Legislature(2023 - 2024)
2024-05-14 Senate Journal
Full Journal pdf2024-05-14 Senate Journal Page 2696 HB 273 CS FOR HOUSE BILL NO. 273(L&C) "An Act relating to the power of the Alaska Housing Finance Corporation to make or purchase mortgage loans; and providing for an effective date" was read the third time. Senator Kiehl moved the bill be returned to second reading for all amendments offered today. Without objection, the bill was returned to second reading. Amendment No. 1 was not offered. Senator Kiehl offered Amendment No. 2 : Page 1, line 1, following "Act": Insert "relating to commercial fishing loans; relating to subsidiary corporations of the Alaska Housing Finance Corporation;" Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 16.10.310(a) is amended to read: (a) The department may (1) make loans (A) to individual commercial fishermen who have been state residents for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370, who have had an annual crewmember or commercial fishing license under AS 16.05.480 or a permit under AS 16.43 for the year immediately preceding the date of application and any other two of the past five years, and who actively participated in the fishery during those periods (i) for the purchase of entry permits; (ii) to upgrade existing vessels and gear for the 2024-05-14 Senate Journal Page 2697 purpose of improving the quality of Alaska seafood products; or (iii) for propulsion engine or generator engine replacements on existing vessels for the purpose of improving fuel efficiency; (B) to an individual for the repair, restoration, or upgrading of existing vessels and gear, for the purchase of entry permits and gear, and for the construction and purchase of vessels, if the individual has been a state resident for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for financing from a state financial institution as defined in AS 06.01.050, a federally chartered financial institution, or the Commercial Fishing and Agricultural Bank, and (i) because of lack of training or lack of employment opportunities in the area of residence, does not have occupational opportunities available other than commercial fishing; or (ii) is economically dependent on commercial fishing for a livelihood and for whom commercial fishing has been a traditional way of life in Alaska; (C) for the purchase of quota shares for fisheries in or off the state by individual commercial fishermen who (i) have been state residents for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370; (ii) for any two of the past five years, possessed an annual crewmember or commercial fishing license under AS 16.05.480 or a permit under AS 16.43 and actively participated in a fishery for which the license or permit was issued; (iii) qualify as transferees for quota shares under applicable law; and (iv) are not eligible for financing from other recognized commercial lending institutions to purchase quota shares; (D) to an individual commercial fisherman to satisfy past due federal tax obligations, if the fisherman has been a state resident for a continuous period of two years 2024-05-14 Senate Journal Page 2698 immediately preceding the date of application for the loan, has filed past and current federal tax returns with the federal government, has executed an agreement with the federal government for repayment of past due federal tax obligations, and either (i) because of lack of training or lack of employment opportunities in the area of residence, does not have occupational opportunities available other than commercial fishing; or (ii) is economically dependent on commercial fishing for a livelihood and for whom commercial fishing has been a traditional way of life in Alaska; (E) for the purchase of fishing quota shares by a community quota entity eligible under federal statute or regulation to purchase the fishing quota shares if the community quota entity is not eligible or qualified for financing from other recognized commercial lending institutions to purchase the fishing quota shares; (F) to an individual for the upgrade of existing tender vessels and gear to improve the quality of Alaska seafood products, if the individual has been a state resident for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370; (2) designate agents and delegate its powers to them as necessary; (3) adopt regulations necessary to carry out the provisions of AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for services provided; (4) establish amortization plans for repayment of loans, which may include extensions for poor fishing seasons or for adverse market conditions for Alaska products; (5) enter into agreements with private lending institutions, other state agencies, or agencies of the federal government to carry out the purposes of AS 16.10.300 - 16.10.370; (6) enter into agreements with other agencies or organizations to create an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of the state; (7) allow an assumption of a loan if (A) the applicant has been a state resident for a 2024-05-14 Senate Journal