Enrolled HB 20: Relating to commercial fishing loans for improving fuel efficiency and increasing the maximum amount for certain loans under the Commercial Fishing Loan Act; and providing for an effective date.
00Enrolled HB 20 01 Relating to commercial fishing loans for improving fuel efficiency and increasing the 02 maximum amount for certain loans under the Commercial Fishing Loan Act; and providing 03 for an effective date. 04 _______________ 05 * Section 1. AS 16.10.310(a) is amended to read: 06 (a) The department may 07 (1) make loans 08 (A) to individual commercial fishermen who have been state 09 residents for a continuous period of two years immediately preceding the date 10 of application for a loan under AS 16.10.300 - 16.10.370, who have had an 11 annual crewmember or commercial fishing license under AS 16.05.480 or a 12 permit under AS 16.43 for the year immediately preceding the date of 13 application and any other two of the past five years, and who actively 14 participated in the fishery during those periods
01 (i) for the purchase of entry permits; [OR] 02 (ii) to upgrade existing vessels and gear for the purpose 03 of improving the quality of Alaska seafood products; or 04 (iii) for propulsion engine or generator engine 05 replacements on existing vessels for the purpose of improving fuel 06 efficiency; 07 (B) to an individual for the repair, restoration, or upgrading of 08 existing vessels and gear, for the purchase of entry permits and gear, and for 09 the construction and purchase of vessels, if the individual has been a state 10 resident for a continuous period of two years immediately preceding the date 11 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 12 financing from a state financial institution as defined in AS 06.01.050, a 13 federally chartered financial institution, or the Commercial Fishing and 14 Agricultural Bank, and 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 19 for 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 an 27 annual crewmember or commercial fishing license under AS 16.05.480 28 or a permit under AS 16.43 and actively participated in a fishery for 29 which the license or permit was issued; 30 (iii) qualify as transferees 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) to an individual commercial fisherman to satisfy past due 04 federal tax obligations, if the fisherman has been a state resident for a 05 continuous period of two years immediately preceding the date of application 06 for the loan, has filed past and current federal tax returns with the federal 07 government, has executed an agreement with the federal government for 08 repayment of past due federal tax obligations, and either 09 (i) because of lack of training or lack of employment 10 opportunities in the area of residence, does not have occupational 11 opportunities available other than commercial fishing; or 12 (ii) is economically dependent on commercial fishing 13 for a livelihood and for whom commercial fishing has been a traditional 14 way of life in Alaska; 15 (E) for the purchase of fishing quota shares by a community 16 quota entity eligible under federal statute or regulation to purchase the fishing 17 quota shares if the community quota entity is not eligible or qualified for 18 financing from other recognized commercial lending institutions to purchase 19 the fishing quota shares; 20 (F) to an individual for the upgrade of existing tender vessels 21 and gear to improve the quality of Alaska seafood products, if the individual 22 has been a state resident for a continuous period of two years immediately 23 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 24 (2) designate agents and delegate its powers to them as necessary; 25 (3) adopt regulations necessary to carry out the provisions of 26 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 27 services provided; 28 (4) establish amortization plans for repayment of loans, which may 29 include extensions for poor fishing seasons or for adverse market conditions for 30 Alaska products; 31 (5) enter into agreements with private lending institutions, other state
01 agencies, or agencies of the federal government to carry out the purposes of 02 AS 16.10.300 - 16.10.370; 03 (6) enter into agreements with other agencies or organizations to create 04 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 05 the state; 06 (7) allow an assumption of a loan if 07 (A) the applicant has been a state resident for a continuous 08 period of two years immediately preceding the date of the request for an 09 assumption; and 10 (B) approval of the assumption would be consistent with the 11 purposes of AS 16.10.300; an applicant for a loan assumption may not be 12 disqualified because the applicant does not meet the loan eligibility 13 requirements of (1) of this subsection; 14 (8) prequalify loan applicants for a limited entry permit loan or a quota 15 shares loan and charge a fee not to exceed $200 for prequalification; 16 (9) charge and collect the fees established under this subsection; 17 (10) refinance a debt obligation incurred by a borrower or borrowers 18 under this section if the borrower or borrowers otherwise qualify for a loan under 19 AS 16.10.300 - 16.10.370; 20 (11) refinance debt obligations, not to exceed $200,000, incurred by a 21 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 22 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 23 the department may collect a refinancing loan origination charge as provided by 24 regulation. 25 * Sec. 2. AS 16.10.320(i) is amended to read: 26 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 27 loan may not be made to the borrower under AS 16.10.310(a)(1)(B), unless the loan 28 requested under AS 16.10.310(a)(1) is for propulsion engine or generator engine 29 replacement on an existing vessel for the purpose of improving fuel efficiency. If a 30 loan is made to a borrower under AS 16.10.310(a)(1)(B), a subsequent loan may be 31 made to the borrower under AS 16.10.310(a)(1)(A) if the total of the balance
01 outstanding on loans received by the borrower under AS 16.10.310(a)(1)(A) and (B) 02 does not exceed $400,000 [$300,000]. 03 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).