Enrolled HB 76: Relating to the mariculture revolving loan fund and loans from the fund; and providing for an effective date.

00 Enrolled HB 76                                                                                                          
01 Relating to the mariculture revolving loan fund and loans from the fund; and providing for an                           
02 effective date.                                                                                                         
03                           _______________                                                                               
04    * Section 1. AS 16.10 is amended by adding a new section to article 14 to read:                                      
05            Sec. 16.10.890. Declaration of policy. It is the policy of the state, under                                  
06       AS 16.10.890 - 16.10.945, to promote mariculture and the enhancement of the state's                               
07       shellfish fisheries by means of long-term, low-interest loans.                                                    
08    * Sec. 2. AS 16.10.900 is amended to read:                                                                           
09            Sec. 16.10.900. Mariculture revolving loan fund. (a) The mariculture                                         
10       revolving loan fund is created in [WITHIN] the Department of Commerce,                                          
11       Community, and Economic Development to carry out the purposes of AS 16.10.890 -                                 
12       16.10.945 [AS 16.10.900 - 16.10.945].                                                                           
13            (b)  The mariculture revolving loan fund consists of the following:                                          
14                 (1)  money appropriated to, transferred to, or received by gift, grant,                                 
01       devise, bequest, or donation to the fund;                                                                         
02                 (2)  principal and interest payments or other income earned on loans or                                 
03       investments of the fund; and                                                                                      
04                 (3)  money chargeable to principal or interest that is collected through                                
05       liquidation by foreclosure or other process on loans made under AS 16.10.890 -                                  
06       16.10.945 [AS 16.10.900 - 16.10.945].                                                                           
07            (c)  Money in the fund may be used by the legislature to make appropriations                                 
08       for costs of administering AS 16.10.890 - 16.10.945 [AS 16.10.900 - 16.10.945].                                 
09    * Sec. 3. AS 16.10.900 is amended by adding a new subsection to read:                                                
10 (d)  Of the total amount available annually to the department to carry out the                                          
11 purposes of AS 16.10.890 - 16.10.945, less any funds appropriated under (c) of this                                     
12 section, 60 percent shall be available solely for making loans under                                                    
13 AS 16.10.910(a)(1) and the remainder shall be available solely for making loans under                                   
14       AS 16.10.910(a)(2).                                                                                               
15    * Sec. 4. AS 16.10.905 is amended to read:                                                                           
16            Sec. 16.10.905. Powers and duties of the department. The department may                                      
17 (1)  make loans to eligible applicants under AS 16.10.890 - 16.10.945                                                 
18       [AS 16.10.900 - 16.10.945] for the planning, construction, and operation of a                                     
19                      (A)  mariculture business;                                                                       
20 (B)  hatchery that artificially propagates marine aquatic                                                             
21            plants or shellfish; or                                                                                    
22                      (C)  a shellfish enhancement project;                                                            
23 (2)  receive, take, hold, and administer any appropriation, transfer, gift,                                             
24       grant, bequest, devise, or donation of money for the fund;                                                        
25 (3)  establish amortization plans for repayment of loans, including                                                     
26       extensions of the terms of loans;                                                                                 
27                 (4)  allow an assumption of a loan if                                                                   
28 (A)  the applicant meets the requirements established under this                                                        
29            section; and                                                                                                 
30 (B)  approval of the assumption would be consistent with the                                                            
31            purposes of AS 16.10.890 - 16.10.945 [AS 16.10.900 - 16.10.945];                                           
01                 (5)  establish the rate of interest for loans consistent with law;                                      
02                 (6)  charge and collect fees for services provided under AS 16.10.890 -                               
03       16.10.945 [AS 16.10.900 - 16.10.945];                                                                           
04                 (7)  adopt regulations under AS 44.62 necessary to carry out the                                        
05       provisions of AS 16.10.890 - 16.10.945 [AS 16.10.900 - 16.10.945], including                                    
06       regulations to establish reasonable fees for services provided; and                                               
07                 (8)  designate agents and delegate powers as necessary to the agents.                                   
