HB 199: "An Act relating to the Department of Commerce, Community, and Economic Development; relating to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the Alaska Commercial Fishing and Agriculture Bank; and providing for an effective date."
00 HOUSE BILL NO. 199 01 "An Act relating to the Department of Commerce, Community, and Economic 02 Development; relating to the Alaska Commercial Fishing and Agriculture Bank; 03 relating to certain loans made by the Alaska Commercial Fishing and Agriculture Bank; 04 and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 09 Subject to legislative appropriation, the Department of Commerce, Community, and 10 Economic Development shall purchase nonvoting, preferred shares issued by the Alaska 11 Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 12 enabling the bank to make loans to persons involved in the state's commercial fishing industry 13 under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 14 shares the department purchased under this section 20 years after the purchase. If the bank
01 fails to repurchase the shares 20 years after the purchase by the department, the commissioner 02 of commerce, community, and economic development may appoint a receiver to direct, 03 manage, and operate the bank until the shares have been repurchased. Upon voluntary or 04 involuntary liquidation of the bank, and upon repayment of all legal debts and obligations of 05 the bank, all nonvoting, preferred shares owned by the department have priority for 06 redemption over all other forms and amounts of ownership of the bank. 07 (b) A loan made by the Alaska Commercial Fishing and Agriculture Bank using funds 08 provided by the Department of Commerce, Community, and Economic Development's 09 purchase of shares under this section 10 (1) shall have a fixed term of 15 years; 11 (2) may not bear interest 12 (A) exceeding the prime rate, as defined in AS 44.88.599, plus 13 two percentage points; or 14 (B) at a rate of more than 5.25 percent a year. 15 (c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 16 and Agriculture Bank shall provide the division within the Department of Commerce, 17 Community, and Economic Development that is responsible for banking and securities, a list 18 of each loan originated or refinanced under (b) of this section, with confidential borrower 19 information redacted. The list must include, for each loan, a comparison of 20 (1) the loan's baseline interest earnings, which is calculated as the loan's 21 refinanced or originated principal multiplied by the interest rate and term for the loan before it 22 was refinanced, or the interest rate and term that the loan would have had if the loan had not 23 been made by the Alaska Commercial Fishing and Agriculture Bank under (b) of this section, 24 projected over the term of the loan; and 25 (2) the loan's actual interest earnings, which is calculated as the loan's 26 refinanced or originated principal times the loan's actual interest rate as originated or 27 refinanced under (b) of this section, projected over the term of the loan. 28 (d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 29 provides the Department of Commerce, Community, and Economic Development the list 30 required under (c) of this section, the department shall audit and review the listed information. 31 If the department determines that the difference in projected interest earnings for all loans
01 originated or refinanced under (b) of this section for the Alaska Commercial Fishing and 02 Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 03 shares purchased by the department under (a) of this section, the department shall request that 04 the bank repay the difference to the department. 05 (e) If the Department of Commerce, Community, and Economic Development 06 requests that the Alaska Commercial Fishing and Agriculture Bank repay a sum of money 07 under (d) of this section, the bank shall make the payment within 30 days. 08 (f) Subject to appropriation, the department shall purchase shares issued by the 09 Alaska Commercial Fishing and Agriculture Bank under (a) of this section using an amount 10 equal to the amount that was in the former Alaska capstone avionics revolving loan fund 11 (former AS 44.33.650 - 44.33.690) and was unobligated on July 1, 2020. 12 * Sec. 2. Section 1 of this Act is repealed July 1, 2027. 13 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).