CSHB 121(FIN): "An Act establishing the commercial charter fisheries revolving loan fund, the mariculture revolving loan fund, and the Alaska microloan revolving loan fund and relating to those funds and loans from those funds; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 121(FIN) 01 "An Act establishing the commercial charter fisheries revolving loan fund, the 02 mariculture revolving loan fund, and the Alaska microloan revolving loan fund and 03 relating to those funds and loans from those funds; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.10 is amended by adding new sections to read: 06 Article 13. Commercial Charter Fisheries Revolving Loan Fund. 07 Sec. 16.10.801. Commercial charter fisheries revolving loan fund. (a) The 08 commercial charter fisheries revolving loan fund is created in the Department of 09 Commerce, Community, and Economic Development to carry out the purposes of 10 AS 16.10.801 - 16.10.890. 11 (b) The commercial charter fisheries revolving loan fund consists of the 12 following: 13 (1) money appropriated to, transferred to, or received by gift, grant, 14 devise, bequest, or donation to the fund;
01 (2) principal and interest payments or other income earned on loans or 02 investments of the fund; 03 (3) money chargeable to principal or interest that is collected through 04 liquidation by foreclosure or other process on loans made under AS 16.10.801 - 05 16.10.890. 06 (c) Money in the fund may be used by the legislature to make appropriations 07 for costs of administering AS 16.10.801 - 16.10.890. 08 Sec. 16.10.805. Powers and duties of the department. The department may 09 (1) make loans to eligible applicants under AS 16.10.801 - 16.10.890 10 (A) for the purchase of charter halibut permits; 11 (B) for the purchase or construction of a charter halibut fishing 12 vessel; 13 (C) to upgrade existing charter halibut fishing vessels and gear 14 for the purpose of improving engine fuel efficiency; 15 (D) to refinance debt obligations made by other lenders more 16 than 12 months before the department received the loan application and 17 incurred by an applicant for the purchase of charter halibut fishing vessels or 18 gear if the applicant otherwise qualifies for a loan under AS 16.10.801 - 19 16.10.890; the department may collect a refinancing loan origination charge as 20 provided by regulation; 21 (2) receive, take, hold, and administer any appropriation, transfer, gift, 22 grant, bequest, devise, or donation of money for the fund; 23 (3) establish amortization plans for repayment of loans, including 24 extensions of the terms of loans; 25 (4) allow an assumption of a loan if 26 (A) the applicant meets the requirements established under this 27 section; and 28 (B) approval of the assumption would be consistent with the 29 purposes of AS 16.10.801 - 16.10.890; 30 (5) establish the rate of interest for loans consistent with law; 31 (6) charge and collect fees for services provided under AS 16.10.801 -
01 16.10.890; 02 (7) adopt regulations under AS 44.62 necessary to carry out the 03 provisions of AS 16.10.801 - 16.10.890, including regulations to establish reasonable 04 fees for services provided; and 05 (8) designate agents and delegate powers as necessary to the agents. 06 Sec. 16.10.810. Eligibility. (a) For an applicant to be eligible for a loan under 07 AS 16.10.801 - 16.10.890, the applicant shall be a resident of the state, as determined 08 under (c) of this section, and shall 09 (1) qualify for the purchase of a charter halibut permit under applicable 10 law; 11 (2) qualify as a transferee for a charter halibut permit under applicable 12 law; 13 (3) purchase or construct a charter halibut fishing vessel; or 14 (4) upgrade an existing charter halibut fishing vessel or gear for the 15 purpose of improving engine fuel efficiency. 16 (b) In addition to the requirements set out in (a) of this section, the applicant 17 must provide to the department a document from a state financial institution stating 18 that 19 (1) the applicant has been denied a loan for the same purpose; or 20 (2) a loan from the financial institution is contingent on the applicant 21 also receiving a loan from the fund. 22 (c) To meet the residency requirements of (a) of this section, the applicant 23 (1) shall physically reside in this state and maintain a domicile in this 24 state during the 24 consecutive months preceding the date of application for the 25 program; and 26 (2) may not have 27 (A) declared or established residency in another state; or 28 (B) received residency or a benefit based on residency from 29 another state. 30 Sec. 16.10.815. Limitations on loans. (a) Except as provided in (b) of this 31 section, a loan under AS 16.10.801 - 16.10.890
