Bill > SB156

This bill establishes a mechanism for the Alaska Department of Commerce, Community, and Economic Development to support the Alaska Commercial Fishing and Agriculture Bank by purchasing nonvoting, preferred shares, enabling the bank to provide specialized loans to commercial fishing industry participants. Under the bill, the department will purchase shares that the bank must repurchase after 20 years, with specific conditions governing the loans that can be made using these funds. Specifically, loans must be secured by a limited entry fishing permit, have a fixed 15-year term, and maintain an interest rate no higher than the prime rate plus two percentage points or 5.25% annually. The bill requires the bank to provide a detailed list of loans to the department, including comparisons of interest earnings before and after refinancing. The department will conduct a one-time review to ensure the projected interest savings justify the share purchase, and if the savings are insufficient, the bank must buy back the shares. The share purchase will use unobligated funds from a former avionics revolving loan fund, and the provisions of this bill will automatically expire on January 1, 2027, providing a sunset provision for this financial mechanism designed to support Alaska's commercial fishing industry.

Agriculture and Natural Resources, Business and Industry

Rules (S)

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB156