CSSB 156(FIN): "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; relating to certain commercial fishing loans; providing for an effective date by amending the effective date of sec. 4, ch. 25, SLA 2024; and providing for an effective date."
00 CS FOR SENATE BILL NO. 156(FIN) 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 relating to certain commercial fishing loans; providing for an effective date by amending 05 the effective date of sec. 4, ch. 25, SLA 2024; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 10 Subject to legislative appropriation, the Department of Commerce, Community, and 11 Economic Development shall purchase nonvoting, preferred shares issued by the Alaska 12 Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 13 enabling the bank to make loans to persons involved in the state's commercial fishing industry
01 under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 02 shares the department purchased under this section 20 years after the purchase. If the bank 03 fails to repurchase the shares 20 years after the purchase by the department, the commissioner 04 of commerce, community, and economic development may appoint a receiver to direct, 05 manage, and operate the bank until the shares have been repurchased. Upon voluntary or 06 involuntary liquidation of the bank, and upon repayment of all legal debts and obligations of 07 the bank, all nonvoting, preferred shares owned by the department have priority for 08 redemption over all other forms and amounts of ownership of the bank. 09 (b) The Alaska Commercial Fishing and Agriculture Bank may not originate or 10 refinance a loan under this section unless the loan is secured, or secured in part, by a limited 11 entry permit issued under AS 16.43 that has been pledged by the holder as collateral. A loan 12 made by the bank using funds provided by the Department of Commerce, Community, and 13 Economic Development's purchase of shares under this section 14 (1) shall have a fixed term of 15 years; 15 (2) shall have a fixed interest rate; 16 (3) may not bear interest 17 (A) exceeding the prime rate, as defined in AS 44.88.599, plus 18 two percentage points; or 19 (B) at a rate of more than 5.25 percent a year. 20 (c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 21 and Agriculture Bank shall provide the division within the Department of Commerce, 22 Community, and Economic Development that is responsible for banking and securities a list 23 of each loan originated or refinanced under (b) of this section, with confidential borrower 24 information redacted. The list must include, for each loan, 25 (1) the loan number, principal balance, interest rate, and loan term; 26 (2) a copy of the loan agreement; 27 (3) an amortization schedule, including the comparison made under (4) of this 28 subsection; 29 (4) a comparison of 30 (A) the loan's baseline interest earnings, calculated as the projection of 31 the refinanced or originated loan's interest using the principal and the interest rate in
01 effect for the loan before it was refinanced, or the interest rate and term that the loan 02 would have had if the loan had not been made by the Alaska Commercial Fishing and 03 Agriculture Bank under (b) of this section, amortized over a 15-year term assuming 04 timely loan payments; and 05 (B) the loan's post-refinance or post-origination interest earnings, 06 calculated as the loan's projected interest earnings using the loan's principal, the loan's 07 actual interest rate as originated or refinanced under (b) of this section, and a 15-year 08 term assuming timely loan repayments; and 09 (5) any other information that the division may need to complete the review. 10 (d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 11 provides the Department of Commerce, Community, and Economic Development the list 12 required under (c) of this section, the department shall conduct a one-time review of the listed 13 information. If the department determines that the difference in projected interest earnings for 14 all loans originated or refinanced under (b) of this section for the Alaska Commercial Fishing 15 and Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 16 shares purchased by the department under (a) of this section, the department shall request that 17 the bank repay the difference to the department by buying back the requisite quantity of 18 shares. 19 (e) If the Department of Commerce, Community, and Economic Development 20 requests that the Alaska Commercial Fishing and Agriculture Bank buy back the shares under 21 (d) of this section, the bank shall buy back the shares within 30 days. 22 (f) Subject to appropriation, the department shall purchase shares issued by the 23 Alaska Commercial Fishing and Agriculture Bank under (a) of this section using an amount 24 equal to the amount that was in the former Alaska capstone avionics revolving loan fund 25 (former AS 44.33.650 - 44.33.690) and was unobligated on July 1, 2020. 26 * Sec. 2. Section 1 of this Act is repealed January 1, 2027. 27 * Sec. 3. Section 13, ch. 25, SLA 2024, is amended to read: 28 Sec. 13. (a) Section 4, ch. 25, SLA 2024, takes effect July 1, 2026. 29 (b) Sections 2 [, 4,] and 6, ch. 25, SLA 2024, [OF THIS ACT] take effect 30 July 1, 2027. 31 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).