SB 68: "An Act relating to the examinations, board, loans, records, and lobbying contracts of the Alaska Commercial Fishing and Agriculture Bank; and providing for an effective date."
00 SENATE BILL NO. 68 01 "An Act relating to the examinations, board, loans, records, and lobbying contracts of 02 the Alaska Commercial Fishing and Agriculture Bank; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.81.020(a) is amended to read: 06 (a) The bank shall be governed by a board of directors consisting of seven to 07 nine natural persons. The number is determined by the bank's bylaws. Two board 08 members shall be appointed by the governor of the state. The other board members 09 shall be elected by the members of the bank as provided in the bank's bylaws [, 10 EXCEPT THAT AT LEAST ONE OF THE ELECTED BOARD MEMBERS MUST 11 BE A RESIDENT FARMER]. 12 * Sec. 2. AS 44.81.215 is amended to read: 13 Sec. 44.81.215. Lending powers of the bank. The bank may 14 (1) make loans to individuals, including married couples, who are
01 residents of the state and who are engaged in commercial agriculture or fishing, 02 including harvesters, processors, suppliers, and marketers, if at least one of the 03 primary obligors on the loan is a member of the bank; 04 (2) make loans to corporations, partnerships, or limited liability 05 companies engaged in commercial agriculture or fishing if the majority interest of the 06 corporation, partnership, or limited liability company is beneficially owned by 07 residents of the state and a majority of the owners are residents of the state, and if at 08 least one of the primary obligors on a loan is a member of the bank; however, the bank 09 may not make a loan under this paragraph to a corporation, partnership, or limited 10 liability company for the purchase of a new or existing fishing boat or for the repair or 11 renovation of an existing fishing boat if the primary purpose of the fishing boat is to 12 commercially harvest fishery resources, unless the corporation, partnership, or limited 13 liability company is wholly owned and controlled by residents of the state, and unless 14 at least one of the primary obligors on the loan is a member of the bank; 15 (3) make loans for limited entry permits to individuals who fish 16 commercially if the individual is a state resident; loans made under this paragraph are 17 subject to AS 44.81.231; 18 (4) make loans [NOT TO EXCEED $500,000] to individuals, 19 including married couples, who are residents of the state and who will use the loan 20 proceeds to commercially engage in tourism within the state if at least one of the 21 primary obligors on the loan is a member of the bank; 22 (5) make loans [NOT TO EXCEED $1,000,000] to corporations, 23 partnerships, or limited liability companies that will use the loan proceeds to 24 commercially engage in tourism within the state if the majority interest of the 25 corporation, partnership, or limited liability company is beneficially owned by 26 residents of the state and a majority of the owners are residents of the state, and if at 27 least one of the primary obligors on the loan is a member of the bank; 28 (6) make loans [NOT TO EXCEED $500,000] to individuals, 29 including married couples, who are residents of the state and who will use the loan 30 proceeds to commercially engage in the development or exploitation of natural 31 resources within the state if at least one of the primary obligors on the loan is a
01 member of the bank; 02 (7) make loans [NOT TO EXCEED $1,000,000] to corporations, 03 partnerships, or limited liability companies that will use the loan proceeds to 04 commercially engage in the development or exploitation of natural resources within 05 the state if the majority interest of the corporation, partnership, or limited liability 06 company is beneficially owned by residents of the state and a majority of the owners 07 are residents of the state, and if at least one of the primary obligors on the loan is a 08 member of the bank; 09 (8) make a loan for capital investment or operating capital to a shore- 10 based fish processor, a timber processor, or an agricultural processor or harvester who 11 does not meet the residency or resident ownership requirements of (1) or (2) of this 12 section but meets the other requirements of (1) or (2) of this section, if a facility of 13 the processor or harvester is located in the state and the majority interest in the 14 processor or harvester is beneficially owned by residents of the United States; 15 (9) make a loan to a person, regardless of residency, if the board 16 determines that the loan is necessary to preserve the value of property held by the bank 17 as security for a loan that was made under AS 44.81.210 or this section and that is in 18 default; 19 (10) make loans, as provided in (1), (2), [OR] (4) - (8), (15), or (16) of 20 this section, that are secured by liens subordinate to valid first liens and security 21 agreements granted to another creditor; 22 (11) accept the pledge of a limited entry permit as security for a loan 23 made under this chapter subject to the conditions set out in AS 44.81.236 on pledges 24 of limited entry permits; 25 (12) make loans in participation with other lenders as provided in (1), 26 (2), [OR] (4) - (8), (15), or (16) of this section, whether or not an obligor is a member 27 of the bank; 28 (13) purchase or acquire participations in loans from other lenders if 29 the participations conform to the provisions of (1), (2), [OR] (4) - (8), (15), or (16) of 30 this section, whether or not an obligor is a member of the bank; 31 (14) issue certificates of loan participation to members and to other