01 (1) may not exceed $100,000 a year; 02 (2) may not exceed a term of 15 years, except for extensions under 03 AS 16.10.805; 04 (3) may not bear interest at a rate greater than the prime rate, as 05 defined in AS 44.88.599, plus two percentage points, but which may not be less than 06 six percent a year and not more than 10 1/2 percent a year; 07 (4) must be secured by a first priority lien on collateral acceptable to 08 the commissioner; and 09 (5) may not be made to a person who has a past due child support 10 obligation established by court order or by the child support services agency under 11 AS 25.27.160 - 25.27.220 at the time of application. 12 (b) The interest rate for loans for the improvement of engine fuel efficiency 13 must be two percentage points below the prime rate, as defined in AS 44.88.599, but 14 may not be less than six percent a year and not more than 10 1/2 percent a year. 15 (c) The total balances outstanding on loans made to a borrower under 16 AS 16.10.805 may not exceed $200,000. 17 (d) After the initial interest rate is set under (a) or (b) of this section for a loan 18 made under AS 16.10.801 - 16.10.890, the department may provide a reduction of the 19 interest rate of not more than two percent if at least 50 percent of the loan proceeds are 20 used by the borrower for engine fuel efficiency improvements if the upgrades use 21 products manufactured or produced in the state. When the department offers a 22 reduction under this subsection, the department shall provide the reduction to all loan 23 applicants who meet the criterion described in this subsection. In this subsection, 24 "manufactured or produced" means processing, developing, or making an item into a 25 new item with a distinct character and use. 26 Sec. 16.10.820. Default. If the borrower defaults on a note, the department 27 shall notify the borrower of the default and the consequences of default by mailing a 28 notice to the borrower's most recent address provided to the department by the 29 borrower or obtained by the department. 30 Sec. 16.10.825. Special account established. (a) The foreclosure expense 31 account is established as a special account within the commercial charter fisheries
01 revolving loan fund. 02 (b) The department may expend money credited to the foreclosure expense 03 account when necessary to protect the state's security interest in collateral on loans 04 granted under AS 16.10.815 or to defray expenses incurred during foreclosure 05 proceedings after an obligor defaults. 06 Sec. 16.10.830. Disposal of property acquired after default. The department 07 shall dispose of property acquired through default of a loan made under AS 16.10.801 08 - 16.10.890. Disposal must be made in a manner that serves the best interest of the 09 state and may include the amortization of payments over a period of years. 10 Sec. 16.10.835. Waiver of confidentiality. The commissioner may release 11 information about the borrower's loan to any individual if release of the information 12 has been authorized by the borrower. 13 Sec. 16.10.890. Definitions. In AS 16.10.801 - 16.10.890, 14 (1) "commissioner" means the commissioner of commerce, 15 community, and economic development; 16 (2) "department" means the Department of Commerce, Community, 17 and Economic Development. 18 Article 14. Mariculture Revolving Loan Fund. 19 Sec. 16.10.900. Mariculture revolving loan fund. (a) The mariculture 20 revolving loan fund is created within the Department of Commerce, Community, and 21 Economic Development to carry out the purposes of AS 16.10.900 - 16.10.945. 22 (b) The mariculture revolving loan fund consists of the following: 23 (1) money appropriated to, transferred to, or received by gift, grant, 24 devise, bequest, or donation to the fund; 25 (2) principal and interest payments or other income earned on loans or 26 investments of the fund; and 27 (3) money chargeable to principal or interest that is collected through 28 liquidation by foreclosure or other process on loans made under AS 16.10.900 - 29 16.10.945. 30 (c) Money in the fund may be used by the legislature to make appropriations 31 for costs of administering AS 16.10.900 - 16.10.945.
