SB 251: "An Act relating to the commercial fishing revolving loan fund and the fisheries enhancement revolving loan fund."
00SENATE BILL NO. 251 01 "An Act relating to the commercial fishing revolving loan fund and the fisheries 02 enhancement revolving loan fund." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.310(a) is amended to read: 05 (a) The department may 06 (1) make loans to 07 (A) individual commercial fishermen who have been state 08 residents for a continuous period of two years immediately preceding the date 09 of application for a loan under AS 16.10.300 - 16.10.370 and have had a 10 crewmember or commercial fishing license under AS 16.05.480 or a permit 11 under AS 16.43 for the year immediately preceding the date of application and 12 any other two of the past five years, and who actively participated in the 13 fishery during those periods, 14 (i) for the purchase of entry permits;
01 (ii) to upgrade existing vessels and gear for the 02 purpose of improving the quality of Alaska seafood products; or 03 (iii) to satisfy past due child support obligations or 04 federal tax obligations that may result in the execution upon and 05 involuntary transfer of the individual commercial fishermen's entry 06 permits; 07 (B) an individual for the repair, restoration, or upgrading of 08 existing vessels and gear, for the purchase of entry permits and gear, [AND] 09 for the construction and purchase of vessels, or to satisfy past due child 10 support obligations or federal tax obligations that may result in the 11 execution upon and involuntary transfer of the individual's entry permits, 12 if the individual has been a state resident for a continuous period of two years 13 immediately preceding the date of application for a loan under AS 16.10.300 14 - 16.10.370, and either 15 (i) because of lack of training or lack of employment 16 opportunities in the area of residence, does not have occupational 17 opportunities available other than commercial fishing; or 18 (ii) is economically dependent on commercial fishing for 19 a livelihood and for whom commercial fishing has been a traditional 20 way of life in Alaska; 21 (2) designate agents and delegate its powers to them as necessary; 22 (3) adopt regulations necessary to carry out the provisions of 23 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 24 services provided; 25 (4) establish amortization plans for repayment of loans, which may 26 include extensions for poor fishing seasons or for adverse market conditions for 27 Alaskan products; 28 (5) enter into agreements with private lending institutions, other state 29 agencies, or agencies of the federal government, to carry out the purposes of 30 AS 16.10.300 - 16.10.370; 31 (6) enter into agreements with other agencies or organizations to create
01 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 02 the state; 03 (7) allow an assumption of a loan if 04 (A) the applicant has been a state resident for a continuous 05 period of two years immediately preceding the date of the request for an 06 assumption; and 07 (B) approval of the assumption would be consistent with the 08 purposes of AS 16.10.300; an applicant for a loan assumption may not be 09 disqualified because the applicant does not meet the loan eligibility 10 requirements of (1) of this subsection; 11 (8) prequalify loan applicants for a limited entry permit loan and charge 12 a fee not to exceed $200 for prequalification; 13 (9) charge and collect the fees established under this subsection; 14 (10) refinance a debt obligation incurred by a borrower or borrowers 15 under this section if the borrower or borrowers otherwise qualify for a loan under 16 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 17 charge of one-half percent of the amount of the debt obligation that has been 18 refinanced when the first refinancing payment is due; 19 (11) refinance debt obligations, not to exceed $300,000, incurred by 20 a borrower or borrowers for the purchase of a commercial fishing vessel or gear 21 if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 22 16.10.370; the department may collect a refinancing loan origination charge as 23 provided by regulation. 24 * Sec. 2. AS 16.10.320(a) is amended to read: 25 (a) Except as permitted in (h) of this section, a loan under AS 16.10.300 - 26 16.10.370 27 (1) may not exceed a term of 15 years, except for extensions under 28 AS 16.10.310(a)(4); 29 (2) may not bear interest exceeding 10 1/2 percent; 30 (3) must be secured by a first priority lien and appropriate security 31 agreement;
01 (4) may not exceed 90 percent of the appraised value of the collateral 02 used to secure the loan; and 03 (5) may not be made to a person who has a past due child support 04 obligation established by court order or by the child support enforcement division 05 under AS 25.27.160 - 25.27.220 at the time of application, unless the loan is made 06 to satisfy past due child support obligations that may result in the execution upon 07 and involuntary transfer of the person's entry permit. 08 * Sec. 3. AS 16.10.320(d) is amended to read: 09 (d) The total of balances outstanding on loans made to a borrower under 10 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 11 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 12 The total of balances outstanding on all loans, including debt refinancing under 13 AS 16.10.310(a), made to a borrower under AS 16.10.300 - 16.10.370 may not 14 exceed $300,000. 15 * Sec. 4. AS 16.10.340 is amended by adding a new subsection to read: 16 (c) Money in the fund that the commissioner determines to be excess to that 17 needed to carry out the purpose of AS 16.10.300 - 16.10.370 may be used to carry out 18 the purpose of AS 16.10.500 - 16.10.560. 19 * Sec. 5. AS 16.10.505(a) is amended to read: 20 (a) There is created within the Department of Commerce and Economic 21 Development a revolving fund to be known as the fisheries enhancement revolving 22 loan fund. Except as provided in (b) and (c) of this section, the fund shall be used to 23 carry out the purposes of AS 16.10.500 - 16.10.560 and for no other purpose. All 24 principal and interest payments, and money chargeable to principal or interest that is 25 collected through liquidation by foreclosure or other process on loans made under 26 AS 16.10.500 - 16.10.560, shall be paid into the fisheries enhancement revolving loan 27 fund. 28 * Sec. 6. AS 16.10.505 is amended by adding a new subsection to read: 29 (c) Money in the fund that the commissioner determines to be excess to that 30 needed to carry out the purpose of AS 16.10.500 - 16.10.560 may be used to carry out 31 the purpose of AS 16.10.300 - 16.10.370.