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