SB 132: "An Act relating to loans for the purchase of individual fishery quota shares."
00SENATE BILL NO. 132 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 off the state by individual commercial fishermen 12 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) for the year immediately preceding the date of 17 application for the loan and any other two of the past five years, 18 had a crewmember or commercial fishing license under 19 AS 16.05.480 or a permit under AS 16.43 and actively participated 20 in a fishery for which the license or permit was issued; and 21 (iii) qualify as a transferee for individual fishery 22 quota shares under applicable law; 23 (D) for the purchase of individual fishery quota shares in a 24 fishery occurring in or off the state by individual commercial fishermen 25 who 26 (i) have been state residents for a continuous period 27 of two years immediately preceding the date of application for a 28 loan under AS 16.10.300 - 16.10.370; 29 (ii) received a loan for the purchase of individual 30 fishery quota shares, from a recipient of a community development 31 quota, that equals or exceeds the amount of the loan made by the
01 department under this subparagraph; and 02 (iii) qualify as a transferee for individual fishery 03 quota shares under applicable law; 04 (2) designate agents and delegate its powers to them as necessary; 05 (3) adopt regulations necessary to carry out the provisions of 06 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 07 services provided; 08 (4) establish amortization plans for repayment of loans, which may 09 include extensions for poor fishing seasons or for adverse market conditions for 10 Alaskan products; 11 (5) enter into agreements with private lending institutions, other state 12 agencies, or agencies of the federal government, to carry out the purposes of 13 AS 16.10.300 - 16.10.370; 14 (6) enter into agreements with other agencies or organizations to create 15 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 16 the state; 17 (7) allow an assumption of a loan if 18 (A) the applicant has been a state resident for a continuous 19 period of two years immediately preceding the date of the request for an 20 assumption; and 21 (B) approval of the assumption would be consistent with the 22 purposes of AS 16.10.300; an applicant for a loan assumption may not be 23 disqualified because the applicant does not meet the loan eligibility 24 requirements of (1) of this subsection; 25 (8) prequalify loan applicants for a limited entry permit loan or an 26 individual fishery quota shares loan and charge a fee not to exceed $200 for 27 prequalification; 28 (9) charge and collect the fees established under this subsection. 29 * Sec. 2. AS 16.10.320(d) is amended to read: 30 (d) The total of balances outstanding on loans made to a borrower under 31 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding
01 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 02 The total balances outstanding on loans made to a borrower under 03 AS 16.10.310(a)(1)(C) may not exceed $300,000. The total balances outstanding 04 on loans made to a borrower under AS 16.10.310(a)(1)(D) may not exceed either 05 $300,000 or the amount received by the borrower as loans for the purchase of 06 individual fishery quota shares from a recipient of a community development 07 quota. 08 * Sec. 3. AS 16.10.320(i) is amended to read: 09 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 10 loan may not be made to the borrower under AS 16.10.310(a)(1)(B). If a loan is made 11 to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be made to the 12 borrower under AS 16.10.310(a)(1)(A) if the total of the balance outstanding on loans 13 received by the borrower under AS 16.10.310(a)(1)(A) and (B) [AS 16.10.310] does 14 not exceed $300,000. 15 * Sec. 4. AS 16.10.325 is amended to read: 16 Sec. 16.10.325. GUARANTORS. A person may act as guarantor if the 17 borrower has insufficient collateral to secure a loan for the purposes described in 18 AS 16.10.310(a)(1)(B) - (D) [AS 16.10.310(a)(1)(B)]. The loan agreement shall 19 specifically describe the property of the guarantor to be used as collateral by the 20 borrower and shall be signed by the guarantor and the borrower. The department shall 21 provide the guarantor with a copy of all notices sent to the borrower by the 22 department. If the loan is for the purchase of an entry permit or individual fishery 23 quota shares, the guaranty by the guarantor may not constitute a lien, mortgage, or 24 encumbrance on or pledge of the entry permit or individual fishery quota shares. 25 * Sec. 5. AS 16.10.338 is amended by adding a new subsection to read: 26 (c) If a limited entry permit is pledged for security for a loan made under 27 AS 16.10.310(a)(1)(C) or (D) for the purchase of individual fishery quota shares and 28 the borrower thereafter fails to make a payment or defaults, the commissioner shall, 29 in addition to the notice provided under AS 16.10.335(a), notify the borrower that 30 subject to the commissioner's acceptance the borrower may sell the individual fishery 31 quota shares, apply the sales proceeds to the debt, and renegotiate payment of the
01 balance due on the loan to avoid the immediate loss of the limited entry permit that 02 has been pledged for security for the loan. 03 * Sec. 6. AS 16.10.360 is amended by adding new paragraphs to read: 04 (5) "individual fishery quota share" means a transferrable license, 05 permit, or right issued by the federal government that conveys a right to engage in a 06 fishery in or off the state and to take a specified portion of the annual harvest quota 07 for that fishery; 08 (6) "recipient of a community development quota" means a community, 09 local fishermen's organization, or local economic development organization that has 10 received a community development quota allocation to take a fishery resource in or 11 off the state from the United States Secretary of Commerce.