08    * Sec. 5. AS 16.10.910(a) is amended to read:                                                                        
09            (a)  For an applicant to be eligible for a loan under AS 16.10.890 - 16.10.945                             
10       [AS 16.10.900 - 16.10.945], the applicant shall be                                                              
11                 (1)  [BE] a resident of the state who has                                                             
12 (A)  [, AS DETERMINED UNDER (c) OF THIS SECTION;                                                                      
13            (2) HAVE] a permitted mariculture farm location in this state; and                                           
14 (B) [(3)  HAVE] experience or training in the mariculture                                                             
15            industry; or                                                                                               
16 (2)  a resident of the state or entity organized under the laws of this                                               
17       state that                                                                                                      
18 (A)  holds a permit under AS 16.40.100 to operate a                                                                   
19            hatchery for the purpose of producing aquatic plants or shellfish; or                                      
20                      (B)  conducts shellfish enhancement projects.                                                    
21    * Sec. 6. AS 16.10.910(c) is amended to read:                                                                        
22 (c)  To meet the residency requirements of (a) of this section, an individual                                         
23       [THE] applicant                                                                                                   
24 (1)  shall physically reside in this state and maintain a domicile in this                                              
25 state during the 24 consecutive months preceding the date of application for the                                        
26       program; and                                                                                                      
27                 (2)  may not have                                                                                       
28                      (A)  declared or established residency in another state; or                                        
29 (B)  received residency or a benefit based on residency from                                                            
30            another state.                                                                                               
31    * Sec. 7. AS 16.10.915(a) is amended to read:                                                                        
01            (a)  Except as provided in (b) and (c) of this section, a loan under                                         
02       AS 16.10.890 - 16.10.945 [AS 16.10.900 - 16.10.945]                                                             
03                 (1)  may not exceed                                                                                     
04                      (A)  $100,000 a year for an applicant under                                                    
05            AS 16.10.910(a)(1); or                                                                                     
06                      (B)  $1,000,000 a year for an applicant under                                                    
07            AS 16.10.910(a)(2);                                                                                        
08                 (2)  may not, unless extended under AS 16.10.905, exceed a term of                                    
09                      (A)  20 years for an applicant under AS 16.10.910(a)(1); or                                    
10 (B)  30 years for an applicant under AS 16.10.910(a)(2) [,                                                            
11            EXCEPT FOR EXTENSIONS UNDER 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 or 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    * Sec. 8. AS 16.10.915(b) is amended to read:                                                                        
21            (b)  Subsequent loans may be made to a [THE] borrower under                                                
22 (1)  AS 16.10.910(a)(1), [AS 16.10.910] if the total of the balances                                                  
23       outstanding on the loans received by the borrower does not exceed $300,000; or                                  
24 (2)  AS 16.10.910(a)(2), if the total of the balances outstanding on                                                  
25       the loans received by the borrower does not exceed $1,000,000.                                                  
26    * Sec. 9. AS 16.10.915(c) is amended to read:                                                                        
27 (c)  A loan under AS 16.10.910 may be made for the purchase of boats or                                                 
28       vessels determined to be integral to the operation of the farm or hatchery.                                     
