04/18/1996 02:20 PM Senate L&C

                                                                               
        HB 284 AK COMMERCIAL FISHING & AGRICULTURE BANK                       
                                                                              
 CHAIRMAN KELLY called the Senate Labor and Commerce Committee                 
 meeting to order at 2:20 p.m. and announced  HB 284  to be up for             
 consideration.                                                                
                                                                               
 ED CRANE, CEO, Commercial Fishing and Agriculture Bank, said that             
 HB 284 recognizes changes which have taken place in the economics             
 of fishing since CFAB was created 18 years ago.  It also deals with           
 some voids and inconsistencies in the original statute as it                  
 relates to laws relating to creditors.  It deals with an anomaly              
 that appears in existing statute which provides for CFAB's                    
 liquidation should CFAB not retire all the State's capital, but on            
 the other hand in another part of an existing statute it says that            
 when CFAB does retire all of the State's capital the statute lapses           
 which means there is no more CFAB.                                            
                                                                               
 MR. CRANE stressed that the reason for the 18 pages is because the            
 statute spells out in extreme detail how CFAB should operate so               
 there is very specific language.                                              
 SENATOR KELLY said Division of Banking and Securities had some                
 concerns with this bill, but no real problems.  They will continue            
 to audit CFAB on an annual basis.                                             
                                                                               
 SENATOR TORGERSON moved to pass CSHB 284 from committee with                  
 individual recommendations.  There were no objections and it was so           
 ordered.