Legislature(2017 - 2018)GRUENBERG 120
02/23/2017 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB56 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 56 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 56-COMMERCIAL FISHING LOANS
10:04:17 AM
CHAIR STUTES announced that the only order of business would be
HOUSE BILL NO. 56, "An Act relating to limitations on certain
commercial fishing loans made by the Department of Commerce,
Community, and Economic Development."
10:04:25 AM
DAN ORTIZ, Alaska State Legislature, said this bill is a small
step in creating an avenue to assist young fishermen to enter
the industry and help to alleviate the greying of the fleet.
Resources will be more accessible, such as boats, repairs,
permits, and other related requirements for becoming a fishing
boat captain. The program is self-sustainable, he finished.
10:06:22 AM
REPRESENTATIVE EASTMAN asked about the number of outstanding
loans that were made at, or have reached, the current $300,000
cap, and whether the cap should be set higher than the proposed
$400,000.
REPRESENTATIVE ORTIZ responded that the amount being proposed is
conservative to ensure that the process for opportunities is not
circumvented nor will it represent competition to private
commercial interests. He deferred further comment to Britteny
Cioni-Haywood.
10:08:56 AM
BRITTENY CIONI-HAYWOOD, Division of Economic Development (DED),
Department of Commerce, Community & Economic Development
(DCCED), said no current borrow has an outstanding principle of
$400,000, and 16 borrowers have outstanding balances of
$300,000. Regarding the number of applications received for a
$300,000 loan, she offered to provide further information, and
pointed out that a typical application would be for a lesser,
initial amount, and other loans would be added to the balance
over time, with an absolute cap of $400,000.
10:11:12 AM
REPRESENTATIVE CHENAULT asked how the current cap of $300,000,
could result in a loan totaling $400,000.
The committee took an at-ease from 10:11 a.m. to 10:14 a.m.
10:14:27 AM
MS. CIONI-HAYWOOD said that for the entire commercial fisheries
loan program, the maximum is being raised to $400,000; however,
within the program are numerous sections [AS 16.10.310(1)(A)-
(F)]. The proposed change affects the cap for Sec. (A), raising
it from $300,000 to $400,000; Sec. (B) will be raised from
$100,000 to $200,000, "and so forth." In response to a question
from the chair she explained that Sec. (A) applies to permit
purchases, engine fuel efficiency, and product quality
improvements, and Sec. (B) covers permit purchases, vessel
purchases, vessel upgrades, gear purchases, engine fuel
efficiency and product quality improvements. She pointed out
that Sec. (B) requires letters of denial from a recognized
lending institution.
CHAIR STUTES opened public testimony.
10:15:53 AM
BENJAMIN BROWN, Commissioner, Commercial Fisheries Entry
Commission (CFEC), stated official support for HB 56 and said
this will be an important tool to assist young fishermen
entering the industry and will help offset concerns for the
greying of the fleet.
10:17:27 AM
REPRESENTATIVE KREISS-TOMKINS stated support for HB 56, and said
this is a clear solution to a major problem.
10:17:55 AM
REPRESENTATIVE CHENAULT asked whether raising the Sec. (A) cap
would allow a borrower to have an aggregate loan total exceeding
$400,000.
MS. CIONI-HAYWOOD responded no, and said a person could only
have an aggregate loan total of $400,000.
10:19:09 AM
REPRESENTATIVE FANSLER referred to the bill, page 1, lines 13
and 14 [continuing to page 2, lines 1 and 2], which reads:
The total of balances outstanding on loans made under
AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for
each community eligible under federal statute or
regulation to establish or participate in the
establishment of a community quota entity.
REPRESENTATIVE FANSLER noted the $2 million limit and asked for
further information.
MS. CIONI-HAYWOOD said the $2 million is in reference to the
allowable loan program relating to a community quota entity
(CQE), not individual fishermen.
REPRESENTATIVE FANSLER questioned the possible need of raising
the limit amount above $400,000.
MS. CIONI-HAYWOOD said the $400,000 limit has been deemed
adequate.
10:20:25 AM
REPRESENTATIVE CHENAULT expressed concern that the current
$300,000 cap appears to allow borrows to hold a $400,000 limit.
He maintained that raising the cap, given this model, would
allow loans to exceed $400,000.
MS. CIONI-HAYWOOD explained that the bill allows flexibility
within the loan sections, thus it may appear that someone has
exceeded the cap, but she assured the committee that the cap is
firm at $400,000.
CHAIR STUTES closed public testimony.
10:23:21 AM
REPRESENTATIVE FANSLER moved to report HB 56 out of committee
with individual recommendations and the accompanying fiscal
notes. Without objection, HB 56 was reported from the House
Special Committee on Fisheries.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB056 Support USAG.pdf |
HFSH 2/23/2017 10:00:00 AM |
HB 56 |
| HB056 Support Johnson 01.24.17.pdf |
HFSH 2/23/2017 10:00:00 AM |
HB 56 |