CSSB 34(L&C): "An Act establishing the Alaska small business revolving loan fund; relating to the fund and loans from the fund; and providing for an effective date."
00 CS FOR SENATE BILL NO. 34(L&C) 01 "An Act establishing the Alaska small business revolving loan fund; relating to the fund 02 and loans from the fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 SHORT TITLE. This Act may be known as the Alaska Small Business Act. 07 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 LEGISLATIVE INTENT. It is the legislature's intent in this Act to provide small, 10 short-term loans to small businesses in order to promote economic development in the state 11 by creating jobs and economic opportunities for the citizens of the state. 12 * Sec. 3. AS 44.33 is amended by adding new sections to read: 13 Article 15. Alaska Small Business Revolving Loan Fund. 14 Sec. 44.33.950. Alaska small business revolving loan fund. (a) A revolving
01 loan fund to be known as the Alaska small business revolving loan fund is created in 02 the general fund. The Department of Commerce, Community, and Economic 03 Development may use money in the fund to carry out the purposes of AS 44.33.950 - 04 44.33.990. 05 (b) The fund consists of the following: 06 (1) money appropriated to the fund, including money appropriated 07 from the following sources: 08 (A) interest payments or other income earned on loans or 09 investments of the fund; 10 (B) money chargeable to interest that is collected through 11 liquidation by foreclosure or other process on loans made under AS 44.33.950 12 - 44.33.990; and 13 (C) money received by gift, grant, devise, bequest, or donation 14 to the fund; 15 (2) principal payments on loans from the fund; 16 (3) money chargeable to principal that is collected through liquidation 17 by foreclosure or other process on loans made under AS 44.33.950 - 44.33.990. 18 (c) Money in the fund may be used by the legislature to make appropriations 19 for costs of administering AS 44.33.950 - 44.33.990. 20 Sec. 44.33.955. Powers and duties of the department. The department may 21 (1) make loans from the fund to eligible applicants under 22 AS 44.33.960(a)(1) to be used for working capital, equipment, construction, or other 23 commercial purposes by a business located in the state; 24 (2) receive, take, hold, and administer any appropriation, gift, grant, 25 bequest, devise, or donation of money for the fund; 26 (3) establish amortization plans for repayment of loans, including 27 extensions of the terms of loans; 28 (4) allow an assumption of a loan if 29 (A) the applicant meets the requirements established under 30 AS 44.33.960; and 31 (B) approval of the assumption would be consistent with the
01 purposes of this section; 02 (5) establish the rate of interest for loans consistent with law; 03 (6) charge and collect fees for services provided under AS 44.33.950 - 04 44.33.990; 05 (7) adopt regulations under AS 44.62 necessary to carry out the 06 provisions of AS 44.33.950 - 44.33.990, including regulations to establish reasonable 07 fees for services provided; and 08 (8) designate agents and delegate powers as necessary to the agents. 09 Sec. 44.33.960. Eligibility. (a) For an applicant to be eligible for a loan under 10 AS 44.33.950 - 44.33.990, 11 (1) the applicant shall be a resident of the state as determined under (b) 12 of this section; 13 (2) the applicant shall provide from a source that is not a state agency 14 or a public corporation of the state 20 percent of the money to be used on the project 15 or enterprise for which money from a loan will be used; and 16 (3) if the requested loan amount is $35,000 or more, the applicant shall 17 provide to the department a document from a state financial institution that states 18 (A) the applicant has been denied a loan for the same purpose; 19 or 20 (B) a loan from the financial institution is contingent on the 21 applicant's also receiving a loan from the fund. 22 (b) 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 12 consecutive months before the date of application for the program; 25 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 in the previous 12 months. 30 (c) In this section, "state financial institution" means a financial institution that 31 has a physical location in the state from which the state financial institution does
01 business. 02 Sec. 44.33.965. Limitations on loans. (a) The department may use money 03 from the fund to make loans of up to $50,000 to one individual or loans of up to 04 $100,000 to two or more individuals. 05 (b) A loan established under AS 44.33.950 - 44.33.990 06 (1) may not exceed a term of six years, except for extensions 07 authorized under AS 44.33.955 or regulations adopted under AS 44.33.955; 08 (2) may not bear interest exceeding the prime rate, as defined in 09 AS 44.88.599, plus one percentage point, but interest may not be less than six percent 10 a year; 11 (3) must be secured by collateral acceptable to the commissioner; and 12 (4) may not be made to an individual who has a past due child support 13 obligation established by court order or by the child support services agency under 14 AS 25.27.160 - 25.27.220 at the time of application. 15 Sec. 44.33.970. Special account established. (a) The foreclosure expense 16 account is established as a special account in the fund. 17 (b) The department may expend money credited to the foreclosure expense 18 account when necessary to protect the state's security interest in collateral on loans 19 granted under AS 44.33.965 or to defray expenses incurred during foreclosure 20 proceedings after a default by an obligor. 21 Sec. 44.33.975. Disposal of property acquired by default or foreclosure. 22 The department shall dispose of property acquired through default or foreclosure of a 23 loan made under AS 44.33.950 - 44.33.990. Disposal must be made in a manner that 24 serves the best interest of the state and may include the amortization of payments over 25 a period of years. 26 Sec. 44.33.990. Definitions. In AS 44.33.950 - 44.33.990, unless the context 27 otherwise requires, 28 (1) "commissioner" means the commissioner of commerce, 29 community, and economic development; 30 (2) "department" means the Department of Commerce, Community, 31 and Economic Development;
01 (3) "fund" means the Alaska small business revolving loan fund. 02 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 05 Economic Development may adopt regulations under AS 44.62 (Administrative Procedure 06 Act) necessary to implement the changes made in sec. 3 of this Act. The regulations take 07 effect under AS 44.62 but not before July 1, 2011. 08 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 09 * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect July 1, 2011.