CS FOR SENATE BILL NO. 266(RES) "An Act authorizing the commissioner of community and economic development to refinance and extend the term of a fishery enhancement loan." This was the first hearing for this bill in the Senate Finance Committee. SENATOR BEN STEVENS, sponsor of the bill, informed the Committee this bill would provide the Commissioner of Department of Community and Economic Development the ability to refinance loans made by the Fisheries Enhancement Revolving Loan Fund, and "extend the term of a loan when justified." He continued that the Department would be required "to submit an annual report to the Legislature summarizing the commissioner's decisions during the prior calendar year to approve or deny requests to extend loans." Senator Stevens stressed, "there is no forgiveness of principle or interest allowed under this legislation, and all payments are made directly to the loan fund." DAVE COBB, Business Manager for the Valdez Fisheries Development Association (VFDA) testified via teleconference from Valdez, voicing strong support for this bill; however, he expressed this is "just one of many changes that must be made in Alaska if the commercial fishing industry is to survive." He commented that the hatchery program in Alaska has been successful, and that every opportunity to make hatcheries more efficient and more economical makes "good business sense." He warned that the "competitive playing field" for Alaska fisheries has changed dramatically, and all industries must adapt to survive in the "competitive global market." He reiterated "this bill makes good business sense and will have no impact on general fund dollars." SUE ASPLUND, Executive Director, Cordova District Fishermen's United (CDFU), testified via teleconference from Cordova, and detailed the positive economic impact hatcheries have in the Prince William Sound area. She stressed that this bill would result in the immediate ability of Hatcheries to produce more fish, which "means more fish into the nets of commercial fishermen as well as sport fishermen." She asked the Committee for their support of this bill. GREG WINEGAR, Director, Division of Investments, Department of Community and Economic Development, stated this bill would provide aquaculture associations an opportunity to refinance existing loans to take advantage of lower interest rates. He stated it is important to note this legislation would not "adversely impact" the integrity of the Fisheries Enhancement Revolving Loan Fund, would improve hatcheries financial picture, and would have no negative impact on the Department. JON CARTER, Director, Douglas Island Pink and Chum Hatchery (DIPAC) testified in support of this bill. He cited the positive impacts hatcheries have on fisheries and communities, and that this bill "simply allows hatcheries to do good business" by offering them the opportunity to refinance at rates lower than the current nine percent. He stated that enabling hatcheries to remain strong and healthy would result in a positive impact on the general fund from increased revenue generated from State taxes on commercial fish harvesting. CARL ROSIER, President of the Alaska Outdoor Council, testified in support of the bill. He stressed the positive impact hatcheries have on recreational fishermen, and stated refinancing of hatcheries is "good business for the State of Alaska." AT EASE 9:43 AM / 9:57AM Senator Ward made a motion to move SB 266 (RES) 22-LS1216\T from Committee with accompanying zero fiscal note from the Department of Community and Economic Development. There were no objections, and the bill MOVED from Committee.