL NO. 132
"An Act relating to loans for the purchase of individual
fishery quota shares."
PREVIOUS SENATE COMMITTEE ACTION
SB 132 - See Resources minutes dated 3/15/93.
WITNESS REGISTER
Jere Murray
Seldovia, Alaska
POSITION STATEMENT: Faxed his comments.
Linda Behnken
403 Lincoln Street
Sitka, Alaska 99835
POSITION STATEMENT: Supported SB 132.
Paul Seaton
58360 Bruce Drive
Homer, Alaska 99603
POSITION STATEMENT: Commented on SB 132.
Greg Winegar, Manager
Division of Investments
Department of Commerce and Economic Development
P.O. Box 34159
Juneau, Alaska 99803-4159
POSITION STATEMENT: Commented on SB 132.
Senator George Jacko
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Sponsor of SB 132.
ACTION NARRATIVE
TAPE 93-16, SIDE A
Number 001
SENATOR MILLER called the Resources Committee meeting to
order at 3:40 p.m. and announced SB 132 LOANS FOR IFQ'S to
be up for consideration. He said they have a CS before them
that adds a findings and intent section and an effective
date.
JERE MURRAY, Seldovia, testified that he had faxed his
comments to the committee earlier in the day and would
answer questions.
LINDA BEHNKEN, Alaska Longline Fishermen's Association,
supported SB 132 and the IFQ program. It offers a
tremendous opportunity to Alaskans that the state cannot
afford to miss, she said. It would allow the fishermen and
coastal communities to continue to prosper and bring revenue
to the state directly through raw fish tax and indirectly
through enhanced economic health. She thought it was
essential to have the loan program in place before IFQ's are
adopted, because a significant amount of quota shares will
exchange hands during the early years of the program.
Number 101
NANCY LANDES, Southcentral Longline Enterprises in Seward,
testified that she hadn't had time to review the proposed
CS. She felt this program might be a little premature. She
commented that it is hard to find the rationale behind a
loan program when the state budget is being cut. She
thought whether the IFQ program was legal would affect a
loan program, because money could be lent and there would be
no way of getting it back if the program was declared
illegal.
Number 153
PAUL SEATON, Homer, said he had faxed his comments to the
committee. He commented that he appreciated the findings
section on the new CS. He said since the IFQ plan itself
says they may be revoked or modified at any time without
compensation that no bank would touch them.
Number 187
SENATOR LEMAN moved to adopt the CS to SB 132. There were
no objections and it was so ordered.
SENATOR ADAMS asked Greg Winegar, Division of Investments
(Juneau Lending Branch Manager), how he would deal with
people getting loans for the IFQ's and perhaps selling the
shares. Mr. WINEGAR said they would record documents with
Uniform Commercial Code which would perfect the state's lien
position on the shares themselves. If they took other
collateral, other means would be used for that.
SENATOR ADAMS asked if this loan program would fall under
the Commercial Fishing Loan Fund and its guidelines. MR.
WINEGAR said that was correct. SENATOR ADAMS asked how many
loans an officer normally can handle. MR. WINEGAR answered
that could vary quite a bit. He said their average
portfolio is running about $60,000 per loan. It would
depend on the size of the loans and how much funding was
available. The loan officers also do collection work,
extension work, etc., he explained.
MR. WINEGAR said that the eligibility in SB 132 was a little
different than either the A or B programs that currently
exist.
Number 243
SENATOR FRANK asked Mr. Winegar if he would make a loan
unless he was confident that they could perfect a security
interest. MR. WINEGAR said that was correct. They are
having the Attorney General's office looking at this right
now to be sure that is the case.
Number 256
SENATOR LEMAN said Dr. Murray, in his written testimony,
suggests that loans be limited to only those individuals who
don't receive initial allocation of quota shares under the
plan plus those that receive some initial allocation of some
limit of perhaps 10,000 lbs. Was this a discriminatory
practice, he asked? MR. WINEGAR said he thought it was
something they could do in the eligibility section. He
wasn't sure about the legality. He said they could
administer it that way. The language could go in under
Section C.
Number 282
SENATOR JACKO said he had no problems with the CS.
SENATOR MILLER stated they do have clarification from a
legislative attorney regarding the question of the term
"off-state" which means three miles off-shore to two hundred
miles off-shore, and the term could not be construed to
apply to fishing in Washington waters.
SENATOR ADAMS said he didn't mind moving the bill as long as
Dr. Murray's question is answered.
SENATOR FRANK moved to pass CSSB 132 from committee along
with the fiscal note with individual recommendations. There
were no objections and it was so ordered.
SENATOR MILLER adjourned the meeting at 4:00 p.m.
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