05/09/2004 11:13 AM House FIN

SENATE BILL NO. 387                                                                                                           
                                                                                                                                
     An  Act authorizing  the  making of  certain  commercial                                                                   
     fishing loans  to eligible community quota  entities for                                                                   
     the  purchase  of  certain  fishing  quota  shares;  and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
GREG WINEGAR,  DIRECTOR, DIVISION OF INVESTMENTS,  DEPARTMENT                                                                   
OF  COMMUNITY   &  ECONOMIC  DEVELOPMENT,  stated   that  the                                                                   
legislation  would authorize  loans  to federally  designated                                                                   
community quota entities authorized  by federal regulation to                                                                   
purchase and hold  certain fishing quota shares  and to lease                                                                   
the resultant  individual fishing  quota shares to  community                                                                   
residents.                                                                                                                      
                                                                                                                                
The  federal   government  is  currently   proposing  federal                                                                   
regulations  that   if  adopted,  would  amend   the  federal                                                                   
individual fishing  quota (IFQ)  program.  The  definition of                                                                   
an  eligible quota  shareholder  would  be revised  to  allow                                                                   
specific communities in the Gulf  of Alaska to purchase quota                                                                   
shares for  halibut and sablefish  fisheries.   The community                                                                   
quota  entity may  then hold the  shares for  lease to  their                                                                   
community  residents.    Quota  shares and  loans  for  their                                                                   
purchase under the Commercial  Fishing Loan Act are presently                                                                   
limited to individuals.                                                                                                         
                                                                                                                                
Mr. Winegar  noted that the purpose  of the amendment  was to                                                                   
improve the  economic viability of those  communities through                                                                   
local ownership  of fishing  privileges.   Since the  initial                                                                   
allocation of  quota shares, all  but two of the  42 eligible                                                                   
communities  have experienced  a significant  decline in  the                                                                   
number of  quota shares  held by residents.   The  bill would                                                                   
provide  a financing  mechanism  that could  be  used by  the                                                                   
communities to help reverse the trend.                                                                                          
                                                                                                                                
Co-Chair  Harris MOVED  to repot  SB 387am  out of  Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal note.  There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
SB  387am was  reported out  of  Committee with  a "do  pass"                                                                   
recommendation  and with zero  note #1  by the Department  of                                                                   
Community  & Economic  Development and  zero note  #2 by  the                                                                   
Department of Fish & Game.