CSSB 251(FIN) AM: "An Act relating to the commercial fishing revolving loan fund and the fisheries enhancement revolving loan fund; and providing for an effective date."
00CS FOR SENATE BILL NO. 251(FIN) am 01 "An Act relating to the commercial fishing revolving loan fund and the fisheries 02 enhancement revolving loan fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.310(a) is amended to read: 05 (a) The department may 06 (1) make loans to 07 (A) individual commercial fishermen who have been state 08 residents for a continuous period of two years immediately preceding the date 09 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 10 crewmember or commercial fishing license under AS 16.05.480 or a permit 11 under AS 16.43 for the year immediately preceding the date of application and 12 any other two of the past five years, and who actively participated in the 13 fishery during those periods, 14 (i) for the purchase of entry permits;
01 (ii) to upgrade existing vessels and gear for the 02 purpose of improving the quality of Alaska seafood products; or 03 (iii) to satisfy past due federal tax obligations that 04 may result in the execution upon and involuntary transfer of the 05 individual commercial fishermen's entry permits, to the extent 06 allowed under (d) of this section; 07 (B) an individual for the repair, restoration, or upgrading of 08 existing vessels and gear, for the purchase of entry permits and gear, [AND] 09 for the construction and purchase of vessels, or, to the extent allowed under 10 (d) of this section, to satisfy past due federal tax obligations that may 11 result in the execution upon and involuntary transfer of the individual's 12 entry permits, if the individual has been a state resident for a continuous 13 period of two years immediately preceding the date of application for a loan 14 under AS 16.10.300 - 16.10.370, and either 15 (i) because of lack of training or lack of employment 16 opportunities in the area of residence, does not have occupational 17 opportunities available other than commercial fishing; or 18 (ii) is economically dependent on commercial fishing for 19 a livelihood and for whom commercial fishing has been a traditional 20 way of life in Alaska; 21 (2) designate agents and delegate its powers to them as necessary; 22 (3) adopt regulations necessary to carry out the provisions of 23 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 24 services provided; 25 (4) establish amortization plans for repayment of loans, which may 26 include extensions for poor fishing seasons or for adverse market conditions for 27 Alaskan products; 28 (5) enter into agreements with private lending institutions, other state 29 agencies, or agencies of the federal government, to carry out the purposes of 30 AS 16.10.300 - 16.10.370; 31 (6) enter into agreements with other agencies or organizations to create
01 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 02 the state; 03 (7) allow an assumption of a loan if 04 (A) the applicant has been a state resident for a continuous 05 period of two years immediately preceding the date of the request for an 06 assumption; and 07 (B) approval of the assumption would be consistent with the 08 purposes of AS 16.10.300; an applicant for a loan assumption may not be 09 disqualified because the applicant does not meet the loan eligibility 10 requirements of (1) of this subsection; 11 (8) prequalify loan applicants for a limited entry permit loan and charge 12 a fee not to exceed $200 for prequalification; 13 (9) charge and collect the fees established under this subsection; 14 (10) refinance a debt obligation incurred by a borrower or borrowers 15 under this section if the borrower or borrowers otherwise qualify for a loan under 16 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 17 charge of one-half percent of the amount of the debt obligation that has been 18 refinanced when the first refinancing payment is due; 19 (11) refinance debt obligations, not to exceed $300,000, incurred by 20 a borrower or borrowers for the purchase of a commercial fishing vessel or gear 21 if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 22 16.10.370; the department may collect a refinancing loan origination charge as 23 provided by regulation. 24 * Sec. 2. AS 16.10.310(a) is repealed and reenacted to read: 25 (a) The department may 26 (1) make loans to 27 (A) individual commercial fishermen who have been state 28 residents for a continuous period of two years immediately preceding the date 29 of application for a loan under AS 16.10.300 - 16.10.370 and have had a crew 30 member or commercial fishing license under AS 16.05.480 or a permit under 31 AS 16.43 for the year immediately preceding the date of application and any
