CSSB 125(FIN): "An Act relating to commercial fishing loans; relating to subsidiary corporations of the Alaska Housing Finance Corporation; and providing for an effective date."
00 CS FOR SENATE BILL NO. 125(FIN) 01 "An Act relating to commercial fishing loans; relating to subsidiary corporations of the 02 Alaska Housing Finance Corporation; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.310(a) is amended to read: 05 (a) The department may 06 (1) make loans 07 (A) to individual commercial fishermen who have been state 08 residents for a continuous period of two years immediately preceding the date 09 of application for a loan under AS 16.10.300 - 16.10.370, who have had an 10 annual crewmember or commercial fishing license under AS 16.05.480 or a 11 permit under AS 16.43 for the year immediately preceding the date of 12 application and any other two of the past five years, and who actively 13 participated in the fishery during those periods 14 (i) for the purchase of entry permits;
01 (ii) to upgrade existing vessels and gear for the purpose 02 of improving the quality of Alaska seafood products; or 03 (iii) for propulsion engine or generator engine 04 replacements on existing vessels for the purpose of improving fuel 05 efficiency; 06 (B) to an individual for the repair, restoration, or upgrading of 07 existing vessels and gear, for the purchase of entry permits and gear, and for 08 the construction and purchase of vessels, if the individual has been a state 09 resident for a continuous period of two years immediately preceding the date 10 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 11 financing from a state financial institution as defined in AS 06.01.050, a 12 federally chartered financial institution, or the Commercial Fishing and 13 Agricultural Bank, and 14 (i) because of lack of training or lack of employment 15 opportunities in the area of residence, does not have occupational 16 opportunities available other than commercial fishing; or 17 (ii) is economically dependent on commercial fishing 18 for a livelihood and for whom commercial fishing has been a traditional 19 way of life in Alaska; 20 (C) for the purchase of quota shares for fisheries in or off the 21 state by individual commercial fishermen who 22 (i) have been state residents for a continuous period of 23 two years immediately preceding the date of application for a loan 24 under AS 16.10.300 - 16.10.370; 25 (ii) for any two of the past five years, possessed an 26 annual crewmember or commercial fishing license under AS 16.05.480 27 or a permit under AS 16.43 and actively participated in a fishery for 28 which the license or permit was issued; 29 (iii) qualify as transferees for quota shares under 30 applicable law; and 31 (iv) are not eligible for financing from other recognized
01 commercial lending institutions to purchase quota shares; 02 (D) to an individual commercial fisherman to satisfy past due 03 federal tax obligations, if the fisherman has been a state resident for a 04 continuous period of two years immediately preceding the date of application 05 for the loan, has filed past and current federal tax returns with the federal 06 government, has executed an agreement with the federal government for 07 repayment of past due federal tax obligations, and either 08 (i) because of lack of training or lack of employment 09 opportunities in the area of residence, does not have occupational 10 opportunities available other than commercial fishing; or 11 (ii) is economically dependent on commercial fishing 12 for a livelihood and for whom commercial fishing has been a traditional 13 way of life in Alaska; 14 (E) for the purchase of fishing quota shares by a community 15 quota entity eligible under federal statute or regulation to purchase the fishing 16 quota shares if the community quota entity is not eligible or qualified for 17 financing from other recognized commercial lending institutions to purchase 18 the fishing quota shares; 19 (F) to an individual for the upgrade of existing tender vessels 20 and gear to improve the quality of Alaska seafood products, if the individual 21 has been a state resident for a continuous period of two years immediately 22 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 23 (2) designate agents and delegate its powers to them as necessary; 24 (3) adopt regulations necessary to carry out the provisions of 25 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 26 services provided; 27 (4) establish amortization plans for repayment of loans, which may 28 include extensions for poor fishing seasons or for adverse market conditions for 29 Alaska products; 30 (5) enter into agreements with private lending institutions, other state 31 agencies, or agencies of the federal government to carry out the purposes of
