HB 287: "An Act relating to the exemption of commercial fishing entry permits from claims of creditors, to loans to satisfy past due federal tax obligations of commercial fishing entry permit holders, and to loan origination charges for loans made by the commercial fishing loan program to refinance a debt obligation; and providing for an effective date."
00 HOUSE BILL NO. 287 01 "An Act relating to the exemption of commercial fishing entry permits from claims of 02 creditors, to loans to satisfy past due federal tax obligations of commercial fishing entry 03 permit holders, and to loan origination charges for loans made by the commercial 04 fishing loan program to refinance a debt obligation; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 09.38.015(a) is amended to read: 08 (a) An individual is entitled to exemption of the following property: 09 (1) a burial plot for the individual and the individual's family; 10 (2) health aids reasonably necessary to enable the individual or a 11 dependent to work or to sustain health; 12 (3) benefits paid or payable for medical, surgical, or hospital care to 13 the extent they are or will be used to pay for the care;
01 (4) an award under AS 18.67 (Violent Crimes Compensation Board) or 02 a crime victim's reparations act of another jurisdiction; 03 (5) benefits paid or payable as a longevity bonus under AS 47.45; 04 (6) compensation or benefits paid or payable and exempt under federal 05 law; 06 (7) liquor licenses granted under AS 04; 07 (8) limited entry permits granted under AS 16.43 [, EXCEPT AS 08 PROVIDED IN THAT CHAPTER]; 09 (9) tuition credit or savings accounts under a higher education savings 10 account established under AS 14.40.802 or an advance college tuition savings contract 11 authorized under AS 14.40.809(a); 12 (10) a permanent fund dividend to the extent allowed under 13 AS 43.23.065. 14 * Sec. 2. AS 16.10.310(a) is amended to read: 15 (a) The department may 16 (1) make loans 17 (A) to individual commercial fishermen who have been state 18 residents for a continuous period of two years immediately preceding the date 19 of application for a loan under AS 16.10.300 - 16.10.370, who have had a 20 crewmember or commercial fishing license under AS 16.05.480 or a permit 21 under AS 16.43 for the year immediately preceding the date of application and 22 any other two of the past five years, and who actively participated in the 23 fishery during those periods 24 (i) for the purchase of entry permits; 25 (ii) to upgrade existing vessels and gear for the purpose 26 of improving the quality of Alaska seafood products; or 27 (iii) to satisfy past due federal tax obligations of an 28 individual commercial fishing entry permit holder [THAT MAY 29 RESULT IN THE EXECUTION ON AND INVOLUNTARY 30 TRANSFER OF THE INDIVIDUAL COMMERCIAL FISHERMEN'S 31 ENTRY PERMITS], to the extent allowed under (e) of this section;
01 (B) to an individual for the repair, restoration, or upgrading of 02 existing vessels and gear, for the purchase of entry permits and gear, for the 03 construction and purchase of vessels, or, to the extent allowed under (e) of this 04 section, to satisfy past due federal tax obligations of an individual 05 commercial fishing entry permit holder [THAT MAY RESULT IN THE 06 EXECUTION ON AND INVOLUNTARY TRANSFER OF THE 07 INDIVIDUAL'S ENTRY PERMITS], if the individual has been a state 08 resident 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 either 10 (i) because of lack of training or lack of employment 11 opportunities in the area of residence, does not have occupational 12 opportunities available other than commercial fishing; or 13 (ii) is economically dependent on commercial fishing 14 for a livelihood and for whom commercial fishing has been a traditional 15 way of life in Alaska; 16 (C) for the purchase of quota shares for fisheries in or off the 17 state by individual commercial fishermen who 18 (i) have been state residents for a continuous period of 19 two years immediately preceding the date of application for a loan 20 under AS 16.10.300 - 16.10.370; 21 (ii) for any two of the past five years, possessed a 22 crewmember or commercial fishing license under AS 16.05.480 or a 23 permit under AS 16.43 and actively participated in a fishery for which 24 the license or permit was issued; 25 (iii) qualify as transferees for quota shares under 26 applicable law; and 27 (iv) are not eligible for financing from other recognized 28 commercial lending institutions to purchase quota shares; 29 (2) designate agents and delegate its powers to them as necessary; 30 (3) adopt regulations necessary to carry out the provisions of 31 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for
