HCS CSSB 132(RES): "An Act relating to loans for the purchase of individual fishery quota shares; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 132(RES) 01 "An Act relating to loans for the purchase of individual fishery quota shares; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. PURPOSE AND LEGISLATIVE INTENT. It is the purpose of this Act to 05 provide an opportunity for resident fishermen to participate in the sablefish and halibut 06 fisheries and other fisheries in and off Alaska by authorizing loans for the purchase of quota 07 shares for those fisheries. It is the intent of the legislature that the authority granted by this 08 Act be implemented without adversely affecting the availability of funds in the commercial 09 fishing revolving loan fund for loans to purchase entry permits and to purchase, repair, restore, 10 or upgrade vessels and gear. 11 * Sec. 2. AS 16.10.310(a) is amended to read: 12 (a) The department may 13 (1) make loans [TO] 14 (A) to individual commercial fishermen who have been state
01 residents for a continuous period of two years immediately preceding the date 02 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 03 crewmember or commercial fishing license under AS 16.05.480 or a permit 04 under AS 16.43 for the year immediately preceding the date of application and 05 any other two of the past five years, and who actively participated in the 06 fishery during those periods, for the purchase of entry permits; 07 (B) to an individual for the repair, restoration, or upgrading of 08 existing vessels and gear, for the purchase of entry permits and gear, and for 09 the construction and purchase of vessels, if the individual has been a state 10 resident for a continuous period of two years immediately preceding the date 11 of application for a loan under AS 16.10.300 - 16.10.370, and either 12 (i) because of lack of training or lack of employment 13 opportunities in the area of residence does not have occupational 14 opportunities available other than commercial fishing; or 15 (ii) is economically dependent on commercial fishing for 16 a livelihood and for whom commercial fishing has been a traditional 17 way of life in Alaska; 18 (C) for the purchase of quota shares for fisheries in or off 19 the state by individual commercial fishermen who 20 (i) have been state residents for a continuous period 21 of two years immediately preceding the date of application for a 22 loan under AS 16.10.300 - 16.10.370; 23 (ii) for any two of the past five years, possessed a 24 crewmember or commercial fishing license under AS 16.05.480 or 25 a permit under AS 16.43 and actively participated in a fishery for 26 which the license or permit was issued; 27 (iii) qualify as a transferee for quota shares under 28 applicable law; and 29 (iv) are not eligible for financing from other 30 recognized commercial lending institutions to purchase quota 31 shares;
01 (2) designate agents and delegate its powers to them as necessary; 02 (3) adopt regulations necessary to carry out the provisions of 03 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 04 services provided; 05 (4) establish amortization plans for repayment of loans, which may 06 include extensions for poor fishing seasons or for adverse market conditions for 07 Alaskan products; 08 (5) enter into agreements with private lending institutions, other state 09 agencies, or agencies of the federal government, to carry out the purposes of 10 AS 16.10.300 - 16.10.370; 11 (6) enter into agreements with other agencies or organizations to create 12 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 13 the state; 14 (7) allow an assumption of a loan if 15 (A) the applicant has been a state resident for a continuous 16 period of two years immediately preceding the date of the request for an 17 assumption; and 18 (B) approval of the assumption would be consistent with the 19 purposes of AS 16.10.300; an applicant for a loan assumption may not be 20 disqualified because the applicant does not meet the loan eligibility 21 requirements of (1) of this subsection; 22 (8) prequalify loan applicants for a limited entry permit loan or a 23 quota shares loan and charge a fee not to exceed $200 for prequalification; 24 (9) charge and collect the fees established under this subsection; 25 (10) refinance a debt obligation incurred by a borrower or borrowers 26 under this section if the borrower or borrowers otherwise qualify for a loan under 27 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 28 charge of one-half percent of the amount of the debt obligation that has been 29 refinanced when the first refinancing payment is due. 30 * Sec. 3. AS 16.10.320(d) is amended to read: 31 (d) The total of balances outstanding on loans made to a borrower under
01 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 02 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 03 The total balances outstanding on loans made to a borrower under 04 AS 16.10.310(a)(1)(C) may not exceed $300,000. 05 * Sec. 4. AS 16.10.320(i) is amended to read: 06 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 07 loan may not be made to the borrower under AS 16.10.310(a)(1)(B). If a loan is made 08 to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be made to the 09 borrower under AS 16.10.310(a)(1)(A) if the total of the balance outstanding on loans 10 received by the borrower under AS 16.10.310(a)(1)(A) and (B) [AS 16.10.310] does 11 not exceed $300,000. 12 * Sec. 5. AS 16.10.325 is amended to read: 13 Sec. 16.10.325. GUARANTORS. A person may act as guarantor if the 14 borrower has insufficient collateral to secure a loan for the purposes described in 15 AS 16.10.310(a)(1)(B) or (C). The loan agreement shall specifically describe the 16 property of the guarantor to be used as collateral by the borrower and shall be signed 17 by the guarantor and the borrower. The department shall provide the guarantor with 18 a copy of all notices sent to the borrower by the department. If the loan is for the 19 purchase of an entry permit or quota shares, the guaranty by the guarantor may not 20 constitute a lien, mortgage, or encumbrance on or pledge of the entry permit or quota 21 shares. 22 * Sec. 6. AS 16.10.338 is amended by adding a new subsection to read: 23 (c) If a limited entry permit is pledged for security for a loan made under 24 AS 16.10.310(a)(1)(C) for the purchase of quota shares and the borrower thereafter 25 fails to make a payment or defaults, the commissioner shall, in addition to the notice 26 provided under AS 16.10.335(a), notify the borrower that subject to the commissioner's 27 acceptance the borrower may sell the quota shares, apply the sales proceeds to the 28 debt, and renegotiate payment of the balance due on the loan to avoid the immediate 29 loss of the limited entry permit that has been pledged for security for the loan. 30 * Sec. 7. AS 16.10.360 is amended by adding a new paragraph to read: 31 (5) "quota share" means a transferable license, permit, or right issued
01 by the federal government that conveys a right to engage in a fishery in or off Alaska 02 and to take a specified portion of the annual harvest quota for that fishery. 03 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).