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HB 76: "An Act relating to the mariculture revolving loan fund and loans from the fund; and providing for an effective date."

00                              HOUSE BILL NO. 76                                                                          
01 "An Act relating to the mariculture revolving loan fund and loans from the fund; and                                    
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 16.10.905 is amended to read:                                                                      
05            Sec. 16.10.905. Powers and duties of the department. The department may                                    
06                 (1)  make loans to eligible applicants under AS 16.10.900 - 16.10.945                                   
07       for the planning, construction, and operation of a                                                                
08                      (A)  mariculture business; or                                                              
09                      (B)  hatchery that artificially propagates aquatic plants and                                  
10            shellfish for sale to aquatic farms;                                                                     
11                 (2)  receive, take, hold, and administer any appropriation, transfer, gift,                             
12       grant, bequest, devise, or donation of money for the fund;                                                        
13                 (3)  establish amortization plans for repayment of loans, including                                     
14       extensions of the terms of loans;                                                                                 
01                 (4)  allow an assumption of a loan if                                                                   
02                      (A)  the applicant meets the requirements established under this                                   
03            section; and                                                                                                 
04                      (B)  approval of the assumption would be consistent with the                                       
05            purposes of AS 16.10.900 - 16.10.945;                                                                        
06                 (5)  establish the rate of interest for loans consistent with law;                                      
07                 (6)  charge and collect fees for services provided under AS 16.10.900 -                                 
08       16.10.945;                                                                                                        
09                 (7)  adopt regulations under AS 44.62 necessary to carry out the                                        
10 provisions of AS 16.10.900 - 16.10.945, including regulations to establish reasonable                                   
11       fees for services provided; and                                                                                   
12                 (8)  designate agents and delegate powers as necessary to the agents.                                   
13    * Sec. 2. AS 16.10.910(a) is amended to read:                                                                      
14 (a)  For an applicant to be eligible for a loan under AS 16.10.900 - 16.10.945,                                         
15       the applicant shall be                                                                                        
16                 (1)  [BE] a resident of the state who has                                                           
17 (A)  [, AS DETERMINED UNDER (c) OF THIS SECTION;                                                                    
18            (2)  HAVE] a permitted mariculture farm location in this state; and                                          
19 (B) [(3)  HAVE] experience or training in the mariculture                                                           
20            industry; or                                                                                             
21 (2)  a resident of the state or entity organized under the laws of this                                             
22 state that holds a permit under AS 16.40.100 to operate a hatchery for the                                          
23       purpose of supplying aquatic plants or shellfish to an aquatic farm.                                          
24    * Sec. 3. AS 16.10.910(c) is amended to read:                                                                      
25 (c)  To meet the residency requirements of (a) of this section, an individual                                       
26       [THE] applicant                                                                                                   
27 (1)  shall physically reside in this state and maintain a domicile in this                                              
28 state during the 24 consecutive months preceding the date of application for the                                        
29       program; and                                                                                                      
30                 (2)  may not have                                                                                       
31                      (A)  declared or established residency in another state; or                                        
01                      (B)  received residency or a benefit based on residency from                                       
02            another state.                                                                                               
03    * Sec. 4. AS 16.10.915(a) is amended to read:                                                                      
04            (a)  Except as provided in (b) and (c) of this section, a loan under                                         
05       AS 16.10.900 - 16.10.945                                                                                          
06                 (1)  may not exceed                                                                                     
07                      (A)  $100,000 a year for an applicant under                                                
08            AS 16.10.910(a)(1); or                                                                                   
09                      (B)  $1,000,000 a year for an applicant under                                                  
10            AS 16.10.910(a)(2);                                                                                    
11 (2)  may not exceed a term of 20 years, except for extensions under                                                     
12       AS 16.10.905;                                                                                                     
13 (3)  may not bear interest at a rate greater than the prime rate, as                                                    
14 defined in AS 44.88.599, plus one percentage point, but which may not be less than                                      
15       five percent a year or more than nine percent a year;                                                             
16 (4)  must be secured by a first priority lien on collateral acceptable to                                               
17       the department; and                                                                                               
18 (5)  may not be made to a person who has a past due child support                                                       
19 obligation established by court order or by the child support services agency under                                     
20       AS 25.27.160 - 25.27.220 at the time of application.                                                              
21    * Sec. 5. AS 16.10.915(b) is amended to read:                                                                      
22            (b)  Subsequent loans may be made to a [THE] borrower under                                              
23 (1)  AS 16.10.910(a)(1), [AS 16.10.910] if the total of the balances                                                
24       outstanding on the loans received by the borrower does not exceed $300,000; or                                
25 (2)  AS 16.10.910(a)(2), if the total of the balances outstanding on                                                
26       the loans received by the borrower does not exceed $1,000,000.                                                
27    * Sec. 6. AS 16.10.915(c) is amended to read:                                                                      
28 (c)  A loan under AS 16.10.910 may be made for the purchase of boats or                                                 
29       vessels determined to be integral to the operation of the farm or hatchery.                                   
30    * Sec. 7. AS 16.10.915 is amended by adding a new subsection to read:                                              
31 (e)  The total of balances outstanding on loans made to borrowers under                                                 
01       AS 16.10.910(a)(2) may not exceed 40 percent of the principal of the mariculture                                  
02       revolving loan fund.                                                                                              
03    * Sec. 8. AS 16.10.945 is amended by adding a new paragraph to read:                                               
04                 (4)  "hatchery" has the meaning given in AS 16.40.199.                                                  
05    * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).