SB0156B -1- CSSB 156(L&C)
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CS FOR SENATE BILL NO. 156(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE SENATE LABOR AND COMMERCE COMMITTEE
Offered: 4/30/25
Referred: Finance
Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE JOINT LEG ISLATIVE TASK FORCE
EVALUATING ALASKA'S SEAFOOD INDUSTRY
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\I
CSSB 156(L&C) -2- SB0156B
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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) shall have a fixed interest rate; 11
(3) may not bear interest 12
(A) exceeding the prime rate, as defined in AS 44.88.599, plus 13
two percentage points; or 14
(B) at a rate of more than 5.25 percent a year. 15
(c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 16
and Agriculture Bank shall provide the division within the Department of Commerce, 17
Community, and Economic Development that is responsible for banking and securities a list 18
of each loan originated or refinanced under (b) of this section, with confidential borrower 19
information redacted. The list must include, for each loan, 20
(1) the loan number, principal balance, interest rate, and loan term; 21
(2) a copy of the loan agreement; 22
(3) an amortization schedule, including the comparison made under (4) of this 23
subsection; 24
(4) a comparison of 25
(A) the loan's baseline interest earnings, calculated as the projection of 26
the refinanced or originated loan's interest using the principal and the interest rate in 27
effect for the loan before it was refinanced, or the interest rate and term that the loan 28
would have had if the loan had not been made by the Alaska Commercial Fishing and 29
Agriculture Bank under (b) of this section, amortized over a 15-year term assuming 30
timely loan payments; and 31 34-LS0857\I
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(B) the loan's post-refinance or post-origination interest earnings, 1
calculated as the loan's projected interest earnings using the loan's principal, the loan's 2
actual interest rate as originated or refinanced under (b) of this section, and a 15-year 3
term assuming timely loan repayments; and 4
(5) any other information that the division may need to complete the review. 5
(d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 6
provides the Department of Commerce, Community, and Economic Development the list 7
required under (c) of this section, the department shall conduct a one-time review of the listed 8
information. If the department determines that the difference in projected interest earnings for 9
all loans originated or refinanced under (b) of this section for the Alaska Commercial Fishing 10
and Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 11
shares purchased by the department under (a) of this section, the department shall request that 12
the bank repay the difference to the department by buying back the requisite quantity of 13
shares. 14
(e) If the Department of Commerce, Community, and Economic Development 15
requests that the Alaska Commercial Fishing and Agriculture Bank buy back the shares under 16
(d) of this section, the bank shall buy back the shares within 30 days. 17
(f) Subject to appropriation, the department shall purchase shares issued by the 18
Alaska Commercial Fishing and Agriculture Bank under (a) of this section using an amount 19
equal to the amount that was in the former Alaska capstone avionics revolving loan fund 20
(former AS 44.33.650 - 44.33.690) and was unobligated on July 1, 2020. 21
* Sec. 2. Section 1 of this Act is repealed July 1, 2027. 22
* Sec. 3. This Act takes effect immediately under AS 01.10.070(c). 23