SB 121: "An Act relating to loans to commercial fishermen for marketing development purposes; and providing for an effective date."
00SENATE BILL NO. 121 01 "An Act relating to loans to commercial fishermen for marketing development 02 purposes; 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;
01 (ii) to upgrade existing vessels and gear for the purpose 02 of improving the quality of Alaska seafood products; or 03 (iii) to satisfy past due federal tax obligations that may 04 result in the execution upon and involuntary transfer of the individual 05 commercial fishermen's entry permits, to the extent allowed under (d) 06 of this section; 07 (B) an individual for the repair, restoration, or upgrading of 08 existing vessels and gear, for the purchase of entry permits and gear, for the 09 construction and purchase of vessels, or, to the extent allowed under (d) of this 10 section, to satisfy past due federal tax obligations that may result in the 11 execution upon and involuntary transfer of the individual's entry permits, if the 12 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 (C) for the purchase of quota shares for fisheries in or off the 22 state by individual commercial fishermen who 23 (i) have been state residents for a continuous period of 24 two years immediately preceding the date of application for a loan 25 under AS 16.10.300 - 16.10.370; 26 (ii) for any two of the past five years, possessed a 27 crewmember or commercial fishing license under AS 16.05.480 or a 28 permit under AS 16.43 and actively participated in a fishery for which 29 the license or permit was issued; 30 (iii) qualify as a transferee for quota shares under 31 applicable law; and
01 (iv) are not eligible for financing from other recognized 02 commercial lending institutions to purchase quota shares; 03 (D) for market development purposes to an individual 04 commercial fisherman who 05 (i) has been a state resident 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) during any two of the last five years immediately 09 preceding the loan application, was a holder of a commercial fishing 10 license under AS 16.05.480 or of a permit under AS 16.43 and 11 actively participated during that same time period in the fishery for 12 which the license or permit was issued; 13 (iii) presents to the department and receives approval 14 of a harvester marketing plan for fisheries products made from fish 15 commercially taken in this state that specifies how any loan 16 proceeds awarded under AS 16.10.300 - 16.10.370 would be used to 17 market the harvest and that meets other requirements as specified 18 by the department in regulations; 19 (2) designate agents and delegate its powers to them as necessary; 20 (3) adopt regulations necessary to carry out the provisions of 21 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 22 services provided; 23 (4) establish amortization plans for repayment of loans, which may 24 include extensions for poor fishing seasons or for adverse market conditions for 25 Alaskan products; 26 (5) enter into agreements with private lending institutions, other state 27 agencies, or agencies of the federal government, to carry out the purposes of 28 AS 16.10.300 - 16.10.370; 29 (6) enter into agreements with other agencies or organizations to create 30 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 31 the state;
01 (7) allow an assumption of a loan if 02 (A) the applicant has been a state resident for a continuous 03 period of two years immediately preceding the date of the request for an 04 assumption; and 05 (B) approval of the assumption would be consistent with the 06 purposes of AS 16.10.300; an applicant for a loan assumption may not be 07 disqualified because the applicant does not meet the loan eligibility 08 requirements of (1) of this subsection; 09 (8) prequalify loan applicants for a limited entry permit loan or a quota 10 shares loan and charge a fee not to exceed $200 for prequalification; 11 (9) charge and collect the fees established under this subsection; 12 (10) refinance a debt obligation incurred by a borrower or borrowers 13 under this section if the borrower or borrowers otherwise qualify for a loan under 14 AS 16.10.300 - 16.10.370; the department shall collect a refinancing loan origination 15 charge of one-half percent of the amount of the debt obligation that has been 16 refinanced when the first refinancing payment is due; 17 (11) refinance debt obligations, not to exceed $300,000, incurred by a 18 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 19 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 20 the department may collect a refinancing loan origination charge as provided by 21 regulation. 22 * Sec. 2. AS 16.10.320(d) is amended to read: 23 (d) The total of balances outstanding on loans made to a borrower under 24 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding on 25 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. The 26 total balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(C) 27 may not exceed $300,000. The total of balances outstanding on loans made to a 28 borrower under AS 16.10.310(a)(1)(D) may not exceed $100,000. The total of 29 balances outstanding on all loans, including debt refinancing under AS 16.10.310(a), 30 made to a borrower under AS 16.10.300 - 16.10.370 may not exceed $300,000. 31 * Sec. 3. AS 16.10.325 is amended to read:
01 Sec. 16.10.325. Guarantors. A person may act as guarantor if the borrower 02 has insufficient collateral to secure a loan for the purposes described in 03 AS 16.10.310(a)(1)(B), [OR] (C), or (D). The loan agreement shall specifically 04 describe the property of the guarantor to be used as collateral by the borrower and 05 shall be signed by the guarantor and the borrower. The department shall provide the 06 guarantor with a copy of all notices sent to the borrower by the department. If the loan 07 is for the purchase of an entry permit or quota shares, the guaranty by the guarantor 08 may not constitute a lien, mortgage, or encumbrance on or pledge of the entry permit 09 or quota shares. 10 * Sec. 4. AS 16.10.338 is amended by adding a new subsection to read: 11 (d) If a limited entry permit is pledged for security for a loan made under 12 AS 16.10.310(a)(1)(D) for the financing of a harvester marketing plan and the 13 borrower thereafter fails to make a payment or defaults, the commissioner shall, in 14 addition to the notice provided under AS 16.10.335(a), notify the borrower that subject 15 to the commissioner's acceptance the borrower may sell any assets that the borrower 16 owns as a result of the plan, apply the sales proceeds to the debt, and renegotiate 17 payment of the balance due on the loan to avoid the immediate loss of the limited 18 entry permit that has been pledged for security for the loan. 19 * Sec. 5. AS 16.10.360 is amended by adding a new paragraph to read: 20 (6) "market development purposes" includes efforts to enhance 21 (A) the recognition, consumption, and market penetration of 22 specific fisheries products made from fish taken in this state; and 23 (B) the general salability of fisheries products made from fish 24 taken in this state. 25 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).