HB 381: "An Act relating to loans for commercial fishermen and fish tender operators affected by certain economic disasters; and providing for an effective date."
00HOUSE BILL NO. 381 01 "An Act relating to loans for commercial fishermen and fish tender operators 02 affected by certain economic disasters; and providing for an effective date." 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 07 (A) to 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; or
01 (ii) to upgrade existing vessels and gear for the purpose 02 of improving the quality of Alaska seafood products; 03 (B) to an individual for the repair, restoration, or upgrading of 04 existing vessels and gear, for the purchase of entry permits and gear, and for 05 the construction and purchase of vessels [,] if the individual has been a state 06 resident for a continuous period of two years immediately preceding the date 07 of application for a loan under AS 16.10.300 - 16.10.370 [,] and either 08 (i) because of lack of training or lack of employment 09 opportunities in the area of residence, does not have occupational 10 opportunities available other than commercial fishing; or 11 (ii) is economically dependent on commercial fishing for 12 a livelihood and for whom commercial fishing has been a traditional 13 way of life in Alaska; 14 (C) for the purchase of quota shares for fisheries in or off the 15 state by individual commercial fishermen who 16 (i) have been state residents for a continuous period of 17 two years immediately preceding the date of application for a loan 18 under AS 16.10.300 - 16.10.370; 19 (ii) for any two of the past five years, possessed a 20 crewmember or commercial fishing license under AS 16.05.480 or a 21 permit under AS 16.43 and actively participated in a fishery for which 22 the license or permit was issued; 23 (iii) qualify as a transferee for quota shares under 24 applicable law; and 25 (iv) are not eligible for financing from other recognized 26 commercial lending institutions to purchase quota shares; 27 (D) under terms set out in (e) of this section to individual 28 commercial fishermen and fish tender operators who have been affected 29 by an economic disaster; 30 (2) designate agents and delegate its powers to them as necessary; 31 (3) adopt regulations necessary to carry out the provisions of
01 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 02 services provided; 03 (4) establish amortization plans for repayment of loans, which may 04 include extensions for poor fishing seasons or for adverse market conditions for 05 Alaska [ALASKAN] products; 06 (5) enter into agreements with private lending institutions, other state 07 agencies, or agencies of the federal government, to carry out the purposes of 08 AS 16.10.300 - 16.10.370; 09 (6) enter into agreements with other agencies or organizations to create 10 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 11 the state; 12 (7) allow an assumption of a loan if 13 (A) the applicant has been a state resident for a continuous 14 period of two years immediately preceding the date of the request for an 15 assumption; and 16 (B) approval of the assumption would be consistent with the 17 purposes of AS 16.10.300; an applicant for a loan assumption may not be 18 disqualified because the applicant does not meet the loan eligibility 19 requirements of (1) of this subsection; 20 (8) prequalify loan applicants for a limited entry permit loan or a quota 21 shares loan and charge a fee not to exceed $200 for prequalification; 22 (9) charge and collect the fees established under this subsection; 23 (10) refinance a debt obligation incurred by a borrower or borrowers 24 under this section if the borrower or borrowers otherwise qualify for a loan under 25 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 26 charge of one-half percent of the amount of the debt obligation that has been 27 refinanced when the first refinancing payment is due; 28 (11) refinance debt obligations, not to exceed $300,000, incurred by a 29 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 30 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 31 the department may collect a refinancing loan origination charge as provided by
01 regulation. 02 * Sec. 2. AS 16.10.310 is amended by adding a new subsection to read: 03 (e) The department may make loans for payment of annual start-up and 04 operating costs, including payment of cannery accounts, of a commercial fishing 05 operation or a fish tender operation. The amount of a loan may not exceed either the 06 amount of the start-up and operating costs usually incurred by the commercial fishing 07 operation or fish tender operation that can be documented by the applicant or the 08 amount of $20,000 for a drift gillnet commercial fishing operation or $10,000 for 09 another commercial fishing operation or a fish tender operation. Loans made under 10 this subsection bear no interest. Notwithstanding AS 16.10.300 - 16.10.370, a loan 11 made under this subsection shall be secured only by a lien against one-half of the 12 individual's annual permanent fund dividend. Up to 50 percent of the annual 13 permanent fund dividend of an individual may be taken under AS 43.23.065(b)(6) and 14 43.23.072 to satisfy the balance due on a loan under this subsection. The department 15 may make loans under this subsection to individual commercial fishermen and fish 16 tender operators who 17 (1) have been state residents for a continuous period of two years 18 immediately preceding the date of application for a loan under this subsection; 19 (2) either 20 (A) held a permit under AS 16.43 for a commercial fishery that 21 experienced a fishery disaster that was the basis for an economic disaster 22 declaration by the governor, currently hold a permit under AS 16.43 for that 23 fishery, and currently intend to participate in that fishery during the fishing 24 season immediately following the declaration of the economic disaster by the 25 governor; or 26 (B) provide documentation of 27 (i) contemporaneous authority to conduct, and of a 28 history of participation as, a fish tender operation for a commercial 29 fishery that experienced a fishery disaster that was the basis for an 30 economic disaster declaration by the governor; and 31 (ii) current authority to conduct a fish tender operation
01 in that fishery during the fishing season immediately following the 02 declaration of the economic disaster by the governor; and 03 (3) have a household income, as documented by income tax returns, of 04 less than $25,000 for the calendar year preceding the fishing season for which the loan 05 is requested. 06 * Sec. 3. AS 43.23 is amended by adding a new section to read: 07 Sec. 43.23.072. Claims on defaulted commercial fishing loans. (a) 08 AS 09.38 does not apply to a permanent fund dividend taken under AS 16.10.310(e). 09 Notwithstanding AS 09.35, the Department of Commerce and Economic Development 10 may take up to 50 percent of a permanent fund dividend under AS 16.10.310(e) by 11 delivering a claim to the department certifying the following information: 12 (1) the name and social security number of the individual whose 13 dividend is being claimed; 14 (2) the amount the individual owes on a loan awarded under 15 AS 16.10.310(a)(1)(D) and (e); and 16 (3) a statement that 17 (A) the debt has not been contested, or, if contested, that the 18 issue has been resolved in the favor of the Department of Commerce and 19 Economic Development; and 20 (B) if the debt has been contested and resolved in the favor of 21 the Department of Commerce and Economic Development, no appeal is 22 pending, the time limit for filing an appeal has expired, or the appeal has been 23 resolved in favor of the Department of Commerce and Economic Development. 24 (b) The Department of Commerce and Economic Development shall notify the 25 individual of a claim under (a) of this section. The notice shall be sent to the address 26 provided in the individual's permanent fund dividend application and must provide the 27 following information: 28 (1) the amount of the claim; 29 (2) notice that the amount of the permanent fund dividend up to the 30 amount of the claim shall be paid to the Department of Commerce and Economic 31 Development to be credited against the individual's loan balance; and
01 (3) the individual's right to a hearing under (c) of this section. 02 (c) AS 44.62.330 - 44.62.630 apply to a hearing requested by an individual 03 under (b) of this section. 04 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).