CSHB 287(FSH): "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, to the legal status of limited entry permits, 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 CS FOR HOUSE BILL NO. 287(FSH) 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, to the legal status of limited entry permits, and to loan origination 04 charges for loans made by the commercial fishing loan program to refinance a debt 05 obligation; and providing for an effective 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, 08 EXCEPT AS 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 (9) [(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(a) is amended to read: 03 (a) The department may 04 (1) make loans 05 (A) to individual commercial fishermen who have been state 06 residents for a continuous period of two years immediately preceding the date 07 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 08 crewmember or commercial fishing license under AS 16.05.480 or a permit 09 under AS 16.43 for the year immediately preceding the date of application and 10 any other two of the past five years, and who actively participated in the 11 fishery during those periods, 12 (i) for the purchase of entry permits; or 13 (ii) to upgrade existing vessels and gear for the purpose 14 of improving the quality of Alaska seafood products; 15 (B) to an individual for the repair, restoration, or upgrading of 16 existing vessels and gear, for the purchase of entry permits and gear, and for 17 the construction and purchase of vessels, if the individual has been a state 18 resident 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, and either 20 (i) because of lack of training or lack of employment 21 opportunities in the area of residence, does not have occupational 22 opportunities available other than commercial fishing; or 23 (ii) is economically dependent on commercial fishing 24 for a livelihood and for whom commercial fishing has been a traditional 25 way of life in Alaska; 26 (C) for the purchase of quota shares for fisheries in or off the 27 state by individual commercial fishermen who 28 (i) have been state residents for a continuous period of 29 two years immediately preceding the date of application for a loan 30 under AS 16.10.300 - 16.10.370; 31 (ii) for any two of the past five years, possessed a
01 crewmember or commercial fishing license under AS 16.05.480 or a 02 permit under AS 16.43 and actively participated in a fishery for which 03 the license or permit was issued; 04 (iii) qualify as a transferee for quota shares under 05 applicable law; and 06 (iv) are not eligible for financing from other recognized 07 commercial lending institutions to purchase quota shares; 08 (2) designate agents and delegate its powers to them as necessary; 09 (3) adopt regulations necessary to carry out the provisions of 10 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 11 services provided; 12 (4) establish amortization plans for repayment of loans, which may 13 include extensions for poor fishing seasons or for adverse market conditions for 14 Alaska products; 15 (5) enter into agreements with private lending institutions, other state 16 agencies, or agencies of the federal government to carry out the purposes of 17 AS 16.10.300 - 16.10.370; 18 (6) enter into agreements with other agencies or organizations to create 19 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 20 the state; 21 (7) allow an assumption of a loan if 22 (A) the applicant has been a state resident for a continuous 23 period of two years immediately preceding the date of the request for an 24 assumption; and 25 (B) approval of the assumption would be consistent with the 26 purposes of AS 16.10.300; an applicant for a loan assumption may not be 27 disqualified because the applicant does not meet the loan eligibility 28 requirements of (1) of this subsection; 29 (8) prequalify loan applicants for a limited entry permit loan or a quota 30 shares loan and charge a fee not to exceed $200 for prequalification; 31 (9) charge and collect the fees established under this subsection;
01 (10) refinance a debt obligation incurred by a borrower or borrowers 02 under this section if the borrower or borrowers otherwise qualify for a loan under 03 AS 16.10.300 - 16.10.370; [THE DEPARTMENT SHALL COLLECT A 04 REFINANCING LOAN ORIGINATION CHARGE OF ONE-HALF PERCENT OF 05 THE AMOUNT OF THE DEBT OBLIGATION THAT HAS BEEN REFINANCED 06 WHEN THE FIRST REFINANCING PAYMENT IS DUE;] 07 (11) refinance debt obligations, not to exceed $300,000, incurred by a 08 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 09 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 10 the department may collect a refinancing loan origination charge as provided by 11 regulation. 12 * Sec. 4. AS 16.10.310(e) is amended to read: 13 (e) The department may not make a loan to an individual under (a)(1) of this 14 section to satisfy past due federal tax obligations unless the individual has filed past 15 and current federal tax returns with the federal government and has executed an 16 agreement with the federal government for repayment of past due federal tax 17 obligations. [DURING AN INDIVIDUAL'S LIFETIME, THE INDIVIDUAL MAY 18 RECEIVE ONLY ONE LOAN TO SATISFY PAST DUE FEDERAL TAX 19 OBLIGATIONS UNDER (a)(1) OF THIS SECTION, WHETHER UNDER (a)(1) OF 20 THIS SECTION AS IT NOW READS OR UNDER ANY OTHER FORMER 21 VERSION OF (a)(1) OF THIS SECTION.] A loan made under (a)(1) of this section 22 to satisfy past due federal tax obligations may not exceed $30,000. During a 23 calendar year, an individual may not receive more than one loan made under 24 (a)(1) of this section to satisfy past due federal tax obligations. 25 * Sec. 5. AS 16.43.150(e) is amended to read: 26 (e) An entry permit is not property; an entry permit constitutes a use 27 privilege that may be modified or revoked by the legislature without compensation. 28 * Sec. 6. AS 16.43.170(g) is amended to read: 29 (g) A person may request the commission to transfer an entry permit due to an 30 execution on a permit [THE] holder's interest in that permit if the execution is to 31 enforce a lien recorded with the commission under AS 25.27.230(c). The request
01 shall be made in the form and manner provided in this chapter and regulations adopted 02 under this chapter. The commission may deny a request for transfer of an entry permit 03 due to an execution of a holder's interest in that permit if 04 (1) the execution does not comply with legal requirements or otherwise 05 is not valid; 06 (2) the transfer violates this chapter or regulations adopted under this 07 chapter; 08 (3) the proposed transferee or other party to the transfer is prohibited 09 by law from participating in the transaction; 10 (4) a certificate for the permit under AS 16.10.333(b)(1) - (2), 11 16.10.338, or AS 44.81.231(a) is in effect at the time of the proposed transfer; 12 (5) the proposed transferee of the entry permit, other than the 13 commission, cannot demonstrate the present ability to actively participate in the 14 fishery; or 15 (6) the holder of the entry permit as shown by the records of the 16 commission demonstrates, under regulations adopted by the commission, that the 17 entry permit is a necessary means of support for the holder and those dependent upon 18 the holder. 19 * Sec. 7. AS 16.43 is amended by adding a new section to read: 20 Sec. 16.43.945. Commercial fishing privileges exempt from claims of 21 creditors. Except as provided in AS 16.10.333 - 16.10.338, AS 16.43.170(g), 22 AS 44.81.215, and 44.81.231 - 44.81.250, commercial fishing privileges granted under 23 this chapter, including entry permits, are exempt from claims of creditors, including 24 claims under AS 09.38.065 and AS 45.29.408. 25 * Sec. 8. Sections 3, 4, and 6, ch. 127, SLA 2000, are repealed. 26 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 CONDITIONAL EFFECT. (a) If sec. 3, ch. 127, SLA 2000, takes effect before the 29 effective date of this Act, secs. 2, 4, and 8 of this Act do not take effect. 30 (b) If this Act takes effect before the effective date of sec. 3, ch. 127, SLA 2000, 31 sec. 3 of this Act does not take effect.
01 * Sec. 10. This Act takes effect immediately under AS 01.10.070(c).