HB 76: "An Act relating to the mariculture revolving loan fund and loans from the fund; and providing for an effective date."

00 HOUSE BILL NO. 76 01 "An Act relating to the mariculture revolving loan fund and loans from the fund; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.905 is amended to read: 05 Sec. 16.10.905. Powers and duties of the department. The department may 06 (1) make loans to eligible applicants under AS 16.10.900 - 16.10.945 07 for the planning, construction, and operation of a 08 (A) mariculture business; or 09 (B) hatchery that artificially propagates aquatic plants and 10 shellfish for sale to aquatic farms; 11 (2) receive, take, hold, and administer any appropriation, transfer, gift, 12 grant, bequest, devise, or donation of money for the fund; 13 (3) establish amortization plans for repayment of loans, including 14 extensions of the terms of loans;

01 (4) allow an assumption of a loan if 02 (A) the applicant meets the requirements established under this 03 section; and 04 (B) approval of the assumption would be consistent with the 05 purposes of AS 16.10.900 - 16.10.945; 06 (5) establish the rate of interest for loans consistent with law; 07 (6) charge and collect fees for services provided under AS 16.10.900 - 08 16.10.945; 09 (7) adopt regulations under AS 44.62 necessary to carry out the 10 provisions of AS 16.10.900 - 16.10.945, including regulations to establish reasonable 11 fees for services provided; and 12 (8) designate agents and delegate powers as necessary to the agents. 13 * Sec. 2. AS 16.10.910(a) is amended to read: 14 (a) For an applicant to be eligible for a loan under AS 16.10.900 - 16.10.945, 15 the applicant shall be 16 (1) [BE] a resident of the state who has 17 (A) [, AS DETERMINED UNDER (c) OF THIS SECTION; 18 (2) HAVE] a permitted mariculture farm location in this state; and 19 (B) [(3) HAVE] experience or training in the mariculture 20 industry; or 21 (2) a resident of the state or entity organized under the laws of this 22 state that holds a permit under AS 16.40.100 to operate a hatchery for the 23 purpose of supplying aquatic plants or shellfish to an aquatic farm. 24 * Sec. 3. AS 16.10.910(c) is amended to read: 25 (c) To meet the residency requirements of (a) of this section, an individual 26 [THE] applicant 27 (1) shall physically reside in this state and maintain a domicile in this 28 state during the 24 consecutive months preceding the date of application for the 29 program; and 30 (2) may not have 31 (A) declared or established residency in another state; or

01 (B) received residency or a benefit based on residency from 02 another state. 03 * Sec. 4. AS 16.10.915(a) is amended to read: 04 (a) Except as provided in (b) and (c) of this section, a loan under 05 AS 16.10.900 - 16.10.945 06 (1) may not exceed 07 (A) $100,000 a year for an applicant under 08 AS 16.10.910(a)(1); or 09 (B) $1,000,000 a year for an applicant under 10 AS 16.10.910(a)(2); 11 (2) may not exceed a term of 20 years, except for extensions under 12 AS 16.10.905; 13 (3) may not bear interest at a rate greater than the prime rate, as 14 defined in AS 44.88.599, plus one percentage point, but which may not be less than 15 five percent a year or more than nine percent a year; 16 (4) must be secured by a first priority lien on collateral acceptable to 17 the department; and 18 (5) may not be made to a person who has a past due child support 19 obligation established by court order or by the child support services agency under 20 AS 25.27.160 - 25.27.220 at the time of application. 21 * Sec. 5. AS 16.10.915(b) is amended to read: 22 (b) Subsequent loans may be made to a [THE] borrower under 23 (1) AS 16.10.910(a)(1), [AS 16.10.910] if the total of the balances 24 outstanding on the loans received by the borrower does not exceed $300,000; or 25 (2) AS 16.10.910(a)(2), if the total of the balances outstanding on 26 the loans received by the borrower does not exceed $1,000,000. 27 * Sec. 6. AS 16.10.915(c) is amended to read: 28 (c) A loan under AS 16.10.910 may be made for the purchase of boats or 29 vessels determined to be integral to the operation of the farm or hatchery. 30 * Sec. 7. AS 16.10.915 is amended by adding a new subsection to read: 31 (e) The total of balances outstanding on loans made to borrowers under

01 AS 16.10.910(a)(2) may not exceed 40 percent of the principal of the mariculture 02 revolving loan fund. 03 * Sec. 8. AS 16.10.945 is amended by adding a new paragraph to read: 04 (4) "hatchery" has the meaning given in AS 16.40.199. 05 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).