01 other two of the past five years, and who actively participated in the fishery 02 during those periods, 03 (i) for the purchase of entry permits; or 04 (ii) to upgrade existing vessels and gear for the purpose 05 of improving the quality of Alaska seafood products; 06 (B) an individual for the repair, restoration, or upgrading of 07 existing vessels and gear, for the purchase of entry permits and gear, and for 08 the construction and purchase of vessels, if the individual has been a state 09 resident for a continuous period of two years immediately preceding the date 10 of application for a loan under AS 16.10.300 - 16.10.370, and either 11 (i) because of lack of training or lack of employment 12 opportunities in the area of residence, does not have occupational 13 opportunities available other than commercial fishing; or 14 (ii) is economically dependent on commercial fishing for 15 a livelihood and for whom commercial fishing has been a traditional 16 way of life in Alaska; 17 (2) designate agents and delegate its powers to them as necessary; 18 (3) adopt regulations necessary to carry out the provisions of 19 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 20 services provided; 21 (4) establish amortization plans for repayment of loans, which may 22 include extensions for poor fishing seasons or for adverse market conditions for 23 Alaskan products; 24 (5) enter into agreements with private lending institutions, other state 25 agencies, or agencies of the federal government, to carry out the purposes of 26 AS 16.10.300 - 16.10.370; 27 (6) enter into agreements with other agencies or organizations to create 28 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 29 the state; 30 (7) allow an assumption of a loan if 31 (A) the applicant has been a state resident for a continuous
01 period of two years immediately preceding the date of the request for an 02 assumption; and 03 (B) approval of the assumption would be consistent with the 04 purposes of AS 16.10.300; an applicant for a loan assumption may not be 05 disqualified because the applicant does not meet the loan eligibility 06 requirements of (1) of this subsection; 07 (8) prequalify loan applicants for a limited entry permit loan and charge 08 a fee not to exceed $200 for prequalification; 09 (9) charge and collect the fees established under this subsection; 10 (10) refinance a debt obligation incurred by a borrower or borrowers 11 under this section if the borrower or borrowers otherwise qualify for a loan under 12 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 13 charge of one-half percent of the amount of the debt obligation that has been 14 refinanced when the first refinancing payment is due; 15 (11) refinance debt obligations, not to exceed $300,000, incurred by a 16 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 17 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 18 the department may collect a refinancing loan origination charge as provided by 19 regulation. 20 * Sec. 3. AS 16.10.310 is amended by adding a new subsection to read: 21 (d) The department may not make a loan to an individual under (a)(1) of this 22 section to satisfy past due federal tax obligations unless the individual has filed past 23 and current federal tax returns with the federal government and has executed an 24 agreement with the federal government for repayment of past due federal tax 25 obligations. An individual may receive only one loan under (a)(1) of this section to 26 satisfy past due federal tax obligations during the individual's lifetime. A loan made 27 under (a)(1) of this section to satisfy past due federal tax obligations may not exceed 28 $30,000. 29 * Sec. 4. AS 16.10.320(d) is amended to read: 30 (d) The total of balances outstanding on loans made to a borrower under 31 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding
01 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 02 The total of balances outstanding on all loans, including debt refinancing under 03 AS 16.10.310(a), made to a borrower under AS 16.10.300 - 16.10.370 may not 04 exceed $300,000. 05 * Sec. 5. AS 16.10.340 is amended by adding a new subsection to read: 06 (c) If the commissioner determines that the fund contains money that is excess 07 to that needed to carry out the purpose of AS 16.10.300 - 16.10.370, then the 08 commissioner may use one-half of the excess money to carry out the purpose of 09 AS 16.10.500 - 16.10.560. 10 * Sec. 6. AS 16.10.505(a) is amended to read: 11 (a) There is created within the Department of Commerce and Economic 12 Development a revolving fund to be known as the fisheries enhancement revolving 13 loan fund. Except as provided in (b) and (c) of this section, the fund shall be used to 14 carry out the purposes of AS 16.10.500 - 16.10.560 and for no other purpose. All 15 principal and interest payments, and money chargeable to principal or interest that is 16 collected through liquidation by foreclosure or other process on loans made under 17 AS 16.10.500 - 16.10.560, shall be paid into the fisheries enhancement revolving loan 18 fund. 19 * Sec. 7. AS 16.10.505 is amended by adding a new subsection to read: 20 (c) Money in the fund that the commissioner determines to be excess to that 21 needed to carry out the purpose of AS 16.10.500 - 16.10.560 may be used to carry out 22 the purpose of AS 16.10.300 - 16.10.370. 23 * Sec. 8. AS 16.10.520 is amended by adding a new subsection to read: 24 (f) The commissioner may not make a loan under AS 16.10.500 - 16.10.550 25 from funds available under AS 16.10.340(c), unless the commissioner determines, in 26 consultation with the appropriate regional planning team established under 27 AS 16.10.375, that the hatchery or other enhancement or rehabilitation activity for 28 which the loan is requested will provide a significant contribution to common property 29 fisheries, be operated in a manner beneficial to the public interest, and be managed in 30 a financially viable manner that is reasonably expected to result in repayment of the 31 loan.
01 * Sec. 9. AS 16.10.310(d) is repealed. 02 * Sec. 10. Sections 2 and 9 of this Act take effect three years after the effective date of 03 sec. 1 of this Act. 04 * Sec. 11. Except for secs. 2 and 9 of this Act, this Act takes effect immediately under 05 AS 01.10.070(c).