05/06/2025 09:00 AM Senate FINANCE

SENATE BILL NO. 156                                                                                                           
                                                                                                                                
     "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; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
10:05:22 AM                                                                                                                   
                                                                                                                                
SENATOR JESSE KIEHL, SPONSOR, introduced the legislation.                                                                       
                                                                                                                                
10:10:40 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman wondered why there  was not a repeal to the                                                                    
previous legislation.                                                                                                           
                                                                                                                                
Senator  Kiehl stated  that there  was headwind  against the                                                                    
commercial  fishing  industry,  so  there  was  interest  in                                                                    
refinancing existing loans.                                                                                                     
                                                                                                                                
Co-Chair Stedman queried the commercial banking industry.                                                                       
                                                                                                                                
Senator  Kiehl replied  that  there was  a  letter from  the                                                                    
bankers,  who were  consistent in  their  philosophy on  the                                                                    
state's participation of lending.                                                                                               
                                                                                                                                
10:13:31 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  felt  that   the  state  should  consider                                                                    
alternative  options  to   maintain  partnerships  with  the                                                                    
banking industry.                                                                                                               
                                                                                                                                
Senator  Kaufman asked  about Alaska  Industrial Development                                                                    
and  Export Authority  (AIDEA), and  whether they  would not                                                                    
engage in the lending.                                                                                                          
                                                                                                                                
Senator  Kiehl replied  that the  difference was  the direct                                                                    
connection  to  the  Alaska  businesses  in  the  commercial                                                                    
fishing  industry  by  using   a  limited  entry  permit  as                                                                    
collateral.                                                                                                                     
                                                                                                                                
10:18:58 AM                                                                                                                   
                                                                                                                                
SHARON LECHNER, CHIEF  EXECUTIVE OFFICER, COMMERCIAL FISHING                                                                    
AND  AGRICULTURE  BANK,  spoke  to  the  importance  of  the                                                                    
interest rate to the industry and local communities.                                                                            
                                                                                                                                
Co-Chair Stedman asked whether there was a two-year window.                                                                     
                                                                                                                                
Ms. Lechner replied that there  was not an expectation to go                                                                    
broke, because there was significant equity.                                                                                    
                                                                                                                                
10:24:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman OPENED public testimony.                                                                                       
                                                                                                                                
10:24:48 AM                                                                                                                   
                                                                                                                                
TODD  MACMANUS, ALASKA  BANKERS ASSOCIATION,  KETCHIKAN (via                                                                    
teleconference), opposed the bill.                                                                                              
                                                                                                                                
Co-Chair Hoffman CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair Stedman reviewed the fiscal notes.                                                                                     
                                                                                                                                
Senator Kiehl thanked the committee.                                                                                            
                                                                                                                                
SB  156  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.