Page 2699 continuous period of two years immediately preceding the date of the request for an assumption; and (B) approval of the assumption would be consistent with the purposes of AS 16.10.300; an applicant for a loan assumption may not be disqualified because the applicant does not meet the loan eligibility requirements of (1) of this subsection; (8) prequalify loan applicants for a limited entry permit loan or a quota shares loan and charge a fee not to exceed $200 for prequalification; (9) charge and collect the fees established under this subsection; (10) refinance a debt obligation incurred by a borrower or borrowers under this section if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; (11) refinance debt obligations, not to exceed $400,000 [$200,000], incurred by a borrower or borrowers for the purchase of a commercial fishing vessel or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; the department may collect a refinancing loan origination charge as provided by regulation. * Sec. 2. AS 16.10.310(a), as amended by sec. 1 of this Act, is amended to read: (a) The department may (1) make loans (A) to individual commercial fishermen who have been state residents for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370, who have had an annual crewmember or commercial fishing license under AS 16.05.480 or a permit under AS 16.43 for the year immediately preceding the date of application and any other two of the past five years, and who actively participated in the fishery during those periods (i) for the purchase of entry permits; (ii) to upgrade existing vessels and gear for the purpose of improving the quality of Alaska seafood products; or (iii) for propulsion engine or generator engine replacements on existing vessels for the purpose of 2024-05-14 Senate Journal Page 2700 improving fuel efficiency; (B) to an individual for the repair, restoration, or upgrading of existing vessels and gear, for the purchase of entry permits and gear, and for the construction and purchase of vessels, if the individual has been a state resident for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for financing from a state financial institution as defined in AS 06.01.050, a federally chartered financial institution, or the Commercial Fishing and Agricultural Bank, and (i) because of lack of training or lack of employment opportunities in the area of residence, does not have occupational opportunities available other than commercial fishing; or (ii) is economically dependent on commercial fishing for a livelihood and for whom commercial fishing has been a traditional way of life in Alaska; (C) for the purchase of quota shares for fisheries in or off the state by individual commercial fishermen who (i) have been state residents for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370; (ii) for any two of the past five years, possessed an annual crewmember or commercial fishing license under AS 16.05.480 or a permit under AS 16.43 and actively participated in a fishery for which the license or permit was issued; (iii) qualify as transferees for quota shares under applicable law; and (iv) are not eligible for financing from other recognized commercial lending institutions to purchase quota shares; (D) to an individual commercial fisherman to satisfy past due federal tax obligations, if the fisherman has been a state resident for a continuous period of two years immediately preceding the date of application for the loan, has filed past and current federal tax returns with the federal government, has executed an agreement with the federal government for repayment of past due federal tax obligations, 2024-05-14 Senate Journal Page 2701 and either (i) because of lack of training or lack of employment opportunities in the area of residence, does not have occupational opportunities available other than commercial fishing; or (ii) is economically dependent on commercial fishing for a livelihood and for whom commercial fishing has been a traditional way of life in Alaska; (E) for the purchase of fishing quota shares by a community quota entity eligible under federal statute or regulation to purchase the fishing quota shares if the community quota entity is not eligible or qualified for financing from other recognized commercial lending institutions to purchase the fishing quota shares; (F) to an individual for the upgrade of existing tender vessels and gear to improve the quality of Alaska seafood products, if the individual has been a state resident for a continuous period of two years immediately preceding the date of application for a loan under AS 16.10.300 - 16.10.370; (2) designate agents and delegate its powers to them as necessary; (3) adopt regulations necessary to carry out the provisions of AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for services provided; (4) establish amortization plans for repayment of loans, which may include extensions for poor fishing seasons or for adverse market conditions for Alaska products; (5) enter into agreements with private lending