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SENATE BILL NO. 156
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE SENATE RULES COMMITTEE BY R EQUEST OF THE JOINT LEGISLATI VE TASK FORCE
EVALUATING ALASKA'S SEAFOOD INDUSTRY
Introduced: 4/2/25
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the Department of Commerce, Community, and Economic 1
Development; relating to the Alaska Commercial Fishing and Agriculture Bank; 2
relating to certain loans made by the Alaska Commercial Fishing and Agriculture Bank; 3
and providing for an effective date." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 6
to read: 7
ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 8
Subject to legislative appropriation, the Department of Commerce, Community, and 9
Economic Development shall purchase nonvoting, preferred shares issued by the Alaska 10
Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 11
enabling the bank to make loans to persons involved in the state's commercial fishing industry 12
under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 13
shares the department purchased under this section 20 years after the purchase. If the bank 14 34-LS0857\A
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fails to repurchase the shares 20 years after the purchase by the department, the commissioner 1
of commerce, community, and economic development may appoint a receiver to direct, 2
manage, and operate the bank until the shares have been repurchased. Upon voluntary or 3
involuntary liquidation of the bank, and upon repayment of all legal debts and obligations of 4
the bank, all nonvoting, preferred shares owned by the department have priority for 5
redemption over all other forms and amounts of ownership of the bank. 6
(b) A loan made by the Alaska Commercial Fishing and Agriculture Bank using funds 7
provided by the Department of Commerce, Community, and Economic Development's 8
purchase of shares under this section 9
(1) shall have a fixed term of 15 years; 10
(2) may not bear interest 11
(A) exceeding the prime rate, as defined in AS 44.88.599, plus 12
two percentage points; or 13
(B) at a rate of more than 5.25 percent a year. 14
(c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 15
and Agriculture Bank shall provide the division within the Department of Commerce, 16
Community, and Economic Development that is responsible for banking and securities, a list 17
of each loan originated or refinanced under (b) of this section, with confidential borrower 18
information redacted. The list must include, for each loan, a comparison of 19
(1) the loan's baseline interest earnings, which is calculated as the loan's 20
refinanced or originated principal multiplied by the interest rate and term for the loan before it 21
was refinanced, or the interest rate and term that the loan would have had if the loan had not 22
been made by the Alaska Commercial Fishing and Agriculture Bank under (b) of this section, 23
projected over the term of the loan; and 24
(2) the loan's actual interest earnings, which is calculated as the loan's 25
refinanced or originated principal times the loan's actual interest rate as originated or 26
refinanced under (b) of this section, projected over the term of the loan. 27
(d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 28
provides the Department of Commerce, Community, and Economic Development the list 29
required under (c) of this section, the department shall audit and review the listed information. 30
If the department determines that the difference in projected i
nterest earnings for all loans 31 34-LS0857\A
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originated or refinanced under (b) of this section for the Alaska Commercial Fishing and 1
Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 2
shares purchased by the department under (a) of this section, the department shall request that 3
the bank repay the difference to the department. 4
(e) If the Department of Commerce, Community, and Economic Development 5
requests that the Alaska Commercial Fishing and Agriculture Bank repay a sum of money 6
under (d) of this section, the bank shall make the payment within 30 days. 7
(f) Subject to appropriation, the department shall purchase shares issued by the 8
Alaska Commercial Fishing and Agriculture Bank under (a) of this section using an amount 9
equal to the amount that was in the former Alaska capstone avionics revolving loan fund 10
(former AS 44.33.650 - 44.33.690) and was unobligated on July 1, 2020. 11
* Sec. 2. Section 1 of this Act is repealed July 1, 2027. 12
* Sec. 3. This Act takes effect immediately under AS 01.10.070(c). 13