00 HOUSE BILL NO. 340 01 "An Act establishing the Alaska capstone avionics revolving loan fund and relating to 02 the fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 44.33 is amended by adding new sections to read: 05 Article 6A. Alaska Capstone Avionics Revolving Loan Fund. 06 Sec. 44.33.650. Declaration of policy. It is the policy of the state, under 07 AS 44.33.650 - 44.33.690, to increase the safety of air carrier, air taxi, and general 08 aviation intrastate air transportation in the state by providing low interest loans to 09 qualified applicants for the purpose of purchasing and installing capstone avionics 10 equipment. 11 Sec. 44.33.655. Alaska capstone avionics revolving loan fund. (a) There is 12 created within the Department of Commerce, Community, and Economic 13 Development a revolving loan fund to be known as the Alaska capstone avionics 14 revolving loan fund to carry out the purposes of AS 44.33.650 - 44.33.690. 01 (b) The Alaska capstone avionics revolving loan fund consists of the 02 following: 03 (1) money appropriated to, transferred to, or received by gift, devise, 04 bequest, or donation to the fund; 05 (2) principal and interest payments or other income earned on loans 06 or investments of the fund; 07 (3) money chargeable to principal or interest that is collected through 08 liquidation by foreclosure or other process on loans made under AS 44.33.650 - 09 44.33.690. 10 (c) Money in the fund may be used by the legislature to make appropriations 11 for costs of administering AS 44.33.650 - 44.33.690. 12 Sec. 44.33.660. Powers and duties of the department. The department may 13 (1) make loans to eligible applicants under AS 44.33.665 for the 14 purchase and installation of capstone avionic equipment; 15 (2) receive, take, hold, and administer any appropriation, gift, grant, 16 bequest, devise, or donation of money for the fund; 17 (3) establish amortization plans for repayment of loans, including 18 extensions of the terms of loans; 19 (4) allow an assumption of a loan if the applicant meets the 20 requirements established under this section; 21 (5) establish the rate of interest for loans consistent with law; 22 (6) charge and collect fees for services provided under 23 AS 44.33.650 - 44.33.690; 24 (7) adopt regulations, under AS 44.62, necessary to carry out the 25 provisions of AS 44.33.650 - 44.33.690, including regulations to establish reasonable 26 fees for services provided; and 27 (8) designate agents and delegate powers as necessary to the agents. 28 Sec. 44.33.665. Eligibility. (a) For an applicant to be eligible for a loan under 29 AS 44.33.650 - 44.33.690, the applicant must be the owner of an aircraft that logs a 30 substantial percentage of flight hours in the state as determined by the department. 31 For purposes of this subsection, an applicant may be an individual, corporation, 01 partnership, limited liability corporation, limited liability partnership, limited liability 02 company, joint venture, or non-federal governmental entity. 03 (b) After consultation with the Department of Transportation and Public 04 Facilities, the Department of Commerce, Community, and Economic Development 05 shall establish by regulation the standards for capstone avionics equipment eligible 06 for loans. 07 Sec. 44.33.670. Limitations on loans. A loan established under 08 AS 44.33.650 - 44.33.690 09 (1) may not exceed a term of 10 years, except for extensions under 10 AS 44.33.660; 11 (2) may not bear interest less than four percent per year; 12 (3) must be secured by collateral acceptable to the department; and 13 (4) may not exceed 80 percent of the cost of the eligible capstone 14 avionics equipment purchased with proceeds of the loan. 15 Sec. 44.33.675. Special account established. (a) There is established as a 16 special account within the Alaska capstone avionics revolving loan fund the 17 foreclosure expense account. 18 (b) The department may expend money credited to the foreclosure expense 19 account when necessary to protect the state's security interest in collateral on loans 20 granted under AS 44.33.665 or to defray expenses incurred during foreclosure 21 proceedings after a default by an obligor. 22 Sec. 44.33.680. Disposal of property acquired by default or foreclosure. 23 The department shall dispose of property acquired through default or foreclosure of a 24 loan made under AS 44.33.650 - 44.33.690. Disposal must be made in a manner that 25 serves the best interest of the state, and may include the amortization of payments 26 over a term of years. 27 Sec. 44.33.690. Definitions. In AS 44.33.650 - 44.33.690 28 (1) "capstone avionics equipment" 29 (A) means aviation navigation performance and safety 30 technological equipment eligible for financing through the capstone program; 31 (B) includes global positioning system-based avionics 01 equipment and data link communications suites; 02 (2) "capstone program" means a technology-focused aviation 03 program administered by the Federal Aviation Administration in this state; 04 (3) "department" means the Department of Commerce, Community, 05 and Economic Development. 06 * Sec. 2. AS 44.33.650, 44.33.655, 44.33.660, 44.33.665, 44.33.670, 44.33.675, 07 44.33.680, and 44.33.690 are repealed. 08 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 11 Economic Development may immediately proceed to adopt regulations necessary to 12 implement the changes made in sec. 1 of this Act. The regulations take effect under 13 AS 44.62 (Administrative Procedure Act) but not before the effective date of the statutory 14 change. 15 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 16 * Sec. 5. Section 2 of this Act takes effect July 1, 2020. 17 * Sec. 6. Except as provided in secs. 4 and 5 of this Act, this Act takes effect July 1, 2008.