01 individuals, corporations, partnerships, and limited liability companies, but the bank 02 may not issue a certificate of loan participation if the certificate would allow 03 participation by the member, individual, corporation, partnership, or limited liability 04 company in loans that individually or cumulatively involve more than 20 percent of 05 the commercial fishery entry permits issued for one type of gear in a specific fishery 06 resource administrative area; 07 (15) make a loan for capital investment or operating capital to an 08 operator of tourism-related activities who does not meet the residency or resident 09 ownership requirements of (4) or (5) of this section but meets the other 10 requirements of (4) or (5) of this section, if a facility of the operator is located in 11 the state and the majority interest in the operator is beneficially owned by 12 residents of the United States; 13 (16) make a loan for capital investment or operating capital to an 14 operator of facilities dedicated to the development or exploitation of natural 15 resources who does not meet the residency or resident ownership requirements of 16 (6) or (7) of this section but meets the other requirements of (6) or (7) of this 17 section, if a facility of the operator is located in the state and the majority interest 18 in the operator is beneficially owned by residents of the United States. 19 * Sec. 3. AS 44.81.260(a) is amended to read: 20 (a) The records of the bank that are identified with, or identifiable as being 21 derived from the records of, a specific borrower, member of the bank, or applicant for 22 a loan are confidential and may not be disclosed by the bank or by its directors, 23 officers, employees, or agents to a person other than the directors, officers, employees, 24 or agents of the bank, except 25 (1) when required by a federal or state statute; 26 (2) under AS 44.81.270 and 44.81.275; 27 (3) under a search warrant issued under federal law or the law of this 28 state; 29 (4) under a subpoena or court order issued in a civil action under 30 federal law or the law of this state; 31 (5) under a subpoena or court order issued in connection with a
01 proceeding before a federal grand jury or grand jury of this state; 02 (6) under a summons or subpoena issued by an agency or a department 03 of the United States or this state, or an officer, employee, or agent of the agency or 04 department; 05 (7) under a request by a financial institution, if the request is solely for 06 the stated written purpose of determining the credit worthiness of a member or 07 borrower as an applicant for credit, and if the information disclosed by the bank 08 pertains only to the payment history of the member or borrower; 09 (8) under a request by a lender that has extended or is considering 10 extending credit to the bank if the credit is or may be secured by the pledge of a loan 11 by the bank; 12 (9) when disclosed to the attorney general of the United States or to a 13 law enforcement agency of this state if the records may be relevant to a report or 14 investigation of a possible violation of federal law or a law of this state. 15 * Sec. 4. AS 44.81.260 is amended by adding a new subsection to read: 16 (e) Notwithstanding (a) and (b) of this section, the bank may provide a list of 17 the members of the bank who are eligible to serve as a director of the bank to members 18 of the bank who are eligible to vote for directors of the bank. 19 * Sec. 5. AS 44.81 is amended by adding a new section to read: 20 Sec. 44.81.275. Examinations. (a) At intervals that are not greater than 36 21 months, an examiner from the department shall perform an examination of the bank. 22 Each interval shall be determined by the commissioner. During the examination, the 23 examiner shall evaluate the bank's loan portfolio quality on a statistical basis and on 24 the appropriateness and effectiveness of the bank's policies, practices, and 25 management to carry out the bank's statutory purposes. 26 (b) The examiner shall prepare a summary report of the examiner's findings 27 and conclusions. The department shall distribute a copy of the report to the bank and 28 to the legislative auditor, but the records, information, and findings of the department 29 related to the examination are otherwise confidential under AS 06.01.025. 30 (c) The commissioner shall assess the bank a fee for the actual expenses 31 necessarily incurred by the department in connection with an examination performed
01 under this section. The fee must include the proportionate part of the salaries and cost 02 of employee benefits of the examiners while conducting the examination and while 03 preparing the summary report required by (b) of this section and the transportation 04 costs and per diem of each examiner while away from the examiner's duty station. The 05 fee may not exceed the actual cost to the department for the examination. The 06 commissioner shall assess the fee as soon as feasible after the examination has been 07 completed. The bank shall pay the assessment within 30 days after receiving the 08 commissioner's notice of the assessment. 09 (d) In this section, 10 (1) "commissioner" means the commissioner of commerce, 11 community, and economic development; 12 (2) "department" means the Department of Commerce, Community, 13 and Economic Development. 14 * Sec. 6. AS 44.81.350(7) and AS 44.99.030(a)(2) are repealed. 15 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 EXAMINATIONS. Notwithstanding AS 44.81.275, added by sec. 5 of this Act, the 18 Department of Commerce, Commerce, and Economic Development may not conduct an 19 examination under AS 44.81.275, added by sec. 5 of this Act, until on or after the date that is 20 one year after the effective date of this Act. 21 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).