Legislature(2005 - 2006)SENATE FINANCE 532
05/01/2005 01:00 PM Senate FINANCE
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 24 | TELECONFERENCED | |
| += | SB 156 | TELECONFERENCED | |
| += | HB 182 | TELECONFERENCED | |
| += | HB 91 | TELECONFERENCED | |
| += | HB 119 | TELECONFERENCED | |
| + | HB 136 | TELECONFERENCED | |
| + | SB 135 | TELECONFERENCED | |
| += | SB 108 | TELECONFERENCED | |
| + | SB 121 | TELECONFERENCED | |
| + | SB 122 | TELECONFERENCED | |
| + | HB 35 | TELECONFERENCED | |
| + | HB 75 | TELECONFERENCED | |
| + | HB 132 | TELECONFERENCED | |
| + | HB 156 | TELECONFERENCED | |
| + | HB 230 | TELECONFERENCED | |
| += | SB 46 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 19 | ||
| = | HB 15 | ||
HOUSE BILL NO. 230
"An Act authorizing the making of loans for upgrade of
commercial fishing tender vessels and gear."
This was the first hearing for this bill in the Senate Finance
Committee.
IAN FISK, Staff to Representative Bill Thomas, the bill's sponsor,
informed the Committee that this bill would address "commercial
fishing tenders and their ability to access the Commercial Fishing
Revolving Loan fund". Tenders could be likened to truckers, as
their job is to receive fish from the harvesters on the fishing
grounds and transport them to the processing plants on shore. "The
Revolving Loan Fund is a mechanism that the State used to promote
the State ownership of fishing permits and vessels." The problem
with the Revolving Loan Fund is that tenders "are not considered
fisherman" and as such are not eligible for loans from the fund.
Co-Chair Green asked whether a tender was a person or a vessel.
Mr. Fisk responded that a tender is a vessel that is operated by a
tenderman.
Mr. Fisk continued that the bill would allow tenders to be eligible
for the Commercial Fishing Revolving Loan fund, specifically the
Product Quality Improvement Loan component of the Fund. The purpose
of that component is to provide funds to fisherman to add equipment
to their vessels that would assist in maintaining "the quality of
the fish after it is harvested". Provided tenders the ability to
acquire loans in this regard would further the State's endeavor to
maintain the quality and value of its fish and further State
residents ownership abilities.
Co-Chair Green asked the history of the bill.
Mr. Fisk communicated that the Alaska Independent Tenderman's
Association brought this issue to Representative Thomas' attention.
He noted that this is companion legislation to SB 145-LOANS FOR
COMMERCIAL FISHING TENDERS, which was sponsored by Senator Stedman.
3:57:28 PM
Co-Chair Wilken asked the reason for furthering this endeavor
through the State's Commercial Fishing Revolving Loan Fund when
options are available through the privately owned Alaska Commercial
Fishing and Agriculture Bank (CFAB).
Mr. Fisk expressed that the issue of whether "CFAB was truly an
independent private entity" would be debatable. The Division of
Investments, which is the State division that manages the
Commercial Fishing Revolving Loan Fund, could provide better terms
to the industry. "They are an excellent organization to work with."
Due to the inherent risk involved, it is "often difficult" for
people in the fishing industry to find private financing. "That is
the reason that the Revolving loan fund was created to begin with."
This bill would "correct an inconsistency in that program".
Co-Chair Wilken asked whether "the credit worthiness requirements"
were the same for both the State and CFAB.
Mr. Fisk responded that the Division of investments would best
answer that question. Continuing, however, he shared that "the
Revolving Loan Fund has been very successful" and has not utilized
general funds since its inception in 1985. It has more than
compensated the initial capitalization and it essentially "operates
independently". The Fund provides the entirety of the Division's
operating expenses, and "is an excellent example of a program that
promotes Alaskan ownership … in an independent manner, in that it
does not require Legislative assistance to operate each year. The
Fund has also supported other programs.
3:59:40 PM
Co-Chair Wilken understood the answer to be that the State provides
better terms. The question remains as to whether its credit
worthiness terms differ from those offered elsewhere.
Mr. Fisk responded that the Division of Investments conducts a
thorough scrutiny of the applicants. "Credit worthiness is
definitely" a factor. "The fact that the program is as successful
as it is would testify to the Division's ability to scrutinize
applications and to determine credit worthiness."
Co-Chair Wilken voiced being okay with that; however, he continued
to voice concern about the State competing with CFAB for business.
4:01:18 PM
Mr. Fisk responded that the Commercial Fishing Revolving Loan Fund
was established after the Limited Entry Act with the intent of
ensuring that Alaskans had access to the fisheries. CFAB was
created following that. He had no knowledge regarding the inception
of CFAB. Nonetheless, both entities "are quasi private". The
Division of Investments is the more "popular" of the two programs,
within the industry.
Co-Chair Green ordered the bill HELD in Committee in order to
further address Co-Chair Wilken's questions.
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