29    * Sec. 10. AS 16.10.915(d) is amended to read:                                                                       
30 (d)  For a loan made under AS 16.10.890 - 16.10.945 [AS 16.10.900 -                                                   
31 16.10.945], the department may provide a reduction of the interest rate of not more                                     
01 than two percent if at least 50 percent of the loan proceeds are used by the borrower                                   
02 for purchasing products manufactured or produced in the state. When the department                                      
03 offers a reduction under this subsection, the department shall provide the reduction to                                 
04 all loan applicants who meet the criterion described in this subsection. In this                                        
05 subsection, "manufactured or produced" means processing, developing, or making an                                       
06       item into a new item with a distinct character and use.                                                           
07    * Sec. 11. AS 16.10.915 is amended by adding a new subsection to read:                                               
08 (e)  The department may not make a loan to an applicant under                                                           
09 AS 16.10.910(a)(2) for a hatchery or shellfish enhancement project unless the                                           
10       department determines that the hatchery or enhancement project will                                               
11 (1)  be managed in a financially viable manner that is reasonably                                                       
12       expected to result in repayment of the loan; and                                                                  
13 (2)  provide a significant contribution to common property fisheries or                                                 
14       otherwise benefit the public interest.                                                                            
15    * Sec. 12. AS 16.10.920 is amended to read:                                                                          
16 Sec. 16.10.920. Repayment of principal of and interest on loans. The                                                    
17 department may not require the repayment of the principal of and interest on a loan                                 
18 made under AS 16.10.910 during the first six years of the loan. However, for a loan                                   
19 made under AS 16.10.910(a)(2), the department may defer repayment of the                                              
20 principal of and interest on the loan for an additional period not to exceed the                                      
21 first 11 years of the loan. The department may provide that interest [INTEREST]                                       
22 on the principal of a loan made under AS 16.10.910(a)(1) does not accrue during                                       
23 [AS 16.10.910 MAY BE DEFERRED FOR] a period [OF] not to exceed [MORE                                                  
24 THAN] the first six years of the loan. For a loan made under AS 16.10.910(a)(2),                                      
25 the department shall provide that interest on the principal of the loan does not                                      
26 accrue during the first six years of the loan, and the department may provide                                         
27 that interest on the principal of the loan does not accrue during an additional                                       
28       period not to exceed the first 11 years of the loan.                                                            
29    * Sec. 13. AS 16.10 is amended by adding a new section to read:                                                      
30 Sec. 16.10.923. Voluntary assessment on sale of shellfish. (a) An association                                           
31 of persons who hold entry permits under AS 16.43 comprising at least 51 percent of                                      
01       the persons holding entry permits and actively participating in a fishery to be benefited                         
02 by a hatchery program may levy and collect an assessment from among its members                                         
03 for the purpose of securing and repaying a loan made under AS 16.10.890 - 16.10.945.                                    
04 (b)  Upon satisfactory demonstration to the department that an assessment                                               
05 levied under this section may reasonably be relied on to secure and repay a loan to be                                  
06       made under AS 16.10.890 - 16.10.945, the department may make the loan.                                            
07    * Sec. 14. AS 16.10.935 is amended to read:                                                                          
08            Sec. 16.10.935. Disposal of property acquired after default. The department                                  
09       shall dispose of property acquired through default of a loan made under AS 16.10.890                            
10 - 16.10.945 [AS 16.10.900 - 16.10.945]. Disposal must be made in a manner that                                        
11 serves the best interest of the state and may include the amortization of payments over                                 
12       a period of years.                                                                                                
13    * Sec. 15. AS 16.10.945 is amended to read:                                                                          
14 Sec. 16.10.945. Definitions. In AS 16.10.890 - 16.10.945 [AS 16.10.900 -                                              
15       16.10.945],                                                                                                       
16 (1)  "commissioner" means the commissioner of commerce,                                                                 
17       community, and economic development;                                                                              
18 (2)  "department" means the Department of Commerce, Community,                                                          
19       and Economic Development;                                                                                         
20                 (3)  "hatchery" has the meaning given in AS 16.40.199;                                                
21 (4)  "mariculture" means the farming of shellfish and aquatic plants as                                               
22       defined in AS 16.40.199;                                                                                        
23                 (5)  "shellfish enhancement project" means a project to                                               
24 (A)  augment the yield or harvest of shellfish above                                                                  
25 naturally occurring levels using a natural, artificial, or semiartificial                                             
26            production system; or                                                                                      
27 (B)  rehabilitate a shellfish stock by restoring it to its                                                            
28            naturally occurring levels of productivity.                                                                
29    * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to                           
30 read:                                                                                                                   
31 APPLICABILITY. Changes made by this Act to the terms of loans made under                                                
01 AS 16.10.890 - 16.10.945 do not apply to a loan made before the effective date of this Act.                             
02    * Sec. 17. This Act takes effect immediately under AS 01.10.070(c).