SB 387-COMMERCIAL FISHING LOANS FOR QUOTA SHARES  CHAIR CON BUNDE announced SB 387 to be up for consideration. MR. GREG WINEGAR, Director, Division of Investments, Department of Community & Economic Development (DCED), said he appreciated the committee hearing this bill. It is straightforward and is a very small change to the Commercial Fishing Revolving Loan Fund. It allows a new type of quota shareowner to qualify for loans, which are called community quota entities. These entities are being created as a result of changes the National Marine Fisheries Service (NMFS) is making in the quota share program. Essentially, 42 smaller Gulf communities will be able to form non- profit corporations, go out in the marketplace and purchase quota shares and lease them back to citizens within those particular communities. The goal is to try to improve the economic viability of these communities through local ownership of fishing privileges. The new federal rule is expected to take place sometime in May. It's not in effect yet. MR. WINEGAR said this would be a very small change to the loan program and that he can already do this for individuals. The loan criteria, such as interest rates and down payments, would be the same. There is plenty of funding. This fund is self- sufficient and hasn't had any general funds for many years....It will bring the loan program in line with what NMFS is doing with the quota share program. It is consistent with the mission of the Commercial Revolving Loan Fund and, most importantly, it is going to provide these loans to communities with a tool they can use to try and generate some economic activity. Many of them have lost a lot of quota share since inception of the program in 1995. SENATOR GARY STEVENS said he heard about this program in another committee and thinks it's an excellent idea. It makes the smaller communities more economically viable and doesn't force anyone to sell permits. MR. WINEGAR acknowledged that those are two good points. CHAIR BUNDE said he was distributing testimony in support of SB 392 to the committee from Don Beamer and Gordon Jackson. SENATOR GARY STEVENS moved to pass SB 392 from committee with attached fiscal note and individual recommendations. Senators Ralph Seekins, Gary Stevens and Chair Con Bunde voted yea; and SB 392 moved from committee.