00                      CS FOR HOUSE BILL NO. 304(FIN)                                                                    
01 "An Act relating to the Alaska microloan revolving loan fund and loans from the fund."                                  
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 44.33.960(a) is amended to read:                                                                   
04            (a)  For an applicant to be eligible for a loan under AS 44.33.950 - 44.33.990,                              
05       the applicant shall                                                                                               
06                 (1)  be a resident of the state, as determined under (b) of this section;                               
07                 (2)  provide a reasonable amount of money from other nonstate sources                                   
08       for use on any project or enterprise for which money from a loan will be used; and                                
09                 (3)  if the requested loan amount is more than $35,000 [OR MORE],                                   
10       provide to the department a document from a state financial institution stating that                              
11                      (A)  the applicant has been denied a loan for the same purpose;                                    
12            or                                                                                                           
13                      (B)  a loan from the financial institution is contingent on the                                    
14            applicant also receiving a loan from the fund.                                                               
15    * Sec. 2. AS 44.33.965(b) is amended to read:                                                                      

01            (b)  A loan under AS 44.33.950 - 44.33.990                                                                   
02                 (1)  may not exceed a term of 15 [SIX] years, except for extensions                                 
03       under AS 44.33.955;                                                                                               
04 (2)  may not bear interest at a rate greater than the prime rate, as                                                    
05 defined in AS 44.88.599, plus two [ONE] percentage points [POINT], but that                                 
06 [WHICH] may not be less than four [SIX] percent a year or more than eight percent a                                 
07       year;                                                                                                             
08                 (3)  must be secured by collateral acceptable to the commissioner; and                                  
09                 (4)  may not be made to a person who has a past due child support                                       
10 obligation established by court order or by the child support services agency under                                     
11       AS 25.27.160 - 25.27.220 at the time of application.                                                              
12    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
13 read:                                                                                                                   
14 REPORT TO LEGISLATURE. The Department of Commerce, Community, and                                                       
15 Economic Development shall provide a written report to the legislature on the activity,                                 
16 effectiveness, and suggestions for improvement of the Alaska microloan revolving loan fund                              
17 established under AS 44.33.950. The Department of Commerce, Community, and Economic                                     
18 Development shall deliver the report to the senate secretary and the chief clerk of the house of                        
19 representatives not later than January 15, 2022, and notify the legislature that the report is                          
20 available.                                                                                                              
21    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
22 read:                                                                                                                   
23 APPLICABILITY. AS 44.33.960(a), as amended by sec. 1 of this Act, and                                                   
24 AS 44.33.965(b), as amended by sec. 2 of this Act, apply to applications for loans under                                
25 AS 44.33.950 - 44.33.990 made on or after the effective date of this Act.