institutions, other state agencies, or agencies of the federal government to carry out the purposes of AS 16.10.300 - 16.10.370; (6) enter into agreements with other agencies or organizations to create an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of the state; (7) allow an assumption of a loan if (A) the applicant has been a state resident for a continuous period of two years immediately preceding the date of the request for an assumption; and (B) approval of the assumption would be consistent with the purposes of AS 16.10.300; an applicant for a loan 2024-05-14 Senate Journal Page 2702 assumption may not be disqualified because the applicant does not meet the loan eligibility requirements of (1) of this subsection; (8) prequalify loan applicants for a limited entry permit loan or a quota shares loan and charge a fee not to exceed $200 for prequalification; (9) charge and collect the fees established under this subsection; (10) refinance a debt obligation incurred by a borrower or borrowers under this section if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; (11) refinance debt obligations, not to exceed $200,000 [$400,000], incurred by a borrower or borrowers for the purchase of a commercial fishing vessel or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; the department may collect a refinancing loan origination charge as provided by regulation. * Sec. 3. AS 16.10.320(a) is amended to read: (a) Except as permitted in (h) and (l) of this section, a loan under AS 16.10.300 - 16.10.370 (1) may not exceed a term of 15 years, except for extensions under AS 16.10.310(a)(4); (2) may not bear interest (A) exceeding the prime rate, as defined by AS 44.88.599, plus two percentage points; or (B) at a rate of more than 5.25 [10 1/2] percent a year; [OR (C) AT A RATE THAT IS LESS THAN THE COST OF FUNDS TO THE STATE;] (3) must be secured by a first priority lien and appropriate security agreement; (4) may not exceed 80 percent of the appraised value of the collateral used to secure the loan; and (5) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 - 25.27.220 at the time of application. * Sec. 4. AS 16.10.320(a), as amended by sec. 3 of this Act, is amended to read: (a) Except as permitted in (h) and (l) of this section, a loan 2024-05-14 Senate Journal Page 2703 under AS 16.10.300 - 16.10.370 (1) may not exceed a term of 15 years, except for extensions under AS 16.10.310(a)(4); (2) may not bear interest (A) exceeding the prime rate, as defined by AS 44.88.599, plus two percentage points; [OR] (B) at a rate of more than 10 1/2 [5.25] percent a year; or (C) at a rate that is less than the cost of funds to the state; (3) must be secured by a first priority lien and appropriate security agreement; (4) may not exceed 80 percent of the appraised value of the collateral used to secure the loan; and (5) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 - 25.27.220 at the time of application. * Sec. 5. AS 16.10.320(d) is amended to read: (d) The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $400,000 [$200,000]. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax obligations may not exceed $35,000. The total of balances outstanding on loans made under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible under federal statute or regulation to establish or participate in the establishment of a community quota entity. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, including debt refinancing under AS 16.10.310(a), made to a borrower under AS 16.10.300 - 16.10.370 may not exceed $400,000. * Sec. 6. AS 16.10.320(d), as amended by sec. 5 of this Act, is amended to read: 2024-05-14 Senate Journal Page 2704 (d) The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $200,000 [$400,000]. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax obligations may not exceed $35,000. The total of balances outstanding on loans made under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible under federal statute or regulation to establish or participate in the establishment of a community quota entity. The total of balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, including debt refinancing under AS 16.10.310(a), made to a borrower under AS 16.10.300 - 16.10.370 may not exceed $400,000. * Sec. 7. AS 18.56.010 is amended by adding a new subsection to read: (h) The legislature finds that permitting the Alaska Housing Finance Corporation to create a subsidiary to assist in the financing of sustainable energy development serves a public purpose benefitting the people of the state. The Alaska Housing Finance Corporation is empowered to act on behalf of the state and its people in serving this public purpose for the benefit of the general public. * Sec. 8. AS 18.56.086(a) is amended to read: (a) The corporation may create subsidiary corporations for the purpose of financing or facilitating the financing of school construction, facilities for the University of Alaska, facilities for ports and harbors, the acquisition, development, management, or operation of [AFFORDABLE] housing, prepayment