CSSB 132(RES): "An Act relating to loans for the purchase of individual fishery quota shares; and providing for an effective date."
00CS FOR SENATE BILL NO. 132(RES) 01 "An Act relating to loans for the purchase of individual fishery quota shares; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS AND INTENT. (a) The legislature finds that 05 (1) the individual fishery quota management system may, through attrition, 06 eventually concentrate ownership of the right to harvest the fishery resource in the hands of 07 those with the greatest wealth and financial advantages; 08 (2) implementation of the individual fishery quota management system may 09 create a privileged class of fishermen based on their fortuitous involvement in the fishing 10 industry during a particular period of time and will seriously inhibit those fishermen who wish 11 to enter those fisheries in the future; 12 (3) the individual fishery quota management system may seriously inhibit the 13 ability of fishermen to diversify among fisheries as resource and market conditions fluctuate 14 and will therefore hinder the ability of fishermen to operate stable and successful fishing
01 businesses. 02 (b) Due to the serious, compound, negative effects that implementation of the 03 individual fishery quota management system may have on individual fishermen, the 04 commercial fishing industry, and Alaska coastal communities with a fishing based economy, 05 it is the intent of the legislature that the state make loans available for the purchase of 06 individual fishery quota shares by individual commercial fishermen contingent upon approval 07 of individual fishery quota management program regulations by the United States Department 08 of Commerce. 09 * Sec. 2. AS 16.10.310(a) is amended to read: 10 (a) The department may 11 (1) make loans [TO] 12 (A) to individual commercial fishermen who have been state 13 residents for a continuous period of two years immediately preceding the date 14 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 15 crewmember or commercial fishing license under AS 16.05.480 or a permit 16 under AS 16.43 for the year immediately preceding the date of application and 17 any other two of the past five years, and who actively participated in the 18 fishery during those periods, for the purchase of entry permits; 19 (B) to an individual for the repair, restoration, or upgrading of 20 existing vessels and gear, for the purchase of entry permits and gear, and for 21 the construction and purchase of vessels, if the individual has been a state 22 resident for a continuous period of two years immediately preceding the date 23 of application for a loan under AS 16.10.300 - 16.10.370, and either 24 (i) because of lack of training or lack of employment 25 opportunities in the area of residence does not have occupational 26 opportunities available other than commercial fishing; or 27 (ii) is economically dependent on commercial fishing for 28 a livelihood and for whom commercial fishing has been a traditional 29 way of life in Alaska; 30 (C) for the purchase of individual fishery quota shares in a 31 fishery occurring in or off the state by individual commercial fishermen
01 who 02 (i) have been state residents for a continuous period 03 of two years immediately preceding the date of application for a 04 loan under AS 16.10.300 - 16.10.370; 05 (ii) for the year immediately preceding the date of 06 application for the loan and any other two of the past five years, 07 had a crewmember or commercial fishing license under 08 AS 16.05.480 or a permit under AS 16.43 and actively participated 09 in a fishery for which the license or permit was issued; and 10 (iii) qualify as a transferee for individual fishery 11 quota shares under applicable law; 12 (D) for the purchase of individual fishery quota shares in a 13 fishery occurring in or off the state by individual commercial fishermen 14 who 15 (i) have been state residents for a continuous period 16 of two years immediately preceding the date of application for a 17 loan under AS 16.10.300 - 16.10.370; 18 (ii) received a loan for the purchase of individual 19 fishery quota shares, from a recipient of a community development 20 quota, that equals or exceeds the amount of the loan made by the 21 department under this subparagraph; and 22 (iii) qualify as a transferee for individual fishery 23 quota shares under applicable law; 24 (2) designate agents and delegate its powers to them as necessary; 25 (3) adopt regulations necessary to carry out the provisions of 26 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 27 services provided; 28 (4) establish amortization plans for repayment of loans, which may 29 include extensions for poor fishing seasons or for adverse market conditions for 30 Alaskan products; 31 (5) enter into agreements with private lending institutions, other state