01 AS 16.10.300 - 16.10.370; 02 (6) enter into agreements with other agencies or organizations to create 03 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 04 the state; 05 (7) allow an assumption of a loan if 06 (A) the applicant has been a state resident for a continuous 07 period of two years immediately preceding the date of the request for an 08 assumption; and 09 (B) approval of the assumption would be consistent with the 10 purposes of AS 16.10.300; an applicant for a loan assumption may not be 11 disqualified because the applicant does not meet the loan eligibility 12 requirements of (1) of this subsection; 13 (8) prequalify loan applicants for a limited entry permit loan or a quota 14 shares loan and charge a fee not to exceed $200 for prequalification; 15 (9) charge and collect the fees established under this subsection; 16 (10) refinance a debt obligation incurred by a borrower or borrowers 17 under this section if the borrower or borrowers otherwise qualify for a loan under 18 AS 16.10.300 - 16.10.370; 19 (11) refinance debt obligations, not to exceed $400,000 [$200,000], 20 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 21 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 22 16.10.370; the department may collect a refinancing loan origination charge as 23 provided by regulation. 24 * Sec. 2. AS 16.10.310(a), as amended by sec. 1 of this Act, is amended to read: 25 (a) The department may 26 (1) make loans 27 (A) to individual commercial fishermen who have been state 28 residents for a continuous period of two years immediately preceding the date 29 of application for a loan under AS 16.10.300 - 16.10.370, who have had an 30 annual crewmember or commercial fishing license under AS 16.05.480 or a 31 permit under AS 16.43 for the year immediately preceding the date of
01 application and any other two of the past five years, and who actively 02 participated in the fishery during those periods 03 (i) for the purchase of entry permits; 04 (ii) to upgrade existing vessels and gear for the purpose 05 of improving the quality of Alaska seafood products; or 06 (iii) for propulsion engine or generator engine 07 replacements on existing vessels for the purpose of improving fuel 08 efficiency; 09 (B) to an individual for the repair, restoration, or upgrading of 10 existing vessels and gear, for the purchase of entry permits and gear, and for 11 the construction and purchase of vessels, if the individual has been a state 12 resident for a continuous period of two years immediately preceding the date 13 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 14 financing from a state financial institution as defined in AS 06.01.050, a 15 federally chartered financial institution, or the Commercial Fishing and 16 Agricultural Bank, and 17 (i) because of lack of training or lack of employment 18 opportunities in the area of residence, does not have occupational 19 opportunities available other than commercial fishing; or 20 (ii) is economically dependent on commercial fishing 21 for a livelihood and for whom commercial fishing has been a traditional 22 way of life in Alaska; 23 (C) for the purchase of quota shares for fisheries in or off the 24 state by individual commercial fishermen who 25 (i) have been state residents for a continuous period of 26 two years immediately preceding the date of application for a loan 27 under AS 16.10.300 - 16.10.370; 28 (ii) for any two of the past five years, possessed an 29 annual crewmember or commercial fishing license under AS 16.05.480 30 or a permit under AS 16.43 and actively participated in a fishery for 31 which the license or permit was issued;
01 (iii) qualify as transferees for quota shares under 02 applicable law; and 03 (iv) are not eligible for financing from other recognized 04 commercial lending institutions to purchase quota shares; 05 (D) to an individual commercial fisherman to satisfy past due 06 federal tax obligations, if the fisherman has been a state resident for a 07 continuous period of two years immediately preceding the date of application 08 for the loan, has filed past and current federal tax returns with the federal 09 government, has executed an agreement with the federal government for 10 repayment of past due federal tax obligations, and either 11 (i) because of lack of training or lack of employment 12 opportunities in the area of residence, does not have occupational 13 opportunities available other than commercial fishing; or 14 (ii) is economically dependent on commercial fishing 15 for a livelihood and for whom commercial fishing has been a traditional 16 way of life in Alaska; 17 (E) for the purchase of fishing quota shares by a community 18 quota entity eligible under federal statute or regulation to purchase the fishing 19 quota shares if the community quota entity is not eligible or qualified for 20 financing from other recognized commercial lending institutions to purchase 21 the fishing quota shares; 22 (F) to an individual for the upgrade of existing tender vessels 23 and gear to improve the quality of Alaska seafood products, if the individual 24 has been a state resident for a continuous period of two years immediately 25 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 26 (2) designate agents and delegate its powers to them as necessary; 27 (3) adopt regulations necessary to carry out the provisions of 28 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 29 services provided; 30 (4) establish amortization plans for repayment of loans, which may 31 include extensions for poor fishing seasons or for adverse market conditions for
