CSHB 304(FSH): "An Act relating to the commercial fishing loan program; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 304(FSH) 01 "An Act relating to the commercial fishing loan program; and providing for an effective 02 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, who have had an 10 annual 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, is not eligible for 08 financing from other recognized commercial lending institutions, and 09 [EITHER] 10 (i) because of lack of training or lack of employment 11 opportunities in the area of residence, does not have occupational 12 opportunities available other than commercial fishing; or 13 (ii) is economically dependent on commercial fishing 14 for a livelihood and for whom commercial fishing has been a traditional 15 way of life in Alaska; 16 (C) for the purchase of quota shares for fisheries in or off the 17 state by individual commercial fishermen who 18 (i) have been state residents for a continuous period of 19 two years immediately preceding the date of application for a loan 20 under AS 16.10.300 - 16.10.370; 21 (ii) for any two of the past five years, possessed an 22 annual crewmember or commercial fishing license under AS 16.05.480 23 or a permit under AS 16.43 and actively participated in a fishery for 24 which the license or permit was issued; 25 (iii) qualify as transferees for quota shares under 26 applicable law; and 27 (iv) are not eligible for financing from other recognized 28 commercial lending institutions to purchase quota shares; 29 (D) to an individual commercial fisherman to satisfy past due 30 federal tax obligations, if the fisherman has been a state resident for a 31 continuous period of two years immediately preceding the date of application
01 for the loan, has filed past and current federal tax returns with the federal 02 government, has executed an agreement with the federal government for 03 repayment of past due federal tax obligations, and either 04 (i) [HAS HAD AN ANNUAL CREWMEMBER OR 05 COMMERCIAL FISHING LICENSE UNDER AS 16.05.480 OR A 06 PERMIT UNDER AS 16.43 FOR THE YEAR IMMEDIATELY 07 PRECEDING THE DATE OF APPLICATION AND ANY OTHER 08 TWO OF THE PAST FIVE YEARS, AND HAS ACTIVELY 09 PARTICIPATED IN THE FISHERY DURING THOSE PERIODS; 10 (ii)] because of lack of training or lack of employment 11 opportunities in the area of residence, does not have occupational 12 opportunities available other than commercial fishing; or 13 (ii) [(iii)] is economically dependent on commercial 14 fishing for a livelihood and for whom commercial fishing has been a 15 traditional way of life in Alaska; 16 (E) for the purchase of fishing quota shares by a community 17 quota entity eligible under federal statute or regulation to purchase the fishing 18 quota shares if the community quota entity is not eligible or qualified for 19 financing from other recognized commercial lending institutions to purchase 20 the fishing quota shares; 21 (F) to an individual for the upgrade of existing tender vessels 22 and gear to improve the quality of Alaska seafood products, if the individual 23 has been a state resident for a continuous period of two years immediately 24 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 25 (2) designate agents and delegate its powers to them as necessary; 26 (3) adopt regulations necessary to carry out the provisions of 27 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 28 services provided; 29 (4) establish amortization plans for repayment of loans, which may 30 include extensions for poor fishing seasons or for adverse market conditions for 31 Alaska products;
01 (5) enter into agreements with private lending institutions, other state 02 agencies, or agencies of the federal government to carry out the purposes of 03 AS 16.10.300 - 16.10.370; 04 (6) enter into agreements with other agencies or organizations to create 05 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 06 the state; 07 (7) allow an assumption of a loan if 08 (A) the applicant has been a state resident for a continuous 09 period of two years immediately preceding the date of the request for an 10 assumption; and 11 (B) approval of the assumption would be consistent with the 12 purposes of AS 16.10.300; an applicant for a loan assumption may not be 13 disqualified because the applicant does not meet the loan eligibility 14 requirements of (1) of this subsection; 15 (8) prequalify loan applicants for a limited entry permit loan or a quota 16 shares loan and charge a fee not to exceed $200 for prequalification; 17 (9) charge and collect the fees established under this subsection; 18 (10) refinance a debt obligation incurred by a borrower or borrowers 19 under this section if the borrower or borrowers otherwise qualify for a loan under 20 AS 16.10.300 - 16.10.370; 21 (11) refinance debt obligations, not to exceed $200,000 [$300,000], 22 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 23 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 24 16.10.370; the department may collect a refinancing loan origination charge as 25 provided by regulation. 26 * Sec. 2. AS 16.10.320(a) is amended to read: 27 (a) Except as permitted in (h) of this section, a loan under AS 16.10.300 - 28 16.10.370 29 (1) may not exceed a term of 15 years, except for extensions under 30 AS 16.10.310(a)(4); 31 (2) may not bear interest exceeding the prime rate plus two
01 percentage points [10 1/2 PERCENT]; for purposes of this paragraph, "prime 02 rate" has the meaning given in AS 44.88.599; 03 (3) must be secured by a first priority lien and appropriate security 04 agreement; 05 (4) may not exceed 80 [90] percent of the appraised value of the 06 collateral used to secure the loan; and 07 (5) may not be made to a person who has a past due child support 08 obligation established by court order or by the child support services agency under 09 AS 25.27.160 - 25.27.220 at the time of application. 10 * Sec. 3. AS 16.10.320(d) is amended to read: 11 (d) The total of balances outstanding on loans made to a borrower under 12 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding on 13 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. The 14 total of balances outstanding on loans made to a borrower under 15 AS 16.10.310(a)(1)(C) may not exceed $300,000. The total of balances outstanding on 16 loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 17 obligations may not exceed $35,000 [$30,000]. The total of balances outstanding on 18 loans made under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each [PER] 19 community eligible under federal statute or regulation to establish or participate in the 20 establishment of a community quota entity. The total of balances outstanding on loans 21 made to a borrower under AS 16.10.310(a)(1)(F) may not exceed $300,000. Excluding 22 loans made under AS 16.10.310(a)(1)(E) [AS 16.10.310(a)(1)(C) - (F)], the total of 23 balances outstanding on all loans, including debt refinancing under AS 16.10.310(a), 24 made to a borrower under AS 16.10.300 - 16.10.370 may not exceed $335,000 25 [$300,000]. 26 * Sec. 4. AS 16.10.315 is repealed. 27 * Sec. 5. This Act takes effect July 1, 2006.