CSHB 121(FSH): "An Act relating to loans made to commercial fishermen under the Commercial Fishing Loan Act for product quality improvements and energy efficiency upgrades; establishing the commercial charter fisheries revolving loan fund, the mariculture revolving loan fund, and the Alaska microloan revolving loan fund and relating to those funds and loans from those funds; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 121(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; 03 establishing the commercial charter fisheries revolving loan fund, the mariculture 04 revolving loan fund, and the Alaska microloan revolving loan fund and relating to those 05 funds and loans from those funds; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 16.10.320 is amended by adding a new subsection to read: 08 (l) For a new loan under AS 16.10.300 - 16.10.370, made on or after the 09 effective date of this Act, the department may provide a reduction of the interest rate 10 of not more than two percent if at least 50 percent of the loan proceeds are used by the 11 borrower for product quality improvements or energy efficiency upgrades if the 12 improvements or upgrades use products manufactured or produced in the state. When 13 the department offers a reduction under this subsection, the department shall provide
01 the reduction to all loan applicants who meet the criterion described in this subsection. 02 In this subsection, "manufactured or produced" means processing, developing, or 03 making an item into a new item with a distinct character and use. 04 * Sec. 2. AS 16.10 is amended by adding new sections to read: 05 Article 13. Commercial Charter Fisheries Revolving Loan Fund. 06 Sec. 16.10.801. Commercial charter fisheries revolving loan fund. (a) The 07 commercial charter fisheries revolving loan fund is created in the Department of 08 Commerce, Community, and Economic Development to carry out the purposes of 09 AS 16.10.801 - 16.10.890. 10 (b) The commercial charter fisheries revolving loan fund consists of the 11 following: 12 (1) money appropriated to, transferred to, or received by gift, grant, 13 devise, bequest, or donation to the fund; 14 (2) principal and interest payments or other income earned on loans or 15 investments of the fund; 16 (3) money chargeable to principal or interest that is collected through 17 liquidation by foreclosure or other process on loans made under AS 16.10.801 - 18 16.10.890. 19 (c) Money in the fund may be used by the legislature to make appropriations 20 for costs of administering AS 16.10.801 - 16.10.890. 21 Sec. 16.10.805. Powers and duties of the department. The department may 22 (1) make loans to eligible applicants under AS 16.10.801 - 16.10.890 23 (A) for the purchase of charter halibut permits; 24 (B) for the purchase or construction of a charter halibut fishing 25 vessel; 26 (C) to upgrade existing charter halibut fishing vessels and gear 27 for the purpose of improving engine fuel efficiency; 28 (D) to refinance debt obligations made by other lenders more 29 than 12 months before the department received the loan application and 30 incurred by an applicant for the purchase of charter halibut fishing vessels or 31 gear if the applicant otherwise qualifies for a loan under AS 16.10.801 -
01 16.10.890; the department may collect a refinancing loan origination charge as 02 provided by regulation; 03 (2) receive, take, hold, and administer any appropriation, transfer, gift, 04 grant, bequest, devise, or donation of money for the fund; 05 (3) establish amortization plans for repayment of loans, including 06 extensions of the terms of loans; 07 (4) allow an assumption of a loan if 08 (A) the applicant meets the requirements established under this 09 section; and 10 (B) approval of the assumption would be consistent with the 11 purposes of AS 16.10.801 - 16.10.890; 12 (5) establish the rate of interest for loans consistent with law; 13 (6) charge and collect fees for services provided under AS 16.10.801 - 14 16.10.890; 15 (7) adopt regulations under AS 44.62 necessary to carry out the 16 provisions of AS 16.10.801 - 16.10.890, including regulations to establish reasonable 17 fees for services provided; and 18 (8) designate agents and delegate powers as necessary to the agents. 19 Sec. 16.10.810. Eligibility. (a) For an applicant to be eligible for a loan under 20 AS 16.10.801 - 16.10.890, the applicant shall be a resident of the state, as determined 21 under (c) of this section, and shall 22 (1) qualify for the purchase of a charter halibut permit under applicable 23 law; 24 (2) qualify as a transferee for a charter halibut permit under applicable 25 law; 26 (3) purchase or construct a charter halibut fishing vessel; or 27 (4) upgrade an existing charter halibut fishing vessel or gear for the 28 purpose of improving engine fuel efficiency. 29 (b) In addition to the requirements set out in (a) of this section, the applicant 30 (1) may not be eligible for financing from other recognized 31 commercial lending institutions; or