of all or a portion of a governmental employer's share of unfunded accrued actuarial liability of retirement systems, sustainable energy development, or other capital projects. A subsidiary corporation created under this section may be incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer assets of the corporation to a subsidiary created under this section. A 2024-05-14 Senate Journal Page 2705 subsidiary created under this section may borrow money and issue bonds as evidence of that borrowing, and has all the powers of the corporation that the corporation grants to it. However, a subsidiary created for the purpose of financing or facilitating the financing of prepayment of a governmental employer's share of unfunded accrued actuarial liability of retirement systems may borrow money and issue bonds only after submitting a proposal to the Legislative Budget and Audit Committee under (b) of this section, if the state bond rating is the equivalent of AA- or better, and subject to AS 37.15.903. Unless otherwise provided by the corporation, the debts, liabilities, and obligations of a subsidiary corporation created under this section are not the debts, liabilities, or obligations of the corporation. * Sec. 9. AS 18.56.086 is amended by adding a new subsection to read: (c) In managing a subsidiary created for the purpose of financing or facilitating the financing of sustainable energy development, the corporation shall consider the state energy policy described in AS 44.99.115 and shall prioritize sustainable energy development that supports energy efficiency and renewable energy for residential buildings, commercial buildings, and community facilities. * Sec. 10. AS 18.56.090(e) is amended to read: (e) In furtherance of its corporate purpose, the corporation may, in cooperation with the Alaska Energy Authority, provide technical assistance to (1) municipalities that is related to residential and commercial building energy codes and energy efficiency standards; and (2) support or establish public, quasi-public, or nonprofit entities that provide financial assistance for sustainable energy development projects in the state or delivering energy to the state, including community and low- income lenders and capital providers." Page 1, line 4: Delete "Section 1" Insert "Sec. 11" Renumber the following bill sections accordingly. 2024-05-14 Senate Journal Page 2706 Page 3, line 4: Delete all material and insert: "* Sec. 12 AS 18.56.900 is amended by adding a new paragraph to read: (3) "sustainable energy development" means (A) renewable energy generation from sources that are continually replenished by nature, such as the sun, wind, water, or biological processes; (B) building energy efficiency, including switching to renewable fuels and electrification; (C) electrical infrastructure incorporating (i) energy storage to support clean energy distribution, including remote and non-remote microgrids and smart-grid applications; or (ii) sustainable technologies, including distributed generation, advanced battery, and combined heat and power; (D) clean transportation, including (i) electric vehicles powered by batteries, hydrogen vehicles, plug-in hybrid electric vehicles, and other zero-emissions vehicles for consumers, businesses, government, and public transit; and (ii) electric vehicle charging and fueling infrastructure; or (E) any greenhouse gas emissions reduction, energy efficiency, or zero-emission technology approved by the corporation. * Sec. 13. Sections 2, 4, and 6 of this Act take effect July 1, 2027. * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect immediately under AS 01.10.070(c)." Senator Kiehl moved for the adoption of Amendment No. 2. Objection was heard, then withdrawn. There being no further objections, Amendment No. 2 was adopted. CS FOR HOUSE BILL NO. 273(L&C) am S "An Act relating to commercial fishing loans; relating to subsidiary corporations of the Alaska Housing Finance Corporation; relating to the power of the Alaska Housing Finance Corporation to make or purchase mortgage loans; and providing for an effective date" was automatically in third reading. 2024-05-14 Senate Journal Page 2707 The question being: "Shall CS FOR HOUSE BILL NO. 273(L&C) am S "An Act relating to commercial fishing loans; relating to subsidiary corporations of the Alaska Housing Finance Corporation; relating to the power of the Alaska Housing Finance Corporation to make or purchase mortgage loans; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSHB 273(L&C) am S Third Reading - Final Passage Effective Date(s) YEAS: 18 NAYS: 2 EXCUSED: 0 ABSENT: 0 Yeas: Bishop, Bjorkman, Claman, Dunbar, Giessel, Gray-Jackson, Hoffman, Hughes, Kaufman, Kawasaki, Kiehl, Merrick, Olson, Shower, Stevens, Tobin, Wielechowski, Wilson Nays: Myers, Stedman and so, CS FOR HOUSE BILL NO. 273(L&C) am S passed the Senate. Senator Giessel moved and asked unanimous consent the vote on the passage of the bill be considered the vote on the effective date clause(s). Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.