00 HOUSE BILL NO. 105
01 "An Act relating to loans to satisfy past due federal tax obligations of commercial
02 fishermen and to the commercial fishing loan program."
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
07 (A) to 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, who [AND] have
10 had a crewmember or commercial fishing license under AS 16.05.480 or a
11 permit under AS 16.43 for the year immediately preceding the date of
12 application and any other two of the past five years, and who actively
13 participated in the fishery during those periods
14 (i) for the purchase of entry permits; or
01 (ii) to upgrade existing vessels and gear for the purpose
02 of improving the quality of Alaska seafood products;
03 (B) to an individual for the repair, restoration, or upgrading of
04 existing vessels and gear, for the purchase of entry permits and gear, and for
05 the construction and purchase of vessels, if the individual has been a state
06 resident 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 either
08 (i) because of lack of training or lack of employment
09 opportunities in the area of residence, does not have occupational
10 opportunities available other than commercial fishing; or
11 (ii) is economically dependent on commercial fishing
12 for a livelihood and for whom commercial fishing has been a traditional
13 way of life in Alaska;
14 (C) for the purchase of quota shares for fisheries in or off the
15 state by individual commercial fishermen who
16 (i) have been state residents for a continuous period of
17 two years immediately preceding the date of application for a loan
18 under AS 16.10.300 - 16.10.370;
19 (ii) for any two of the past five years, possessed a
20 crewmember or commercial fishing license under AS 16.05.480 or a
21 permit under AS 16.43 and actively participated in a fishery for which
22 the license or permit was issued;
23 (iii) qualify as transferees for quota shares under
24 applicable law; and
25 (iv) are not eligible for financing from other recognized
26 commercial lending institutions to purchase quota shares;
27 (D) to an individual commercial fisherman to satisfy past
28 due federal tax obligations, if the fisherman has been a state resident for a
29 continuous period of two years immediately preceding the date of
30 application for the loan, has filed past and current federal tax returns
31 with the federal government, has executed an agreement with the federal
01 government for repayment of past due federal tax obligations, and either
02 (i) has had a crewmember or commercial fishing
03 license under AS 16.05.480 or a permit under AS 16.43 for the year
04 immediately preceding the date of application and any other two of
05 the past five years, and has actively participated in the fishery
06 during those periods;
07 (ii) because of lack of training or lack of employment
08 opportunities in the area of residence, does not have occupational
09 opportunities available other than commercial fishing; or
10 (iii) is economically dependent on commercial
11 fishing for a livelihood and for whom commercial fishing has been
12 a traditional way of life in Alaska;
13 (2) designate agents and delegate its powers to them as necessary;
14 (3) adopt regulations necessary to carry out the provisions of
15 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for
16 services provided;
17 (4) establish amortization plans for repayment of loans, which may
18 include extensions for poor fishing seasons or for adverse market conditions for
19 Alaska products;
20 (5) enter into agreements with private lending institutions, other state
21 agencies, or agencies of the federal government to carry out the purposes of
22 AS 16.10.300 - 16.10.370;
23 (6) enter into agreements with other agencies or organizations to create
24 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of
25 the state;
26 (7) allow an assumption of a loan if
27 (A) the applicant has been a state resident for a continuous
28 period of two years immediately preceding the date of the request for an
29 assumption; and
30 (B) approval of the assumption would be consistent with the
31 purposes of AS 16.10.300; an applicant for a loan assumption may not be
01 disqualified because the applicant does not meet the loan eligibility
02 requirements of (1) of this subsection;
03 (8) prequalify loan applicants for a limited entry permit loan or a quota
04 shares loan and charge a fee not to exceed $200 for prequalification;
05 (9) charge and collect the fees established under this subsection;
06 (10) refinance a debt obligation incurred by a borrower or borrowers
07 under this section if the borrower or borrowers otherwise qualify for a loan under
08 AS 16.10.300 - 16.10.370; [THE DEPARTMENT SHALL COLLECT A
09 REFINANCING LOAN ORIGINATION CHARGE OF ONE-HALF PERCENT OF
10 THE AMOUNT OF THE DEBT OBLIGATION THAT HAS BEEN REFINANCED
11 WHEN THE FIRST REFINANCING PAYMENT IS DUE;]
12 (11) refinance debt obligations, not to exceed $300,000, incurred by a
13 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the
14 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370;
15 the department may collect a refinancing loan origination charge as provided by
16 regulation.
17 * Sec. 2. AS 16.10.320(d) is amended to read:
18 (d) The total of balances outstanding on loans made to a borrower under
19 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding
20 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000.
21 The total balances outstanding on loans made to a borrower under AS 16.10.310
22 (a)(1)(C) may not exceed $300,000. The total of balances outstanding on loans
23 made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax
24 obligations may not exceed $30,000. Excluding loans made under
25 AS 16.10.310(a)(1)(C) and (D), the [THE] total of balances outstanding on all loans,
26 including debt refinancing under AS 16.10.310(a), made to a borrower under
27 AS 16.10.300 - 16.10.370 may not exceed $300,000.
28 * Sec. 3. AS 16.10.337(b) is amended to read:
29 (b) If the commission does not exercise its right of first refusal within 30 days
30 after it receives the offer, or if the permit is not subject to a buy-back program under
31 AS 16.43.290 - 16.43.330, the department shall [PROMPTLY] advertise and sell the
01 permit. If the proceeds of the sale of a permit exceed the amount necessary to pay the
02 note in full, plus penalties, costs of administration of the note, and attorney fees, the
03 excess shall be transferred by the commissioner to the debtor. At any time until the
04 permit has been sold under this subsection the debtor may repurchase the permit by
05 paying the department the amount necessary to pay the note in full, plus penalties,
06 costs of administration of the note, and attorney fees, as determined by the
07 commissioner.