01 Sec. 16.10.905. Powers and duties of the department. The department may 02 (1) make loans to eligible applicants under AS 16.10.900 - 16.10.945 03 for the planning, construction, and operation of a mariculture business; 04 (2) receive, take, hold, and administer any appropriation, transfer, gift, 05 grant, bequest, devise, or donation of money for the fund; 06 (3) establish amortization plans for repayment of loans, including 07 extensions of the terms of loans; 08 (4) allow an assumption of a loan if 09 (A) the applicant meets the requirements established under this 10 section; and 11 (B) approval of the assumption would be consistent with the 12 purposes of AS 16.10.900 - 16.10.945; 13 (5) establish the rate of interest for loans consistent with law; 14 (6) charge and collect fees for services provided under AS 16.10.900 - 15 16.10.945; 16 (7) adopt regulations under AS 44.62 necessary to carry out the 17 provisions of AS 16.10.900 - 16.10.945, including regulations to establish reasonable 18 fees for services provided; and 19 (8) designate agents and delegate powers as necessary to the agents. 20 Sec. 16.10.910. Eligibility. (a) For an applicant to be eligible for a loan under 21 AS 16.10.900 - 16.10.945, the applicant shall 22 (1) be a resident of the state, as determined under (c) of this section; 23 (2) have a permitted mariculture farm location in this state; and 24 (3) have experience or training in the mariculture industry. 25 (b) In addition to the requirements set out in (a) of this section, the applicant 26 (1) may not be eligible for financing from other recognized 27 commercial lending institutions; or 28 (2) shall be able to obtain only a portion of the total loan request from 29 a recognized commercial lending institution. 30 (c) To meet the residency requirements of (a) of this section, the applicant 31 (1) shall physically reside in this state and maintain a domicile in this
01 state during the 24 consecutive months preceding the date of application for the 02 program; and 03 (2) may not have 04 (A) declared or established residency in another state; or 05 (B) received residency or a benefit based on residency from 06 another state. 07 Sec. 16.10.915. Limitations on loans. (a) Except as provided in (b) and (c) of 08 this section, a loan under AS 16.10.900 - 16.10.945 09 (1) may not exceed $100,000 a year; 10 (2) may not exceed a term of 20 years, except for extensions under 11 AS 16.10.905; 12 (3) may not bear interest at a rate greater than the prime rate, as 13 defined in AS 44.88.599, plus one percentage point, but which may not be less than 14 five percent a year and not more than nine percent a year; 15 (4) must be secured by a first priority lien on collateral acceptable to 16 the department; and 17 (5) may not be made to a person who has a past due child support 18 obligation established by court order or by the child support services agency under 19 AS 25.27.160 - 25.27.220 at the time of application. 20 (b) Subsequent loans may be made to the borrower under AS 16.10.910 if the 21 total of the balances outstanding on the loans received by the borrower does not 22 exceed $300,000. 23 (c) A loan under AS 16.10.910 may be made for the purchase of boats or 24 vessels determined to be integral to the operation of the farm. 25 (d) For a loan made under AS 16.10.900 - 16.10.945, the department may 26 provide a reduction of the interest rate of not more than two percent if at least 50 27 percent of the loan proceeds are used by the borrower for purchasing products 28 manufactured or produced in the state. When the department offers a reduction under 29 this subsection, the department shall provide the reduction to all loan applicants who 30 meet the criterion described in this subsection. In this subsection, "manufactured or 31 produced" means processing, developing, or making an item into a new item with a
01 distinct character and use. 02 Sec. 16.10.920. Repayment of principal of and interest on loans. The 03 department may not require the repayment of principal and interest on a loan made 04 under AS 16.10.910 during the first six years of the loan. Interest on the principal of a 05 loan made under AS 16.10.910 may be deferred for a period of not more than the first 06 six years of the loan. 07 Sec. 16.10.925. Default. If the borrower defaults on a note, the department 08 shall notify the borrower of the default and the consequences of default by mailing a 09 notice to the borrower's most recent address provided to the department by the 10 borrower or obtained by the department. 11 Sec. 16.10.930. Special account established. (a) The foreclosure expense 12 account is established as a special account in the mariculture revolving loan fund. 13 (b) The department may expend money credited to the foreclosure expense 14 account when necessary to protect the state's security interest in collateral on loans 15 granted under AS 16.10.910 or to defray expenses incurred during foreclosure 16 proceedings after an obligor defaults. 17 Sec. 16.10.935. Disposal of property acquired after default. The department 18 shall dispose of property acquired through default of a loan made under AS 16.10.900 19 - 16.10.945. Disposal must be made in a manner that serves the best interest of the 20 state and may include the amortization of payments over a period of years. 21 Sec. 16.10.940. Waiver of confidentiality. The commissioner may release 22 information about the borrower's loan to any individual if release of the information 23 has been authorized by the borrower. 24 Sec. 16.10.945. Definitions. In AS 16.10.900 - 16.10.945, 25 (1) "commissioner" means the commissioner of commerce, 26 community, and economic development; 27 (2) "department" means the Department of Commerce, Community, 28 and Economic Development; 29 (3) "mariculture" means the farming of shellfish and aquatic plants as 30 defined in AS 16.40.199. 31 * Sec. 2. AS 44.33 is amended by adding new sections to read:
