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  Evaluating  Alaska  Seafood Industry,  presented  CSSB
(FIN).   He said that  the committee has heard  the essentials                                                               
of the  bill.  It builds  on a recommendation from  Governor Mike                                                               
Dunleavy  last  year  to  address the  financial  crisis  in  the                                                               
fishing  industry  by  lowering   the  interest  rates  with  the                                                               
commercial  fishing  revolving loan  fund.    He said  that  CSSB
(FIN)   would  allow   the  Alaska   Commercial  Fishing   and                                                               
Agriculture  Bank  (CFAB)  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 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 only  be made by                                                               
the states 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  House Committee                                                               
Substitute.                                                                                                                     
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON   moved  to   adopt  the   proposed  House                                                               
Committee Substitute (HCS) to 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 Evaluating  Alaska Seafood  Industry.   He                                                               
said  that Version  Q would  keep  language that  was added  CSSB
(FIN),  which would  restrain  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 Evaluating  Alaska 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, the Version Q would  largely return CSSB 156(FIN) to the                                                               
language and intent of the  aforementioned HB 199.  One exception                                                               
is the  provision that would  limit loans  used 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  to CSSB  156(FIN),                                                               
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.