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State loan program for halibut charter operators may be tripped up by their own lawsuit
SEAFOOD.COM [Laws for the Sea] by bob Tkacz - Juneau - April 6, 2011- The cochairman of the Alaska House Finance Committee says he will propose an amendment to delay implementation of a bill creating a $9 million loan fund for halibut charter fishing businesses until a new federal lawsuit challenging a limited entry permit system for halibut charter licenses in the Alaska halibut charter fishery is resolved.
The bill, HB 121, is expected to be on today's House calendar for a final passage vote there. It must still be passed by the Senate before the legislature ends on April 17 to become law.
"To protect our money we're going to have to do that," said Rep. Bill Thomas (R-Haines), cochairman of the committee, April 5.
The group "Charter Operators of Alaska" is seeking a preliminary injunction to halt implementation of federal regulations implementing the limited entry system as part of a larger suit to abolish the limited entry system. Represented by a Florida law firm, the group claimed in an April 4 news release that the limited entry system "violates the rights of charter halibut companies that have been forced out of business by this program, and financially harms other businesses who provide ancillary services to charter halibut fishing clients."
That same day, at Thomas' request, the Finance Committee increased the funding in HB 121 for the loan program from $3 million to $9 million. The bill was introduced at the request of Gov. Sean Parnell specifically to offer low-interest loans to Alaska residents operating halibut charter fishing businesses to help them buy the newly created permits, some of which are trading at six-figure levels.
"We've seen the $80,000 to $100,000 price range," said Susan Bell, commissioner of the Dept. of Commerce, at the April 4 hearing.
The program created a variety of permits, allowing differing numbers of clients. The SouthEast Alaska Guides Organization webpage, Tuesday, showed Area 3A (Gulf of Alaska and Prince William Sound) permits for sale at $70,000 for a transferrable six-angler permits and $130,000 for a 13-person permit.
A 3C ad for a 12-person permit and custom-built aluminum boat was asking $350,000.
Two ads offered five and six-person permits in the Southeast (2C) region at $35,000, or best offer.
HB 121 caps individual loans, which are available for boat purchases, upgrades and gear as well as permits, at $100,000. Thomas noted that the $3 million capitalization amount in the governor's original bill would probably allow no more than 30 loans. "If the fund was funded at $9 million we'd be better off," he said.
The bill allows 15-year loans with interest at the federal prime rate plus two percent, but not less than six percent or more than 10.5 percent.
The bill also establishes two other, separate, revolving loan funds, also available only to Alaska residents. One is for loans up to 20 years for shellfish farm operators with interest at prime plus one percent within a range of five and nine percent. That fund is capitalized at $3 million in the bill.
The other, a "microloans" fund, which had its capitalization reduced by $1 million to $2.5 million, is available for any small business venture. Loans up to six years are limited to $35,000 for a sole proprietor and $70,000 for partnerships or other businesses. The interest rate is set at prime plus one percent between six and eight percent.
________________________________________
John Sackton, Editor And Publisher
Seafood.com News 1-781-861-1441
Email comments to jsackton@seafood.com
SEAFOOD.COM [Laws for the Sea] by bob Tkacz - Juneau - April 6, 2011- The cochairman of the Alaska House Finance Committee says he will propose an amendment to delay implementation of a bill creating a $9 million loan fund for halibut charter fishing businesses until a new federal lawsuit challenging a limited entry permit system for halibut charter licenses in the Alaska halibut charter fishery is resolved.
The bill, HB 121, is expected to be on today's House calendar for a final passage vote there. It must still be passed by the Senate before the legislature ends on April 17 to become law.
"To protect our money we're going to have to do that," said Rep. Bill Thomas (R-Haines), cochairman of the committee, April 5.
The group "Charter Operators of Alaska" is seeking a preliminary injunction to halt implementation of federal regulations implementing the limited entry system as part of a larger suit to abolish the limited entry system. Represented by a Florida law firm, the group claimed in an April 4 news release that the limited entry system "violates the rights of charter halibut companies that have been forced out of business by this program, and financially harms other businesses who provide ancillary services to charter halibut fishing clients."
That same day, at Thomas' request, the Finance Committee increased the funding in HB 121 for the loan program from $3 million to $9 million. The bill was introduced at the request of Gov. Sean Parnell specifically to offer low-interest loans to Alaska residents operating halibut charter fishing businesses to help them buy the newly created permits, some of which are trading at six-figure levels.
"We've seen the $80,000 to $100,000 price range," said Susan Bell, commissioner of the Dept. of Commerce, at the April 4 hearing.
The program created a variety of permits, allowing differing numbers of clients. The SouthEast Alaska Guides Organization webpage, Tuesday, showed Area 3A (Gulf of Alaska and Prince William Sound) permits for sale at $70,000 for a transferrable six-angler permits and $130,000 for a 13-person permit.
A 3C ad for a 12-person permit and custom-built aluminum boat was asking $350,000.
Two ads offered five and six-person permits in the Southeast (2C) region at $35,000, or best offer.
HB 121 caps individual loans, which are available for boat purchases, upgrades and gear as well as permits, at $100,000. Thomas noted that the $3 million capitalization amount in the governor's original bill would probably allow no more than 30 loans. "If the fund was funded at $9 million we'd be better off," he said.
The bill allows 15-year loans with interest at the federal prime rate plus two percent, but not less than six percent or more than 10.5 percent.
The bill also establishes two other, separate, revolving loan funds, also available only to Alaska residents. One is for loans up to 20 years for shellfish farm operators with interest at prime plus one percent within a range of five and nine percent. That fund is capitalized at $3 million in the bill.
The other, a "microloans" fund, which had its capitalization reduced by $1 million to $2.5 million, is available for any small business venture. Loans up to six years are limited to $35,000 for a sole proprietor and $70,000 for partnerships or other businesses. The interest rate is set at prime plus one percent between six and eight percent.
________________________________________
John Sackton, Editor And Publisher
Seafood.com News 1-781-861-1441
Email comments to jsackton@seafood.com
