This bill amends existing laws related to the Alaska Commercial Fishing and Agriculture Bank (ACFAB) and establishes new provisions for loans made by the bank. It allows the Department of Commerce, Community, and Economic Development to purchase nonvoting, preferred shares from ACFAB to facilitate loans for individuals in the commercial fishing industry. The bank is required to repurchase these shares after 20 years, and if it fails to do so, the commissioner may appoint a receiver to manage the bank. Additionally, loans made under this provision must be secured by limited entry permits and have specific terms, including a fixed interest rate capped at 5.25% per year.

The bill also mandates that ACFAB provide detailed reports on loans originated or refinanced under the new provisions, including information on interest earnings and loan agreements. The Department of Commerce is required to review this information and, if the projected interest earnings are less than the value of the shares purchased, request a buyback of the shares. The funding for the share purchases will come from the former Alaska capstone avionics revolving loan fund, and the provisions of this act will be repealed on January 1, 2027. The act takes effect immediately.

Statutes affected:
SB0156C, AM CSSB 156(FIN), introduced 05/16/2025: 44.81.010, 44.81.215, 44.88.599, 44.33.650, 44.33.690