01 agencies, or agencies of the federal government, to carry out the purposes of 02 AS 16.10.300 - 16.10.370; 03 (6) enter into agreements with other agencies or organizations to create 04 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 05 the state; 06 (7) allow an assumption of a loan if 07 (A) the applicant has been a state resident for a continuous 08 period of two years immediately preceding the date of the request for an 09 assumption; and 10 (B) approval of the assumption would be consistent with the 11 purposes of AS 16.10.300; an applicant for a loan assumption may not be 12 disqualified because the applicant does not meet the loan eligibility 13 requirements of (1) of this subsection; 14 (8) prequalify loan applicants for a limited entry permit loan or an 15 individual fishery quota shares loan and charge a fee not to exceed $200 for 16 prequalification; 17 (9) charge and collect the fees established under this subsection. 18 * Sec. 3. AS 16.10.320(d) is amended to read: 19 (d) The total of balances outstanding on loans made to a borrower under 20 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 21 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 22 The total balances outstanding on loans made to a borrower under 23 AS 16.10.310(a)(1)(C) may not exceed $300,000. The total balances outstanding 24 on loans made to a borrower under AS 16.10.310(a)(1)(D) may not exceed either 25 $300,000 or the amount received by the borrower as loans for the purchase of 26 individual fishery quota shares from a recipient of a community development 27 quota. 28 * Sec. 4. AS 16.10.320(i) is amended to read: 29 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 30 loan may not be made to the borrower under AS 16.10.310(a)(1)(B). If a loan is made 31 to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be made to the
01 borrower under AS 16.10.310(a)(1)(A) if the total of the balance outstanding on loans 02 received by the borrower under AS 16.10.310(a)(1)(A) and (B) [AS 16.10.310] does 03 not exceed $300,000. 04 * Sec. 5. AS 16.10.325 is amended to read: 05 Sec. 16.10.325. GUARANTORS. A person may act as guarantor if the 06 borrower has insufficient collateral to secure a loan for the purposes described in 07 AS 16.10.310(a)(1)(B) - (D) [AS 16.10.310(a)(1)(B)]. The loan agreement shall 08 specifically describe the property of the guarantor to be used as collateral by the 09 borrower and shall be signed by the guarantor and the borrower. The department shall 10 provide the guarantor with a copy of all notices sent to the borrower by the 11 department. If the loan is for the purchase of an entry permit or individual fishery 12 quota shares, the guaranty by the guarantor may not constitute a lien, mortgage, or 13 encumbrance on or pledge of the entry permit or individual fishery quota shares. 14 * Sec. 6. AS 16.10.338 is amended by adding a new subsection to read: 15 (c) If a limited entry permit is pledged for security for a loan made under 16 AS 16.10.310(a)(1)(C) or (D) for the purchase of individual fishery quota shares and 17 the borrower thereafter fails to make a payment or defaults, the commissioner shall, 18 in addition to the notice provided under AS 16.10.335(a), notify the borrower that 19 subject to the commissioner's acceptance the borrower may sell the individual fishery 20 quota shares, apply the sales proceeds to the debt, and renegotiate payment of the 21 balance due on the loan to avoid the immediate loss of the limited entry permit that 22 has been pledged for security for the loan. 23 * Sec. 7. AS 16.10.360 is amended by adding new paragraphs to read: 24 (5) "individual fishery quota share" means a transferrable license, 25 permit, or right issued by the federal government that conveys a right to engage in a 26 fishery in or off the state and to take a specified portion of the annual harvest quota 27 for that fishery; 28 (6) "recipient of a community development quota" means a community, 29 local fishermen's organization, or local economic development organization that has 30 received a community development quota allocation to take a fishery resource in or 31 off the state from the United States Secretary of Commerce.
01 * Sec. 8. This Act takes effect on the effective date of regulations adopted by the United 02 States Department of Commerce providing for the allocation of catch quotas of Pacific halibut 03 or sablefish in or off of Alaska. The commissioner of fish and game shall promptly notify 04 the revisor of statutes and the lieutenant governor of the adoption of the regulations described 05 in this section.