HB 123: "An Act relating to loans for the purchase of individual fishery quota shares."
00HOUSE BILL NO. 123 01 "An Act relating to loans for the purchase of individual fishery quota shares." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 16.10.310(a) is amended to read: 04 (a) The department may 05 (1) make loans [TO] 06 (A) to individual commercial fishermen who have been state 07 residents for a continuous period of two years immediately preceding the date 08 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 09 crewmember or commercial fishing license under AS 16.05.480 or a permit 10 under AS 16.43 for the year immediately preceding the date of application and 11 any other two of the past five years, and who actively participated in the 12 fishery during those periods, for the purchase of entry permits; 13 (B) to an individual for the repair, restoration, or upgrading of 14 existing vessels and gear, for the purchase of entry permits and gear, and for
01 the construction and purchase of vessels, if the individual has been a state 02 resident for a continuous period of two years immediately preceding the date 03 of application for a loan under AS 16.10.300 - 16.10.370, and either 04 (i) because of lack of training or lack of employment 05 opportunities in the area of residence does not have occupational 06 opportunities available other than commercial fishing; or 07 (ii) is economically dependent on commercial fishing for 08 a livelihood and for whom commercial fishing has been a traditional 09 way of life in Alaska; 10 (C) for the purchase of individual fishery quota shares in a 11 fishery occurring in or adjacent to the state by individual commercial 12 fishermen who 13 (i) have been state residents for a continuous period 14 of two years immediately preceding the date of application for a 15 loan under AS 16.10.300 - 16.10.370; 16 (ii) had a crewmember or commercial fishing license 17 under AS 16.05.480 or a permit under AS 16.43 for the year 18 immediately preceding the date of application and any other two of 19 the past five years; 20 (iii) have actively participated, as defined by the 21 department, in the fishery for which the individual fishery quota 22 shares are issued during three of the last five years; and 23 (iv) qualify as a transferee for individual fishery 24 quota shares under applicable law; 25 (2) designate agents and delegate its powers to them as necessary; 26 (3) adopt regulations necessary to carry out the provisions of 27 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 28 services provided; 29 (4) establish amortization plans for repayment of loans, which may 30 include extensions for poor fishing seasons or for adverse market conditions for 31 Alaskan products;
01 (5) enter into agreements with private lending institutions, other state 02 agencies, or agencies of the federal government, to carry out the purposes of 03 AS 16.10.300 - 16.10.370; 04 (6) enter into agreements with other agencies or organizations to create 05 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 06 the state; 07 (7) allow an assumption of a loan if 08 (A) the applicant has been a state resident for a continuous 09 period of two years immediately preceding the date of the request for an 10 assumption; and 11 (B) approval of the assumption would be consistent with the 12 purposes of AS 16.10.300; an applicant for a loan assumption may not be 13 disqualified because the applicant does not meet the loan eligibility 14 requirements of (1) of this subsection; 15 (8) prequalify loan applicants for a limited entry permit loan or an 16 individual fishery quota shares loan and charge a fee not to exceed $200 for 17 prequalification; 18 (9) charge and collect the fees established under this subsection. 19 * Sec. 2. AS 16.10.320(d) is amended to read: 20 (d) The total of balances outstanding on loans made to a borrower under 21 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 22 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 23 The total balances outstanding on loans made to a borrower under 24 AS 16.10.310(a)(1)(C) may not exceed $300,000. 25 * Sec. 3. AS 16.10.320(i) is amended to read: 26 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 27 loan may not be made to the borrower under AS 16.10.310(a)(1)(B). If a loan is made 28 to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be made to the 29 borrower under AS 16.10.310(a)(1)(A) if the total of the balance outstanding on loans 30 received by the borrower under AS 16.10.310(a)(1)(A) and (B) [AS 16.10.310] does 31 not exceed $300,000.
01 * Sec. 4. AS 16.10.325 is amended to read: 02 Sec. 16.10.325. GUARANTORS. A person may act as guarantor if the 03 borrower has insufficient collateral to secure a loan for the purposes described in 04 AS 16.10.310(a)(1)(B) or (C). The loan agreement shall specifically describe the 05 property of the guarantor to be used as collateral by the borrower and shall be signed 06 by the guarantor and the borrower. The department shall provide the guarantor with 07 a copy of all notices sent to the borrower by the department. If the loan is for the 08 purchase of an entry permit or individual fishery quota shares, the guaranty by the 09 guarantor may not constitute a lien, mortgage, or encumbrance on or pledge of the 10 entry permit or individual fishery quota shares. 11 * Sec. 5. AS 16.10.338 is amended by adding a new subsection to read: 12 (c) If a limited entry permit is pledged for security for a loan made under 13 AS 16.10.310(a)(1)(C) for the purchase of individual fishery quota shares and the 14 borrower thereafter fails to make a payment or defaults, the commissioner shall, in 15 addition to the notice provided under AS 16.10.335(a), notify the borrower that subject 16 to the commissioner's acceptance the borrower may sell the individual fishery quota 17 shares, apply the sales proceeds to the debt, and renegotiate payment of the balance 18 due on the loan to avoid the immediate loss of the limited entry permit that has been 19 pledged for security for the loan. 20 * Sec. 6. AS 16.10.360 is amended by adding a new paragraph to read: 21 (5) "individual fishery quota share" means a transferrable license, 22 permit, or right issued by the federal government that conveys a right to engage in a 23 fishery in or off Alaska and to take a specified portion of the annual harvest quota for 24 that fishery.