Enrolled HB 105: Relating to loans to satisfy past due federal tax obligations of commercial fishermen and to the commercial fishing loan program.
00Enrolled HB 105 01 Relating to loans to satisfy past due federal tax obligations of commercial fishermen and to 02 the commercial fishing loan program. 03 _______________ 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 15 (ii) to upgrade existing vessels and gear for the purpose
01 of improving the quality of Alaska seafood products; 02 (B) to an individual for the repair, restoration, or upgrading of 03 existing vessels and gear, for the purchase of entry permits and gear, and for 04 the construction and purchase of vessels, if the individual has been a state 05 resident for a continuous period of two years immediately preceding the date 06 of application for a loan under AS 16.10.300 - 16.10.370, and either 07 (i) 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 (ii) is economically dependent on commercial fishing 11 for a livelihood and for whom commercial fishing has been a traditional 12 way of life in Alaska; 13 (C) for the purchase of quota shares for fisheries in or off the 14 state by individual commercial fishermen who 15 (i) have been state residents for a continuous period of 16 two years immediately preceding the date of application for a loan 17 under AS 16.10.300 - 16.10.370; 18 (ii) for any two of the past five years, possessed a 19 crewmember or commercial fishing license under AS 16.05.480 or a 20 permit under AS 16.43 and actively participated in a fishery for which 21 the license or permit was issued; 22 (iii) qualify as transferees for quota shares under 23 applicable law; and 24 (iv) are not eligible for financing from other recognized 25 commercial lending institutions to purchase quota shares; 26 (D) to an individual commercial fisherman to satisfy past 27 due federal tax obligations, if the fisherman has been a state resident for a 28 continuous period of two years immediately preceding the date of 29 application for the loan, has filed past and current federal tax returns 30 with the federal government, has executed an agreement with the federal 31 government for repayment of past due federal tax obligations, and either
01 (i) has had a crewmember or commercial fishing 02 license under AS 16.05.480 or a permit under AS 16.43 for the year 03 immediately preceding the date of application and any other two of 04 the past five years, and has actively participated in the fishery 05 during those periods; 06 (ii) because of lack of training or lack of employment 07 opportunities in the area of residence, does not have occupational 08 opportunities available other than commercial fishing; or 09 (iii) is economically dependent on commercial 10 fishing for a livelihood and for whom commercial fishing has been 11 a traditional way of life in Alaska; 12 (2) designate agents and delegate its powers to them as necessary; 13 (3) adopt regulations necessary to carry out the provisions of 14 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 15 services provided; 16 (4) establish amortization plans for repayment of loans, which may 17 include extensions for poor fishing seasons or for adverse market conditions for 18 Alaska products; 19 (5) enter into agreements with private lending institutions, other state 20 agencies, or agencies of the federal government to carry out the purposes of 21 AS 16.10.300 - 16.10.370; 22 (6) enter into agreements with other agencies or organizations to create 23 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 24 the state; 25 (7) allow an assumption of a loan if 26 (A) the applicant has been a state resident for a continuous 27 period of two years immediately preceding the date of the request for an 28 assumption; and 29 (B) approval of the assumption would be consistent with the 30 purposes of AS 16.10.300; an applicant for a loan assumption may not be 31 disqualified because the applicant does not meet the loan eligibility
01 requirements of (1) of this subsection; 02 (8) prequalify loan applicants for a limited entry permit loan or a quota 03 shares loan and charge a fee not to exceed $200 for prequalification; 04 (9) charge and collect the fees established under this subsection; 05 (10) refinance a debt obligation incurred by a borrower or borrowers 06 under this section if the borrower or borrowers otherwise qualify for a loan under 07 AS 16.10.300 - 16.10.370; [THE DEPARTMENT SHALL COLLECT A 08 REFINANCING LOAN ORIGINATION CHARGE OF ONE-HALF PERCENT OF 09 THE AMOUNT OF THE DEBT OBLIGATION THAT HAS BEEN REFINANCED 10 WHEN THE FIRST REFINANCING PAYMENT IS DUE;] 11 (11) refinance debt obligations, not to exceed $300,000, incurred by a 12 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 13 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 14 the department may collect a refinancing loan origination charge as provided by 15 regulation. 16 * Sec. 2. AS 16.10.320(d) is amended to read: 17 (d) The total of balances outstanding on loans made to a borrower under 18 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 19 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 20 The total balances outstanding on loans made to a borrower under AS 16.10.310 21 (a)(1)(C) may not exceed $300,000. The total of balances outstanding on loans 22 made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 23 obligations may not exceed $30,000. Excluding loans made under 24 AS 16.10.310(a)(1)(C) and (D), the [THE] total of balances outstanding on all loans, 25 including debt refinancing under AS 16.10.310(a), made to a borrower under 26 AS 16.10.300 - 16.10.370 may not exceed $300,000. 27 * Sec. 3. AS 16.10.337(b) is amended to read: 28 (b) If the commission does not exercise its right of first refusal within 30 days 29 after it receives the offer, or if the permit is not subject to a buy-back program under 30 AS 16.43.290 - 16.43.330, the department shall [PROMPTLY] advertise and sell the 31 permit. If the proceeds of the sale of a permit exceed the amount necessary to pay the
01 note in full, plus penalties, costs of administration of the note, [AND] attorney fees, 02 and child support liens of which the department has notice, the excess shall be 03 transferred by the commissioner to the debtor. At any time until the permit has been 04 sold under this subsection, the debtor may repurchase the permit by paying the 05 department the amount necessary to pay the note in full, plus penalties, costs of 06 administration of the note, and attorney fees, as determined by the commissioner.