CSHB 304(FIN) am: "An Act relating to the commercial fishing loan program; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 304(FIN) am 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 a state financial institution as defined in AS 06.01.050, a 09 federally chartered financial institution, or the Commercial Fishing and 10 Agricultural Bank, and [EITHER] 11 (i) because of lack of training or lack of employment 12 opportunities in the area of residence, does not have occupational 13 opportunities available other than commercial fishing; or 14 (ii) is economically dependent on commercial fishing 15 for a livelihood and for whom commercial fishing has been a traditional 16 way of life in Alaska; 17 (C) for the purchase of quota shares for fisheries in or off the 18 state by individual commercial fishermen who 19 (i) have been state residents for a continuous period of 20 two years immediately preceding the date of application for a loan 21 under AS 16.10.300 - 16.10.370; 22 (ii) for any two of the past five years, possessed an 23 annual crewmember or commercial fishing license under AS 16.05.480 24 or a permit under AS 16.43 and actively participated in a fishery for 25 which the license or permit was issued; 26 (iii) qualify as transferees for quota shares under 27 applicable law; and 28 (iv) are not eligible for financing from other recognized 29 commercial lending institutions to purchase quota shares; 30 (D) to an individual commercial fisherman to satisfy past due 31 federal tax obligations, if the fisherman has been a state resident for a
01 continuous period of two years immediately preceding the date of application 02 for the loan, has filed past and current federal tax returns with the federal 03 government, has executed an agreement with the federal government for 04 repayment of past due federal tax obligations, and either 05 (i) [HAS HAD AN ANNUAL CREWMEMBER OR 06 COMMERCIAL FISHING LICENSE UNDER AS 16.05.480 OR A 07 PERMIT UNDER AS 16.43 FOR THE YEAR IMMEDIATELY 08 PRECEDING THE DATE OF APPLICATION AND ANY OTHER 09 TWO OF THE PAST FIVE YEARS, AND HAS ACTIVELY 10 PARTICIPATED IN THE FISHERY DURING THOSE PERIODS; 11 (ii)] because of lack of training or lack of employment 12 opportunities in the area of residence, does not have occupational 13 opportunities available other than commercial fishing; or 14 (ii) [(iii)] is economically dependent on commercial 15 fishing for a livelihood and for whom commercial fishing has been a 16 traditional way of life in Alaska; 17 (E) for the purchase of fishing quota shares by a community 18 quota entity eligible under federal statute or regulation to purchase the fishing 19 quota shares if the community quota entity is not eligible or qualified for 20 financing from other recognized commercial lending institutions to purchase 21 the fishing quota shares; 22 (F) to an individual for the upgrade of existing tender vessels 23 and gear to improve the quality of Alaska seafood products, if the individual 24 has been a state resident for a continuous period of two years immediately 25 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 26 (2) designate agents and delegate its powers to them as necessary; 27 (3) adopt regulations necessary to carry out the provisions of 28 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 29 services provided; 30 (4) establish amortization plans for repayment of loans, which may 31 include extensions for poor fishing seasons or for adverse market conditions for
01 Alaska products; 02 (5) enter into agreements with private lending institutions, other state 03 agencies, or agencies of the federal government to carry out the purposes of 04 AS 16.10.300 - 16.10.370; 05 (6) enter into agreements with other agencies or organizations to create 06 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 07 the state; 08 (7) allow an assumption of a loan if 09 (A) the applicant has been a state resident for a continuous 10 period of two years immediately preceding the date of the request for an 11 assumption; and 12 (B) approval of the assumption would be consistent with the 13 purposes of AS 16.10.300; an applicant for a loan assumption may not be 14 disqualified because the applicant does not meet the loan eligibility 15 requirements of (1) of this subsection; 16 (8) prequalify loan applicants for a limited entry permit loan or a quota 17 shares loan and charge a fee not to exceed $200 for prequalification; 18 (9) charge and collect the fees established under this subsection; 19 (10) refinance a debt obligation incurred by a borrower or borrowers 20 under this section if the borrower or borrowers otherwise qualify for a loan under 21 AS 16.10.300 - 16.10.370; 22 (11) refinance debt obligations, not to exceed $200,000 [$300,000], 23 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 24 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 25 16.10.370; the department may collect a refinancing loan origination charge as 26 provided by regulation. 27 * Sec. 2. AS 16.10.320(a) is amended to read: 28 (a) Except as permitted in (h) of this section, a loan under AS 16.10.300 - 29 16.10.370 30 (1) may not exceed a term of 15 years, except for extensions under 31 AS 16.10.310(a)(4);
01 (2) may not bear interest exceeding the prime rate, as defined by 02 AS 44.88.599, plus two percentage points, but not more than 10 1/2 percent; 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 $400,000 25 [$300,000]. 26 * Sec. 4. AS 16.10.315 is repealed. 27 * Sec. 5. This Act takes effect July 1, 2006.