This bill amends existing laws related to the Alaska Commercial Fishing and Agriculture Bank, specifically concerning the bank's ability to make loans to individuals in the commercial fishing industry. It establishes that the Department of Commerce, Community, and Economic Development will purchase nonvoting, preferred shares from the bank to facilitate these loans, which must be secured by limited entry permits. The loans will have a fixed term of 15 years and a capped interest rate, ensuring that the interest does not exceed the prime rate plus two percentage points or 5.25% annually. Additionally, the bank is required to provide detailed reports on each loan originated or refinanced under this new provision, including comparisons of projected interest earnings.

Furthermore, the bill includes a provision for a one-time review by the Department of Commerce, Community, and Economic Development to assess the financial impact of the loans. If the projected interest earnings from the loans are less than the par value of the shares purchased by the department, the bank must buy back the shares. The bill also specifies that the department will use funds from a former revolving loan fund for the share purchases and sets a repeal date for this section of the law to January 1, 2027. The act takes effect immediately upon passage.

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