00                      CS FOR HOUSE BILL NO. 389(FSH)                                                                    
01 "An Act relating to loans made to commercial fishermen under the Commercial Fishing                                     
02 Loan Act for product quality improvements and energy efficiency upgrades; and                                           
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 16.10.320 is amended by adding a new subsection to read:                                           
06            (l)  For a new loan under AS 16.10.300 - 16.10.370 made on or after the                                      
07       effective date of this Act, the department may provide a reduction of the interest rate                           
08       of not more than two percent if at least 50 percent of the loan proceeds are used by the                          
09       borrower for product quality improvements or energy efficiency upgrades if the                                    
10       improvements or upgrades use products manufactured or produced in the state. When                                 
11       the department offers a reduction under this subsection, the department shall provide                             
12       the reduction to all loan applicants who meet the criterion described in this subsection.                         
13       In this subsection, "manufactured or produced" means processing, developing, or                                   
14       making an item into a new item with a distinct character and use.                                                 

01    * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).