01 Alaska products; 02 (5) enter into agreements with private lending institutions, other state 03 agencies, or agencies of the federal government to carry out the purposes of 04 AS 16.10.300 - 16.10.370; 05 (6) enter into agreements with other agencies or organizations to create 06 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 07 the state; 08 (7) allow an assumption of a loan if 09 (A) the applicant has been a state resident for a continuous 10 period of two years immediately preceding the date of the request for an 11 assumption; and 12 (B) approval of the assumption would be consistent with the 13 purposes of AS 16.10.300; an applicant for a loan assumption may not be 14 disqualified because the applicant does not meet the loan eligibility 15 requirements of (1) of this subsection; 16 (8) prequalify loan applicants for a limited entry permit loan or a quota 17 shares loan and charge a fee not to exceed $200 for prequalification; 18 (9) charge and collect the fees established under this subsection; 19 (10) refinance a debt obligation incurred by a borrower or borrowers 20 under this section if the borrower or borrowers otherwise qualify for a loan under 21 AS 16.10.300 - 16.10.370; 22 (11) refinance debt obligations, not to exceed $200,000 [$400,000], 23 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 24 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 25 16.10.370; the department may collect a refinancing loan origination charge as 26 provided by regulation. 27 * Sec. 3. AS 16.10.320(a) is amended to read: 28 (a) Except as permitted in (h) and (l) of this section, a loan under 29 AS 16.10.300 - 16.10.370 30 (1) may not exceed a term of 15 years, except for extensions under 31 AS 16.10.310(a)(4);
01 (2) may not bear interest 02 (A) exceeding the prime rate, as defined by AS 44.88.599, plus 03 two percentage points; or 04 (B) at a rate of more than 5.25 [10 1/2] percent a year; [OR 05 (C) AT A RATE THAT IS LESS THAN THE COST OF 06 FUNDS TO THE STATE;] 07 (3) must be secured by a first priority lien and appropriate security 08 agreement; 09 (4) may not exceed 80 percent of the appraised value of the collateral 10 used to secure the loan; and 11 (5) may not be made to a person who has a past due child support 12 obligation established by court order or by the child support services agency under 13 AS 25.27.160 - 25.27.220 at the time of application. 14 * Sec. 4. AS 16.10.320(a), as amended by sec. 3 of this Act, is amended to read: 15 (a) Except as permitted in (h) and (l) of this section, a loan under 16 AS 16.10.300 - 16.10.370 17 (1) may not exceed a term of 15 years, except for extensions under 18 AS 16.10.310(a)(4); 19 (2) may not bear interest 20 (A) exceeding the prime rate, as defined by AS 44.88.599, plus 21 two percentage points; [OR] 22 (B) at a rate of more than 10 1/2 [5.25] percent a year; or 23 (C) at a rate that is less than the cost of funds to the state; 24 (3) must be secured by a first priority lien and appropriate security 25 agreement; 26 (4) may not exceed 80 percent of the appraised value of the collateral 27 used to secure the loan; and 28 (5) may not be made to a person who has a past due child support 29 obligation established by court order or by the child support services agency under 30 AS 25.27.160 - 25.27.220 at the time of application. 31 * Sec. 5. AS 16.10.320(d) is amended to read:
01 (d) The total of balances outstanding on loans made to a borrower under 02 AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on 03 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $400,000 04 [$200,000]. The total of balances outstanding on loans made to a borrower under 05 AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on 06 loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 07 obligations may not exceed $35,000. The total of balances outstanding on loans made 08 under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible 09 under federal statute or regulation to establish or participate in the establishment of a 10 community quota entity. The total of balances outstanding on loans made to a 11 borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans 12 made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, 13 including debt refinancing under AS 16.10.310(a), made to a borrower under 14 AS 16.10.300 - 16.10.370 may not exceed $400,000. 