04/17/2014 01:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 121(FIN)                                                                                                
                                                                                                                                
     "An  Act relating  to the  examinations, board,  loans,                                                                    
     and  records  of  the  Alaska  Commercial  Fishing  and                                                                    
     Agriculture  Bank;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:29:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:32:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Fairclough  had  a  question  about  the  repeal                                                                    
language  and  inquired whether  the  sponsor  knew how  the                                                                    
state initially got involved loaning money to the bank.                                                                         
                                                                                                                                
MICHAEL   PASCHALL,   STAFF   REPRESENTATIVE   ERIC   FEIGE,                                                                    
responded that  he was  not aware of  all of  the historical                                                                    
details but ascertained  that the state had  invested in the                                                                    
bank and the  bank was initially using state  money that has                                                                    
since been repaid.                                                                                                              
                                                                                                                                
Vice-Chair Fairclough wondered if the  bank would be able to                                                                    
function if the state withdrew its permits.                                                                                     
                                                                                                                                
LELA   KLINGERT,    PRESIDENT,   COMMERCIAL    FISHING   AND                                                                    
AGRICULTURAL    BANK,   ANCHORAGE    (via   teleconference),                                                                    
understood  the question  as; if  the state  took action  to                                                                    
rescind  CFAB's privileges  as agents  to accept  permits as                                                                    
collateral  would the  consequences  be  detrimental to  the                                                                    
bank. She answered  that if the privilege  was rescinded the                                                                    
impacts on  future operations of  the bank would  be "severe                                                                    
and negative."                                                                                                                  
                                                                                                                                
Vice-Chair  Fairclough  relayed  that  the  issue  that  the                                                                    
committee was "grappling with" was  the banks wish to hire a                                                                    
lobbyist. She  elaborated that even  though CFAB  repaid its                                                                    
initial  loan  from  the  state,   the  bank  was  still  in                                                                    
operation  due to  using state  assets.  The committee  felt                                                                    
uncomfortable with  the scenario  of CFAB hiring  a lobbyist                                                                    
to  impact   legislators'  decisions.  She  felt   that  the                                                                    
scenario created  a conflict for members.  She inquired what                                                                    
a lobbyist would do for CFAB  that it could not currently do                                                                    
for itself.                                                                                                                     
                                                                                                                                
Ms.  Klingert replied  that  a lobbyist  would  be the  eye,                                                                    
ears, and  voice of CFAB  during the session.  She expounded                                                                    
that  the lobbyist  would monitor  legislation and  identify                                                                    
any issues  that affected CFAB.  The bank  rarely introduced                                                                    
its   own  legislation.   The  lobbyist   would  act   as  a                                                                    
representative of the bank so  CFAB employees would not have                                                                    
to travel to Juneau to deal with any issues that arose.                                                                         
                                                                                                                                
Vice-Chair  Fairclough  queried whether  statute  prohibited                                                                    
CFAB from hiring a governmental  affairs employee instead of                                                                    
a lobbyist.                                                                                                                     
                                                                                                                                
Ms.  Klingert  responded  that  she was  not  aware  of  any                                                                    
prohibition against hiring  a governmental affairs employee.                                                                    
She recounted  that sometime in  the 1990's,  Senator Pearce                                                                    
[1988 -  2001] introduced  legislation that  prohibited CFAB                                                                    
and other similar  entities from using state  money to lobby                                                                    
state officials.  Prior to enactment of  the legislation the                                                                    
prohibition did not exist.                                                                                                      
                                                                                                                                
Vice-Chair Fairclough  MOVED to REPORT CSHB  121(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  121(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal impact note: FN2 (CED).                                                                                                  
                                                                                                                                
2:39:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:40:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Meyer handed the gavel over to Co-Chair Kelly.