01 (2) shall be able to obtain only a portion of the total loan request from 02 a recognized commercial lending institution. 03 (c) To meet the residency requirements of (a) of this section, the applicant 04 (1) shall physically reside in this state and maintain a domicile in this 05 state during the 24 consecutive months preceding the date of application for the 06 program; and 07 (2) may not have 08 (A) declared or established residency in another state; or 09 (B) received residency or a benefit based on residency from 10 another state. 11 Sec. 16.10.815. Limitations on loans. (a) Except as provided in (b) of this 12 section, a loan under AS 16.10.801 - 16.10.890 13 (1) may not exceed $100,000 a year; 14 (2) may not exceed a term of 15 years, except for extensions under 15 AS 16.10.805; 16 (3) may not bear interest at a rate greater than the prime rate, as 17 defined in AS 44.88.599, plus two percentage points, but which may not be less than 18 three percent per year and not more than 10 1/2 percent a year; 19 (4) must be secured by a first priority lien on collateral acceptable to 20 the commissioner; and 21 (5) may not be made to a person who has a past due child support 22 obligation established by court order or by the child support services agency under 23 AS 25.27.160 - 25.27.220 at the time of application. 24 (b) The interest rate for loans for the improvement of engine fuel efficiency 25 must be two percentage points below the prime rate, as defined in AS 44.88.599, but 26 may not be less than three percent a year and not more than 10 1/2 percent a year. 27 (c) The total balances outstanding on loans made to a borrower under 28 AS 16.10.805 may not exceed $300,000. 29 (d) After the initial interest rate is set under (a) or (b) of this section for a loan 30 made under AS 16.10.801 - 16.10.890, the department may provide a reduction of the 31 interest rate of not more than two percent if at least 50 percent of the loan proceeds are
01 used by the borrower for engine fuel efficiency improvements if the upgrades use 02 products manufactured or produced in the state. When the department offers a 03 reduction under this subsection, the department shall provide the reduction to all loan 04 applicants who meet the criterion described in this subsection. In this subsection, 05 "manufactured or produced" means processing, developing, or making an item into a 06 new item with a distinct character and use. 07 Sec. 16.10.820. Default. If the borrower defaults on a note, the department 08 shall notify the borrower of the default and the consequences of default by mailing a 09 notice to the borrower's most recent address provided to the department by the 10 borrower or obtained by the department. 11 Sec. 16.10.825. Special account established. (a) The foreclosure expense 12 account is established as a special account within the commercial charter fisheries 13 revolving loan fund. 14 (b) The department may expend money credited to the foreclosure expense 15 account when necessary to protect the state's security interest in collateral on loans 16 granted under AS 16.10.815 or to defray expenses incurred during foreclosure 17 proceedings after an obligor defaults. 18 Sec. 16.10.830. Disposal of property acquired after default. The department 19 shall dispose of property acquired through default of a loan made under AS 16.10.801 20 - 16.10.890. Disposal must be made in a manner that serves the best interest of the 21 state and may include the amortization of payments over a period of years. 22 Sec. 16.10.835. Waiver of confidentiality. The commissioner may release 23 information about the borrower's loan to any individual if release of the information 24 has been authorized by the borrower. 25 Sec. 16.10.890. Definitions. In AS 16.10.801 - 16.10.890, 26 (1) "commissioner" means the commissioner of commerce, 27 community, and economic development; 28 (2) "department" means the Department of Commerce, Community, 29 and Economic Development. 30 Article 14. Mariculture Revolving Loan Fund. 31 Sec. 16.10.900. Mariculture revolving loan fund. (a) The mariculture
01 revolving loan fund is created within the Department of Commerce, Community, and 02 Economic Development to carry out the purposes of AS 16.10.900 - 16.10.945. 03 (b) The mariculture revolving loan fund consists of the following: 04 (1) money appropriated to, transferred to, or received by gift, grant, 05 devise, bequest, or donation to the fund; 06 (2) principal and interest payments or other income earned on loans or 07 investments of the fund; and 08 (3) money chargeable to principal or interest that is collected through 09 liquidation by foreclosure or other process on loans made under AS 16.10.900 - 10 16.10.945. 11 (c) Money in the fund may be used by the legislature to make appropriations 12 for costs of administering AS 16.10.900 - 16.10.945. 13 Sec. 16.10.905. Powers and duties of the department. The department may 14 (1) make loans to eligible applicants under AS 16.10.900 - 16.10.945 15 for the planning, construction, and operation of a mariculture business; 16 (2) receive, take, hold, and administer any appropriation, transfer, gift, 17 grant, bequest, devise, or donation of money for the fund; 18 (3) establish amortization plans for repayment of loans, including 19 extensions of the terms of loans; 20 (4) allow an assumption of a loan if 21 (A) the applicant meets the requirements established under this 22 section; and 23 (B) approval of the assumption would be consistent with the 24 purposes of AS 16.10.900 - 16.10.945; 25 (5) establish the rate of interest for loans consistent with law; 26 (6) charge and collect fees for services provided under AS 16.10.900 - 27 16.10.945; 28 (7) adopt regulations under AS 44.62 necessary to carry out the 29 provisions of AS 16.10.900 - 16.10.945, including regulations to establish reasonable 30 fees for services provided; and 31 (8) designate agents and delegate powers as necessary to the agents.
