SB 145: "An Act authorizing the making of loans for upgrade of commercial fishing tender vessels and gear."
00 SENATE BILL NO. 145 01 "An Act authorizing the making of loans for upgrade of commercial fishing tender 02 vessels and gear." 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 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 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 due 28 federal tax obligations, if the fisherman has been a state resident for a 29 continuous period of two years immediately preceding the date of application 30 for the loan, has filed past and current federal tax returns with the federal 31 government, has executed an agreement with the federal government for
01 repayment of past due federal tax obligations, and either 02 (i) has had a crewmember or commercial fishing license 03 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 the 05 past five years, and has actively participated in the fishery during those 06 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 fishing 11 for a livelihood and for whom commercial fishing has been a traditional 12 way of life in Alaska; 13 (E) for the purchase of fishing quota shares by a community 14 quota entity eligible under federal statute or regulation to purchase the fishing 15 quota shares if the community quota entity is not eligible or qualified for 16 financing from other recognized commercial lending institutions to purchase 17 the fishing quota shares; 18 (F) to an individual for the upgrade of existing tender 19 vessels and gear to improve the quality of Alaska seafood products, if the 20 individual has been a state resident for a continuous period of two years 21 immediately preceding the date of application for a loan under 22 AS 16.10.300 - 16.10.370; 23 (2) designate agents and delegate its powers to them as necessary; 24 (3) adopt regulations necessary to carry out the provisions of 25 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 26 services provided; 27 (4) establish amortization plans for repayment of loans, which may 28 include extensions for poor fishing seasons or for adverse market conditions for 29 Alaska products; 30 (5) enter into agreements with private lending institutions, other state 31 agencies, or agencies of the federal government to carry out the purposes of
01 AS 16.10.300 - 16.10.370; 02 (6) enter into agreements with other agencies or organizations to create 03 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 04 the state; 05 (7) allow an assumption of a loan if 06 (A) the applicant has been a state resident for a continuous 07 period of two years immediately preceding the date of the request for an 08 assumption; and 09 (B) approval of the assumption would be consistent with the 10 purposes of AS 16.10.300; an applicant for a loan assumption may not be 11 disqualified because the applicant does not meet the loan eligibility 12 requirements of (1) of this subsection; 13 (8) prequalify loan applicants for a limited entry permit loan or a quota 14 shares loan and charge a fee not to exceed $200 for prequalification; 15 (9) charge and collect the fees established under this subsection; 16 (10) refinance a debt obligation incurred by a borrower or borrowers 17 under this section if the borrower or borrowers otherwise qualify for a loan under 18 AS 16.10.300 - 16.10.370; 19 (11) refinance debt obligations, not to exceed $300,000, incurred by a 20 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 21 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 22 the department may collect a refinancing loan origination charge as provided by 23 regulation. 24 * Sec. 2. AS 16.10.320(d) is amended to read: 25 (d) The total of balances outstanding on loans made to a borrower under 26 AS 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding 27 on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $100,000. 28 The total of balances outstanding on loans made to a borrower under 29 AS 16.10.310(a)(1)(C) may not exceed $300,000. The total of balances outstanding 30 on loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal 31 tax obligations may not exceed $30,000. The total of balances outstanding on loans
01 made under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 per community 02 eligible under federal statute or regulation to establish or participate in the 03 establishment of a community quota entity. The total of balances outstanding on 04 loans made to a borrower under AS 16.10.310(a)(1)(F) may not exceed $300,000. 05 Excluding loans made under AS 16.10.310(a)(1)(C) - (F) [AS 16.10.310(a)(1)(C), 06 (D), AND (E)], the total of balances outstanding on all loans, including debt 07 refinancing under AS 16.10.310(a), made to a borrower under AS 16.10.300 - 08 16.10.370 may not exceed $300,000. 09 * Sec. 3. AS 16.10.320(e) is amended to read: 10 (e) Two or more individual commercial fishermen who each satisfy the 11 requirements specified in AS 16.10.310(a)(1)(B) may jointly, whether operating as a 12 corporation, partnership, joint venture, or otherwise, obtain a commercial fishing loan 13 for the repair, restoration, or upgrading of an existing vessel and gear, for the purchase 14 of gear, and for the construction or the purchase of a fishing vessel. Two or more 15 individuals who each satisfy the requirement specified in AS 16.10.310(a)(1)(F) 16 may jointly, whether operating as a corporation, partnership, joint venture, or 17 otherwise, obtain a commercial fishing loan for the upgrade of existing tender 18 vessels and gear to improve the quality of Alaska seafood products. Loans granted 19 under this subsection may not exceed the amount specified in (d) of this section 20 multiplied by the number of qualified applicants [COMMERCIAL FISHERMEN] 21 applying for the loan.