SB 264: "An Act relating to the board, investigations, and examinations of the Alaska Commercial Fishing and Agriculture Bank; and providing for an effective date."
00 SENATE BILL NO. 264 01 "An Act relating to the board, investigations, and examinations of the Alaska 02 Commercial Fishing and Agriculture Bank; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 06.01.010(b) is amended to read: 05 (b) Except for deposit institutions, the commissioner shall assess every 06 financial institution and every applicant to establish a financial institution a fee for the 07 actual expenses necessarily incurred by the department in connection with any 08 examination or investigation, whether regular or special. The commissioner shall 09 assess every deposit institution and every applicant to establish a deposit institution a 10 fee for the actual expenses necessarily incurred by the department in connection with 11 any special examination or investigation. A fee assessed under this subsection must 12 include the proportionate part of the salaries and cost of employee benefits of the 13 examiners while conducting examinations or investigations and while preparing 14 reports of them, and transportation costs and per diem of each examiner while away
01 from the examiner's duty station. The cost to the financial institution in connection 02 with an examination may not exceed the actual cost to the department of the 03 examination. The assessment shall be made by the commissioner as soon as feasible 04 after the examination or investigation has been completed. The assessment must be 05 received by the department within 30 days after receipt of notice of the assessment by 06 the institution. In this subsection, "financial institution" includes the Alaska 07 Commercial Fishing and Agriculture Bank under AS 44.81.275. 08 * Sec. 2. AS 44.81.020(a) is amended to read: 09 (a) The bank shall be governed by a board of directors consisting of seven to 10 nine natural persons. The number is determined by the bank's bylaws. Two board 11 members shall be appointed by the governor of the state. The other board members 12 shall be elected by the members of the bank as provided in the bank's bylaws [, 13 EXCEPT THAT AT LEAST ONE OF THE ELECTED BOARD MEMBERS MUST 14 BE A RESIDENT FARMER]. 15 * Sec. 3. AS 44.81.260(a) is amended to read: 16 (a) The records of the bank that are identified with, or identifiable as being 17 derived from the records of, a specific borrower, member of the bank, or applicant for 18 a loan are confidential and may not be disclosed by the bank or by its directors, 19 officers, employees, or agents to a person other than the directors, officers, employees, 20 or agents of the bank, except 21 (1) when required by a federal or state statute; 22 (2) under AS 44.81.270 and 44.81.275; 23 (3) under a search warrant issued under federal law or the law of this 24 state; 25 (4) under a subpoena or court order issued in a civil action under 26 federal law or the law of this state; 27 (5) under a subpoena or court order issued in connection with a 28 proceeding before a federal grand jury or grand jury of this state; 29 (6) under a summons or subpoena issued by an agency or a department 30 of the United States or this state, or an officer, employee, or agent of the agency or 31 department;
01 (7) under a request by a financial institution, if the request is solely for 02 the stated written purpose of determining the credit worthiness of a member or 03 borrower as an applicant for credit, and if the information disclosed by the bank 04 pertains only to the payment history of the member or borrower; 05 (8) under a request by a lender that has extended or is considering 06 extending credit to the bank if the credit is or may be secured by the pledge of a loan 07 by the bank; 08 (9) when disclosed to the attorney general of the United States or to a 09 law enforcement agency of this state if the records may be relevant to a report or 10 investigation of a possible violation of federal law or a law of this state. 11 * Sec. 4. AS 44.81 is amended by adding a new section to read: 12 Sec. 44.81.275. Examinations. (a) At intervals that are not greater than 36 13 months, an examiner from the department shall perform an examination of the bank. 14 Each interval shall be determined by the commissioner. During the examination, the 15 examiner shall evaluate the bank's loan portfolio quality on a statistical basis and on 16 the appropriateness and effectiveness of the bank's policies, practices, and 17 management to carry out the bank's statutory purposes. 18 (b) The examiner shall prepare a summary report of the examiner's findings 19 and conclusions. The department shall distribute a copy of the report to the bank and 20 to the legislative auditor, but the records, information, and findings of the department 21 related to the examination are otherwise confidential under AS 06.01.025. 22 (c) In this section, 23 (1) "commissioner" means the commissioner of commerce, 24 community, and economic development; 25 (2) "department" means the Department of Commerce, Community, 26 and Economic Development. 27 * Sec. 5. AS 44.81.350(7) is repealed. 28 * Sec. 6. Sections 2 and 5 of this Act take effect immediately under AS 01.10.070(c). 29 * Sec. 7. Except as provided in sec. 6 of this Act, this Act takes effect July 1, 2011.