01 Sec. 16.10.910. Eligibility. (a) For an applicant to be eligible for a loan under 02 AS 16.10.900 - 16.10.945, the applicant shall 03 (1) be a resident of the state, as determined under (c) of this section; 04 (2) have a permitted mariculture farm location in this state; and 05 (3) have experience or training in the mariculture industry. 06 (b) In addition to the requirements set out in (a) of this section, the applicant 07 (1) may not be eligible for financing from other recognized 08 commercial lending institutions; or 09 (2) shall be able to obtain only a portion of the total loan request from 10 a recognized commercial lending institution. 11 (c) To meet the residency requirements of (a) of this section, the applicant 12 (1) shall physically reside in this state and maintain a domicile in this 13 state during the 24 consecutive months preceding the date of application for the 14 program; and 15 (2) may not have 16 (A) declared or established residency in another state; or 17 (B) received residency or a benefit based on residency from 18 another state. 19 Sec. 16.10.915. Limitations on loans. (a) Except as provided in (b) and (c) of 20 this section, a loan under AS 16.10.900 - 16.10.945 21 (1) may not exceed $100,000 a year; 22 (2) may not exceed a term of 20 years, except for extensions under 23 AS 16.10.905; 24 (3) may not bear interest at a rate greater than the prime rate, as 25 defined in AS 44.88.599, plus one percentage point, but which may not be less than 26 five percent a year and not more than nine percent a year; 27 (4) must be secured by a first priority lien on collateral acceptable to 28 the department; and 29 (5) may not be made to a person who has a past due child support 30 obligation established by court order or by the child support services agency under 31 AS 25.27.160 - 25.27.220 at the time of application.
01 (b) Subsequent loans may be made to the borrower under AS 16.10.910 if the 02 total of the balances outstanding on the loans received by the borrower does not 03 exceed $300,000. 04 (c) A loan under AS 16.10.910 may be made for the purchase of boats or 05 vessels determined to be integral to the operation of the farm. 06 (d) For a loan made under AS 16.10.900 - 16.10.945, the department may 07 provide a reduction of the interest rate of not more than two percent if at least 50 08 percent of the loan proceeds are used by the borrower for purchasing products 09 manufactured or produced in the state. When the department offers a reduction under 10 this subsection, the department shall provide the reduction to all loan applicants who 11 meet the criterion described in this subsection. In this subsection, "manufactured or 12 produced" means processing, developing, or making an item into a new item with a 13 distinct character and use. 14 Sec. 16.10.920. Repayment of principal of and interest on loans. The 15 department may not require the repayment of principal and interest on a loan made 16 under AS 16.10.910 during the first six years of the loan. Interest on the principal of a 17 loan made under AS 16.10.910 may be deferred for a period of not more than the first 18 six years of the loan. 19 Sec. 16.10.925. Default. If the borrower defaults on a note, the department 20 shall notify the borrower of the default and the consequences of default by mailing a 21 notice to the borrower's most recent address provided to the department by the 22 borrower or obtained by the department. 23 Sec. 16.10.930. Special account established. (a) The foreclosure expense 24 account is established as a special account in the mariculture revolving loan fund. 25 (b) The department may expend money credited to the foreclosure expense 26 account when necessary to protect the state's security interest in collateral on loans 27 granted under AS 16.10.910 or to defray expenses incurred during foreclosure 28 proceedings after an obligor defaults. 29 Sec. 16.10.935. Disposal of property acquired after default. The department 30 shall dispose of property acquired through default of a loan made under AS 16.10.900 31 - 16.10.945. Disposal must be made in a manner that serves the best interest of the
01 state and may include the amortization of payments over a period of years. 02 Sec. 16.10.940. Waiver of confidentiality. The commissioner may release 03 information about the borrower's loan to any individual if release of the information 04 has been authorized by the borrower. 05 Sec. 16.10.945. Definitions. In AS 16.10.900 - 16.10.945, 06 (1) "commissioner" means the commissioner of commerce, 07 community, and economic development; 08 (2) "department" means the Department of Commerce, Community, 09 and Economic Development; 10 (3) "mariculture" means the farming of shellfish and aquatic plants as 11 defined in AS 16.40.199. 12 * Sec. 3. AS 44.33 is amended by adding new sections to read: 13 Article 15. Alaska Microloan Revolving Loan Fund. 14 Sec. 44.33.950. Alaska microloan revolving loan fund. (a) The Alaska 15 microloan revolving loan fund is created in the Department of Commerce, 16 Community, and Economic Development to carry out the purposes of AS 44.33.950 - 17 44.33.990. 