CSSB 132(RES) AM: "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) am 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 (c) It is the intent of the legislature that the authority granted by this Act be 10 implemented without affecting the commercial fishing revolving loan fund for loans to 11 purchase entry permits and to purchase, repair, restore, or upgrade vessels and gear. 12 * Sec. 2. AS 16.10.310(a) is amended to read: 13 (a) The department may 14 (1) make loans [TO] 15 (A) to individual commercial fishermen who have been state 16 residents for a continuous period of two years immediately preceding the date 17 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 18 crewmember or commercial fishing license under AS 16.05.480 or a permit 19 under AS 16.43 for the year immediately preceding the date of application and 20 any other two of the past five years, and who actively participated in the 21 fishery during those periods, for the purchase of entry permits; 22 (B) to an individual for the repair, restoration, or upgrading of 23 existing vessels and gear, for the purchase of entry permits and gear, and for 24 the construction and purchase of vessels, if the individual has been a state 25 resident for a continuous period of two years immediately preceding the date 26 of application for a loan under AS 16.10.300 - 16.10.370, and either 27 (i) because of lack of training or lack of employment 28 opportunities in the area of residence does not have occupational 29 opportunities available other than commercial fishing; or 30 (ii) is economically dependent on commercial fishing for 31 a livelihood and for whom commercial fishing has been a traditional
01 way of life in Alaska; 02 (C) for the purchase of individual fishery quota shares in a 03 fishery occurring in or off the state by individual commercial fishermen 04 who 05 (i) have been state residents for a continuous period 06 of two years immediately preceding the date of application for a 07 loan under AS 16.10.300 - 16.10.370; 08 (ii) for the year immediately preceding the date of 09 application for the loan and any other two of the past five years, 10 had a crewmember or commercial fishing license under 11 AS 16.05.480 or a permit under AS 16.43 and actively participated 12 in a fishery for which the license or permit was issued; and 13 (iii) qualify as a transferee for individual fishery 14 quota shares under applicable law; 15 (D) for the purchase of individual fishery quota shares in a 16 fishery occurring in or off the state by individual commercial fishermen 17 who 18 (i) have been state residents for a continuous period 19 of two years immediately preceding the date of application for a 20 loan under AS 16.10.300 - 16.10.370; 21 (ii) received a loan for the purchase of individual 22 fishery quota shares, from a recipient of a community development 23 quota, that equals or exceeds the amount of the loan made by the 24 department under this subparagraph; and 25 (iii) qualify as a transferee for individual fishery 26 quota shares under applicable law; 27 (2) designate agents and delegate its powers to them as necessary; 28 (3) adopt regulations necessary to carry out the provisions of 29 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 30 services provided; 31 (4) establish amortization plans for repayment of loans, which may
01 include extensions for poor fishing seasons or for adverse market conditions for 02 Alaskan products; 03 (5) enter into agreements with private lending institutions, other state 04 agencies, or agencies of the federal government, to carry out the purposes of 05 AS 16.10.300 - 16.10.370; 06 (6) enter into agreements with other agencies or organizations to create 07 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 08 the state; 09 (7) allow an assumption of a loan if 10 (A) the applicant has been a state resident for a continuous 11 period of two years immediately preceding the date of the request for an 12 assumption; and 13 (B) approval of the assumption would be consistent with the 14 purposes of AS 16.10.300; an applicant for a loan assumption may not be 15 disqualified because the applicant does not meet the loan eligibility 16 requirements of (1) of this subsection; 17 (8) prequalify loan applicants for a limited entry permit loan or an 18 individual fishery quota shares loan and charge a fee not to exceed $200 for 19 prequalification; 20 (9) charge and collect the fees established under this subsection. 21 * Sec. 3. AS 16.10.320(d) is amended to read: 22 (d) The total of balances outstanding on loans made to a borrower under 23 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 24 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 25 The total balances outstanding on loans made to a borrower under 26 AS 16.10.310(a)(1)(C) may not exceed $300,000. The total balances outstanding 27 on loans made to a borrower under AS 16.10.310(a)(1)(D) may not exceed either 28 $300,000 or the amount received by the borrower as loans for the purchase of 29 individual fishery quota shares from a recipient of a community development 30 quota. 31 * Sec. 4. AS 16.10.320(i) is amended to read:
01 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 02 loan may not be made to the borrower under AS 16.10.310(a)(1)(B). If a loan is made 03 to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be made to the 04 borrower under AS 16.10.310(a)(1)(A) if the total of the balance outstanding on loans 05 received by the borrower under AS 16.10.310(a)(1)(A) and (B) [AS 16.10.310] does 06 not exceed $300,000. 07 * Sec. 5. AS 16.10.325 is amended to read: 08 Sec. 16.10.325. GUARANTORS. A person may act as guarantor if the 09 borrower has insufficient collateral to secure a loan for the purposes described in 10 AS 16.10.310(a)(1)(B) - (D) [AS 16.10.310(a)(1)(B)]. The loan agreement shall 11 specifically describe the property of the guarantor to be used as collateral by the 12 borrower and shall be signed by the guarantor and the borrower. The department shall 13 provide the guarantor with a copy of all notices sent to the borrower by the 14 department. If the loan is for the purchase of an entry permit or individual fishery 15 quota shares, the guaranty by the guarantor may not constitute a lien, mortgage, or 16 encumbrance on or pledge of the entry permit or individual fishery quota shares. 17 * Sec. 6. AS 16.10.338 is amended by adding a new subsection to read: 18 (c) If a limited entry permit is pledged for security for a loan made under 19 AS 16.10.310(a)(1)(C) or (D) for the purchase of individual fishery quota shares and 20 the borrower thereafter fails to make a payment or defaults, the commissioner shall, 21 in addition to the notice provided under AS 16.10.335(a), notify the borrower that 22 subject to the commissioner's acceptance the borrower may sell the individual fishery 23 quota shares, apply the sales proceeds to the debt, and renegotiate payment of the 24 balance due on the loan to avoid the immediate loss of the limited entry permit that 25 has been pledged for security for the loan. 26 * Sec. 7. AS 16.10.360 is amended by adding new paragraphs to read: 27 (5) "individual fishery quota share" means a transferrable license, 28 permit, or right issued by the federal government that conveys a right to engage in a 29 fishery in or off the state and to take a specified portion of the annual harvest quota 30 for that fishery; 31 (6) "recipient of a community development quota" means a community,
01 local fishermen's organization, or local economic development organization that has 02 received a community development quota allocation to take a fishery resource in or 03 off the state from the United States Secretary of Commerce. 04 * Sec. 8. This Act takes effect on the effective date of regulations adopted by the United 05 States Department of Commerce providing for the allocation of catch quotas of Pacific halibut 06 or sablefish in or off of Alaska. The commissioner of fish and game shall promptly notify 07 the revisor of statutes and the lieutenant governor of the adoption of the regulations described 08 in this section.