Legislature(2005 - 2006)CAPITOL 124
03/30/2005 08:30 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB230 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 230 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 30, 2005
8:36 a.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Bill Thomas, Co-Chair
Representative Jim Elkins
Representative Woodie Salmon
Representative Peggy Wilson
MEMBERS ABSENT
Representative John Harris
Representative Mary Kapsner
COMMITTEE CALENDAR
HOUSE BILL NO. 230
"An Act authorizing the making of loans for upgrade of
commercial fishing tender vessels and gear."
- MOVED HB 230 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 230
SHORT TITLE: LOANS FOR COMMERCIAL FISHING TENDERS
SPONSOR(s): REPRESENTATIVE(s) THOMAS
03/22/05 (H) READ THE FIRST TIME - REFERRALS
03/22/05 (H) FSH, RES
03/30/05 (H) FSH AT 8:30 AM CAPITOL 124
WITNESS REGISTER
IAN FISK, Staff
to Representative Bill Thomas
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 230 on behalf of
Representative Thomas, sponsor.
JASON KOONTZ
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 230.
JERRY McCUNE
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 230.
KELLEY SHARP, Lending Branch Manager
Division of Investments
Alaska Department of Commerce, Community, and Economic
Development
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 230.
ACTION NARRATIVE
CO-CHAIR BILL THOMAS called the House Special Committee on
Fisheries meeting to order at 8:36:51 AM. Representatives
LeDoux, Thomas, Wilson, Salmon, and Elkins were present at the
call to order.
HB 230-LOANS FOR COMMERCIAL FISHING TENDERS
CO-CHAIR THOMAS announced that the only order of business would
be HOUSE BILL NO. 230, "An Act authorizing the making of loans
for upgrade of commercial fishing tender vessels and gear."
8:37:10 AM
IAN FISK, Staff to Representative Bill Thomas, Alaska State
Legislature, presented HB 230 on behalf of Representative
Thomas, sponsor. He noted that this bill is a companion bill to
SB 145, sponsored by Senator Bert Stedman, regarding the
Commercial Fishing Revolving Loan Fund. He explained that this
loan fund is managed by the Division of Investments in the
Alaska Department of Commerce, Community, and Economic
Development. The loans are given to individual fishermen and
communities for vessels, gear, limited entry permits, individual
fishing quotas (IFQs), and product quality improvement. He
clarified that product quality improvement loans are for
[upgrading or purchasing] freezing systems, Refrigerated Sea
Water (RSW) systems, and any other equipment that can be used to
improve the quality of the fish. Currently, he said, "Tenders,
who are not considered fishermen specifically in law, are not
eligible for these loans. So this bill simply makes them
eligible." He pointed out that in addition to individual
tenders, companies would also be eligible for the loans under HB
230.
8:39:47 AM
JASON KOONTZ testified as a commercial fisherman and a tender
owner in support of HB 230. He commented that currently it is
very difficult for tender operators to obtains loans. He stated
that he has used the Commercial Fishing Revolving Loan Fund to
obtain fishing permits and IFQs, and he feels that it is a great
program. He opined that the $300,000 loan limit is fairly low
for most tenders; most tenders sell for about $350,000-$400,000.
8:41:38 AM
JERRY McCUNE testified in support of HB 230. He stated that the
bill was designed so that tendermen could get a $300,000 loan to
upgrade an existing vessel. He commented, "There's a lot of
[Alaska] residents that are just tendermen; they don't do
anything else but tender all around the state all year. So I
think this [bill] will be a great thing to be able to ...
upgrade their existing vessels."
8:42:51 AM
REPRESENTATIVE WILSON asked if $300,000 would be a large enough
loan for a tenderman.
MR. McCUNE replied that it is set in regulation that there is a
$300,000 loan cap for upgrades on existing vessels. He said,
"You can't buy a vessel with $300,000."
8:44:39 AM
CO-CHAIR LEDOUX asked if a commercial fisherman can purchase a
fishing vessel under this loan.
MR. McCUNE responded negatively, and pointed out that [the bill]
says that the loan is for existing vessels.
CO-CHAIR LEDOUX clarified that the tenders can only get loans
for upgrades, but commented, "It looks like ... you could
actually purchase a fishing vessel." She asked what the
rationale was for limiting the loan for upgrade use rather than
for tender vessel purchase.
MR. McCUNE replied that the tendermen he spoke with wanted to
have access to the loan in order to upgrade their vessels, and,
he said, "Nobody talked to me about purchasing a vessel, and
that would take a whole lot more money."
8:46:41 AM
CO-CHAIR LEDOUX reiterated that under the original statute,
there is a $300,000 cap. She asked if an amendment could be
made to HB 230 to allow for the purchase of a tender as long as
it remains under the $300,000 cap.
MR. McCUNE stated that if a person has a limited entry permit,
he/she is eligible for any category of the loan. However, he
said, "A lot of tendermen that I talk to don't own permits ...
or have any way to get into the loan program, so what we did was
create this category where they could come in and ... upgrade
their vessels...."
CO-CHAIR THOMAS, in response to Co-Chair LeDoux's question,
replied, "If you have the collateral, that's the main thing. ...
If you have collateral you can buy a vessel.... I don't think
there's restrictions if you can afford to buy a vessel."
8:48:32 AM
KELLEY SHARP, Lending Branch Manager, Division of Investments,
Alaska Department of Commerce, Community, and Economic
Development, clarified that the loan limit under [AS
16.10.310(a)(1)(B)], for the purchase of vessels, is currently
$100,000, and the loan limit under [AS 16.10.310(a)(1)(A)], for
product quality improvements to a vessel, is $300,000.
REPRESENTATIVE WILSON remarked that on page 2, lines 3-4, of the
bill, there is reference to, "for the repair, restoration, or
upgrading of existing vessels".
CO-CHAIR LEDOUX pointed out that on page 2, line 5, the bill
also states that the loans are for the "purchase of vessels".
MR. SHARP reiterated that [subparagraph (B) on page 2, lines 3-
7] is the part that authorizes the purchase of vessels and is
capped at $100,000.
8:50:36 AM
REPRESENTATIVE SALMON asked where the loan money originates.
MR. SHARP replied that the money would come out of the
Commercial Fishing Revolving Loan Fund. He noted that the fund
is completely self-supporting, and there haven't been any
general fund appropriations to the fund since 1985.
8:51:03 AM
REPRESENTATIVE WILSON pointed out, "Last year we took money from
the fund and put it in the general fund, and I was concerned
that they were going to be taking too much and it would deplete
the fund. ... Did they do that again this year?"
MR. SHARP responded that there was about $2 million taken out
last year, but he does not know what the plan is for this year.
He noted, "At some point, if that continues, it will obviously
eat into the fund. I certainly wouldn't characterize that as
being right around the corner, but eventually that would become
an issue."
MR. McCUNE commented that he hadn't seen any plans for [the
removal of funds from the Commercial Fishing Revolving Loan
Fund] this year. He stated, "This fund paid for itself a long
time ago, and we want to make sure there's enough existing money
in there for fishermen to be able to use it."
8:52:13 AM
REPRESENTATIVE WILSON moved to report HB 230 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, HB 230 was reported from the
House Special Committee on Fisheries.
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 8:52:39
AM.
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