03/22/2010 03:00 PM House FISHERIES

               HB 389-COMMERCIAL FISHING LOAN ACT                                                                           
                                                                                                                                
3:09:16 PM                                                                                                                    
                                                                                                                                
CHAIR EDGMON announced that the  first order of business would be                                                               
HOUSE BILL NO. 389, "An Act  relating to loans made to commercial                                                               
fishermen  under  the  Commercial  Fishing Loan  Act  for  energy                                                               
efficiency upgrades; and providing for an effective date."                                                                      
                                                                                                                                
3:09:48 PM                                                                                                                    
                                                                                                                                
KATIE KOESTER, Staff to Representative  Paul Seaton, Alaska State                                                               
Legislature, informed  the committee  HB 389 allows  the Division                                                               
of  Investments, Department  of Commerce,  Community, &  Economic                                                               
Development,  to  offer  up  to a  two-point  rate  reduction  to                                                               
borrowers  of the  product quality  improvement  and engine  fuel                                                               
efficiency  replacement  loan   programs,  under  the  commercial                                                               
fishing loan  program, if the  borrowers purchase a  product that                                                               
is manufactured in  Alaska.  In addition, at least  50 percent of                                                               
the  loan  proceeds  need  to  be spent  on  a  product  that  is                                                               
manufactured  or  produced  in  the  state.   In  response  to  a                                                               
question  posed  at  a  previous meeting,  she  stated  that  the                                                               
definition of  "produced or manufactured  in Alaska,"  as written                                                               
in  the bill,  is  sufficient for  the  department to  promulgate                                                               
regulations.  She noted that  the division director advised there                                                               
is  sufficient  authority  because the  department  "pulled  this                                                               
language from  procurement statutes and procurement  has already,                                                               
has  a set  of  regulations that  they  have generated  regarding                                                               
Alaska  manufacture."     Ms.   Koehler  acknowledged   that  the                                                               
regulations would be  subject to public comment  and the standard                                                               
regulatory process.   In response to a  second question regarding                                                               
what  would be  eligible as  Alaskan manufacturing,  she directed                                                               
attention  to the  written response  from  the sponsor's  office,                                                               
dated  3/18/10,  found in  the  committee  packet.   Ms.  Koehler                                                               
pointed out  that the response includes  two scenarios indicating                                                               
how  the  department  would  determine   whether  a  product  was                                                               
manufactured in Alaska, including the assembly of a kit.                                                                        
                                                                                                                                
3:12:28 PM                                                                                                                    
                                                                                                                                
CHAIR EDGMON opened public testimony.                                                                                           
                                                                                                                                
3:12:46 PM                                                                                                                    
                                                                                                                                
JERRY SCHOLES, Owner, Coastal Refrigeration,  stated that he is a                                                               
small manufacturer  of seawater  systems, and expressed  his hope                                                               
that the bill will generate  more small business within the state                                                               
by a  reduction in the  interest rate for people  who manufacture                                                               
here.                                                                                                                           
                                                                                                                                
3:13:46 PM                                                                                                                    
                                                                                                                                
CHAIR EDGMON closed public testimony.                                                                                           
                                                                                                                                
3:13:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  moved  to report  CSHB  389,  26-LS1441\P,                                                               
Kane, 3/1/10,  out of  committee with  individual recommendations                                                               
and the accompanying fiscal notes.                                                                                              
                                                                                                                                
There being  no objection,  CSHB 389(FSH)  was reported  from the                                                               
House Special Committee on Fisheries.                                                                                           
                                                                                                                                
The committee took an at-ease from 3:13 p.m. to 3:15 p.m.                                                                       
                                                                                                                                
3:15:50 PM