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CSHB 105(FIN): "An Act relating to loans to satisfy past due federal tax obligations of commercial fishermen and to the commercial fishing loan program."

00                       CS FOR HOUSE BILL NO. 105(FIN)                                                                    
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,                       
03       and child support liens of which the department has notice, the excess shall be                               
04       transferred by the commissioner to the debtor.  At any time until the permit has been                             
05       sold under this subsection the debtor may repurchase the permit by paying the                                     
06       department the amount necessary to pay the note in full, plus penalties, costs of                                 
07       administration of the note, and attorney fees, as determined by the commissioner.