05/18/2025 01:00 PM House FISHERIES

         SB 156-AK COMMERCIAL FISHING & AG BANK; LOANS                                                                      
                                                                                                                                
2:19:36 PM                                                                                                                    
                                                                                                                                
CHAIR STUTES announced  that the only order of  business would be                                                               
CS  FOR  SENATE  BILL  NO.  156(FIN), "An  Act  relating  to  the                                                               
Department  of  Commerce,  Community, and  Economic  Development;                                                               
relating to  the Alaska Commercial Fishing  and Agriculture Bank;                                                               
relating to certain  loans made by the  Alaska Commercial Fishing                                                               
and  Agriculture Bank;  relating  to  certain commercial  fishing                                                               
loans; providing for an effective  date by amending the effective                                                               
date of sec. 4, ch. 25,  SLA 2024; and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
CHAIR STUTES  noted that there  was a House  Committee Substitute                                                               
(HCS) for CSSB 156(FIN).                                                                                                        
                                                                                                                                
2:20:24 PM                                                                                                                    
                                                                                                                                
SENATOR JESSE KIEHL,  Alaska State Legislature, on  behalf of the                                                               
bill sponsor,  Senate Rules by  request of the  Joint Legislative                                                               
Taskforce  on  Evaluating  Alaska's Seafood  Industry,  presented                                                               
CSSB  156(FIN).    He  said  that the  committee  has  heard  the                                                               
essentials  of the  bill.   It  builds on  a recommendation  from                                                               
Governor   Mike   Dunleavy's   administration   and   the   Joint                                                               
Legislative Task  Force on  Evaluating Alaska's  Seafood Industry                                                               
to  address  the financial  crisis  in  the fishing  industry  by                                                               
temporarily  lowering   the  interest   rates  for   the  state's                                                               
commercial  fishing  revolving loan  fund.    He said  that  CSSB
(FIN)   would  allow   the  Alaska   Commercial  Fishing   and                                                               
Agriculture Bank (CFAB), which was  created in statute but is not                                                               
a  state entity,  to match  the  loan rates  with the  commercial                                                               
fishing revolving  loan fund.   He said  that the mechanism  is a                                                               
one-time infusion of capital that  would be returned to the State                                                               
of Alaska and can be used  only for commercial fishing loans from                                                               
CFAB to Alaska residents.                                                                                                       
                                                                                                                                
SENATOR  KIEHL said  that the  Senate version  of the  bill would                                                               
make  two changes  from what  the House  considered [in  HB 199].                                                               
One change is  to limit CFAB's use of this  capital to loans that                                                               
are  collateralized  in  whole  or  in-part  by  a  limited-entry                                                               
permit.  He  said that these are  loans that can be  made only by                                                               
the state's commercial fishing revolving  loan fund or CFAB.  The                                                               
second  change  would  shorten  the time  period  on  these  low-                                                               
interest rates by  a year; instead of an availability  to July 1,                                                               
2027, they would be available until July 1, 2026.                                                                               
                                                                                                                                
2:22:40 PM                                                                                                                    
                                                                                                                                
CHAIR  STUTES  asked   for  a  motion  to   adopt  the  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON   moved  to   adopt  the   proposed  House                                                               
Committee  Substitute  (HCS)  for   CSSB  156(FIN),  Version  34-                                                               
LS0857\Q, Bullard, 5/17/25,  as a working document.   There being                                                               
no objection, Version Q was before the committee.                                                                               
                                                                                                                                
CHAIR STUTES  asked her staff  to present the  changes associated                                                               
with Version Q.                                                                                                                 
                                                                                                                                
2:23:38 PM                                                                                                                    
                                                                                                                                
KYLE NEUMANN,  Staff, Representative Louise Stutes,  Alaska State                                                               
Legislature,  on  behalf  of  the   House  Special  Committee  on                                                               
Fisheries, explained the changes associated  with the HCS to CSSB
(FIN), Version  Q.  He  related that the  proposed legislation                                                               
is a  companion bill to  HB 199,  which had recently  been passed                                                               
from the  committee.  He  said that HB  199 was sponsored  by the                                                               
House  Special Committee  on Fisheries  by request  of the  Joint                                                               
Legislative  Taskforce on  Evaluating Alaska's  Seafood Industry.                                                               
He said  that Version Q would  keep language that was  added CSSB
(FIN),  which would  constrain the  eligibility of  loans that                                                               
could  made  or  refinanced  by  CFAB to  only  those  which  are                                                               
secured, at  least in-part, by  a limited-entry permit.   He said                                                               
Version Q would  remove the section proposed  under CSSB 156(FIN)                                                               
that  would  shorten   the  amount  of  time   that  the  state's                                                               
commercial fishing  revolving loan  fund could  offer loans  at a                                                               
reduced interest rate.                                                                                                          
                                                                                                                                
MR. NEUMANN noted that in  2024, the legislature had passed House                                                               
Bill 273  based on  the recommendation  by the  Joint Legislative                                                               
Taskforce  on   Evaluating  Alaska's  Seafood  Industry.     This                                                               
temporarily reduced  interest rates of  the fund to  5.25 percent                                                               
until 2027.   He said  although House  Bill 273 has  been largely                                                               
successful  at  providing  tangible   relief  to  the  commercial                                                               
fishing industry, cutting  down the length of time  the relief is                                                               
offered  to the  fishing industry  is  counter to  the goals  and                                                               
recommendations  of the  taskforce and  counterproductive to  the                                                               
industry.    In summary,  Version  Q  largely would  return  CSSB
(FIN)  to the  language and  intent of  the aforementioned  HB
.  One exception is the  provision that would limit loans made                                                               
or  refinanced by  CFAB to  those  that are  collateralized by  a                                                               
limited-entry permit.                                                                                                           
                                                                                                                                
2:26:29 PM                                                                                                                    
                                                                                                                                
CHAIR STUTES entertained a motion.                                                                                              
                                                                                                                                
2:26:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON moved  to report HCS CSSB  156, Version 34-                                                               
LS0857\Q,  Bullard, 5/17/25,  out  of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  HCS CSSB  156(FSH) was reported  out of  the House                                                               
Special Committee on Fisheries.