Legislature(2017 - 2018)BELTZ 105 (TSBldg)
03/16/2017 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB64 | |
| SB71 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 71 | TELECONFERENCED | |
| *+ | SB 75 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 64 | TELECONFERENCED | |
| += | SB 79 | TELECONFERENCED | |
SB 71-COMMERCIAL FISHING LOANS
3:20:06 PM
CHAIR COSTELLO announced the consideration of SB 71 and noted
that this was the first hearing.
3:20:43 PM
At ease
3:21:01 PM
CHAIR COSTELLO reconvened the meeting and asked Mr. Lamkin to
introduce the bill.
3:21:20 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, introduced SB 71 speaking to the following sponsor
statement:
Senate Bill 71 raises the maximum balance of sub-
category loans an Alaskan resident may borrow from the
state to support their activities in commercial
fishing in Alaska.
The total balance allowed to be borrowed remains at
$400,000, but the bill allows borrowers more flexible
options to reach the $400,000 capped balance within
the various loan sub-categories for which they
qualify.
To clarify the effect of this bill, we must look to
the loan categories described in a previous section of
Alaska law, AS 16.10.310(a)(1)(a) through (a)(1)(f).
The changes are summarized as follows:
Subsection A loans are intended for more experienced
fishermen who hold current crewmember or commercial
fishing permits, and who wish to purchase entry
permits, upgrade existing vessels or gear to improve
seafood product quality, or to improve fuel
efficiency. The current Subsection A loan balance is
capped at $300,000. This bill raises that cap to
$400,000.
SENATOR HUGHES observed that, should the bill pass, fewer people
will be able to get a loan.
MS. LAMKIN replied there is plenty of money to go around.
He continued to review the sponsor statement.
Subsection B loans are intended for repairing,
upgrading, or purchasing vessels, and buying entry
permits. Applicants must have been denied other
financing options and demonstrate a local economic
dependence on commercial fishing for their livelihood.
Subsection B loan balances are currently capped at
$200,000 for buying permits or gear, and $100,000 for
vessel purchase, repair, etc. This bill caps all
Subsection B loans to $200,000.
Subsection C loans are intended for those wishing to
buy Individual Fishing Quotas (IFQs) for halibut or
sablefish. Applicants must have been denied other
financing options. Subsection C loan balances are
currently capped at $300,000. SB 71 raises Subsection
C loans maximum to $400,000.
Subsection F loans are for Alaska residents wishing
upgrade existing tender vessels and gear in order to
improve the quality of Alaska seafood products.
Section F loans are currently capped at $300,000. SB
71 raises Subsection F loans maximum to $400,000.
To reiterate, currently the most any Alaskan can
borrow from the Alaska Commercial Fishing Loan Fund is
$400,000. SB 71 does not change that policy, but
rather only changes how a person may reach the
$400,000 cap. It allows Alaskans to borrow more for an
individual permit, engine, boat, gear, IFQ, etc., but
still never more than $400,000 total.
It is the policy of the state, under AS 16.10.300 -
16.10.370, to promote the rehabilitation of the
state's fisheries, the development of a predominantly
resident fishery, and the continued maintenance of
commercial fishing gear and vessels throughout the
state by means of long-term low interest loans. Senate
Bill 71 is an effort to modernize that policy. Thank
you for your consideration.
3:30:46 PM
SENATOR STEVENS, speaking as the sponsor of SB 71, related that
this is part of the long-term solution to help young Alaskans
get into the fishing industry. Right now, it is very difficult
because the cost of boats and permits are astronomically high.
Mr. Lamkin made it very clear that the cap is not raised; "it
just spreads it around a little bit differently."
CHAIR COSTELLO thanked Mr. Lamkin and Senator Stevens and held
SB 71 in committee for further consideration.