HB 105: "An Act relating to loans to satisfy past due federal tax obligations of commercial fishermen and to the commercial fishing loan program."
00 HOUSE BILL NO. 105 01 "An Act relating to loans to satisfy past due federal tax obligations of commercial 02 fishermen and to the commercial fishing loan program." 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, who [AND] have 10 had a crewmember or commercial fishing license under AS 16.05.480 or a 11 permit under AS 16.43 for the year immediately preceding the date of 12 application and any other two of the past five years, and who actively 13 participated in the 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 12 for 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 transferees 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) to an individual commercial fisherman to satisfy past 28 due federal tax obligations, if the fisherman has been a state resident for a 29 continuous period of two years immediately preceding the date of 30 application for the loan, has filed past and current federal tax returns 31 with the federal government, has executed an agreement with the federal
01 government for repayment of past due federal tax obligations, and either 02 (i) has had a crewmember or commercial fishing 03 license under AS 16.05.480 or a permit under AS 16.43 for the year 04 immediately preceding the date of application and any other two of 05 the past five years, and has actively participated in the fishery 06 during those periods; 07 (ii) because of lack of training or lack of employment 08 opportunities in the area of residence, does not have occupational 09 opportunities available other than commercial fishing; or 10 (iii) is economically dependent on commercial 11 fishing for a livelihood and for whom commercial fishing has been 12 a traditional way of life in Alaska; 13 (2) designate agents and delegate its powers to them as necessary; 14 (3) adopt regulations necessary to carry out the provisions of 15 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 16 services provided; 17 (4) establish amortization plans for repayment of loans, which may 18 include extensions for poor fishing seasons or for adverse market conditions for 19 Alaska products; 20 (5) enter into agreements with private lending institutions, other state 21 agencies, or agencies of the federal government to carry out the purposes of 22 AS 16.10.300 - 16.10.370; 23 (6) enter into agreements with other agencies or organizations to create 24 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 25 the state; 26 (7) allow an assumption of a loan if 27 (A) the applicant has been a state resident for a continuous 28 period of two years immediately preceding the date of the request for an 29 assumption; and 30 (B) approval of the assumption would be consistent with the 31 purposes of AS 16.10.300; an applicant for a loan assumption may not be
01 disqualified because the applicant does not meet the loan eligibility 02 requirements of (1) of this subsection; 03 (8) prequalify loan applicants for a limited entry permit loan or a quota 04 shares loan and charge a fee not to exceed $200 for prequalification; 05 (9) charge and collect the fees established under this subsection; 06 (10) refinance a debt obligation incurred by a borrower or borrowers 07 under this section if the borrower or borrowers otherwise qualify for a loan under 08 AS 16.10.300 - 16.10.370; [THE DEPARTMENT SHALL COLLECT A 09 REFINANCING LOAN ORIGINATION CHARGE OF ONE-HALF PERCENT OF 10 THE AMOUNT OF THE DEBT OBLIGATION THAT HAS BEEN REFINANCED 11 WHEN THE FIRST REFINANCING PAYMENT IS DUE;] 12 (11) refinance debt obligations, not to exceed $300,000, incurred by a 13 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 14 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 15 the department may collect a refinancing loan origination charge as provided by 16 regulation. 17 * Sec. 2. AS 16.10.320(d) is amended to read: 18 (d) The total of balances outstanding on loans made to a borrower under 19 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 20 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 21 The total balances outstanding on loans made to a borrower under AS 16.10.310 22 (a)(1)(C) may not exceed $300,000. The total of balances outstanding on loans 23 made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 24 obligations may not exceed $30,000. Excluding loans made under 25 AS 16.10.310(a)(1)(C) and (D), the [THE] total of balances outstanding on all loans, 26 including debt refinancing under AS 16.10.310(a), made to a borrower under 27 AS 16.10.300 - 16.10.370 may not exceed $300,000. 28 * Sec. 3. AS 16.10.337(b) is amended to read: 29 (b) If the commission does not exercise its right of first refusal within 30 days 30 after it receives the offer, or if the permit is not subject to a buy-back program under 31 AS 16.43.290 - 16.43.330, the department shall [PROMPTLY] advertise and sell the
01 permit. If the proceeds of the sale of a permit exceed the amount necessary to pay the 02 note in full, plus penalties, costs of administration of the note, and attorney fees, the 03 excess shall be transferred by the commissioner to the debtor. At any time until the 04 permit has been sold under this subsection the debtor may repurchase the permit by 05 paying the department the amount necessary to pay the note in full, plus penalties, 06 costs of administration of the note, and attorney fees, as determined by the 07 commissioner.