01 Article 15. Alaska Microloan Revolving Loan Fund. 02 Sec. 44.33.950. Alaska microloan revolving loan fund. (a) The Alaska 03 microloan revolving loan fund is created in the Department of Commerce, 04 Community, and Economic Development to carry out the purposes of AS 44.33.950 - 05 44.33.990. 06 (b) The Alaska microloan revolving loan fund consists of the following: 07 (1) money appropriated to, transferred to, or received by gift, grant, 08 devise, bequest, or donation to the fund; 09 (2) principal and interest payments or other income earned on loans or 10 investments of the fund; 11 (3) money chargeable to principal or interest that is collected through 12 liquidation by foreclosure or other process on loans made under AS 44.33.950 - 13 44.33.990. 14 (c) Money in the fund may be used by the legislature to make appropriations 15 for costs of administering AS 44.33.950 - 44.33.990. 16 Sec. 44.33.955. Powers and duties of the department. The department may 17 (1) make loans to eligible applicants under AS 44.33.950 - 44.33.990 18 to be used for working capital, equipment, construction, or other commercial purposes 19 by a business located in the state; 20 (2) receive, take, hold, and administer any appropriation, transfer, gift, 21 grant, bequest, devise, or donation of money for the fund; 22 (3) establish amortization plans for repayment of loans, including 23 extensions of the terms of loans; 24 (4) allow an assumption of a loan if 25 (A) the applicant meets the requirements established under this 26 section; and 27 (B) approval of the assumption would be consistent with the 28 purposes of AS 44.33.950 - 44.33.990; 29 (5) establish the rate of interest for loans consistent with law; 30 (6) charge and collect fees for services provided under AS 44.33.950 - 31 44.33.990;
01 (7) adopt regulations under AS 44.62 necessary to carry out the 02 provisions of AS 44.33.950 - 44.33.990, including regulations to establish reasonable 03 fees for services provided; and 04 (8) designate agents and delegate powers as necessary to the agents. 05 Sec. 44.33.960. Eligibility. (a) For an applicant to be eligible for a loan under 06 AS 44.33.950 - 44.33.990, the applicant shall 07 (1) be a resident of the state, as determined under (b) of this section; 08 (2) provide a reasonable amount of money from other nonstate sources 09 for use on any project or enterprise for which money from a loan will be used; and 10 (3) if the requested loan amount is $35,000 or more, provide to the 11 department a document from a state financial institution stating that 12 (A) the applicant has been denied a loan for the same purpose; 13 or 14 (B) a loan from the financial institution is contingent on the 15 applicant also receiving a loan from the fund. 16 (b) To meet the residency requirements of (a) of this section, the applicant 17 (1) shall physically reside in this state and maintain a domicile in this 18 state during the 12 consecutive months preceding the date of application for the 19 program; and 20 (2) may not have 21 (A) declared or established residency in another state; or 22 (B) received residency or a benefit based on residency from 23 another state. 24 Sec. 44.33.965. Limitations on loans. (a) The department may use money 25 from the Alaska microloan revolving loan fund to make loans of up to $35,000 to a 26 person or loans of up to $70,000 to two or more persons. 27 (b) A loan under AS 44.33.950 - 44.33.990 28 (1) may not exceed a term of six years, except for extensions under 29 AS 44.33.955; 30 (2) may not bear interest at a rate greater than the prime rate, as 31 defined in AS 44.88.599, plus one percentage point but which may not be less than six
01 percent a year and not more than eight percent a year; 02 (3) must be secured by collateral acceptable to the commissioner; and 03 (4) may not be made to a person who has a past due child support 04 obligation established by court order or by the child support services agency under 05 AS 25.27.160 - 25.27.220 at the time of application. 06 Sec. 44.33.970. Special account established. (a) The foreclosure expense 07 account is established as a special account in the Alaska microloan revolving loan 08 fund. 09 (b) The department may expend money credited to the foreclosure expense 10 account when necessary to protect the state's security interest in collateral on loans 11 granted under AS 44.33.960 or to defray expenses incurred during foreclosure 12 proceedings after an obligor defaults. 13 Sec. 44.33.975. Default. If the borrower defaults on a note, the department 14 shall notify the borrower of the default and the consequences of default by mailing a 15 notice to the borrower's most recent address provided to the department by the 16 borrower or obtained by the department. 17 Sec. 44.33.980. Disposal of property acquired after default. The department 18 shall dispose of property acquired through default of a loan made under AS 44.33.950 19 - 44.33.990. Disposal must be made in a manner that serves the best interest of the 20 state and may include the amortization of payments over a period of years. 21 Sec. 44.33.990. Definitions. In AS 44.33.950 - 44.33.990, 22 (1) "commissioner" means the commissioner of commerce, 23 community, and economic development; 24 (2) "department" means the Department of Commerce, Community, 25 and Economic Development. 26 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).