15 * Sec. 6. AS 16.10.320(d), as amended by sec. 5 of this Act, is amended to read: 16 (d) The total of balances outstanding on loans made to a borrower under 17 AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on 18 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $200,000 19 [$400,000]. The total of balances outstanding on loans made to a borrower under 20 AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on 21 loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 22 obligations may not exceed $35,000. The total of balances outstanding on loans made 23 under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible 24 under federal statute or regulation to establish or participate in the establishment of a 25 community quota entity. The total of balances outstanding on loans made to a 26 borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans 27 made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, 28 including debt refinancing under AS 16.10.310(a), made to a borrower under 29 AS 16.10.300 - 16.10.370 may not exceed $400,000. 30 * Sec. 7. AS 18.56.010 is amended by adding a new subsection to read: 31 (h) The legislature finds that permitting the Alaska Housing Finance
01 Corporation to create a subsidiary to assist in the financing of sustainable energy 02 development serves a public purpose benefitting the people of the state. The Alaska 03 Housing Finance Corporation is empowered to act on behalf of the state and its people 04 in serving this public purpose for the benefit of the general public. 05 * Sec. 8. AS 18.56.086(a) is amended to read: 06 (a) The corporation may create subsidiary corporations for the purpose of 07 financing or facilitating the financing of school construction, facilities for the 08 University of Alaska, facilities for ports and harbors, the acquisition, development, 09 management, or operation of [AFFORDABLE] housing, prepayment of all or a 10 portion of a governmental employer's share of unfunded accrued actuarial liability of 11 retirement systems, sustainable energy development, or other capital projects. A 12 subsidiary corporation created under this section may be incorporated under 13 AS 10.20.146 - 10.20.166. The corporation may transfer assets of the corporation to a 14 subsidiary created under this section. A subsidiary created under this section may 15 borrow money and issue bonds as evidence of that borrowing, and has all the powers 16 of the corporation that the corporation grants to it. However, a subsidiary created for 17 the purpose of financing or facilitating the financing of prepayment of a governmental 18 employer's share of unfunded accrued actuarial liability of retirement systems may 19 borrow money and issue bonds only after submitting a proposal to the Legislative 20 Budget and Audit Committee under (b) of this section, if the state bond rating is the 21 equivalent of AA- or better, and subject to AS 37.15.903. Unless otherwise provided 22 by the corporation, the debts, liabilities, and obligations of a subsidiary corporation 23 created under this section are not the debts, liabilities, or obligations of the 24 corporation. 25 * Sec. 9. AS 18.56.086 is amended by adding a new subsection to read: 26 (c) In managing a subsidiary created for the purpose of financing or 27 facilitating the financing of sustainable energy development, the corporation shall 28 consider the state energy policy described in AS 44.99.115 and shall prioritize 29 sustainable energy development that supports energy efficiency and renewable energy 30 for residential buildings, commercial buildings, and community facilities. 31 * Sec. 10. AS 18.56.090(e) is amended to read:
01 (e) In furtherance of its corporate purpose, the corporation may, in cooperation 02 with the Alaska Energy Authority, provide technical assistance to 03 (1) municipalities that is related to residential and commercial 04 building energy codes and energy efficiency standards; and 05 (2) support or establish public, quasi-public, or nonprofit entities 06 that provide financial assistance for sustainable energy development projects in 07 the state or delivering energy to the state, including community and low-income 08 lenders and capital providers. 09 * Sec. 11 AS 18.56.900 is amended by adding a new paragraph to read: 10 (3) "sustainable energy development" means 11 (A) renewable energy generation from sources that are 12 continually replenished by nature, such as the sun, wind, water, or biological 13 processes; 14 (B) building energy efficiency, including switching to 15 renewable fuels and electrification; 16 (C) electrical infrastructure incorporating 17 (i) energy storage to support clean energy distribution, 18 including remote and non-remote microgrids and smart-grid 19 applications; or 20 (ii) sustainable technologies, including distributed 21 generation, advanced battery, and combined heat and power; 22 (D) clean transportation, including 23 (i) electric vehicles powered by batteries, hydrogen 24 vehicles, plug-in hybrid electric vehicles, and other zero-emissions 25 vehicles for consumers, businesses, government, and public transit; and 26 (ii) electric vehicle charging and fueling infrastructure; 27 or 28 (E) any greenhouse gas emissions reduction, energy efficiency, 29 or zero-emission technology approved by the corporation. 30 * Sec. 12. Sections 2, 4, and 6 of this Act take effect July 1, 2027. 31 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect immediately under
01 AS 01.10.070(c).