18 (b) The Alaska microloan revolving loan fund consists of the following: 19 (1) money appropriated to, transferred to, or received by gift, grant, 20 devise, bequest, or donation to the fund; 21 (2) principal and interest payments or other income earned on loans or 22 investments of the fund; 23 (3) money chargeable to principal or interest that is collected through 24 liquidation by foreclosure or other process on loans made under AS 44.33.950 - 25 44.33.990. 26 (c) Money in the fund may be used by the legislature to make appropriations 27 for costs of administering AS 44.33.950 - 44.33.990. 28 Sec. 44.33.955. Powers and duties of the department. The department may 29 (1) make loans to eligible applicants under AS 44.33.950 - 44.33.990 30 to be used for working capital, equipment, construction, or other commercial purposes 31 by a business located in the state;
01 (2) receive, take, hold, and administer any appropriation, transfer, gift, 02 grant, bequest, devise, or donation of money for the fund; 03 (3) establish amortization plans for repayment of loans, including 04 extensions of the terms of loans; 05 (4) allow an assumption of a loan if 06 (A) the applicant meets the requirements established under this 07 section; and 08 (B) approval of the assumption would be consistent with the 09 purposes of AS 44.33.950 - 44.33.990; 10 (5) establish the rate of interest for loans consistent with law; 11 (6) charge and collect fees for services provided under AS 44.33.950 - 12 44.33.990; 13 (7) adopt regulations under AS 44.62 necessary to carry out the 14 provisions of AS 44.33.950 - 44.33.990, including regulations to establish reasonable 15 fees for services provided; and 16 (8) designate agents and delegate powers as necessary to the agents. 17 Sec. 44.33.960. Eligibility. (a) For an applicant to be eligible for a loan under 18 AS 44.33.950 - 44.33.990, the applicant shall 19 (1) be a resident of the state, as determined under (b) of this section; 20 (2) provide a reasonable amount of money from other nonstate sources 21 for use on any project or enterprise for which money from a loan will be used; and 22 (3) if the requested loan amount is $35,000 or more, provide to the 23 department a document from a state financial institution stating that 24 (A) the applicant has been denied a loan for the same purpose; 25 or 26 (B) a loan from the financial institution is contingent on the 27 applicant also receiving a loan from the fund. 28 (b) To meet the residency requirements of (a) of this section, the applicant 29 (1) shall physically reside in this state and maintain a domicile in this 30 state during the 12 consecutive months preceding the date of application for the 31 program; and
01 (2) may not have 02 (A) declared or established residency in another state; or 03 (B) received residency or a benefit based on residency from 04 another state. 05 Sec. 44.33.965. Limitations on loans. (a) The department may use money 06 from the Alaska microloan revolving loan fund to make loans of up to $35,000 to a 07 person or loans of up to $70,000 to two or more persons. 08 (b) A loan under AS 44.33.950 - 44.33.990 09 (1) may not exceed a term of six years, except for extensions under 10 AS 44.33.955; 11 (2) may not bear interest at a rate greater than the prime rate, as 12 defined in AS 44.88.599, plus one percentage point but which may not be less than six 13 percent a year and not more than eight percent a year; 14 (3) must be secured by collateral acceptable to the commissioner; and 15 (4) may not be made to a person who has a past due child support 16 obligation established by court order or by the child support services agency under 17 AS 25.27.160 - 25.27.220 at the time of application. 18 Sec. 44.33.970. Special account established. (a) The foreclosure expense 19 account is established as a special account in the Alaska microloan revolving loan 20 fund. 21 (b) The department may expend money credited to the foreclosure expense 22 account when necessary to protect the state's security interest in collateral on loans 23 granted under AS 44.33.960 or to defray expenses incurred during foreclosure 24 proceedings after an obligor defaults. 25 Sec. 44.33.975. Default. If the borrower defaults on a note, the department 26 shall notify the borrower of the default and the consequences of default by mailing a 27 notice to the borrower's most recent address provided to the department by the 28 borrower or obtained by the department. 29 Sec. 44.33.980. Disposal of property acquired after default. The department 30 shall dispose of property acquired through default of a loan made under AS 44.33.950 31 - 44.33.990. Disposal must be made in a manner that serves the best interest of the
01 state and may include the amortization of payments over a period of years. 02 Sec. 44.33.990. Definitions. In AS 44.33.950 - 44.33.990, 03 (1) "commissioner" means the commissioner of commerce, 04 community, and economic development; 05 (2) "department" means the Department of Commerce, Community, 06 and Economic Development. 07 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).