01 services provided; 02 (4) establish amortization plans for repayment of loans, which may 03 include extensions for poor fishing seasons or for adverse market conditions for 04 Alaska products; 05 (5) enter into agreements with private lending institutions, other state 06 agencies, or agencies of the federal government to carry out the purposes of 07 AS 16.10.300 - 16.10.370; 08 (6) enter into agreements with other agencies or organizations to create 09 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 10 the state; 11 (7) allow an assumption of a loan if 12 (A) the applicant has been a state resident for a continuous 13 period of two years immediately preceding the date of the request for an 14 assumption; and 15 (B) approval of the assumption would be consistent with the 16 purposes of AS 16.10.300; an applicant for a loan assumption may not be 17 disqualified because the applicant does not meet the loan eligibility 18 requirements of (1) of this subsection; 19 (8) prequalify loan applicants for a limited entry permit loan or a quota 20 shares loan and charge a fee not to exceed $200 for prequalification; 21 (9) charge and collect the fees established under this subsection; 22 (10) refinance a debt obligation incurred by a borrower or borrowers 23 under this section if the borrower or borrowers otherwise qualify for a loan under 24 AS 16.10.300 - 16.10.370; [THE DEPARTMENT SHALL COLLECT A 25 REFINANCING LOAN ORIGINATION CHARGE OF ONE-HALF PERCENT OF 26 THE AMOUNT OF THE DEBT OBLIGATION THAT HAS BEEN REFINANCED 27 WHEN THE FIRST REFINANCING PAYMENT IS DUE;] 28 (11) refinance debt obligations, not to exceed $300,000, incurred by a 29 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 30 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 31 the department may collect a refinancing loan origination charge as provided by
01 regulation. 02 * Sec. 3. AS 16.10.310(e) is amended to read: 03 (e) The department may not make a loan to an individual under (a)(1) of this 04 section to satisfy past due federal tax obligations unless the individual has filed past 05 and current federal tax returns with the federal government and has executed an 06 agreement with the federal government for repayment of past due federal tax 07 obligations. [DURING AN INDIVIDUAL'S LIFETIME, THE INDIVIDUAL MAY 08 RECEIVE ONLY ONE LOAN TO SATISFY PAST DUE FEDERAL TAX 09 OBLIGATIONS UNDER (a)(1) OF THIS SECTION, WHETHER UNDER (a)(1) OF 10 THIS SECTION AS IT NOW READS OR UNDER ANY OTHER FORMER 11 VERSION OF (a)(1) OF THIS SECTION.] A loan made under (a)(1) of this section 12 to satisfy past due federal tax obligations may not exceed $30,000. During a 13 calendar year, an individual may not receive more than one loan made under 14 (a)(1) of this section to satisfy past due federal tax obligations. 15 * Sec. 4. AS 16.43.150(g) is amended to read: 16 (g) Except as provided in AS 16.10.333 - 16.10.338, AS 44.81.215, 44.81.225, 17 and 44.81.231 - 44.81.250, an entry permit may not be 18 (1) pledged, mortgaged, leased, or encumbered in any way; 19 (2) transferred with any retained right of repossession or foreclosure, 20 or on any condition requiring a subsequent transfer; or 21 (3) attached, distrained, or sold on execution of judgment or under any 22 other process or order of any court [, EXCEPT AS PROVIDED IN AS 16.43.170(g) 23 AND (h)]. 24 * Sec. 5. AS 16.43.170 is amended by adding a new subsection to read: 25 (i) Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 26 44.81.231 - 44.81.250, an entry permit is exempt from the claims of creditors of the 27 permit holder. 28 * Sec. 6. AS 16.43 is amended by adding a new section to read: 29 Sec. 16.43.945. Commercial fishing privileges exempt from claims of 30 creditors. Except as provided in AS 16.43.170(i), commercial fishing privileges 31 granted under this chapter, including entry permits, are exempt from AS 09.38.065,
01 AS 25.27.230, AS 45.29.408, and any other provision of law that would subject the 02 privileges to the claims of any creditor. 03 * Sec. 7. AS 25.27.230(c) is amended to read: 04 (c) The lien shall attach to all real and personal property of the obligor and be 05 effective on the date of recording of the lien with the recorder of the recording district 06 in which the property attached is located. A lien against earnings shall attach and be 07 effective upon filing with the recorder of the recording district in which the employer 08 does business or maintains an office or agent for the purpose of doing business. [A 09 LIEN FILED AT THE OFFICES OF THE COMMERCIAL FISHERIES ENTRY 10 COMMISSION IN JUNEAU AGAINST A LIMITED ENTRY PERMIT ISSUED 11 UNDER AS 16.43 IS CONSIDERED TO HAVE BEEN FILED AGAINST THE 12 PERMIT IN ALL RECORDING DISTRICTS IN WHICH THE PERMIT HOLDER 13 USES THE PERMIT.] 14 * Sec. 8. AS 25.27.230 is amended by adding a new subsection to read: 15 (g) In this section, "real or personal property" does not include a limited entry 16 permit issued under AS 16.43. 17 * Sec. 9. AS 16.43.170(g) and 16.43.170(h) are repealed. 18 * Sec. 10. Sections 3, 4, and 6, ch. 127, SLA 2000, are repealed. 19 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 CONDITIONAL EFFECT. If sec. 3, ch. 127, SLA 2000, takes effect before the 22 effective date of this Act, secs. 2, 3, and 10 of this Act do not take effect. 23 * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).